First Place Is Not An Easy Place To Stay

First Place Is Not An Easy Place To Stay
by Dr. John C. Maxwell

Of the original Fortune 500 companies listed in 1955, only 71 remain on the list today. Companies once deemed indestructible have fallen by the wayside. Corporate titans of enormous influence have completely disappeared in the span of a few decades. Staying power has been rare atop the Fortune 500. Instead, the list has undergone a steady turnover from year to year. Reaching the top is a monumental achievement, but remaining there may be the most spectacular feat of all.

The fate of the Fortune 500 begs the question: Why haven't the best of the best been able to maintain success?

In this edition of Leadership Wired, we'll explore reasons why first place is not an easy place to stay, and we'll look at suggestions to help leaders keep hold of the top spot.

FIRST PLACE ERASERS

The biggest detriment to tomorrow's success is today's success. Winning carries with it a slate of temptations dangerous enough to topple the grandest of corporate CEO's. I call these temptations the first place erasers. Falling prey to them is a surefire ticket to the second tier.

The Momentum Myth - Leaders presiding over good times and high profits begins to relax. Comfort sets in, and the leaders lose their edge. Hard work and a sense of urgency are replaced by naive optimism and idleness. Falsely believing they can coast, leaders fall asleep at the wheel. The end of their vigilance coincides with the end of their time at the top.

The Reputation Factor - Leaders begin to place their position above their production. They live off of yesterday and their best moments. Having already notched big victories, they quit fighting to reach their potential. Consequently, they drive the organization downhill toward mediocrity.

The Entitlement Mindset - Leaders believe they have a right to be number one. Oftentimes these leaders have been given their position rather than having earned it. Expecting preferential treatment, they have an underdeveloped work ethic. As a result, they are unable or unwilling to make the sacrifices required to stay in first place.

The Revolving Door - Leaders quit attributing their success to talented performers at all levels of the organization. People tire of laboring in obscurity, and they move on to new opportunities. Leaders fail to patch the slow leak of talent leaving their teams, and they eventually sink from first place to the middle of the pack.

The Ego Issue - The ego issue trips up leaders who cannot face or admit failure. Since their identity is wrapped in their accomplishments, they do not take ownership of mistakes. To avoid taking responsibility for poor decisions, they may have remarkably high degrees of denial or self-deception. Out of touch, they cannot steer the ship to a first place finish.

Playing Not to Lose - Leaders become cautious and defensive of their perch at the top. They begin to be motivated by fear rather than purpose. Instead of playing to win, they play not to lose. Risk averse and small-minded, they are deficient of the boldness and courage necessary to command a first place team.

HOW TO STAY IN FIRST PLACE

To preserve their first place status, leaders should give extra attention to their passion, practices and people.

Passion
When passion fades, so does a leader's trustworthiness. Gallup conducted a poll in which passion ranked as the leading indicator of credibility within an organization. The results of the survey are hardly surprising. After all, if the leader isn't excited about the purpose of the organization, then why should he or she be trusted? On the flip side, when leaders passionately sacrifice, commit, and invest in their business, they earn the respect of followers and the good faith of constituents.

Passion creates energy. When a leader exudes joy and excitement, he or she magnetically pulls co-workers and customers into a shared vision. Passion is exceptionally strong when linked with a leader's values. When leaders demonstrate principled passion, they are able to appeal to the moral and emotional instincts of those around them.

Practices
Leaders don't rise to the pinnacle of success without developing the right set of attitudes and habits. Healthy habits, practiced consistently over time, will always reap dividends. On the contrary, occasional compromises of values eventually snowball into poor decisions with negative consequences. To keep hold on number one, a leader has to make every day a masterpiece.

People
The best leaders are humble enough to realize their victories depend upon their people. When finding themselves in first place, leaders recognize they are indebted to the ingenuity and talent of those they lead. To stay in first place, leaders have to hand out credit and shine the spotlight on the contributors all around them.


~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Leadership@Large
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Leadership Lessons from the Mortgage Mess

Drive through the typical American neighborhood these days, and you will see disturbing signs of the housing collapse. Whether advertising homes for sale or foreclosures, these signs stand as evidence of leadership failures in the mortgage market.

What happened to create the mortgage mess? What leadership lessons can be drawn from the situation?

Although the housing decline has been fueled by a variety of complex factors, the mortgage mess was predicated upon a basic human vice - greed. No segment of the industry has been exempt from greed, and the behaviors of homebuyers, mortgage brokers, and investment bankers alike have contributed to the crisis.

THE (FORMER) HOMEOWNER

Homebuyers yielded to the great American temptation of living beyond their means. Many undertook obscene amounts of debt to finance homes that their income could not support in the long run. Lacking the discipline to save for a down payment, they recklessly entered into interest-only loans or adjustable rate mortgages. As long as the home value increased, they stayed afloat. However, when home prices plunged downward, these buyers found themselves living in homes worth less than the money they owed for them.

The Lesson: Patience
Walk before you run. Get rid of consumer debt before making major purchases. Build savings before you build a home.


THE (BROKE) MORTGAGE BROKER

During the housing bubble, mortgage brokers profiteered at the expense of uneducated homebuyers. Since the brokersĂȘ pay was based on commission, they had incentive to push consumers into buying bigger houses than they could afford. Brokers pressured homebuyers to overstate their earnings, and deceived them into making dubious choices on their mortgages.

