Download - The Advantage
WHY ORGANIZATIONAL HEALTH
TRUMPS EVERYTHING ELSE
IN BUSINESS
PATRICK LENCIONIBEST-SELLING AUTHOR OF THE FIVE DYSFUNCTIONS OF A TEAM
TheAdvantage
Patrick Lencioni—The Advantage
La
Real-World Testimonials About the Advantage of Organizational Health
“Lencioni’s organizational health principles and practices allowed our organization to tap into its intellectual capital and talent like never before. We are seeing organizational transformation right before our eyes.”—Steve Burr, senior vice president, Carolinas HealthCare System
“When I first told my team that we were going to work on organiza-tional health, everybody rolled their eyes and thought it was going to be touchy-feely. They quickly realized it wasn’t. As a result of imple-menting Lencioni’s program, we now know exactly who we are, what we do, why we do it, and who can be successful in our company. Our culture and bottom line have both been transformed.”—Clinton Anderson, CEO, Downunder Horsemanship
“After two years of work around organizational health, we had our best year ever in the midst of the most challenging time our market has ever faced. We can’t imagine having the success we did had we not adopted this approach.”—Peter Levangie, president, Bay State Milling
“Our work around organizational health helped us recognize our state of crisis and found it wasn’t due to market conditions; rather, it was because we were broken as a team and on a trajectory for failure as a business. Taking on organizational health as a priority has been nothing short of transformational.”—Matt Danilowicz, president and managing director, Clear-Com
“The work we have done around organizational health saved us. It is the reason we are in the position we are today.”—Jeff Sackrison, president, Chowan Hospital
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—Steve Burr, senior vice president, Carolinas HealthCare System
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—Steve Burr, senior vice president, Carolinas HealthCare System
“When I first told my team that we were going to work on organiza-
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tional health, everybody rolled their eyes and thought it was going to
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tional health, everybody rolled their eyes and thought it was going to be touchy-feely. They quickly realized it wasn’t. As a result of imple-
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be touchy-feely. They quickly realized it wasn’t. As a result of imple-menting Lencioni’s program, we now know exactly who we are, what
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menting Lencioni’s program, we now know exactly who we are, what we do, why we do it, and who can be successful in our company. Our
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we do, why we do it, and who can be successful in our company. Our culture and bottom line have both been transformed.”
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culture and bottom line have both been transformed.”—Clinton Anderson, CEO, Downunder Horsemanship
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—Clinton Anderson, CEO, Downunder Horsemanship
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“After two years of work around organizational health, we had our best
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“After two years of work around organizational health, we had our best year ever in the midst of the most challenging time our market has ever
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year ever in the midst of the most challenging time our market has ever faced. We can’t imagine having the success we did had we not adopted
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faced. We can’t imagine having the success we did had we not adopted this approach.”
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this approach.”
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—Peter Levangie, president, Bay State Milling
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—Peter Levangie, president, Bay State Milling
“Our work around organizational health helped us recognize our state COPYRIGHTED M
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“Our work around organizational health helped us recognize our state NOT FOR R
ESALEbe touchy-feely. They quickly realized it wasn’t. As a result of imple-
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be touchy-feely. They quickly realized it wasn’t. As a result of imple-menting Lencioni’s program, we now know exactly who we are, what
NOT FOR RESALEmenting Lencioni’s program, we now know exactly who we are, what
we do, why we do it, and who can be successful in our company. Our
NOT FOR RESALEwe do, why we do it, and who can be successful in our company. Our
culture and bottom line have both been transformed.”
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culture and bottom line have both been transformed.”—Clinton Anderson, CEO, Downunder Horsemanship
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—Clinton Anderson, CEO, Downunder Horsemanship
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“After two years of work around organizational health, we had our best
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“After two years of work around organizational health, we had our best year ever in the midst of the most challenging time our market has ever
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year ever in the midst of the most challenging time our market has ever faced. We can’t imagine having the success we did had we not adopted
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faced. We can’t imagine having the success we did had we not adopted
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—Peter Levangie, president, Bay State MillingNOT FOR RESALE
—Peter Levangie, president, Bay State Milling
Patrick Lencioni—The Advantage
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“Our consistent focus on organizational health continues to provide us with a real competitive advantage. If the world had discovered Patrick Lencioni sooner, there would be fewer complex leadership and manage-ment cult theories, and more effective leaders.”—Gordon Samson, managing director, Williams Lea
“We have learned that in order for us to be successful at work, literally saving lives, we need to be healthy. Working through the organizational health material has helped us clarify who we are, what we do, and what kind of behaviors we expect from people. This work has allowed us to minimize organizational politics and has profoundly impacted our ability to carry out our mission.”—Elaine Berg, former president and CEO, New York Organ Donor
Network
“Our company has grown over 50 percent during the last three years of economic turmoil. It started with the game-changing work of Patrick Lencioni and our focus on organizational health. I spent my academic and professional career focused on ‘smart,’ with little attention to ‘healthy.’ We were out of balance; now we are not. The results speak for themselves.”—Richard M. Heard, president, Insight Investments
“We have made Lencioni’s methodology core to our long-term strategic roadmap. The results have been nothing short of fantastic. Employee satisfaction, communication, cooperation, and true teamwork have all improved dramatically—ensuring our spot on Inc. magazine’s list of fastest growing companies for the sixth year in a row.”—Smith Yewell, CEO, Welocalize
“The principles of organizational health have deeply impacted our company and continue to serve as a driving force for us as we grow and
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saving lives, we need to be healthy. Working through the organizational
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saving lives, we need to be healthy. Working through the organizational health material has helped us clarify who we are, what we do, and what
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kind of behaviors we expect from people. This work has allowed us to
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kind of behaviors we expect from people. This work has allowed us to minimize organizational politics and has profoundly impacted our
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minimize organizational politics and has profoundly impacted our
—Elaine Berg, former president and CEO, New York Organ Donor
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—Elaine Berg, former president and CEO, New York Organ Donor
“Our company has grown over 50 percent during the last three years
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“Our company has grown over 50 percent during the last three years of economic turmoil. It started with the game-changing work of Patrick
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of economic turmoil. It started with the game-changing work of Patrick Lencioni and our focus on organizational health. I spent my academic
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Lencioni and our focus on organizational health. I spent my academic
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and professional career focused on ‘smart,’ with little attention to
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and professional career focused on ‘smart,’ with little attention to ‘healthy.’ We were out of balance; now we are not. The results speak
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‘healthy.’ We were out of balance; now we are not. The results speak for themselves.”
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for themselves.”—Richard M. Heard, president, Insight InvestmentsCOPYRIG
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—Richard M. Heard, president, Insight InvestmentsNOT FOR RESALE—Elaine Berg, former president and CEO, New York Organ Donor
NOT FOR RESALE—Elaine Berg, former president and CEO, New York Organ Donor
“Our company has grown over 50 percent during the last three years
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“Our company has grown over 50 percent during the last three years of economic turmoil. It started with the game-changing work of Patrick
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of economic turmoil. It started with the game-changing work of Patrick Lencioni and our focus on organizational health. I spent my academic
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Lencioni and our focus on organizational health. I spent my academic
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and professional career focused on ‘smart,’ with little attention to
NOT FOR RESALE
and professional career focused on ‘smart,’ with little attention to ‘healthy.’ We were out of balance; now we are not. The results speak
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‘healthy.’ We were out of balance; now we are not. The results speak
—Richard M. Heard, president, Insight InvestmentsNOT FOR RESALE
—Richard M. Heard, president, Insight Investments
Patrick Lencioni—The Advantage
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develop. The organizational clarity piece prompted us to become aligned and realize that we needed to make fundamental shifts in many aspects of our business. With determination and consistency, we exceeded all our goals.”—Steven C. Cooper, president and CEO, TrueBlue
“Our work around organizational health is literally giving kids the opportunity to go to college. We finally have the team, the culture, and the systems in place to work through the inevitable challenges we must overcome to achieve our goals.”—Tom Torkelson, founder and CEO, IDEA Public Schools
“By using the organizational health model, we have created an extraor-dinary and productive work environment. The design and construction industry has taken note, and we have had many outsiders ask what is so special about our approach.”—Jay Leopold, regional manager, DPR Construction
“By applying the tenets of organizational health, we have moved farther forward in the last eighteen months than we had the previous four years. Many of the employees had legacy issues and didn’t think we could actually change. We have proved that we can and the group is enjoying the benefits of being part of a high-performing team.”—Lynn Sasser, executive leader, Baptist State Convention of North
Carolina
“As a leader in our field, we were suffering from acute growing pains with no end in sight. Since adopting organizational health as the core of everything we do, our business is back on track with renewed energy and momentum. Our staff, our clients, our families, and our bottom line have reaped the benefits of making organizational health a priority.”—Ken Allman, founder and CEO, PracticeLink.com
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opportunity to go to college. We finally have the team, the culture, and
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opportunity to go to college. We finally have the team, the culture, and the systems in place to work through the inevitable challenges we must
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—Tom Torkelson, founder and CEO, IDEA Public Schools
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—Tom Torkelson, founder and CEO, IDEA Public Schools
“By using the organizational health model, we have created an extraor-
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“By using the organizational health model, we have created an extraor-dinary and productive work environment. The design and construction
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dinary and productive work environment. The design and construction industry has taken note, and we have had many outsiders ask what is
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industry has taken note, and we have had many outsiders ask what is so special about our approach.”
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so special about our approach.”—Jay Leopold, regional manager, DPR Construction
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—Jay Leopold, regional manager, DPR Construction
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“By applying the tenets of organizational health, we have moved farther
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“By applying the tenets of organizational health, we have moved farther forward in the last eighteen months than we had the previous four
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forward in the last eighteen months than we had the previous four years. Many of the employees had legacy issues and didn’t think we
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years. Many of the employees had legacy issues and didn’t think we could actually change. We have proved that we can and the group is COPYRIG
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could actually change. We have proved that we can and the group is enjoying the benefits of being part of a high-performing team.”COPYRIG
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enjoying the benefits of being part of a high-performing team.”NOT FOR R
ESALE“By using the organizational health model, we have created an extraor-
NOT FOR RESALE“By using the organizational health model, we have created an extraor-
dinary and productive work environment. The design and construction
NOT FOR RESALEdinary and productive work environment. The design and construction
industry has taken note, and we have had many outsiders ask what is
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industry has taken note, and we have had many outsiders ask what is
—Jay Leopold, regional manager, DPR Construction
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—Jay Leopold, regional manager, DPR Construction
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“By applying the tenets of organizational health, we have moved farther
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“By applying the tenets of organizational health, we have moved farther forward in the last eighteen months than we had the previous four
NOT FOR RESALE
forward in the last eighteen months than we had the previous four years. Many of the employees had legacy issues and didn’t think we NOT FOR R
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years. Many of the employees had legacy issues and didn’t think we could actually change. We have proved that we can and the group is NOT FOR R
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could actually change. We have proved that we can and the group is
Patrick Lencioni—The Advantage
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“Our organization was historically at war. We had a strong business model, but we needed something more foundational. We needed to cut past the history and build a more cohesive leadership team that pro-vided clarity to the entire organization; we needed to build a healthier organization. It has been a journey, but the people in our multifaceted company are now working together instead of against each other.”—Robert R. Auray, vice chairman, Reverse Logistics and Remarketing,
GENCO ATC
“By applying Lencioni’s principles, our organization’s performance has dramatically improved. We are nimbler, more efficient, more cohesive, and able to focus on important challenges rather than the day-to-day minutiae that were dragging us down. This new approach to work is energizing, and more fun to boot.”—Bill Colleran, CEO, Impinj
“The concept of organizational health has enabled our management team to drive healthy behaviors throughout our company, which has supported our growth over the last eighteen months.”—Colin Guppy, managing director, HMD Pumps
“We have always considered ourselves to be a smart company and have never given our health much thought. We recently shifted our approach and have seen a great response from employees and customers alike.”—Tom Sloane, vice president sales, Export Development Canada
“As a group of highly-educated, motivated, and skeptical individuals, it only took about five minutes for Lencioni’s principles to capture our attention and subsequently take us on an important journey. We are now a healthier unit, ready to tackle the major issues facing our busi-ness. This new approach to work is now a strategic advantage.”—Alfred Foglio, managing director, GI Partners
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“By applying Lencioni’s principles, our organization’s performance has
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“By applying Lencioni’s principles, our organization’s performance has dramatically improved. We are nimbler, more efficient, more cohesive,
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dramatically improved. We are nimbler, more efficient, more cohesive, and able to focus on important challenges rather than the day-to-day
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and able to focus on important challenges rather than the day-to-day minutiae that were dragging us down. This new approach to work is
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minutiae that were dragging us down. This new approach to work is
“The concept of organizational health has enabled our management
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“The concept of organizational health has enabled our management team to drive healthy behaviors throughout our company, which has
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team to drive healthy behaviors throughout our company, which has supported our growth over the last eighteen months.”
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supported our growth over the last eighteen months.”—Colin Guppy, managing director, HMD Pumps
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—Colin Guppy, managing director, HMD Pumps
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“We have always considered ourselves to be a smart company and have COPYRIGHTED M
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“We have always considered ourselves to be a smart company and have never given our health much thought. We recently shifted our approach COPYRIG
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never given our health much thought. We recently shifted our approach NOT FOR R
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and able to focus on important challenges rather than the day-to-day minutiae that were dragging us down. This new approach to work is
NOT FOR RESALEminutiae that were dragging us down. This new approach to work is
“The concept of organizational health has enabled our management
NOT FOR RESALE
“The concept of organizational health has enabled our management team to drive healthy behaviors throughout our company, which has
NOT FOR RESALE
team to drive healthy behaviors throughout our company, which has supported our growth over the last eighteen months.”
NOT FOR RESALE
supported our growth over the last eighteen months.”—Colin Guppy, managing director, HMD Pumps
NOT FOR RESALE
—Colin Guppy, managing director, HMD Pumps
“We have always considered ourselves to be a smart company and have NOT FOR RESALE
“We have always considered ourselves to be a smart company and have
Patrick Lencioni—The Advantage
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“Pat’s work around organizational health has been truly instrumental for our company’s success. It is the foundational underpinning of our new Leadership Institute.”—Greg Serrao, CEO, American Dental Partners
“Our executive team had plateaued and found itself unprepared to meet the fast pace of change ahead. Through the adoption of Lencioni’s model for organizational health, the executive team experienced greater cohesion and collaboration which, in turn, flowed down and impacted the entire organization. In fact, an outside rating group declared that our organization had undergone a culture change that would position us for continued success in the future.”—Ricky D. Napper, CEO, Magnolia Regional Health Center
“Lencioni’s teamwork and organizational health concepts have focused our entire organization around our mission, allowing us to achieve superior results. All organizations can benefit from these principles.”—David C. Haley, president, HBK Capital Management
“Organizational health is the cornerstone of our culture and provides a blueprint for our company’s everyday work environment. We have made critical business decisions—even closed stores—in order to main-tain our health. In the last couple of years, we have increased our cash flow, strengthened our team, and set our family of Harley-Davidson stores apart from others.”—Scott Fischer, owner and CEO, Scott Fischer Enterprises
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model for organizational health, the executive team experienced greater
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model for organizational health, the executive team experienced greater cohesion and collaboration which, in turn, flowed down and impacted
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the entire organization. In fact, an outside rating group declared that
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the entire organization. In fact, an outside rating group declared that our organization had undergone a culture change that would position
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our organization had undergone a culture change that would position
—Ricky D. Napper, CEO, Magnolia Regional Health Center
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—Ricky D. Napper, CEO, Magnolia Regional Health Center
“Lencioni’s teamwork and organizational health concepts have focused
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“Lencioni’s teamwork and organizational health concepts have focused our entire organization around our mission, allowing us to achieve
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our entire organization around our mission, allowing us to achieve superior results. All organizations can benefit from these principles.”
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superior results. All organizations can benefit from these principles.”
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—David C. Haley, president, HBK Capital Management
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—David C. Haley, president, HBK Capital Management
“Organizational health is the cornerstone of our culture and provides
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“Organizational health is the cornerstone of our culture and provides a blueprint for our company’s everyday work environment. We have
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a blueprint for our company’s everyday work environment. We have made critical business decisions—even closed stores—in order to main-COPYRIG
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made critical business decisions—even closed stores—in order to main-tain our health. In the last couple of years, we have increased our cash COPYRIG
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tain our health. In the last couple of years, we have increased our cash NOT FOR R
ESALE—Ricky D. Napper, CEO, Magnolia Regional Health Center
NOT FOR RESALE—Ricky D. Napper, CEO, Magnolia Regional Health Center
“Lencioni’s teamwork and organizational health concepts have focused
NOT FOR RESALE
“Lencioni’s teamwork and organizational health concepts have focused our entire organization around our mission, allowing us to achieve
NOT FOR RESALE
our entire organization around our mission, allowing us to achieve superior results. All organizations can benefit from these principles.”
NOT FOR RESALE
superior results. All organizations can benefit from these principles.”
NOT FOR RESALE
—David C. Haley, president, HBK Capital Management
NOT FOR RESALE
—David C. Haley, president, HBK Capital Management
“Organizational health is the cornerstone of our culture and provides
NOT FOR RESALE
“Organizational health is the cornerstone of our culture and provides a blueprint for our company’s everyday work environment. We have NOT FOR R
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a blueprint for our company’s everyday work environment. We have made critical business decisions—even closed stores—in order to main-NOT FOR R
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made critical business decisions—even closed stores—in order to main-
Patrick Lencioni—The Advantage
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Also by Patrick Lencioni
Leadership Fables
The Five Temptations of a CEOThe Four Obsessions of an Extraordinary ExecutiveThe Five Dysfunctions of a TeamDeath by MeetingSilos, Politics, and Turf WarsThe Three Signs of a Miserable JobThe Three Big Questions for a Frantic FamilyGetting Naked
Field Guide
Overcoming the Five Dysfunctions of a Team
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The Three Big Questions for a Frantic Family
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The Three Big Questions for a Frantic Family
Overcoming the Five Dysfunctions of a Team
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Overcoming the Five Dysfunctions of a Team
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Overcoming the Five Dysfunctions of a Team
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Overcoming the Five Dysfunctions of a Team
Patrick Lencioni—The Advantage
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The Advantage
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NOT FOR RESALE
Patrick Lencioni—The Advantage
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NOT FOR RESALE
Patrick Lencioni—The Advantage
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The Advantage
Why Organizational Health Trumps Everything Else in Business
PATRICK LENCIONI
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Trumps Everything Else in Business
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Patrick Lencioni—The Advantage
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Copyright © 2012 by Patrick Lencioni. All rights reserved.
Published by Jossey-BassA Wiley ImprintOne Montgomery Street, Suite 1200, San Francisco, CA 94104-4594—www.josseybass.com
No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, 978-750-8400, fax 978-646-8600, or on the Web at www.copyright.com. Requests to the publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, 201-748-6011, fax 201-748-6008, or online at www.wiley.com/go/permissions.
Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages. Readers should be aware that Internet Web sites offered as citations and/or sources for further information may have changed or disappeared between the time this was written and when it is read.
Jossey-Bass books and products are available through most bookstores. To contact Jossey-Bass directly call our Customer Care Department within the U.S. at 800-956-7739, outside the U.S. at 317-572-3986, or fax 317-572-4002.
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Library of Congress Cataloging-in-Publication DataLencioni, Patrick, 1965–
The advantage : why organizational health trumps everything else in business / Patrick Lencioni. – 1st ed. p. cm.
Includes index.ISBN 978-0-470-94152-2 (cloth), 978-1-118-14786-3 (ebk), 978-1-118-26603-8 (ebk),
978-1-118-26610-6 (ebk)1. Organizational effectiveness. 2. Organization. 3. Success in
business. 4. Well-being. I. Title. HD58.9.L465 2012658.4–dc23
2011050953
Printed in the United States of Americafirst edition
HB Printing 10 9 8 7 6 5 4 3 2 1
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the publisher for permission should be addressed to the Permissions Department, John Wiley & Sons,
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the publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, 201-748-6011, fax 201-748-6008, or online at www.
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ATERIAL Inc., 111 River Street, Hoboken, NJ 07030, 201-748-6011, fax 201-748-6008, or online at www.
Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts
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Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or
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in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of
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completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales
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merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be
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representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the
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suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including
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publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages. Readers should be aware that
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but not limited to special, incidental, consequential, or other damages. Readers should be aware that Internet Web sites offered as citations and/or sources for further information may have changed or
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Internet Web sites offered as citations and/or sources for further information may have changed or disappeared between the time this was written and when it is read.
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disappeared between the time this was written and when it is read.
Jossey-Bass books and products are available through most bookstores. To contact Jossey-Bass directly
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Jossey-Bass books and products are available through most bookstores. To contact Jossey-Bass directly call our Customer Care Department within the U.S. at 800-956-7739, outside the U.S. at
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call our Customer Care Department within the U.S. at 800-956-7739, outside the U.S. at 317-572-3986, or fax 317-572-4002.
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Jossey-Bass books and products are available through most bookstores. To contact Jossey-Bass directly call our Customer Care Department within the U.S. at 800-956-7739, outside the U.S. at
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call our Customer Care Department within the U.S. at 800-956-7739, outside the U.S. at
Wiley publishes in a variety of print and electronic formats and by print-on-demand. Some material
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Wiley publishes in a variety of print and electronic formats and by print-on-demand. Some material
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included with standard print versions of this book may not be included in e-books or in print-on-
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purchased, you may download this material at http://booksupport.wiley.com. For more information about Wiley products, visit www.wiley.com.NOT FOR R
ESALE
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Patrick Lencioni—The Advantage
La
C o n t e n t s
Introduction xv
Thecasefororganizationalhealth 1
Thefourdisciplinesmodel 15
discipline1:BuildacohesiveLeadershipTeam 19
discipline2:createclarity 73
discipline3:overcommunicateclarity 141
discipline4:Reinforceclarity 153
ThecentralityofGreatmeetings 173
SeizingtheAdvantage 189
Checklist for Organizational Health 195
More Resources 199
Notes 201
Acknowledgments 203
About the Author 205
Index 207
xi
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Patrick Lencioni—The Advantage
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For my dad, Richard Lencioni (1936–2008), who gave me more than I deserved.
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who gave me more than I deserved.
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This book is the result of an unpredictable journey, one that began when I was just a kid, probably eight or nine years old.
My dad was a salesman who was extremely good at what he did, but I remember that he’d often come home from work frustrated, complaining about how his company was being managed. I didn’t know what management was, but I was pretty sure my dad shouldn’t feel frustrated after putting in ten hours at work.
A few years later I started working, as a busboy in high school and a bank teller in college, and I had my first real glimpse of management. Although I still didn’t understand everything that it entailed, it was clear to me that some of the things that took place in the organization where I worked made sense, that others didn’t, and that it all had a very real impact on my colleagues and the customers we served.
After graduating from college, I went to work for a management consulting firm and thought I was finally going to figure out this management thing. Instead, I found myself doing data collection, data entry, data analysis, and a variety of other things that had to do with data.
To be fair, the firm taught me quite a bit about strategy and finance and marketing, but not much about organizations and how they should be run as a whole. But somehow I became convinced that the biggest problem our clients faced, and their biggest opportunity for competi-tive advantage, was not really about strategy or finance or marketing;
I n t r o d u c t I o n
xv
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This book is the result of an unpredictable journey, one that began
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This book is the result of an unpredictable journey, one that began when I was just a kid, probably eight or nine years old.
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when I was just a kid, probably eight or nine years old.My dad was a salesman who was extremely good at what he did,
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My dad was a salesman who was extremely good at what he did, but I remember that he’d often come home from work frustrated,
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but I remember that he’d often come home from work frustrated, complaining about how his company was being managed. I didn’t know
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complaining about how his company was being managed. I didn’t know what management was, but I was pretty sure my dad shouldn’t feel
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what management was, but I was pretty sure my dad shouldn’t feel frustrated after putting in ten hours at work.
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frustrated after putting in ten hours at work.A few years later I started working, as a busboy in high school and
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A few years later I started working, as a busboy in high school and
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a bank teller in college, and I had my first real glimpse of management.
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a bank teller in college, and I had my first real glimpse of management. Although I still didn’t understand everything that it entailed, it was
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Although I still didn’t understand everything that it entailed, it was clear to me that some of the things that took place in the organization
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clear to me that some of the things that took place in the organization where I worked made sense, that others didn’t, and that it all had a very
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where I worked made sense, that others didn’t, and that it all had a very
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real impact on my colleagues and the customers we served.COPYRIGHTED M
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real impact on my colleagues and the customers we served.After graduating from college, I went to work for a management COPYRIG
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After graduating from college, I went to work for a management NOT FOR R
ESALEMy dad was a salesman who was extremely good at what he did,
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My dad was a salesman who was extremely good at what he did, but I remember that he’d often come home from work frustrated,
NOT FOR RESALEbut I remember that he’d often come home from work frustrated,
complaining about how his company was being managed. I didn’t know
NOT FOR RESALEcomplaining about how his company was being managed. I didn’t know
what management was, but I was pretty sure my dad shouldn’t feel
NOT FOR RESALE
what management was, but I was pretty sure my dad shouldn’t feel frustrated after putting in ten hours at work.
NOT FOR RESALE
frustrated after putting in ten hours at work.A few years later I started working, as a busboy in high school and
NOT FOR RESALE
A few years later I started working, as a busboy in high school and
NOT FOR RESALE
a bank teller in college, and I had my first real glimpse of management.
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a bank teller in college, and I had my first real glimpse of management. Although I still didn’t understand everything that it entailed, it was
NOT FOR RESALE
Although I still didn’t understand everything that it entailed, it was clear to me that some of the things that took place in the organization
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clear to me that some of the things that took place in the organization where I worked made sense, that others didn’t, and that it all had a very NOT FOR R
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where I worked made sense, that others didn’t, and that it all had a very real impact on my colleagues and the customers we served.NOT FOR R
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real impact on my colleagues and the customers we served.
Patrick Lencioni—The Advantage
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it was something a little less tangible—something that seemed to revolve around the way they managed their organizations.
When I suggested that we look into that, my superiors politely informed me that this was not something our firm did for a living, which was ironic because we were a management consulting firm. But I had been hooked and decided I needed to change the focus of my career.
I spent the next few years working in corporate America in the world of organizational behavior or development or psychology—whatever you want to call it. I found it interesting, for sure, but ulti-mately too soft, fragmented, and academic. This bothered me because I knew that there was something that needed to be more widely appre-ciated and understood. But something was missing. Context. Integra-tion. Practicality.
And so a group of colleagues and I started our own firm, and I began consulting and speaking about a practical approach to improving organizations. I have to admit that we were a bit surprised by just how quickly and enthusiastically clients responded to our approach. There was definitely a need out there. Over time it became clear that scores of people working in all kinds of organizations, at every level, were experiencing the same pain that my dad had, and they were hungry for a better way.
So I began writing books that took a practical approach to address-ing various issues relating to organizational dysfunction—teamwork, meetings, alignment, employee engagement—while my firm’s consult-ing focused on the integration of all those topics.
Demand for those books, and for our integrated approach to implementing the concepts in them, far exceeded our expectations again, and I started to become convinced that we had found that missing something—that advantage—I had been searching for through-out my career. Based on the feedback and encouragement of readers and clients, I finally decided that at some point in the future, I should
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I spent the next few years working in corporate America in the
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I spent the next few years working in corporate America in the world of organizational behavior or development or psychology—
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whatever you want to call it. I found it interesting, for sure, but ulti-
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whatever you want to call it. I found it interesting, for sure, but ulti-mately too soft, fragmented, and academic. This bothered me because
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mately too soft, fragmented, and academic. This bothered me because I knew that there was something that needed to be more widely appre-
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I knew that there was something that needed to be more widely appre-ciated and understood. But something was missing. Context. Integra-
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ciated and understood. But something was missing. Context. Integra-
And so a group of colleagues and I started our own firm, and I
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And so a group of colleagues and I started our own firm, and I began consulting and speaking about a practical approach to improving
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began consulting and speaking about a practical approach to improving
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organizations. I have to admit that we were a bit surprised by just how
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organizations. I have to admit that we were a bit surprised by just how quickly and enthusiastically clients responded to our approach. There
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quickly and enthusiastically clients responded to our approach. There was definitely a need out there. Over time it became clear that scores
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was definitely a need out there. Over time it became clear that scores of people working in all kinds of organizations, at every level, were
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of people working in all kinds of organizations, at every level, were
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experiencing the same pain that my dad had, and they were hungry for
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experiencing the same pain that my dad had, and they were hungry for a better way.COPYRIG
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a better way.So I began writing books that took a practical approach to address-COPYRIG
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So I began writing books that took a practical approach to address-NOT FOR R
ESALEI knew that there was something that needed to be more widely appre-
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I knew that there was something that needed to be more widely appre-ciated and understood. But something was missing. Context. Integra-
NOT FOR RESALEciated and understood. But something was missing. Context. Integra-
And so a group of colleagues and I started our own firm, and I
NOT FOR RESALE
And so a group of colleagues and I started our own firm, and I began consulting and speaking about a practical approach to improving
NOT FOR RESALE
began consulting and speaking about a practical approach to improving
NOT FOR RESALE
organizations. I have to admit that we were a bit surprised by just how
NOT FOR RESALE
organizations. I have to admit that we were a bit surprised by just how quickly and enthusiastically clients responded to our approach. There
NOT FOR RESALE
quickly and enthusiastically clients responded to our approach. There was definitely a need out there. Over time it became clear that scores
NOT FOR RESALE
was definitely a need out there. Over time it became clear that scores of people working in all kinds of organizations, at every level, were
NOT FOR RESALE
of people working in all kinds of organizations, at every level, were
NOT FOR RESALE
experiencing the same pain that my dad had, and they were hungry for NOT FOR RESALE
experiencing the same pain that my dad had, and they were hungry for
Patrick Lencioni—The Advantage
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bring all of the ideas from my books and consulting practice together in one place. That time is now.
Unlike my other books, this one is not a fable but rather a com-prehensive, practical guide. I’ve tried to make it as engaging and fun to read as possible using real-world examples and actual client stories to illustrate my ideas. It’s worth mentioning that many of the individual concepts I cover here have been introduced or touched on in one of my eight business fables—most notably, The Four Obsessions of an Extraordinary Executive; The Five Dysfunctions of a Team; Silos, Politics, and Turf Wars; and Death by Meeting—where I use fictional characters and plot situations to bring my theories to life.1 For those who would benefit from a narrative approach to a specific topic, I make reference to those books whenever possible.
Because I’m not a quantitative researcher, the conclusions I draw here are not based on reams of statistics or finely crunched data, but rather on my observations as a consultant over the past twenty years. But as Jim Collins, the research giant, once told me, qualitative field research is just as reliable as the quantitative kind, as long as clients and readers attest to its validity. And I’m happy to say that based on my experience with executives and their organizations, the principles in this book have proven to be as reliable as they are simple.
I hope you enjoy reading The Advantage and, more important, that it allows you to transform your organization, whether it is a corpora-tion, a department within that corporation, a small entrepreneurial venture, a school, or a church. It’s my goal that one day in the future, the simple principles contained here will be common practice, and that salespeople, busboys, bank tellers, CEOs, and everyone else who works in an organization will be more productive, successful, and fulfilled as a result.
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The Four Obsessions of an
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The Four Obsessions of an Extraordinary Executive; The Five Dysfunctions of a Team; Silos, Politics,
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—where I use fictional characters
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—where I use fictional characters and plot situations to bring my theories to life.
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and plot situations to bring my theories to life.1
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1 For those who would
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For those who would benefit from a narrative approach to a specific topic, I make reference
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benefit from a narrative approach to a specific topic, I make reference
Because I’m not a quantitative researcher, the conclusions I draw
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Because I’m not a quantitative researcher, the conclusions I draw here are not based on reams of statistics or finely crunched data, but
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here are not based on reams of statistics or finely crunched data, but rather on my observations as a consultant over the past twenty years.
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rather on my observations as a consultant over the past twenty years. But as Jim Collins, the research giant, once told me, qualitative field
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But as Jim Collins, the research giant, once told me, qualitative field research is just as reliable as the quantitative kind, as long as clients and
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research is just as reliable as the quantitative kind, as long as clients and readers attest to its validity. And I’m happy to say that based on my
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readers attest to its validity. And I’m happy to say that based on my experience with executives and their organizations, the principles in this
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experience with executives and their organizations, the principles in this book have proven to be as reliable as they are simple.
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book have proven to be as reliable as they are simple.I hope you enjoy reading COPYRIG
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I hope you enjoy reading it allows you to transform your organization, whether it is a corpora-COPYRIG
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it allows you to transform your organization, whether it is a corpora-NOT FOR R
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benefit from a narrative approach to a specific topic, I make reference
Because I’m not a quantitative researcher, the conclusions I draw
NOT FOR RESALEBecause I’m not a quantitative researcher, the conclusions I draw
here are not based on reams of statistics or finely crunched data, but
NOT FOR RESALE
here are not based on reams of statistics or finely crunched data, but rather on my observations as a consultant over the past twenty years.
NOT FOR RESALE
rather on my observations as a consultant over the past twenty years. But as Jim Collins, the research giant, once told me, qualitative field
NOT FOR RESALE
But as Jim Collins, the research giant, once told me, qualitative field research is just as reliable as the quantitative kind, as long as clients and
NOT FOR RESALE
research is just as reliable as the quantitative kind, as long as clients and readers attest to its validity. And I’m happy to say that based on my
NOT FOR RESALE
readers attest to its validity. And I’m happy to say that based on my experience with executives and their organizations, the principles in this
NOT FOR RESALE
experience with executives and their organizations, the principles in this book have proven to be as reliable as they are simple.NOT FOR R
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book have proven to be as reliable as they are simple.I hope you enjoy reading NOT FOR R
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I hope you enjoy reading
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The Advantage
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1
The Case for Organizational Health
The single greatest advantage any company can achieve is organiza-tional health. Yet it is ignored by most leaders even though it is simple,
free, and available to anyone who wants it.That is the premise of this book—not to mention my career—and
I am utterly convinced that it is true. If it sounds absurd, it should. After all, why in the world would intelligent human beings ignore something that is powerful and readily accessible?
That question was finally answered for me on July 28, 2010.
Stooping to greatneSS
I was attending a client’s leadership conference, sitting next to the CEO. This wasn’t just any company. It was, and still is, one of the healthiest organizations I have ever known and one of the most successful American enterprises of the past fifty years. In an industry plagued with
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Organizational
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Organizational Health
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Health
he single greatest advantage any company can achieve is organiza-
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he single greatest advantage any company can achieve is organiza-tional health. Yet it is ignored by most leaders even though it is simple,
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tional health. Yet it is ignored by most leaders even though it is simple, free, and available to anyone who wants it.
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free, and available to anyone who wants it.That is the premise of this book—not to mention my career—and
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That is the premise of this book—not to mention my career—and I am utterly convinced that it is true. If it sounds absurd, it should. COPYRIG
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I am utterly convinced that it is true. If it sounds absurd, it should. After all, why in the world would intelligent human beings ignore COPYRIG
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After all, why in the world would intelligent human beings ignore NOT FOR R
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he single greatest advantage any company can achieve is organiza-
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he single greatest advantage any company can achieve is organiza-tional health. Yet it is ignored by most leaders even though it is simple,
NOT FOR RESALE
tional health. Yet it is ignored by most leaders even though it is simple, free, and available to anyone who wants it.
NOT FOR RESALE
free, and available to anyone who wants it.That is the premise of this book—not to mention my career—and NOT FOR R
ESALE
That is the premise of this book—not to mention my career—and I am utterly convinced that it is true. If it sounds absurd, it should. NOT FOR R
ESALE
I am utterly convinced that it is true. If it sounds absurd, it should.
Patrick Lencioni—The Advantage
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The Advantage
2
financial woes, customer fury, and labor strife, this amazing company has a long history of growth and economic success, not to mention fanatical customer loyalty. Moreover, its employees love their jobs, their customers, and their leaders. When compared to others in the same industry, what this company has accomplished seems almost baffling.
As I sat there at the conference listening to one presentation after another highlighting the remarkable and unorthodox activities that have made this organization so healthy, I leaned over and quietly asked the CEO a semirhetorical question: “Why in the world don’t your competitors do any of this?”
After a few seconds, he whispered, almost sadly, “You know, I honestly believe they think it’s beneath them.”
And there it was.
the three BiaSeS
In spite of its undeniable power, so many leaders struggle to embrace organizational health (which I’ll be defining shortly) because they quietly believe they are too sophisticated, too busy, or too analytical to bother with it. In other words, they think it’s beneath them.
And in some ways, it’s hard to blame them. After years of off-site meetings filled with ropes courses and trust-falling exercises, even the most open-minded executives have come to be suspicious of anything that looks or sounds touchy-feely. Combine that with the notion that corporate culture has been reduced to surface-level artifacts like funky office furniture, employee yoga classes, and bring-your-dog-to-work policies, and it’s no wonder that so many leaders have become cynical, even condescending, toward most things related to organizational development.
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another highlighting the remarkable and unorthodox activities that
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another highlighting the remarkable and unorthodox activities that have made this organization so healthy, I leaned over and quietly asked
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the CEO a semirhetorical question: “Why in the world don’t your
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the CEO a semirhetorical question: “Why in the world don’t your
After a few seconds, he whispered, almost sadly, “You know, I
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After a few seconds, he whispered, almost sadly, “You know, I honestly believe they think it’s beneath them.”
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honestly believe they think it’s beneath them.”
spite of its undeniable power, so many leaders struggle to embrace
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spite of its undeniable power, so many leaders struggle to embrace organizational health (which I’ll be defining shortly) because
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organizational health (which I’ll be defining shortly) because they quietly believe they are too sophisticated, too busy, or too
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they quietly believe they are too sophisticated, too busy, or too
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analytical to bother with it. In other words, they think it’s beneath
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analytical to bother with it. In other words, they think it’s beneath
And in some ways, it’s hard to blame them. After years of off-site COPYRIGHTED M
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And in some ways, it’s hard to blame them. After years of off-site NOT FOR R
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After a few seconds, he whispered, almost sadly, “You know, I
spite of its undeniable power, so many leaders struggle to embrace
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spite of its undeniable power, so many leaders struggle to embrace organizational health (which I’ll be defining shortly) because
NOT FOR RESALE
organizational health (which I’ll be defining shortly) because they quietly believe they are too sophisticated, too busy, or too
NOT FOR RESALE
they quietly believe they are too sophisticated, too busy, or too
NOT FOR RESALE
analytical to bother with it. In other words, they think it’s beneath NOT FOR RESALE
analytical to bother with it. In other words, they think it’s beneath
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The Case for Organizational Health
3
This is a shame because organizational health is different. It’s not at all touchy-feely, and it’s far bigger and more important than mere culture. More than a side dish or a flavor enhancer for the real meat and potatoes of business, it is the very plate on which the meat and potatoes sit.
The health of an organization provides the context for strategy, finance, marketing, technology, and everything else that happens within it, which is why it is the single greatest factor determining an organiza-tion’s success. More than talent. More than knowledge. More than innovation.
But before leaders can tap into the power of organizational health, they must humble themselves enough to overcome the three biases that prevent them from embracing it.
• The Sophistication Bias: Organizational health is so simple and accessible that many leaders have a hard time seeing it as a real opportunity for meaningful advantage. After all, it doesn’t require great intelligence or sophistication, just uncommon levels of discipline, courage, persistence, and common sense. In an age where we have come to believe that differentiation and dramatic improvement can be found only in complexity, it’s hard for well-educated executives to embrace something so simple and straightforward.
• The Adrenaline Bias: Becoming a healthy organization takes a little time. Unfortunately, many of the leaders I’ve worked with suffer from a chronic case of adrenaline addiction, seemingly hooked on the daily rush of activity and firefighting within their organizations. It’s as though they’re afraid to slow down and deal with issues that are critical but don’t seem particularly urgent. As simple as this may seem, it remains a serious obstacle for many dysfunctional organizations led by executives who don’t
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it, which is why it is the single greatest factor determining an organiza-
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it, which is why it is the single greatest factor determining an organiza-tion’s success. More than talent. More than knowledge. More than
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ATERIAL tion’s success. More than talent. More than knowledge. More than
But before leaders can tap into the power of organizational health,
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But before leaders can tap into the power of organizational health, they must humble themselves enough to overcome the three biases that
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they must humble themselves enough to overcome the three biases that
ophistication Bias:
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ophistication Bias: Organizational health is so simple
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Organizational health is so simple and accessible that many leaders have a hard time seeing
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and accessible that many leaders have a hard time seeing it as a real opportunity for meaningful advantage. After all, it
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it as a real opportunity for meaningful advantage. After all, it
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doesn’t require great intelligence or sophistication, just
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doesn’t require great intelligence or sophistication, just uncommon levels of discipline, courage, persistence, and
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uncommon levels of discipline, courage, persistence, and common sense. In an age where we have come to believe
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common sense. In an age where we have come to believe that differentiation and dramatic improvement can be
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that differentiation and dramatic improvement can be
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found only in complexity, it’s hard for well-educated COPYRIGHTED M
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found only in complexity, it’s hard for well-educated executives to embrace something so simple and straightforward.COPYRIG
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executives to embrace something so simple and straightforward.NOT FOR R
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they must humble themselves enough to overcome the three biases that
Organizational health is so simple
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Organizational health is so simple and accessible that many leaders have a hard time seeing
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and accessible that many leaders have a hard time seeing it as a real opportunity for meaningful advantage. After all, it
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it as a real opportunity for meaningful advantage. After all, it
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doesn’t require great intelligence or sophistication, just
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doesn’t require great intelligence or sophistication, just uncommon levels of discipline, courage, persistence, and
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uncommon levels of discipline, courage, persistence, and common sense. In an age where we have come to believe
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common sense. In an age where we have come to believe that differentiation and dramatic improvement can be NOT FOR R
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that differentiation and dramatic improvement can be found only in complexity, it’s hard for well-educated NOT FOR R
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found only in complexity, it’s hard for well-educated
Patrick Lencioni—The Advantage
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The Advantage
4
understand that old race-car drivers’ axiom: you have to slow down in order to go fast.
• The Quantification Bias: The benefits of becoming a healthy organization, as powerful as they are, are difficult to accurately quantify. Organizational health permeates so many aspects of a company that isolating any one variable and measuring its financial impact is almost impossible to do in a precise way. That certainly doesn’t mean the impact isn’t real, tangible, and massive; it just requires a level of conviction and intuition that many overly analytical leaders have a hard time accepting.
Of course, I suppose that even if leaders were able to humble themselves enough to overcome each of these biases, there is yet
another reason that might prevent them from tapping into the power of organi-zational health, and that is what provoked me to write this book: it has never been presented as a simple, integrated, and practical discipline.
I am convinced that once organizational health is properly understood and placed into the right context,
it will surpass all other disciplines in business as the greatest opportu-nity for im provement and competitive advantage. Really.
So what exactly is organizational health?I thought you’d never ask.
Once organizational health is
properly understood and
placed into the right context,
it will surpass all other
disciplines in business as the
greatest opportunity for
improvement and competitive
advantage. Really.
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That certainly doesn’t mean the impact isn’t real, tangible,
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That certainly doesn’t mean the impact isn’t real, tangible, and massive; it just requires a level of conviction and
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intuition that many overly analytical leaders have a hard time
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intuition that many overly analytical leaders have a hard time
Of course, I suppose that even if leaders were able to humble
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Of course, I suppose that even if leaders were able to humble themselves enough to overcome each of these biases, there is yet
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themselves enough to overcome each of these biases, there is yet
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Once organizational health is
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Once organizational health is
properly understood and
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properly understood and
placed into the right context,
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placed into the right context,
it will surpass all other
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it will surpass all other
disciplines in business as the
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disciplines in business as the
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greatest opportunity for COPYRIGHTED M
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greatest opportunity for
improvement and competitive COPYRIGHTED M
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improvement and competitive NOT FOR R
ESALEOf course, I suppose that even if leaders were able to humble
NOT FOR RESALEOf course, I suppose that even if leaders were able to humble
themselves enough to overcome each of these biases, there is yet
NOT FOR RESALEthemselves enough to overcome each of these biases, there is yet
another reason that might
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another reason that might prevent them from tapping
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prevent them from tapping into the power of organi
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into the power of organi
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placed into the right context,
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placed into the right context,
it will surpass all other
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it will surpass all other
disciplines in business as the
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disciplines in business as the
greatest opportunity for NOT FOR RESALE
greatest opportunity for
Patrick Lencioni—The Advantage
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The Case for Organizational Health
5
UnderStanding organizational health
At its core, organizational health is about integrity, but not in the ethical or moral way that integrity is defined so often today. An organization has integrity—is healthy—when it is whole, consistent, and complete, that is, when its management, operations, strategy, and culture fit together and make sense.
If that’s a little too vague for you (it would be for me), think about it this way. Whenever I present organizational health to a prospective client or a roomful of executives, I start by contrasting it with some-thing more familiar to them. I explain that any organization that really wants to maximize its success must come to embody two basic qualities: it must be smart, and it must be healthy.
Smart Versus HealthySmart organizations are good at those classic fundamentals of business—subjects like strategy, marketing, finance, and technology—which I consider to be decision sciences.
When I started my career at the management consulting firm Bain & Company, we did research and analysis to help clients make smarter, better decisions in these areas. No one with any experience in business will tell you that these pursuits are not critical to the success of an organization, nor should they.
But being smart is only half the equation. Yet somehow it occupies almost all the time, energy, and attention of most executives. The other half of the equation, the one that is largely neglected, is about being healthy.
A good way to recognize health is to look for the signs that indicate an organization has it. These include minimal politics and confusion, high degrees of morale and productivity, and very low turnover among good employees.
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ATERIAL it this way. Whenever I present organizational health to a prospective
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client or a roomful of executives, I start by contrasting it with some-
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thing more familiar to them. I explain that any organization that really
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thing more familiar to them. I explain that any organization that really wants to maximize its success must come to embody two basic qualities:
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wants to maximize its success must come to embody two basic qualities: it must be smart, and it must be healthy.
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it must be smart, and it must be healthy.
Smart organizations are good at those classic fundamentals of business—
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Smart organizations are good at those classic fundamentals of business—subjects like strategy, marketing, finance, and technology—which I
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subjects like strategy, marketing, finance, and technology—which I consider to be decision sciences.
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consider to be decision sciences.
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When I started my career at the management consulting firm Bain
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When I started my career at the management consulting firm Bain & Company, we did research and analysis to help clients make smarter,
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& Company, we did research and analysis to help clients make smarter, better decisions in these areas. No one with any experience in business
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better decisions in these areas. No one with any experience in business will tell you that these pursuits are not critical to the success of an
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will tell you that these pursuits are not critical to the success of an
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organization, nor should they.COPYRIGHTED M
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organization, nor should they.NOT FOR RESALE
wants to maximize its success must come to embody two basic qualities:
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wants to maximize its success must come to embody two basic qualities:
Smart organizations are good at those classic fundamentals of business—
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Smart organizations are good at those classic fundamentals of business—subjects like strategy, marketing, finance, and technology—which I
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subjects like strategy, marketing, finance, and technology—which I consider to be decision sciences.
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consider to be decision sciences.
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When I started my career at the management consulting firm Bain
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When I started my career at the management consulting firm Bain & Company, we did research and analysis to help clients make smarter,
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& Company, we did research and analysis to help clients make smarter, better decisions in these areas. No one with any experience in business
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better decisions in these areas. No one with any experience in business will tell you that these pursuits are not critical to the success of an NOT FOR R
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will tell you that these pursuits are not critical to the success of an organization, nor should they.NOT FOR R
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organization, nor should they.
Patrick Lencioni—The Advantage
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The Advantage
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Whenever I list these qualities for leaders, I usually get one of the following reactions, and sometimes both. Often they laugh quietly, in a nervous, almost guilty kind of way. Or they barely sigh, like parents do when they hear about a family where the kids do what they’re told the first time they’re asked. In either case, it’s as though they’re thinking, “Wouldn’t that be nice?” or, “Can you imagine?”
What I find particularly amazing is that none of the leaders I present to, even the most cynical ones, deny that their companies would be transformed if they could achieve the characteristics of a healthy organization. They never dismiss it as being soft or touchy-feely, and they immediately recognize the practical connection between a lack of health and overall performance. So it would be natural to assume that those executives would then march back to their companies and focus a large portion of their time, energy, and attention on making their organizations healthier.
Well, I’ve come to learn that even well-intentioned leaders usually return to work and gravitate right back to the “smart” side of the equation, spending their time tweaking the dials in marketing, strategy, finance, and so forth. Why would they do something so absurd?
