creating a culture of improvement
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Is Servant Leadership a business model that works to create sustainability?TRANSCRIPT
The Servant Leader Model
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As economic hardship and concern for the environment increasingly penetrate the global marketplace, the criteria for measuring the success of a business is evolving past the end goal of simply selling a product or service. The desired outcome of profitability is transcending further into the multi‐dimensional model known as the triple bottom line, which targets positive societal, ecological, and financial results. Corporate social responsibility (CSR) no longer revolves around risk mitigation; it lives for social innovation. This growing trend is being perpetuated and documented by social media.
MELISSA JUN ROWLEY
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People, Planet, Profit
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Is there a sustainable business model for adopting “servant leadership” with the workplace?Can we create a culture of improvement
Faster?More Effectively?More Efficiently?
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1. Listening2. Empathy3. Healing4. Awareness5. Persuasion
6. Conceptualization7. Foresight8. Stewardship9. Commitment to the
growth of people10. Building Community
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100 Best Places to work1/3 subscribe to servant leader model
Local ExamplesSouthwest AirlinesTD IndustriesCelebration Restaurant
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Company Ownership Industry Consumer Focused
Location
Men’s Warehouse
Public Retail Yes South
PPc Partners Employee Construction No Central
Schneider Engr Family Civil Engr No Central
SouthwestAirline
Public Transportation Yes South
Synovus Public Financial Yes South
TDIndustries Employee Construction No South
Vanguard Group
Client –Own Financial Yes Northeast
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Company Ownership Industry Consumer Focused
Location
Ben & Jerry’s Subsidiary Retail Yes Northeast
Container Store
Private Retail Yes South
Herman Miller Public Mfg. No Central
Meridith Corp. Public Media Yes Central
Schmidt Assoc. Private Architects No Central
ServiceMaster Public Services Yes Central
Starbucks Public Retail Yes Northwest
Toro Public Mfg. No Central
US Cellular Subsidiary Com. Yes Central
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The following slide provides comparisons for the publicly traded companies over a 5 year reporting period – and the S&P 500 over the same time frame.
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Company Ticker Share 7/5/2001 Share 7/5/2006 Percentage Increase
Men’s Warehouse
MW $17.93 $31.21 74%
Southwest Airlines
LUV $18.67 $16.60 ‐11%
Synovus SNV $27.73 $26.76 ‐3%
Herman Miller MLHR $24.76 $26.48 7%
Meridith Corp. MDP $35.09 $48.98 40%
ServiceMaster SVM $10.39 $10.25 ‐1%
Starbucks SBUX $10.97 $37.56 243%
Toro TTC $10.80 $46.00 326%
US Cellular USM $58.40 $59.41 2%
S&P 500 GSPC $1,219.24 $1,270.92 4%10
Typically the companies remain strong and in about the same position “relatively” in Oct 2009 as they were in July 2006.We all know the market was depressed yet in
general these companies have held their own.During this period the S&P went from $1270.92 to
$1078.96 appx. ‐17% The manufacturing companies did best overall.
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Most of us will agree that culture is created by tone at the top of the organization.Jim Collins in his work Good to Great pointed out
the link between leadership and corporate culture.Leaders should know that cultures are hard to
change once entrenched. (but not impossible)It is the culture that got us where we are!
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The culture of Southwest Airlines is renowned.How did that happen?Can any company create a similar successful culture?Dr. Ann McGee Cooper is one of the common
threads that link the servant leader companies you know.
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1. Intangibles are just as important as the tangibles.2. Creative fun is a great way to coach risk
management & mature business judgment3. High‐performance teaming is more of an art than a
science.4. Frequent celebrations and building community are
essential and not frills5. Sharing the big picture & growing the business
judgment of every employee is key
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1. Listening2. Empathy3. Healing4. Awareness5. Persuasion
6. Conceptualization7. Foresight8. Stewardship9. Commitment to the
growth of people10. Building Community
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According to McKinsey and Company the answer is yes.
In a 5 year double blind global study they reported that “Operational Dynamics” have an immediate and lasting impact on the performance of the enterprise. They went on to say that a small positive change in the “Operational Dynamics” say 20% would have the same impact as a 70% increase in capital.
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Operational Dynamics are the issues discussed in Good to Great, The Leader as Servant, Deming pointed out these soft issues, and we have defined them here for you as the 10 characteristics of servant leadership.
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http://www.youtube.com/watch?v=2lXh2n0aPyw
Many of us need to make changes in our work space –this study suggests that fun adds value and increases adoption.Fun is one of those soft issues.
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Please assist me in distributing the 31 Questions handout.Every other person please turn toward the person
on your left and introduce yourself.I am going to direct you to certain questions, and
ask that you to share your opinions with each other, regarding your response to these specific questions.