For a time, the brokers raked in money. Then the economy took a downturn. Suddenly, everyone was looking to sell and no one wanted to buy. Business for the brokers went dry. As homeowners began to face foreclosures, the mortgage industry fell under greater scrutiny. News outlets exposed the most flagrant abuses committed by brokers, and society began to view them as dishonest middlemen. Consumers began bypassing them to work directly with lending institutions, leaving many mortgage brokers jobless.

The Lesson: Honesty
Ethical shortcuts lead to unsustainable successes. While deceitful mortgage brokers amassed wealth, they unwittingly sabotaged their careers and livelihoods.


THE (BANKRUPT) INVESTMENT BANKER

Impaired by greed, investment bankers leveraged their portfolios too much in the hopes of cashing in on soaring home prices. Through an array of complex schemes, they over-invested in high-risk mortgages that had been made to borrowers with poor credit.

As the housing market crumbled, investment banks could no longer sell funds laden with mortgage-backed securities. The value of their securities tumbled as homebuyers defaulted on their loans at record-breaking levels. Giants like Bear Stearns collapsed, the repercussions echoed throughout Wall Street.

The Lesson: Contentment
Not content to turn a modest profit, investment bankers attempted to squeeze every penny of profit from the booming housing market. They ignored the wisdom of a balanced portfolio, and they tried to tilt the scales in their favor by burying questionable investments into complex hedge funds. In the end, they rode the crest of the market for too long, and when the wave fell, they crashed hard.

-------------

Starting Over

"Our greatest glory is not in never falling but in rising every time we fall." ~ Confucius

Rarely does a person coast through life without having to start over after a major setback. Consider the following situations in which people must start anew.

Factory workers in America have had no choice but to start over as their manufacturing jobs have been outsourced internationally.
Hurricane Katrina victims have been forced to start over after their homes, businesses, and schools were destroyed by the storm.
Thousands of households have been forced to start over after losing their homes in the mortgage crisis.
In the Winter 2008 edition of Leader to Leader Journal, Robert L. Dilenschneider writes a revealing article about being forced to start over professionally. After losing a position of far-reaching influence, Dilenschneider journeyed through a season of joblessness before regaining his footing. His experience yields healthy insights for leaders going through the painful trial of getting back up after being knocked down.

Let Go of Humiliation

The difficulty of starting over professionally (polishing the resume, learning new job skills, etc.) pales in comparison to the personal humiliation of hitting rock bottom. Dilenschneider warns against two unhealthy responses to the hurt that accompanies a serious setback: (1) self-pity and (2) desire for revenge.

Self-pity focuses pain inwardly. By succumbing to self-pity, people heap blame upon themselves in both real and imagined ways. They interpret negative circumstances as evidence of their worthlessness. At worst, such behavior may cause the person to spiral into depression. At the very least, it takes a toll on their self-esteem and undercuts their confidence.

The desire for revenge focuses pain externally. When finger-pointing or assigning blame, you're more likely to amplify your hurt than to heal it. Don't play the victim. As long as you cede responsibility for your setback to someone else, then you've surrendered your joy and wellness to their control.

Hold tightly to hope

Don't let yourself become accustomed to the darkness. As surely as the sun will set tonight, it will rise again tomorrow. Life has a rhythm. Sometimes failure presses down on us, but just as often we triumph against the odds. As you start over, concentrate on your talents and replay successes in your mind. Surround yourself with encouragement and the support of family and loved ones.

As Dilenschneider recommends, learn from the ordeal of staring over. Find purpose in failure, and mine it for invaluable insights. View adversity as a test of your strength rather than proof of your weakness. Remember: people with hope are elastic rather than fragile. When they fall, they don't break; they rebound.


~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Book Review
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

.:: Hug Your People: The Proven Way to Hire, Inspire, and Recognize Your Employees and Achieve Remarkable Results
by Jack Mitchell (Hyperion, 2008)

Do you remember the ugly sweater? The one your aunt gave to you at Christmas when you were nine years old? The sweater you buried so deep in your closet that it wouldn't be rediscovered for decades? On top of being a crime against fashion, the gift was a flop because the gift-giver hadn't invested the effort into discovering your preferences or style.

Thankfully, not all gifts are wool sweaters. There's something special about unwrapping a present that's perfectly in step with your taste and interests. Over and above getting a gift you love, you receive affirmation that someone knows and cares about you. The perfect gift makes you feel valued at a personal level.

In Hug Your People, Jack Mitchell shares how the power of personalization attributes to the legendary work culture at upscale clothier Mitchells / Richards / Marshs. As CEO, Mitchell makes hugging his people a top priority. For Jack, hugging serves as a metaphor for personalized praise, encouragement, or friendliness. His company is infected with huggers, and, consequently, his retail stores have become some of the most sought after workplaces in New York City.

Mitchell encourages his associates to develop holistic relationships with one another that transcend the artificial boundaries of personal and professional. He advises managers to connect with those they lead, "as real people rather than as job responsibilities." His premium on personalized relationships translates into an environment where people are both understood and genuinely cared for as individuals.

As a writer, Jack Mitchell's style seems to be a reflection of his personality: upbeat, authentic, and fun. Throughout the book, he liberally doles out exclamation points while casually drifting in and out of stories about friends and colleagues. Some writers can be heavy on motivation and light on applicable content, but Mitchell deftly mixes the inspirational and the practical.

The book's highlights are too numerous to recount during a brief review, but a few areas merit special attention:

* Chapter Two's tips on hiring to fit culture;
* The emphasis on expectations rather than rules in Chapter Ten;
* The entire section on inclusion (Chapters 22-27).