• Strategy
Smart Healthy
• Marketing
• Minimal Politics
• Minimal Confusion
• Finance • High Morale
• Technology • High Productivity
• Low Turnover
Two Requirements for Success
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Whenever I list these qualities for leaders, I usually get one of
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Whenever I list these qualities for leaders, I usually get one of the following reactions, and sometimes both. Often they laugh
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the following reactions, and sometimes both. Often they laugh quietly, in a nervous, almost guilty kind of way. Or they barely sigh,
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quietly, in a nervous, almost guilty kind of way. Or they barely sigh, like parents do when they hear about a family where the kids do
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like parents do when they hear about a family where the kids do what they’re told the first time they’re asked. In either case, it’s as
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what they’re told the first time they’re asked. In either case, it’s as though they’re thinking, “Wouldn’t that be nice?” or, “Can you
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though they’re thinking, “Wouldn’t that be nice?” or, “Can you
What I find particularly amazing is that none of the leaders I
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What I find particularly amazing is that none of the leaders I present to, even the most cynical ones, deny that their companies would
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present to, even the most cynical ones, deny that their companies would
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be transformed if they could achieve the characteristics of a healthy
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be transformed if they could achieve the characteristics of a healthy organization. They never dismiss it as being soft or touchy-feely, and
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organization. They never dismiss it as being soft or touchy-feely, and they immediately recognize the practical connection between a lack of COPYRIG
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they immediately recognize the practical connection between a lack of health and overall performance. So it would be natural to assume that COPYRIG
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health and overall performance. So it would be natural to assume that
• Low Turnover
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the following reactions, and sometimes both. Often they laugh
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the following reactions, and sometimes both. Often they laugh quietly, in a nervous, almost guilty kind of way. Or they barely sigh,
NOT FOR RESALEquietly, in a nervous, almost guilty kind of way. Or they barely sigh,
like parents do when they hear about a family where the kids do
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like parents do when they hear about a family where the kids do what they’re told the first time they’re asked. In either case, it’s as
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what they’re told the first time they’re asked. In either case, it’s as though they’re thinking, “Wouldn’t that be nice?” or, “Can you
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though they’re thinking, “Wouldn’t that be nice?” or, “Can you
What I find particularly amazing is that none of the leaders I
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What I find particularly amazing is that none of the leaders I present to, even the most cynical ones, deny that their companies would
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present to, even the most cynical ones, deny that their companies would
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be transformed if they could achieve the characteristics of a healthy
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be transformed if they could achieve the characteristics of a healthy organization. They never dismiss it as being soft or touchy-feely, and NOT FOR R
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organization. They never dismiss it as being soft or touchy-feely, and they immediately recognize the practical connection between a lack of NOT FOR R
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they immediately recognize the practical connection between a lack of
Patrick Lencioni—The Advantage
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The Case for Organizational Health
7
Better LightOne of the best explanations for this strange phenomenon comes from a comedy sketch I saw as a child. I remember it being part of an old episode of I Love Lucy.
Ricky, Lucy’s husband, comes home from work one day to find his wife crawling around the living room on her hands and knees. He asks her what she’s doing.
“I’m looking for my earrings,” Lucy responds.Ricky asks her, “You lost your earrings in the living room?”She shakes her head. “No, I lost them in the bedroom. But the
light out here is much better.”And there it is.Most leaders prefer to look for answers where the light is better,
where they are more comfortable. And the light is certainly better in the measurable, objective, and data-driven world of organizational intelligence (the smart side of the equation) than it is in the messier, more unpredictable world of organizational health.
Studying spreadsheets and Gantt charts and financial statements is relatively safe and predictable, which most executives prefer. That’s how they’ve been trained, and that’s where they’re comfortable. What they usually want to avoid at all costs are subjective conversations that can easily become emotional and awkward. And organizational health is certainly fraught with the potential for subjective and awkward conversations.
That’s why so many leaders, even when they acknowledge the pain that politics and confusion are causing their organizations, continue to spend their time tweaking the dials in more traditional discip lines. Unfortunately, the opportunities for improvement and competitive advantage they find in those areas are incremental and fleeting at best.
That’s right. The advantages to be found in the classic areas of business—finance, marketing, strategy—in spite of all the attention
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She shakes her head. “No, I lost them in the bedroom. But the
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She shakes her head. “No, I lost them in the bedroom. But the
Most leaders prefer to look for answers where the light is better,
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Most leaders prefer to look for answers where the light is better, where they are more comfortable. And the light is certainly better in
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where they are more comfortable. And the light is certainly better in the measurable, objective, and data-driven world of organizational
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the measurable, objective, and data-driven world of organizational intelligence (the smart side of the equation) than it is in the messier,
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intelligence (the smart side of the equation) than it is in the messier, more unpredictable world of organizational health.
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more unpredictable world of organizational health.Studying spreadsheets and Gantt charts and financial statements is
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Studying spreadsheets and Gantt charts and financial statements is
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relatively safe and predictable, which most executives prefer. That’s how
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relatively safe and predictable, which most executives prefer. That’s how they’ve been trained, and that’s where they’re comfortable. What they
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they’ve been trained, and that’s where they’re comfortable. What they usually want to avoid at all costs are subjective conversations that can
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usually want to avoid at all costs are subjective conversations that can easily become emotional and awkward. And organizational health is COPYRIG
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easily become emotional and awkward. And organizational health is certainly fraught with the potential for subjective and awkward COPYRIG
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certainly fraught with the potential for subjective and awkward NOT FOR R
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NOT FOR RESALEMost leaders prefer to look for answers where the light is better,
where they are more comfortable. And the light is certainly better in
NOT FOR RESALEwhere they are more comfortable. And the light is certainly better in
the measurable, objective, and data-driven world of organizational
NOT FOR RESALE
the measurable, objective, and data-driven world of organizational intelligence (the smart side of the equation) than it is in the messier,
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intelligence (the smart side of the equation) than it is in the messier, more unpredictable world of organizational health.
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more unpredictable world of organizational health.Studying spreadsheets and Gantt charts and financial statements is
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Studying spreadsheets and Gantt charts and financial statements is
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relatively safe and predictable, which most executives prefer. That’s how
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relatively safe and predictable, which most executives prefer. That’s how they’ve been trained, and that’s where they’re comfortable. What they
NOT FOR RESALE
they’ve been trained, and that’s where they’re comfortable. What they usually want to avoid at all costs are subjective conversations that can NOT FOR R
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usually want to avoid at all costs are subjective conversations that can easily become emotional and awkward. And organizational health is NOT FOR R
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easily become emotional and awkward. And organizational health is
Patrick Lencioni—The Advantage
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The Advantage
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they receive, are incremental and fleeting. In this world of ubiquitous information and nanosecond technology exchange, it’s harder than it has ever been in history to maintain a competitive advantage based on intelligence or knowledge. Information just changes hands too rapidly today. Companies, even entire industries, come and go faster than we could have imagined even a decade ago.
Permission to PlayAnd so, being smart—as critical as it is—has become something of a commodity. It is simply permission to play, a minimum standard required for having even a possibility of success. It’s certainly not enough to achieve a meaningful, sustainable competitive advantage over any length of time.
In fact, I’d have to say that a lack of intelligence, domain expertise, or industry knowledge is almost never the problem I see in organiza-
tions. In twenty years of con-sulting to clients in virtually every industry, I have yet to meet a group of leaders who made me think, Wow, these people just don’t know enough about their business to succeed. Really. The vast majority of organizations today have more than enough intelli-gence, expertise, and know-ledge to be successful. What they lack is organizational health.
This point is worth restating.After two decades of working with CEOs and their teams of senior
executives, I’ve become absolutely convinced that the seminal difference
I’ve become absolutely
convinced that the seminal
difference between successful
companies and mediocre or
unsuccessful ones has little, if
anything, to do with what they
know or how smart they are;
it has everything to do with
how healthy they are.
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ATERIAL And so, being smart—as critical as it is—has become something of a
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commodity. It is simply permission to play, a minimum standard
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commodity. It is simply permission to play, a minimum standard required for having even a possibility of success. It’s certainly not
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required for having even a possibility of success. It’s certainly not enough to achieve a meaningful, sustainable competitive advantage
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enough to achieve a meaningful, sustainable competitive advantage
In fact, I’d have to say that a lack of intelligence, domain expertise,
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In fact, I’d have to say that a lack of intelligence, domain expertise, or industry knowledge is almost never the problem I see in organiza-
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or industry knowledge is almost never the problem I see in organiza-
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I’ve become absolutely
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I’ve become absolutely
convinced that the seminal
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convinced that the seminal
difference between successful
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difference between successful
companies and mediocre or
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companies and mediocre or
unsuccessful ones has little, if COPYRIGHTED M
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unsuccessful ones has little, if
anything, to do with what they COPYRIGHTED M
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anything, to do with what they NOT FOR R
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enough to achieve a meaningful, sustainable competitive advantage
In fact, I’d have to say that a lack of intelligence, domain expertise,
NOT FOR RESALEIn fact, I’d have to say that a lack of intelligence, domain expertise,
or industry knowledge is almost never the problem I see in organiza-
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or industry knowledge is almost never the problem I see in organiza-tions. In twenty years of con-
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tions. In twenty years of con-sulting to clients in virtually
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sulting to clients in virtually
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convinced that the seminal
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convinced that the seminal
difference between successful
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difference between successful
companies and mediocre or
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companies and mediocre or
unsuccessful ones has little, if NOT FOR RESALE
unsuccessful ones has little, if
Patrick Lencioni—The Advantage
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The Case for Organizational Health
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between successful companies and mediocre or unsuccessful ones has little, if anything, to do with what they know or how smart they are; it has everything to do with how healthy they are.
If you’re tempted to dismiss that idea, consider this. Though I made the statement just a few paragraphs ago that I’ve not yet met a group of leaders whom I thought lacked the knowledge, expertise, or intel-ligence to succeed, I’ve met plenty who made me think, Uh-oh. The culture within this team and this organization is way too unhealthy to sustain a successful business. And time after time I’ve seen smart compa-nies find a way to fail in spite of their sizable intellectual and strategic assets.
Again, that’s not to say that being smart isn’t important. It is. But if someone were to press me on which of the two characteristics of an organization, intelligence or health, should receive first priority, I would say without hesitation that health comes out a clear number one. Here’s why.
Health Begets—and Trumps—IntelligenceAn organization that is healthy will inevitably get smarter over time. That’s because people in a healthy organization, beginning with the leaders, learn from one another, identify critical issues, and recover quickly from mistakes. Without politics and confusion getting in their way, they cycle through problems and rally around solutions much faster than their dysfunctional and political rivals do. Moreover, they create environments in which employees do the same.
In contrast, smart organizations don’t seem to have any greater chance of getting healthier by virtue of their intelligence. In fact, the reverse may actually be true because leaders who pride themselves on expertise and intelligence often struggle to acknowledge their flaws and learn from peers. They aren’t as easily open and transparent with one another, which delays recovery from mistakes and exacerbates poli-tics and confusion. That’s certainly not to say that being smart isn’t
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culture within this team and this organization is way too unhealthy to
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culture within this team and this organization is way too unhealthy to And time after time I’ve seen smart compa-
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nies find a way to fail in spite of their sizable intellectual and strategic
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nies find a way to fail in spite of their sizable intellectual and strategic
Again, that’s not to say that being smart isn’t important. It is. But
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Again, that’s not to say that being smart isn’t important. It is. But if someone were to press me on which of the two characteristics of an
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if someone were to press me on which of the two characteristics of an organization, intelligence or health, should receive first priority, I would
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organization, intelligence or health, should receive first priority, I would say without hesitation that health comes out a clear number one. Here’s
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say without hesitation that health comes out a clear number one. Here’s
Health Begets—and Trumps—Intelligence
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Health Begets—and Trumps—Intelligence
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An organization that is healthy will inevitably get smarter over time.
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An organization that is healthy will inevitably get smarter over time. That’s because people in a healthy organization, beginning with the
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That’s because people in a healthy organization, beginning with the leaders, learn from one another, identify critical issues, and recover
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leaders, learn from one another, identify critical issues, and recover quickly from mistakes. Without politics and confusion getting in their COPYRIG
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quickly from mistakes. Without politics and confusion getting in their way, they cycle through problems and rally around solutions much COPYRIG
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way, they cycle through problems and rally around solutions much NOT FOR R
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Again, that’s not to say that being smart isn’t important. It is. But if someone were to press me on which of the two characteristics of an
NOT FOR RESALEif someone were to press me on which of the two characteristics of an
organization, intelligence or health, should receive first priority, I would
NOT FOR RESALEorganization, intelligence or health, should receive first priority, I would
say without hesitation that health comes out a clear number one. Here’s
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say without hesitation that health comes out a clear number one. Here’s
Health Begets—and Trumps—Intelligence
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Health Begets—and Trumps—Intelligence
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An organization that is healthy will inevitably get smarter over time.
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An organization that is healthy will inevitably get smarter over time. That’s because people in a healthy organization, beginning with the
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That’s because people in a healthy organization, beginning with the leaders, learn from one another, identify critical issues, and recover
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quickly from mistakes. Without politics and confusion getting in their
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desirable, just that it provides no inherent advantages for becoming healthy.
The same phenomenon can be seen in families. Healthy families—the ones where parents give their children discipline, affection, and time—almost always improve over the years, even when they lack many of the advantages and resources that money can buy. Unhealthy fami-lies, the ones without discipline and unconditional love, will always struggle, even if they have all the money, tutors, coaches, and technol-ogy they could ever want.
The key ingredient for improvement and success is not access to knowledge or resources, as helpful as those things may be. It’s really about the health of the environment. And consider this: if you had to bet on the future of one of two kids, one raised by loving parents in a solid home and the other a product of apathy and dysfunction, you’d always take the former regardless of the resources surrounding them. Well, the same is true in organizations.
The Multiplier EffectHere is another testament to the superiority of organizational health over intelligence. In my career as a consultant, I’ve worked with a number of great, healthy companies that were led by men and women who attended relatively modest colleges—people who would admit to being just a little above average in intellectual capacity. When those companies made wise decisions that set them apart from their competi-tion, journalists and industry analysts incorrectly attributed their success to their intellectual prowess. The truth of the matter was that those companies weren’t smarter than their competitors; they simply tapped into the adequate intelligence they had and didn’t allow dys-function, ego, and politics to get in the way.
On the flip side, I’ve seen all too many companies whose leaders earned the best grades at the top universities, who possessed tremen-dous intellectual capacity and had extraordinary experience and indus-
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struggle, even if they have all the money, tutors, coaches, and technol-
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struggle, even if they have all the money, tutors, coaches, and technol-
The key ingredient for improvement and success is not access to
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The key ingredient for improvement and success is not access to knowledge or resources, as helpful as those things may be. It’s really
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knowledge or resources, as helpful as those things may be. It’s really about the health of the environment. And consider this: if you had to
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about the health of the environment. And consider this: if you had to bet on the future of one of two kids, one raised by loving parents in a
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bet on the future of one of two kids, one raised by loving parents in a solid home and the other a product of apathy and dysfunction, you’d
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solid home and the other a product of apathy and dysfunction, you’d always take the former regardless of the resources surrounding them.
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always take the former regardless of the resources surrounding them. Well, the same is true in organizations.
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Well, the same is true in organizations.
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The Multiplier Effect
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The Multiplier EffectHere is another testament to the superiority of organizational health
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Here is another testament to the superiority of organizational health over intelligence. In my career as a consultant, I’ve worked with a
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over intelligence. In my career as a consultant, I’ve worked with a number of great, healthy companies that were led by men and women
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number of great, healthy companies that were led by men and women
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who attended relatively modest colleges—people who would admit to COPYRIGHTED M
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who attended relatively modest colleges—people who would admit to being just a little above average in intellectual capacity. When those COPYRIG
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being just a little above average in intellectual capacity. When those NOT FOR R
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about the health of the environment. And consider this: if you had to bet on the future of one of two kids, one raised by loving parents in a
NOT FOR RESALEbet on the future of one of two kids, one raised by loving parents in a
solid home and the other a product of apathy and dysfunction, you’d
NOT FOR RESALEsolid home and the other a product of apathy and dysfunction, you’d
always take the former regardless of the resources surrounding them.
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always take the former regardless of the resources surrounding them. Well, the same is true in organizations.
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Well, the same is true in organizations.
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Here is another testament to the superiority of organizational health
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Here is another testament to the superiority of organizational health over intelligence. In my career as a consultant, I’ve worked with a
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over intelligence. In my career as a consultant, I’ve worked with a number of great, healthy companies that were led by men and women
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who attended relatively modest colleges—people who would admit to
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try knowledge, yet still managed to fail because they couldn’t tap into much of it. In almost every situation, it was politics, behavioral mis-alignment, and inconsistency that did them in, leading them to make what seemed in retrospect like obvious tactical and strategic mistakes. Journalists and analysts always seem perplexed by how those executives “could have been so dumb.” But again, they miss the point by attribut-ing the bad decisions to intellectual deficiencies. They fail to see that the real deficiency, the one that makes it possible for smart people to make dumb decisions, is a lack of organizational health.
And so a good way to look at organizational health —and one that executives seem to respond to readily—is to see it as the multiplier of intelligence. The healthier an organization is, the more of its intelligence it is able to tap into and use. Most organizations exploit only a fraction of the knowledge, experience, and intellectual capital that is available to them. But the healthy ones tap into almost all of it. That, as much as anything else, is why they have such an advantage over their unhealthy competitors.
Okay, I’ve already add ressed the biases that pre vent so many leaders from embracing the power of organizational health. Another worthwhile question that needs to be answered is this: Why haven’t more business scholars and journalists embraced it?
Media and AcademiaFirst, organizational health just isn’t very sexy, so journalists aren’t ter-ribly excited to talk or write about it. No magazine or newspaper wants to run a story about a humble leader who continues to run her
Most organizations exploit only
a fraction of the knowledge,
experience, and intellectual
capital that is available to them.
But the healthy ones tap into
almost all of it.
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the real deficiency, the one that makes it possible for smart people to
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the real deficiency, the one that makes it possible for smart people to make dumb decisions, is a lack of organizational health.
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an organization is, the more
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an organization is, the more of its intelligence it is able
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of its intelligence it is able to tap into and use. Most
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to tap into and use. Most organizations exploit only a
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organizations exploit only a fraction of the knowledge,
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fraction of the knowledge, experience, and intellectual capital that is available to them. But the
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experience, and intellectual capital that is available to them. But the healthy ones tap into almost all of it. That, as much as anything else, COPYRIG
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healthy ones tap into almost all of it. That, as much as anything else, is why they have such an advantage over their unhealthy competitors.COPYRIG
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Most organizations exploit only
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Most organizations exploit only
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a fraction of the knowledge,
experience, and intellectual
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experience, and intellectual
capital that is available to them.
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capital that is available to them.
But the healthy ones tap into
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But the healthy ones tap into
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a fraction of the knowledge,
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a fraction of the knowledge,
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capital that is available to them.
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capital that is available to them.
But the healthy ones tap into
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But the healthy ones tap into
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to tap into and use. Most
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to tap into and use. Most organizations exploit only a
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organizations exploit only a fraction of the knowledge,
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fraction of the knowledge, experience, and intellectual capital that is available to them. But the NOT FOR R
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experience, and intellectual capital that is available to them. But the healthy ones tap into almost all of it. That, as much as anything else, NOT FOR R
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healthy ones tap into almost all of it. That, as much as anything else, NOT FOR RESALE
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almost all of it.
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almost all of it.
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medium-sized company with discipline, common sense, and consis-tency. They would rather tell you about how a brash young entrepre-neur is trying to set the world on fire—and maybe himself—with a disruptive new piece of technology or a revolutionary new service. And that makes sense given that they’re trying to sell magazines and lure more advertisers. But it certainly doesn’t mean their eye-catching stories are more instructive or practical.
Another reason that organizational health has been overlooked by academia and the media has to do with the difficulty of measuring its impact. As I mentioned earlier, trying to identify exactly how much a company’s health affects its bottom line is next to impossible; there are just too many variables to isolate it from the myriad of other factors. But again, that doesn’t make the impact of organizational health any less real, just harder for journalists and academics to justify in a defini-tive, quantitative way.
Finally, organizational health gets overlooked because the elements that make it up don’t seem to be anything new. And in many ways, they aren’t. The basic components—leadership, teamwork, culture, strategy, meetings—have been a subject of discussion within academia for a long time. The problem is that we’ve been looking at those ele-ments in isolated, discreet, and theoretical ways instead of as an inte-grated, practical discipline.
It’s tempting to downplay this oversight of organizational health by media and academia and, for that matter, leaders, as just another interesting and unfortunate phenomenon of modern business culture. However, the cost of that oversight is extraordinarily high and cannot be overstated.
The Price of Poor HealthAnyone who has ever worked in an unhealthy organization—and almost everyone has—knows the misery of dealing with politics, dys-function, confusion, and bureaucracy. As much as we enjoy making
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Another reason that organizational health has been overlooked by
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Another reason that organizational health has been overlooked by academia and the media has to do with the difficulty of measuring its
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impact. As I mentioned earlier, trying to identify exactly how much a
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impact. As I mentioned earlier, trying to identify exactly how much a company’s health affects its bottom line is next to impossible; there are
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company’s health affects its bottom line is next to impossible; there are just too many variables to isolate it from the myriad of other factors.
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just too many variables to isolate it from the myriad of other factors. But again, that doesn’t make the impact of organizational health any
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But again, that doesn’t make the impact of organizational health any less real, just harder for journalists and academics to justify in a defini-
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less real, just harder for journalists and academics to justify in a defini-
Finally, organizational health gets overlooked because the elements
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Finally, organizational health gets overlooked because the elements
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that make it up don’t seem to be anything new. And in many ways,
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that make it up don’t seem to be anything new. And in many ways, they aren’t. The basic components—leadership, teamwork, culture,
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they aren’t. The basic components—leadership, teamwork, culture, strategy, meetings—have been a subject of discussion within academia
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strategy, meetings—have been a subject of discussion within academia for a long time. The problem is that we’ve been looking at those ele-
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for a long time. The problem is that we’ve been looking at those ele-
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ments in isolated, discreet, and theoretical ways instead of as an inte-
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ments in isolated, discreet, and theoretical ways instead of as an inte-grated, practical discipline.COPYRIG
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grated, practical discipline.It’s tempting to downplay this oversight of organizational health COPYRIG
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It’s tempting to downplay this oversight of organizational health NOT FOR R
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just too many variables to isolate it from the myriad of other factors. But again, that doesn’t make the impact of organizational health any
NOT FOR RESALEBut again, that doesn’t make the impact of organizational health any
less real, just harder for journalists and academics to justify in a defini-
NOT FOR RESALEless real, just harder for journalists and academics to justify in a defini-
Finally, organizational health gets overlooked because the elements
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Finally, organizational health gets overlooked because the elements
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that make it up don’t seem to be anything new. And in many ways,
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that make it up don’t seem to be anything new. And in many ways, they aren’t. The basic components—leadership, teamwork, culture,
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they aren’t. The basic components—leadership, teamwork, culture, strategy, meetings—have been a subject of discussion within academia
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strategy, meetings—have been a subject of discussion within academia for a long time. The problem is that we’ve been looking at those ele-
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for a long time. The problem is that we’ve been looking at those ele-
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ments in isolated, discreet, and theoretical ways instead of as an inte-NOT FOR RESALE
ments in isolated, discreet, and theoretical ways instead of as an inte-grated, practical discipline.NOT FOR R
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grated, practical discipline.
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jokes about these artifacts of organizational plight, there is no denying that they exact a significant toll.
The financial cost of having an unhealthy organization is undeni-able: wasted resources and time, decreased productivity, increased employee turnover, and customer attrition. The money an organization loses as a result of these problems, and the money it has to spend to recover from them, is staggering.
And that’s only the beginning of the problem. When leaders of an organization are less than honest with one another, when they put the needs of their departments or their careers ahead of the needs of the greater organization, when they are misaligned, confused, and inconsistent about what is important, they create real anguish for real human beings. And they experience that anguish themselves too.
Aside from the obvious impact this has within the organization, there is a larger social cost. People who work in unhealthy organizations eventually come to see work as drudgery. They view success as being unlikely or, even worse, out of their control. This leads to a diminished sense of hope and lower self-esteem, which leaks beyond the walls of the companies where they work, into their families where it often contrib-utes to deep personal problems, the effects of which may be felt for years. This is nothing short of a tragedy, and a completely avoidable one.
I point all this out only so that we don’t underestimate the cost of allowing our organizations to remain unhealthy, and, more important, so that we fully grasp the opportunity that lies before us. Turning an unhealthy company into a healthy one will not only create a massive competitive advantage and improved bottom line, it will also make a real difference in the lives of the people who work there. And for the leaders who spearhead those efforts, it will be one of the most meaning-ful and rewarding endeavors they will ever pursue.
Okay, here is the next question that has to be answered, the one that will occupy the rest of this book: What does an organization have to do to become healthy? There are four required disciplines.
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And that’s only the beginning of the problem. When leaders of an
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And that’s only the beginning of the problem. When leaders of an organization are less than honest with one another, when they put the
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needs of their departments or their careers ahead of the needs of
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needs of their departments or their careers ahead of the needs of the greater organization, when they are misaligned, confused, and
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the greater organization, when they are misaligned, confused, and inconsistent about what is important, they create real anguish for real
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inconsistent about what is important, they create real anguish for real human beings. And they experience that anguish themselves too.
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human beings. And they experience that anguish themselves too.Aside from the obvious impact this has within the organization,
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Aside from the obvious impact this has within the organization, there is a larger social cost. People who work in unhealthy organizations
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there is a larger social cost. People who work in unhealthy organizations eventually come to see work as drudgery. They view success as being
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eventually come to see work as drudgery. They view success as being unlikely or, even worse, out of their control. This leads to a diminished
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unlikely or, even worse, out of their control. This leads to a diminished sense of hope and lower self-esteem, which leaks beyond the walls of the
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sense of hope and lower self-esteem, which leaks beyond the walls of the companies where they work, into their families where it often contrib-
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companies where they work, into their families where it often contrib-utes to deep personal problems, the effects of which may be felt for years.
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utes to deep personal problems, the effects of which may be felt for years. This is nothing short of a tragedy, and a completely avoidable one.
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This is nothing short of a tragedy, and a completely avoidable one.I point all this out only so that we don’t underestimate the cost of COPYRIG
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I point all this out only so that we don’t underestimate the cost of allowing our organizations to remain unhealthy, and, more important, COPYRIG
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allowing our organizations to remain unhealthy, and, more important, NOT FOR R
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inconsistent about what is important, they create real anguish for real human beings. And they experience that anguish themselves too.
NOT FOR RESALEhuman beings. And they experience that anguish themselves too.
Aside from the obvious impact this has within the organization,
NOT FOR RESALEAside from the obvious impact this has within the organization,
there is a larger social cost. People who work in unhealthy organizations
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there is a larger social cost. People who work in unhealthy organizations eventually come to see work as drudgery. They view success as being
NOT FOR RESALE
eventually come to see work as drudgery. They view success as being unlikely or, even worse, out of their control. This leads to a diminished
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unlikely or, even worse, out of their control. This leads to a diminished sense of hope and lower self-esteem, which leaks beyond the walls of the
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sense of hope and lower self-esteem, which leaks beyond the walls of the companies where they work, into their families where it often contrib-
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companies where they work, into their families where it often contrib-utes to deep personal problems, the effects of which may be felt for years.
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utes to deep personal problems, the effects of which may be felt for years. This is nothing short of a tragedy, and a completely avoidable one.NOT FOR R
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This is nothing short of a tragedy, and a completely avoidable one.I point all this out only so that we don’t underestimate the cost of NOT FOR R
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I point all this out only so that we don’t underestimate the cost of
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ORGANIZATIONAL HEALTH
3. Overcommunicate
Clarity
4. Reinforce
Clarity
1. Build a
Cohesive Leadership
Team
2. CreateClarity
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ORGANIZATIONAL HEALTH
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ORGANIZATIONAL HEALTH
Overcommunicate
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ORGANIZATIONAL HEALTH
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3.
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Overcommunicate
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An organization doesn’t become healthy in a linear, tidy fashion. Like building a strong marriage or family, it’s a messy process that involves doing a few things at once, and it must be maintained on an ongoing basis in order to be preserved. Still, that messy process can be broken down into four simple disciplines.
Discipline 1: BuilD a cohesive leaDership Team
An organization simply cannot be healthy if the people who are char-tered with running it are not behaviorally cohesive in five fundamental ways. In any kind of organization, from a corporation to a department within that corporation, from a small, entrepreneurial company to a church or a school, dysfunction and lack of cohesion at the top inevi-tably lead to a lack of health throughout.
Discipline 2: creaTe clariTy
In addition to being behaviorally cohesive, the leadership team of a healthy organization must be intellectually aligned and committed to the same answers to six simple but critical questions. There can be no daylight between leaders around these fundamental issues.
Discipline 3: overcommunicaTe clariTy
Once a leadership team has established behavioral cohesion and created clarity around the answers to those questions, it must then communi-cate those answers to employees clearly, repeatedly, enthusiastically, and repeatedly (that’s not a typo). When it comes to reinforcing clarity, there is no such thing as too much communication.
The Four Disciplines Model
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ea
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eaD
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Der
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ership Team
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ship Team
An organization simply cannot be healthy if the people who are char-
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An organization simply cannot be healthy if the people who are char-tered with running it are not behaviorally cohesive in five fundamental
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tered with running it are not behaviorally cohesive in five fundamental ways. In any kind of organization, from a corporation to a department
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ways. In any kind of organization, from a corporation to a department within that corporation, from a small, entrepreneurial company to a
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within that corporation, from a small, entrepreneurial company to a church or a school, dysfunction and lack of cohesion at the top inevi-
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church or a school, dysfunction and lack of cohesion at the top inevi-tably lead to a lack of health throughout.
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tably lead to a lack of health throughout.
Discipline 2:
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Discipline 2: c
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cre
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addition to being behaviorally cohesive, the leadership team of a
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addition to being behaviorally cohesive, the leadership team of a healthy organization must be intellectually aligned and committed to
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healthy organization must be intellectually aligned and committed to the same answers to six simple but critical questions. There can be no COPYRIG
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the same answers to six simple but critical questions. There can be no NOT FOR R
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An organization simply cannot be healthy if the people who are char-tered with running it are not behaviorally cohesive in five fundamental
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tered with running it are not behaviorally cohesive in five fundamental ways. In any kind of organization, from a corporation to a department
NOT FOR RESALEways. In any kind of organization, from a corporation to a department
within that corporation, from a small, entrepreneurial company to a
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within that corporation, from a small, entrepreneurial company to a church or a school, dysfunction and lack of cohesion at the top inevi-
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church or a school, dysfunction and lack of cohesion at the top inevi-tably lead to a lack of health throughout.
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tably lead to a lack of health throughout.
re
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addition to being behaviorally cohesive, the leadership team of a
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healthy organization must be intellectually aligned and committed to
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Discipline 4: reinforce clariTy
Finally, in order for an organization to remain healthy over time, its leaders must establish a few critical, nonbureaucratic systems to rein-force clarity in every process that involves people. Every policy, every program, every activity should be designed to remind employees what is really most important.
Is this model foolproof?Pretty much. When an organization’s leaders are cohesive, when
they are unambiguously aligned around a common set of answers to a few critical questions, when they communicate those answers again and again and again, and when they put effective processes in place to reinforce those answers, they create an environment in which success is almost impossible to prevent. Really.
Sure, if those leaders make a catastrophic, completely boneheaded mistake in strategy, finance, or marketing they could sink the organiza-tion. But people in healthy organizations rarely make those kinds of mistakes. That’s because cohesive leadership teams prevent groupthink, learn from mistakes, and call each other on potential problems before they get out of hand. And so it makes sense that this is the first of the four disciplines that should be taken on: building a cohesive leadership team.
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Pretty much. When an organization’s leaders are cohesive, when
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Pretty much. When an organization’s leaders are cohesive, when they are unambiguously aligned around a common set of answers to a
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they are unambiguously aligned around a common set of answers to a few critical questions, when they communicate those answers again and
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few critical questions, when they communicate those answers again and again and again, and when they put effective processes in place to
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again and again, and when they put effective processes in place to reinforce those answers, they create an environment in which success
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reinforce those answers, they create an environment in which success is almost impossible to prevent. Really.
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is almost impossible to prevent. Really.Sure, if those leaders make a catastrophic, completely boneheaded
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Sure, if those leaders make a catastrophic, completely boneheaded mistake in strategy, finance, or marketing they could sink the organiza-
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mistake in strategy, finance, or marketing they could sink the organiza-
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tion. But people in healthy organizations rarely make those kinds of
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tion. But people in healthy organizations rarely make those kinds of mistakes. That’s because cohesive leadership teams prevent groupthink,
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mistakes. That’s because cohesive leadership teams prevent groupthink, learn from mistakes, and call each other on potential problems before
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learn from mistakes, and call each other on potential problems before they get out of hand. And so it makes sense that this is the first of COPYRIG
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they get out of hand. And so it makes sense that this is the first of the four disciplines that should be taken on: building a cohesive COPYRIG
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the four disciplines that should be taken on: building a cohesive NOT FOR R
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they are unambiguously aligned around a common set of answers to a few critical questions, when they communicate those answers again and
NOT FOR RESALEfew critical questions, when they communicate those answers again and
again and again, and when they put effective processes in place to
NOT FOR RESALEagain and again, and when they put effective processes in place to
reinforce those answers, they create an environment in which success
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reinforce those answers, they create an environment in which success is almost impossible to prevent. Really.
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is almost impossible to prevent. Really.Sure, if those leaders make a catastrophic, completely boneheaded
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Sure, if those leaders make a catastrophic, completely boneheaded mistake in strategy, finance, or marketing they could sink the organiza-
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mistake in strategy, finance, or marketing they could sink the organiza-
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tion. But people in healthy organizations rarely make those kinds of
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tion. But people in healthy organizations rarely make those kinds of mistakes. That’s because cohesive leadership teams prevent groupthink,
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mistakes. That’s because cohesive leadership teams prevent groupthink, learn from mistakes, and call each other on potential problems before
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learn from mistakes, and call each other on potential problems before they get out of hand. And so it makes sense that this is the first of NOT FOR R
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they get out of hand. And so it makes sense that this is the first of
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WHAT’S IT WORTH TO YOU?
Imagine two organizations.
The first is led by a leadership team whose members are open with one another, passionately debate important issues, and commit to clear decisions even if they initially disagree. They call each other out when their behaviors or performance needs correction, and they focus their attention on the collective good of the organization.
The second is led by a leadership team whose members are guarded and less than honest with one another. They hold back during difficult conversations, feign commitment, and hesitate to call one another on unproductive behaviors. Often they pursue their own agendas rather than those of the greater organization.
The question: What kind of advantage would the first organization have over the second, and how much time and energy would it be worth investing to make this advantage a reality?
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The first is led by a leadership team whose members are open with
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The first is led by a leadership team whose members are open with one another, passionately debate important issues, and commit to clear
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one another, passionately debate important issues, and commit to clear one another, passionately debate important issues, and commit to clear
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one another, passionately debate important issues, and commit to clear decisions even if they initially disagree. They call each other out when
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decisions even if they initially disagree. They call each other out when decisions even if they initially disagree. They call each other out when
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decisions even if they initially disagree. They call each other out when their behaviors or performance needs correction, and they focus their
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their behaviors or performance needs correction, and they focus their attention on the collective good of the organization.
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attention on the collective good of the organization.
The second is led by a leadership team whose members are guarded
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The second is led by a leadership team whose members are guarded
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and less than honest with one another. They hold back during difficult
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and less than honest with one another. They hold back during difficult conversations, feign commitment, and hesitate to call one another on
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conversations, feign commitment, and hesitate to call one another on unproductive behaviors. Often they pursue their own agendas rather
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unproductive behaviors. Often they pursue their own agendas rather than those of the greater organization.
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than those of the greater organization.
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one another, passionately debate important issues, and commit to clear
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one another, passionately debate important issues, and commit to clear decisions even if they initially disagree. They call each other out when
NOT FOR RESALEdecisions even if they initially disagree. They call each other out when
their behaviors or performance needs correction, and they focus their
NOT FOR RESALEtheir behaviors or performance needs correction, and they focus their their behaviors or performance needs correction, and they focus their
NOT FOR RESALEtheir behaviors or performance needs correction, and they focus their
attention on the collective good of the organization.
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attention on the collective good of the organization.attention on the collective good of the organization.
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attention on the collective good of the organization.
The second is led by a leadership team whose members are guarded
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The second is led by a leadership team whose members are guarded
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and less than honest with one another. They hold back during difficult
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and less than honest with one another. They hold back during difficult conversations, feign commitment, and hesitate to call one another on
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conversations, feign commitment, and hesitate to call one another on unproductive behaviors. Often they pursue their own agendas rather
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unproductive behaviors. Often they pursue their own agendas rather than those of the greater organization.NOT FOR R
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than those of the greater organization.
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D I S C I P L I N E 1
Build a Cohesive Leadership Team
The first step a leadership team has to take if it wants the organization it leads to be healthy—
and to achieve the advantages that go with it—is to make itself cohesive. There’s just no way around it. If an organization is led by a team that is not behaviorally unified, there is no chance that it will become healthy.
It’s kind of like a family. If the parents’ relation-ship is dysfunctional, the family will be too. That’s not to say that some good things can’t come out of it; it’s just that the family/company will not come anywhere close to realizing its full potential.
The importance of leadership team cohesion is almost never overtly disputed, even by the most cynical executives. But somehow, few organizations
ORGANIZATIONAL HEALTH
3. Overcommunicate
Clarity
4. Reinforce
Clarity
1. Build a
Cohesive Leadership
Team
2. CreateClarity
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Leadership Team
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The first step a leadership team has to take if it
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he first step a leadership team has to take if it
and to achieve the advantages that go with it—is
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and to achieve the advantages that go with it—is
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he first step a leadership team has to take if it
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he first step a leadership team has to take if it wants the organization it leads to be healthy—
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wants the organization it leads to be healthy—and to achieve the advantages that go with it—is
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and to achieve the advantages that go with it—is
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to make itself cohesive. There’s just no way around NOT FOR RESALE
to make itself cohesive. There’s just no way around it. If an organization is led by a team that is not NOT FOR R
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it. If an organization is led by a team that is not
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invest nearly enough time and energy in it, and certainly not with the level of rigor that building a cohesive team requires and deserves. So it’s
difficult to avoid coming to the conclusion that most organizations either give lip-service to the idea that team-work at the top is critical, or they underestimate what it takes to achieve it. Whatever the case, it’s clear that a better approach needs to be taken if they are to eradicate dysfunc-tion from their teams.
I should mention here that I wrote a book that addresses this topic. It’s called The Five Dysfunctions of a Team, and it’s a fable about a leader who takes over a political, dysfunctional team and works to turn it around. That book provides a fictional but thorough and realistic case study about how a team needs to wrestle with dysfunction in order to improve. I’ve also written a field guide, Overcoming the Five Dysfunctions of a Team, which provides detailed instructions for how to implement many of the exercises and tools we use in our consulting practice.1
What I’ll do in this section is present a comprehensive overview of the model and provide advice about addressing the five dysfunctions and embrac-ing the positive behaviors that are at the heart of any cohesive leadership team. I’ll also use real stories to draw on what I’ve learned from clients and readers since those books came out ten and seven years before this one, respectively.
But first, we need to get clear on what a leadership team really is.
DefInIng A LeADeRSHIp “TeAm”
The word team has been so overused and misused in society that it has lost much of its impact. The truth is, few groups of leaders actually work
Few organizations invest
nearly enough time and
energy in making their
leadership teams cohesive,
and certainly not with the
level of rigor that it requires
and deserves.
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they underestimate what it
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they underestimate what it takes to achieve it. Whatever
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the case, it’s clear that a better
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the case, it’s clear that a better approach needs to be taken if
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approach needs to be taken if they are to eradicate dysfunc-
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they are to eradicate dysfunc-tion from their teams.
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tion from their teams.I should mention here that I wrote a book that addresses this topic.
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I should mention here that I wrote a book that addresses this topic. The Five Dysfunctions of a Team
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The Five Dysfunctions of a Team, and it’s a fable about a leader
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, and it’s a fable about a leader who takes over a political, dysfunctional team and works to turn it
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who takes over a political, dysfunctional team and works to turn it around. That book provides a fictional but thorough and realistic case
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around. That book provides a fictional but thorough and realistic case study about how a team needs to wrestle with dysfunction in order to
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study about how a team needs to wrestle with dysfunction in order to improve. I’ve also written a field guide,
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improve. I’ve also written a field guide, which provides detailed instructions for how to implement
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which provides detailed instructions for how to implement many of the exercises and tools we use in our consulting practice.
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many of the exercises and tools we use in our consulting practice.
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What I’ll do in this section is present a comprehensive overview of the COPYRIGHTED M
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What I’ll do in this section is present a comprehensive overview of the model and provide advice about addressing the five dysfunctions and embrac-COPYRIG
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model and provide advice about addressing the five dysfunctions and embrac-NOT FOR R
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they are to eradicate dysfunc-tion from their teams.
NOT FOR RESALEtion from their teams.
I should mention here that I wrote a book that addresses this topic.
NOT FOR RESALEI should mention here that I wrote a book that addresses this topic.
, and it’s a fable about a leader
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, and it’s a fable about a leader who takes over a political, dysfunctional team and works to turn it
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who takes over a political, dysfunctional team and works to turn it around. That book provides a fictional but thorough and realistic case
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around. That book provides a fictional but thorough and realistic case study about how a team needs to wrestle with dysfunction in order to
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study about how a team needs to wrestle with dysfunction in order to improve. I’ve also written a field guide,
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improve. I’ve also written a field guide, which provides detailed instructions for how to implement
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which provides detailed instructions for how to implement many of the exercises and tools we use in our consulting practice.NOT FOR R
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many of the exercises and tools we use in our consulting practice.What I’ll do in this section is present a comprehensive overview of the NOT FOR R
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What I’ll do in this section is present a comprehensive overview of the
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like a team, at least not the kind that is required to lead a healthy orga-nization. Most of them resemble what Jon Katzenbach and Douglas Smith, authors of the book, The Wisdom of Teams, call a “working group.”2
A good way to understand a working group is to think of it like a golf team, where players go off and play on their own and then get together and add up their scores at the end of the day. A real team is more like a basketball team, one that plays together simultaneously, in an interactive, mutually dependent, and often interchangeable way. Most working groups reflexively call themselves teams because that’s the word society uses to describe any group of people who are affiliated in their work.
Becoming a real team requires an intentional decision on the part of its members. I like to say that teamwork is not a virtue. It is a choice—and a strategic one. That means leaders who choose to operate as a real team willingly accept the work and the sacrifices that are necessary for any group that wants to reap the benefits of true teamwork. But before they can do that, they should understand and agree on a common definition of what a leadership team really is.
A leadership team is a small group of people who are collectively respon-sible for achieving a common objective for their organiza tion.
Any concise definition of such a broadly defined and widely used term is going to need some clarification and further definition of terms. Here goes.
A small group of peopleSo many teams I’ve encountered struggle simply because they’re too large. This is a big problem and a common one. A leadership team should be made up of somewhere between three and twelve people,
Teamwork is not a virtue. It is
a choice—and a strategic one.
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mutually dependent, and often interchangeable way. Most working
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mutually dependent, and often interchangeable way. Most working groups reflexively call themselves teams because that’s the word society
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uses to describe any group of people who are affiliated in their work.
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uses to describe any group of people who are affiliated in their work.Becoming a real team requires an intentional decision on the part
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Becoming a real team requires an intentional decision on the part of its members. I like to say that teamwork is not a virtue. It is a
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of its members. I like to say that teamwork is not a virtue. It is a
team willingly accept the
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team willingly accept the work and the sacrifices that
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work and the sacrifices that are necessary for any group
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are necessary for any group that wants to reap the benefits of true teamwork. But before they can
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that wants to reap the benefits of true teamwork. But before they can do that, they should understand and agree on a common definition of
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do that, they should understand and agree on a common definition of what a leadership team really is.
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what a leadership team really is.
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A leadership team is a small group of people who are collectively respon-COPYRIGHTED M
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Teamwork is not a virtue. It is
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Teamwork is not a virtue. It is
a choice—and a strategic one.
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a choice—and a strategic one.
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of its members. I like to say that teamwork is not a virtue. It is a
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of its members. I like to say that teamwork is not a virtue. It is a
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Teamwork is not a virtue. It is
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Teamwork is not a virtue. It is
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are necessary for any group
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are necessary for any group that wants to reap the benefits of true teamwork. But before they can
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that wants to reap the benefits of true teamwork. But before they can do that, they should understand and agree on a common definition of
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do that, they should understand and agree on a common definition of what a leadership team really is.NOT FOR R
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what a leadership team really is.NOT FOR RESALE
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a choice—and a strategic one.
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a choice—and a strategic one.
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though anything over eight or nine is usually problematic. There is nothing dogmatic about this size limit. It is just a practical reality.
Having too many people on a team can cause a variety of logistical challenges, but the primary problem has to do with communication. When it comes to discussions and decision making, there are two criti-cal ways that members of effective teams must communicate: advocacy and inquiry. A professor at Harvard, Chris Argyris, introduced this idea.3
Advocacy is the kind of communication that most people are accustomed to, and it is all about stating your case or making your point. I think we should change our advertising approach. Or, I recom-mend that we cut costs.
Inquiry is rarer and more important than advocacy. It happens when people ask questions to seek clarity about another person’s statement of advocacy. Why do you think the advertising approach is wrong? And which aspects of it are you referring to? Or, What evidence do you have that our expenses are too high? And how certain are you of this?
What does this have to do with the size of a team? Plenty. When more than eight or nine people are on a team, members tend to advo-cate a heck of a lot more than they inquire. This makes sense because they aren’t confident that they’re going to get the opportunity to speak again soon, so they use their scarce floor time to announce their posi-tion or make a point. When a team is small, members are more likely to use much of their time asking questions and seeking clarity, confi-dent that they’ll be able to regain the floor and share their ideas or opinions when necessary.
If this isn’t clear, consider an institution like the U.S. Congress or the United Nations, where members use their precious time at the podium making declarations and statements. The same is true in large committees or on task forces within organizations, where people rarely take the opportunity to probe for understanding and clarity, but instead
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accustomed to, and it is all about stating your case or making your
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accustomed to, and it is all about stating your case or making your I think we should change our advertising approach.
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I think we should change our advertising approach.
Inquiry is rarer and more important than advocacy. It happens
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Inquiry is rarer and more important than advocacy. It happens when people ask questions to seek clarity about another person’s
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when people ask questions to seek clarity about another person’s Why do you think the advertising approach
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Why do you think the advertising approach is wrong? And which aspects of it are you referring to?
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is wrong? And which aspects of it are you referring to?do you have that our expenses are too high? And how certain are you
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do you have that our expenses are too high? And how certain are you
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What does this have to do with the size of a team? Plenty. When
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What does this have to do with the size of a team? Plenty. When more than eight or nine people are on a team, members tend to advo-
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more than eight or nine people are on a team, members tend to advo-cate a heck of a lot more than they inquire. This makes sense because
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they aren’t confident that they’re going to get the opportunity to speak again soon, so they use their scarce floor time to announce their posi-COPYRIG
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again soon, so they use their scarce floor time to announce their posi-NOT FOR R
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NOT FOR RESALEInquiry is rarer and more important than advocacy. It happens
when people ask questions to seek clarity about another person’s
NOT FOR RESALEwhen people ask questions to seek clarity about another person’s
Why do you think the advertising approach
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Why do you think the advertising approach is wrong? And which aspects of it are you referring to?
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is wrong? And which aspects of it are you referring to?do you have that our expenses are too high? And how certain are you
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do you have that our expenses are too high? And how certain are you
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What does this have to do with the size of a team? Plenty. When
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What does this have to do with the size of a team? Plenty. When more than eight or nine people are on a team, members tend to advo-
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more than eight or nine people are on a team, members tend to advo-cate a heck of a lot more than they inquire. This makes sense because NOT FOR R
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cate a heck of a lot more than they inquire. This makes sense because they aren’t confident that they’re going to get the opportunity to speak NOT FOR R
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they aren’t confident that they’re going to get the opportunity to speak
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merely pile opinion upon opinion. This inevitably leads to misunder-standing and poor decision making.
If this phenomenon is so compelling—and based on the evidence I’ve seen over the years in my work with leaders and their teams, I’m convinced it is—then it begs the question, Why do so many organizations still have too many people on their leadership teams?
Often it’s because they want to be “inclusive,” a politically correct way of saying they want to portray themselves as welcoming input from as many people as possible. And as nice as it may sound on a bumper sticker or a flowery poster, it is an ineffective and inefficient way to optimize deci-sion making within an organization. Inclusivity, or the basic idea behind it, should be achieved by ensuring that the members of a leadership team are adequately representing and tapping into the opinions of the people who work for them, not by maximizing the size of the team.
Another reason that leadership teams are often too large is the lack of wisdom and courage on the part of the executives in charge who put people on their teams as a reward or as an enticement to join the company. I can’t give Bill a raise or a promotion, but I think he’ll be happy if I make him part of the executive team. Or maybe, If you come to work for my company, I’ll have you report directly to me. These are bad reasons to add staff to a leadership team.
The noah’s Ark management Team
A smallish telecommunications company purchased one of
its equal-sized competitors, and in order to placate the
execu tives of the acquired company, the CEO agreed to
merge the two groups of leaders into what I call the “Noah’s
Ark” management team. For every position on the executive
team, there were two leaders, each representing one side of
the merger. Two heads of marketing, two heads of sales, two
heads of . . . you get it. As ridiculous as that sounds, they
were convinced it was the best thing to do.
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of saying they want to portray themselves as welcoming input from as
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of saying they want to portray themselves as welcoming input from as many people as possible. And as nice as it may sound on a bumper sticker
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or a flowery poster, it is an ineffective and inefficient way to optimize deci-
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or a flowery poster, it is an ineffective and inefficient way to optimize deci-sion making within an organization. Inclusivity, or the basic idea behind
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sion making within an organization. Inclusivity, or the basic idea behind it, should be achieved by ensuring that the members of a leadership team
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it, should be achieved by ensuring that the members of a leadership team are adequately representing and tapping into the opinions of the people
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are adequately representing and tapping into the opinions of the people who work for them, not by maximizing the size of the team.
