How Leaders Create Engagement and Competitive Advantage

purpose

How Leaders Create Engagement

A decent product at a fair price with good customer service may once have been enough. No longer. The bar has moved. Employees and customers want organizations to do some social good along the way.

My friend and bestselling author John Izzo is out with a new book, co-authored by Jeff Vanderwielen: The Purpose Revolution: How Leaders Create Engagement and Competitive Advantage in an Age of Social Good. The book is full of examples and ideas to help you move your organization to one that is infused with purpose.

I recently asked John to share more about his research and work in this area.

 

“Winning in the purpose revolution requires authenticity.” -John Izzo

 

4 Forces Driving Change

You say that there is a revolution happening right now and ignoring it will send your company to irrelevance. What is it and what forces are driving it?

The revolution is a desire among employees, customers and investors to leverage social good with their choices. This is a revolution of AND not OR. Employees want everything they have always wanted, but they also want a job that gives them a sense of purpose in a company they feel is doing good in the world. Customers want products that excite them at a good price, but they also want to leverage good with those choices—and certainly buy things that cause no harm. Investors was a return on money, but the fastest growing funds are those that also promise social impact.

In an age of commoditization, the marketplace is filled with many similar products, and purpose is a way for companies to create brand differentiation based on values, not just product.

What’s driving the revolution are four primary trends. The Millennials are now a global force with a strong set of values around creating social good and having meaning in their work. The boomers are moving into the “legacy” stage of life where the impact they leave starts to compete with ego. The rising middle class in the developing world is another major driver, as people rise out of poverty, they are able to think about the social good in their choices. Finally, business is both blamed for some of the world’s biggest challenges but also increasingly seen as the key to addressing those same issues through corporate social responsibility.

 

“Purpose is a way for companies to create brand differentiation based on values, not just product.” -John Izzo

 

Connect Purpose to Contribution

How do leaders help employees connect purpose to work contribution?

The first step is to have a clearly articulated compelling purpose that is authentic. Starbucks’ purpose is to “inspire the human spirit one cup of coffee at a time” while 3M’s is to “advance every life and improve every business while using science to solve the world’s greatest challenges” (like sustainability).

The second step is to drive job purpose more than job function. Focus on the real impact jobs and teams make. Have every person identify the purpose of their job and the same for every team. Consistently tell stories of how your company makes a real difference. Bring in customers to tell their stories, and create space for employees to do the same. One large bank we worked with started having a standing agenda item in every branch: “How did we make a difference for a client since last time we met?” In the branches that did it, engagement went up 23% and sales went up 18%!

 

Move Purpose to Center Stage

Clarity: How Smart Leaders Achieve Outstanding Performance

clarity

Achieve Outstanding Performance

Lean management expert Karen Martin tackles the problem so many organizations and leaders face: a lack of clarity. In her new book, Clarity First: How Smart Leaders and Organizations Achieve Outstanding Performance, she gives specific recommendations on how to improve clarity and thus your overall performance.

The book helps leaders identify the organization’s purpose, set priorities, and build problem solving capabilities while developing personal clarity to be a more effective leader.

I recently spoke with Karen about the importance of clarity and the role it plays in leadership and organizational success.

 

“Clarity, in contrast, feeds an organization in the same way that fertilizer feeds soil.” -Karen Martin

 

The Importance of Clarity

What are some of the effects of a lack of clarity?

Lack of clarity touches organizations in small, daily ways and in large ways that introduce risks to customer satisfaction, the employee experience, the balance sheet, and compliance. An example of a “small” issue might be a customer problem that remains unsolved because no one knows who owns it. Larger problems brew when various parts of an organization work at cross purposes from each other. In the end, a lack of clarity often results in runaway expenses, market share loss, high turnover, and sluggish innovation, to name a few.

Those outcomes are often caused or at least exacerbated by the incremental accumulation of ambiguity about work that happens closer to the customer. For instance, a lack of clarity about customer requirements result in products that don’t meet true customer needs. It results in poorly designed and poorly managed processes that require heroics to execute. It results in excessive rework or productivity-sapping time spent clarifying what should have been clear to begin with. In a low-clarity environment, margin and morale erode because people do work that doesn’t fit together and doesn’t move the organization toward a common performance goal.