Additionally, nearly every chapter sounds out Mitchell's recurring mantra: "Personalization delivered positively with passion."

Hug Your People floods the reader with reminders that the foremost ingredient of successful business is people. Author Jack Mitchell advises leaders to appreciate, admire, and connect with the uniqueness inside of every person. Mitchell writes with passion, wisdom, and the credibility of having a track record of impressive success. LW subscribers are highly encouraged to embrace his management philosophy as spelled out in Hug Your People.


~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Quick Quotes
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

MONEY

"A wise man should have money in his head, but not in his heart." ~ Jonathan Swift

"Too many people spend money they haven't earned, to buy things they don't want, to impress people they don't like." ~ Will Rogers

"A penny saved is a penny earned." ~ Benjamin Franklin

"Do not value money for any more nor any less than its worth; it is a good servant but a bad master." ~ Alexandre Dumas

"It comes down to this: either you control money, or it controls you." ~ T. Harv Eker

First Place Is Not An Easy Place To Stay

by Dr. John C. Maxwell

Of the original Fortune 500 companies listed in 1955, only 71 remain on the list today. Companies once deemed indestructible have fallen by the wayside. Corporate titans of enormous influence have completely disappeared in the span of a few decades. Staying power has been rare atop the Fortune 500. Instead, the list has undergone a steady turnover from year to year. Reaching the top is a monumental achievement, but remaining there may be the most spectacular feat of all.

The fate of the Fortune 500 begs the question: Why haven't the best of the best been able to maintain success?

In this edition of Leadership Wired, we'll explore reasons why first place is not an easy place to stay, and we'll look at suggestions to help leaders keep hold of the top spot.

FIRST PLACE ERASERS

The biggest detriment to tomorrow's success is today's success. Winning carries with it a slate of temptations dangerous enough to topple the grandest of corporate CEO's. I call these temptations the first place erasers. Falling prey to them is a surefire ticket to the second tier.

The Momentum Myth - Leaders presiding over good times and high profits begins to relax. Comfort sets in, and the leaders lose their edge. Hard work and a sense of urgency are replaced by naive optimism and idleness. Falsely believing they can coast, leaders fall asleep at the wheel. The end of their vigilance coincides with the end of their time at the top.

The Reputation Factor - Leaders begin to place their position above their production. They live off of yesterday and their best moments. Having already notched big victories, they quit fighting to reach their potential. Consequently, they drive the organization downhill toward mediocrity.

The Entitlement Mindset - Leaders believe they have a right to be number one. Oftentimes these leaders have been given their position rather than having earned it. Expecting preferential treatment, they have an underdeveloped work ethic. As a result, they are unable or unwilling to make the sacrifices required to stay in first place.

The Revolving Door - Leaders quit attributing their success to talented performers at all levels of the organization. People tire of laboring in obscurity, and they move on to new opportunities. Leaders fail to patch the slow leak of talent leaving their teams, and they eventually sink from first place to the middle of the pack.

The Ego Issue - The ego issue trips up leaders who cannot face or admit failure. Since their identity is wrapped in their accomplishments, they do not take ownership of mistakes. To avoid taking responsibility for poor decisions, they may have remarkably high degrees of denial or self-deception. Out of touch, they cannot steer the ship to a first place finish.

Playing Not to Lose - Leaders become cautious and defensive of their perch at the top. They begin to be motivated by fear rather than purpose. Instead of playing to win, they play not to lose. Risk averse and small-minded, they are deficient of the boldness and courage necessary to command a first place team.

HOW TO STAY IN FIRST PLACE

To preserve their first place status, leaders should give extra attention to their passion, practices and people.

Passion
When passion fades, so does a leader's trustworthiness. Gallup conducted a poll in which passion ranked as the leading indicator of credibility within an organization. The results of the survey are hardly surprising. After all, if the leader isn't excited about the purpose of the organization, then why should he or she be trusted? On the flip side, when leaders passionately sacrifice, commit, and invest in their business, they earn the respect of followers and the good faith of constituents.

Passion creates energy. When a leader exudes joy and excitement, he or she magnetically pulls co-workers and customers into a shared vision. Passion is exceptionally strong when linked with a leader's values. When leaders demonstrate principled passion, they are able to appeal to the moral and emotional instincts of those around them.

Practices
Leaders don't rise to the pinnacle of success without developing the right set of attitudes and habits. Healthy habits, practiced consistently over time, will always reap dividends. On the contrary, occasional compromises of values eventually snowball into poor decisions with negative consequences. To keep hold on number one, a leader has to make every day a masterpiece.

People
The best leaders are humble enough to realize their victories depend upon their people. When finding themselves in first place, leaders recognize they are indebted to the ingenuity and talent of those they lead. To stay in first place, leaders have to hand out credit and shine the spotlight on the contributors all around them.


~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Leadership@Large
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Leadership Lessons from the Mortgage Mess

Drive through the typical American neighborhood these days, and you will see disturbing signs of the housing collapse. Whether advertising homes for sale or foreclosures, these signs stand as evidence of leadership failures in the mortgage market.

What happened to create the mortgage mess? What leadership lessons can be drawn from the situation?

Although the housing decline has been fueled by a variety of complex factors, the mortgage mess was predicated upon a basic human vice - greed. No segment of the industry has been exempt from greed, and the behaviors of homebuyers, mortgage brokers, and investment bankers alike have contributed to the crisis.