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who work for them, not by maximizing the size of the team.Another reason that leadership teams are often too large is the lack
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Another reason that leadership teams are often too large is the lack
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of wisdom and courage on the part of the executives in charge who put
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of wisdom and courage on the part of the executives in charge who put people on their teams as a reward or as an enticement to join the
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people on their teams as a reward or as an enticement to join the I can’t give Bill a raise or a promotion, but I think he’ll be happy
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I can’t give Bill a raise or a promotion, but I think he’ll be happy if I make him part of the executive team.
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if I make him part of the executive team.
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for my company, I’ll have you report directly to me.
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for my company, I’ll have you report directly to me.to add staff to a leadership team.
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to add staff to a leadership team.NOT FOR RESALE
it, should be achieved by ensuring that the members of a leadership team
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it, should be achieved by ensuring that the members of a leadership team are adequately representing and tapping into the opinions of the people
NOT FOR RESALEare adequately representing and tapping into the opinions of the people
who work for them, not by maximizing the size of the team.
NOT FOR RESALEwho work for them, not by maximizing the size of the team.
Another reason that leadership teams are often too large is the lack
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Another reason that leadership teams are often too large is the lack
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of wisdom and courage on the part of the executives in charge who put
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of wisdom and courage on the part of the executives in charge who put people on their teams as a reward or as an enticement to join the
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people on their teams as a reward or as an enticement to join the I can’t give Bill a raise or a promotion, but I think he’ll be happy
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I can’t give Bill a raise or a promotion, but I think he’ll be happy if I make him part of the executive team.
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if I make him part of the executive team.
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for my company, I’ll have you report directly to me.
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for my company, I’ll have you report directly to me.to add staff to a leadership team.NOT FOR R
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to add staff to a leadership team.
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When executives put people on their leadership teams for the wrong reasons, they muddy the criteria for why the team exists at all. The only reason that a person should be on a team is that she represents a key part of the organization or brings truly critical talent or insight to the table. If someone is unhappy with his pay or status or wavering about accepting a job offer, the leader should deal with that issue head-on, not compound it by making the executive team larger and less productive.
It amazes me that intelligent people will sacrifice the effectiveness and manageability of their team for a tactical victory. This is undeni-able evidence that many executives, in spite of what they might say, don’t really understand the importance of leadership team cohesiveness.
With so many people on the leadership team—I believe
it peaked at seventeen—meetings became a mess. The
group’s ability to be decisive and come to closure around
decisions diminished, as you would expect, and executives
grew so bored that a few would actually sleep during staff
meetings (I kid you not.).
Aside from the comedy of it all, what made this situation
so fascinating to me was the way in which it was resolved.
Executives eventually became so frustrated by the bureau-
cracy and wasted time that they started asking the CEO to
take them off the team! They were willing to sacrifice their
coveted place at the table, and report to a peer, just to avoid
having to waste their time and energy working on such a
large and unruly team.
Ironically, the ultimate impact of the Noah’s Ark approach
was not an improvement in the morale of the people in the
newly acquired company, but rather a prolonged period of
transition, denial, and frustration.
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cracy and wasted time that they started asking the CEO to
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take them off the team! They were willing to sacrifice their
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take them off the team! They were willing to sacrifice their
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coveted place at the table, and report to a peer, just to avoid
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coveted place at the table, and report to a peer, just to avoid
having to waste their time and energy working on such a
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having to waste their time and energy working on such a
Ironically, the ultimate impact of the Noah’s Ark approach
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Ironically, the ultimate impact of the Noah’s Ark approach
was not an improvement in the morale of the people in the
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was not an improvement in the morale of the people in the
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When executives put people on their leadership teams for the
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When executives put people on their leadership teams for the wrong reasons, they muddy the criteria for why the team exists at all.
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wrong reasons, they muddy the criteria for why the team exists at all. The only reason that a person should be on a team is that she represents
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The only reason that a person should be on a team is that she represents a key part of the organization or brings truly critical talent or insight COPYRIG
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a key part of the organization or brings truly critical talent or insight to the table. If someone is unhappy with his pay or status or wavering COPYRIG
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to the table. If someone is unhappy with his pay or status or wavering
newly acquired company, but rather a prolonged period of
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newly acquired company, but rather a prolonged period of
transition, denial, and frustration.
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transition, denial, and frustration.
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having to waste their time and energy working on such a
NOT FOR RESALE
having to waste their time and energy working on such a
Ironically, the ultimate impact of the Noah’s Ark approach
NOT FOR RESALEIronically, the ultimate impact of the Noah’s Ark approach
was not an improvement in the morale of the people in the
NOT FOR RESALE
was not an improvement in the morale of the people in the
NOT FOR RESALE
When executives put people on their leadership teams for the
NOT FOR RESALE
When executives put people on their leadership teams for the wrong reasons, they muddy the criteria for why the team exists at all.
NOT FOR RESALE
wrong reasons, they muddy the criteria for why the team exists at all. The only reason that a person should be on a team is that she represents
NOT FOR RESALE
The only reason that a person should be on a team is that she represents a key part of the organization or brings truly critical talent or insight NOT FOR R
ESALE
a key part of the organization or brings truly critical talent or insight
newly acquired company, but rather a prolonged period of
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newly acquired company, but rather a prolonged period of
transition, denial, and frustration.
NOT FOR RESALE
transition, denial, and frustration.
Patrick Lencioni—The Advantage
La
Discipline 1: Build a Cohesive Leadership Team
25
collectively ResponsibleThis is perhaps the most important distinction between a working group and a real leadership team. Collective responsibility implies, more than anything else, selflessness and shared sacrifices from team members.
What kind of sacrifices am I talking about? Well, first are the tangible, literal sacrifices. These include standard things like budget allocations or head count, resources that need to be shifted from one suborganization or department to another. Making these kinds of sacrifices is much easier to commit to in theory than in practice, because no leader likes to go back to his or her department and announce that bonuses are going to be smaller or head count is going to be reduced in order to help out another department that needs it more. But that’s what members of real teams do.
There are other sacrifices that team members have to make beyond these tangible ones, and they come about on a much more regular basis—often daily. Two big ones are time and emotion.
Members of cohesive teams spend many hours working together on issues and topics that often don’t fall directly within their formal areas of responsibility. They go to meetings to help their team members solve problems even when those problems have nothing to do with their departments. And perhaps most challenging of all, they enter into dif-ficult, uncomfortable discussions, even bringing up thorny issues with colleagues about their shortcomings, in order to solve problems that might prevent the team from achieving its objectives. They do this even when they’re tempted to avoid it all and go back to the relative safety of their offices to do what I refer to as their “day jobs,” that is, the work of their department.
common ObjectivesThough this is pretty straightforward, it’s worth stating that most of a leadership team’s objectives should be collective ones. If the most
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one suborganization or department to another. Making these kinds
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one suborganization or department to another. Making these kinds of sacrifices is much easier to commit to in theory than in practice,
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ATERIAL of sacrifices is much easier to commit to in theory than in practice,
because no leader likes to go back to his or her department and
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because no leader likes to go back to his or her department and announce that bonuses are going to be smaller or head count is going
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announce that bonuses are going to be smaller or head count is going to be reduced in order to help out another department that needs it
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to be reduced in order to help out another department that needs it more. But that’s what members of real teams do.
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more. But that’s what members of real teams do.There are other sacrifices that team members have to make beyond
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There are other sacrifices that team members have to make beyond these tangible ones, and they come about on a much more regular
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these tangible ones, and they come about on a much more regular basis—often daily. Two big ones are time and emotion.
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basis—often daily. Two big ones are time and emotion.Members of cohesive teams spend many hours working together
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Members of cohesive teams spend many hours working together on issues and topics that often don’t fall directly within their formal
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on issues and topics that often don’t fall directly within their formal areas of responsibility. They go to meetings to help their team members
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areas of responsibility. They go to meetings to help their team members solve problems even when those problems have nothing to do with their
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solve problems even when those problems have nothing to do with their departments. And perhaps most challenging of all, they enter into dif-
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departments. And perhaps most challenging of all, they enter into dif-ficult, uncomfortable discussions, even bringing up thorny issues with COPYRIG
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ficult, uncomfortable discussions, even bringing up thorny issues with colleagues about their shortcomings, in order to solve problems that COPYRIG
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colleagues about their shortcomings, in order to solve problems that NOT FOR R
ESALEto be reduced in order to help out another department that needs it
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to be reduced in order to help out another department that needs it more. But that’s what members of real teams do.
NOT FOR RESALEmore. But that’s what members of real teams do.
There are other sacrifices that team members have to make beyond
NOT FOR RESALEThere are other sacrifices that team members have to make beyond
these tangible ones, and they come about on a much more regular
NOT FOR RESALE
these tangible ones, and they come about on a much more regular basis—often daily. Two big ones are time and emotion.
NOT FOR RESALE
basis—often daily. Two big ones are time and emotion.Members of cohesive teams spend many hours working together
NOT FOR RESALE
Members of cohesive teams spend many hours working together on issues and topics that often don’t fall directly within their formal
NOT FOR RESALE
on issues and topics that often don’t fall directly within their formal areas of responsibility. They go to meetings to help their team members
NOT FOR RESALE
areas of responsibility. They go to meetings to help their team members solve problems even when those problems have nothing to do with their
NOT FOR RESALE
solve problems even when those problems have nothing to do with their departments. And perhaps most challenging of all, they enter into dif-NOT FOR R
ESALE
departments. And perhaps most challenging of all, they enter into dif-ficult, uncomfortable discussions, even bringing up thorny issues with NOT FOR R
ESALE
ficult, uncomfortable discussions, even bringing up thorny issues with
Patrick Lencioni—The Advantage
La
The Advantage
26
important goal within the organization is to increase sales, then every member of the team shares that goal. It isn’t just the responsibility of the head of sales. No one on a cohesive team can say, Well, I did my job. Our failure isn’t my fault.
This is another concept that plenty of leadership teams say they believe in but that few really embrace. Most of them rely far too heavily on people working exclusively within their areas of expertise, handing out different objectives to different team members based on their titles and management responsibilities. And while there will always be a need for division of labor and departmental expertise, leadership team members must see their goals as collective and shared when it comes to managing the top priorities of the greater organization.
Finally, if a team shares a common objective, a good portion of their compensation or reward structure, though not necessarily all of it, should be based on the achievement of that common objective. When leaders preach teamwork but exclusively reward individual achievement, they are confusing their people and creating an obstacle to true team behavior.
Okay, now that I’ve put forward a general definition of what I mean by a leadership team, let’s focus on the steps for building a cohesive one. At the heart of the process lie five behavioral principles that every team must embrace:
Results
Accountability
Commitment
Conflict
Trust
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out different objectives to different team members based on their titles
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out different objectives to different team members based on their titles and management responsibilities. And while there will always be a need
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for division of labor and departmental expertise, leadership team
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for division of labor and departmental expertise, leadership team members must see their goals as collective and shared when it comes
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members must see their goals as collective and shared when it comes to managing the top priorities of the greater organization.
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to managing the top priorities of the greater organization.Finally, if a team shares a common objective, a good portion of their
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Finally, if a team shares a common objective, a good portion of their compensation or reward structure, though not necessarily all of it, should
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compensation or reward structure, though not necessarily all of it, should be based on the achievement of that common objective. When leaders
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be based on the achievement of that common objective. When leaders
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preach teamwork but exclusively reward individual achievement, they are
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preach teamwork but exclusively reward individual achievement, they are confusing their people and creating an obstacle to true team behavior.
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confusing their people and creating an obstacle to true team behavior.Okay, now that I’ve put forward a general definition of what I mean by
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Okay, now that I’ve put forward a general definition of what I mean by a leadership team, let’s focus on the steps for building a cohesive one. At the
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a leadership team, let’s focus on the steps for building a cohesive one. At the
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heart of the process lie five behavioral principles that every team must embrace:
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heart of the process lie five behavioral principles that every team must embrace:
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to managing the top priorities of the greater organization.
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to managing the top priorities of the greater organization.Finally, if a team shares a common objective, a good portion of their
NOT FOR RESALEFinally, if a team shares a common objective, a good portion of their
compensation or reward structure, though not necessarily all of it, should
NOT FOR RESALEcompensation or reward structure, though not necessarily all of it, should
be based on the achievement of that common objective. When leaders
NOT FOR RESALE
be based on the achievement of that common objective. When leaders
NOT FOR RESALE
preach teamwork but exclusively reward individual achievement, they are
NOT FOR RESALE
preach teamwork but exclusively reward individual achievement, they are confusing their people and creating an obstacle to true team behavior.
NOT FOR RESALE
confusing their people and creating an obstacle to true team behavior.Okay, now that I’ve put forward a general definition of what I mean by
NOT FOR RESALE
Okay, now that I’ve put forward a general definition of what I mean by a leadership team, let’s focus on the steps for building a cohesive one. At the
NOT FOR RESALE
a leadership team, let’s focus on the steps for building a cohesive one. At the
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heart of the process lie five behavioral principles that every team must embrace:
NOT FOR RESALE
heart of the process lie five behavioral principles that every team must embrace:
Patrick Lencioni—The Advantage
La
Discipline 1: Build a Cohesive Leadership Team
27
BeHAvIOR 1: BUILDIng TRUST
Members of a truly cohesive team must trust one another. I realize that sounds like the most patently obvious statement ever made, something that every organization understands and values. As a result, you’d think that most leadership teams would be pretty good at building trust. As it turns out, they aren’t, and I think a big part of it is that they have the wrong idea about what trust is.
Many people think of trust in a predictive sense; if you can come to know how a person will behave in a given situation, you can trust her. I’ve known Sarah for years, and I can trust that when she says she’s going to do something, she’ll follow through. As laudable as that might be, it’s not the kind of trust that lies at the foundation of building a great team.
The kind of trust that is necessary to build a great team is what I call vulnerability-based trust. This is what happens when members get to a point where they are completely comfortable being transparent, honest, and naked with one another, where they say and genuinely mean things like “I screwed up,” “I need help,” “Your idea is better than mine,” “I wish I could learn to do that as well as you do,” and even, “I’m sorry.”
When everyone on a team knows that everyone else is vulnerable enough to say and mean those things, and that no one is going to hide his or her weaknesses or mistakes, they develop a deep and uncommon sense of trust. They speak more freely and fearlessly with one another and don’t waste time and energy putting on airs or pretending to be someone they’re not. Over time, this creates a bond that exceeds what many people ever experience in their lives and, sometimes, unfortuna tely, even in their families.
At the heart of vulnerability lies the willingness of people to abandon their pride and their fear, to sacrifice their egos for the collec-tive good of the team. While this can be a little threatening and uncom-fortable at first, ultimately it becomes liberating for people who are
Lencioni_1522_c03_main.indd 27 1/28/2012 1:50:20 PM
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ATERIAL Many people think of trust in a predictive sense; if you can come to
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know how a person will behave in a given situation, you can trust her.
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know how a person will behave in a given situation, you can trust her. I’ve known Sarah for years, and I can trust that when she says she’s going to
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I’ve known Sarah for years, and I can trust that when she says she’s going to As laudable as that might be, it’s not
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As laudable as that might be, it’s not the kind of trust that lies at the foundation of building a great team.
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the kind of trust that lies at the foundation of building a great team.The kind of trust that is necessary to build a great team is what I
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The kind of trust that is necessary to build a great team is what I This is what happens when members get
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This is what happens when members get to a point where they are completely comfortable being transparent,
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to a point where they are completely comfortable being transparent,
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honest, and naked with one another, where they say and genuinely
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honest, and naked with one another, where they say and genuinely mean things like “I screwed up,” “I need help,” “Your idea is better than
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mean things like “I screwed up,” “I need help,” “Your idea is better than mine,” “I wish I could learn to do that as well as you do,” and even, “I’m
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mine,” “I wish I could learn to do that as well as you do,” and even, “I’m
When everyone on a team knows that everyone else is vulnerable
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When everyone on a team knows that everyone else is vulnerable
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enough to say and mean those things, and that no one is going to hide COPYRIGHTED M
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enough to say and mean those things, and that no one is going to hide his or her weaknesses or mistakes, they develop a deep and uncommon COPYRIG
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his or her weaknesses or mistakes, they develop a deep and uncommon NOT FOR R
ESALE As laudable as that might be, it’s not
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As laudable as that might be, it’s not the kind of trust that lies at the foundation of building a great team.
NOT FOR RESALEthe kind of trust that lies at the foundation of building a great team.
The kind of trust that is necessary to build a great team is what I
NOT FOR RESALEThe kind of trust that is necessary to build a great team is what I
This is what happens when members get
NOT FOR RESALE
This is what happens when members get to a point where they are completely comfortable being transparent,
NOT FOR RESALE
to a point where they are completely comfortable being transparent,
NOT FOR RESALE
honest, and naked with one another, where they say and genuinely
NOT FOR RESALE
honest, and naked with one another, where they say and genuinely mean things like “I screwed up,” “I need help,” “Your idea is better than
NOT FOR RESALE
mean things like “I screwed up,” “I need help,” “Your idea is better than mine,” “I wish I could learn to do that as well as you do,” and even, “I’m
NOT FOR RESALE
mine,” “I wish I could learn to do that as well as you do,” and even, “I’m
When everyone on a team knows that everyone else is vulnerable NOT FOR R
ESALE
When everyone on a team knows that everyone else is vulnerable enough to say and mean those things, and that no one is going to hide NOT FOR R
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enough to say and mean those things, and that no one is going to hide
Patrick Lencioni—The Advantage
La
The Advantage
28
tired of spending time and energy overthinking their actions and man-aging interpersonal politics at work.
If this is starting to sound at all touchy-feely, rest assured that it’s nothing of the sort. It’s not about holding hands and singing songs and getting in touch with your inner child. It’s ultimately about the practical goal of maximizing the performance of a group of people. And it’s entirely achievable for both teams that are just coming together for the first time and those that have been working in a less-than-trusting environment for years.
personal HistoriesThe first part of learning to build vulnerability-based trust is a small step that is necessary because to ask people to get too vulnerable too quickly is unrealistic and unproductive. While truly vulnerable team
members eventually have to get comfortable revealing who they are, they need to start in a nonthreatening way. That’s why, during an off-site session, we take teams through a quick exercise where we ask them to tell everyone, briefly, a few things about their lives. In particu-
lar, we have them say where they were born, how many siblings they have, where they fall in the order of children, and finally, what the most interesting or difficult challenge was for them as a kid. Again, we’re not interested in their inner childhoods, just what was uniquely chal-lenging for them growing up.
This discussion takes just fifteen to twenty minutes, and it always works. No matter how many times I’ve done it with a group of leaders, I expect them to say, “Come on, Pat, we already know all about one
At the heart of vulnerability
lies the willingness of people
to abandon their pride and
their fear, to sacrifice their
egos for the collective good
of the team.
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first time and those that have been working in a less-than-trusting
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first time and those that have been working in a less-than-trusting
The first part of learning to build vulnerability-based trust is a small
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The first part of learning to build vulnerability-based trust is a small step that is necessary because to ask people to get too vulnerable too
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step that is necessary because to ask people to get too vulnerable too quickly is unrealistic and unproductive. While truly vulnerable team
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quickly is unrealistic and unproductive. While truly vulnerable team
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At the heart of vulnerability
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At the heart of vulnerability
lies the willingness of people
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lies the willingness of people
to abandon their pride and
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to abandon their pride and
their fear, to sacrifice their
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their fear, to sacrifice their
egos for the collective good
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egos for the collective good
of the team.
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of the team. NOT FOR RESALE
The first part of learning to build vulnerability-based trust is a small
NOT FOR RESALE
The first part of learning to build vulnerability-based trust is a small step that is necessary because to ask people to get too vulnerable too
NOT FOR RESALEstep that is necessary because to ask people to get too vulnerable too
quickly is unrealistic and unproductive. While truly vulnerable team
NOT FOR RESALEquickly is unrealistic and unproductive. While truly vulnerable team
members eventually have to
NOT FOR RESALE
members eventually have to get comfortable revealing
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get comfortable revealing who they are, they need to
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who they are, they need to
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NOT FOR RESALE
to abandon their pride and
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to abandon their pride and
their fear, to sacrifice their
NOT FOR RESALE
their fear, to sacrifice their
egos for the collective good
NOT FOR RESALE
egos for the collective good
Patrick Lencioni—The Advantage
La
Discipline 1: Build a Cohesive Leadership Team
29
another.” And yet that has never, ever happened. Some of the people may know one or two people on the team well, but every time I’ve done this with a leadership team, people sitting around the table are genuinely surprised at what they didn’t know about their colleagues’ backgrounds.
This inevitably leads to a newly found sense of respect because of the admiration that comes when someone realizes that one of their peers endured and overcame a hardship or accomplished something remarkable. More important, team members begin the process of getting comfortable with vulnerability when they realize that it is okay, even gratifying, to tell their peers something about themselves that they had never mentioned or been asked about before.
In addition to making people feel more comfortable being vulner-able, this discussion serves to level the playing field on the team. There is something powerful and disarming about hearing the CEO of a company talk about being bullied because he was a chubby kid or that his family struggled with grave poverty. As a consultant, I always find it amazing to witness how quickly the dynamic of a team can change after a simple twenty-minute exercise as people who thought they knew one another develop a whole new level of respect, admiration, and understanding, regardless of their job title, age, or experience.
Backstories
Members of an executive team at a large insurance company
were struggling with their CFO, a relatively older guy who
didn’t give his colleagues much freedom when it came to
managing their budgets. The consensus was that he didn’t
trust the people on the team to make decisions, so he felt
the need to micromanage them in any situation involving
expenditures. The level of frustration among the team,
directed at the CFO, had been building for years and didn’t
seem likely to diminish.
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peers endured and overcame a hardship or accomplished something
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peers endured and overcame a hardship or accomplished something remarkable. More important, team members begin the process of
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getting comfortable with vulnerability when they realize that it is okay,
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getting comfortable with vulnerability when they realize that it is okay, even gratifying, to tell their peers something about themselves that they
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even gratifying, to tell their peers something about themselves that they had never mentioned or been asked about before.
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had never mentioned or been asked about before.In addition to making people feel more comfortable being vulner-
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In addition to making people feel more comfortable being vulner-able, this discussion serves to level the playing field on the team. There
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able, this discussion serves to level the playing field on the team. There is something powerful and disarming about hearing the CEO of a
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is something powerful and disarming about hearing the CEO of a
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company talk about being bullied because he was a chubby kid or that
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company talk about being bullied because he was a chubby kid or that his family struggled with grave poverty. As a consultant, I always find
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his family struggled with grave poverty. As a consultant, I always find it amazing to witness how quickly the dynamic of a team can change
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it amazing to witness how quickly the dynamic of a team can change after a simple twenty-minute exercise as people who thought they knew
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after a simple twenty-minute exercise as people who thought they knew
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one another develop a whole new level of respect, admiration, and
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one another develop a whole new level of respect, admiration, and understanding, regardless of their job title, age, or experience.
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understanding, regardless of their job title, age, or experience.NOT FOR RESALEIn addition to making people feel more comfortable being vulner-
NOT FOR RESALEIn addition to making people feel more comfortable being vulner-
able, this discussion serves to level the playing field on the team. There
NOT FOR RESALEable, this discussion serves to level the playing field on the team. There
is something powerful and disarming about hearing the CEO of a
NOT FOR RESALE
is something powerful and disarming about hearing the CEO of a
NOT FOR RESALE
company talk about being bullied because he was a chubby kid or that
NOT FOR RESALE
company talk about being bullied because he was a chubby kid or that his family struggled with grave poverty. As a consultant, I always find
NOT FOR RESALE
his family struggled with grave poverty. As a consultant, I always find it amazing to witness how quickly the dynamic of a team can change
NOT FOR RESALE
it amazing to witness how quickly the dynamic of a team can change after a simple twenty-minute exercise as people who thought they knew
NOT FOR RESALE
after a simple twenty-minute exercise as people who thought they knew
NOT FOR RESALE
one another develop a whole new level of respect, admiration, and
NOT FOR RESALE
one another develop a whole new level of respect, admiration, and understanding, regardless of their job title, age, or experience.NOT FOR R
ESALE
understanding, regardless of their job title, age, or experience.
Patrick Lencioni—The Advantage
La
The Advantage
30
Of course, stopping there would only ensure that the trust level of a team would quickly recede to its original level after a few hours or days. The personal histories discussion is merely the first step in helping a team get more vulnerable with one another.
profilingThe next stage, though deeper than the first one, is still largely non-threatening. It involves using a behavioral profiling tool that can give team members deeper insights into themselves and their peers. We prefer the Myers-Briggs Type Indicator, because it is widely used and understood, and seems remarkably accurate. However, there are other workable tools out there as well.
Then the team did the personal histories exercise. When
it came time for the CFO to describe his family situation and
childhood, he explained that he grew up in Chicago in the
1950s and that his family was really, really poor. He had no
indoor plumbing during part of his childhood, and the electri-
cal service in his home was inconsistent at best. You’d have
thought the guy grew up during the 1850s.
After he finished explaining what it was like for him
growing up, he did his best to make the following comment
in a matter-of-fact way, though his underlying emotion was
undeniable: “So that’s probably why I’m so tight with the
money. I don’t ever want to be poor like that again.”
The room was silent as everyone digested the subtle
magnitude of that statement. It was amazing to watch the
executives immediately begin to reassess their attitudes
toward the CFO, and a new level of dialogue quickly ensued
about the way that they discussed expenses. That would not
have happened had they not taken the time to understand
one another from a basic human perspective.
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ATERIAL growing up, he did his best to make the following comment
in a matter-of-fact way, though his underlying emotion was
COPYRIGHTED M
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undeniable: “So that’s probably why I’m so tight with the
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undeniable: “So that’s probably why I’m so tight with the
money. I don’t ever want to be poor like that again.”
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money. I don’t ever want to be poor like that again.”
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The room was silent as everyone digested the subtle
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The room was silent as everyone digested the subtle
magnitude of that statement. It was amazing to watch the
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magnitude of that statement. It was amazing to watch the
executives immediately begin to reassess their attitudes
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executives immediately begin to reassess their attitudes
toward the CFO, and a new level of dialogue quickly ensued
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toward the CFO, and a new level of dialogue quickly ensued
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about the way that they discussed expenses. That would not
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about the way that they discussed expenses. That would not
have happened had they not taken the time to understand
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have happened had they not taken the time to understand
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Of course, stopping there would only ensure that the trust level of
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Of course, stopping there would only ensure that the trust level of a team would quickly recede to its original level after a few hours or
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a team would quickly recede to its original level after a few hours or days. The personal histories discussion is merely the first step in helping COPYRIG
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days. The personal histories discussion is merely the first step in helping a team get more vulnerable with one another.COPYRIG
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a team get more vulnerable with one another.
one another from a basic human perspective.
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one another from a basic human perspective.
NOT FOR RESALE
The room was silent as everyone digested the subtle
NOT FOR RESALE
The room was silent as everyone digested the subtle
magnitude of that statement. It was amazing to watch the
NOT FOR RESALEmagnitude of that statement. It was amazing to watch the
executives immediately begin to reassess their attitudes
NOT FOR RESALEexecutives immediately begin to reassess their attitudes
toward the CFO, and a new level of dialogue quickly ensued
NOT FOR RESALE
toward the CFO, and a new level of dialogue quickly ensued
NOT FOR RESALE
about the way that they discussed expenses. That would not
NOT FOR RESALE
about the way that they discussed expenses. That would not
have happened had they not taken the time to understand
NOT FOR RESALE
have happened had they not taken the time to understand
NOT FOR RESALE
Of course, stopping there would only ensure that the trust level of
NOT FOR RESALE
Of course, stopping there would only ensure that the trust level of a team would quickly recede to its original level after a few hours or
NOT FOR RESALE
a team would quickly recede to its original level after a few hours or days. The personal histories discussion is merely the first step in helping NOT FOR R
ESALE
days. The personal histories discussion is merely the first step in helping
one another from a basic human perspective.
NOT FOR RESALE
one another from a basic human perspective.
Patrick Lencioni—The Advantage
La
Discipline 1: Build a Cohesive Leadership Team
31
The key to the usefulness of profiling tools is that the information that is uncovered is neutral; in other words, there are no good or bad types. Everything is valid, and every type of team member is as useful as the next. That may sound like something a kindergarten teacher would tell her students, but it’s both true and important. Every person has many natural tendencies that are useful and helpful to a team and a few that are not.
The goal is to get everyone on the team to identify and reveal those tendencies to their peers, both for the practical purpose of having them understand one another and to help them get comfortable being transparent and vulnerable about their shortcomings and limitations. When members of a leadership team willingly acknowledge their weak-nesses to one another, they give their peers tacit permission to call them on those weaknesses. Of course, it also serves to validate their strengths.
Sometimes it’s during the process of coming clean about weak-nesses that the biggest breakthroughs happen among team members.
myers-Briggs Breakthrough
I was working with the leadership team of a consulting firm.
I didn’t know it at the time, but two of the executives didn’t
enjoy working together, and they had a track record of not
trusting one another. As we were going through the Myers-
Briggs discussion, something amazing happened.
One of the two executives, Barry, read the one-page
description of his Myers-Briggs type aloud to the team. Part
of that description included the fact that he was a perfec-
tionist, which made him procrastinate whenever he couldn’t
do something precisely the way he thought was best.
The colleague he didn’t get along with, Tom, interrupted.
“Go back and read that again.”
Lencioni_1522_c03_main.indd 31 1/28/2012 1:50:20 PM
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The goal is to get everyone on the team to identify and reveal those
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The goal is to get everyone on the team to identify and reveal those tendencies to their peers, both for the practical purpose of having them
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ATERIAL tendencies to their peers, both for the practical purpose of having them
understand one another and to help them get comfortable being
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understand one another and to help them get comfortable being transparent and vulnerable about their shortcomings and limitations.
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transparent and vulnerable about their shortcomings and limitations. When members of a leadership team willingly acknowledge their weak-
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When members of a leadership team willingly acknowledge their weak-nesses to one another, they give their peers tacit permission to call
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nesses to one another, they give their peers tacit permission to call them on those weaknesses. Of course, it also serves to validate their
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them on those weaknesses. Of course, it also serves to validate their
Sometimes it’s during the process of coming clean about weak-
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Sometimes it’s during the process of coming clean about weak-
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nesses that the biggest breakthroughs happen among team members.
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nesses that the biggest breakthroughs happen among team members.
m
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myers-Briggs Breakthrough
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yers-Briggs Breakthrough
I was working with the leadership team of a consulting firm.
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I was working with the leadership team of a consulting firm.
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I didn’t know it at the time, but two of the executives didn’t
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I didn’t know it at the time, but two of the executives didn’t
enjoy working together, and they had a track record of not COPYRIGHTED M
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enjoy working together, and they had a track record of not NOT FOR R
ESALEWhen members of a leadership team willingly acknowledge their weak-
NOT FOR RESALE
When members of a leadership team willingly acknowledge their weak-nesses to one another, they give their peers tacit permission to call
NOT FOR RESALEnesses to one another, they give their peers tacit permission to call
them on those weaknesses. Of course, it also serves to validate their
NOT FOR RESALEthem on those weaknesses. Of course, it also serves to validate their
Sometimes it’s during the process of coming clean about weak-
NOT FOR RESALE
Sometimes it’s during the process of coming clean about weak-
NOT FOR RESALE
nesses that the biggest breakthroughs happen among team members.
NOT FOR RESALE
nesses that the biggest breakthroughs happen among team members.
yers-Briggs Breakthrough
NOT FOR RESALE
yers-Briggs Breakthrough
I was working with the leadership team of a consulting firm.
NOT FOR RESALE
I was working with the leadership team of a consulting firm.
NOT FOR RESALE
I didn’t know it at the time, but two of the executives didn’t NOT FOR RESALE
I didn’t know it at the time, but two of the executives didn’t
Patrick Lencioni—The Advantage
La
The Advantage
32
The Fundamental Attribution ErrorThis story speaks to a fascinating phenomenon that prevents people who don’t know one another well from building trust. It’s called the fundamental attribution error.4 As sophisticated and complex as it may sound, it’s really quite simple.
At the heart of the fundamental attribution error is the tendency of human beings to attribute the negative or frustrating behaviors of their colleagues to their intentions and personalities, while attribut-ing their own negative or frustrating behaviors to environmental factors. For instance, if I see a dad at the grocery store scowling at his five-year-
Barry read the description a second time, and Tom
seemed dumbfounded.
Finally, Tom said, “So, that’s part of your personality?”
Barry nodded. “Yeah, I’m like that at home too. I don’t
want to procrastinate; it’s just that I struggle when I can’t do
something perfectly.”
“I thought you were just being disrespectful to me when
you didn’t turn things around until the last minute.” Tom was
being remarkably honest. “I had no idea . . . ” He didn’t need
to finish the sentence.
The two of them just sat there, digesting the impact of
this simple but profound revelation. I could swear that both
had the first indication of tears in their eyes.
Finally, Tom said, “You know, I could help you with that
if you wanted.”
Barry seemed legitimately relieved by both the offer of
help and the breakthrough in his relationship with Tom. “That
would be great.”
And then they stood up, hugged one another, and wept
like babies.
No, just kidding. But everything before the hugging part
is true.
Lencioni_1522_c03_main.indd 32 1/28/2012 1:50:20 PM
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ATERIAL He didn’t need
The two of them just sat there, digesting the impact of
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The two of them just sat there, digesting the impact of
this simple but profound revelation. I could swear that both
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this simple but profound revelation. I could swear that both
had the first indication of tears in their eyes.
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had the first indication of tears in their eyes.
Finally, Tom said, “You know, I could help you with that
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Finally, Tom said, “You know, I could help you with that
Barry seemed legitimately relieved by both the offer of
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Barry seemed legitimately relieved by both the offer of
help and the breakthrough in his relationship with Tom. “That
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help and the breakthrough in his relationship with Tom. “That
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The Fundamental Attribution ErrorCOPYRIGHTED M
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The Fundamental Attribution Error
And then they stood up, hugged one another, and wept
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And then they stood up, hugged one another, and wept
No, just kidding. But everything before the hugging part
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No, just kidding. But everything before the hugging part
NOT FOR RESALEFinally, Tom said, “You know, I could help you with that
NOT FOR RESALEFinally, Tom said, “You know, I could help you with that
Barry seemed legitimately relieved by both the offer of
NOT FOR RESALE
Barry seemed legitimately relieved by both the offer of
help and the breakthrough in his relationship with Tom. “That
NOT FOR RESALE
help and the breakthrough in his relationship with Tom. “That
NOT FOR RESALE
And then they stood up, hugged one another, and wept
NOT FOR RESALE
And then they stood up, hugged one another, and wept
No, just kidding. But everything before the hugging part
NOT FOR RESALE
No, just kidding. But everything before the hugging part
Patrick Lencioni—The Advantage
La
Discipline 1: Build a Cohesive Leadership Team
33
old daughter and wagging his finger in her face, I’m likely to conclude that the guy has an anger problem and needs some counseling. If I find myself scowling and wagging my finger at my own five-year-old, I’m likely to conclude that my behavior is caused by my unruly child or that I’m just having a tough day.
Of course, this kind of misattribution, where we give ourselves the benefit of the doubt but assume the worst about others, breaks down trust on a team. The best way to combat it is to help team members understand one another on a fundamental level and to give them as much information as possible about who a person is and why this person might act the way he or she does. By doing this, we greatly increase the likelihood that people will replace their unfair judgments with insight and empathy, qualities that allow a team to build trust and goodwill with one another. Or as the prayer of St. Francis goes, we must seek to understand more than to be understood. Though that is not always the case, the benefits of greater understanding can sometimes be staggering and immediate.
Avoiding a Costly misattribution
I was doing a two-day off-site for the executive team at a
large and geographically dispersed technology company.
Team members had flown in from around the country for the
meeting, something they did every few months.
After I finished my opening lecture about organizational
health and teamwork, we took a break. The CEO pulled me
aside and pointed out his sales vice president, Carl, and said
quietly, “I’m probably going to fire him after this off-site is
over.”
To say the least, I was surprised. The CEO didn’t go into
much detail, only to tell me he didn’t think Carl was a team
player and that he was more interested in himself than the
rest of the organization.
Lencioni_1522_c03_main.indd 33 1/28/2012 1:50:20 PM
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trust on a team. The best way to combat it is to help team members
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trust on a team. The best way to combat it is to help team members understand one another on a fundamental level and to give them as
COPYRIGHTED M
ATERIAL understand one another on a fundamental level and to give them as
much information as possible about who a person is and why this
COPYRIGHTED M
ATERIAL
much information as possible about who a person is and why this person might act the way he or she does. By doing this, we greatly
COPYRIGHTED M
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person might act the way he or she does. By doing this, we greatly increase the likelihood that people will replace their unfair judgments
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increase the likelihood that people will replace their unfair judgments with insight and empathy, qualities that allow a team to build trust and
COPYRIGHTED M
ATERIAL
with insight and empathy, qualities that allow a team to build trust and goodwill with one another. Or as the prayer of St. Francis goes, we
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goodwill with one another. Or as the prayer of St. Francis goes, we seek to understand more than to be understood.
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seek to understand more than to be understood.
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always the case, the benefits of greater understanding can sometimes
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always the case, the benefits of greater understanding can sometimes be staggering and immediate.
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be staggering and immediate.
Avoiding a Costly
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Avoiding a Costly
I was doing a two-day off-site for the executive team at a
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I was doing a two-day off-site for the executive team at a
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large and geographically dispersed technology company.
COPYRIGHTED M
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large and geographically dispersed technology company.
Team members had flown in from around the country for the COPYRIGHTED M
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Team members had flown in from around the country for the NOT FOR R
ESALEincrease the likelihood that people will replace their unfair judgments
NOT FOR RESALE
increase the likelihood that people will replace their unfair judgments with insight and empathy, qualities that allow a team to build trust and
NOT FOR RESALEwith insight and empathy, qualities that allow a team to build trust and
goodwill with one another. Or as the prayer of St. Francis goes, we
NOT FOR RESALEgoodwill with one another. Or as the prayer of St. Francis goes, we
seek to understand more than to be understood.
NOT FOR RESALE
seek to understand more than to be understood.
NOT FOR RESALE
always the case, the benefits of greater understanding can sometimes
NOT FOR RESALE
always the case, the benefits of greater understanding can sometimes
Avoiding a Costly
NOT FOR RESALE
Avoiding a Costly
I was doing a two-day off-site for the executive team at a
NOT FOR RESALE
I was doing a two-day off-site for the executive team at a
NOT FOR RESALE
large and geographically dispersed technology company. NOT FOR RESALE
large and geographically dispersed technology company.
Patrick Lencioni—The Advantage
La
The Advantage
34
After the break, we did the Myers-Briggs session, and
Carl announced to the team that he was an ESTP. Having
shared a bedroom with a brother who was an ESTP, I was
able to describe his type fairly well: “So, I’m guessing that
you don’t like protocol, and you tend to blow off meetings
and break the rules when you don’t think it helps you succeed.
You somehow always find a way to make your numbers, but
you sometimes piss people off along the way. Your team in
the field probably likes you a lot, but the people at corporate
think you’re kind of a rebel.”
People in the room started to laugh nervously at the
accuracy of my description. I pushed on.
I looked at the CEO’s Myers-Briggs type, ESTJ, and noted
that one of the things that bothered his type the most was
broken rules and lack of respect for the system. I looked over
at Carl and then back at the CEO. “He must really make you
mad sometimes.”
Carl and the CEO looked at me as if I was a fortune-teller,
and now the rest of the room broke out into robust laughter.
Based only on my basic understanding of their behavioral
preferences, I was able to describe the likely dynamic
between these two executives. Carl didn’t deny any of what
I had said, and the CEO suddenly had a whole new under-
standing of his relationship with his sales VP. Most important,
he could now attribute Carl’s behavior to the way he was
wired rather than to some attitudinal defect. That didn’t give
Carl permission to do whatever he wanted, but it certainly
allowed the CEO to take a more empathic approach to
working with him.
At the end of the meeting, the CEO pulled me aside and
said he was not going to fire Carl, a testament to the power
of using vulnerability to overcome the fundamental attribu-
tion error and build trust.
Lencioni_1522_c03_main.indd 34 1/28/2012 1:50:20 PM
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ATERIAL the field probably likes you a lot, but the people at corporate
COPYRIGHTED M
ATERIAL the field probably likes you a lot, but the people at corporate
People in the room started to laugh nervously at the
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People in the room started to laugh nervously at the
accuracy of my description. I pushed on.
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accuracy of my description. I pushed on.
I looked at the CEO’s Myers-Briggs type, ESTJ, and noted
COPYRIGHTED M
ATERIAL
I looked at the CEO’s Myers-Briggs type, ESTJ, and noted
that one of the things that bothered his type the most was
COPYRIGHTED M
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that one of the things that bothered his type the most was
broken rules and lack of respect for the system. I looked over
COPYRIGHTED M
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broken rules and lack of respect for the system. I looked over
at Carl and then back at the CEO. “He must really make you
COPYRIGHTED M
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at Carl and then back at the CEO. “He must really make you
Carl and the CEO looked at me as if I was a fortune-teller,
COPYRIGHTED M
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Carl and the CEO looked at me as if I was a fortune-teller,
COPYRIGHTED M
ATERIAL
and now the rest of the room broke out into robust laughter.
COPYRIGHTED M
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and now the rest of the room broke out into robust laughter.
Based only on my basic understanding of their behavioral
COPYRIGHTED M
ATERIAL
Based only on my basic understanding of their behavioral
preferences, I was able to describe the likely dynamic
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preferences, I was able to describe the likely dynamic
between these two executives. Carl didn’t deny any of what
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between these two executives. Carl didn’t deny any of what
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I had said, and the CEO suddenly had a whole new under-
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I had said, and the CEO suddenly had a whole new under-
standing of his relationship with his sales VP. Most important, COPYRIGHTED M
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standing of his relationship with his sales VP. Most important, NOT FOR R
ESALEI looked at the CEO’s Myers-Briggs type, ESTJ, and noted
NOT FOR RESALE
I looked at the CEO’s Myers-Briggs type, ESTJ, and noted
that one of the things that bothered his type the most was
NOT FOR RESALEthat one of the things that bothered his type the most was
broken rules and lack of respect for the system. I looked over
NOT FOR RESALEbroken rules and lack of respect for the system. I looked over
at Carl and then back at the CEO. “He must really make you
NOT FOR RESALE
at Carl and then back at the CEO. “He must really make you
Carl and the CEO looked at me as if I was a fortune-teller,
NOT FOR RESALE
Carl and the CEO looked at me as if I was a fortune-teller,
NOT FOR RESALE
and now the rest of the room broke out into robust laughter.
NOT FOR RESALE
and now the rest of the room broke out into robust laughter.
Based only on my basic understanding of their behavioral
NOT FOR RESALE
Based only on my basic understanding of their behavioral
preferences, I was able to describe the likely dynamic
NOT FOR RESALE
preferences, I was able to describe the likely dynamic
between these two executives. Carl didn’t deny any of what
NOT FOR RESALE
between these two executives. Carl didn’t deny any of what
NOT FOR RESALE
I had said, and the CEO suddenly had a whole new under-NOT FOR RESALE
I had said, and the CEO suddenly had a whole new under-
standing of his relationship with his sales VP. Most important, NOT FOR R
ESALE
standing of his relationship with his sales VP. Most important,
Patrick Lencioni—The Advantage
La
Discipline 1: Build a Cohesive Leadership Team
35
Too Much Vulnerability?Some people ask me if it’s possible for team members to be too vulner-able with one another, to leave themselves open to being hurt. My answer is no.
To believe that a person on a team can be too vulner-able is really to suggest that she would be wise to with-hold information about her weaknesses, mistakes, or need for help. This is almost never a good idea. Perhaps during the initial stages of team development, complete vulnerability is not a realistic expectation. But soon after, the only way for teams to build real trust is for team members to come clean about who they are, warts and all.
I suppose that if a team member were to come to every meeting with a laundry list of mistakes and weaknesses, that could certainly be a problem. But the problem, in fact, would be a lack of competence rather than too much vulnerability. Ouch.
Finally, it’s worth pointing out that vulnerability is not about a team member using the team as his own private therapy group. There is something uncomfortable and weird about a team member airing all of his dirty laundry in front of the team. A measure of judgment and emotional intelligence is always required, and I’ve found that the vast majority of leaders understand where to draw the line.
The Leader goes FirstAs important as it is for all members of a leadership team to commit to being vulnerable, that is not going to happen if the leader of the team, whether that person is the CEO, department head, pastor, or school principal, does not go first. If the team leader is reluctant to acknowledge his or her mistakes or fails to admit to a weakness that is
The only way for teams to
build real trust is for team
members to come clean about
who they are, warts and all.
Lencioni_1522_c03_main.indd 35 1/28/2012 1:50:20 PM
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for help. This is almost never a good idea. Perhaps during the initial
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for help. This is almost never a good idea. Perhaps during the initial stages of team development, complete vulnerability is not a realistic
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stages of team development, complete vulnerability is not a realistic expectation. But soon after, the only way for teams to build real trust
COPYRIGHTED M
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expectation. But soon after, the only way for teams to build real trust is for team members to come clean about who they are, warts and all.
COPYRIGHTED M
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is for team members to come clean about who they are, warts and all.I suppose that if a team member were to come to every meeting
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ATERIAL
I suppose that if a team member were to come to every meeting with a laundry list of mistakes and weaknesses, that could certainly be
COPYRIGHTED M
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with a laundry list of mistakes and weaknesses, that could certainly be a problem. But the problem, in fact, would be a lack of competence
COPYRIGHTED M
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a problem. But the problem, in fact, would be a lack of competence rather than too much vulnerability. Ouch.
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rather than too much vulnerability. Ouch.Finally, it’s worth pointing out that vulnerability is not about a
COPYRIGHTED M
ATERIAL
Finally, it’s worth pointing out that vulnerability is not about a team member using the team as his own private therapy group. There
COPYRIGHTED M
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team member using the team as his own private therapy group. There is something uncomfortable and weird about a team member airing all
COPYRIGHTED M
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is something uncomfortable and weird about a team member airing all of his dirty laundry in front of the team. A measure of judgment and COPYRIG
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of his dirty laundry in front of the team. A measure of judgment and emotional intelligence is always required, and I’ve found that the vast COPYRIG
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emotional intelligence is always required, and I’ve found that the vast COPYRIGHTED M
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who they are, warts and all.
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who they are, warts and all.
NOT FOR RESALE
stages of team development, complete vulnerability is not a realistic
NOT FOR RESALE
stages of team development, complete vulnerability is not a realistic expectation. But soon after, the only way for teams to build real trust
NOT FOR RESALEexpectation. But soon after, the only way for teams to build real trust
is for team members to come clean about who they are, warts and all.
NOT FOR RESALEis for team members to come clean about who they are, warts and all.
I suppose that if a team member were to come to every meeting
NOT FOR RESALE
I suppose that if a team member were to come to every meeting with a laundry list of mistakes and weaknesses, that could certainly be
NOT FOR RESALE
with a laundry list of mistakes and weaknesses, that could certainly be a problem. But the problem, in fact, would be a lack of competence
NOT FOR RESALE
a problem. But the problem, in fact, would be a lack of competence rather than too much vulnerability. Ouch.
NOT FOR RESALE
rather than too much vulnerability. Ouch.Finally, it’s worth pointing out that vulnerability is not about a
NOT FOR RESALE
Finally, it’s worth pointing out that vulnerability is not about a team member using the team as his own private therapy group. There
NOT FOR RESALE
team member using the team as his own private therapy group. There is something uncomfortable and weird about a team member airing all NOT FOR R
ESALE
is something uncomfortable and weird about a team member airing all of his dirty laundry in front of the team. A measure of judgment and NOT FOR R
ESALE
of his dirty laundry in front of the team. A measure of judgment and
Patrick Lencioni—The Advantage
La
The Advantage
36
An Invulnerable Leader
I once worked with an intimidating CEO who rarely received
unfiltered or honest feedback from the members of his lead-
ership team. At the urging of his head of human resources,
he solicited formal feedback from his team in an anonymous
survey and then failed to share the results with them for
months. Finally, the head of HR convinced him to reveal the
findings at his next staff meeting.
At that meeting, he started by reading aloud his greatest
weakness according to the survey data. He then paused, with
a slightly puzzled look on his face, and said “Hmm. What do
you guys think?” Awkwardly, the execs sitting around the table
took turns denying that it was a problem, even though the data
had been generated by their input alone. Then the CEO read
his next weakness and asked the team again what they thought.
Once again, the timid leaders, one by one, failed to own up
to the data that they had provided. It was astounding!
Finally, one brave member of the team acknowledged
that he agreed with one of the weaknesses in the report
and that he had responded to the survey in a way that
was consistent with the data. After an uncomfortable pause,
one of the other members of the team announced that
he just didn’t see the problem, and he was joined by a
chorus of other executives who left their one honest col-
league by himself to incur the disapproval of his defensive
boss.
Aside from the disappointing spectacle of weakness that
took place there, the real impact of that meeting was a clear
evident to everyone else, there is little hope that other members of the team are going to take that step themselves. In fact, it probably wouldn’t be advisable for them to do so because there is a good chance that their vulnerability would be neither encouraged nor rewarded.