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What are the leadership skills and values that apply to all people in an organization?
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What is the best way to teach/train leaders to think strategically and practically?
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What does it mean for a leader to be an ethical person?
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You Don’t Need a Title to be a Leader.Book title written by Mark Sanborn
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Fair enough – so is this The Simple Truths of Service
http://www.simpletruths.tv/movies.php?movie=STSR
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He is ONE and not the leader with the title.What kind of positive impact could you have on your
business results?Will Focus on the soft issues help?
Listening ‐ empathy ‐ healing ‐ awareness ‐ persuasion ‐conceptualization ‐ foresight ‐ stewardship ‐ commitment to growth of people ‐ building community
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ListeningEmpathyHealingAwarenessPersuasion
ConceptualizationForesightStewardshipPeople growthBuilding Community
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The 360˚ LeaderDeveloping Your Influence from Anywhere in the Organization
The 21 Laws Irrefutable Laws of LeadershipFollow Them and People will Follow You
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A famous proverb about managers doing things right and leaders doing the right things is not a prescription that recommends leaders to think only of the forest and not the trees; "instead, it is meant to define what a manager must move beyond (focusing on how to do) in order to become a leader (focusing on what to do and how to be.)
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"Because this concept of serving others is an essential part of what I believe about leadership, let me offer you a list of six things I believe about leadership:
1. Leadership is not about controlling people; it's about caring for people and being a useful resource for people. 2. Leadership is not about being boss; it's about being present for people and building a community at work. 3. Leadership is not about holding on to territory; it's about letting go of your ego, bringing your spirit to work, being your best and most authentic self. 4. Leadership is less concerned with pep talks and more concerned with creating a place in which people can do good work, can find meaning in their work, and can bring their spirits to work. 5. Leadership, like life, is largely a matter of paying attention. 6. Leadership requires love.“
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Accountability is the hard common theme that runs through the successful cultures that adopt servant leadership.SO IT IS NOT ALL ABOUT THE SOFT STUFF!
Numbers count.Everyone understanding how the numbers count is even more impactful.Everyone being in charge of their contribution to the numbers that counts is more impactful yet.
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It starts with a decision to do something differently.Are you the kind of person who can lead without
POWER?Power is very important in many peoples lives.Examine your feelings about power , who has it,
how is it used within your business model?
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Examine the culture of your current business model. How are decisions made?Who makes the decisions?Where do new ideas come from? Bottom up?
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Similar to these two startersEducate yourself by reading, asking others,
engaging a consultant.
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The Japanese have a word for it Kaizen Continuous improvementIt is an outgrowth of the Six Sigma movementWhy isn’t this enough?
For many companies adopting Kaizen and LEAN will be enoughFor others who are looking for more reward internally – more satisfaction – looking to share
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For those who are still dissatisfied with the results and long for more – to share the joy and challenges of owning and running the business –Servant Leadership may be their answer.Evidence suggest that servant led companies are
Fun ‐ Focused – Profitable ‐ Innovative
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According to Doug Hall father of the Eureka Winning Ways Innovation is a powerful tool in the market place for
success.Innovative companies are 5 times more successful
than their competitorsInnovative companies that create patens are 20
times more successful. WOW !
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Are these words synonymous? Do they mean the same thing?If so then we may be on to something useful.If we can create a innovative workspace – will
improvements follow?
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The literature suggests a direct link between cultural improvements – and bottom line performance.Examination of workspaces that have been servant
led – suggest they perform as well or better than most and are more fun and easier to manage.Looking at the bottom line results – base on the
available research ‐
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The numbers suggest – servant led companies are Innovative, Improvement focused, more profitable than their competitors that are not following a similar model, and easier to run.
Sounds like a formula for success I would like to experience and so I strive everyday to be an example of servant leadership.
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Help enough other people get what they want and you get what you want.
Every major belief system suggest the same results from Lao Tzu (600AD) to Zig Zigglar (today)
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We orchestrate buy‐in that delivers immediate impact and lasting results.
We currently have a contract with the Manufacturing Extension PartnershipsAnd their 54 plus national affiliate locations to deliver financial literacy training . In Texas – TMAC is the local MEP affiliate.
We would welcome the opportunity visit you and to discuss how servant leadershipcan positively impact your Bottom Line performance and make your enterprise easier and more fun.
972 462 0243 – Jack Howe
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1. Problems create opportunities
2. Ask why five times3. Seek ideas from
everyone4. Think of solutions that
make it possible5. Re‐evaluate fixed ideas
6. Excuses are not needed7. Choose a simple
solution; not a prefect one
8. Correct mistakes immediately
9. Use your craftiness, not your cash
10. Continuous improvement is endless
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