THE (FORMER) HOMEOWNER

Homebuyers yielded to the great American temptation of living beyond their means. Many undertook obscene amounts of debt to finance homes that their income could not support in the long run. Lacking the discipline to save for a down payment, they recklessly entered into interest-only loans or adjustable rate mortgages. As long as the home value increased, they stayed afloat. However, when home prices plunged downward, these buyers found themselves living in homes worth less than the money they owed for them.

The Lesson: Patience
Walk before you run. Get rid of consumer debt before making major purchases. Build savings before you build a home.


THE (BROKE) MORTGAGE BROKER

During the housing bubble, mortgage brokers profiteered at the expense of uneducated homebuyers. Since the brokersĂȘ pay was based on commission, they had incentive to push consumers into buying bigger houses than they could afford. Brokers pressured homebuyers to overstate their earnings, and deceived them into making dubious choices on their mortgages.

For a time, the brokers raked in money. Then the economy took a downturn. Suddenly, everyone was looking to sell and no one wanted to buy. Business for the brokers went dry. As homeowners began to face foreclosures, the mortgage industry fell under greater scrutiny. News outlets exposed the most flagrant abuses committed by brokers, and society began to view them as dishonest middlemen. Consumers began bypassing them to work directly with lending institutions, leaving many mortgage brokers jobless.

The Lesson: Honesty
Ethical shortcuts lead to unsustainable successes. While deceitful mortgage brokers amassed wealth, they unwittingly sabotaged their careers and livelihoods.


THE (BANKRUPT) INVESTMENT BANKER

Impaired by greed, investment bankers leveraged their portfolios too much in the hopes of cashing in on soaring home prices. Through an array of complex schemes, they over-invested in high-risk mortgages that had been made to borrowers with poor credit.

As the housing market crumbled, investment banks could no longer sell funds laden with mortgage-backed securities. The value of their securities tumbled as homebuyers defaulted on their loans at record-breaking levels. Giants like Bear Stearns collapsed, the repercussions echoed throughout Wall Street.

The Lesson: Contentment
Not content to turn a modest profit, investment bankers attempted to squeeze every penny of profit from the booming housing market. They ignored the wisdom of a balanced portfolio, and they tried to tilt the scales in their favor by burying questionable investments into complex hedge funds. In the end, they rode the crest of the market for too long, and when the wave fell, they crashed hard.

-------------

Starting Over

"Our greatest glory is not in never falling but in rising every time we fall." ~ Confucius

Rarely does a person coast through life without having to start over after a major setback. Consider the following situations in which people must start anew.

Factory workers in America have had no choice but to start over as their manufacturing jobs have been outsourced internationally.
Hurricane Katrina victims have been forced to start over after their homes, businesses, and schools were destroyed by the storm.
Thousands of households have been forced to start over after losing their homes in the mortgage crisis.
In the Winter 2008 edition of Leader to Leader Journal, Robert L. Dilenschneider writes a revealing article about being forced to start over professionally. After losing a position of far-reaching influence, Dilenschneider journeyed through a season of joblessness before regaining his footing. His experience yields healthy insights for leaders going through the painful trial of getting back up after being knocked down.

Let Go of Humiliation

The difficulty of starting over professionally (polishing the resume, learning new job skills, etc.) pales in comparison to the personal humiliation of hitting rock bottom. Dilenschneider warns against two unhealthy responses to the hurt that accompanies a serious setback: (1) self-pity and (2) desire for revenge.

Self-pity focuses pain inwardly. By succumbing to self-pity, people heap blame upon themselves in both real and imagined ways. They interpret negative circumstances as evidence of their worthlessness. At worst, such behavior may cause the person to spiral into depression. At the very least, it takes a toll on their self-esteem and undercuts their confidence.

The desire for revenge focuses pain externally. When finger-pointing or assigning blame, you're more likely to amplify your hurt than to heal it. Don't play the victim. As long as you cede responsibility for your setback to someone else, then you've surrendered your joy and wellness to their control.

Hold tightly to hope

Don't let yourself become accustomed to the darkness. As surely as the sun will set tonight, it will rise again tomorrow. Life has a rhythm. Sometimes failure presses down on us, but just as often we triumph against the odds. As you start over, concentrate on your talents and replay successes in your mind. Surround yourself with encouragement and the support of family and loved ones.

As Dilenschneider recommends, learn from the ordeal of staring over. Find purpose in failure, and mine it for invaluable insights. View adversity as a test of your strength rather than proof of your weakness. Remember: people with hope are elastic rather than fragile. When they fall, they don't break; they rebound.


~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Book Review
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

.:: Hug Your People: The Proven Way to Hire, Inspire, and Recognize Your Employees and Achieve Remarkable Results
by Jack Mitchell (Hyperion, 2008)

Do you remember the ugly sweater? The one your aunt gave to you at Christmas when you were nine years old? The sweater you buried so deep in your closet that it wouldn't be rediscovered for decades? On top of being a crime against fashion, the gift was a flop because the gift-giver hadn't invested the effort into discovering your preferences or style.

Thankfully, not all gifts are wool sweaters. There's something special about unwrapping a present that's perfectly in step with your taste and interests. Over and above getting a gift you love, you receive affirmation that someone knows and cares about you. The perfect gift makes you feel valued at a personal level.

In Hug Your People, Jack Mitchell shares how the power of personalization attributes to the legendary work culture at upscale clothier Mitchells / Richards / Marshs. As CEO, Mitchell makes hugging his people a top priority. For Jack, hugging serves as a metaphor for personalized praise, encouragement, or friendliness. His company is infected with huggers, and, consequently, his retail stores have become some of the most sought after workplaces in New York City.