Lencioni_1522_c03_main.indd 36 1/28/2012 1:50:20 PM
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ATERIAL unfiltered or honest feedback from the members of his lead-
COPYRIGHTED M
ATERIAL unfiltered or honest feedback from the members of his lead-
ership team. At the urging of his head of human resources,
COPYRIGHTED M
ATERIAL ership team. At the urging of his head of human resources,
he solicited formal feedback from his team in an anonymous
COPYRIGHTED M
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he solicited formal feedback from his team in an anonymous
survey and then failed to share the results with them for
COPYRIGHTED M
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survey and then failed to share the results with them for
months. Finally, the head of HR convinced him to reveal the
COPYRIGHTED M
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months. Finally, the head of HR convinced him to reveal the
findings at his next staff meeting.
COPYRIGHTED M
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findings at his next staff meeting.
At that meeting, he started by reading aloud his greatest
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At that meeting, he started by reading aloud his greatest
weakness according to the survey data. He then paused, with
COPYRIGHTED M
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weakness according to the survey data. He then paused, with
a slightly puzzled look on his face, and said “Hmm. What do
COPYRIGHTED M
ATERIAL
a slightly puzzled look on his face, and said “Hmm. What do
you guys think?” Awkwardly, the execs sitting around the table
COPYRIGHTED M
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you guys think?” Awkwardly, the execs sitting around the table
took turns denying that it was a problem, even though the data
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took turns denying that it was a problem, even though the data
had been generated by their input alone. Then the CEO read
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had been generated by their input alone. Then the CEO read
his next weakness and asked the team again what they thought.
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his next weakness and asked the team again what they thought.
Once again, the timid leaders, one by one, failed to own up
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Once again, the timid leaders, one by one, failed to own up
to the data that they had provided. It was astounding!
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to the data that they had provided. It was astounding!
Finally, one brave member of the team acknowledged COPYRIGHTED M
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Finally, one brave member of the team acknowledged NOT FOR R
ESALEsurvey and then failed to share the results with them for
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survey and then failed to share the results with them for
months. Finally, the head of HR convinced him to reveal the
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months. Finally, the head of HR convinced him to reveal the
At that meeting, he started by reading aloud his greatest
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At that meeting, he started by reading aloud his greatest
weakness according to the survey data. He then paused, with
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weakness according to the survey data. He then paused, with
a slightly puzzled look on his face, and said “Hmm. What do
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a slightly puzzled look on his face, and said “Hmm. What do
you guys think?” Awkwardly, the execs sitting around the table
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you guys think?” Awkwardly, the execs sitting around the table
took turns denying that it was a problem, even though the data
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took turns denying that it was a problem, even though the data
had been generated by their input alone. Then the CEO read
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had been generated by their input alone. Then the CEO read
his next weakness and asked the team again what they thought.
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his next weakness and asked the team again what they thought.
Once again, the timid leaders, one by one, failed to own up
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Once again, the timid leaders, one by one, failed to own up
to the data that they had provided. It was astounding!NOT FOR RESALE
to the data that they had provided. It was astounding!
Patrick Lencioni—The Advantage
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Discipline 1: Build a Cohesive Leadership Team
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The only way for the leader of a team to create a safe environment for his team members to be vulnerable is by stepping up and doing something that feels unsafe and uncomfortable first. By getting naked before anyone else, by taking the risk of making himself vulnerable with no guarantee that other members of the team will respond in kind, a leader demonstrates an extraordinary level of selflessness and dedication to the team. And that gives him the right, and the confidence, to ask others to do the same.
Trust is just one of five behaviors that cohesive teams must establish to build a healthy organization. However, it is by far the most impor-tant of the five because it is the foundation for the others. Simply stated, it makes teamwork possible. Only when teams build vulnerability-based trust do they put themselves in a position to embrace the other four behaviors, the next of which is the mastery of conflict.
message from the CEO to his team: I’m not going to admit
my weaknesses, so you probably shouldn’t either. From that
moment on, team members avoided admitting their mistakes
and asking one another for help. The company eventually
spiraled and was sold for a fraction of its previous value. And
while journalists and industry analysts attributed its demise
to bad decisions around strategy and products, the members
of the team knew that those were mere symptoms of the
real problem: a lack of trust that began with their CEO.
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The only way for the leader of a team to create a safe environment
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The only way for the leader of a team to create a safe environment for his team members to be vulnerable is by stepping up and doing
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for his team members to be vulnerable is by stepping up and doing something that feels unsafe and uncomfortable first. By getting naked
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something that feels unsafe and uncomfortable first. By getting naked before anyone else, by taking the risk of making himself vulnerable with
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before anyone else, by taking the risk of making himself vulnerable with no guarantee that other members of the team will respond in kind, a
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no guarantee that other members of the team will respond in kind, a leader demonstrates an extraordinary level of selflessness and dedication
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leader demonstrates an extraordinary level of selflessness and dedication to the team. And that gives him the right, and the confidence, to ask
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to the team. And that gives him the right, and the confidence, to ask others to do the same.
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others to do the same.
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Trust is just one of five behaviors that cohesive teams must establish
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Trust is just one of five behaviors that cohesive teams must establish to build a healthy organization. However, it is by far the most impor-
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to build a healthy organization. However, it is by far the most impor-tant of the five because it is the foundation for the others. Simply stated,
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tant of the five because it is the foundation for the others. Simply stated, it makes teamwork possible. Only when teams build vulnerability-
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it makes teamwork possible. Only when teams build vulnerability-
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based trust do they put themselves in a position to embrace the other COPYRIGHTED M
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based trust do they put themselves in a position to embrace the other
real problem: a lack of trust that began with their CEO.
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for his team members to be vulnerable is by stepping up and doing
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for his team members to be vulnerable is by stepping up and doing something that feels unsafe and uncomfortable first. By getting naked
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something that feels unsafe and uncomfortable first. By getting naked before anyone else, by taking the risk of making himself vulnerable with
NOT FOR RESALEbefore anyone else, by taking the risk of making himself vulnerable with
no guarantee that other members of the team will respond in kind, a
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no guarantee that other members of the team will respond in kind, a leader demonstrates an extraordinary level of selflessness and dedication
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leader demonstrates an extraordinary level of selflessness and dedication to the team. And that gives him the right, and the confidence, to ask
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to the team. And that gives him the right, and the confidence, to ask
NOT FOR RESALE
Trust is just one of five behaviors that cohesive teams must establish
NOT FOR RESALE
Trust is just one of five behaviors that cohesive teams must establish to build a healthy organization. However, it is by far the most impor-
NOT FOR RESALE
to build a healthy organization. However, it is by far the most impor-tant of the five because it is the foundation for the others. Simply stated,
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tant of the five because it is the foundation for the others. Simply stated, it makes teamwork possible. Only when teams build vulnerability-NOT FOR R
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it makes teamwork possible. Only when teams build vulnerability-based trust do they put themselves in a position to embrace the other NOT FOR R
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based trust do they put themselves in a position to embrace the other
Patrick Lencioni—The Advantage
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The Advantage
38
BeHAvIOR 2: mASTeRIng COnfLICT
Contrary to popular wisdom and behavior, conflict is not a bad thing for a team. In fact, the fear of conflict is almost always a sign of problems.
Of course, the kind of conflict I’m referring to here is not the nasty kind that centers around people or personalities. Rather, it is what I call productive ideological conflict, the willingness to disagree, even passionately when necessary, around important issues and decisions that must be made. But this can only happen when there is trust.
When team members trust one another, when they know that everyone on the team is capable of admitting when they don’t have the right answer, and when they’re willing to acknowl-
edge when someone else’s idea is better than theirs, the fear of conflict and the discomfort it entails is greatly diminished. When there is trust, conflict becomes nothing but the pursuit of truth, an attempt to find the best possible answer. It is not only okay but desirable. Conflict without trust, however, is politics, an attempt to manipulate others in order to win an argument regardless of the truth.
DiscomfortBut that’s not to say that even productive conflict isn’t a little uncom-fortable. Even among the most trusting team members, there will always be a certain level of discomfort associated with disagreement. But it will be a healthy discomfort, a sign that there is productive tension around an issue that warrants discussion and debate.
Overcoming the tendency to run from discomfort is one of the most important requirements for any leadership team—in fact, for any
When there is trust, conflict
becomes nothing but the
pursuit of truth, an attempt to
find the best possible answer.
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call productive ideological conflict, the willingness to disagree, even
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call productive ideological conflict, the willingness to disagree, even passionately when necessary, around important issues and decisions
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that must be made. But this can only happen when there is trust.
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that must be made. But this can only happen when there is trust.When team members
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When team members trust one another, when they
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trust one another, when they know that everyone on the
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know that everyone on the team is capable of admitting
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team is capable of admitting
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edge when someone else’s idea is better than theirs, the fear of conflict
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edge when someone else’s idea is better than theirs, the fear of conflict and the discomfort it entails is greatly diminished. When there is trust,
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and the discomfort it entails is greatly diminished. When there is trust, conflict becomes nothing but the pursuit of truth, an attempt to find
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conflict becomes nothing but the pursuit of truth, an attempt to find the best possible answer. It is not only okay but desirable. Conflict
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the best possible answer. It is not only okay but desirable. Conflict without trust, however, is politics, an attempt to manipulate others in COPYRIG
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find the best possible answer.
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find the best possible answer.
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trust one another, when they
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trust one another, when they know that everyone on the
NOT FOR RESALEknow that everyone on the
team is capable of admitting
NOT FOR RESALEteam is capable of admitting
when they don’t have the
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when they don’t have the right answer, and when
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right answer, and when they’re willing to acknowl-
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they’re willing to acknowl-edge when someone else’s idea is better than theirs, the fear of conflict
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edge when someone else’s idea is better than theirs, the fear of conflict and the discomfort it entails is greatly diminished. When there is trust,
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and the discomfort it entails is greatly diminished. When there is trust, conflict becomes nothing but the pursuit of truth, an attempt to find
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conflict becomes nothing but the pursuit of truth, an attempt to find the best possible answer. It is not only okay but desirable. Conflict
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the best possible answer. It is not only okay but desirable. Conflict without trust, however, is politics, an attempt to manipulate others in NOT FOR R
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without trust, however, is politics, an attempt to manipulate others in NOT FOR RESALE
Patrick Lencioni—The Advantage
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Discipline 1: Build a Cohesive Leadership Team
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Conflict Intolerance
Early in my career, I worked on a team with a CEO who
couldn’t tolerate and, in fact, actively discouraged conflict.
As a result, his staff meetings were generally boring and not
terribly useful.
One day a few of the members of the executive team
started to argue. I remember it well because it was the
most interesting thing I’d seen happen at a meeting, and
because people were finally digging into issues that
needed to be discussed. It was uncomfortable, no doubt,
as people were finally airing their frustrations with one
another about the direction of the organization. But it was
real.
Suddenly the CEO pushed back his chair, stood up, and
announced, “I don’t have time for this.” And he walked out
of the room.
His message could not have been clearer: I would rather
have boring, ineffective meetings that avoid the real issues
than have to endure the discomfort of conflict. From then
on, meetings continued to be a struggle, resulting in poor
decisions being made.
One of those decisions, a critical one about product
direction, probably didn’t get more than a few minutes
of discussion at an executive staff meeting. It turned out to
be a backbreaker, resulting in hundreds of lost jobs, lost
customers, and ultimately a greatly diminished stock price.
More than a decade later, industry analysts and former
leader. Every endeavor of importance in life, whether it is creative, athletic, interpersonal, or academic, brings with it a measure of discom-fort, calling to mind the old saying, “No pain, no gain.” And when we avoid necessary pain, we not only fail to experience the gain, we also end up making the pain worse in the long run.
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ATERIAL Early in my career, I worked on a team with a CEO who
COPYRIGHTED M
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couldn’t tolerate and, in fact, actively discouraged conflict.
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As a result, his staff meetings were generally boring and not
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As a result, his staff meetings were generally boring and not
One day a few of the members of the executive team
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One day a few of the members of the executive team
started to argue. I remember it well because it was the
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started to argue. I remember it well because it was the
most interesting thing I’d seen happen at a meeting, and
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most interesting thing I’d seen happen at a meeting, and
because people were finally digging into issues that
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because people were finally digging into issues that
needed to be discussed. It was uncomfortable, no doubt,
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needed to be discussed. It was uncomfortable, no doubt,
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as people were finally airing their frustrations with one
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as people were finally airing their frustrations with one
another about the direction of the organization. But it was
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another about the direction of the organization. But it was
Suddenly the CEO pushed back his chair, stood up, and
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Suddenly the CEO pushed back his chair, stood up, and
announced, “I don’t have time for this.” And he walked out
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announced, “I don’t have time for this.” And he walked out
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of the room.
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of the room.
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His message could not have been clearer: NOT FOR R
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One day a few of the members of the executive team
started to argue. I remember it well because it was the
NOT FOR RESALEstarted to argue. I remember it well because it was the
most interesting thing I’d seen happen at a meeting, and
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most interesting thing I’d seen happen at a meeting, and
because people were finally digging into issues that
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because people were finally digging into issues that
needed to be discussed. It was uncomfortable, no doubt,
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needed to be discussed. It was uncomfortable, no doubt,
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as people were finally airing their frustrations with one
NOT FOR RESALE
as people were finally airing their frustrations with one
another about the direction of the organization. But it was
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another about the direction of the organization. But it was
Suddenly the CEO pushed back his chair, stood up, and
NOT FOR RESALE
Suddenly the CEO pushed back his chair, stood up, and
announced, “I don’t have time for this.” And he walked out
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announced, “I don’t have time for this.” And he walked out
Patrick Lencioni—The Advantage
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The Advantage
40
conflict AvoidanceAvoiding conflict creates problems even beyond boring meetings and poorly vetted decisions, as bad as those things are. When leadership team members avoid discomfort among themselves, they only transfer
it in far greater quantities to larger groups of people throughout the organization they’re supposed to be serv-ing. In essence, they leave it to others below them to try to resolve issues that really must be addressed at the top. This contributes to employee angst and job misery as much as anything else in organiza-tional life.
As critical as conflict is, it’s important to understand that different people, different families, and different cultures participate in conflict in different ways. All other things being equal (and they almost never are), an organization in Japan will look very different from one in Italy when it comes to how it engages in conflict. And for that matter, a team in New York City may look quite different from one in Los Angeles. And that’s okay, because there is more than one way to engage in healthy conflict. What’s not okay is for team members to avoid disagreement,
When leadership team
members avoid discomfort
among themselves, they only
transfer it in far greater
quantities to larger groups
of people throughout the
organization they’re supposed
to be serving.
employees shake their heads at the apparent stupidity of
the decision. What they don’t know is that it wasn’t the
result of any intellectual deficiency, but rather the unwilling-
ness of the leader to endure the discomfort of healthy con-
flict and allow his direct reports to get to the heart of critical
issues.
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poorly vetted decisions, as bad as those things are. When leadership
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poorly vetted decisions, as bad as those things are. When leadership team members avoid discomfort among themselves, they only transfer
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team members avoid discomfort among themselves, they only transfer it in far greater quantities
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it in far greater quantities to larger groups of people
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to larger groups of people throughout the organization
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throughout the organization
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among themselves, they only
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among themselves, they only
quantities to larger groups
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quantities to larger groups
of people throughout the
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of people throughout the
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organization they’re supposed
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organization they’re supposed
to be serving.
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to be serving.
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it in far greater quantities
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it in far greater quantities to larger groups of people
NOT FOR RESALEto larger groups of people
throughout the organization
NOT FOR RESALEthroughout the organization
they’re supposed to be serv
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they’re supposed to be serving. I
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ing. Ito others below them to try
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to others below them to try
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organization they’re supposed
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organization they’re supposed
Patrick Lencioni—The Advantage
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Discipline 1: Build a Cohesive Leadership Team
41
hold back their opinions on important matters, and choose their battles carefully based on the likely cost of disagreement. That is a recipe for both bad decision making and interpersonal resentment.
Why would team members who don’t engage in conflict start to resent one another? When people fail to be honest with one another about an issue they disagree on, their disagreement around that issue festers and ferments over time until it transforms into frustration around that person.
When someone comes to a meeting and states an opinion or makes a suggestion that his teammates don’t agree with, those teammates have a choice: they can explain their disagreement and work through it, or they can withhold their opinion and allow themselves to quietly lose respect for their colleague. When team members get used to choosing the latter option—withholding their opinions—frustration inevitably sets in. Essen-tially, they’re deciding to tolerate their colleague rather than trust him.
As time goes on, they barely conceal their eye-rolling or sighs of exasperation whenever that colleague speaks. For the employee who is being merely tolerated, the treatment starts to feel hurtful and dis-respectful, which is hard for that person to understand. It isn’t difficult to see how this behavior erodes the cohesiveness of a team.
As an Irish-Italian-American, I seem to have come out of the womb ready for passionate conflict, and I was certainly able to practice it regularly during childhood. However, some of the members of my team at work came from families that rarely shouted or demonstrated outward disapproval with one another. This creates a potential problem. To mitigate it, team members have to be open and vulnerable enough to explain their conflict tendencies to one another and then find common ground. Using a profiling assessment like the Myers-Briggs can be helpful in this process because people’s attitudes toward conflict can be shaped by their personalities and behavioral preferences as much as by their families and cultural backgrounds.
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suggestion that his teammates don’t agree with, those teammates have a
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suggestion that his teammates don’t agree with, those teammates have a choice: they can explain their disagreement and work through it, or they
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choice: they can explain their disagreement and work through it, or they can withhold their opinion and allow themselves to quietly lose respect for
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can withhold their opinion and allow themselves to quietly lose respect for their colleague. When team members get used to choosing the latter
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their colleague. When team members get used to choosing the latter option—withholding their opinions—frustration inevitably sets in. Essen-
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option—withholding their opinions—frustration inevitably sets in. Essen-tially, they’re deciding to tolerate their colleague rather than trust him.
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tially, they’re deciding to tolerate their colleague rather than trust him.As time goes on, they barely conceal their eye-rolling or sighs of
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As time goes on, they barely conceal their eye-rolling or sighs of
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exasperation whenever that colleague speaks. For the employee who is
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exasperation whenever that colleague speaks. For the employee who is being merely tolerated, the treatment starts to feel hurtful and dis
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being merely tolerated, the treatment starts to feel hurtful and diswhich is hard for that person to understand. It isn’t difficult
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which is hard for that person to understand. It isn’t difficult to see how this behavior erodes the cohesiveness of a team.
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to see how this behavior erodes the cohesiveness of a team.
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As an Irish-Italian-American, I seem to have come out of the womb
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As an Irish-Italian-American, I seem to have come out of the womb ready for passionate conflict, and I was certainly able to practice it COPYRIG
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regularly during childhood. However, some of the members of my team NOT FOR R
ESALEcan withhold their opinion and allow themselves to quietly lose respect for
NOT FOR RESALE
can withhold their opinion and allow themselves to quietly lose respect for their colleague. When team members get used to choosing the latter
NOT FOR RESALEtheir colleague. When team members get used to choosing the latter
option—withholding their opinions—frustration inevitably sets in. Essen-
NOT FOR RESALEoption—withholding their opinions—frustration inevitably sets in. Essen-
tially, they’re deciding to tolerate their colleague rather than trust him.
NOT FOR RESALE
tially, they’re deciding to tolerate their colleague rather than trust him.As time goes on, they barely conceal their eye-rolling or sighs of
NOT FOR RESALE
As time goes on, they barely conceal their eye-rolling or sighs of
NOT FOR RESALE
exasperation whenever that colleague speaks. For the employee who is
NOT FOR RESALE
exasperation whenever that colleague speaks. For the employee who is being merely tolerated, the treatment starts to feel hurtful and dis
NOT FOR RESALE
being merely tolerated, the treatment starts to feel hurtful and diswhich is hard for that person to understand. It isn’t difficult
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which is hard for that person to understand. It isn’t difficult to see how this behavior erodes the cohesiveness of a team.
NOT FOR RESALE
to see how this behavior erodes the cohesiveness of a team.
NOT FOR RESALE
As an Irish-Italian-American, I seem to have come out of the womb NOT FOR RESALE
As an Irish-Italian-American, I seem to have come out of the womb ready for passionate conflict, and I was certainly able to practice it NOT FOR R
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ready for passionate conflict, and I was certainly able to practice it
Patrick Lencioni—The Advantage
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The Advantage
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conflict continuumWhen it comes to the range of different conflict dynamics in an organiza-tion, I’ve found there is a continuum of sorts. At one end of that continuum is no conflict at all. I call this artificial harmony, because it is marked by a lot of false smiling and disingenuous agreement around just about everything, at least publicly. At the other end of the continuum is relentless, nasty, and destructive conflict, with people constantly at one another’s throats. As you move away from the extreme of artificial harmony, you encounter more and more constructive conflict. Some-where in the middle of those two extremes is the demarcation line where good, constructive conflict crosses over into the destructive kind.
The Conflict Continuum
Constructive Destructive
Ideal Conflict Point
ArtificialHarmony
Mean-SpiritedPersonal Attacks
Contrary to what we see in movies and on television, where people go to meetings and argue like battle-tested generals, most organizations live somewhere fairly close to the artificial harmony end of this con-tinuum. They go out of their way to avoid direct, uncomfortable dis-agreement during meetings or doing anything that would suggest moving away from their comfortable end of the scale. Why? Because whenever they move down the line toward the middle, to that place where they’re having more and more constructive conflict, they see themselves one step closer to conflict Armageddon. So they run back to the world of passive, indirect communication and artificial agreement.
The optimal place to be on this continuum is just to the left of the demarcation line (the Ideal Conflict Point). That would be the point
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another’s throats. As you move away from the extreme of artificial
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another’s throats. As you move away from the extreme of artificial harmony, you encounter more and more constructive conflict. Some-
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where in the middle of those two extremes is the demarcation line where
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where in the middle of those two extremes is the demarcation line where good, constructive conflict crosses over into the destructive kind.
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good, constructive conflict crosses over into the destructive kind.
The Conflict Continuum
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The Conflict Continuum
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Contrary to what we see in movies and on television, where people
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live somewhere fairly close to the artificial harmony end of this con-NOT FOR R
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Destructive
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Contrary to what we see in movies and on television, where people NOT FOR RESALE
Contrary to what we see in movies and on television, where people go to meetings and argue like battle-tested generals, most organizations NOT FOR R
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go to meetings and argue like battle-tested generals, most organizations
Patrick Lencioni—The Advantage
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Discipline 1: Build a Cohesive Leadership Team
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The Benefits of Surviving Conflict
One of our consultants experienced the benefits of stepping
over the line when he was working with a leasing company.
He was helping the CEO, president, and other executives
deal with some issues relating to compensation and equity.
Evidently, changes had recently been made that weren’t
popular among many members of the team.
At one point during the awkward conversation, one of
the top sales execs looked at the president and exploded:
“You know, the real reason we’re here is that you have simply
become greedy and we’ve become nothing but highly com-
pensated laborers!”
A long, uncomfortable pause followed. The president
seemed to be in shock and the other executives were looking
at the consultant to see what he would do to salvage the situ-
ation. Resisting the temptation to dive in, he let the moment
continue so that the team would eventually reengage.
where a team is engaged in all the constructive conflict they could pos-sibly have, but never stepping over the line into destructive territory. Of course, this is impossible. In any team, and for that matter, in any family or marriage, someone at some point is going to step over the line and say or do something that isn’t constructive. But rather than fearing this, teams need to accept that it will happen and learn to manage it. They must be willing to live through the messiness of recov-ering from slightly inappropriate conflict, so that they will have the courage to go back to the best place again and again. Eventually they’ll develop the confidence that they can survive an occasional step over the line and can even get stronger and build greater trust with one another when they do. But this will never happen if executives are clinging to the side at the shallow end of the pool in the world of artificial harmony.
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ering from slightly inappropriate conflict, so that they will have the
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ering from slightly inappropriate conflict, so that they will have the
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ATERIAL courage to go back to the best place again and again. Eventually they’ll
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ATERIAL courage to go back to the best place again and again. Eventually they’ll
develop the confidence that they can survive an occasional step over
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develop the confidence that they can survive an occasional step over the line and can even get stronger and build greater trust with one
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the line and can even get stronger and build greater trust with one another when they do. But this will never happen if executives are
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another when they do. But this will never happen if executives are
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The Benefits of Surviving Conflict
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The Benefits of Surviving Conflict
One of our consultants experienced the benefits of stepping
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One of our consultants experienced the benefits of stepping
over the line when he was working with a leasing company.
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over the line when he was working with a leasing company.
He was helping the CEO, president, and other executives
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He was helping the CEO, president, and other executives
deal with some issues relating to compensation and equity.
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deal with some issues relating to compensation and equity.
Evidently, changes had recently been made that weren’t
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Evidently, changes had recently been made that weren’t
popular among many members of the team.COPYRIGHTED M
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popular among many members of the team.
clinging to the side at the shallow end of the pool in the world of
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clinging to the side at the shallow end of the pool in the world of
NOT FOR RESALE
another when they do. But this will never happen if executives are
NOT FOR RESALE
another when they do. But this will never happen if executives are
NOT FOR RESALE
The Benefits of Surviving Conflict
NOT FOR RESALE
The Benefits of Surviving Conflict
One of our consultants experienced the benefits of stepping
NOT FOR RESALE
One of our consultants experienced the benefits of stepping
over the line when he was working with a leasing company.
NOT FOR RESALE
over the line when he was working with a leasing company.
He was helping the CEO, president, and other executives
NOT FOR RESALE
He was helping the CEO, president, and other executives
deal with some issues relating to compensation and equity.
NOT FOR RESALE
deal with some issues relating to compensation and equity.
Evidently, changes had recently been made that weren’t NOT FOR RESALE
Evidently, changes had recently been made that weren’t
clinging to the side at the shallow end of the pool in the world of
NOT FOR RESALEclinging to the side at the shallow end of the pool in the world of
Patrick Lencioni—The Advantage
La
The Advantage
44
Nowhere does this tendency toward artificial harmony show itself more than in mission-driven nonprofit organizations, most notably churches. People who work in those organizations tend to have a mis-guided idea that they cannot be frustrated or disagreeable with one another. What they’re doing is confusing being nice with being kind.
Two people who trust and care about one another and are engaged in something important (that sure sounds like a mission-driven non-profit to me) should feel com-pelled to disagree with one another, sometimes passion-ately, when they see things differently. After all, the con-
Two people who trust and
care about one another and
are engaged in something
important should feel
compelled to disagree, and
sometimes passionately, when
they see things differently.
Finally, after a ten- or fifteen-second pause (which felt
like two minutes to our consultant), the angry sales exec
spoke again: “Wait a minute. That wasn’t fair. I can’t allow a
seven-year relationship to go over the cliff because I lost my
cool. So let me apologize and try that again. You guys
changed the equity policy without telling us why. It was a
change in the rules halfway through the game, and it has led
to a lot of hard feelings.”
The president accepted the apology, and suddenly the
rest of the team started airing some of the concerns that
they had been withholding for a long time. At the end of the
meeting—and this time I’m not joking—the sales exec went
over to the president and gave him a hug. It was a break-
through for the team, and it would not have happened had
someone not stepped over the line—and if the consultant
had not allowed them to work through it.
Lencioni_1522_c03_main.indd 44 1/28/2012 1:50:21 PM
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ATERIAL The president accepted the apology, and suddenly the
COPYRIGHTED M
ATERIAL The president accepted the apology, and suddenly the
rest of the team started airing some of the concerns that
COPYRIGHTED M
ATERIAL rest of the team started airing some of the concerns that
they had been withholding for a long time. At the end of the
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they had been withholding for a long time. At the end of the
meeting—and this time I’m not joking—the sales exec went
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meeting—and this time I’m not joking—the sales exec went
over to the president and gave him a hug. It was a break-
COPYRIGHTED M
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over to the president and gave him a hug. It was a break-
through for the team, and it would not have happened had
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through for the team, and it would not have happened had
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Nowhere does this tendency toward artificial harmony show itself
COPYRIGHTED M
ATERIAL
Nowhere does this tendency toward artificial harmony show itself more than in mission-driven nonprofit organizations, most notably
COPYRIGHTED M
ATERIAL
more than in mission-driven nonprofit organizations, most notably churches. People who work in those organizations tend to have a mis-
COPYRIGHTED M
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churches. People who work in those organizations tend to have a mis-guided idea that they cannot be frustrated or disagreeable with one
COPYRIGHTED M
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guided idea that they cannot be frustrated or disagreeable with one another. What they’re doing is confusing being nice with being kind.
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another. What they’re doing is confusing being nice with being kind.
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Two people who trust and COPYRIGHTED M
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Two people who trust and
someone not stepped over the line—and if the consultant
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someone not stepped over the line—and if the consultant
had not allowed them to work through it.
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had not allowed them to work through it.
NOT FOR RESALE
over to the president and gave him a hug. It was a break-
NOT FOR RESALE
over to the president and gave him a hug. It was a break-
through for the team, and it would not have happened had
NOT FOR RESALEthrough for the team, and it would not have happened had
NOT FOR RESALE
Nowhere does this tendency toward artificial harmony show itself
NOT FOR RESALE
Nowhere does this tendency toward artificial harmony show itself more than in mission-driven nonprofit organizations, most notably
NOT FOR RESALE
more than in mission-driven nonprofit organizations, most notably churches. People who work in those organizations tend to have a mis-
NOT FOR RESALE
churches. People who work in those organizations tend to have a mis-guided idea that they cannot be frustrated or disagreeable with one
NOT FOR RESALE
guided idea that they cannot be frustrated or disagreeable with one another. What they’re doing is confusing being nice with being kind.NOT FOR R
ESALE
another. What they’re doing is confusing being nice with being kind.
someone not stepped over the line—and if the consultant
NOT FOR RESALEsomeone not stepped over the line—and if the consultant
had not allowed them to work through it.
NOT FOR RESALE
had not allowed them to work through it.
Patrick Lencioni—The Advantage
La
Discipline 1: Build a Cohesive Leadership Team
45
sequences of making bad decisions are great. When leader ship team members fail to disagree around issues, not only are they increasing the likelihood of losing respect for one another and encountering destructive conflict later when people start griping in the hallways, they’re also making bad decisions and letting down the people they’re supposed to be serving. And they do this all in the name of being “nice.”
conflict ToolsEven when teams understand the importance of conflict, it is frequently difficult to get them to engage in it. That’s how powerful our cultural aversion is to discomfort. In order to break through that aversion, there are a few things that a team leader can do.
One of the best ways for leaders to raise the level of healthy conflict on a team is by mining for conflict during meetings. This happens when they suspect that unearthed disagreement is lurking in the room and gently demand that people come clean. At first, mining for conflict might seem like stirring the pot and looking for trouble. But it is quite the opposite. By looking for and exposing potential and even subtle disagreements that have not come to the surface, team leaders—and, heck, team members can do it too—avoid the destructive hallway conversations that inevitably result when people are reluctant to engage in direct, productive debate.
Another tool for increasing conflict is something I refer to as real-time permission. The idea here is that people need to get immediate feedback, the positive kind, when they start to try out this approach to conflict. And no matter how minor the nature of that initial conflict might seem, it is going to be uncomfortable.
So when a leader sees her people engaging in disagreement during a meeting, even over something relatively innocuous, she should do something that may seem counterintuitive but is remarkably helpful: interrupt. That’s right. Just as people are beginning to challenge one
Lencioni_1522_c03_main.indd 45 1/28/2012 1:50:21 PM
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ATERIAL Even when teams understand the importance of conflict, it is frequently
COPYRIGHTED M
ATERIAL Even when teams understand the importance of conflict, it is frequently
difficult to get them to engage in it. That’s how powerful our cultural
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difficult to get them to engage in it. That’s how powerful our cultural aversion is to discomfort. In order to break through that aversion, there
COPYRIGHTED M
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aversion is to discomfort. In order to break through that aversion, there are a few things that a team leader can do.
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are a few things that a team leader can do.One of the best ways for leaders to raise the level of healthy conflict
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One of the best ways for leaders to raise the level of healthy conflict mining for conflict
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mining for conflict during meetings. This happens when
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during meetings. This happens when mining for conflict during meetings. This happens when mining for conflict
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mining for conflict during meetings. This happens when mining for conflictthey suspect that unearthed disagreement is lurking in the room and
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they suspect that unearthed disagreement is lurking in the room and gently demand that people come clean. At first, mining for conflict
COPYRIGHTED M
ATERIAL
gently demand that people come clean. At first, mining for conflict might seem like stirring the pot and looking for trouble. But it is quite
COPYRIGHTED M
ATERIAL
might seem like stirring the pot and looking for trouble. But it is quite the opposite. By looking for and exposing potential and even subtle
COPYRIGHTED M
ATERIAL
the opposite. By looking for and exposing potential and even subtle disagreements that have not come to the surface, team leaders—and,
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ATERIAL
disagreements that have not come to the surface, team leaders—and, heck, team members can do it too—avoid the destructive hallway
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heck, team members can do it too—avoid the destructive hallway conversations that inevitably result when people are reluctant to engage
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conversations that inevitably result when people are reluctant to engage in direct, productive debate.COPYRIG
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in direct, productive debate.Another tool for increasing conflict is something I refer to as COPYRIG
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Another tool for increasing conflict is something I refer to as NOT FOR R
ESALEOne of the best ways for leaders to raise the level of healthy conflict
NOT FOR RESALEOne of the best ways for leaders to raise the level of healthy conflict
during meetings. This happens when
NOT FOR RESALE during meetings. This happens when
they suspect that unearthed disagreement is lurking in the room and
NOT FOR RESALE
they suspect that unearthed disagreement is lurking in the room and gently demand that people come clean. At first, mining for conflict
NOT FOR RESALE
gently demand that people come clean. At first, mining for conflict might seem like stirring the pot and looking for trouble. But it is quite
NOT FOR RESALE
might seem like stirring the pot and looking for trouble. But it is quite the opposite. By looking for and exposing potential and even subtle
NOT FOR RESALE
the opposite. By looking for and exposing potential and even subtle disagreements that have not come to the surface, team leaders—and,
NOT FOR RESALE
disagreements that have not come to the surface, team leaders—and, heck, team members can do it too—avoid the destructive hallway
NOT FOR RESALE
heck, team members can do it too—avoid the destructive hallway conversations that inevitably result when people are reluctant to engage NOT FOR R
ESALE
conversations that inevitably result when people are reluctant to engage in direct, productive debate.NOT FOR R
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in direct, productive debate.
Patrick Lencioni—The Advantage
La
The Advantage
46
Rules of engagement
One of our consultants worked with the leadership team of
a division within a large beverage company. He convinced
the VP of that division that more conflict was necessary on
the team. Unfortunately, they were having a hard time getting
people to engage in it. This is typical.
So the VP put in place two formal rules.
First, if people remained silent during discussions, he
would interpret that as disagreement. People quickly realized
that if they didn’t weigh in, a decision could not be made.
Second, at the end of every discussion, the VP would go
around the room and ask every member of his team for a
formal commitment to the decision.
These simple rules changed the nature of their meetings
and increased healthy conflict almost immediately. This
another, she should stop them for a moment to remind them that what they are doing is good.
That may sound a little patronizing, even childish, but it won’t come across that way. What it will do is give people the permission they need to overcome their guilt—and they’ll definitely be fighting off feelings of guilt—and continue to engage in healthy but uncomfortable conflict without unnecessary and distracting tension. I’ve done this with many of the teams I work with, and they are always genuinely relieved to have someone remind them, right in that moment, that they are actually helping the team by disagreeing, not hurting it. Their tension seems to melt away and they’re able to focus on resolving the issue at hand.
Another way that leaders can help their teams overcome their aver-sion to conflict is by creating clear expectations and guidelines around what it should entail.
Lencioni_1522_c03_main.indd 46 1/28/2012 1:50:21 PM
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with many of the teams I work with, and they are always genuinely
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with many of the teams I work with, and they are always genuinely
COPYRIGHTED M
ATERIAL relieved to have someone remind them, right in that moment, that they
COPYRIGHTED M
ATERIAL relieved to have someone remind them, right in that moment, that they
are actually helping the team by disagreeing, not hurting it. Their
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are actually helping the team by disagreeing, not hurting it. Their tension seems to melt away and they’re able to focus on resolving the
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tension seems to melt away and they’re able to focus on resolving the
Another way that leaders can help their teams overcome their aver-
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Another way that leaders can help their teams overcome their aver-
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Rules of
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Rules of
One of our consultants worked with the leadership team of
COPYRIGHTED M
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One of our consultants worked with the leadership team of
a division within a large beverage company. He convinced
COPYRIGHTED M
ATERIAL
a division within a large beverage company. He convinced
the VP of that division that more conflict was necessary on
COPYRIGHTED M
ATERIAL
the VP of that division that more conflict was necessary on
the team. Unfortunately, they were having a hard time getting COPYRIGHTED M
ATERIAL
the team. Unfortunately, they were having a hard time getting
sion to conflict is by creating clear expectations and guidelines around
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sion to conflict is by creating clear expectations and guidelines around
NOT FOR RESALEAnother way that leaders can help their teams overcome their aver-
NOT FOR RESALEAnother way that leaders can help their teams overcome their aver-
NOT FOR RESALE
Rules of
NOT FOR RESALE
Rules of e
NOT FOR RESALE
engagement
NOT FOR RESALE
ngagement
One of our consultants worked with the leadership team of
NOT FOR RESALE
One of our consultants worked with the leadership team of
a division within a large beverage company. He convinced
NOT FOR RESALE
a division within a large beverage company. He convinced
the VP of that division that more conflict was necessary on NOT FOR RESALE
the VP of that division that more conflict was necessary on
sion to conflict is by creating clear expectations and guidelines around
NOT FOR RESALEsion to conflict is by creating clear expectations and guidelines around
Patrick Lencioni—The Advantage
La
Discipline 1: Build a Cohesive Leadership Team
47
Finally, it’s important to remember that the reluctance to engage in conflict is not always a problem of conflict per se. In many cases, and perhaps in most of them, the real problem goes back to a lack of trust. Remember that when team members aren’t comfortable being vulnerable, they aren’t going to feel comfortable or safe engaging in conflict. If that’s the case, then no amount of training or discussion around conflict is going to bring it about. Trust must be established if real conflict is to occur.
In a similar way that trust enables conflict, conflict allows a team to move on to the next critical behavior of a cohesive team: achieving commitment.
would not have happened had the VP simply told his team
that they should engage in more conflict.
Lencioni_1522_c03_main.indd 47 1/28/2012 1:50:21 PM
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ATERIAL the case, then no amount of training or discussion around conflict is going
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ATERIAL the case, then no amount of training or discussion around conflict is going
to bring it about. Trust must be established if real conflict is to occur.
COPYRIGHTED M
ATERIAL to bring it about. Trust must be established if real conflict is to occur.
In a similar way that trust enables conflict, conflict allows a team
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In a similar way that trust enables conflict, conflict allows a team to move on to the next critical behavior of a cohesive team: achieving
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to move on to the next critical behavior of a cohesive team: achieving
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to move on to the next critical behavior of a cohesive team: achieving
NOT FOR RESALE
to move on to the next critical behavior of a cohesive team: achieving
Patrick Lencioni—The Advantage
La
The Advantage
48
BeHAvIOR 3: ACHIevIng COmmITmenT
The reason that conflict is so important is that a team cannot achieve commitment without it. People will not actively commit to a decision if they have not had the opportunity to provide input, ask questions, and understand the rationale behind it. Another way to say this is, “If people don’t weigh in, they can’t buy in.”
This is a critical point and needs to be clarified because it should not be misinterpreted as an argument for consensus. When leadership
teams wait for con sensus before taking action, they usually end up with decisions that are made too late and are mildly disagreeable to every-one. This is a recipe for medi-ocrity and frustration.
Great teams avoid the consensus trap by embrac-ing a concept that Intel, the legendary microchip manu-facturer, calls “disagree and commit.” Basically they
believe that even when people can’t come to an agreement around an issue, they must still leave the room unambiguously committed to a common course of action. Most executives who hear about this disagree-and-commit philosophy are immediately convinced that it is something they want. But they need to remember that it requires a willingness on the part of the leader to invite the discomfort of conflict. After all, the principle of disagree and commit can’t happen without the disagree part.
See, it’s only when colleagues speak up and put their opinions on the table, without holding back, that the leader can confidently fulfill
When leadership teams wait
for consensus before taking
action, they usually end up
with decisions that are made
too late and are mildly
disagreeable to everyone. This
is a recipe for mediocrity and
frustration.
Lencioni_1522_c03_main.indd 48 1/28/2012 1:50:21 PM
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This is a critical point and needs to be clarified because it should not
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This is a critical point and needs to be clarified because it should not be misinterpreted as an argument for consensus. When leadership
COPYRIGHTED M
ATERIAL be misinterpreted as an argument for consensus. When leadership
teams wait for con
COPYRIGHTED M
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teams wait for conbefore taking action, they
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before taking action, they usually end up with decisions
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usually end up with decisions that are made too late and are
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that are made too late and are mildly disagreeable to every-
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mildly disagreeable to every-
believe that even when people can’t come to an agreement around an COPYRIGHTED M
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believe that even when people can’t come to an agreement around an COPYRIGHTED M
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with decisions that are made
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with decisions that are made
disagreeable to everyone. This
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disagreeable to everyone. This
is a recipe for mediocrity and
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is a recipe for mediocrity and
NOT FOR RESALE
usually end up with decisions
NOT FOR RESALE
usually end up with decisions that are made too late and are
NOT FOR RESALEthat are made too late and are
mildly disagreeable to every-
NOT FOR RESALEmildly disagreeable to every-
one. This is a recipe for medi-
NOT FOR RESALE
one. This is a recipe for medi-ocrity and frustration.
NOT FOR RESALE
ocrity and frustration.
NOT FOR RESALE
NOT FOR RESALE
disagreeable to everyone. This
NOT FOR RESALE
disagreeable to everyone. This
is a recipe for mediocrity and
NOT FOR RESALE
is a recipe for mediocrity and
Patrick Lencioni—The Advantage
La
Discipline 1: Build a Cohesive Leadership Team
49
one of his most important responsibilities: breaking ties. When a leader knows that everyone on the team has weighed in and provided every possible perspective needed for a fully informed decision, he can then bring a discussion to a clear and unambiguous close and expect team members to rally around the final decision even if they initially dis-agreed with it.
Some leaders have a hard time believing this. They feel that if they entertain disagreement around a contentious topic, they’ll make it less likely that they’ll be able to gain commitment. But this is selling their employees short. The truth is, very few people in the world are incapable of supporting a decision merely because they had a different idea. Most people are generally reasonable and can rally around an idea that wasn’t their own as long as they know they’ve had a chance to weigh in. But when there has been no conflict, when dif-ferent opinions have not been aired and debated, it becomes virtually impossible for team members to commit to a decision, at least not actively.
When people leave a meeting without active commitment around a decision, they don’t go back to their offices and design a plan to sabo-tage the idea. That happens only on television and in the movies, and it makes for great theater. In real life, what actually happens is far more boring—and more dangerous.
Most leaders have learned the art of passive agreement: going to a meeting, smiling and nodding their heads when a decision is made that they don’t agree with. They then go back to their offices and do as little as possible to support that idea. They don’t promote it on their own team, and they certainly aren’t willing to run out onto the tracks waving their arms to prevent a train wreck. Instead, they sit back and watch problems develop, quietly looking forward to the day when things go badly and they can say, “Well, I never really liked that idea in the first place.” The impact of this is often embarrassing and costly for the organization.
Lencioni_1522_c03_main.indd 49 1/28/2012 1:50:21 PM
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they entertain disagreement around a contentious topic, they’ll
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they entertain disagreement around a contentious topic, they’ll make it less likely that they’ll be able to gain commitment. But this
COPYRIGHTED M
ATERIAL make it less likely that they’ll be able to gain commitment. But this
is selling their employees short. The truth is, very few people in the
COPYRIGHTED M
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is selling their employees short. The truth is, very few people in the world are incapable of supporting a decision merely because they had
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world are incapable of supporting a decision merely because they had a different idea. Most people are generally reasonable and can rally
COPYRIGHTED M
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a different idea. Most people are generally reasonable and can rally around an idea that wasn’t their own as long as they know they’ve had
COPYRIGHTED M
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around an idea that wasn’t their own as long as they know they’ve had a chance to weigh in. But when there has been no conflict, when dif-
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a chance to weigh in. But when there has been no conflict, when dif-ferent opinions have not been aired and debated, it becomes virtually
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ferent opinions have not been aired and debated, it becomes virtually
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impossible for team members to commit to a decision, at least not
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impossible for team members to commit to a decision, at least not
When people leave a meeting without active commitment around
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When people leave a meeting without active commitment around a decision, they don’t go back to their offices and design a plan to sabo-
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a decision, they don’t go back to their offices and design a plan to sabo-tage the idea. That happens only on television and in the movies, and
COPYRIGHTED M
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tage the idea. That happens only on television and in the movies, and
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it makes for great theater. In real life, what actually happens is far more
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it makes for great theater. In real life, what actually happens is far more boring—and more dangerous.COPYRIG
HTED MATERIA
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boring—and more dangerous.Most leaders have learned the art of passive agreement: going to a COPYRIG
HTED MATERIA
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Most leaders have learned the art of passive agreement: going to a NOT FOR R
ESALEa different idea. Most people are generally reasonable and can rally
NOT FOR RESALE
a different idea. Most people are generally reasonable and can rally around an idea that wasn’t their own as long as they know they’ve had
NOT FOR RESALEaround an idea that wasn’t their own as long as they know they’ve had
a chance to weigh in. But when there has been no conflict, when dif-
NOT FOR RESALEa chance to weigh in. But when there has been no conflict, when dif-
ferent opinions have not been aired and debated, it becomes virtually
NOT FOR RESALE
ferent opinions have not been aired and debated, it becomes virtually
NOT FOR RESALE
impossible for team members to commit to a decision, at least not
NOT FOR RESALE
impossible for team members to commit to a decision, at least not
When people leave a meeting without active commitment around
NOT FOR RESALE
When people leave a meeting without active commitment around a decision, they don’t go back to their offices and design a plan to sabo-
NOT FOR RESALE
a decision, they don’t go back to their offices and design a plan to sabo-tage the idea. That happens only on television and in the movies, and
NOT FOR RESALE
tage the idea. That happens only on television and in the movies, and
NOT FOR RESALE
it makes for great theater. In real life, what actually happens is far more NOT FOR RESALE
it makes for great theater. In real life, what actually happens is far more boring—and more dangerous.NOT FOR R
ESALE
boring—and more dangerous.
Patrick Lencioni—The Advantage
La
The Advantage
50
The price of passivity
The leadership team at an international pharmaceutical
company realized that its sales were beginning to decline
and that its expenses were heading in the opposite direction.
During a staff meeting, the CEO decided that in an effort to
curb costs, a moratorium would be placed on all first-class
and business-class air travel. This would not be easy for
people who traveled frequently and far.
As usual, no debate was encouraged among the
team. Executives simply nodded their heads in agreement,
something the CEO was all too happy to accept as
commitment.
Well, half of the executives at the meeting went to their
teams and gave them the unpopular order to change the
way they traveled. The other half told their staff members to
ignore the decree. When people in the organization started
to notice the discrepancy in behavior among departments,
anger and frustration broke out.
Employees in the obedient departments were upset at
their respective leaders for holding them to a higher and
more difficult standard than their peers in other parts of
the organization. Those leaders were mad at their colleagues
on the executive team who had ignored the supposed
agreement.
The cost of not achieving real commitment—a result of
not engaging in healthy conflict—was undeniable. Forget
about the financial cost of people continuing to fly business
class. It pales in comparison to the loss in credibility that
executives encountered and the internal politics that they
created because they failed to achieve real, active commit-
ment around a decision.
Lencioni_1522_c03_main.indd 50 1/28/2012 1:50:21 PM
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ATERIAL As usual, no debate was encouraged among the
COPYRIGHTED M
ATERIAL As usual, no debate was encouraged among the
team. Executives simply nodded their heads in agreement,
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team. Executives simply nodded their heads in agreement,
something the CEO was all too happy to accept as
COPYRIGHTED M
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something the CEO was all too happy to accept as
Well, half of the executives at the meeting went to their
COPYRIGHTED M
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Well, half of the executives at the meeting went to their
teams and gave them the unpopular order to change the
COPYRIGHTED M
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teams and gave them the unpopular order to change the
way they traveled. The other half told their staff members to
COPYRIGHTED M
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way they traveled. The other half told their staff members to
ignore the decree. When people in the organization started
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ignore the decree. When people in the organization started
to notice the discrepancy in behavior among departments,
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to notice the discrepancy in behavior among departments,
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anger and frustration broke out.
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anger and frustration broke out.
Employees in the obedient departments were upset at
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Employees in the obedient departments were upset at
their respective leaders for holding them to a higher and
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their respective leaders for holding them to a higher and
more difficult standard than their peers in other parts of
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more difficult standard than their peers in other parts of
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the organization. Those leaders were mad at their colleagues
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the organization. Those leaders were mad at their colleagues
on the executive team who had ignored the supposed COPYRIGHTED M
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on the executive team who had ignored the supposed
agreement.COPYRIGHTED M
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agreement.