Clarity, in contrast, feeds an organization in the same way that fertilizer feeds soil. It nourishes everything visible, as well all the quiet and invisible activities that take place out of sight to make an organization outstanding, such as decision making. When you have it, there is greater alignment, greater collaboration, higher levels of innovation, and so on. When you don’t have it, everything becomes stressed to the point that even basic decisions require more effort that they should need.

Imagine you are leading an organization filled with well-meaning and talented people in a growing industry, but you haven’t developed a culture where everyone values holding clarity front-and-center in everything they do—foundational clarity like: why you are in business, what the organization’s top priorities are, how the organization is performing both operationally and financially, and the level of performance it wants to achieve, and other important questions that drive organizational alignment and outstanding performance. Without clarity on these issues, in the near-immediate term, the relationship between the organization and its people begins to break down. Team members begin to feel unsure that their work produces customer value or contributes to organizational success. Such uncertainty leads to frustration, low morale, and eventual disengagement, creating low productivity, talent turnover, poor customer service, loss of market share, eroded margins, and so on.

To be clear, I emphasize words such as everyone and everything because clarity requires it. Leaders are in a privileged role. You may feel that you DO have clarity. But if your direct reports don’t, or if their beliefs about the priorities of the organization are different from those of the peers they work with on a daily basis, then the organization as a whole lacks clarity even if there are pockets of clarity here and there.

 

“Purpose is your why. Why does your organization exist? Why do you deliver the particular goods or services that you do?” -Karen Martin

 

Six P’s of Organizational Clarity 

Unleash the Power of Brand-Culture Fusion for Maximum Growth

fusion

Having read more books than I can name about leadership, branding, and culture, I am surprised at how rare it is to see one that combines the power of all of them.

But that’s just what my friend Denise Lee Yohn did in her exceptional new book, FUSION: How Integrating Brand and Culture Powers the World’s Great Companies.

As one of the world’s leading authorities on brand-building, Denise tackles one of the most important and overlooked aspects of a strong brand: company culture.

It’s the FUSION of brand and culture that creates organizational power.

After reading the book, which I also proudly endorsed, I followed up with Denise to talk about her research into brand and culture.

 

The Importance of Culture

Denise, you are well known for your work on branding. This book takes a different turn as it is as much, if not more, about organizational culture. Tell us about why you decided to address culture.

FUSION actually came out of my work with clients on strengthening and/or repositioning their brands.  I found that our efforts were sometimes held back from making as much of an impact as they could have because of cultural issues inside the organization. If the culture of the organization wasn’t aligned with the brand, some leaders wouldn’t want to include culture as part of brand-building, or they didn’t appreciate the need to align and integrate their brand and culture — to create brand-culture fusion — and that prevented them from realizing the full potential of their organization and their brand.

 

“Great brands are built from the inside out.” -Denise Lee Yohn

 

You say that a key leadership responsibility is the integration of culture and brand. Has this always been true? What are the best ways to accomplish this?

Brand-culture fusion has always required strong leadership from the top of the organization, but it has become more important in recent years, given the corporate culture crisis that has arisen. Leaders can no longer assume their organizations will have a healthy culture if they’re nice and decent people — it takes deliberate effort to cultivate a unique, valuable, sustainable culture.

 

“You must accept the challenge to lead your organization to greatness.” -Denise Lee Yohn

 

Drop Your Mission Statement

Leadership from the Inside Out

Grow the Whole Person to Grow the Whole Leader

I first read Leadership From the Inside Out years ago. It is one of the books that helps build a foundation of knowledge for leaders. That’s why I was excited to see that it is now out in a new version with updated chapters, new case studies and stories, and even more practical exercises to help everyone achieve their leadership potential.

Author Kevin Cashman is the Global Leader of CEO & Executive Development at Korn Ferry. He has advised thousands of senior leaders across almost every industry.