Mitchell encourages his associates to develop holistic relationships with one another that transcend the artificial boundaries of personal and professional. He advises managers to connect with those they lead, "as real people rather than as job responsibilities." His premium on personalized relationships translates into an environment where people are both understood and genuinely cared for as individuals.

As a writer, Jack Mitchell's style seems to be a reflection of his personality: upbeat, authentic, and fun. Throughout the book, he liberally doles out exclamation points while casually drifting in and out of stories about friends and colleagues. Some writers can be heavy on motivation and light on applicable content, but Mitchell deftly mixes the inspirational and the practical.

The book's highlights are too numerous to recount during a brief review, but a few areas merit special attention:

* Chapter Two's tips on hiring to fit culture;
* The emphasis on expectations rather than rules in Chapter Ten;
* The entire section on inclusion (Chapters 22-27).

Additionally, nearly every chapter sounds out Mitchell's recurring mantra: "Personalization delivered positively with passion."

Hug Your People floods the reader with reminders that the foremost ingredient of successful business is people. Author Jack Mitchell advises leaders to appreciate, admire, and connect with the uniqueness inside of every person. Mitchell writes with passion, wisdom, and the credibility of having a track record of impressive success. LW subscribers are highly encouraged to embrace his management philosophy as spelled out in Hug Your People.


~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Quick Quotes
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

MONEY

"A wise man should have money in his head, but not in his heart." ~ Jonathan Swift

"Too many people spend money they haven't earned, to buy things they don't want, to impress people they don't like." ~ Will Rogers

"A penny saved is a penny earned." ~ Benjamin Franklin

"Do not value money for any more nor any less than its worth; it is a good servant but a bad master." ~ Alexandre Dumas

"It comes down to this: either you control money, or it controls you." ~ T. Harv Eker

Charismatic Leadership

by Dr. John C. Maxwell

William Gladstone and Benjamin Disraeli were two of the fiercest political rivals of the 19th century. Their epic battles for control of the British Empire were marked by intense animosity that spilled over from the public arena into their personal lives. Ambitious, powerful, and politically astute, both men were spirited competitors and masterful politicians.

Though each man achieved impressive accomplishments for Britain, the quality that separated them as leaders was their approach to people. The difference is best illustrated by the account of a young woman who dined with the men on consecutive nights. When asked about her impression of the rival statesmen, she said, "When I left the dining room after sitting next to Mr. Gladstone, I thought he was the cleverest man in England. But after sitting next to Mr. Disraeli, I thought I was the cleverest woman in England."

What distinguished Disraeli from Gladstone was charisma. Disraeli possessed a personal charm sorely lacking in the leadership style of his rival. His personal appeal attracted friends and created favorable impressions among acquaintances. Throughout his career, Disraeli's charisma gave him an edge over Gladstone.

UNDERSTANDING CHARISMA

Of all leadership attributes, charisma is perhaps the least understood. At first glance, charisma appears to be an invisible energy or magnetism. There's no denying its presence, but it's hard to put a finger on its source. Some mistakenly believe charisma is a birth trait—embedded in certain personalities, but completely absent in others.

I believe charisma is both explainable and learnable. I also believe charisma helps to boost a leader's influence. That's why I included it in my book, The 21 Indispensable Qualities of a Leader. In this lesson, I'd like to examine the causes of charisma and teach you how to increase the charisma you display as a leader.

THE QUALITIES OF A CHARISMATIC LEADER

Charisma is defined as, "The ability to inspire enthusiasm, interest, or affection in others by means of personal charm or influence." Leaders who have this special ability share four things in common:

1) They Love Life

Leaders who attract a following are passionate about life. They are celebrators, not complainers. They're characterized by joy and warmth. They're energetic and radiant in an infectious way.

Look no further than the smile to illustrate the power of charisma. When people see a smile, they respond with a smile. If you're skeptical, try it. Smile at cashiers, waiters, co-workers, etc. You'll find your smile earns a reciprocate smile almost every time. We are hardwired to take on the energy of those around us. Leaders who love life have charisma because they fill the room with positive energy.

2) They Value the Potential in People

To become an attractive leader, expect the best from your people. I describe this behavior as "putting a 10 on everyone's head." Leaders see people, not as they are, but as they could be. From this vantage point, they help others to build a bridge from the present to a preferred future.

Benjamin Disraeli understood and practiced this concept, and it was one of the secrets to his charisma. He once said, "The greatest good you can do for another is not to share your riches but to reveal to him his own." When you invest in people and lift them toward their potential, they will love you for it.

3) They Give Hope

People have an inner longing to improve their future and their fortunes. Charismatic leaders connect with people by painting tomorrow brighter than today. To them, the future is full of amazing opportunities and unrealized dreams.

Napoleon Bonaparte once said, "Leaders are dealers in hope." They infuse optimism into the culture around them, and they boost morale. While attentive to the current reality, they do not resign themselves to present circumstance.

4) They Share Themselves

Leaders with charisma add value to people by sharing wisdom, resources, and even special occasions. They embrace the power of inclusion, inviting others to join them for learning experiences, brainstorming sessions, or simply a cup of coffee. Such leaders embrace team spirit and value togetherness. As a result, charismatic leaders are not lonely at the top.