NOT FOR RESALEWell, half of the executives at the meeting went to their
NOT FOR RESALEWell, half of the executives at the meeting went to their
teams and gave them the unpopular order to change the
NOT FOR RESALEteams and gave them the unpopular order to change the
way they traveled. The other half told their staff members to
NOT FOR RESALE
way they traveled. The other half told their staff members to
ignore the decree. When people in the organization started
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ignore the decree. When people in the organization started
to notice the discrepancy in behavior among departments,
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to notice the discrepancy in behavior among departments,
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anger and frustration broke out.
NOT FOR RESALE
anger and frustration broke out.
Employees in the obedient departments were upset at
NOT FOR RESALE
Employees in the obedient departments were upset at
their respective leaders for holding them to a higher and
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their respective leaders for holding them to a higher and
more difficult standard than their peers in other parts of
NOT FOR RESALE
more difficult standard than their peers in other parts of
NOT FOR RESALE
the organization. Those leaders were mad at their colleagues NOT FOR RESALE
the organization. Those leaders were mad at their colleagues
on the executive team who had ignored the supposed NOT FOR RESALE
on the executive team who had ignored the supposed
Patrick Lencioni—The Advantage
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Discipline 1: Build a Cohesive Leadership Team
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The only way to prevent passive sabotage is for leaders to demand conflict from their team members and to let them know that they are going to be held accountable for doing whatever the team ultimately decides.
specific AgreementsI’ve always been amazed that even teams that embrace conflict and honest debate can still struggle with commitment. That’s because they fall short of arriving at specific agreements at the end of their discus-sions. Although they are sitting in the same room and speaking the same language, they often leave with different ideas about what was just decided. There is only one way I know to prevent this.
At the end of every meeting, cohesive teams must take a few minutes to ensure that everyone sitting at the table is walking away with the same understanding about what has been agreed to and what they are committed to do. Unfortunately, people are usually eager to leave the room when a meeting is coming to a close, and so they are more than susceptible to tolerating a little ambiguity. That’s why functional teams maintain the discipline to review their commit-ments and stick around long enough to clarify anything that isn’t crystal clear.
A good way to ensure that people take this process seriously is to demand that they go back to their teams after the meeting and com-municate exactly what was agreed on. When team members know that they are going to have to stand in front of the people they lead and vouch for a decision, they are much more likely to push back on that decision if they don’t understand it or don’t agree with it. As painful as this may be to a group of executives who are more than ready to get out of a meeting, the only thing more painful than taking additional time to get clarity and commitment is going out into the organization with a confusing and misaligned message.
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honest debate can still struggle with commitment. That’s because they
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honest debate can still struggle with commitment. That’s because they fall short of arriving at specific agreements at the end of their discus-
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ATERIAL fall short of arriving at specific agreements at the end of their discus-
sions. Although they are sitting in the same room and speaking the
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sions. Although they are sitting in the same room and speaking the same language, they often leave with different ideas about what was
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same language, they often leave with different ideas about what was just decided. There is only one way I know to prevent this.
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just decided. There is only one way I know to prevent this.At the end of every meeting, cohesive teams must take a few
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At the end of every meeting, cohesive teams must take a few minutes to ensure that everyone sitting at the table is walking away
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minutes to ensure that everyone sitting at the table is walking away with the same understanding about what has been agreed to and
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with the same understanding about what has been agreed to and
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what they are committed to do. Unfortunately, people are usually
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what they are committed to do. Unfortunately, people are usually eager to leave the room when a meeting is coming to a close, and so
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eager to leave the room when a meeting is coming to a close, and so they are more than susceptible to tolerating a little ambiguity. That’s
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they are more than susceptible to tolerating a little ambiguity. That’s why functional teams maintain the discipline to review their commit-
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why functional teams maintain the discipline to review their commit-
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ments and stick around long enough to clarify anything that isn’t crystal
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ments and stick around long enough to clarify anything that isn’t crystal
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A good way to ensure that people take this process seriously is to demand that they go back to their teams after the meeting and com-COPYRIG
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demand that they go back to their teams after the meeting and com-NOT FOR R
ESALEjust decided. There is only one way I know to prevent this.
NOT FOR RESALE
just decided. There is only one way I know to prevent this.At the end of every meeting, cohesive teams must take a few
NOT FOR RESALEAt the end of every meeting, cohesive teams must take a few
minutes to ensure that everyone sitting at the table is walking away
NOT FOR RESALEminutes to ensure that everyone sitting at the table is walking away
with the same understanding about what has been agreed to and
NOT FOR RESALE
with the same understanding about what has been agreed to and
NOT FOR RESALE
what they are committed to do. Unfortunately, people are usually
NOT FOR RESALE
what they are committed to do. Unfortunately, people are usually eager to leave the room when a meeting is coming to a close, and so
NOT FOR RESALE
eager to leave the room when a meeting is coming to a close, and so they are more than susceptible to tolerating a little ambiguity. That’s
NOT FOR RESALE
they are more than susceptible to tolerating a little ambiguity. That’s why functional teams maintain the discipline to review their commit-
NOT FOR RESALE
why functional teams maintain the discipline to review their commit-
NOT FOR RESALE
ments and stick around long enough to clarify anything that isn’t crystal
NOT FOR RESALE
ments and stick around long enough to clarify anything that isn’t crystal
A good way to ensure that people take this process seriously is to NOT FOR RESALE
A good way to ensure that people take this process seriously is to
Patrick Lencioni—The Advantage
La
The Advantage
52
misalignment nightmare
One of our consultants worked with the leadership team of
an information technology organization to clarify the depart-
ment’s core purpose and values. After the meeting, the con-
sultant encouraged the team to keep working until they were
crystal clear with one another about the purpose and values
before doing any communication to the rest of the
organization.
The team promised to meet again later to iron out any
possible inconsistencies. Unfortunately, they never got
around to doing that and decided to go ahead and have a
big rollout meeting to unveil the new purpose and values to
the more than fifty managers who worked for them.
At that meeting, a handful of leaders from the executive
team began the presentation and were quickly met with
push-back around their ideas. Unfortunately, that push-back
came not from one of the fifty managers but from a member
of the executive team who decided to announce that he never
really liked or bought into what was being presented.
The people in the room were dumbfounded. Not only did
the executive team’s failure to get commitment negate the
impact of the work they had done, it also caused them to
lose credibility among the people they were trying to lead.
“We looked foolish, and rightly so,” admitted the leader of the
executive team. “We couldn’t even agree among ourselves,
and we were out there asking the rest of the organization to
get on board. I vowed that it would never happen again.”
After the next executive off-site meeting, the team
insisted on getting completely clear about the commitments
they were making. And when they communicated to the
larger group, not only did they demonstrate alignment, but
they modeled vulnerability by acknowledging the dysfunc-
tion of what had happened before and the steps they would
take to prevent it in the future.
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ATERIAL The team promised to meet again later to iron out any
possible inconsistencies. Unfortunately, they never got
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possible inconsistencies. Unfortunately, they never got
around to doing that and decided to go ahead and have a
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around to doing that and decided to go ahead and have a
big rollout meeting to unveil the new purpose and values to
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big rollout meeting to unveil the new purpose and values to
the more than fifty managers who worked for them.
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the more than fifty managers who worked for them.
At that meeting, a handful of leaders from the executive
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At that meeting, a handful of leaders from the executive
team began the presentation and were quickly met with
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team began the presentation and were quickly met with
push-back around their ideas. Unfortunately, that push-back
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push-back around their ideas. Unfortunately, that push-back
came not from one of the fifty managers but from a member
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came not from one of the fifty managers but from a member
of the executive team who decided to announce that he never
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of the executive team who decided to announce that he never
really liked or bought into what was being presented.
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really liked or bought into what was being presented.
The people in the room were dumbfounded. Not only did
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The people in the room were dumbfounded. Not only did
the executive team’s failure to get commitment negate the
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the executive team’s failure to get commitment negate the
impact of the work they had done, it also caused them to
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impact of the work they had done, it also caused them to
lose credibility among the people they were trying to lead. COPYRIGHTED M
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lose credibility among the people they were trying to lead.
“We looked foolish, and rightly so,” admitted the leader of the COPYRIGHTED M
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“We looked foolish, and rightly so,” admitted the leader of the
NOT FOR RESALE
big rollout meeting to unveil the new purpose and values to
NOT FOR RESALE
big rollout meeting to unveil the new purpose and values to
the more than fifty managers who worked for them.
NOT FOR RESALEthe more than fifty managers who worked for them.
At that meeting, a handful of leaders from the executive
NOT FOR RESALEAt that meeting, a handful of leaders from the executive
team began the presentation and were quickly met with
NOT FOR RESALE
team began the presentation and were quickly met with
push-back around their ideas. Unfortunately, that push-back
NOT FOR RESALE
push-back around their ideas. Unfortunately, that push-back
came not from one of the fifty managers but from a member
NOT FOR RESALE
came not from one of the fifty managers but from a member
of the executive team who decided to announce that he never
NOT FOR RESALE
of the executive team who decided to announce that he never
really liked or bought into what was being presented.
NOT FOR RESALE
really liked or bought into what was being presented.
The people in the room were dumbfounded. Not only did
NOT FOR RESALE
The people in the room were dumbfounded. Not only did
the executive team’s failure to get commitment negate the
NOT FOR RESALE
the executive team’s failure to get commitment negate the
impact of the work they had done, it also caused them to NOT FOR RESALE
impact of the work they had done, it also caused them to
lose credibility among the people they were trying to lead. NOT FOR RESALE
lose credibility among the people they were trying to lead.
Patrick Lencioni—The Advantage
La
Discipline 1: Build a Cohesive Leadership Team
53
Although few would doubt the importance of achieving active and clear commitment at the end of a discussion, many don’t really think about the practical reason that that is so critical. It’s only when people know that their peers have completely bought in to a decision that they will have the courage to embrace the fourth and most difficult behavior of a cohesive team: accountability.
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NOT FOR RESALE
Patrick Lencioni—The Advantage
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The Advantage
54
BeHAvIOR 4: emBRACIng ACCOUnTABILITY
Even well-intentioned members of a team need to be held accountable if a team is going to stick to its decisions and accomplish its goals. In some cases, people will deviate from a plan or a decision knowingly, tempted to do something that is in their individual best interest but not that of the team. In other cases, people will stray without realizing it, getting distracted or caught up in the pushes and pulls of daily work. In either case, it’s the job of the team to call those people out and keep them in line.
Of course, people aren’t going to be willing to do this if they have doubts about whether their peers bought into—really bought into—the decisions that were made. That’s why commitment is so important. When colleagues know that there has been only passive commitment around a decision, they aren’t going to feel good about confronting a peer about their behavior. Nor should they. After all, if a person never really bought into something, why would she heed a reminder from a peer who points out her deviation?
peer pressureNotice that I’m focused here on peers. That’s because peer-to-peer accountability is the primary and most effective source of accountability
on the leadership team of a healthy organization. Most people assume that the leader of an executive team should be the primary source of accountability—and that’s the norm in most unhealthy
organizations—but it isn’t efficient or practical, and it makes little sense.
Peer-to-peer accountability is
the primary and most effective
source of accountability on
a leadership team.
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it, getting distracted or caught up in the pushes and pulls of daily work.
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it, getting distracted or caught up in the pushes and pulls of daily work. In either case, it’s the job of the team to call those people out and keep
COPYRIGHTED M
ATERIAL In either case, it’s the job of the team to call those people out and keep
Of course, people aren’t going to be willing to do this if they have
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Of course, people aren’t going to be willing to do this if they have doubts about whether their peers bought into—really bought into—
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doubts about whether their peers bought into—really bought into—the decisions that were made. That’s why commitment is so important.
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the decisions that were made. That’s why commitment is so important. When colleagues know that there has been only passive commitment
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When colleagues know that there has been only passive commitment around a decision, they aren’t going to feel good about confronting a
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around a decision, they aren’t going to feel good about confronting a peer about their behavior. Nor should they. After all, if a person never
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peer about their behavior. Nor should they. After all, if a person never really bought into something, why would she heed a reminder from a
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really bought into something, why would she heed a reminder from a peer who points out her deviation?
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peer who points out her deviation?
essure
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essureNotice that I’m focused here on peers. That’s because peer-to-peer
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Notice that I’m focused here on peers. That’s because peer-to-peer accountability is the primary and most effective source of accountability COPYRIG
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accountability is the primary and most effective source of accountability NOT FOR RESALE
doubts about whether their peers bought into—really bought into—
NOT FOR RESALE
doubts about whether their peers bought into—really bought into—the decisions that were made. That’s why commitment is so important.
NOT FOR RESALEthe decisions that were made. That’s why commitment is so important.
When colleagues know that there has been only passive commitment
NOT FOR RESALEWhen colleagues know that there has been only passive commitment
around a decision, they aren’t going to feel good about confronting a
NOT FOR RESALE
around a decision, they aren’t going to feel good about confronting a peer about their behavior. Nor should they. After all, if a person never
NOT FOR RESALE
peer about their behavior. Nor should they. After all, if a person never really bought into something, why would she heed a reminder from a
NOT FOR RESALE
really bought into something, why would she heed a reminder from a peer who points out her deviation?
NOT FOR RESALE
peer who points out her deviation?
Notice that I’m focused here on peers. That’s because peer-to-peer NOT FOR R
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Notice that I’m focused here on peers. That’s because peer-to-peer accountability is the primary and most effective source of accountability NOT FOR R
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accountability is the primary and most effective source of accountability
Patrick Lencioni—The Advantage
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Discipline 1: Build a Cohesive Leadership Team
55
When members of a team go to their leader whenever they see a peer deviate from a commitment that was made, they create a perfect environment for distraction and politics. Colleagues start to wonder who ratted them out, they get resentful of one another, and the team leader finds herself being constantly pulled into situations that could be more quickly and productively solved without her.
When team members know that their colleagues are truly com mitted to something, they can confront one another about issues without fearing defensiveness or backlash. After all, they’re merely helping someone get back on track or seeking clarity about something that doesn’t seem right. And the person being questioned about her behavior or performance will be willing to admit that she has inadvertently lost her way—after all, she’s vulnerable—and adjust her behavior accordingly.
I realize that people who are used to working on noncohesive teams will think all of this sounds like a fairy tale. To those who have expe-rienced the reality of cohesive teams, it is simply the most effective way to keep one another focused on what matters most.
Accountability in Action
One of our consultants was working with a leadership team
that had been together for less than a year and had not met
in person with one another for a number of months. Inevita-
bly, things were a little rocky.
During an off-site meeting, our consultant led them
through an accountability exercise that calls for team
members to confront one another about each other’s behav-
iors. The exercise, which isn’t as scary as it sounds, usually
takes about an hour. But in this case, because the team had
not been together for so long and because they had made
a major commitment to holding one another accountable,
the session lasted three hours.
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to something, they can confront one another about issues without fearing
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to something, they can confront one another about issues without fearing defensiveness or backlash. After all, they’re merely helping someone get
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back on track or seeking clarity about something that doesn’t seem right.
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back on track or seeking clarity about something that doesn’t seem right. And the person being questioned about her behavior or performance will
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And the person being questioned about her behavior or performance will be willing to admit that she has inadvertently lost her way—after all, she’s
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be willing to admit that she has inadvertently lost her way—after all, she’s vulnerable—and adjust her behavior accordingly.
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vulnerable—and adjust her behavior accordingly.I realize that people who are used to working on noncohesive teams
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I realize that people who are used to working on noncohesive teams will think all of this sounds like a fairy tale. To those who have expe-
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will think all of this sounds like a fairy tale. To those who have expe-
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rienced the reality of cohesive teams, it is simply the most effective way
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rienced the reality of cohesive teams, it is simply the most effective way to keep one another focused on what matters most.
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to keep one another focused on what matters most.
Accountability in Action
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Accountability in Action
One of our consultants was working with a leadership team
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One of our consultants was working with a leadership team
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that had been together for less than a year and had not met
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that had been together for less than a year and had not met
in person with one another for a number of months. Inevita-COPYRIGHTED M
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in person with one another for a number of months. Inevita-NOT FOR R
ESALEbe willing to admit that she has inadvertently lost her way—after all, she’s
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be willing to admit that she has inadvertently lost her way—after all, she’s vulnerable—and adjust her behavior accordingly.
NOT FOR RESALEvulnerable—and adjust her behavior accordingly.
I realize that people who are used to working on noncohesive teams
NOT FOR RESALEI realize that people who are used to working on noncohesive teams
will think all of this sounds like a fairy tale. To those who have expe-
NOT FOR RESALE
will think all of this sounds like a fairy tale. To those who have expe-
NOT FOR RESALE
rienced the reality of cohesive teams, it is simply the most effective way
NOT FOR RESALE
rienced the reality of cohesive teams, it is simply the most effective way to keep one another focused on what matters most.
NOT FOR RESALE
to keep one another focused on what matters most.
Accountability in Action
NOT FOR RESALE
Accountability in Action
One of our consultants was working with a leadership team
NOT FOR RESALE
One of our consultants was working with a leadership team
NOT FOR RESALE
that had been together for less than a year and had not met NOT FOR RESALE
that had been together for less than a year and had not met
Patrick Lencioni—The Advantage
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The Advantage
56
Overcoming the “Wuss” FactorThe irony of all this is that the only way for a team to develop a true culture of peer-to-peer accountability is for the leader to demonstrate that she is willing to confront difficult situations and hold people accountable herself. That’s right. The leader of the team, though not the primary source of accountability, will always be the ultimate arbiter of it. If she is reluctant to play that role—if she is a wuss who constantly balks when it’s time to call someone on their behavior or performance—then the rest of the team is not going to do their part. This makes sense. Why would a team member want to confront a colleague about an issue when the team leader isn’t willing to and is probably going to let them off the hook anyway?
Among the comments made during the exercise were
these: “You need to keep standing up to the CEO and not
letting him off the hook when he resorts to unilateral decision
making.” “You’re involving me in conversations that I don’t
need to be involved in. Just go directly to my reports and
get what you need.” “Your reports are not telling you this,
but your sarcastic humor is offensive to them and it’s hurting
your team.” “You’re complaining about me to your peers, but
you’re not coming to me directly. That’s hurting all of us.”
“Watch out for your self-righteous attitude. It shuts down our
brainstorming.”
During those three hours, there was some tension,
no doubt. But there was also a lot of listening, and even
laughter. Most important, there was no hesitation in
speaking up. And though the session took a long time,
the team was able to repair much of the trust that they
had lost over the months that they hadn’t been together,
and they proved to themselves that they were committed
to working together as a functional team going
forward.
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ATERIAL you’re not coming to me directly. That’s hurting all of us.”
“Watch out for your self-righteous attitude. It shuts down our
COPYRIGHTED M
ATERIAL “Watch out for your self-righteous attitude. It shuts down our
During those three hours, there was some tension,
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During those three hours, there was some tension,
no doubt. But there was also a lot of listening, and even
COPYRIGHTED M
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no doubt. But there was also a lot of listening, and even
laughter. Most important, there was no hesitation in
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laughter. Most important, there was no hesitation in
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speaking up. And though the session took a long time,
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speaking up. And though the session took a long time,
the team was able to repair much of the trust that they
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the team was able to repair much of the trust that they
had lost over the months that they hadn’t been together,
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had lost over the months that they hadn’t been together,
and they proved to themselves that they were committed
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and they proved to themselves that they were committed
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Overcoming the “Wuss” Factor
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Overcoming the “Wuss” FactorThe irony of all this is that the only way for a team to develop a true COPYRIG
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The irony of all this is that the only way for a team to develop a true culture of peer-to-peer accountability is for the leader to demonstrate COPYRIG
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culture of peer-to-peer accountability is for the leader to demonstrate
to working together as a functional team going
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to working together as a functional team going
NOT FOR RESALE
no doubt. But there was also a lot of listening, and even
NOT FOR RESALE
no doubt. But there was also a lot of listening, and even
laughter. Most important, there was no hesitation in
NOT FOR RESALElaughter. Most important, there was no hesitation in
NOT FOR RESALEspeaking up. And though the session took a long time,
NOT FOR RESALEspeaking up. And though the session took a long time,
the team was able to repair much of the trust that they
NOT FOR RESALE
the team was able to repair much of the trust that they
had lost over the months that they hadn’t been together,
NOT FOR RESALE
had lost over the months that they hadn’t been together,
and they proved to themselves that they were committed
NOT FOR RESALE
and they proved to themselves that they were committed
NOT FOR RESALE
Overcoming the “Wuss” Factor
NOT FOR RESALE
Overcoming the “Wuss” FactorThe irony of all this is that the only way for a team to develop a true NOT FOR R
ESALE
The irony of all this is that the only way for a team to develop a true
to working together as a functional team going
NOT FOR RESALE
to working together as a functional team going
Patrick Lencioni—The Advantage
La
Discipline 1: Build a Cohesive Leadership Team
57
So—and here is the irony—the more comfortable a leader is holding people on a team accountable, the less likely she is to be asked to do so. The less likely she is to confront people, the more she’ll be called on to do it by subordinates who aren’t willing to do her dirty work for her. I know this because I struggle with holding people accountable, and I am fully aware that the reluctance of my staff members to do so with one another is a simple function of my behavior. (I’m working on it.)
Many leaders struggle with accountability but don’t know it. Some will tell me that since they aren’t afraid to fire people, they must not have an accountability problem. Of course, this is misguided. Firing someone is not necessarily a sign of accountability, but is often the last act of cowardice for a leader who doesn’t know how or isn’t willing to hold people accountable.
At its core, accountability is about having the courage to confront someone about their deficiencies and then to stand in the moment and deal with their reaction, which may not be pleasant. It is a selfless act, one rooted in a word that I don’t use lightly in a business book: love. To hold someone accountable is to care about them enough to risk having them blame you for pointing out their deficiencies.
Unfortunately, it is far more natural, and common, for leaders to avoid holding people accountable. It is one of the biggest obstacles I find preventing teams, and the companies they lead, from reaching their full potential. It’s no surprise that among the teams that complete our Five Dysfunctions of a Team Assessment (see “The Universal Challenge of Peer Account-ability” sidebar), the lowest scores are usually found in the area of accountability.
To hold someone accountable
is to care about them enough
to risk having them blame you
for pointing out their
deficiencies.
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ATERIAL Many leaders struggle with accountability but don’t know it. Some
COPYRIGHTED M
ATERIAL Many leaders struggle with accountability but don’t know it. Some
will tell me that since they aren’t afraid to fire people, they must not
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will tell me that since they aren’t afraid to fire people, they must not have an accountability problem. Of course, this is misguided. Firing
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have an accountability problem. Of course, this is misguided. Firing someone is not necessarily a sign of accountability, but is often the last
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someone is not necessarily a sign of accountability, but is often the last act of cowardice for a leader who doesn’t know how or isn’t willing to
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act of cowardice for a leader who doesn’t know how or isn’t willing to
At its core, accountability is about having the courage to confront
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At its core, accountability is about having the courage to confront someone about their deficiencies and then to stand in the moment and
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someone about their deficiencies and then to stand in the moment and deal with their reaction, which may not be pleasant. It is a selfless act,
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deal with their reaction, which may not be pleasant. It is a selfless act, one rooted in a word that I
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one rooted in a word that I don’t use lightly in a business
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don’t use lightly in a business To hold someone
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To hold someone accountable is to care about
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accountable is to care about them enough to risk having COPYRIG
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them enough to risk having them blame you for pointing COPYRIG
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them blame you for pointing NOT FOR R
ESALEsomeone is not necessarily a sign of accountability, but is often the last
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someone is not necessarily a sign of accountability, but is often the last act of cowardice for a leader who doesn’t know how or isn’t willing to
NOT FOR RESALEact of cowardice for a leader who doesn’t know how or isn’t willing to
At its core, accountability is about having the courage to confront
NOT FOR RESALE
At its core, accountability is about having the courage to confront someone about their deficiencies and then to stand in the moment and
NOT FOR RESALE
someone about their deficiencies and then to stand in the moment and deal with their reaction, which may not be pleasant. It is a selfless act,
NOT FOR RESALE
deal with their reaction, which may not be pleasant. It is a selfless act,
don’t use lightly in a business
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don’t use lightly in a business To hold someone
NOT FOR RESALE
To hold someone accountable is to care about NOT FOR R
ESALE
accountable is to care about them enough to risk having NOT FOR R
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them enough to risk having NOT FOR RESALE
NOT FOR RESALE
To hold someone accountable
NOT FOR RESALE
To hold someone accountable
Patrick Lencioni—The Advantage
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The Advantage
58
THe UnIveRSAL CHALLenge Of peeR ACCOUnTABILITY
The Table Group has identified a major trend plaguing teams
today: team members readily avoid holding their peers account-
able for both their performance and behaviors that might hurt
the team. The trend is a conclusion based on data collected
from The Table Group’s Online Team Assessment, a thirty-eight-
question online tool that measures a team’s likely susceptibility
to the five dysfunctions. In reviewing the 12,000 teams who
have taken the online assessment, data shows a full 65% of
teams scored “red” on accountability—or lowest on The Table
Group’s three-tiered rating scale of green-yellow-red. Other red
scores for the remaining four behaviors include trust (40%),
conflict (36%), commitment (22%), and results (27%).
Percentage of Teams Scoring in Lowest Category
40%
36%
22%
65%
27%
0
10
20
30
40
50
60
70
% of Teams
Trust Conflict Commitment Accountability Results
Lencioni_1522_c03_main.indd 58 1/28/2012 1:50:22 PM
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ATERIAL question online tool that measures a team’s likely susceptibility
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ATERIAL question online tool that measures a team’s likely susceptibility
to the five dysfunctions. In reviewing the 12,000 teams who
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ATERIAL to the five dysfunctions. In reviewing the 12,000 teams who
have taken the online assessment, data shows a full 65% of
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have taken the online assessment, data shows a full 65% of
teams scored “red” on accountability—or lowest on The Table
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teams scored “red” on accountability—or lowest on The Table
Group’s three-tiered rating scale of green-yellow-red. Other red
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Group’s three-tiered rating scale of green-yellow-red. Other red
scores for the remaining four behaviors include trust (40%),
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scores for the remaining four behaviors include trust (40%),
conflict (36%), commitment (22%), and results (27%).
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conflict (36%), commitment (22%), and results (27%).
Percentage of Teams Scoring in Lowest Category
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Percentage of Teams Scoring in Lowest Category
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40%COPYRIGHTED M
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40%40 COPYRIGHTED M
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40 NOT FOR RESALE
teams scored “red” on accountability—or lowest on The Table
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teams scored “red” on accountability—or lowest on The Table
Group’s three-tiered rating scale of green-yellow-red. Other red
NOT FOR RESALE
Group’s three-tiered rating scale of green-yellow-red. Other red
scores for the remaining four behaviors include trust (40%),
NOT FOR RESALEscores for the remaining four behaviors include trust (40%),
conflict (36%), commitment (22%), and results (27%).
NOT FOR RESALE
conflict (36%), commitment (22%), and results (27%).
Percentage of Teams Scoring in Lowest Category
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Percentage of Teams Scoring in Lowest Category
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NOT FOR RESALE
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Patrick Lencioni—The Advantage
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Discipline 1: Build a Cohesive Leadership Team
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Many leaders who struggle with this (again, I’m one of them) will try to convince themselves that their reluctance is a product of their kindness; they just don’t want to make their employees feel bad. But an honest reassessment of their motivation will allow them to admit that they are the ones who don’t want to feel bad and that failing to hold someone accountable is ultimately an act of selfishness.
After all, there is nothing noble about withholding information that can help an employee improve. Eventually that employee’s lack of improvement is going to come back to haunt him in a performance review or when he is let go. And I’m pretty sure there is nothing kind about firing someone who has not been confronted about his performance.
Behaviors Versus MeasurablesSome leaders don’t realize they have an accountability problem because they are more than comfortable confronting people about issues regard-ing measurable performance. For instance, when a direct report misses his sales target four quarters in a row or doesn’t deliver a product on time and according to specifications, leaders have no problem telling him and taking action. That is indeed one form of accountability, but it’s not the most important kind. The kind that is more fundamental, important, and difficult is about behavior.
After all, even the most reluctant, fearful leaders can usually summon the courage to tell someone that he missed his number. That is a relatively objective, nonjudgmental act, which makes it safe and free from emotion. Confronting someone about their behavior is a different matter. It involves a judgment call that is more likely to provoke a defensive response.
The reason that behavioral accountability is more important than the quantitative, results-related kind has nothing to do with the fact that it is harder. It is due to the fact that behavioral problems almost always precede—and cause—a downturn in performance and results.
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that can help an employee improve. Eventually that employee’s lack of
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that can help an employee improve. Eventually that employee’s lack of improvement is going to come back to haunt him in a performance
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ATERIAL improvement is going to come back to haunt him in a performance
review or when he is let go. And I’m pretty sure there is nothing kind
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review or when he is let go. And I’m pretty sure there is nothing kind about firing someone who has not been confronted about his
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about firing someone who has not been confronted about his
Behaviors Versus Measurables
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Behaviors Versus MeasurablesSome leaders don’t realize they have an accountability problem because
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Some leaders don’t realize they have an accountability problem because they are more than comfortable confronting people about issues regard-
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they are more than comfortable confronting people about issues regard-ing measurable performance. For instance, when a direct report misses
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ing measurable performance. For instance, when a direct report misses
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his sales target four quarters in a row or doesn’t deliver a product on
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his sales target four quarters in a row or doesn’t deliver a product on time and according to specifications, leaders have no problem telling
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time and according to specifications, leaders have no problem telling him and taking action. That is indeed one form of accountability, but
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him and taking action. That is indeed one form of accountability, but it’s not the most important kind. The kind that is more fundamental,
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it’s not the most important kind. The kind that is more fundamental,
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important, and difficult is about behavior.COPYRIGHTED M
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important, and difficult is about behavior.After all, even the most reluctant, fearful leaders can usually COPYRIG
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After all, even the most reluctant, fearful leaders can usually NOT FOR R
ESALESome leaders don’t realize they have an accountability problem because
NOT FOR RESALE
Some leaders don’t realize they have an accountability problem because they are more than comfortable confronting people about issues regard-
NOT FOR RESALE
they are more than comfortable confronting people about issues regard-ing measurable performance. For instance, when a direct report misses
NOT FOR RESALE
ing measurable performance. For instance, when a direct report misses
NOT FOR RESALE
his sales target four quarters in a row or doesn’t deliver a product on
NOT FOR RESALE
his sales target four quarters in a row or doesn’t deliver a product on time and according to specifications, leaders have no problem telling
NOT FOR RESALE
time and according to specifications, leaders have no problem telling him and taking action. That is indeed one form of accountability, but
NOT FOR RESALE
him and taking action. That is indeed one form of accountability, but it’s not the most important kind. The kind that is more fundamental,
NOT FOR RESALE
it’s not the most important kind. The kind that is more fundamental, important, and difficult is about behavior.NOT FOR R
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important, and difficult is about behavior.
Patrick Lencioni—The Advantage
La
The Advantage
60
Whether we’re talking about a football team, a sales department, or an elementary school, a meaningful drop in measurable performance can almost always be traced back to behavioral issues that made the drop possible. Lack of attention to details at practice, decreased discipline about cold-calling, poor preparation of lesson plans: all of these are behavioral problems that occur long before any decrease in measurable results is apparent. Great leaders and great team members confront one another about those behaviors early because they see the connection between the two and care enough about the team to take that risk before the results begin to suffer.
It’s difficult to overstate the competitive advantage that an accountability-friendly organization has over one where leaders don’t hold one another accountable. More than anything else, problems are identified and solved earlier and without the collateral damage of poli-tics. Whether you measure that in terms of greater revenue, higher productivity, or reduced turnover, the benefits are massive and real.
It’s worth pointing out here that people often confuse account-ability with conflict because both involve discomfort and emotion. But there is an enormous difference between the two. Conflict is about issues and ideas, while accountability is about performance and behav-ior. As difficult as it is for many people to engage in conflict, at least it is somewhat objective, removed from a person’s behavior. It is much harder for most people to hold one another accountable because it involves something of a personal, behavioral judgment.
Team Effectiveness ExerciseA good tool for teams that want to improve their ability to hold one another accountable is something we call the team effectiveness exer-cise. I’ll explain it here in some detail because it’s pretty simple, it requires only an hour or two, and it can transform how team members go about holding each other to higher standards of performance. It’s just that powerful.
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another about those behaviors early because they see the connection
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another about those behaviors early because they see the connection between the two and care enough about the team to take that risk
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ATERIAL between the two and care enough about the team to take that risk
It’s difficult to overstate the competitive advantage that an
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It’s difficult to overstate the competitive advantage that an accountability-friendly organization has over one where leaders don’t
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accountability-friendly organization has over one where leaders don’t hold one another accountable. More than anything else, problems are
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hold one another accountable. More than anything else, problems are identified and solved earlier and without the collateral damage of poli-
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identified and solved earlier and without the collateral damage of poli-tics. Whether you measure that in terms of greater revenue, higher
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tics. Whether you measure that in terms of greater revenue, higher productivity, or reduced turnover, the benefits are massive and real.
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productivity, or reduced turnover, the benefits are massive and real.
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It’s worth pointing out here that people often confuse account-
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It’s worth pointing out here that people often confuse account-ability with conflict because both involve discomfort and emotion. But
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ability with conflict because both involve discomfort and emotion. But there is an enormous difference between the two. Conflict is about
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there is an enormous difference between the two. Conflict is about issues and ideas, while accountability is about performance and behav-
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issues and ideas, while accountability is about performance and behav-
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ior. As difficult as it is for many people to engage in conflict, at least it
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ior. As difficult as it is for many people to engage in conflict, at least it is somewhat objective, removed from a person’s behavior. It is much COPYRIG
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is somewhat objective, removed from a person’s behavior. It is much harder for most people to hold one another accountable because it COPYRIG
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harder for most people to hold one another accountable because it NOT FOR R
ESALEaccountability-friendly organization has over one where leaders don’t
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accountability-friendly organization has over one where leaders don’t hold one another accountable. More than anything else, problems are
NOT FOR RESALEhold one another accountable. More than anything else, problems are
identified and solved earlier and without the collateral damage of poli-
NOT FOR RESALEidentified and solved earlier and without the collateral damage of poli-
tics. Whether you measure that in terms of greater revenue, higher
NOT FOR RESALE
tics. Whether you measure that in terms of greater revenue, higher productivity, or reduced turnover, the benefits are massive and real.
NOT FOR RESALE
productivity, or reduced turnover, the benefits are massive and real.
NOT FOR RESALE
It’s worth pointing out here that people often confuse account-
NOT FOR RESALE
It’s worth pointing out here that people often confuse account-ability with conflict because both involve discomfort and emotion. But
NOT FOR RESALE
ability with conflict because both involve discomfort and emotion. But there is an enormous difference between the two. Conflict is about
NOT FOR RESALE
there is an enormous difference between the two. Conflict is about issues and ideas, while accountability is about performance and behav-
NOT FOR RESALE
issues and ideas, while accountability is about performance and behav-
NOT FOR RESALE
ior. As difficult as it is for many people to engage in conflict, at least it NOT FOR RESALE
ior. As difficult as it is for many people to engage in conflict, at least it is somewhat objective, removed from a person’s behavior. It is much NOT FOR R
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is somewhat objective, removed from a person’s behavior. It is much
Patrick Lencioni—The Advantage
La
Discipline 1: Build a Cohesive Leadership Team
61
We usually do this exercise at the end of a two-day off-site meeting, but only when we believe the team has a decent foundation of trust (they usually do). If team members aren’t capable of being vulnerable with one another, there is no point in doing it.
We start the exercise by having everyone write down one thing that each of the other team members does that makes the team better. In other words, they write down, for everyone other than them-selves, the single biggest area of strength as it pertains to the impact on the group. We’re interested not in their technical skills, but in the way they behave when the team is together that makes the team stronger.
Then we ask them to do the same thing, except this time focusing on the one aspect of each person that sometimes hurts the team. After ten or fifteen minutes of thoughtful consideration and note taking, everyone is usually done.
Then, starting with the leader, we go around the room asking everyone to report on the leader’s one positive characteristic. We then allow the leader to provide his general, one-sentence reaction. In most cases, the leader is quite humbled by the positive feedback, sometimes even surprised by it. Then we go around the room again, asking people to report on the one characteristic that the leader needs to improve on. Again, we let the leader provide a brief reaction—not a rebuttal, but simply a reaction—to the feedback after everyone has pro-vided their input. In virtually every case, there is acceptance and appreciation.
And then we do the same exercise for every other member of the team. It takes about ten minutes for each person to receive both the positive and constructive feedback from peers and to provide his or her simple reactions. After an hour or two, depending on the size of the team, the exercise is complete. It’s usually at this point that people are sitting around the table in a state of mild amazement at the direct, honest, and helpful feedback that they’ve just shared.
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selves, the single biggest area of strength as it pertains to the impact
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selves, the single biggest area of strength as it pertains to the impact on the group. We’re interested not in their technical skills, but in the
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ATERIAL on the group. We’re interested not in their technical skills, but in the
way they behave when the team is together that makes the team
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way they behave when the team is together that makes the team
Then we ask them to do the same thing, except this time focusing
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Then we ask them to do the same thing, except this time focusing on the one aspect of each person that sometimes hurts the team. After
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on the one aspect of each person that sometimes hurts the team. After ten or fifteen minutes of thoughtful consideration and note taking,
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ten or fifteen minutes of thoughtful consideration and note taking,
Then, starting with the leader, we go around the room asking
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Then, starting with the leader, we go around the room asking everyone to report on the leader’s one positive characteristic. We then
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everyone to report on the leader’s one positive characteristic. We then
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allow the leader to provide his general, one-sentence reaction. In
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allow the leader to provide his general, one-sentence reaction. In most cases, the leader is quite humbled by the positive feedback,
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most cases, the leader is quite humbled by the positive feedback, sometimes even surprised by it. Then we go around the room again,
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sometimes even surprised by it. Then we go around the room again, asking people to report on the one characteristic that the leader needs to
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asking people to report on the one characteristic that the leader needs to
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improve on. Again, we let the leader provide a brief reaction—not a COPYRIGHTED M
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improve on. Again, we let the leader provide a brief reaction—not a rebuttal, but simply a reaction—to the feedback after everyone has pro-COPYRIG
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rebuttal, but simply a reaction—to the feedback after everyone has pro-NOT FOR R
ESALEThen we ask them to do the same thing, except this time focusing
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Then we ask them to do the same thing, except this time focusing on the one aspect of each person that sometimes hurts the team. After
NOT FOR RESALEon the one aspect of each person that sometimes hurts the team. After
ten or fifteen minutes of thoughtful consideration and note taking,
NOT FOR RESALEten or fifteen minutes of thoughtful consideration and note taking,
Then, starting with the leader, we go around the room asking
NOT FOR RESALE
Then, starting with the leader, we go around the room asking everyone to report on the leader’s one positive characteristic. We then
NOT FOR RESALE
everyone to report on the leader’s one positive characteristic. We then
NOT FOR RESALE
allow the leader to provide his general, one-sentence reaction. In
NOT FOR RESALE
allow the leader to provide his general, one-sentence reaction. In most cases, the leader is quite humbled by the positive feedback,
NOT FOR RESALE
most cases, the leader is quite humbled by the positive feedback, sometimes even surprised by it. Then we go around the room again,
NOT FOR RESALE
sometimes even surprised by it. Then we go around the room again, asking people to report on the one characteristic that the leader needs to NOT FOR R
ESALE
asking people to report on the one characteristic that the leader needs to improve on. Again, we let the leader provide a brief reaction—not a NOT FOR R
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improve on. Again, we let the leader provide a brief reaction—not a
Patrick Lencioni—The Advantage
La
The Advantage
62
voluntary Turnover
One of our consultants was working with the leadership
team of a large company’s information technology depart-
ment. Many members of the team were struggling with the
behavior of one of their peers, Fred, who had a close relation-
ship with the CIO who was in charge of the team. They didn’t
believe that the CIO was holding Fred accountable for his
destructive behavior, that he was playing favorites. The CIO
would later admit that he valued Fred’s technical expertise
and was reluctant to do anything that might cause him to
leave.
During an off-site meeting, the team confronted the CIO
about his lack of consistent accountability across the team,
in particular, with Fred. The CIO acknowledged the issue and
announced that he would work on it.
Over the course of the following months, the CIO started
to hold Fred more accountable. Just as important, the team
followed suit, engaging with Fred more directly about his
behavior. Without the protection that he had grown accus-
tomed to getting from his boss, Fred eventually decided that
he didn’t want to be a part of the team, and he left the
company.
Contrary to his fears about losing Fred, the CIO found
that the performance of the rest of his team improved. He
attributed that to Fred’s absence and the new culture of
accountability that the team had embraced.
The benefit of this exercise goes far beyond the mere sharing of information, as important as that is. The greatest impact is the realization on the part of leadership team members that holding one another accountable is a survivable and productive activity, and it will make them likely to continue doing it going forward. And in some situations, the eventual result is particularly powerful.
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ATERIAL One of our consultants was working with the leadership
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ATERIAL One of our consultants was working with the leadership
team of a large company’s information technology depart-
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team of a large company’s information technology depart-
ment. Many members of the team were struggling with the
COPYRIGHTED M
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ment. Many members of the team were struggling with the
behavior of one of their peers, Fred, who had a close relation-
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behavior of one of their peers, Fred, who had a close relation-
ship with the CIO who was in charge of the team. They didn’t
COPYRIGHTED M
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ship with the CIO who was in charge of the team. They didn’t
believe that the CIO was holding Fred accountable for his
COPYRIGHTED M
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believe that the CIO was holding Fred accountable for his
destructive behavior, that he was playing favorites. The CIO
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destructive behavior, that he was playing favorites. The CIO
would later admit that he valued Fred’s technical expertise
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would later admit that he valued Fred’s technical expertise
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and was reluctant to do anything that might cause him to
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and was reluctant to do anything that might cause him to
During an off-site meeting, the team confronted the CIO
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During an off-site meeting, the team confronted the CIO
about his lack of consistent accountability across the team,
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about his lack of consistent accountability across the team,
in particular, with Fred. The CIO acknowledged the issue and
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in particular, with Fred. The CIO acknowledged the issue and
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announced that he would work on it.
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announced that he would work on it.
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Over the course of the following months, the CIO started NOT FOR R
ESALEment. Many members of the team were struggling with the
NOT FOR RESALE
ment. Many members of the team were struggling with the
behavior of one of their peers, Fred, who had a close relation-
NOT FOR RESALE
behavior of one of their peers, Fred, who had a close relation-
ship with the CIO who was in charge of the team. They didn’t
NOT FOR RESALEship with the CIO who was in charge of the team. They didn’t
believe that the CIO was holding Fred accountable for his
NOT FOR RESALE
believe that the CIO was holding Fred accountable for his
destructive behavior, that he was playing favorites. The CIO
NOT FOR RESALE
destructive behavior, that he was playing favorites. The CIO
would later admit that he valued Fred’s technical expertise
NOT FOR RESALE
would later admit that he valued Fred’s technical expertise
NOT FOR RESALE
and was reluctant to do anything that might cause him to
NOT FOR RESALE
and was reluctant to do anything that might cause him to
During an off-site meeting, the team confronted the CIO
NOT FOR RESALE
During an off-site meeting, the team confronted the CIO
about his lack of consistent accountability across the team,
NOT FOR RESALE
about his lack of consistent accountability across the team,
in particular, with Fred. The CIO acknowledged the issue and
NOT FOR RESALE
in particular, with Fred. The CIO acknowledged the issue and
NOT FOR RESALE
announced that he would work on it.NOT FOR RESALE
announced that he would work on it.
Patrick Lencioni—The Advantage
La
Discipline 1: Build a Cohesive Leadership Team
63
Losing a team member is not at all a common outcome of building a culture of accountability. In most cases, team members simply learn to demand more of one another and watch their collective performance improve. In some cases, though, the only way for them to do that is by losing someone from the team. But again, that’s certainly not the norm.
No matter what the situation, there will always be some discomfort as team members confront one another about their behavior. In the end, however, the level of cohesion and personal satisfaction among team members who embrace the new philosophy overwhelms any temporary discomfort.
public Versus privateI’m often asked whether leaders should hold their people accountable privately during one-on-one sessions or in more public forums with the whole team, like during meetings. Although every case is a little differ-ent, generally I believe that on cohesive teams, accountability is best handled with the entire team. I say this because when leaders and team members call one another on issues in front of team members, they get benefits that don’t occur when it takes place individually.
First, when accountability is handled during a meeting, every member of the team receives the message simultaneously and doesn’t have to make the same mistakes in order to learn the lesson of the person being held accountable. Second, they know that the leader is holding their colleague accountable, which avoids their wondering whether the boss is doing his job. Finally, it serves to reinforce the culture of accountability, which increases the likelihood that team members will do the same for one another. When leaders—and peers—limit their accountability discussions to private conversations, they leave people wondering whether those discussions are happening. This often leads to unproductive hallway conversations and conjecture about who knows what about whom.
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as team members confront one another about their behavior. In the
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as team members confront one another about their behavior. In the end, however, the level of cohesion and personal satisfaction among
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ATERIAL end, however, the level of cohesion and personal satisfaction among
team members who embrace the new philosophy overwhelms any
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team members who embrace the new philosophy overwhelms any
I’m often asked whether leaders should hold their people accountable
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I’m often asked whether leaders should hold their people accountable privately during one-on-one sessions or in more public forums with the
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privately during one-on-one sessions or in more public forums with the whole team, like during meetings. Although every case is a little differ-
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whole team, like during meetings. Although every case is a little differ-ent, generally I believe that on cohesive teams, accountability is best
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ent, generally I believe that on cohesive teams, accountability is best handled with the entire team. I say this because when leaders and team
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handled with the entire team. I say this because when leaders and team
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members call one another on issues in front of team members, they get
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members call one another on issues in front of team members, they get benefits that don’t occur when it takes place individually.
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benefits that don’t occur when it takes place individually.First, when accountability is handled during a meeting, every
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First, when accountability is handled during a meeting, every member of the team receives the message simultaneously and doesn’t COPYRIG
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member of the team receives the message simultaneously and doesn’t have to make the same mistakes in order to learn the lesson of the COPYRIG
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have to make the same mistakes in order to learn the lesson of the NOT FOR R
ESALEI’m often asked whether leaders should hold their people accountable
NOT FOR RESALEI’m often asked whether leaders should hold their people accountable
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NOT FOR RESALE
privately during one-on-one sessions or in more public forums with the whole team, like during meetings. Although every case is a little differ-
NOT FOR RESALE
whole team, like during meetings. Although every case is a little differ-ent, generally I believe that on cohesive teams, accountability is best
NOT FOR RESALE
ent, generally I believe that on cohesive teams, accountability is best handled with the entire team. I say this because when leaders and team
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handled with the entire team. I say this because when leaders and team
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members call one another on issues in front of team members, they get
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members call one another on issues in front of team members, they get benefits that don’t occur when it takes place individually.
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benefits that don’t occur when it takes place individually.First, when accountability is handled during a meeting, every NOT FOR R
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First, when accountability is handled during a meeting, every member of the team receives the message simultaneously and doesn’t NOT FOR R
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member of the team receives the message simultaneously and doesn’t
Patrick Lencioni—The Advantage
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The Advantage
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Having said all that, when it comes to addressing relatively serious issues, or matters of corrective action in which a leader is wondering whether a member of the team might not be worthy to be on the team anymore, then everything changes. These are best handled privately, in a one-on-one situation, to respect the dignity of the person being held accountable. However, and this can be dicey, the leader is often well advised to let her people know that she is addressing the situation to avoid unproductive and dangerous speculation.
As uncomfortable and difficult as it can often be, accountability helps a team and an organization avoid far more costly and difficult situations later. It also allows a team to embrace the last behavior that is critical for a cohesive team: the focus on results.
Lencioni_1522_c03_main.indd 64 1/28/2012 1:50:22 PM
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ATERIAL As uncomfortable and difficult as it can often be, accountability
COPYRIGHTED M
ATERIAL As uncomfortable and difficult as it can often be, accountability
helps a team and an organization avoid far more costly and difficult
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helps a team and an organization avoid far more costly and difficult situations later. It also allows a team to embrace the last behavior that
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situations later. It also allows a team to embrace the last behavior that is critical for a cohesive team: the focus on results.
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is critical for a cohesive team: the focus on results.
NOT FOR RESALE
Patrick Lencioni—The Advantage
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Discipline 1: Build a Cohesive Leadership Team
65
BeHAvIOR 5: fOCUSIng On ReSULTS
The ultimate point of building greater trust, conflict, commitment, and accountability is one thing: the achievement of results. That certainly seems obvious, but as it turns out, one of the greatest challenges to team success is the inattention to results. What would members of an executive team be focused on if not the results of their organization? Well, for one, the results of their department. Too many leaders seem to have a greater affinity for and loyalty to the department they lead rather than the team they’re a member of and the organization they are supposed to be collectively serving. Other distractions include a concern for individual career development, budget allocations, status, and ego, all of them common distractions that prevent teams from being obsessed with achieving results.
Some people find this extreme emphasis on results to be a little cold and unin-spiring. But there is no getting around the fact that the only measure of a great team—or a great organization—is whether it accomplishes what it sets out to accomplish. Some leaders of teams that don’t regularly succeed will still insist that they have a great team because team members care about one other and no one ever leaves the team. A more accurate description of their situation would be to say that they have a mediocre team that enjoys being together and isn’t terribly bothered by failure. See, no matter how good a leadership team feels about itself, and how noble its mission might be, if the organization it leads rarely achieves its goals, then, by definition, it’s simply not a good team.