We recently talked about his updated book and his leadership views.

 

“While spreadsheets are the language of management information, stories are the language of leadership inspiration.” -Kevin Cashman

 

You’re just out with a new version of Leadership From the Inside Out, a classic must-read in leadership circles. What prompted you to update it, and what’s new?

Well, thank you for endorsing it as a “must-read.”  It has been humbling and fulfilling to witness the success of each edition. Twenty years ago, when the first edition came out, it was one of the first books to deeply connect personal growth to leadership effectiveness using timeless, enduring principles of human development. We had been seeing how this “grow the whole person to grow the whole leader” approach resonated in our practice with CEOs, CEO successors and executives, but at that time, there was little or no research on these principles—authenticity, self-awareness, courage, character, purpose—and their impact on results. We did the second edition in 2008 to share new stories and case studies, but also to share some of the mounting research from independent sources that was catching up with what we were seeing in the trenches. For this third edition, we felt compelled to share more abundant recent research, including a study that directly connects top leader self-awareness with organizational financial performance, a study on the results of purpose-driven leadership’s significant impact on financial growth, and more. The book is still framed in areas of mastery, but we’ve added Story Mastery and Coaching Mastery, both taking leaders to deeper levels of awareness to enhance their influence and multiply it. We updated stories and case studies and added and revised exercises and practices to sharpen relevance. This third edition is an even deeper, integrative growth experience.

 

“The Character-driven leader tends to emphasize service over self.” -Kevin Cashman

 

Why Character is Central to Leadership

I’m a passionate believer in character, and your book was early to focus on this aspect of leadership. Would you comment on the centrality of character?

Leading in Character is foundational, or to use your word, “central” to Personal Mastery, which is the ongoing growth of authenticity, courage, and influence that has enduring value. It is at the heart of transformative impact and servant leadership. Both Character and Coping are present in most leadership situations. However, we need to ask ourselves, “Which one is my master, and which one is my servant?”  When we are self-aware and make Character the master of our leadership and Coping the servant, we move toward better relationships with team members, customers, employees, all our stakeholders and the greater marketplace. And, we create more sustainable value. As leaders, it is essential to learn how to build our awareness of when we are being guided by Character and when we are being pushed by Coping. One CEO we worked with in our Chief Executive Institute told us that learning how to pause to make sure that values are on the table and that she and her team were leading with character has really stayed with her and been significant. She developed a systematic process of asking her team for their expert opinions, probing them to explain how they came to that opinion and whatever concerns they had. She explained that when a problem or a crisis comes along “stepping through it is grounding and everyone has the same fact base. It encourages synthesis and congruence with values.” That’s leading with Character and Authenticity.

 

“Purpose elevates teams to move from short-term success to long-term significance.” -Kevin Cashman

 

Meditation and Leadership

Become the Brave Leader You Were Born to Be

brave leadership

Get the Results You Need

The most amazing leaders are those who dare to be their true selves. That’s the philosophy behind the new book Brave Leadership: Unleash Your Most Confident, Powerful, and Authentic Self to Get the Results You Need.

Author Kimberly Davis is an actress turned leadership expert turned author. Her message of personal accountability immediately drew my interest.

I spoke with her about how to become the brave leader you were born to be.

 

“A hero is no braver than an ordinary man, but he is brave five minutes longer.” -Ralph Waldo Emerson

 

Unleash Your Most Confident Self

What type of leadership worked in the past but doesn’t work anymore?

While command and control worked well during the Industrial Age, today it can destroy a culture and suffocate your results.

 

“…you are the window through which you see the world.” -George Bernard Shaw

 

What leadership qualities are important to today’s workforce?

The best leaders—the men and women people want to follow, not have to follow—are confident, authentic (genuine, worthy of trust, reliance and belief), and intrinsically powerful, which means they’re connected to a purpose greater than themselves.

 

“It’s choice, not chance, that determines your destiny.” -Jean Nidetch

 

What stops most leaders from being that brave leader that they want to be?