When it comes to charisma, the bottom line is othermindedness. For leaders, the greatest satisfaction is found by serving. They find great pleasure celebrating the successes of those around them, and the victory they enjoy the most is a team triumph.

SUMMARY

In closing, charisma has substance. It's not manipulative energy or a magical gift endowed upon select personalities. Rather, it's an attractive blend of learnable qualities.

Furthermore, charisma compounds a leader's influence. Without it, leaders have trouble inspiring passion and energizing their teams. With it, leaders draw out the best in their people, give the best of themselves, and find the greatest fulfillment.


~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Leadership@Large
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Finding Your Voice

"One word expresses the pathway to greatness: voice. Those on this path find their voice and inspire others to find theirs. The rest never do." ~ Steven Covey

One of the expressions bandied about by political commentators this season has been of a candidate "finding a voice." In fact, in the space of about two months, seemingly every candidate found his or hers.

* On November 11, 2007, TIME contributor, Ana Marie Cox, wrote about Senator Barack Obama "finding his voice," at a Democratic dinner party in Iowa.
* During post-debate coverage on November 28, 2007, CNN's David Gergen asserted, "I think that the most presidential tonight was John McCain, who's found his voice again."
* On January 9th 2008, Jack Horowitz of the New York Observer wrote about Hillary Clinton's primary election victory in New Hampshire. The headline? "Hillary, Triumphant, Finds Her Voice."
* On January 16, 2008, Ana Marie Cox raised the question, "Has Romney Found His Voice?" in her article on Mitt Romney's first-place finish in the Michigan presidential primary.

In an April blog post, Stephen Covey tackles the nebulous concept of a leader's "voice." He feels that leaders "find a voice" when they 1) Tap into Talent 2) Find What Fuels Their Passion 3) Are Burdened with a Need 4) Take Action to Meet the Need.

Step 1: Tapping into Your Talent

Tapping into your talents starts with understanding where you excel. It involves recognizing your strengths and positioning yourself to leverage them. To tap into your talent consider the question: What am I good at doing?

Step 2: Fueling Your Passion

When you take part in activities that fill you with positive emotion, you are fueling your passion. Pursuits that spark your passion bring excitement, enthusiasm, joy, and fun. To fuel your passion, ask yourself: What do I love doing?

Step 3: Being Burdened with a Need

When a problem in society lodges itself in your heart and won't let go, then you have been burdened with a need. Perhaps, the need is an injustice you wish to remedy. Maybe it's a disease you would love to cure. Whatever the case, a burden gnaws at your conscience. To take stock of your biggest burden, wrestle with the question: What need must I serve?

Step 4: Meeting the Need

Once a need has arrested your attention, then you can find your voice by taking action. A need compels you to do something besides criticize from the sidelines. To meet the need, think about this question: How can I align my talent with my passion in order to meet the need that burdens me?

-------------

Five Questions for Leaders With Newfound Authority

The most revealing chapter of a leader's journey begins when they ascend to their first position of influence. Much can be deciphered about a person's character by observing how they wield authority.

Don't misinterpret me; leadership transcends titles, and influence cannot be confined to positions of rank or seniority. Nonetheless, newfound authority carries the weight of responsibility. How a leader responds to that responsibility can be a measuring stick of their overall fitness to lead.

When leaders are handed authority, they enjoy broader latitude to exercise their leadership style. As positional leaders, they are able to implement their ideas more freely and instill their values more directly. The decisions they make at this critical juncture may either launch their careers or stunt their development.

In his blog for Harvard Business Publishing, Bill Taylor poses five questions aspiring leaders should consider as they assume the reigns of authority. For rising leaders, or those mentoring a leadership rookie, his material will be particularly beneficial.

Five Make-or-Break Questions for Aspiring Leaders

1) Why should great people want to work with you?

Money without mission attracts mercenaries. Talent "for-hire" flows to the highest bidder, and refuses to drop anchor. In the absence of a compelling vision, leaders find themselves presiding over a collection of individuals rather than leading a team.

As Bill Taylor writes, "great people want to feel like they're part of something greater than themselves." By offering more than a paycheck, an aspiring leader attracts values-based performers. Such employees are likely to forge emotional ties to the organization, take ownership of its mission, and invest themselves to accomplish its vision.

2) Do you know a great person when you see one?

"When it comes to evaluating talent, character counts for as much as credentials," writes Taylor. Aspiring leaders are wise to hire people who, in addition to being competent, fit smoothly into the company's culture. To do so, it may be necessary to endure the inconvenience (and extra work) of a longstanding opening until a suitable candidate surfaces.

3) Can you find great people who aren't working for you?

Aspiring leaders may want to polish their sales pitch to attract star performers from outside the organization. According to Taylor, "Leaders who are content to fill their organizations with people actively looking for jobs risk attracting malcontents and mediocre performers."

Talent will not beat a path to your door. The best leaders are actively on the lookout for key contributors. They look to hire, not when the need arises, but whenever they locate peak performers.

4) Are you teaching great people how your company works and wins?

In an effort to showcase their leadership skills, insecure leaders may rally their team to outperform others within the organization. The result: a counterproductive spirit of competition instead of togetherness.

Smart leaders are wary of silos. They define the win for their team and connect that win to the company's overarching strategy. They recognize the power of a "we" mentality. As such, they prioritize connecting the performance of their people to the overall success of the company.

5) Are you as tough on yourself as you are on your people?

Bleed your creed. Undemonstrated or uncertain commitment on the part of a leader has a corrosive effect on that leader's influence. Followers resent leaders who are unwilling to make the investment they demand of those they supervise.