No matter how good a
leadership team feels about
itself, and how noble its
mission might be, if the
organization it leads rarely
achieves its goals, then, by
definition, it’s simply not a
good team.
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Well, for one, the results of their department. Too many leaders seem
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Well, for one, the results of their department. Too many leaders seem to have a greater affinity for and loyalty to the department they lead
COPYRIGHTED M
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rather than the team they’re a member of and the organization they are
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rather than the team they’re a member of and the organization they are supposed to be collectively serving. Other distractions include a concern
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supposed to be collectively serving. Other distractions include a concern for individual career development, budget allocations, status, and ego,
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for individual career development, budget allocations, status, and ego, all of them common distractions that prevent teams from being obsessed
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all of them common distractions that prevent teams from being obsessed
extreme emphasis on results
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extreme emphasis on results to be a little cold and unin-
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to be a little cold and unin-spiring. But there is no
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spiring. But there is no getting around the fact
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getting around the fact that the only measure of
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that the only measure of a great team—or a great
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a great team—or a great organization—is whether it COPYRIG
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organization—is whether it accomplishes what it sets out COPYRIG
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No matter how good a
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No matter how good a
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for individual career development, budget allocations, status, and ego,
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for individual career development, budget allocations, status, and ego, all of them common distractions that prevent teams from being obsessed
NOT FOR RESALEall of them common distractions that prevent teams from being obsessed
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spiring. But there is no
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spiring. But there is no getting around the fact
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getting around the fact that the only measure of
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that the only measure of a great team—or a great NOT FOR R
ESALE
a great team—or a great organization—is whether it NOT FOR R
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organization—is whether it NOT FOR RESALE
NOT FOR RESALE
No matter how good a
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No matter how good a
leadership team feels about
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leadership team feels about
itself, and how noble its
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itself, and how noble its
mission might be, if the
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mission might be, if the
Patrick Lencioni—The Advantage
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The Advantage
66
Keep in mind that revenue and profitability are not the only mea-sures of achievement, even in for-profit organizations (though they are certainly critical ones). The definition of results and achievement will vary from one organization to another depending on the reason that a given organization exists. A football team most likely will measure itself in terms of wins and losses, a school in terms of how well it prepares students for their next step in education, and a church based on how many parish-ioners are growing in their faith. That’s not to say that all of those orga-nizations will not have financial measurements; it’s just that finances are probably not going to be their primary measure of results.
In traditional for-profit companies, financial metrics are certainly going to take a more prominent place in the hierarchy of goals, as they should. After all, they are the indicator of how well a company is serving its customers and fulfilling its mission. However, even in these organiza-tions, other measures will often be just as important as, if not more important than, profit. Plenty of businesses, usually smaller, privately held ones, make decisions every day to do something for customers that may never benefit them financially. They do it because they think it’s the right thing to do, or because they think it might eventually help them become more influential in the market. Regardless of their ratio-nale, if they make that decision consciously, knowing what they want to achieve, then they are still focusing on results.
collective goalsWhen it comes to how a cohesive team measures its performance, one criterion sets it apart from noncohesive ones: its goals are shared across the entire team. This is not just a theoretical way of saying that people should help one another. It’s far more specific, and far more difficult too.
In most organizations, results are compartmentalized by depart-ment. Executives see themselves as having little or no responsibility for goals that fall outside their functional areas of expertise. This, of course,
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ioners are growing in their faith. That’s not to say that all of those orga-
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ioners are growing in their faith. That’s not to say that all of those orga-nizations will not have financial measurements; it’s just that finances are
COPYRIGHTED M
ATERIAL nizations will not have financial measurements; it’s just that finances are
probably not going to be their primary measure of results.
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probably not going to be their primary measure of results.In traditional for-profit companies, financial metrics are certainly
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In traditional for-profit companies, financial metrics are certainly going to take a more prominent place in the hierarchy of goals, as they
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going to take a more prominent place in the hierarchy of goals, as they should. After all, they are the indicator of how well a company is serving
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should. After all, they are the indicator of how well a company is serving its customers and fulfilling its mission. However, even in these organiza-
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its customers and fulfilling its mission. However, even in these organiza-tions, other measures will often be just as important as, if not more
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tions, other measures will often be just as important as, if not more
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important than, profit. Plenty of businesses, usually smaller, privately
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important than, profit. Plenty of businesses, usually smaller, privately held ones, make decisions every day to do something for customers that
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held ones, make decisions every day to do something for customers that may never benefit them financially. They do it because they think it’s
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may never benefit them financially. They do it because they think it’s the right thing to do, or because they think it might eventually help
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the right thing to do, or because they think it might eventually help
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them become more influential in the market. Regardless of their ratio-
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them become more influential in the market. Regardless of their ratio-nale, if they make that decision consciously, knowing what they want
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nale, if they make that decision consciously, knowing what they want
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to achieve, then they are still focusing on results.COPYRIGHTED M
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to achieve, then they are still focusing on results.NOT FOR RESALE
going to take a more prominent place in the hierarchy of goals, as they
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going to take a more prominent place in the hierarchy of goals, as they should. After all, they are the indicator of how well a company is serving
NOT FOR RESALEshould. After all, they are the indicator of how well a company is serving
its customers and fulfilling its mission. However, even in these organiza-
NOT FOR RESALEits customers and fulfilling its mission. However, even in these organiza-
tions, other measures will often be just as important as, if not more
NOT FOR RESALE
tions, other measures will often be just as important as, if not more
NOT FOR RESALE
important than, profit. Plenty of businesses, usually smaller, privately
NOT FOR RESALE
important than, profit. Plenty of businesses, usually smaller, privately held ones, make decisions every day to do something for customers that
NOT FOR RESALE
held ones, make decisions every day to do something for customers that may never benefit them financially. They do it because they think it’s
NOT FOR RESALE
may never benefit them financially. They do it because they think it’s the right thing to do, or because they think it might eventually help
NOT FOR RESALE
the right thing to do, or because they think it might eventually help
NOT FOR RESALE
them become more influential in the market. Regardless of their ratio-
NOT FOR RESALE
them become more influential in the market. Regardless of their ratio-nale, if they make that decision consciously, knowing what they want NOT FOR R
ESALE
nale, if they make that decision consciously, knowing what they want to achieve, then they are still focusing on results.NOT FOR R
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to achieve, then they are still focusing on results.
Patrick Lencioni—The Advantage
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Discipline 1: Build a Cohesive Leadership Team
67
One Team, One Score
After a recent loss, a thirteen-year-old boy on my son’s
soccer team said to me, “Well, I don’t feel like I lost.”
“Really?” I asked him. “How do you figure?”
He proudly announced, “Well, I’m a forward, and we
forwards did our part by scoring three goals. It’s really the
defense that lost the game because they gave up too many
goals. They’re the losers.”
I kindly pointed out to him how absurd his reasoning
was, not only because there is only one score for the team,
but because every player on the field plays defense, though
perhaps on different parts of the field. Even a forward plays
a role in preventing the other team from scoring by making
it difficult for the opponent’s defense to organize an attack.
To be fair, the kid smiled and acknowledged the ridicu-
lousness of his original remark.
is the antithesis of teamwork, though somehow it doesn’t deter many leaders from calling themselves teams and preaching the importance of working together across functions.
The only way for a team to really be a team and to maximize its output is to ensure that everyone is focused on the same priorities—rowing in the same direction, if you will. When the marketing depart-ment defines itself by how well it does marketing and the other departments do the same in their functional areas, there is no reason to expect synergy within the team. As simple as that may sound, most leadership teams still do not seem to understand this.
I wish I could say that it was that easy to convince leadership team members. Too many of them don’t see a connection between the decisions they make and the impact they have on other parts of the business. They don’t seem to understand that the way they spend their
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departments do the same in their functional areas, there is no reason
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departments do the same in their functional areas, there is no reason to expect synergy within the team. As simple as that may sound, most
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One Team, One Score
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One Team, One Score
After a recent loss, a thirteen-year-old boy on my son’s
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After a recent loss, a thirteen-year-old boy on my son’s
soccer team said to me, “Well, I don’t feel like I lost.”
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soccer team said to me, “Well, I don’t feel like I lost.”
“Really?” I asked him. “How do you figure?”
COPYRIGHTED M
ATERIAL
“Really?” I asked him. “How do you figure?”
He proudly announced, “Well, I’m a forward, and we
COPYRIGHTED M
ATERIAL
He proudly announced, “Well, I’m a forward, and we
forwards did our part by scoring three goals. It’s really the
COPYRIGHTED M
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forwards did our part by scoring three goals. It’s really the
defense that lost the game because they gave up too many
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defense that lost the game because they gave up too many
goals. They’re the losers.”
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goals. They’re the losers.”
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I kindly pointed out to him how absurd his reasoning
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I kindly pointed out to him how absurd his reasoning
was, not only because there is only one score for the team,
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was, not only because there is only one score for the team,
but because every player on the field plays defense, though COPYRIGHTED M
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but because every player on the field plays defense, though
perhaps on different parts of the field. Even a forward plays COPYRIGHTED M
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perhaps on different parts of the field. Even a forward plays
leadership teams still do not seem to understand this.
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leadership teams still do not seem to understand this.
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One Team, One Score
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One Team, One Score
After a recent loss, a thirteen-year-old boy on my son’s
NOT FOR RESALEAfter a recent loss, a thirteen-year-old boy on my son’s
soccer team said to me, “Well, I don’t feel like I lost.”
NOT FOR RESALE
soccer team said to me, “Well, I don’t feel like I lost.”
“Really?” I asked him. “How do you figure?”
NOT FOR RESALE
“Really?” I asked him. “How do you figure?”
He proudly announced, “Well, I’m a forward, and we
NOT FOR RESALE
He proudly announced, “Well, I’m a forward, and we
forwards did our part by scoring three goals. It’s really the
NOT FOR RESALE
forwards did our part by scoring three goals. It’s really the
defense that lost the game because they gave up too many
NOT FOR RESALE
defense that lost the game because they gave up too many
goals. They’re the losers.”
NOT FOR RESALE
goals. They’re the losers.”
NOT FOR RESALE
I kindly pointed out to him how absurd his reasoning
NOT FOR RESALE
I kindly pointed out to him how absurd his reasoning
was, not only because there is only one score for the team, NOT FOR RESALE
was, not only because there is only one score for the team,
but because every player on the field plays defense, though NOT FOR RESALE
but because every player on the field plays defense, though
Patrick Lencioni—The Advantage
La
The Advantage
68
time, energy, and resources can influence the overall performance of the organization. All too often they embrace the attitude embodied by the fisherman who looks at the guy sitting at the other end of the boat and announces, “Hey, your side of the boat is sinking.”
Great teams ensure that all members, in spite of their individual responsibilities and areas of expertise, are doing whatever they can to help the team accomplish its goals. That means they need to be asking difficult questions about what is happening in other departments and volunteering, in any way they can, to help those parts of the business that might be struggling and might jeopardize the success of the entire organization.
Team Number OneThe only way for a leader to establish this collective mentality on a team is by ensuring that all members place a higher priority on the team they’re a member of than the team they lead in their departments. A good way to go about this is simply to ask them which team is their first priority. I’ve found that many well-intentioned executives will admit that in spite of their commitment to the team that they’re a member of, the team they lead is their first priority. They’ll point out that they hired their direct reports, they sit near them and spend more time with them every day, and they enjoy being the leader of that team. Moreover, they feel a sense of loyalty to the people they manage, and feel that those people want and need their protection.
This is absolutely natural, common, and understandable. And dangerous.
When members of a leadership team feel a stronger sense of com-mitment and loyalty to the team they lead than the one they’re a member of, then the team they’re a member of becomes like the U.S. Congress or the United Nations: it’s just a place where people come together to lobby for their constituents. Teams that lead healthy organizations reject this model and come to terms with the difficult but critical requirement
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difficult questions about what is happening in other departments and
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difficult questions about what is happening in other departments and volunteering, in any way they can, to help those parts of the business
COPYRIGHTED M
ATERIAL volunteering, in any way they can, to help those parts of the business
that might be struggling and might jeopardize the success of the entire
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that might be struggling and might jeopardize the success of the entire
The only way for a leader to establish this collective mentality on a team
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The only way for a leader to establish this collective mentality on a team is by ensuring that all members place a higher priority on the team
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is by ensuring that all members place a higher priority on the team they’re a member of than the team they lead in their departments. A
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they’re a member of than the team they lead in their departments. A good way to go about this is simply to ask them which team is their
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good way to go about this is simply to ask them which team is their first priority. I’ve found that many well-intentioned executives will
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first priority. I’ve found that many well-intentioned executives will
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admit that in spite of their commitment to the team that they’re a
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admit that in spite of their commitment to the team that they’re a member of, the team they lead is their first priority. They’ll point out
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member of, the team they lead is their first priority. They’ll point out that they hired their direct reports, they sit near them and spend more
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that they hired their direct reports, they sit near them and spend more time with them every day, and they enjoy being the leader of that team. COPYRIG
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time with them every day, and they enjoy being the leader of that team. Moreover, they feel a sense of loyalty to the people they manage, and COPYRIG
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Moreover, they feel a sense of loyalty to the people they manage, and NOT FOR R
ESALEThe only way for a leader to establish this collective mentality on a team
NOT FOR RESALEThe only way for a leader to establish this collective mentality on a team
is by ensuring that all members place a higher priority on the team
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is by ensuring that all members place a higher priority on the team they’re a member of than the team they lead in their departments. A
NOT FOR RESALE
they’re a member of than the team they lead in their departments. A good way to go about this is simply to ask them which team is their
NOT FOR RESALE
good way to go about this is simply to ask them which team is their first priority. I’ve found that many well-intentioned executives will
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first priority. I’ve found that many well-intentioned executives will
NOT FOR RESALE
admit that in spite of their commitment to the team that they’re a
NOT FOR RESALE
admit that in spite of their commitment to the team that they’re a member of, the team they lead is their first priority. They’ll point out
NOT FOR RESALE
member of, the team they lead is their first priority. They’ll point out that they hired their direct reports, they sit near them and spend more NOT FOR R
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that they hired their direct reports, they sit near them and spend more time with them every day, and they enjoy being the leader of that team. NOT FOR R
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time with them every day, and they enjoy being the leader of that team.
Patrick Lencioni—The Advantage
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Discipline 1: Build a Cohesive Leadership Team
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that executives must put the needs of the higher team ahead of the needs of their departments. That is the only way that good deci-sions can be made about how best to serve the entire organization and maximize its performance.
The advantage that can be achieved by shifting a team’s priorities from indi-vidual to collective ones, and thus demonstrating a true commitment to team number one, is undeniable.
Teams that lead healthy
organizations come to
terms with the difficult but
critical requirement that its
members must put the
needs of the higher team
ahead of the needs of their
departments.
first Team
We worked with the CIO of a massive corporation. She was
struggling with team members who seemed to be working
almost exclusively on their own priorities, with little concern
for what was happening with their peers in other depart-
ments. As a result, there was minimal cooperation and
synergy, and the overall performance and reputation of the
IT organization had suffered.
Confronting the problem with the team, the CIO
announced that they would be taking specific and difficult
measures to refocus the staff on their team number one.
Those steps included moving each of her direct reports away
from their departments and onto the same floor in the same
building of the company’s sprawling campus. She would also
pull the team together every morning for a five-minute infor-
mal gathering to begin building the kind of professional and
personal relationships that would be necessary to turn the
organization around and thus better serve the company.
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commitment to team number one, is undeniable.
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commitment to team number one, is undeniable.
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needs of the higher team
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needs of the higher team
ahead of the needs of their
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departments.
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departments.
f
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first Team
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irst Team
We worked with the CIO of a massive corporation. She was
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We worked with the CIO of a massive corporation. She was
struggling with team members who seemed to be working
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struggling with team members who seemed to be working
almost exclusively on their own priorities, with little concern
COPYRIGHTED M
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almost exclusively on their own priorities, with little concern
for what was happening with their peers in other depart-
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ATERIAL
for what was happening with their peers in other depart-
ments. As a result, there was minimal cooperation and
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ments. As a result, there was minimal cooperation and
synergy, and the overall performance and reputation of the
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synergy, and the overall performance and reputation of the
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IT organization had suffered.COPYRIGHTED M
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IT organization had suffered.NOT FOR R
ESALEcommitment to team number one, is undeniable.
NOT FOR RESALEcommitment to team number one, is undeniable.
NOT FOR RESALE
irst Team
NOT FOR RESALE
irst Team
We worked with the CIO of a massive corporation. She was
NOT FOR RESALE
We worked with the CIO of a massive corporation. She was
struggling with team members who seemed to be working
NOT FOR RESALE
struggling with team members who seemed to be working
almost exclusively on their own priorities, with little concern
NOT FOR RESALE
almost exclusively on their own priorities, with little concern
for what was happening with their peers in other depart-
NOT FOR RESALE
for what was happening with their peers in other depart-
ments. As a result, there was minimal cooperation and
NOT FOR RESALE
ments. As a result, there was minimal cooperation and
synergy, and the overall performance and reputation of the NOT FOR RESALE
synergy, and the overall performance and reputation of the
Patrick Lencioni—The Advantage
La
The Advantage
70
Testament to Unity
One of our consultants was working with the CEO of a
mental health hospital who was tired of his staff members’
pursuing their own agendas. Over a period of a few months,
the two of them worked to shift the team’s focus to the col-
lective good of the organization.
The CEO’s reaction to what happened says it all: “The
concept of team number one has created a common lan-
guage and sense of identity for our team. It provides the
mind-set that individual goals, issues, and interests are set
aside to focus on what’s best for the organization. I truly
believe it is the one thing that keeps us from busting apart
at the seams as we deal with the challenging issues of man-
aging in a complex business environment.”
The surprising power of embracing team number one is one of the most gratifying and powerful things we witness in the work we do with leaders.
At first, her direct reports resisted. They didn’t want to leave the
physical and emotional comfort of their departments and were con-
cerned that their own direct reports would feel abandoned as a
result. But because she was their boss, they complied.
Within just a few months, the behavior of the executives, the
synergy within the team, and the overall performance of the orga-
nization had improved dramatically. “Somehow we became a new
team with a collective focus, instead of a bunch of subdepartments
doing their own thing. We can’t imagine going back to the old way,”
remarked one of the CIO’s reports. “And even the people in my
department benefited when they saw how aligned and focused we
had become as leaders.”
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ATERIAL doing their own thing. We can’t imagine going back to the old way,”
COPYRIGHTED M
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remarked one of the CIO’s reports. “And even the people in my
COPYRIGHTED M
ATERIAL remarked one of the CIO’s reports. “And even the people in my
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Testament to Unity
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Testament to Unity
One of our consultants was working with the CEO of a
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One of our consultants was working with the CEO of a
mental health hospital who was tired of his staff members’
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mental health hospital who was tired of his staff members’
pursuing their own agendas. Over a period of a few months,
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pursuing their own agendas. Over a period of a few months,
the two of them worked to shift the team’s focus to the col-
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the two of them worked to shift the team’s focus to the col-
lective good of the organization.COPYRIGHTED M
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lective good of the organization.
The surprising power of embracing team number one is one of the
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The surprising power of embracing team number one is one of the most gratifying and powerful things we witness in the work we do with
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most gratifying and powerful things we witness in the work we do with
department benefited when they saw how aligned and focused we
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department benefited when they saw how aligned and focused we
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Testament to Unity
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Testament to Unity
One of our consultants was working with the CEO of a
NOT FOR RESALE
One of our consultants was working with the CEO of a
mental health hospital who was tired of his staff members’
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mental health hospital who was tired of his staff members’
pursuing their own agendas. Over a period of a few months,
NOT FOR RESALE
pursuing their own agendas. Over a period of a few months,
the two of them worked to shift the team’s focus to the col-NOT FOR RESALE
the two of them worked to shift the team’s focus to the col-
lective good of the organization.NOT FOR RESALE
lective good of the organization.
The surprising power of embracing team number one is one of the
NOT FOR RESALEThe surprising power of embracing team number one is one of the
most gratifying and powerful things we witness in the work we do with
NOT FOR RESALE
most gratifying and powerful things we witness in the work we do with
Patrick Lencioni—The Advantage
La
Discipline 1: Build a Cohesive Leadership Team
71
CHeCkLIST fOR DISCIpLIne 1: BUILD A COHeSIve LeADeRSHIp TeAm
Members of a leadership team can be confident that they’ve
mastered this discipline when they can affirm the following
statements:
⎯ The leadership team is small enough (three to ten people)
to be effective.
⎯ Members of the team trust one another and can be genu-
inely vulnerable with each other.
⎯ Team members regularly engage in productive, unfiltered
conflict around important issues.
⎯ The team leaves meetings with clear-cut, active, and
specific agreements around decisions.
⎯ Team members hold one another accountable to commit-
ments and behaviors.
⎯ Members of the leadership team are focused on team
number one. They put the collective priorities and needs of
the larger organization ahead of their own departments.
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mbers of the team trust one another and can be genu-
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mbers of the team trust one another and can be genu-
am members regularly engage in productive, unfiltered
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am members regularly engage in productive, unfiltered
conflict around important issues.
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conflict around important issues.
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e team leaves meetings with clear-cut, active, and
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e team leaves meetings with clear-cut, active, and
specific agreements around decisions.
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specific agreements around decisions.
am members hold one another accountable to commit-
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am members hold one another accountable to commit-
ments and behaviors.
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ments and behaviors.
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mbers of the leadership team are focused on team
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mbers of the leadership team are focused on team
number one. They put the collective priorities and needs of
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number one. They put the collective priorities and needs of
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the larger organization ahead of their own departments.
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the larger organization ahead of their own departments.
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am members regularly engage in productive, unfiltered
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am members regularly engage in productive, unfiltered
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e team leaves meetings with clear-cut, active, and
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e team leaves meetings with clear-cut, active, and
specific agreements around decisions.
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specific agreements around decisions.
am members hold one another accountable to commit-
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am members hold one another accountable to commit-
NOT FOR RESALE
mbers of the leadership team are focused on team
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mbers of the leadership team are focused on team
number one. They put the collective priorities and needs of
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number one. They put the collective priorities and needs of
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the larger organization ahead of their own departments.
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the larger organization ahead of their own departments.
Patrick Lencioni—The Advantage
La
WHAT’S IT WORTH TO YOU?
Again, let’s imagine two different organizations.
The first is led by a team whose members share a common passion for what they do and are committed to abiding by the same set of values. They have a clear plan for success and know exactly how they differ from their competition. At any given moment, they can articulate their top, collective priority, and they understand how every member of the team contributes to achieving that priority.
The second is run by a group of well-intentioned executives who have a good understanding of the details of their business. But they don’t spend much time thinking or talking about why their organiza-tion exists or what values should drive their behaviors. Though they talk about being more strategic, they can’t really articulate a simple, clear strategy, and they don’t have a consistent method for evaluating decisions. The leadership team is constantly managing against a long list of eclectic goals, some of which may not be compatible and most of which pertain to only a few members of the team. Moreover, most team members have somewhat limited knowledge about and interest in the specific responsibilities of their peers.
The question: What kind of advantage would the first organization have over the second, and how much time and energy would it be worth investing to make this advantage a reality?
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The first is led by a team whose members share a common passion
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The first is led by a team whose members share a common passion for what they do and are committed to abiding by the same set of
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for what they do and are committed to abiding by the same set of for what they do and are committed to abiding by the same set of
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for what they do and are committed to abiding by the same set of values. They have a clear plan for success and know exactly how they
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values. They have a clear plan for success and know exactly how they values. They have a clear plan for success and know exactly how they
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values. They have a clear plan for success and know exactly how they differ from their competition. At any given moment, they can articulate
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differ from their competition. At any given moment, they can articulate their top, collective priority, and they understand how every member
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their top, collective priority, and they understand how every member of the team contributes to achieving that priority.
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of the team contributes to achieving that priority.
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The second is run by a group of well-intentioned executives who
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The second is run by a group of well-intentioned executives who have a good understanding of the details of their business. But they
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have a good understanding of the details of their business. But they don’t spend much time thinking or talking about why their organiza-
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don’t spend much time thinking or talking about why their organiza-tion exists or what values should drive their behaviors. Though they
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tion exists or what values should drive their behaviors. Though they
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talk about being more strategic, they can’t really articulate a simple, COPYRIGHTED M
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talk about being more strategic, they can’t really articulate a simple, clear strategy, and they don’t have a consistent method for evaluating COPYRIG
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clear strategy, and they don’t have a consistent method for evaluating NOT FOR R
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for what they do and are committed to abiding by the same set of
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for what they do and are committed to abiding by the same set of values. They have a clear plan for success and know exactly how they
NOT FOR RESALEvalues. They have a clear plan for success and know exactly how they
differ from their competition. At any given moment, they can articulate
NOT FOR RESALEdiffer from their competition. At any given moment, they can articulate differ from their competition. At any given moment, they can articulate
NOT FOR RESALEdiffer from their competition. At any given moment, they can articulate
their top, collective priority, and they understand how every member
NOT FOR RESALE
their top, collective priority, and they understand how every member their top, collective priority, and they understand how every member
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their top, collective priority, and they understand how every member of the team contributes to achieving that priority.
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of the team contributes to achieving that priority.of the team contributes to achieving that priority.
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of the team contributes to achieving that priority.
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The second is run by a group of well-intentioned executives who
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The second is run by a group of well-intentioned executives who have a good understanding of the details of their business. But they
NOT FOR RESALE
have a good understanding of the details of their business. But they don’t spend much time thinking or talking about why their organiza-
NOT FOR RESALE
don’t spend much time thinking or talking about why their organiza-tion exists or what values should drive their behaviors. Though they NOT FOR R
ESALE
tion exists or what values should drive their behaviors. Though they talk about being more strategic, they can’t really articulate a simple, NOT FOR R
ESALE
talk about being more strategic, they can’t really articulate a simple,
Patrick Lencioni—The Advantage
La
73
D I S C I P L I N E 2
Create Clarity
The second requirement for building a healthy organization—creating clarity—is all about
achieving alignment. This is a word that is used incessantly by leaders, consultants, and organiza-tional theorists, and yet for all the attention it gets, real alignment remains frustratingly rare. Most executives who run organizations—and certainly the employees who work for them—will readily attest to this.
A big part of the reason for the failure to gain alignment has to do with the fact that, like so many other popular terms, people use it without being specific about what they mean. Within the context of making an organization healthy, alignment is about creating so much clarity that there is as little room as possible for confusion, disorder, and infight ing
ORGANIZATIONAL HEALTH
3. Overcommunicate
Clarity
4. Reinforce
Clarity
1. Build a
Cohesive Leadership
Team
2. CreateClarity
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T
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The second requirement for building a healthy
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he second requirement for building a healthy organization—creating clarity—is all about
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organization—creating clarity—is all about achieving alignment. This is a word that is used
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achieving alignment. This is a word that is used incessantly by leaders, consultants, and organiza-
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incessantly by leaders, consultants, and organiza-
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he second requirement for building a healthy
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he second requirement for building a healthy organization—creating clarity—is all about
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organization—creating clarity—is all about achieving alignment. This is a word that is used
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achieving alignment. This is a word that is used incessantly by leaders, consultants, and organiza-
NOT FOR RESALE
incessantly by leaders, consultants, and organiza-tional theorists, and yet for all the attention it gets, NOT FOR R
ESALE
tional theorists, and yet for all the attention it gets, real alignment remains frustratingly rare. Most NOT FOR R
ESALE
real alignment remains frustratingly rare. Most
Patrick Lencioni—The Advantage
La
The Advantage
74
to set in. Of course, the responsibility for creating that clarity lies squarely with the leadership team.
Unfortunately, most of the leaders I’ve worked with who complain about a lack of alignment mistakenly see it primarily as a behavioral or attitudinal problem. In their minds, it’s a function of the fact that employ-ees below them do not want to work together. What those executives don’t realize is that there cannot be alignment deeper in the organization, even when employees want to cooperate, if the leaders at the top aren’t in lock-step with one another around a few very specific things.
Of course, few execu-tives will dispute this. It’s hard to argue with the idea that egregious and funda-mental differences among leadership team members create obstacles to alignment and success. But all too often —and this is critical— leaders underestimate the impact of even subtle mis-
alignment at the top, and the damage caused to the rest of the organiza-tion by small gaps among members of the executive team.
Thinking they’re being mature, leaders often agree to disagree with one another around seemingly minor issues, thereby avoiding what they see as unnecessary contentiousness and conflict. After all, from their vantage point, the gaps in their opinions and decisions seem small and innocuous. What they don’t understand is that by failing to eliminate even those small gaps, they are leaving employees below them to fight bloody, unwinnable battles with their peers in other departments. This leads to the antithesis of (oh, I hate to use this word) empowerment.
No matter how many times executives preach about the “e” word in their speeches, there is no way that their employees can be
All too often leaders
underestimate the impact of
even subtle misalignment at
the top and the damage
caused by small gaps among
members of the executive
team.
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when employees want to cooperate, if the leaders at the top aren’t in lock-
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when employees want to cooperate, if the leaders at the top aren’t in lock-step with one another around a few very specific things.
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Of course, few execu-
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Of course, few execu-tives will dispute this. It’s
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tives will dispute this. It’s hard to argue with the idea
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hard to argue with the idea that egregious and funda-
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that egregious and funda-mental differences among
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mental differences among
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alignment at the top, and the damage caused to the rest of the organiza-
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alignment at the top, and the damage caused to the rest of the organiza-tion by small gaps among members of the executive team.COPYRIG
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tion by small gaps among members of the executive team.Thinking they’re being mature, leaders often agree to disagree with COPYRIG
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caused by small gaps among
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caused by small gaps among
members of the executive
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members of the executive
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hard to argue with the idea
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hard to argue with the idea that egregious and funda-
NOT FOR RESALEthat egregious and funda-
mental differences among
NOT FOR RESALEmental differences among
leadership team members
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leadership team members create obstacles to alignment
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create obstacles to alignment and success. But all too often
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and success. But all too often
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NOT FOR RESALE
alignment at the top, and the damage caused to the rest of the organiza-NOT FOR RESALE
alignment at the top, and the damage caused to the rest of the organiza-tion by small gaps among members of the executive team.NOT FOR R
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tion by small gaps among members of the executive team.NOT FOR RESALE
NOT FOR RESALE
Patrick Lencioni—The Advantage
La
Discipline 2: Create Clarity
75
empowered to fully execute their responsibilities if they don’t receive clear and consistent messages about what is important from their leaders across the organization. There is probably no greater frustration for employees than having to constantly navigate the politics and con-fusion caused by leaders who are misaligned. That’s because just a little daylight between members of a leadership team becomes blinding and overwhelming to employees one or two levels below. I’ve heard this referred to as the “vortex effect.” Whatever you call it, it’s real, it’s a big problem, and it makes deep organizational alignment impossible.
Okay, assuming that there is agreement around the benefits of clarity and alignment, the next logical question would be, How do we go about achieving it? Before answering that question, I think it might be helpful to take a look at an example of how not to do it.
BlATHeR
Since the 1980s, many organizations have centered their clarity and alignment efforts around a singular tool that has been a major disap-pointment. What I’m referring to is the mission statement.
Though I can’t be sure, I suspect that at some point about thirty years ago a cleverly sadistic and antibusiness consultant decided that the best way to really screw up companies was to convince them that what they needed was a convoluted, jargony, and all-encompassing declaration of intent. The more times those declarations used phrases like “world class,” “shareholder value,” and “adding value,” the better. And if companies would actually print those declarations and hang them in their lobbies and break rooms for public viewing, well, that would be a real coup.
Even if my historical suspicions are untrue, it can’t be denied that most mission statements have neither inspired people to change the world nor provided them with an accurate description of what an organization actually does for a living. They certainly haven’t created
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” Whatever you call it, it’s real, it’s a big
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” Whatever you call it, it’s real, it’s a big problem, and it makes deep organizational alignment impossible.
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Okay, assuming that there is agreement around the benefits of
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Okay, assuming that there is agreement around the benefits of clarity and alignment, the next logical question would be,
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clarity and alignment, the next logical question would be, Before answering that question, I think it might
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Before answering that question, I think it might be helpful to take a look at an example of how not to do it.
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be helpful to take a look at an example of how not to do it.
the 1980s, many organizations have centered their clarity and
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the 1980s, many organizations have centered their clarity and alignment efforts around a singular tool that has been a major disap-
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alignment efforts around a singular tool that has been a major disap-
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pointment. What I’m referring to is the mission statement.
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pointment. What I’m referring to is the mission statement.Though I can’t be sure, I suspect that at some point about thirty
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ATERIAL
Though I can’t be sure, I suspect that at some point about thirty years ago a cleverly sadistic and antibusiness consultant decided that
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years ago a cleverly sadistic and antibusiness consultant decided that the best way to really screw up companies was to convince them that COPYRIG
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the best way to really screw up companies was to convince them that what they needed was a convoluted, jargony, and all-encompassing COPYRIG
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what they needed was a convoluted, jargony, and all-encompassing NOT FOR R
ESALE Before answering that question, I think it might
NOT FOR RESALE
Before answering that question, I think it might be helpful to take a look at an example of how not to do it.
NOT FOR RESALEbe helpful to take a look at an example of how not to do it.
the 1980s, many organizations have centered their clarity and
NOT FOR RESALE
the 1980s, many organizations have centered their clarity and alignment efforts around a singular tool that has been a major disap-
NOT FOR RESALE
alignment efforts around a singular tool that has been a major disap-
NOT FOR RESALE
pointment. What I’m referring to is the mission statement.
NOT FOR RESALE
pointment. What I’m referring to is the mission statement.Though I can’t be sure, I suspect that at some point about thirty
NOT FOR RESALE
Though I can’t be sure, I suspect that at some point about thirty years ago a cleverly sadistic and antibusiness consultant decided that NOT FOR R
ESALE
years ago a cleverly sadistic and antibusiness consultant decided that the best way to really screw up companies was to convince them that NOT FOR R
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the best way to really screw up companies was to convince them that
Patrick Lencioni—The Advantage
La
The Advantage
76
As bad as it is, it’s hard to deny that this statement seems fairly ordinary, like so many others that we’ve come across in our careers. And yet what makes this one particularly notewor-thy is that it is meant to be a joke. You see, this is the mission statement of Dunder Mifflin, the fictional paper company featured on the timeless sitcom, The Office.
alignment and clarity among employees. What they have done is make many leadership teams look foolish.
Just in case you’re not convinced of this, take a look at the follow-ing mission statement I’ve lifted from the T-shirt of a company that most people know fairly well. I’ve redacted the name of the organization and just one word that might give away its industry. See if you can guess which company it is.
that we’ve come across in our careers. And yet what makes this one particularly notewor-thy is that it is meant to be a joke. You see, this is the mission statement of Dunder Mifflin, the fictional paper company featured on the timeless sitcom,
Alignment and clarity cannot
be achieved in one fell swoop
with a series of buzzwords and
aspirational phrases crammed
together. It requires a much
more rigorous and
unpretentious approach.
Mission stateMent
__________ Incorporated provides its customers with
quality __________ products and the expertise
required for making informed buying decisions. We
provide our products and services with a dedication to
the highest degree of integrity and quality of customer
satisfaction, developing long-term professional rela-
tionships with employees that develop pride, creating
a stable working environment and company spirit.
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Incorporated provides its customers with
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Incorporated provides its customers with
products and the expertise
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products and the expertise
required for making informed buying decisions. We
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required for making informed buying decisions. We
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provide our products and services with a dedication to
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provide our products and services with a dedication to
the highest degree of integrity and quality of customer
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the highest degree of integrity and quality of customer
satisfaction, developing long-term professional rela-
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satisfaction, developing long-term professional rela-
tionships with employees that develop pride, creating
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tionships with employees that develop pride, creating
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As bad as it is, it’s hard to deny that this statement seems fairly COPYRIGHTED M
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As bad as it is, it’s hard to deny that this statement seems fairly COPYRIGHTED M
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a stable working environment and company spirit.
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a stable working environment and company spirit.
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Incorporated provides its customers with
NOT FOR RESALE
Incorporated provides its customers with
products and the expertise
NOT FOR RESALE
products and the expertise
required for making informed buying decisions. We
NOT FOR RESALErequired for making informed buying decisions. We
NOT FOR RESALE
provide our products and services with a dedication to
NOT FOR RESALE
provide our products and services with a dedication to
the highest degree of integrity and quality of customer
NOT FOR RESALE
the highest degree of integrity and quality of customer
satisfaction, developing long-term professional rela-
NOT FOR RESALE
satisfaction, developing long-term professional rela-
tionships with employees that develop pride, creating
NOT FOR RESALE
tionships with employees that develop pride, creating
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As bad as it is, it’s hard to deny that this statement seems fairly NOT FOR RESALE
As bad as it is, it’s hard to deny that this statement seems fairly NOT FOR RESALE
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a stable working environment and company spirit.
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a stable working environment and company spirit.
Patrick Lencioni—The Advantage
La
Discipline 2: Create Clarity
77
That’s right. It’s a spoof. And yet it sounds like so many of the mission statements we’ve seen hanging in the lobbies of companies where we do business.
The point here is that alignment and clarity cannot be achieved in one fell swoop with a series of generic buzzwords and aspirational phrases cram med together. Leaders simply can not inspire, inform, motivate, market, and position their companies in the context of a T-shirt or lucite tschotske. Clarity requires a much more rigorous and unpretentious approach.
SIx CRITICAl QUeSTIOnS
What leaders must do to give employees the clarity they need is agree on the answers to six simple but critical questions and thereby eliminate even small discrepancies in their thinking. None of these questions is novel per se. What is new is the realization that none of them can be addressed in isolation; they must be answered together. Failing to achieve alignment around any one of them can prevent an organization from attaining the level of clarity necessary to become healthy.
These are the six questions:
1. Why do we exist?2. How do we behave?3. What do we do?4. How will we succeed?5. What is most important, right now?6. Who must do what?
If members of a leadership team can rally around clear answers to these fundamental questions—without using jargon and shmarmy language—they will drastically increase the likelihood of creating a healthy organization. This may well be the most important step of all in achieving the advantage of organizational health.
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T-shirt or lucite tschotske. Clarity requires a much more rigorous and
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T-shirt or lucite tschotske. Clarity requires a much more rigorous and
must do to give employees the clarity they need is agree
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must do to give employees the clarity they need is agree on the answers to six simple but critical questions and thereby eliminate
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on the answers to six simple but critical questions and thereby eliminate even small discrepancies in their thinking. None of these questions is
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even small discrepancies in their thinking. None of these questions is novel per se. What is new is the realization that none of them can be
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novel per se. What is new is the realization that none of them can be addressed in isolation; they must be answered together. Failing to
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addressed in isolation; they must be answered together. Failing to achieve alignment around any one of them can prevent an organization
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achieve alignment around any one of them can prevent an organization from attaining the level of clarity necessary to become healthy.
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from attaining the level of clarity necessary to become healthy.
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These are the six questions:
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These are the six questions:
Wh
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Why do we exist?
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y do we exist?2. COPYRIG
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2. HoCOPYRIGHTED M
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Ho NOT FOR RESALEmust do to give employees the clarity they need is agree
NOT FOR RESALEmust do to give employees the clarity they need is agree
on the answers to six simple but critical questions and thereby eliminate
NOT FOR RESALEon the answers to six simple but critical questions and thereby eliminate
even small discrepancies in their thinking. None of these questions is
NOT FOR RESALE
even small discrepancies in their thinking. None of these questions is novel per se. What is new is the realization that none of them can be
NOT FOR RESALE
novel per se. What is new is the realization that none of them can be addressed in isolation; they must be answered together. Failing to
NOT FOR RESALE
addressed in isolation; they must be answered together. Failing to achieve alignment around any one of them can prevent an organization
NOT FOR RESALE
achieve alignment around any one of them can prevent an organization from attaining the level of clarity necessary to become healthy.
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from attaining the level of clarity necessary to become healthy.
NOT FOR RESALE
These are the six questions:
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These are the six questions:
y do we exist?NOT FOR RESALE
y do we exist?w do we behave?NOT FOR R
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w do we behave?
Patrick Lencioni—The Advantage
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The Advantage
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Answering these questions, like everything else in this book, is as difficult as it is theoretically simple. It’s simple in that it doesn’t require great intellectual capacity or cleverness; every leadership team has more than enough information and experience to achieve clarity. It can be difficult, however, for a variety of reasons.
First, as we explored in the last chapter, it requires cohesion at the top. A team that isn’t behaviorally cohesive won’t be able to engage in the level of passionate, messy dialogue that is required to achieve real buy-in around these questions.
Second—and this is a big one—it’s often tempting for leaders to slip into a marketing or sloganizing mind-set when answering these questions, trying to come up with catchy phrases or impressive-sounding statements. This is a sign that the team is missing the boat and has been distracted from its real purpose: establishing true clarity and alignment.
Finally, answering these questions requires time. Not months, but certainly a few days up front followed by a little more time in the fol-lowing weeks to fully bake the answers. Taking time to sit with the questions and ensure that all members of the leadership team understand what they mean and are truly aligned around the answers is essential.
But what if the answers they come up with are wrong? Here’s the thing: there are no right or wrong answers. I mean, who’s to say what is right and wrong when it comes to setting the direction of an organization? After all, there’s more than one way to skin a cat, or so I’ve been told. More than getting the right answer, it is important to
simply have an answer—one that is directionally correct and around which all team members can commit.
More than getting the right
answer, it’s often more
important to simply have an
answer—one that is
directionally correct and
around which all team
members can commit.
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the level of passionate, messy dialogue that is required to achieve real
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the level of passionate, messy dialogue that is required to achieve real
Second—and this is a big one—it’s often tempting for leaders to slip
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Second—and this is a big one—it’s often tempting for leaders to slip into a marketing or sloganizing mind-set when answering these questions,
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into a marketing or sloganizing mind-set when answering these questions, trying to come up with catchy phrases or impressive-sounding statements.
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trying to come up with catchy phrases or impressive-sounding statements. This is a sign that the team is missing the boat and has been distracted
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This is a sign that the team is missing the boat and has been distracted from its real purpose: establishing true clarity and alignment.
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from its real purpose: establishing true clarity and alignment.Finally, answering these questions requires time. Not months, but
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Finally, answering these questions requires time. Not months, but certainly a few days up front followed by a little more time in the fol-
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certainly a few days up front followed by a little more time in the fol-lowing weeks to fully bake the answers. Taking time to sit with the
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lowing weeks to fully bake the answers. Taking time to sit with the questions and ensure that all members of the leadership team understand
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questions and ensure that all members of the leadership team understand what they mean and are truly aligned around the answers is essential.
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what they mean and are truly aligned around the answers is essential.But what if the answers they come up with are wrong? Here’s the
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But what if the answers they come up with are wrong? Here’s the
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More than getting the
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More than getting the
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answer, it’s often more COPYRIGHTED M
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answer, it’s often more NOT FOR R
ESALEtrying to come up with catchy phrases or impressive-sounding statements.
NOT FOR RESALE
trying to come up with catchy phrases or impressive-sounding statements. This is a sign that the team is missing the boat and has been distracted
NOT FOR RESALEThis is a sign that the team is missing the boat and has been distracted
from its real purpose: establishing true clarity and alignment.
NOT FOR RESALEfrom its real purpose: establishing true clarity and alignment.
Finally, answering these questions requires time. Not months, but
NOT FOR RESALE
Finally, answering these questions requires time. Not months, but certainly a few days up front followed by a little more time in the fol-
NOT FOR RESALE
certainly a few days up front followed by a little more time in the fol-lowing weeks to fully bake the answers. Taking time to sit with the
NOT FOR RESALE
lowing weeks to fully bake the answers. Taking time to sit with the questions and ensure that all members of the leadership team understand
NOT FOR RESALE
questions and ensure that all members of the leadership team understand what they mean and are truly aligned around the answers is essential.
NOT FOR RESALE
what they mean and are truly aligned around the answers is essential.But what if the answers they come up with are wrong? Here’s the
NOT FOR RESALE
But what if the answers they come up with are wrong? Here’s the
NOT FOR RESALE
NOT FOR RESALE
More than getting the NOT FOR RESALE
More than getting the rightNOT FOR RESALE
right
Patrick Lencioni—The Advantage
La
Discipline 2: Create Clarity
79
Wait for It . . .
The head of marketing for a large company I once worked
for complained incessantly about the CEO’s lack of decisive-
ness. “When is this guy going to announce a strategic direc-
tion for the company?” was his mantra-like rhetorical question.
He was relentless, and to be fair, many of us agreed with him
even if we didn’t like his dismissive attitude toward his boss.
Well, the board finally removed the CEO and, wouldn’t
you know it, put the head of marketing in charge of the
company. Though we liked the previous chief executive, we
PeRfeCTIOn PARAlYSIS
So many organizations struggle with this idea that there are no right answers. I think they’ve been influenced by academics, analysts, and industry pundits who falsely attribute business success to intellectual precision and accuracy in decision making. The stories journalists write always seem to conclude that a company succeeded because it came up with the right strategic answers, even though the leaders of those orga-nizations will almost always tell you that what they were really good at was not necessarily having the right answer, but rather being able to rally around the best answer they could find at the time. This tendency to apply twenty-twenty hindsight to success falsely leads people to think that intelligence and precision, rather than clarity, are key.
Plenty of euphemisms attest to this idea that implementation science is more important than decision science. One I heard years ago comes from the military: a plan is better than no plan. And it was General Patton who once said, “A good plan violently executed today is better than a perfect plan executed next week.” Those adages attest to something I’ve seen among too many leadership teams: a simple failure to achieve clarity because executives are waiting for perfection. In the meantime, confusion reigns, leaders lose credibility, and the organization suffers.
Lencioni_1522_c04_main.indd 79 1/17/2012 1:46:59 PM
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ATERIAL nizations will almost always tell you that what they were really good at
COPYRIGHTED M
ATERIAL nizations will almost always tell you that what they were really good at
was not necessarily having the right answer, but rather being able to
COPYRIGHTED M
ATERIAL was not necessarily having the right answer, but rather being able to
rally around the best answer they could find at the time. This tendency
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rally around the best answer they could find at the time. This tendency to apply twenty-twenty hindsight to success falsely leads people to think
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to apply twenty-twenty hindsight to success falsely leads people to think that intelligence and precision, rather than clarity, are key.
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that intelligence and precision, rather than clarity, are key.Plenty of euphemisms attest to this idea that implementation
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Plenty of euphemisms attest to this idea that implementation science is more important than decision science. One I heard years ago
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science is more important than decision science. One I heard years ago
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plan is better than
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plan is better than General Patton who once said, “A good plan violently executed today
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General Patton who once said, “A good plan violently executed today is better than a perfect plan executed next week.” Those adages attest
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is better than a perfect plan executed next week.” Those adages attest to something I’ve seen among too many leadership teams: a simple
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to something I’ve seen among too many leadership teams: a simple
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failure to achieve clarity because executives are waiting for perfection.
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failure to achieve clarity because executives are waiting for perfection. In the meantime, confusion reigns, leaders lose credibility, and the
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In the meantime, confusion reigns, leaders lose credibility, and the
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organization suffers.
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organization suffers.NOT FOR RESALE
to apply twenty-twenty hindsight to success falsely leads people to think
NOT FOR RESALE
to apply twenty-twenty hindsight to success falsely leads people to think that intelligence and precision, rather than clarity, are key.
NOT FOR RESALE
that intelligence and precision, rather than clarity, are key.Plenty of euphemisms attest to this idea that implementation
NOT FOR RESALEPlenty of euphemisms attest to this idea that implementation
science is more important than decision science. One I heard years ago
NOT FOR RESALE
science is more important than decision science. One I heard years ago
NOT FOR RESALE
plan is better than
NOT FOR RESALE
plan is better than General Patton who once said, “A good plan violently executed today
NOT FOR RESALE
General Patton who once said, “A good plan violently executed today is better than a perfect plan executed next week.” Those adages attest
NOT FOR RESALE
is better than a perfect plan executed next week.” Those adages attest to something I’ve seen among too many leadership teams: a simple
NOT FOR RESALE
to something I’ve seen among too many leadership teams: a simple
NOT FOR RESALE
failure to achieve clarity because executives are waiting for perfection.
NOT FOR RESALE
failure to achieve clarity because executives are waiting for perfection. In the meantime, confusion reigns, leaders lose credibility, and the
NOT FOR RESALE
In the meantime, confusion reigns, leaders lose credibility, and the organization suffers.NOT FOR R
ESALE
organization suffers.
Patrick Lencioni—The Advantage
La
The Advantage
80
Of course, that’s not to say that leaders should just come up with any answer to these questions without regard to whether or not they are directionally correct. That would be ridiculous. It’s just to say that waiting for clear confirmation that a decision is exactly right is a recipe for mediocrity and almost a guarantee of eventual failure. That’s because organizations learn by making decisions, even bad ones. By being deci-sive, leaders allow themselves to get clear, immediate data from their actions. As a result, they are often able to change course and defeat their indecisive competitors who, while congratulating themselves for not making a mistake, are too mired in theoretical analysis paralysis to rally around any clear plan.
were excited by the prospect that the organization now had
a leader who was finally going to declare a position in the
market and chart a course for the future.
For the first few weeks of the new CEO’s tenure, we
gently asked him if he was ready to communicate the com-
pany’s new direction.