Oppositely, leaders who pay the price to fulfill lofty self-expectations earn the right to place high standards on their people. By doing so, they are imbuing their authority with authentic influence.


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Book Review
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.:: The Breakthrough Company: How Everyday Companies Become Extraordinary Performers
by Keith R. McFarland (Crown Business, 2008)

As a newcomer to Hollywood, Brad Pitt spent his days in a giant chicken costume, not as an actor, but as an employee of El Pollo Loco.

Jerry Seinfeld worked as a light-bulb salesman and peddled jewelry on the streets of New York before making his breakthrough as a comedian.

Prior to gaining celebrity status, Whoopi Goldberg worked for a mortuary, giving cosmetic treatment to prepare bodies for open-casket funerals.

BREAKTHROUGH

Breakthrough is the bridge from anonymity to stardom. It's the pathway from average to highly-acclaimed. In The Breakthrough Company, author Keith R. McFarland explores how businesses transition from ordinary to extraordinary.

An endorsement on the book's dust jacket, "Good to Great for those small enough to think big," accurately sums up of the book. Indeed, McFarland shares Jim Collins' passion for research and penchant for extracting pearls of wisdom from a sea of data. In fact, McFarland cites a conversation with Collins as a major inspiration for his decision to write The Breakthrough Company.

As the basis for the book, McFarland conducted an exhaustive study on small, unknown companies that made big leaps to become industry leaders and Wall Street darlings. Along the way, he identified several commonalities of breakthrough performers, and he spends the bulk of the book expounding on those qualities.

McFarland posits that small companies can learn behaviors to increase their odds of achieving breakthrough. In the brevity of this review, it isn't possible to flesh out the many rich concepts he offers. However, here's the shortlist of his brightest ideas:

:: Crowning the Company (Chapter 3)

Entrepreneurs inhibit breakthrough when they crown themselves as the sovereign leader of the company. Instead, leaders who inspire breakthrough, "Serve their companies instead of having their companies serve them."

:: Building Company Character (Chapter 5)

A statement of values is worthless unless the values are put into practice. A company's habits of behavior are what count. "Everything else is just PR."

:: Navigating The Business Bermuda Triangle (Chapter 6)

Like the famed Bermuda Triangle, startups have a danger zone in which they may lose their way and never be heard from again. This area is the stage of growth at which the benefits of being small must be scaled into sustainable advantages - regardless of size.

SUMMARY

It's worth restating how the meticulous research undertaken by McFarland contributes to the force of his ideas. His leadership observations rest on a bedrock of in-depth analysis rather than personal opinion or popular theory. Keen insights, at times counterintuitive and surprising, spring forth from his incisive investigation of breakthrough companies.


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Quick Quotes
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CHARISMA

"How can you have charisma? Be more concerned about making others feel good about themselves than you are making them feel good about you." ~ Dan Reiland

"There is no personal charm so great as the charm of a cheerful temperament." ~Henry Van Dyke

"Charisma is a sparkle in people that money can't buy. It's an invisible energy with visible effects." ~ Marianne Williamson

Diversity: Far More Than You Can Imagine

By Erwin Raphael McManus


One of the questions I am asked the most is concerning Mosaic's diversity. Usually when a person refers to diversity they're dealing with ethnic or racial differences. I understand why this is such an important focus in our culture. The need to deal with the ever growing segmentation and the tensions that ensue have made diversity one of our culture's most significant issues. In this past year, for example, the Academy Award winning movie Crash powerfully unwrapped the complexities involved in a world where very different people are coming together and have to figure out how to live together.

Mosaic represents somewhere around 70 different ethnic groups. Just this past week we baptized someone from Finland, had a first time guest who was a Russian-Jew, and once again faced the challenge of how to integrate them into a community where we also have to deal with transplants from Michigan. Ironically the tremendous success we've had in bringing the world together hasn't happened as a result of what you'd expect. I haven't spent the last 15 years preaching, teaching, or even focusing on racial reconciliation. My experience and observation tells me that those churches that actually raise the banner of reconciliation and diversity rarely accomplish it. Whatever measure of success we have experienced in this arena comes from a very different focus. We have spent an endless amount of time and energy identifying, nurturing, developing, and maximizing the uniqueness of every person.

Rather than trying to create a rainbow coalition of white, black, brown, and whatever other colors our eyes might see, we have instead taken on a far more complex challenge. Racial reconciliation is like trying to fill a box of crayons with blue, red, yellow and green. Granted, they're beautiful and the bases of every other color, but you're still dealing in primary colors. Imagine expanding from the four-pack of crayons to the 64 pack filled with a seemingly endless array of color and opportunity. Reach in and pick a color. Turquoise, Indigo, Silver, Coral, Magenta, Tangerine. To the casual artist some colors seem redundant. Many of us are incapable of identifying the nuanced differences. But to the skilled artisan, those nuances are absolutely critical for their full creative expression.

It's the same when building human community. If all you see are the primary colors, you'll always be limited, even though all the potential in the world is there. When you begin to see people beyond the surface to the real uniqueness that resides within them, you'll wonderfully discover that the diversity you hoped for was just a starting point. What you'll come to discover is far more than you could have imagined.

Choosing To Trust

By Andy Stanley


rust is the currency of relationships. Great leaders cultivate a culture of trust, and thus a culture where relationships thrive. But how do you foster trust between members of your team?

For some, trust is not the intuitive choice. However, I believe it is just that. A choice. In 1 Corinthians 13, Paul says that along with forgiving, enduring, and bearing all things, love believes all things. We must reconcile the scriptural charge to believe all things with the fact that it is not always easy to do. If we believe it is possible for us to choose to love, or be kind, or be patient, then we must also believe we can choose to trust.

But the gap between what we expect of people and what they actually deliver makes it hard to trust. We can either fill that gap with trust or with suspicion. How we handle these opportunities is the greatest determining factor in the success or failure of the relationships in our organizations.

I started by saying that trust is the currency of relationships. Currency implies an exchange of one thing for another. Relationally, we give trust, and we expect trustworthiness in return. But trustworthiness is not a synonym for perfection. Trust is not built on flawless character, but on authenticity. I will extend trust to people who will admit their imperfections. It is people who defend their infallibility who make me suspicious.

There are situations that merit suspicion. What's important is how we handle them. When over time a person's actions erode our trust, and we believe those actions leave the organization vulnerable to harm, we have a responsibility . to talk to that person about it, (not the rest of the team), to address the gap, and give that person the opportunity to re-establish their trustworthiness. Trustworthy people will address the suspicion they've created.

I wish this principle were easy to implement. It's not. But it is crucial for building a strong team. Here are three things to keep in mind when a trust versus suspicion issue surfaces:

1. When there is a gap, choose to trust.
2. When you see others filling the gap with suspicion, come to the defense of the suspect.
3. If what you see continues to erode your trust, go to the person directly.

Great leaders create a culture in which people have learned how to trust. Modeling biblical trust as outlined in 1 Corinthians 13 is one of the greatest leadership strategies you can employ. Biblical trust is not denial - pretending that you don't see behavior that erodes your trust. It's not withdrawal - refusing to confront. The key is to choose to trust. When it becomes impossible to fill the gap between expectation and behavior with trust, ask for clarification.

Trust is the currency of relationships. Trust is a dynamic your team cannot afford to be without. Model it. Extend it. Choose to trust.

Sleep Therapy

By Lauren Winner


Last night, I pulled one of my very few all-nighters. Though not uncommon in my college years, my capacity to stay up all night and be anything approximating coherent the next morning has declined as I've marched through my twenties, and now the all-nighters happen very rarely, once every two years or so, and only when I am truly desperate.

But the storied all-nighters are just the most extreme example of something many of us do quite a lot: chip away at needed sleep in order to do something else. Usually that something else is work.

A simple glance at my email Inbox tells me that I am not alone in sacrificing sleep in order to squeeze in a few more hours of work. Last Tuesday alone, I received 23 work-related emails that had been sent between 10:00 p.m. and 5:00 a.m. This creeped me out. The next night, in fact, I had some trouble falling asleep, because I lay in bed worrying about the correspondence that was accumulating in my email account, the possibly pressing matters I would need to address in the morning, and the number of hours the next morning that I would have to devote not to preparing to teach my afternoon class, but to replying to email. Worried that I would be left without enough time for class prep, I rolled over and set my alarm back from 6:30 to 5:00, resolved to use the extra 90 minutes of wakefulness for email.

Wakefulness, actually, may not be the right word. For though I "gained" 90 minutes in which I was awake, I actually lost wakefulness. Sleep specialists are virtually unanimous on this: we human beings cannot lose sleep without decreasing our attention span, our response time, our cogence. I may have been awake for 90 extra minutes, but I was less wakeful all day long.

According to National Sleep Foundation, the average adult sleeps 6 hours and 58 minutes per night during the work week. Compare this to 100 years ago—before Mr. Edison's marvelous invention—when we slept about 9 hours a night. Indeed, we are a nation of people who are chronically sleep deprived. Those pre-Edison people were right in line with the 8 to 10 hours of sleep specialists say we need.

Sleep more: this may seem a curious answer to the question of what Christians can do for the common good. Surely one could come up with something more other-directed, more sacrificial, less self-serving. Or more overtly political—refusing to serve in the current war.

But for the moment I am sticking with the small, if challenging, task of becoming more well-rested. Not only does sleep have evident social consequences, not only would sleeping more make us better neighbors and friends and family members and citizens. Sleeping well may also be part of Christian discipleship, at least in our time and place. For not only might a counter-cultural embrace of sleep witness to values higher than "the cares of this world, the deceitfulness of riches, and the desires for other things"

A night of good sleep—a week, or month, or year of good sleep—also testifies to basic Christian story of Creation. We are creatures, and we are creatures with bodies that are finite and contingent. The unarguable demands that our bodies make for sleep are a good reminder that we are mere creatures, not the Creator. For it is God and God alone who "neither slumbers nor sleeps." Of course, the Creator has slept, another startling reminder of the radical humility He embraced in becoming Incarnate. He took on a body that, like ours, was finite and contingent and needed sleep. To push ourselves to go without sleep is, in some sense, to deny our embodiment, to deny our fragile incarnations—and perhaps to deny the magnanimous poverty and self-emptying that went into His incarnation.

French poet Charles Peguy makes the point well:

I don't like the man who doesn't sleep, says God.
Sleep is the friend of man,
Sleep is the friend of God.
Sleep is perhaps the mot beautiful thing I have created.
And I myself rested on the seventh day..
But they tell me that there are men
Who work well and sleep badly.
Who don't sleep. What a lack of confidence in me.

Peguy's words have perhaps never been more fitting: to sleep, long and soundly, is to place our trust not in our own strength and hard-work, but in Him without whom we labor in vain.