“Not yet,” he assured us. “I’m waiting for a few things to
take shape first.”
That seemed reasonable for a new leader, so we decided
to give him time. But for the next few months, he kept
putting us off. “The market is changing,” he would say as we
encouraged him to set the course for the company. Mean-
while, employees grumbled, competitors outflanked us, and
paralysis set in, all because the leader wanted to find the
perfect plan.
Nine months later—I promise that this actually happened—
we were still operating without a clear statement of direction.
The only thing the CEO was willing to commit to, in terms
of anything new regarding clarity, was a three-word slogan
to be used for marketing purposes (and yes, the three words
rhymed).
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ATERIAL That seemed reasonable for a new leader, so we decided
COPYRIGHTED M
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to give him time. But for the next few months, he kept
COPYRIGHTED M
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putting us off. “The market is changing,” he would say as we
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putting us off. “The market is changing,” he would say as we
encouraged him to set the course for the company. Mean-
COPYRIGHTED M
ATERIAL
encouraged him to set the course for the company. Mean-
while, employees grumbled, competitors outflanked us, and
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ATERIAL
while, employees grumbled, competitors outflanked us, and
paralysis set in, all because the leader wanted to find the
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paralysis set in, all because the leader wanted to find the
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Nine months later—I promise that this actually happened—
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Nine months later—I promise that this actually happened—
we were still operating without a clear statement of direction.
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we were still operating without a clear statement of direction.
The only thing the CEO was willing to commit to, in terms
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The only thing the CEO was willing to commit to, in terms
of anything new regarding clarity, was a three-word slogan
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of anything new regarding clarity, was a three-word slogan
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Of course, that’s not to say that leaders should just come up with
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Of course, that’s not to say that leaders should just come up with any answer to these questions without regard to whether or not they COPYRIG
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any answer to these questions without regard to whether or not they
to be used for marketing purposes (and yes, the three words
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to be used for marketing purposes (and yes, the three words
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while, employees grumbled, competitors outflanked us, and
NOT FOR RESALE
while, employees grumbled, competitors outflanked us, and
paralysis set in, all because the leader wanted to find the
NOT FOR RESALEparalysis set in, all because the leader wanted to find the
NOT FOR RESALE
Nine months later—I promise that this actually happened—
NOT FOR RESALE
Nine months later—I promise that this actually happened—
we were still operating without a clear statement of direction.
NOT FOR RESALE
we were still operating without a clear statement of direction.
The only thing the CEO was willing to commit to, in terms
NOT FOR RESALE
The only thing the CEO was willing to commit to, in terms
of anything new regarding clarity, was a three-word slogan
NOT FOR RESALE
of anything new regarding clarity, was a three-word slogan
NOT FOR RESALE
Of course, that’s not to say that leaders should just come up with NOT FOR RESALE
Of course, that’s not to say that leaders should just come up with
to be used for marketing purposes (and yes, the three words
NOT FOR RESALE
to be used for marketing purposes (and yes, the three words
Patrick Lencioni—The Advantage
La
Discipline 2: Create Clarity
81
Now that we’ve acknowledged the danger of seeking perfection at the expense of decisiveness, let’s take on each of the six critical questions that leaders must answer in order to create clarity and build a healthy organization.
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NOT FOR RESALE
Patrick Lencioni—The Advantage
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The Advantage
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QUeSTIOn 1: WHY DO We exIST?
Answering this question requires a leadership team to identify its underly-ing reason for being, also known as its core purpose. Jim Collins and Jerry Porras introduced the idea of core purpose in their great book, Built to Last.1 They asserted that successful, enduring organizations understand the fundamental reason they were founded and why they exist, and they stay true to that reason. This helps them avoid losing their way.
I certainly believe that Collins and Porras were right. Unfortu-nately, too many of the teams I’ve come across in my consulting work fail to properly capture what the authors intended. Instead, they end up with uninspiring and mediocre mission statements that are neither lofty enough nor descriptive enough to be helpful (see the Dunder Mifflin example in the previous “Blather” section).
An organization’s core purpose—why it exists—has to be completely idealistic. I can’t reiterate this point enough. Many leadership teams struggle with this, afraid that what they come up with will seem too grand
or aspirational. Of course, that’s the whole point. Employees in every organization, and at every level, need to know that at the heart of what they do lies something grand and aspirational. They’re well aware that ultimately it will boil down to tangible, tactical activities.
In order to successfully identify their organization’s purpose, leaders must accept the notion that all organizations exist to make people’s lives better. Again, that sounds idealistic, but every enterprise—every last one—ultimately should exist to do just that. To aspire to anything less would be foolish. After all, no one doubts that every company must have some sort of value proposition—a compelling reason that custom-
Employees in every
organization, and at every level,
need to know that at the heart
of what they do lies something
grand and aspirational.
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stay true to that reason. This helps them avoid losing their way.
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stay true to that reason. This helps them avoid losing their way.I certainly believe that Collins and Porras were right. Unfortu-
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ATERIAL I certainly believe that Collins and Porras were right. Unfortu-
nately, too many of the teams I’ve come across in my consulting work
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nately, too many of the teams I’ve come across in my consulting work fail to properly capture what the authors intended. Instead, they end
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fail to properly capture what the authors intended. Instead, they end up with uninspiring and mediocre mission statements that are neither
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up with uninspiring and mediocre mission statements that are neither lofty enough nor descriptive enough to be helpful (see the Dunder
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lofty enough nor descriptive enough to be helpful (see the Dunder Mifflin example in the previous “Blather” section).
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Mifflin example in the previous “Blather” section).
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organization, and at every level,
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organization, and at every level,
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need to know that at the heart
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need to know that at the heart
of what they do lies something
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of what they do lies something
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or aspirational. Of course, that’s the whole point. Employees in every COPYRIGHTED M
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or aspirational. Of course, that’s the whole point. Employees in every COPYRIGHTED M
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grand and aspirational.
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grand and aspirational.
NOT FOR RESALE
up with uninspiring and mediocre mission statements that are neither
NOT FOR RESALE
up with uninspiring and mediocre mission statements that are neither lofty enough nor descriptive enough to be helpful (see the Dunder
NOT FOR RESALElofty enough nor descriptive enough to be helpful (see the Dunder
Mifflin example in the previous “Blather” section).
NOT FOR RESALEMifflin example in the previous “Blather” section).An organization’s core
NOT FOR RESALEAn organization’s core
purpose—why it exists—has
NOT FOR RESALE
purpose—why it exists—has to be completely idealistic.
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to be completely idealistic.
NOT FOR RESALE
NOT FOR RESALE
organization, and at every level,
NOT FOR RESALE
organization, and at every level,
NOT FOR RESALE
NOT FOR RESALE
need to know that at the heart
NOT FOR RESALE
need to know that at the heart
of what they do lies something
NOT FOR RESALE
of what they do lies something
grand and aspirational.
NOT FOR RESALE
grand and aspirational.
Patrick Lencioni—The Advantage
La
Discipline 2: Create Clarity
83
ers or constituents want to interact with it. And at the heart of that interaction is the expectation of a better life.
Now that doesn’t mean that all organizations make people’s lives better in major, transformational ways. Most do so in relatively small, subtle ways. And it doesn’t mean that they make all people’s lives better; usually it’s a relatively small subset of the population. Nonetheless, every organization must contribute in some way to a better world for some group of people, because if it doesn’t, it will, and should, go out of business.
Assuming that a given organization does, in fact, have the potential for identifying an underlying reason for being—I’ve yet to meet one that doesn’t—the challenge then is to identify and articulate that reason. If leaders can’t do that, they cannot rightfully expect employees to get out of bed every morning with any sense of purpose beyond completing tasks and keeping their jobs.
There is a darn good chance that your company—in fact, any given company—has not yet identified its purpose. I’ve found that most have not, at least not adequately. And I’ve come to realize that even organiza-tions that think they have usually haven’t done so with the degree of rigor and specificity that is necessary. This leads to two problems.
First, those teams don’t achieve a real sense of collective commit-ment from their members. Too often busy executives who want nothing to do with what they see as ethereal, metaphysical conversations simply nod their heads and agree with whatever the team comes up with for a statement of purpose. This is a recipe for jargony, empty declarations.
Second, and this is certainly related, those executives don’t see the company’s reason for existing as having any practical implications for the way they make decisions and run the organization. As a result of having no real idealistic boundaries, they operate in a largely reactive, shortsighted way, being overly tactical and opportunistic. And they often lose their way by getting involved in a variety of random pursuits
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some group of people, because if it doesn’t, it will, and should, go out
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some group of people, because if it doesn’t, it will, and should, go out
Assuming that a given organization does, in fact, have the potential
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Assuming that a given organization does, in fact, have the potential for identifying an underlying reason for being—I’ve yet to meet one
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for identifying an underlying reason for being—I’ve yet to meet one that doesn’t—the challenge then is to identify and articulate that reason.
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that doesn’t—the challenge then is to identify and articulate that reason. If leaders can’t do that, they cannot rightfully expect employees to get
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If leaders can’t do that, they cannot rightfully expect employees to get out of bed every morning with any sense of purpose beyond completing
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out of bed every morning with any sense of purpose beyond completing
There is a darn good chance that your company—in fact, any given
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There is a darn good chance that your company—in fact, any given company—has not yet identified its purpose. I’ve found that most have
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company—has not yet identified its purpose. I’ve found that most have
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not, at least not adequately. And I’ve come to realize that even organiza-
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not, at least not adequately. And I’ve come to realize that even organiza-tions that think they have usually haven’t done so with the degree of
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tions that think they have usually haven’t done so with the degree of rigor and specificity that is necessary. This leads to two problems.
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rigor and specificity that is necessary. This leads to two problems.First, those teams don’t achieve a real sense of collective commit-
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First, those teams don’t achieve a real sense of collective commit-
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ment from their members. Too often busy executives who want nothing COPYRIGHTED M
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ment from their members. Too often busy executives who want nothing to do with what they see as ethereal, metaphysical conversations COPYRIG
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to do with what they see as ethereal, metaphysical conversations NOT FOR R
ESALEthat doesn’t—the challenge then is to identify and articulate that reason.
NOT FOR RESALE
that doesn’t—the challenge then is to identify and articulate that reason. If leaders can’t do that, they cannot rightfully expect employees to get
NOT FOR RESALEIf leaders can’t do that, they cannot rightfully expect employees to get
out of bed every morning with any sense of purpose beyond completing
NOT FOR RESALEout of bed every morning with any sense of purpose beyond completing
There is a darn good chance that your company—in fact, any given
NOT FOR RESALE
There is a darn good chance that your company—in fact, any given company—has not yet identified its purpose. I’ve found that most have
NOT FOR RESALE
company—has not yet identified its purpose. I’ve found that most have
NOT FOR RESALE
not, at least not adequately. And I’ve come to realize that even organiza-
NOT FOR RESALE
not, at least not adequately. And I’ve come to realize that even organiza-tions that think they have usually haven’t done so with the degree of
NOT FOR RESALE
tions that think they have usually haven’t done so with the degree of rigor and specificity that is necessary. This leads to two problems.
NOT FOR RESALE
rigor and specificity that is necessary. This leads to two problems.First, those teams don’t achieve a real sense of collective commit-NOT FOR R
ESALE
First, those teams don’t achieve a real sense of collective commit-ment from their members. Too often busy executives who want nothing NOT FOR R
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ment from their members. Too often busy executives who want nothing
Patrick Lencioni—The Advantage
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The Advantage
84
and projects that might be financially justifiable in the short term but don’t really fit together. This tends to dilute the focus and passion that employees look for when they’re coming to work.
Some executives, especially those who are a little cynical about all this purpose stuff, will say that their company exists simply to make money for owners or shareholders. That is almost never a purpose, but rather an important indicator of success. It’s how an organization knows that it is effectively fulfilling its purpose, but it falls far short of providing the organization with a guide to what ultimately matters most.
In those rare companies where business owners really do believe that the organization’s underlying purpose is to provide themselves with financial windfalls, it is best that leaders are up front about that purpose. Otherwise they’ll create confusion, cynicism, and a sense of betrayal among employees who almost always prefer a more idealistic reason for coming to work.
Finding Your Reason for ExistingWhen leaders set about identifying the purpose of their organization, there are a few critical factors they must keep in mind to give them a good chance at success.
First, they must be clear that answering this question is not the end of the clarity process. They will have the opportunity, in short order, to clarify more tactical areas of focus for the organization in a less idealistic, more practical way. Knowing this gives them the confidence they need to be purely idealistic in their momentary pursuit of address-ing this question and to avoid the guilt-driven temptation to include too many practical concepts that are of a more tactical nature.
Second, an organization’s reason for existence, its purpose, has to be true. It must be based on the real motivations of the people who founded or are running the organization, not something that simply sounds good on paper. Identifying an organization’s true purpose becomes difficult
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knows that it is effectively fulfilling its purpose, but it falls far short of
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knows that it is effectively fulfilling its purpose, but it falls far short of providing the organization with a guide to what ultimately matters
COPYRIGHTED M
ATERIAL providing the organization with a guide to what ultimately matters
In those rare companies where business owners really do believe
COPYRIGHTED M
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In those rare companies where business owners really do believe that the organization’s underlying purpose is to provide themselves with
COPYRIGHTED M
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that the organization’s underlying purpose is to provide themselves with financial windfalls, it is best that leaders are up front about that purpose.
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financial windfalls, it is best that leaders are up front about that purpose. Otherwise they’ll create confusion, cynicism, and a sense of betrayal
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Otherwise they’ll create confusion, cynicism, and a sense of betrayal among employees who almost always prefer a more idealistic reason for
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among employees who almost always prefer a more idealistic reason for
Finding Your Reason for Existing
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Finding Your Reason for Existing
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When leaders set about identifying the purpose of their organization,
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When leaders set about identifying the purpose of their organization, there are a few critical factors they must keep in mind to give them a
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there are a few critical factors they must keep in mind to give them a good chance at success.
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good chance at success.First, they must be clear that answering this question is not the end COPYRIG
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First, they must be clear that answering this question is not the end of the clarity process. They will have the opportunity, in short order, COPYRIG
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of the clarity process. They will have the opportunity, in short order, NOT FOR R
ESALEthat the organization’s underlying purpose is to provide themselves with
NOT FOR RESALE
that the organization’s underlying purpose is to provide themselves with financial windfalls, it is best that leaders are up front about that purpose.
NOT FOR RESALEfinancial windfalls, it is best that leaders are up front about that purpose.
Otherwise they’ll create confusion, cynicism, and a sense of betrayal
NOT FOR RESALEOtherwise they’ll create confusion, cynicism, and a sense of betrayal
among employees who almost always prefer a more idealistic reason for
NOT FOR RESALE
among employees who almost always prefer a more idealistic reason for
Finding Your Reason for Existing
NOT FOR RESALE
Finding Your Reason for Existing
NOT FOR RESALE
When leaders set about identifying the purpose of their organization,
NOT FOR RESALE
When leaders set about identifying the purpose of their organization, there are a few critical factors they must keep in mind to give them a
NOT FOR RESALE
there are a few critical factors they must keep in mind to give them a good chance at success.
NOT FOR RESALE
good chance at success.First, they must be clear that answering this question is not the end NOT FOR R
ESALE
First, they must be clear that answering this question is not the end
Patrick Lencioni—The Advantage
La
Discipline 2: Create Clarity
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when that organization has been around for a long time, sometimes for decades, and has never really clarified its underlying reason for being. In those cases, leaders have to go back and try to understand why its founders started the organization or, at the very least, to connect their current motivations to the organization’s history. If this isn’t doable, then those leaders need to go about this process as though they were rebirth-ing the company themselves, and they must be prepared to stick with their answer for as long as the organization exists.
Third, the process of determining an organization’s purpose cannot be confused with marketing, external or internal. It must be all about clarity and alignment. Certainly it will be important to eventually com-municate the answer to the entire organization, and maybe even to integrate it into external communication when appropriate. But a real danger, and a common one, occurs when leaders confuse their motiva-tion for identifying their purpose with trying to come up with some-thing that will sound impressive on a billboard, in an annual report, or on an employee sweatshirt.
When leaders do this, confusing marketing with creating clarity, they often commit the subsequent error of making a big, formal announcement about the company’s purpose. This only provokes cyni-cism. I try to remind them that even if they never wrote it down or formally communicated their core purpose (not that I would ever rec-ommend this), if it lived only in the hearts and minds of the leadership team, it could still do its job by guiding their decisions and actions and keeping the company grounded. Eventually it would become apparent to employees and customers alike, even without billboards and sweatshirts.
So how does an organization go about figuring out why it exists? It starts by asking this question: “How do we contribute to a better world?” Again, skeptics who think this sounds soft or ethereal need to remember that this is not the end of the clarity process and that it is critical to create a framework for more tactical decisions.
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be confused with marketing, external or internal. It must be all about
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be confused with marketing, external or internal. It must be all about clarity and alignment. Certainly it will be important to eventually com-
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clarity and alignment. Certainly it will be important to eventually com-municate the answer to the entire organization, and maybe even to
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municate the answer to the entire organization, and maybe even to integrate it into external communication when appropriate. But a real
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integrate it into external communication when appropriate. But a real danger, and a common one, occurs when leaders confuse their motiva-
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danger, and a common one, occurs when leaders confuse their motiva-tion for identifying their purpose with trying to come up with some-
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tion for identifying their purpose with trying to come up with some-thing that will sound impressive on a billboard, in an annual report, or
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thing that will sound impressive on a billboard, in an annual report, or
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on an employee sweatshirt.
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on an employee sweatshirt.When leaders do this, confusing marketing with creating clarity,
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When leaders do this, confusing marketing with creating clarity, they often commit the subsequent error of making a big, formal
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they often commit the subsequent error of making a big, formal announcement about the company’s purpose. This only provokes cyni-
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announcement about the company’s purpose. This only provokes cyni-
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cism. I try to remind them that even if they never wrote it down or
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cism. I try to remind them that even if they never wrote it down or formally communicated their core purpose (not that I would ever rec-COPYRIG
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formally communicated their core purpose (not that I would ever rec-ommend this), if it lived only in the hearts and minds of the leadership COPYRIG
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ommend this), if it lived only in the hearts and minds of the leadership NOT FOR R
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municate the answer to the entire organization, and maybe even to integrate it into external communication when appropriate. But a real
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danger, and a common one, occurs when leaders confuse their motiva-
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tion for identifying their purpose with trying to come up with some-
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tion for identifying their purpose with trying to come up with some-thing that will sound impressive on a billboard, in an annual report, or
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thing that will sound impressive on a billboard, in an annual report, or
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When leaders do this, confusing marketing with creating clarity,
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When leaders do this, confusing marketing with creating clarity, they often commit the subsequent error of making a big, formal
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they often commit the subsequent error of making a big, formal announcement about the company’s purpose. This only provokes cyni-
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announcement about the company’s purpose. This only provokes cyni-
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cism. I try to remind them that even if they never wrote it down or NOT FOR RESALE
cism. I try to remind them that even if they never wrote it down or formally communicated their core purpose (not that I would ever rec-NOT FOR R
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formally communicated their core purpose (not that I would ever rec-
Patrick Lencioni—The Advantage
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Usually the first answer that leaders come up with is not ideal enough—for example: We help companies use technology to do more busi-ness with their partners. We pave driveways so people can get in and out of their houses and go places. We teach kids how to do their homework better.
Those are a start, but they’re certainly not lofty enough. As Porras and Collins say, the next question that needs to be asked, and asked again and again until it leads to the highest purpose or reason for exis-tence, is Why? Why do we do that? Why do we help companies use technol-ogy to do more business with their partners? Why do we pave driveways? Why do we teach kids how to do their homework better?
Eventually, by answering that question again and again, a leader-ship team will get to a point where they’ve identified the most idealistic reason for their business. That point will be somewhere just shy of to make the world a better place. That’s how they’ll know they’re done.
“Why Do We Exist?” CategoriesA tricky part of this is understanding that there are a number of very different categories of purpose, any of which can be valid. Identifying which category fits your organization’s purpose can be very helpful in focusing your discussion of why your organization exists because it better clarifies who the organization ultimately serves.
Customer: This purpose is directly related to serving the needs of an organization’s customer or primary constituent. For instance, a hotel might exist simply because its founder always believed in serving customers. In other words, it’s about pleasing the human beings who walk through its doors. How does that inform the leaders? Well, if customers have a need, the hotel should try to fill it, because that would be true to its purpose. And the hotel shouldn’t hire people who don’t love to serve customers.
The department store Nordstrom is a good example of this. Their underlying motivation for everything they do is about serving custom-
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Why? Why do we do that? Why do we help companies use technol-
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Why? Why do we do that? Why do we help companies use technol-ogy to do more business with their partners? Why do we pave driveways?
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Why do we teach kids how to do their homework better?
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Why do we teach kids how to do their homework better?Eventually, by answering that question again and again, a leader-
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Eventually, by answering that question again and again, a leader-ship team will get to a point where they’ve identified the most idealistic
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ship team will get to a point where they’ve identified the most idealistic reason for their business. That point will be somewhere just shy of
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reason for their business. That point will be somewhere just shy of That’s how they’ll know they’re done.
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That’s how they’ll know they’re done.
“Why Do We Exist?” Categories
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“Why Do We Exist?” Categories
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A tricky part of this is understanding that there are a number of very
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A tricky part of this is understanding that there are a number of very different categories of purpose, any of which can be valid. Identifying
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different categories of purpose, any of which can be valid. Identifying which category fits your organization’s purpose can be very helpful in
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which category fits your organization’s purpose can be very helpful in focusing your discussion of why your organization exists because it
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focusing your discussion of why your organization exists because it
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better clarifies who the organization ultimately serves.
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better clarifies who the organization ultimately serves.
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ship team will get to a point where they’ve identified the most idealistic reason for their business. That point will be somewhere just shy of
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That’s how they’ll know they’re done.
NOT FOR RESALE That’s how they’ll know they’re done.
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A tricky part of this is understanding that there are a number of very
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A tricky part of this is understanding that there are a number of very different categories of purpose, any of which can be valid. Identifying
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different categories of purpose, any of which can be valid. Identifying which category fits your organization’s purpose can be very helpful in
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which category fits your organization’s purpose can be very helpful in focusing your discussion of why your organization exists because it
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focusing your discussion of why your organization exists because it
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better clarifies who the organization ultimately serves.NOT FOR R
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better clarifies who the organization ultimately serves.
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ers. Period. It’s not really about fashion, though they certainly need to be good at that; it’s about giving people what they’re looking for, no matter what.
Industry: This purpose is all about being immersed in a given industry. Getting back to the hotel example, maybe it exists because its owners just love the hotel business. It isn’t going to try to get into other lines of business that are not central to hotels, and it isn’t going to hire people who don’t think that hotels are cool.
Many smaller businesses and entrepreneurial ventures fall into this category: they simply love the nature of their industry. That’s why its founders started their business in the first place: to do what they love.
One that comes to mind is a horse-training company one of our consultants has worked with in Texas. The founder and CEO grew up on a ranch in Australia and loves everything to do with horses. So his stated purpose is “to inspire the dreams of horsemen.” Everything his company does is born out of a love for horses and the people who share that love.
Greater Cause: This kind of purpose is not necessarily about what the organization does, but about something connected to it. For instance, a hotel might exist because its owner is a fanatic about vacations. Or maybe it’s all about allowing people to experience luxury. Or the importance of special occasions. It’s not about hotels per se, and it’s not simply about making any customer happy. The hotel exists because it believes in something that a hotel can play a role in making a reality. Ideally employees ought to buy into, if not share, a passion for vacations, luxury, celebrating special occasions, or whatever else it is that drives the owners or leaders of the organization.
The reason that Southwest Airlines exists is to democratize air travel in America. It believes that flying on airplanes shouldn’t be reserved for the wealthy and that all people should be able to attend a family
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of business that are not central to hotels, and it isn’t going to hire people
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of business that are not central to hotels, and it isn’t going to hire people
Many smaller businesses and entrepreneurial ventures fall into this
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Many smaller businesses and entrepreneurial ventures fall into this category: they simply love the nature of their industry. That’s why its
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category: they simply love the nature of their industry. That’s why its founders started their business in the first place: to do what they love.
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founders started their business in the first place: to do what they love.One that comes to mind is a horse-training company one of our
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One that comes to mind is a horse-training company one of our consultants has worked with in Texas. The founder and CEO grew up
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consultants has worked with in Texas. The founder and CEO grew up on a ranch in Australia and loves everything to do with horses. So his
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on a ranch in Australia and loves everything to do with horses. So his stated purpose is “to inspire the dreams of horsemen.” Everything his
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stated purpose is “to inspire the dreams of horsemen.” Everything his
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company does is born out of a love for horses and the people who share
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company does is born out of a love for horses and the people who share
Greater Cause:
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Greater Cause: This kind of purpose is not necessarily about what the
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This kind of purpose is not necessarily about what the organization does, but about something connected to it. For instance,
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organization does, but about something connected to it. For instance,
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a hotel might exist because its owner is a fanatic about vacations. Or COPYRIGHTED M
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a hotel might exist because its owner is a fanatic about vacations. Or maybe it’s all about allowing people to experience luxury. Or the COPYRIG
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maybe it’s all about allowing people to experience luxury. Or the NOT FOR R
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founders started their business in the first place: to do what they love.One that comes to mind is a horse-training company one of our
NOT FOR RESALEOne that comes to mind is a horse-training company one of our
consultants has worked with in Texas. The founder and CEO grew up
NOT FOR RESALEconsultants has worked with in Texas. The founder and CEO grew up
on a ranch in Australia and loves everything to do with horses. So his
NOT FOR RESALE
on a ranch in Australia and loves everything to do with horses. So his stated purpose is “to inspire the dreams of horsemen.” Everything his
NOT FOR RESALE
stated purpose is “to inspire the dreams of horsemen.” Everything his
NOT FOR RESALE
company does is born out of a love for horses and the people who share
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company does is born out of a love for horses and the people who share
This kind of purpose is not necessarily about what the
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This kind of purpose is not necessarily about what the organization does, but about something connected to it. For instance, NOT FOR R
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organization does, but about something connected to it. For instance, a hotel might exist because its owner is a fanatic about vacations. Or NOT FOR R
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a hotel might exist because its owner is a fanatic about vacations. Or
Patrick Lencioni—The Advantage
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reunion, go on vacation, or do business with clients in another city without sacrificing their financial security. That’s why the airline was started. Does it serve customers? Sure. Do they enjoy aviation? Yeah. But those are not the fundamental reasons that Southwest is in business. Its leaders have a larger cause associated with that service, and that cause informs every decision they make. For instance, they are committed to low prices. To violate that commitment would be to violate their purpose because democratizing travel can’t happen if large numbers of customers are priced out of the market.
Community: This purpose is about doing something that makes a specific geographical place better. For instance, our fictional hotel might exist simply to provide a city or region with a nice place for visitors, events, or business. It’s about pride in a community. The hotel will do whatever else it can to contribute to that community, and employees who share a love for and commitment to the area will thrive there.
The head of a youth soccer club near my office told me that his underlying purpose is not really about soccer itself (of course, he loves soccer too), but about serving his local town. He grew up in that com-munity and returned there to run the club even though there are other clubs with more money and better facilities nearby. His commit-ment to the community is why he insists on drawing mostly local talent and partnering with civic groups. And yes, like the neighboring clubs, he wants to win. But that’s akin to a company wanting to make money: it’s an indication of success, not the underlying reason for existing.
Employees: This purpose is not about serving the customer, the industry, or the region, but rather about the employees. Our fictional hotel might be all about giving employees a great work experience or providing a
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purpose because democratizing travel can’t happen if large numbers of
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purpose because democratizing travel can’t happen if large numbers of
This purpose is about doing something that makes a
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This purpose is about doing something that makes a specific geographical place better. For instance, our fictional hotel
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specific geographical place better. For instance, our fictional hotel might exist simply to provide a city or region with a nice place for
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might exist simply to provide a city or region with a nice place for visitors, events, or business. It’s about pride in a community. The hotel
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visitors, events, or business. It’s about pride in a community. The hotel will do whatever else it can to contribute to that community, and
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will do whatever else it can to contribute to that community, and employees who share a love for and commitment to the area will thrive
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employees who share a love for and commitment to the area will thrive
The head of a youth soccer club near my office told me that his
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The head of a youth soccer club near my office told me that his
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underlying purpose is not really about soccer itself (of course, he loves
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underlying purpose is not really about soccer itself (of course, he loves soccer too), but about serving his local town. He grew up in that com-
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soccer too), but about serving his local town. He grew up in that com-munity and returned there to run the club even though there are
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munity and returned there to run the club even though there are other clubs with more money and better facilities nearby. His commit-COPYRIG
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other clubs with more money and better facilities nearby. His commit-ment to the community is why he insists on drawing mostly local COPYRIG
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ment to the community is why he insists on drawing mostly local NOT FOR R
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specific geographical place better. For instance, our fictional hotel might exist simply to provide a city or region with a nice place for
NOT FOR RESALEmight exist simply to provide a city or region with a nice place for
visitors, events, or business. It’s about pride in a community. The hotel
NOT FOR RESALEvisitors, events, or business. It’s about pride in a community. The hotel
will do whatever else it can to contribute to that community, and
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will do whatever else it can to contribute to that community, and employees who share a love for and commitment to the area will thrive
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employees who share a love for and commitment to the area will thrive
The head of a youth soccer club near my office told me that his
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The head of a youth soccer club near my office told me that his
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underlying purpose is not really about soccer itself (of course, he loves
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underlying purpose is not really about soccer itself (of course, he loves soccer too), but about serving his local town. He grew up in that com-
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soccer too), but about serving his local town. He grew up in that com-munity and returned there to run the club even though there are NOT FOR R
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munity and returned there to run the club even though there are other clubs with more money and better facilities nearby. His commit-NOT FOR R
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other clubs with more money and better facilities nearby. His commit-
Patrick Lencioni—The Advantage
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place to work for low-income people in the area. It will not make decisions or hire people who will jeopardize the well-being of employees.
A paving company I worked with struggled with identifying its fundamental purpose. After coming up with a few uninspiring ideas having to do with keeping driveways safe and making it possible for people to park their vehicles, the CEO/founder finally had an epiphany. He announced to his somewhat surprised executive team that his initial reason for starting the business had nothing to do with paving, but was really about helping poor, first-generation Americans find good jobs so they could buy their first homes and send their kids to college. To make his point clear, he explained that if the paving market tanked, he’d be fine going into roofing, or painting, or whatever other business would allow him to keep his employees working and their families moving forward in their lives.
Wealth: This purpose is about wealth for the owners. It’s possible that our hotel exists simply because the person who owns it thinks it’s a good way to make money for himself and his co-owners. This will and should inform the decisions that they make, with everything seen through a financial lens.
We don’t run across many companies in this category (they prob-ably don’t come to us for help), although a number of venture capitalists and law firms we’ve seen would probably fit. Ultimately they aren’t going to do anything that will reduce their near-term earnings potential or financial return, and they see customers, clients, and employees simply as a means to achieving that. If this is the real reason for exist-ing, it’s important for leaders to be clear about it, with themselves and the people who work for them. Otherwise they’re going to waste a lot of time doing meaningless exercises and having fruitless conversations that only create confusion and cynicism among employees who are best served by knowing the clear truth.
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reason for starting the business had nothing to do with paving, but was
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reason for starting the business had nothing to do with paving, but was really about helping poor, first-generation Americans find good jobs so
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they could buy their first homes and send their kids to college. To make
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they could buy their first homes and send their kids to college. To make his point clear, he explained that if the paving market tanked, he’d be
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his point clear, he explained that if the paving market tanked, he’d be fine going into roofing, or painting, or whatever other business would
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fine going into roofing, or painting, or whatever other business would allow him to keep his employees working and their families moving
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allow him to keep his employees working and their families moving
This purpose is about wealth for the owners. It’s possible that
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This purpose is about wealth for the owners. It’s possible that our hotel exists simply because the person who owns it thinks it’s a
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our hotel exists simply because the person who owns it thinks it’s a
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good way to make money for himself and his co-owners. This will and
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good way to make money for himself and his co-owners. This will and should inform the decisions that they make, with everything seen
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should inform the decisions that they make, with everything seen through a financial lens.
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through a financial lens.We don’t run across many companies in this category (they prob-
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We don’t run across many companies in this category (they prob-
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ably don’t come to us for help), although a number of venture capitalists COPYRIGHTED M
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This purpose is about wealth for the owners. It’s possible that
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This purpose is about wealth for the owners. It’s possible that our hotel exists simply because the person who owns it thinks it’s a
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our hotel exists simply because the person who owns it thinks it’s a
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good way to make money for himself and his co-owners. This will and
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good way to make money for himself and his co-owners. This will and should inform the decisions that they make, with everything seen
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should inform the decisions that they make, with everything seen through a financial lens.
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We don’t run across many companies in this category (they prob-ably don’t come to us for help), although a number of venture capitalists NOT FOR R
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Patrick Lencioni—The Advantage
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Not a DifferentiatorAs we can see by using the example of the hotel, two companies that are in the same industry will often have different reasons for existing. That makes sense. However, it’s also interesting to understand that two companies in completely different industries can share the same purpose. For instance, both a hospital and a masseuse could very well exist to alleviate pain and suffering in the world. Or a gardener and an artist might exist to help people appreciate beauty.
The point here is that an organization’s reason for existing is not meant to be a differentiator and that the purpose for identifying it is only to clarify what is true in order to guide the business. When leaders try to use their purpose as a strategic differentiator, they usually fail to fully tap into the real reason for having one, and then find themselves disappointed when they learn that another company, perhaps even within their industry, shares theirs. They need to remember that it is simply about getting clarity.
It’s important to keep in mind that the process of identifying why an organization exists is often a messy one. Because it’s more of an art than a science, it’s going to require a little time and plenty of fluid, unstructured discussion. And that’s okay. The goal is not to get to an answer in the shortest amount of time possible, but rather to untap the true reason for the organization’s existence. Of course leaders need to remember that it is only the first of six elements of organizational clarity.
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ATERIAL The point here is that an organization’s reason for existing is not
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meant to be a differentiator and that the purpose for identifying it is
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meant to be a differentiator and that the purpose for identifying it is only to clarify what is true in order to guide the business. When leaders
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only to clarify what is true in order to guide the business. When leaders try to use their purpose as a strategic differentiator, they usually fail to
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try to use their purpose as a strategic differentiator, they usually fail to fully tap into the real reason for having one, and then find themselves
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fully tap into the real reason for having one, and then find themselves disappointed when they learn that another company, perhaps even
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disappointed when they learn that another company, perhaps even within their industry, shares theirs. They need to remember that it is
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within their industry, shares theirs. They need to remember that it is
It’s important to keep in mind that the process of identifying why
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It’s important to keep in mind that the process of identifying why
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an organization exists is often a messy one. Because it’s more of an art
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an organization exists is often a messy one. Because it’s more of an art than a science, it’s going to require a little time and plenty of fluid,
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than a science, it’s going to require a little time and plenty of fluid, unstructured discussion. And that’s okay. The goal is not to get to an
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unstructured discussion. And that’s okay. The goal is not to get to an answer in the shortest amount of time possible, but rather to untap the
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answer in the shortest amount of time possible, but rather to untap the
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true reason for the organization’s existence. Of course leaders need to COPYRIGHTED M
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disappointed when they learn that another company, perhaps even
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within their industry, shares theirs. They need to remember that it is
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within their industry, shares theirs. They need to remember that it is
It’s important to keep in mind that the process of identifying why
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It’s important to keep in mind that the process of identifying why
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an organization exists is often a messy one. Because it’s more of an art
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an organization exists is often a messy one. Because it’s more of an art than a science, it’s going to require a little time and plenty of fluid,
NOT FOR RESALE
than a science, it’s going to require a little time and plenty of fluid, unstructured discussion. And that’s okay. The goal is not to get to an
NOT FOR RESALE
unstructured discussion. And that’s okay. The goal is not to get to an answer in the shortest amount of time possible, but rather to untap the NOT FOR R
ESALE
answer in the shortest amount of time possible, but rather to untap the true reason for the organization’s existence. Of course leaders need to NOT FOR R
ESALE
true reason for the organization’s existence. Of course leaders need to
Patrick Lencioni—The Advantage
La
Discipline 2: Create Clarity
91
QUeSTIOn 2: HOW DO We BeHAve?
The word intolerance isn’t often used in a positive way in society. And yet when it comes to creating organizational cla-rity and alignment, intoler-ance is essential. After all, if an organization is tolerant of everything, it will stand for nothing.
The answer to the question, How do we behave?, is embodied in an organization’s core values, which should provide the ultimate guide for employee behavior at all levels. This too is an area that Collins and Porras addressed in Built to Last. In their research, they found that enduring, successful companies adhered strictly to a fundamental set of principles that guided their behaviors and decisions over time, pre-serving the essence of the organization.
The importance of values in creating clarity and enabling a company to become healthy cannot be overstated. More than anything else, values are critical because they define a company’s personality. They provide employees with clarity about how to behave, which reduces the need for inefficient and demoralizing micromanagement.
That alone makes values worthwhile. But beyond that, an organiza-tion that has properly identified its values and adheres to them will naturally attract the right employees and repel the wrong ones. This makes recruiting exponentially easier and more effective, and it drasti-cally reduces turnover.
The impact of values goes beyond employees. Clear values can also serve to attract and repel the right customers who want to do business with an organization that reflects what they value, and not just in some cause-related, theoretical sense. People who value creativity, for instance, often choose an organization that builds its culture around creativity.
If an organization is tolerant of
everything, it will stand for
nothing.
Lencioni_1522_c04_main.indd 91 1/17/2012 1:47:00 PM
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How do we behave?
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How do we behave?, is embodied in an
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, is embodied in an How do we behave?, is embodied in an How do we behave?
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How do we behave?, is embodied in an How do we behave?organization’s core values, which should provide the ultimate guide for
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organization’s core values, which should provide the ultimate guide for employee behavior at all levels. This too is an area that Collins and
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employee behavior at all levels. This too is an area that Collins and Built to Last.
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Built to Last. In their research, they found that
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In their research, they found that enduring, successful companies adhered strictly to a fundamental set
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enduring, successful companies adhered strictly to a fundamental set of principles that guided their behaviors and decisions over time, pre-
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of principles that guided their behaviors and decisions over time, pre-serving the essence of the organization.
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serving the essence of the organization.The importance of values in creating clarity and enabling a company
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The importance of values in creating clarity and enabling a company to become healthy cannot be overstated. More than anything else,
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to become healthy cannot be overstated. More than anything else, values are critical because they define a company’s personality. They
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values are critical because they define a company’s personality. They provide employees with clarity about how to behave, which reduces the
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provide employees with clarity about how to behave, which reduces the need for inefficient and demoralizing micromanagement.COPYRIG
HTED MATERIA
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need for inefficient and demoralizing micromanagement.That alone makes values worthwhile. But beyond that, an organiza-COPYRIG
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That alone makes values worthwhile. But beyond that, an organiza-COPYRIGHTED M
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NOT FOR RESALE
organization’s core values, which should provide the ultimate guide for
NOT FOR RESALE
organization’s core values, which should provide the ultimate guide for employee behavior at all levels. This too is an area that Collins and
NOT FOR RESALEemployee behavior at all levels. This too is an area that Collins and
In their research, they found that
NOT FOR RESALE In their research, they found that
enduring, successful companies adhered strictly to a fundamental set
NOT FOR RESALE
enduring, successful companies adhered strictly to a fundamental set of principles that guided their behaviors and decisions over time, pre-
NOT FOR RESALE
of principles that guided their behaviors and decisions over time, pre-serving the essence of the organization.
NOT FOR RESALE
serving the essence of the organization.The importance of values in creating clarity and enabling a company
NOT FOR RESALE
The importance of values in creating clarity and enabling a company to become healthy cannot be overstated. More than anything else,
NOT FOR RESALE
to become healthy cannot be overstated. More than anything else, values are critical because they define a company’s personality. They
NOT FOR RESALE
values are critical because they define a company’s personality. They provide employees with clarity about how to behave, which reduces the NOT FOR R
ESALE
provide employees with clarity about how to behave, which reduces the need for inefficient and demoralizing micromanagement.NOT FOR R
ESALE
need for inefficient and demoralizing micromanagement.
Patrick Lencioni—The Advantage
La
The Advantage
92
Often this is a more effective means of marketing than expensive and easy-to-ignore programs around advertising, PR, and lead generation. Companies that are serious about their values find that the right cus-tomers eventually start to seek them out naturally.
Values StampedeCollins and Porras made such a compelling case in their book that they set off a stampede of executives determined to find some core values of their own. Unfortunately, many of those executives missed the authors’ point and came home from their off-site meetings with a long list of generic and uninspiring words that they then plastered onto posters, T-shirts, and Web sites. All too often, the result was an organization full of confused, frustrated, and cynical employees (and sometimes customers too).
The mistake those leaders made was trying to be all things to all people, which led them to make their values statements as broad and inclusive as possible. In many cases, this comes about because leaders conduct a survey asking employees to vote on which values they want, and then they try to accommodate all of the input they receive. Let me be very clear: this is a terrible process for identifying core values, for reasons that will become obvious later in this section.
When an organization announces that it has nine core values including customer service, innovation, quality, honesty, integrity, envi-ronmental responsibility, work-life balance, financial responsibility, and respect for the individual, it makes it impossible to use those values to make decisions, hire employees, or enact policies. After all, no action, person, or policy can meet all of those criteria.
This creates its own set of problems. When leaders who adopt too many values finally realize what they’ve done and that there is no hope for actually putting their many values to practical use, they often end up ignoring them altogether. In their heart of hearts, they come to see their value statement as a piece of internal marketing, even propaganda.
Lencioni_1522_c04_main.indd 92 1/17/2012 1:47:00 PM
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set off a stampede of executives determined to find some core values of
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set off a stampede of executives determined to find some core values of their own. Unfortunately, many of those executives missed the authors’
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point and came home from their off-site meetings with a long list of
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point and came home from their off-site meetings with a long list of generic and uninspiring words that they then plastered onto posters,
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generic and uninspiring words that they then plastered onto posters, T-shirts, and Web sites. All too often, the result was an organization
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T-shirts, and Web sites. All too often, the result was an organization full of confused, frustrated, and cynical employees (and sometimes
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full of confused, frustrated, and cynical employees (and sometimes
The mistake those leaders made was trying to be all things to all
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The mistake those leaders made was trying to be all things to all people, which led them to make their values statements as broad and
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people, which led them to make their values statements as broad and
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inclusive as possible. In many cases, this comes about because leaders
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inclusive as possible. In many cases, this comes about because leaders conduct a survey asking employees to vote on which values they want,
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conduct a survey asking employees to vote on which values they want, and then they try to accommodate all of the input they receive. Let me
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and then they try to accommodate all of the input they receive. Let me be very clear: this is a terrible process for identifying core values, for
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be very clear: this is a terrible process for identifying core values, for
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reasons that will become obvious later in this section.
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reasons that will become obvious later in this section.When an organization announces that it has nine core values COPYRIG
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When an organization announces that it has nine core values including customer service, innovation, quality, honesty, integrity, envi-COPYRIG
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including customer service, innovation, quality, honesty, integrity, envi-NOT FOR R
ESALET-shirts, and Web sites. All too often, the result was an organization
NOT FOR RESALE
T-shirts, and Web sites. All too often, the result was an organization full of confused, frustrated, and cynical employees (and sometimes
NOT FOR RESALEfull of confused, frustrated, and cynical employees (and sometimes
The mistake those leaders made was trying to be all things to all
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The mistake those leaders made was trying to be all things to all people, which led them to make their values statements as broad and
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people, which led them to make their values statements as broad and
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inclusive as possible. In many cases, this comes about because leaders
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inclusive as possible. In many cases, this comes about because leaders conduct a survey asking employees to vote on which values they want,
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conduct a survey asking employees to vote on which values they want, and then they try to accommodate all of the input they receive. Let me
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and then they try to accommodate all of the input they receive. Let me be very clear: this is a terrible process for identifying core values, for
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be very clear: this is a terrible process for identifying core values, for
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reasons that will become obvious later in this section.NOT FOR RESALE
reasons that will become obvious later in this section.When an organization announces that it has nine core values NOT FOR R
ESALE
When an organization announces that it has nine core values
Patrick Lencioni—The Advantage
La
Discipline 2: Create Clarity
93
So they resign themselves to operating their companies in a pragmatic, valueless way, leaving employees and customers unsure of what the organization really stands for. When employees complain that the com-pany’s values are being violated, leaders just shrug their shoulders and focus on something more tangible.
Different Kinds of ValuesAn important key to identifying the right, small set of behavioral values is understanding that there are different kinds of values (something I wrote about a number of years ago in the Harvard Business Review).2
Among these, core values are by far the most important and must not be confused with the others. Let’s define the different types now so we don’t get them confused:
Accidental
Permission-to-Play
Core
Asp
iratio
nal
Core ValuesThese are the few—just two or three—behavioral traits that are inher-ent in an organization. Core values lie at the heart of the organization’s
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An important key to identifying the right, small set of behavioral values
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An important key to identifying the right, small set of behavioral values is understanding that there are different kinds of values (something I
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Harvard Business Review
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Harvard Business ReviewAmong these, core values are by far the most important and must not
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Among these, core values are by far the most important and must not be confused with the others. Let’s define the different types now so we
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be confused with the others. Let’s define the different types now so we
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be confused with the others. Let’s define the different types now so we
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be confused with the others. Let’s define the different types now so we
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Patrick Lencioni—The Advantage
La
The Advantage
94
not for everyone
We worked with an airline that is fanatical about its culture.
It had three core values, one of which had to do with humor.
What testifies to the fact that this is a true core value is
that the company refuses to hire people in any job, at any
level, who don’t have a sense of humor about themselves as
well as life. Its leaders even go so far as to encourage and
defend the humorous behaviors of their employees on the
rare occasion when a customer doesn’t appreciate it.
A great example of this occurred when a frequent flyer
wrote to the company’s CEO complaining that a flight atten-
dant was making jokes during the preflight safety check. She
was upset that the employee was trying to be funny while
he was talking about something as serious and important as
safety.
Now, most CEOs would respond to that complaint by
thanking the customer for her time and her loyalty to the
airline and assuring her that safety was, indeed, important to
the organization. They would then promise to look into the
matter to make sure that the flight attendant adjusts his
behavior to avoid offending any other passengers who could
identity, do not change over time, and must already exist. In other words, they cannot be contrived.
An organization knows that it has identified its core values correctly when it will allow itself to be punished for living those values and when it accepts the fact that employees will sometimes take those values too far. Core values are not a matter of convenience. They cannot be extracted from an organization any more than a human being’s con-science can be extracted from his or her person. As a result, they should be used to guide every aspect of an organization, from hiring and firing to strategy and performance management.
Lencioni_1522_c04_main.indd 94 1/17/2012 1:47:00 PM
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one
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one
We worked with an airline that is fanatical about its culture.
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We worked with an airline that is fanatical about its culture.
It had three core values, one of which had to do with humor.
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It had three core values, one of which had to do with humor.
What testifies to the fact that this is a true core value is
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What testifies to the fact that this is a true core value is
that the company refuses to hire people in any job, at any
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that the company refuses to hire people in any job, at any
level, who don’t have a sense of humor about themselves as
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level, who don’t have a sense of humor about themselves as
well as life. Its leaders even go so far as to encourage and
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well as life. Its leaders even go so far as to encourage and
defend the humorous behaviors of their employees on the
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defend the humorous behaviors of their employees on the
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rare occasion when a customer doesn’t appreciate it.
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rare occasion when a customer doesn’t appreciate it.
A great example of this occurred when a frequent flyer
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A great example of this occurred when a frequent flyer
wrote to the company’s CEO complaining that a flight atten-COPYRIGHTED M
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wrote to the company’s CEO complaining that a flight atten-
dant was making jokes during the preflight safety check. She COPYRIGHTED M
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dant was making jokes during the preflight safety check. She
science can be extracted from his or her person. As a result, they should
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science can be extracted from his or her person. As a result, they should be used to guide every aspect of an organization, from hiring and firing
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ATERIAL be used to guide every aspect of an organization, from hiring and firing
NOT FOR RESALEWe worked with an airline that is fanatical about its culture.
NOT FOR RESALEWe worked with an airline that is fanatical about its culture.
It had three core values, one of which had to do with humor.
NOT FOR RESALE
It had three core values, one of which had to do with humor.
What testifies to the fact that this is a true core value is
NOT FOR RESALE
What testifies to the fact that this is a true core value is
that the company refuses to hire people in any job, at any
NOT FOR RESALE
that the company refuses to hire people in any job, at any
level, who don’t have a sense of humor about themselves as
NOT FOR RESALE
level, who don’t have a sense of humor about themselves as
well as life. Its leaders even go so far as to encourage and
NOT FOR RESALE
well as life. Its leaders even go so far as to encourage and
defend the humorous behaviors of their employees on the
NOT FOR RESALE
defend the humorous behaviors of their employees on the
NOT FOR RESALE
rare occasion when a customer doesn’t appreciate it.
NOT FOR RESALE
rare occasion when a customer doesn’t appreciate it.
A great example of this occurred when a frequent flyer NOT FOR RESALE
A great example of this occurred when a frequent flyer
wrote to the company’s CEO complaining that a flight atten-NOT FOR RESALE
wrote to the company’s CEO complaining that a flight atten-
Patrick Lencioni—The Advantage
La
Discipline 2: Create Clarity
95
Wishful Thinking
I once worked with a CEO to identify the core values of his
company. When I asked him what he thought one of the
values might be, without hesitation he said “sense of urgency.”
I was a little surprised because the limited exposure I’d had
with the employees at the company didn’t mesh with that
description. When I asked him if he believed that urgency
was evident in the organization, he responded “Heck no.
Aspirational ValuesThese are the characteristics that an organization wants to have, wishes it already had, and believes it must develop in order to maximize its success in its current market environment. Aspirational values are the qualities that an organization is aspiring to adopt and will do its best to manage intentionally into the organization. However, they are neither natural nor inherent, which is why they must be purposefully inserted into the culture. But they should not be confused with core values, which, again, do not change over time and do not come and go with the needs of the business.
be uncomfortable with the jokes. That would be reasonable
enough, I suppose, unless your core values have to do with
humor.
Well, the CEO of this company took a different approach.
Rather than apologizing to the customer and asking the
flight attendant to moderate his behavior, he wrote her a
short note with three words on it: “We’ll miss you.” There can
be little doubt that the company believed that humor was a
core value.
(Rest assured that this company, like all good airlines,
takes safety very, very seriously.)
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These are the characteristics that an organization wants to have, wishes
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These are the characteristics that an organization wants to have, wishes it already had, and believes it must develop in order to maximize its
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it already had, and believes it must develop in order to maximize its success in its current market environment. Aspirational values are the
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success in its current market environment. Aspirational values are the qualities that an organization is aspiring to adopt and will do its best
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qualities that an organization is aspiring to adopt and will do its best to manage intentionally into the organization. However, they are
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to manage intentionally into the organization. However, they are neither natural nor inherent, which is why they must be purposefully
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neither natural nor inherent, which is why they must be purposefully inserted into the culture. But they should not be confused with core
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inserted into the culture. But they should not be confused with core values, which, again, do not change over time and do not come and
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values, which, again, do not change over time and do not come and
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go with the needs of the business.COPYRIG
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go with the needs of the business.
(Rest assured that this company, like all good airlines,
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ATERIAL (Rest assured that this company, like all good airlines,
NOT FOR RESALEThese are the characteristics that an organization wants to have, wishes
NOT FOR RESALEThese are the characteristics that an organization wants to have, wishes
it already had, and believes it must develop in order to maximize its
NOT FOR RESALE
it already had, and believes it must develop in order to maximize its success in its current market environment. Aspirational values are the
NOT FOR RESALE
success in its current market environment. Aspirational values are the qualities that an organization is aspiring to adopt and will do its best
NOT FOR RESALE
qualities that an organization is aspiring to adopt and will do its best to manage intentionally into the organization. However, they are
NOT FOR RESALE
to manage intentionally into the organization. However, they are neither natural nor inherent, which is why they must be purposefully
NOT FOR RESALE
neither natural nor inherent, which is why they must be purposefully inserted into the culture. But they should not be confused with core
NOT FOR RESALE
inserted into the culture. But they should not be confused with core values, which, again, do not change over time and do not come and
NOT FOR RESALE
values, which, again, do not change over time and do not come and
NOT FOR RESALE
go with the needs of the business.NOT FOR RESALE
go with the needs of the business.
Patrick Lencioni—The Advantage
La
The Advantage
96
Aspirations
A small consulting firm I know was founded on the values of
humility and passion. Every potential new hire had to pass
the screening for those values, and every decision the firm
made was scrutinized, to a certain extent, against whether it
reflected humility and passion.
As the firm started to experience increased demand for
its services, it realized that its informal, scrappy approach to
serving clients wasn’t scalable and needed to change. Essen-
tially, it needed to instill a greater sense of professionalism
and systematization in its operations.
Knowing that this was not inherent in its passionate,
entrepreneurial culture, the founders decided to make “pro-
fessionalism” one of the firm’s aspirational values. That meant
they would intentionally hire someone who had experience
building a more mature and organized consulting practice.
Of course, that person would have to embody the firm’s core
values too, because, as the president said, “To hire someone
who wasn’t humble and passionate would be like selling our
soul.”
We’re complacent as hell. That’s why it needs to be a core
value.”
What we advised that client to do was make “sense of
urgency” an aspirational value and do everything it could to
intentionally instill it in the organization. But they needed
to avoid falsely claiming it as a core value, because that
would only incite cynicism among employees who knew
better.
Confusing core and aspirational values is a frequent mistake that companies make. It is critical that leaders understand the difference.
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Aspirations
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Aspirations
A small consulting firm I know was founded on the values of
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A small consulting firm I know was founded on the values of
humility and passion. Every potential new hire had to pass
COPYRIGHTED M
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humility and passion. Every potential new hire had to pass
the screening for those values, and every decision the firm
COPYRIGHTED M
ATERIAL
the screening for those values, and every decision the firm
made was scrutinized, to a certain extent, against whether it
COPYRIGHTED M
ATERIAL
made was scrutinized, to a certain extent, against whether it
reflected humility and passion.
COPYRIGHTED M
ATERIAL
reflected humility and passion.
As the firm started to experience increased demand for
COPYRIGHTED M
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As the firm started to experience increased demand for
its services, it realized that its informal, scrappy approach to
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its services, it realized that its informal, scrappy approach to
COPYRIGHTED M
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serving clients wasn’t scalable and needed to change. Essen-
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serving clients wasn’t scalable and needed to change. Essen-
tially, it needed to instill a greater sense of professionalism COPYRIGHTED M
ATERIAL
tially, it needed to instill a greater sense of professionalism
Confusing core and aspirational values is a frequent mistake
COPYRIGHTED M
ATERIAL Confusing core and aspirational values is a frequent mistake
that companies make. It is critical that leaders understand the
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that companies make. It is critical that leaders understand the
NOT FOR RESALE
A small consulting firm I know was founded on the values of
NOT FOR RESALE
A small consulting firm I know was founded on the values of
humility and passion. Every potential new hire had to pass
NOT FOR RESALE
humility and passion. Every potential new hire had to pass
the screening for those values, and every decision the firm
NOT FOR RESALE
the screening for those values, and every decision the firm
made was scrutinized, to a certain extent, against whether it
NOT FOR RESALE
made was scrutinized, to a certain extent, against whether it
reflected humility and passion.
NOT FOR RESALE
reflected humility and passion.
As the firm started to experience increased demand for
NOT FOR RESALE
As the firm started to experience increased demand for
its services, it realized that its informal, scrappy approach to
NOT FOR RESALE
its services, it realized that its informal, scrappy approach to
NOT FOR RESALE
serving clients wasn’t scalable and needed to change. Essen-NOT FOR RESALE
serving clients wasn’t scalable and needed to change. Essen-
Patrick Lencioni—The Advantage
La
Discipline 2: Create Clarity
97
Permission-to-Play ValuesThese values are the minimum behavioral standards that are required in an organization. Although they are extremely important, permission-to-play values don’t serve to clearly define or differentiate an organiza-tion from others. Values that commonly fit into this category include honesty, integrity, and respect for others. If those sound generic, some-thing you’ve seen on virtually all of the values statements plastered on the walls of every mediocre company you’ve ever visited, then you understand the problem. Permission-to-play values must be delineated from the core to avoid dilution and genericism (I don’t think that’s a word, but you get the point).
The firm hired a new VP who met the core values criteria
and brought a new level of professionalism to the firm. But
they were careful to remind themselves that this was not
something that came naturally to them and that they would
always have to work at it so that the firm could continue
growing.
Integrity About Integrity
An executive team at a technology start-up we worked with
insisted that integrity was a core value of their company
(many of our clients do this).
They justified this by explaining that they would never
hire someone who lied during an interview or put false infor-
mation on a résumé. We explained that most organizations
had similar policies and that unless they were willing to adopt
clearly higher standards for integrity than most other com-
panies, and then stand by those standards even in the face
of serious market pressure, they should classify integrity as
a permission-to-play value.
Lencioni_1522_c04_main.indd 97 1/17/2012 1:47:00 PM
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ATERIAL These values are the minimum behavioral standards that are required
COPYRIGHTED M
ATERIAL These values are the minimum behavioral standards that are required
in an organization. Although they are extremely important, permission-
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in an organization. Although they are extremely important, permission-to-play values don’t serve to clearly define or differentiate an organiza-
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to-play values don’t serve to clearly define or differentiate an organiza-tion from others. Values that commonly fit into this category include
COPYRIGHTED M
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tion from others. Values that commonly fit into this category include honesty, integrity, and respect for others. If those sound generic, some-
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honesty, integrity, and respect for others. If those sound generic, some-thing you’ve seen on virtually all of the values statements plastered on
COPYRIGHTED M
ATERIAL
thing you’ve seen on virtually all of the values statements plastered on the walls of every mediocre company you’ve ever visited, then you
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ATERIAL
the walls of every mediocre company you’ve ever visited, then you understand the problem. Permission-to-play values must be delineated
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ATERIAL
understand the problem. Permission-to-play values must be delineated
COPYRIGHTED M
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from the core to avoid dilution and genericism (I don’t think that’s a
COPYRIGHTED M
ATERIAL
from the core to avoid dilution and genericism (I don’t think that’s a word, but you get the point).
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word, but you get the point).
An executive team at a technology start-up we worked with COPYRIGHTED M
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An executive team at a technology start-up we worked with NOT FOR R
ESALEto-play values don’t serve to clearly define or differentiate an organiza-
NOT FOR RESALE
to-play values don’t serve to clearly define or differentiate an organiza-tion from others. Values that commonly fit into this category include
NOT FOR RESALE
tion from others. Values that commonly fit into this category include honesty, integrity, and respect for others. If those sound generic, some-
NOT FOR RESALEhonesty, integrity, and respect for others. If those sound generic, some-
thing you’ve seen on virtually all of the values statements plastered on
NOT FOR RESALE
thing you’ve seen on virtually all of the values statements plastered on the walls of every mediocre company you’ve ever visited, then you
NOT FOR RESALE
the walls of every mediocre company you’ve ever visited, then you understand the problem. Permission-to-play values must be delineated
NOT FOR RESALE
understand the problem. Permission-to-play values must be delineated
NOT FOR RESALE
from the core to avoid dilution and genericism (I don’t think that’s a
NOT FOR RESALE
from the core to avoid dilution and genericism (I don’t think that’s a word, but you get the point).
NOT FOR RESALE
word, but you get the point).
Integrity About IntegrityNOT FOR RESALE
Integrity About Integrity
Patrick Lencioni—The Advantage
La
The Advantage
98
Accidental ValuesThese values are the traits that are evident in an organization but have come about unintentionally and don’t necessarily serve the good of the organization. In many companies, behavioral tendencies develop over time because of history, or because people start to hire employees who come from similar backgrounds. One day everyone looks around and realizes that just about every employee who works in the organization shares some quality: socioeconomic status, intro-version, or good looks. The question that needs to be asked is whether being middle class, introverted, or good looking is something that the company has cultivated for a purpose, or whether it came about accidentally. It’s important that leaders guard against accidental values taking root because they can prevent new ideas and people from flourishing in an organization. Sometimes they even sabotage its success by shutting out new perspectives and even potential customers.
Unintended Consequences
A fashion accessory company we worked with during its
founding adopted a strong set of three core values that it
carefully built its operations around.
They initially refused, saying, “But if we don’t have integ-
rity as one of our core values, then people will think we don’t
care about it.”
During a subsequent meeting, executives discussed the
possibility of doing some competitive intelligence gathering
in a manner that could easily appear to be unethical to some
people. We reminded them about their insistence on includ-
ing integrity as a core value. They relented and reclassified
it as permission-to-play.
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These values are the traits that are evident in an organization but
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These values are the traits that are evident in an organization but have come about unintentionally and don’t necessarily serve the
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have come about unintentionally and don’t necessarily serve the good of the organization. In many companies, behavioral tendencies
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good of the organization. In many companies, behavioral tendencies develop over time because of history, or because people start to hire
COPYRIGHTED M
ATERIAL
develop over time because of history, or because people start to hire employees who come from similar backgrounds. One day everyone
COPYRIGHTED M
ATERIAL
employees who come from similar backgrounds. One day everyone looks around and realizes that just about every employee who works
COPYRIGHTED M
ATERIAL
looks around and realizes that just about every employee who works in the organization shares some quality: socioeconomic status, intro
COPYRIGHTED M
ATERIAL
in the organization shares some quality: socioeconomic status, introor good looks. The question that needs to be asked is
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or good looks. The question that needs to be asked is
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whether being middle class, introverted, or good looking is something
COPYRIGHTED M
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whether being middle class, introverted, or good looking is something that the company has cultivated for a purpose, or whether it came
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ATERIAL
that the company has cultivated for a purpose, or whether it came about accidentally. It’s important that leaders guard against accidental
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about accidentally. It’s important that leaders guard against accidental values taking root because they can prevent new ideas and people COPYRIG
HTED MATERIA
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values taking root because they can prevent new ideas and people NOT FOR R
ESALEThese values are the traits that are evident in an organization but
NOT FOR RESALE
These values are the traits that are evident in an organization but have come about unintentionally and don’t necessarily serve the
NOT FOR RESALEhave come about unintentionally and don’t necessarily serve the
good of the organization. In many companies, behavioral tendencies
NOT FOR RESALEgood of the organization. In many companies, behavioral tendencies
develop over time because of history, or because people start to hire
NOT FOR RESALE
develop over time because of history, or because people start to hire employees who come from similar backgrounds. One day everyone
NOT FOR RESALE
employees who come from similar backgrounds. One day everyone looks around and realizes that just about every employee who works
NOT FOR RESALE
looks around and realizes that just about every employee who works in the organization shares some quality: socioeconomic status, intro
NOT FOR RESALE
in the organization shares some quality: socioeconomic status, introor good looks. The question that needs to be asked is
NOT FOR RESALE
or good looks. The question that needs to be asked is
NOT FOR RESALE
whether being middle class, introverted, or good looking is something
NOT FOR RESALE
whether being middle class, introverted, or good looking is something that the company has cultivated for a purpose, or whether it came
NOT FOR RESALE
that the company has cultivated for a purpose, or whether it came about accidentally. It’s important that leaders guard against accidental NOT FOR R
ESALE
about accidentally. It’s important that leaders guard against accidental
Patrick Lencioni—The Advantage
La
Discipline 2: Create Clarity
99
Isolating the CoreThe key to sifting core values from the others, especially aspirational and permission-to-play values, is to ask a few difficult questions. For instance, separating core from aspirational values can be done by asking the questions, Is this trait inherent and natural for us, and has it been apparent in the organization for a long time? Or, is it something that we have to work hard to cultivate? A core value will have been apparent for a long time and requires little intentional provocation.
Permission-to-play values are also often confused with core. The best way to differentiate them is to ask, Would our organization be able to credibly claim that we are more committed to this value than 99 percent of the companies in our industry? If so, then maybe it really is core. If not, then it’s probably a candidate for permission-to-play; it’s still important and should be used as a filter in hiring, but it’s not what sets the organization apart and uniquely defines it.
A few years later, we visited the company’s headquarters
after not having seen them for quite some time. They had
grown considerably and had hired dozens of new employees.
But something struck me about the new hires: they all
seemed to be in their early twenties and were wearing the
same kind of mod, hip, black clothes.
I asked the CEO, “When did you adopt a new core value?”
He seemed confused, so I pointed out that the company
seemed to be hiring people who fit a common demographic
and stylistic profile. It was only then that he realized that they
had accidentally adopted a certain youthful, hip culture, one
that had nothing to do with their customer base and that
could potentially limit the appeal of their company to pro-
spective candidates. They took steps to revisit their hiring
methods and their decision making.
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ATERIAL seemed to be hiring people who fit a common demographic
COPYRIGHTED M
ATERIAL seemed to be hiring people who fit a common demographic
and stylistic profile. It was only then that he realized that they
COPYRIGHTED M
ATERIAL and stylistic profile. It was only then that he realized that they
had accidentally adopted a certain youthful, hip culture, one
COPYRIGHTED M
ATERIAL
had accidentally adopted a certain youthful, hip culture, one
that had nothing to do with their customer base and that
COPYRIGHTED M
ATERIAL
that had nothing to do with their customer base and that
COPYRIGHTED M
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could potentially limit the appeal of their company to pro-
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could potentially limit the appeal of their company to pro-
spective candidates. They took steps to revisit their hiring
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spective candidates. They took steps to revisit their hiring
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The key to sifting core values from the others, especially aspirational
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The key to sifting core values from the others, especially aspirational and permission-to-play values, is to ask a few difficult questions.
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and permission-to-play values, is to ask a few difficult questions. For instance, separating core from aspirational values can be done
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For instance, separating core from aspirational values can be done by asking the questions,
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by asking the questions, has it been apparent in the organization for a long time? Or
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has it been apparent in the organization for a long time? Orsomething that we have to work hard to cultivate?COPYRIG
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something that we have to work hard to cultivate?have been apparent for a long time and requires little intentional COPYRIG
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have been apparent for a long time and requires little intentional
methods and their decision making.
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methods and their decision making.
NOT FOR RESALE
The key to sifting core values from the others, especially aspirational
NOT FOR RESALE
The key to sifting core values from the others, especially aspirational and permission-to-play values, is to ask a few difficult questions.
NOT FOR RESALE
and permission-to-play values, is to ask a few difficult questions. For instance, separating core from aspirational values can be done
NOT FOR RESALE
For instance, separating core from aspirational values can be done by asking the questions,
NOT FOR RESALE
by asking the questions, Is this trait inherent and natural for us, and
NOT FOR RESALE
Is this trait inherent and natural for us, and has it been apparent in the organization for a long time? OrNOT FOR R
ESALE
has it been apparent in the organization for a long time? Orsomething that we have to work hard to cultivate?NOT FOR R
ESALE
something that we have to work hard to cultivate?
could potentially limit the appeal of their company to pro-
NOT FOR RESALE
could potentially limit the appeal of their company to pro-
spective candidates. They took steps to revisit their hiring
NOT FOR RESALEspective candidates. They took steps to revisit their hiring
Patrick Lencioni—The Advantage
La
The Advantage
100
It’s worth restating that the reason organizations need to under-stand the various kinds of values is to prevent them from getting con-fused with and diluting the core. Core values are what matters most.
Choosing a NameAnother key to successfully undertaking the core value process is decid-ing what to call a core value once you’ve identified it. The key is to avoid excessive wordsmithing while at the same time finding the most descriptive and effective phrase. I find it helpful for leaders to choose a unique, nontraditional word or phrase—something that doesn’t already have such a worn legacy in society that everyone assumes they know what it means. Of course, once a name or a term has been chosen, it will be important for the leadership team to define that term with the most vivid and behavioral description possible. And the best way to do that is to write a description of what that value looks like in action.
floor Sweeper
One start-up client I worked with described one of its core
values as “willing to sweep floors.” Most companies would
have described it simply as “hard work,” and few people
outside the organization knew exactly what it meant. But
that was a good thing because it gave the company the
opportunity to define the phrase in its own way.
In their case, the leaders described “willing to sweep
floors” as having no concerns about status and ego and
willing to do whatever was necessary to help the company
succeed. No job was beneath any employee, and even the
highest-level executive had to be willing to do the most
menial work if that’s what was needed.
The value was so powerful that the day after the leader-
ship team established it, one of its members decided to quit
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avoid excessive wordsmithing while at the same time finding the most
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avoid excessive wordsmithing while at the same time finding the most descriptive and effective phrase. I find it helpful for leaders to choose
COPYRIGHTED M
ATERIAL descriptive and effective phrase. I find it helpful for leaders to choose
a unique, nontraditional word or phrase—something that doesn’t
COPYRIGHTED M
ATERIAL
a unique, nontraditional word or phrase—something that doesn’t already have such a worn legacy in society that everyone assumes they
COPYRIGHTED M
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already have such a worn legacy in society that everyone assumes they know what it means. Of course, once a name or a term has been chosen,
COPYRIGHTED M
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know what it means. Of course, once a name or a term has been chosen, it will be important for the leadership team to define that term with
COPYRIGHTED M
ATERIAL
it will be important for the leadership team to define that term with the most vivid and behavioral description possible. And the best way
COPYRIGHTED M
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the most vivid and behavioral description possible. And the best way to do that is to write a description of what that value looks like in
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to do that is to write a description of what that value looks like in
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f
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floor Sweeper
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loor Sweeper
One start-up client I worked with described one of its core
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One start-up client I worked with described one of its core
values as “willing to sweep floors.” Most companies would
COPYRIGHTED M
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values as “willing to sweep floors.” Most companies would
COPYRIGHTED M
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have described it simply as “hard work,” and few people
COPYRIGHTED M
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have described it simply as “hard work,” and few people
outside the organization knew exactly what it meant. But COPYRIGHTED M
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outside the organization knew exactly what it meant. But NOT FOR R
ESALEknow what it means. Of course, once a name or a term has been chosen,
NOT FOR RESALE
know what it means. Of course, once a name or a term has been chosen, it will be important for the leadership team to define that term with
NOT FOR RESALEit will be important for the leadership team to define that term with
the most vivid and behavioral description possible. And the best way
NOT FOR RESALEthe most vivid and behavioral description possible. And the best way
to do that is to write a description of what that value looks like in
NOT FOR RESALE
to do that is to write a description of what that value looks like in
NOT FOR RESALE
loor Sweeper
NOT FOR RESALE
loor Sweeper
One start-up client I worked with described one of its core
NOT FOR RESALE
One start-up client I worked with described one of its core
values as “willing to sweep floors.” Most companies would
NOT FOR RESALE
values as “willing to sweep floors.” Most companies would
NOT FOR RESALE
have described it simply as “hard work,” and few people NOT FOR RESALE
have described it simply as “hard work,” and few people
Patrick Lencioni—The Advantage
La
Discipline 2: Create Clarity
101
The problem for organizations that choose common words like innovation or quality is that everyone has their own understanding of those terms. That makes it a little more difficult for leaders to estab-lish their own definition. Of course, none of this matters if the values that an organization adopts are not real ones. When leaders choose elaborate and unique phrases for their values but don’t adhere to them, they generate more cynicism and distrust than if they said nothing at all.
Once an organization successfully identifies and describes its core values and separates them from the other kinds, it must then do its best to be intolerant of violations of those values. It must ensure that every activity it undertakes, every employee it hires, and every policy it enacts reflects those core values. Few organizations actually take this important step, instead allowing their values to be minimized as mere idealism rather than real building blocks of operations and culture. For those who are serious about their values, this is why it’s so important not to dilute the power of core values or nullify it altogether by having too many. Later in the book, when I discuss reinforcing clarity, I’ll get into the various ways that healthy organizations can build their values into their processes that revolve around people.
because he just didn’t see himself as being a floor sweeper.
Without bitterness, he acknowledged that he had an ego and
that a big part of his career was building a résumé. He didn’t
want to hold the team back by being a misfit.
The CEO gladly accepted his resignation with no hard
feelings, relieved to have addressed the cultural discrepancy
before it became a bigger problem. A few years later, the
executive who left the start-up called our consulting firm to
have us work with his new company. He appreciated the
clarity that we had helped the start-up achieve and wanted
to build a similarly clear and strong culture in his new firm.
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clarity that we had helped the start-up achieve and wanted
COPYRIGHTED M
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The problem for organizations that choose common words like
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The problem for organizations that choose common words like is that everyone has their own understanding
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is that everyone has their own understanding of those terms. That makes it a little more difficult for leaders to estab-
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of those terms. That makes it a little more difficult for leaders to estab-lish their own definition. Of course, none of this matters if the values
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lish their own definition. Of course, none of this matters if the values that an organization adopts are not real ones. When leaders choose
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that an organization adopts are not real ones. When leaders choose elaborate and unique phrases for their values but don’t adhere to them,
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elaborate and unique phrases for their values but don’t adhere to them, they generate more cynicism and distrust than if they said nothing
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they generate more cynicism and distrust than if they said nothing
Once an organization successfully identifies and describes its core
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Once an organization successfully identifies and describes its core
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values and separates them from the other kinds, it must then do its best COPYRIGHTED M
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values and separates them from the other kinds, it must then do its best to be intolerant of violations of those values. It must ensure that every COPYRIG
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to be intolerant of violations of those values. It must ensure that every
to build a similarly clear and strong culture in his new firm.
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to build a similarly clear and strong culture in his new firm.
NOT FOR RESALEThe problem for organizations that choose common words like
NOT FOR RESALEThe problem for organizations that choose common words like
is that everyone has their own understanding
NOT FOR RESALE is that everyone has their own understanding
of those terms. That makes it a little more difficult for leaders to estab-
NOT FOR RESALE
of those terms. That makes it a little more difficult for leaders to estab-lish their own definition. Of course, none of this matters if the values
NOT FOR RESALE
lish their own definition. Of course, none of this matters if the values that an organization adopts are not real ones. When leaders choose
NOT FOR RESALE
that an organization adopts are not real ones. When leaders choose elaborate and unique phrases for their values but don’t adhere to them,
NOT FOR RESALE
elaborate and unique phrases for their values but don’t adhere to them, they generate more cynicism and distrust than if they said nothing
NOT FOR RESALE
they generate more cynicism and distrust than if they said nothing
Once an organization successfully identifies and describes its core NOT FOR RESALE
Once an organization successfully identifies and describes its core values and separates them from the other kinds, it must then do its best NOT FOR R
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values and separates them from the other kinds, it must then do its best
Patrick Lencioni—The Advantage
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The Advantage
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Identifying Core ValuesOne of the best ways to go about identifying an organization’s core values is to undertake a three-step process as an executive team. The first step is to identify the employees in the organization who already embody what is best about the company and to dissect them, answering what is true about those people that makes them so admired by the leadership team. Those qualities form the initial pool of potential core values.
Next, leaders must identify employees who, though talented, were or are no longer a good fit for the organization. These are people who, in spite of their technical abilities, drive others around them crazy and would add value to the organization by being absent. Once those people are identified—sadly, this is usually a little easier than the first step—they need to be dissected in the same way. What is it about them that makes them a distraction and a problem? It is the opposite of those annoying traits that provide yet another set of potential candidates for core values.
Finally, leaders need to be honest about themselves and whether or not they embody the values in that pool.
Mirror, Mirror
The leadership team of a fast-growing high-tech start-up
asked me to help them identify their core values. After dis-
secting a handful of wonderful employees in the organization
and then doing the same for some of the more difficult ones,
the team was left with a few values that seemed like natural
candidates for the core.
One of those values was friendliness. As simple as that
may sound, the executives were convinced that it was what
the best employees in the organization shared and what the
difficult ones lacked. They decided that they would figure
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ATERIAL Next, leaders must identify employees who, though talented, were
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or are no longer a good fit for the organization. These are people who,
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or are no longer a good fit for the organization. These are people who, in spite of their technical abilities, drive others around them crazy and
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in spite of their technical abilities, drive others around them crazy and would add value to the organization by being absent. Once those
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would add value to the organization by being absent. Once those people are identified—sadly, this is usually a little easier than the first
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people are identified—sadly, this is usually a little easier than the first step—they need to be dissected in the same way. What is it about them
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step—they need to be dissected in the same way. What is it about them that makes them a distraction and a problem? It is the
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that makes them a distraction and a problem? It is the annoying traits that provide yet another set of potential candidates for
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annoying traits that provide yet another set of potential candidates for
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Finally, leaders need to be honest about themselves and whether or
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Finally, leaders need to be honest about themselves and whether or not they embody the values in that pool.
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not they embody the values in that pool.
The leadership team of a fast-growing high-tech start-up COPYRIGHTED M
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The leadership team of a fast-growing high-tech start-up NOT FOR R
ESALEwould add value to the organization by being absent. Once those
NOT FOR RESALE
would add value to the organization by being absent. Once those people are identified—sadly, this is usually a little easier than the first
NOT FOR RESALEpeople are identified—sadly, this is usually a little easier than the first
step—they need to be dissected in the same way. What is it about them
NOT FOR RESALEstep—they need to be dissected in the same way. What is it about them
that makes them a distraction and a problem? It is the
NOT FOR RESALE
that makes them a distraction and a problem? It is the annoying traits that provide yet another set of potential candidates for
NOT FOR RESALE
annoying traits that provide yet another set of potential candidates for
NOT FOR RESALE
Finally, leaders need to be honest about themselves and whether or
NOT FOR RESALE
Finally, leaders need to be honest about themselves and whether or not they embody the values in that pool.
NOT FOR RESALE
not they embody the values in that pool.
Mirror, MirrorNOT FOR RESALE
Mirror, Mirror
Patrick Lencioni—The Advantage
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Discipline 2: Create Clarity
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This three-step process is obviously not scientific, but it is neverthe-less a reliable way of informing the judgment of leaders as they wrestle with what is core to the organization’s culture. Settling on core values rarely happens in one sitting, and for good reason. It usually requires extended discussion and review among leaders who must be confident that their cultural building blocks are solid.
out a better way to describe friendliness in a way that would
be more meaningful, but essentially, that was the concept
they settled on.
It was then that I had to ask them to take the third step
and ensure that their suggested core values, including friend-
liness, applied to them too. When I put the question to them,
“So, would you say that this leadership team embodies
friendliness?” the executives in the room hesitated a little and
looked at one another. Without thinking too hard about it, I
continued, “Because compared to the other teams I work
with, I wouldn’t say that you guys seem particularly friendly.”
After a short pause, the executives laughed and agreed
that they didn’t really see themselves as overly friendly
people either. And they quickly eliminated that from the list
of core values. To call it part of their core would be to invite
accusations of hypocrisy from employees. Imagine those
executives standing up and touting the inherent friendliness
of the company and building everything from performance
reviews to hiring profiles around a concept that they did not
exhibit naturally.
At the same time, the executives agreed that they
needed to work on becoming more approachable and
friendly, because it was something that many others in the
organization valued. It would become an aspirational, but
certainly not a core, value.
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ATERIAL looked at one another. Without thinking too hard about it, I
COPYRIGHTED M
ATERIAL looked at one another. Without thinking too hard about it, I
continued, “Because compared to the other teams I work
COPYRIGHTED M
ATERIAL continued, “Because compared to the other teams I work
with, I wouldn’t say that you guys seem particularly friendly.”
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with, I wouldn’t say that you guys seem particularly friendly.”
After a short pause, the executives laughed and agreed
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After a short pause, the executives laughed and agreed
that they didn’t really see themselves as overly friendly
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that they didn’t really see themselves as overly friendly
people either. And they quickly eliminated that from the list
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people either. And they quickly eliminated that from the list
of core values. To call it part of their core would be to invite
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of core values. To call it part of their core would be to invite
accusations of hypocrisy from employees. Imagine those
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accusations of hypocrisy from employees. Imagine those
executives standing up and touting the inherent friendliness
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executives standing up and touting the inherent friendliness
of the company and building everything from performance
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of the company and building everything from performance
reviews to hiring profiles around a concept that they did not
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reviews to hiring profiles around a concept that they did not
exhibit naturally.
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exhibit naturally.
At the same time, the executives agreed that they
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At the same time, the executives agreed that they
needed to work on becoming more approachable and
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needed to work on becoming more approachable and
friendly, because it was something that many others in the
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friendly, because it was something that many others in the
organization valued. It would become an aspirational, but COPYRIGHTED M
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organization valued. It would become an aspirational, but NOT FOR R
ESALEthat they didn’t really see themselves as overly friendly
NOT FOR RESALE
that they didn’t really see themselves as overly friendly
people either. And they quickly eliminated that from the list
NOT FOR RESALEpeople either. And they quickly eliminated that from the list
of core values. To call it part of their core would be to invite
NOT FOR RESALEof core values. To call it part of their core would be to invite
accusations of hypocrisy from employees. Imagine those
NOT FOR RESALE
accusations of hypocrisy from employees. Imagine those
executives standing up and touting the inherent friendliness
NOT FOR RESALE
executives standing up and touting the inherent friendliness
of the company and building everything from performance
NOT FOR RESALE
of the company and building everything from performance
reviews to hiring profiles around a concept that they did not
NOT FOR RESALE
reviews to hiring profiles around a concept that they did not
At the same time, the executives agreed that they
NOT FOR RESALE
At the same time, the executives agreed that they
needed to work on becoming more approachable and
NOT FOR RESALE
needed to work on becoming more approachable and
friendly, because it was something that many others in the NOT FOR RESALE
friendly, because it was something that many others in the
Patrick Lencioni—The Advantage
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The Advantage
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Having answered the first two questions, Why do we exist? and How do we behave?, a leadership team can then come down the mountain, so to speak, and begin answering the next four, which are a bit more concrete and tangible.
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QUeSTIOn 3: WHAT DO We DO?
This question is the simplest of the six and takes the least amount of time and energy to address. The answer lies at the opposite end of the idealism scale from why an organization exists and is nothing more than a descrip-tion of what an organization actually does. No flowery adjectives or adverbs here. Nothing ethereal or abstract. Just an unsexy, one-sentence definition—something your grandmother can understand (no offense to grandmas). The answer to this question is something we call an orga-nization’s business definition (but never a mission statement!).
If an organization’s reason for existence answers the question, Why?, then its business definition answers the question, What? It’s critical that it be clear and straightforward. It should not be crafted so that it can also be used in marketing material. The point is just to make sure that the leadership team is crystal clear about, and can accurately describe, the nature of the organization’s business so that they don’t create confu-sion within the rest of the company or, for that matter, in the market. It’s as simple as that.
Coming up with a good business definition is usually not terribly difficult and often doesn’t take much more than ten, maybe twenty minutes. Unlike the core purpose, most leaders have a good idea of the basic activities of the organizations they lead. Nevertheless, I’m always surprised when I ask members of a leadership team to quietly write down a sentence or two about what they think the organization does, and I find that there is more discrepancy than I or, more important, they had thought. Taking a few minutes to make sure everyone is on the same page is always worthwhile.
Here are a few examples from organizations we’ve worked with. They are not particularly interesting, and I suppose that’s part of the point. They are simply concrete, detailed descriptions that, when com-bined with the reason for existing, describe what an organization does and why it does it:
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definition—something your grandmother can understand (no offense
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definition—something your grandmother can understand (no offense to grandmas). The answer to this question is something we call an orga-
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nization’s business definition (but never a mission statement!).
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nization’s business definition (but never a mission statement!).If an organization’s reason for existence answers the question,
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If an organization’s reason for existence answers the question, then its business definition answers the question,
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then its business definition answers the question, it be clear and straightforward. It should not be crafted so that it can
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it be clear and straightforward. It should not be crafted so that it can also be used in marketing material. The point is just to make sure that
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also be used in marketing material. The point is just to make sure that the leadership team is crystal clear about, and can accurately describe,
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the leadership team is crystal clear about, and can accurately describe, the nature of the organization’s business so that they don’t create confu-
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the nature of the organization’s business so that they don’t create confu-sion within the rest of the company or, for that matter, in the market.
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sion within the rest of the company or, for that matter, in the market. It’s as simple as that.
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It’s as simple as that.Coming up with a good business definition is usually not terribly
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Coming up with a good business definition is usually not terribly difficult and often doesn’t take much more than ten, maybe twenty
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difficult and often doesn’t take much more than ten, maybe twenty minutes. Unlike the core purpose, most leaders have a good idea of the
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minutes. Unlike the core purpose, most leaders have a good idea of the basic activities of the organizations they lead. Nevertheless, I’m always COPYRIG
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basic activities of the organizations they lead. Nevertheless, I’m always surprised when I ask members of a leadership team to quietly write COPYRIG
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surprised when I ask members of a leadership team to quietly write NOT FOR R
ESALEWhat?
NOT FOR RESALE
What?it be clear and straightforward. It should not be crafted so that it can
NOT FOR RESALEit be clear and straightforward. It should not be crafted so that it can
also be used in marketing material. The point is just to make sure that
NOT FOR RESALEalso be used in marketing material. The point is just to make sure that
the leadership team is crystal clear about, and can accurately describe,
NOT FOR RESALE
the leadership team is crystal clear about, and can accurately describe, the nature of the organization’s business so that they don’t create confu-
NOT FOR RESALE
the nature of the organization’s business so that they don’t create confu-sion within the rest of the company or, for that matter, in the market.
NOT FOR RESALE
sion within the rest of the company or, for that matter, in the market.
Coming up with a good business definition is usually not terribly
NOT FOR RESALE
Coming up with a good business definition is usually not terribly difficult and often doesn’t take much more than ten, maybe twenty
NOT FOR RESALE
difficult and often doesn’t take much more than ten, maybe twenty minutes. Unlike the core purpose, most leaders have a good idea of the
NOT FOR RESALE
minutes. Unlike the core purpose, most leaders have a good idea of the basic activities of the organizations they lead. Nevertheless, I’m always NOT FOR R
ESALE
basic activities of the organizations they lead. Nevertheless, I’m always
Patrick Lencioni—The Advantage
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The Advantage
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• A power company: “We generate and deliver electrical and natural gas products and services to people throughout the state.”
• A credit card company: “We provide payment products and extend credit to consumers.”
• A technology hardware company: “We develop, manufacture, and market hard drives, solid-state drives, and storage subsystems for consumers, OEMs, and enterprises.”
• A biopharmaceutical company: “We discover, develop, make, and commercialize better medicines through integrated sciences.”
• A Catholic church: “We provide Sacraments, outreach services, counseling, and religious education for people in our parish.”
Again, no adverbs or qualifiers, and no unnecessarily detailed descriptions of sales channels or pricing. That kind of information comes in the next section, when we get into strategy.
It should be noted that an organization’s business definition can change over time, but only when the market changes and calls for a meaningful shift in the fundamental activity of the organization. In the course of my consulting firm’s fifteen years as a company, we’ve changed our business definition three times. Keep in mind that our core values and reason for existing have never changed.
That’s all that needs to be said about answering question 3, so that’s all I’ll say. The next question that needs to be answered is much more interesting and important.
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“We discover, develop, make, and
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“We discover, develop, make, and commercialize better medicines through integrated sciences.”
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“We provide Sacraments, outreach services,
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“We provide Sacraments, outreach services, counseling, and religious education for people in our parish.”
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counseling, and religious education for people in our parish.”
Again, no adverbs or qualifiers, and no unnecessarily detailed
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Again, no adverbs or qualifiers, and no unnecessarily detailed descriptions of sales channels or pricing. That kind of information
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descriptions of sales channels or pricing. That kind of information comes in the next section, when we get into strategy.
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comes in the next section, when we get into strategy.It should be noted that an organization’s business definition can
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It should be noted that an organization’s business definition can
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change over time, but only when the market changes and calls for a
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change over time, but only when the market changes and calls for a meaningful shift in the fundamental activity of the organization. In the
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meaningful shift in the fundamental activity of the organization. In the course of my consulting firm’s fifteen years as a company, we’ve changed
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course of my consulting firm’s fifteen years as a company, we’ve changed our business definition three times. Keep in mind that our core values
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our business definition three times. Keep in mind that our core values
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and reason for existing have never changed.
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and reason for existing have never changed.That’s all that needs to be said about answering question 3, so that’s COPYRIG
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That’s all that needs to be said about answering question 3, so that’s all I’ll say. The next question that needs to be answered is much more COPYRIG
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all I’ll say. The next question that needs to be answered is much more NOT FOR R
ESALEAgain, no adverbs or qualifiers, and no unnecessarily detailed
NOT FOR RESALEAgain, no adverbs or qualifiers, and no unnecessarily detailed
descriptions of sales channels or pricing. That kind of information
NOT FOR RESALEdescriptions of sales channels or pricing. That kind of information
comes in the next section, when we get into strategy.
NOT FOR RESALE
comes in the next section, when we get into strategy.It should be noted that an organization’s business definition can
NOT FOR RESALE
It should be noted that an organization’s business definition can
NOT FOR RESALE
change over time, but only when the market changes and calls for a
NOT FOR RESALE
change over time, but only when the market changes and calls for a meaningful shift in the fundamental activity of the organization. In the
NOT FOR RESALE
meaningful shift in the fundamental activity of the organization. In the course of my consulting firm’s fifteen years as a company, we’ve changed
NOT FOR RESALE
course of my consulting firm’s fifteen years as a company, we’ve changed our business definition three times. Keep in mind that our core values
NOT FOR RESALE
our business definition three times. Keep in mind that our core values
NOT FOR RESALE
and reason for existing have never changed.NOT FOR R
ESALE
and reason for existing have never changed.That’s all that needs to be said about answering question 3, so that’s NOT FOR R
ESALE
That’s all that needs to be said about answering question 3, so that’s
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Discipline 2: Create Clarity
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QUeSTIOn 4: HOW WIll We SUCCeeD?
When team leaders answer this question, essentially they are determin-ing their strategy. Unfortunately, more than any word in the business lexicon, strategy is one of the most widely employed and poorly defined. Executives, consultants, and scholars use it to mean so many different things that it has become almost meaningless without a clarifying defi-nition each time it is cited.
Years ago, not long after I started my consulting firm, a client asked me to help his team with its strategy, and I froze. I thought to myself, What exactly is a strategy? This was particularly troubling because I had spent two years working for a strategic management consulting firm. I wondered, Did I sleep through the day they taught us the definition of strategy?
So I went and did some research, reading and rereading a few books about strategy. And they were mostly confusing. Michael Porter’s book, Competitive Strategy, was by far the most helpful, and using that and some of our own ideas based on companies we had worked with, we came up with our own defi-nition and process for iden-tifying strategy.3 We were relieved, and a little sur-prised, to learn that clients found it to be so helpful, and that we weren’t the only ones who were confused by the “S” word.
Strategic AnchorsEssentially we decided that an organization’s strategy is simply its plan for success. It’s nothing more than the collection of intentional decisions a company makes to give itself the best chance to thrive and differentiate
An organization’s strategy is
nothing more than the
collection of intentional
decisions a company makes to
give itself the best chance to
thrive and differentiate from
competitors.
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ATERIAL Years ago, not long after I started my consulting firm, a client asked
COPYRIGHTED M
ATERIAL Years ago, not long after I started my consulting firm, a client asked
me to help his team with its strategy, and I froze. I thought to myself,
COPYRIGHTED M
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me to help his team with its strategy, and I froze. I thought to myself, This was particularly troubling because I had
COPYRIGHTED M
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This was particularly troubling because I had spent two years working for a strategic management consulting firm. I
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spent two years working for a strategic management consulting firm. I Did I sleep through the day they taught us the definition of
COPYRIGHTED M
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Did I sleep through the day they taught us the definition of
So I went and did some research, reading and rereading a few books
COPYRIGHTED M
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So I went and did some research, reading and rereading a few books about strategy. And they were mostly confusing. Michael Porter’s book,
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about strategy. And they were mostly confusing. Michael Porter’s book, , was by far the most helpful, and using that and
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, was by far the most helpful, and using that and some of our own ideas based on companies we had worked with, we
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some of our own ideas based on companies we had worked with, we came up with our own defi-
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came up with our own defi-nition and process for iden-
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nition and process for iden-tifying strategy.
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tifying strategy.3
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3
relieved, and a little sur-COPYRIGHTED M
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relieved, and a little sur-prised, to learn that clients COPYRIG
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prised, to learn that clients NOT FOR R
ESALEspent two years working for a strategic management consulting firm. I
NOT FOR RESALE
spent two years working for a strategic management consulting firm. I Did I sleep through the day they taught us the definition of
NOT FOR RESALEDid I sleep through the day they taught us the definition of
So I went and did some research, reading and rereading a few books
NOT FOR RESALE
So I went and did some research, reading and rereading a few books about strategy. And they were mostly confusing. Michael Porter’s book,
NOT FOR RESALE
about strategy. And they were mostly confusing. Michael Porter’s book, , was by far the most helpful, and using that and
NOT FOR RESALE
, was by far the most helpful, and using that and some of our own ideas based on companies we had worked with, we
NOT FOR RESALE
some of our own ideas based on companies we had worked with, we came up with our own defi-
NOT FOR RESALE
came up with our own defi-nition and process for iden-
NOT FOR RESALE
nition and process for iden- We were
NOT FOR RESALE
We were relieved, and a little sur-NOT FOR R
ESALE
relieved, and a little sur-
Patrick Lencioni—The Advantage
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The Advantage
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from competitors. That means every single decision, if it is made inten-tionally and consistently, will be part of the overall strategy.
But that definition is not particularly actionable or useful for guiding the decisions of leaders and employees. We came to realize that the best way for an organization to make strategy practical is to boil it down to three strategic anchors that will be used to inform every deci-sion the organization makes and provide the filter or lens through which decisions must be evaluated to ensure consistency. Strategic anchors provide the context for all decision making and help companies avoid the temptation to make purely pragmatic and opportunistic deci-sions that so often end up diminishing a company’s plan for success.
Strategic Branding
We worked with a fresh produce company that decided that
one of its three strategic anchors was about maintaining “a
premium, high-quality brand.” As a result, the leaders mar-
keted their products aggressively using the company name
and they went to great lengths in stores to merchandise and
present their higher-quality products in an attractive way to
justify the higher prices that they commanded.
But sometimes the company’s produce didn’t come off
the farm as attractive and delicious as they wanted it to be.
Resisting the temptation to mix it in with the higher-quality
product and hope that consumers wouldn’t notice, the
leaders decided to sell their slightly lower-quality produce
through different channels and under a different brand and,
of course, at a different price. And in those rare instances
when they couldn’t grow any premium-quality produce in a
given category, the company simply refused to provide
stores with products. Its leaders would rather forfeit short-
term revenue than diminish the brand that they believed was
critical to their differentiation and long-term success.
Lencioni_1522_c04_main.indd 108 1/17/2012 1:47:01 PM
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which decisions must be evaluated to ensure consistency. Strategic
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which decisions must be evaluated to ensure consistency. Strategic anchors provide the context for all decision making and help companies
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avoid the temptation to make purely pragmatic and opportunistic deci-
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avoid the temptation to make purely pragmatic and opportunistic deci-sions that so often end up diminishing a company’s plan for success.
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sions that so often end up diminishing a company’s plan for success.
Strategic Branding
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Strategic Branding
We worked with a fresh produce company that decided that
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We worked with a fresh produce company that decided that
one of its three strategic anchors was about maintaining “a
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ATERIAL
one of its three strategic anchors was about maintaining “a
premium, high-quality brand.” As a result, the leaders mar-
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premium, high-quality brand.” As a result, the leaders mar-
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keted their products aggressively using the company name
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keted their products aggressively using the company name
and they went to great lengths in stores to merchandise and
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and they went to great lengths in stores to merchandise and
present their higher-quality products in an attractive way to
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present their higher-quality products in an attractive way to
justify the higher prices that they commanded.
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justify the higher prices that they commanded.
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But sometimes the company’s produce didn’t come off
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But sometimes the company’s produce didn’t come off
the farm as attractive and delicious as they wanted it to be. COPYRIGHTED M
ATERIAL
the farm as attractive and delicious as they wanted it to be. NOT FOR R
ESALEStrategic Branding
NOT FOR RESALEStrategic Branding
We worked with a fresh produce company that decided that
NOT FOR RESALE
We worked with a fresh produce company that decided that
one of its three strategic anchors was about maintaining “a
NOT FOR RESALE
one of its three strategic anchors was about maintaining “a
premium, high-quality brand.” As a result, the leaders mar-
NOT FOR RESALE
premium, high-quality brand.” As a result, the leaders mar-
NOT FOR RESALE
keted their products aggressively using the company name
NOT FOR RESALE
keted their products aggressively using the company name
and they went to great lengths in stores to merchandise and
NOT FOR RESALE
and they went to great lengths in stores to merchandise and
present their higher-quality products in an attractive way to
NOT FOR RESALE
present their higher-quality products in an attractive way to
justify the higher prices that they commanded.
NOT FOR RESALE
justify the higher prices that they commanded.
NOT FOR RESALE
But sometimes the company’s produce didn’t come off NOT FOR RESALE
But sometimes the company’s produce didn’t come off
Patrick Lencioni—The Advantage
La
Discipline 2: Create Clarity
109
Identifying AnchorsThe best way for leaders to go about finding their strategic anchors is to take a reverse-engineering approach and extract them from every-thing that they know to be true about their organization. They need to start by creating an exhaustive list of all the decisions and realities that form the context of their current situation. This will include anything beyond the organization’s reason for existence, core values, and business definition.
To understand how this works, let’s dissect a (mostly) fictional small, regional chain of sporting goods stores.
We’ll assume that the company has already answered the questions, Why do we exist?, How do we behave?, and What do we do? Let’s say their reason for existing is “to enable people to enjoy being outdoors,” their core values are “enthusiasm for helping people, personal responsibility, and pride of ownership,” and their business definition is, “We provide recreational and sports-related goods and equipment to people in the greater metropolitan area.”
Having identified those critical components, the next question the leaders would need to answer, and the one at the heart of the strategic anchor activity, is, How will we succeed? Or put another way, How will we make decisions in a purposeful, intentional, and unique way that allow us to maximize our success and differentiate us from our competitors?
To create their exhaustive list, the leaders would consider every-thing imaginable related to their business. And I mean everything —topics like pricing, hiring, site selection, marketing, advertising,
Keep in mind that another company with a different set
of strategic anchors—namely, without a premium brand
being one of them—would probably handle that situation
differently. And that would be okay as long as it was inten-
tional and consistent with what they believed would enable
their success.
Lencioni_1522_c04_main.indd 109 1/17/2012 1:47:01 PM
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ATERIAL The best way for leaders to go about finding their strategic anchors is
COPYRIGHTED M
ATERIAL The best way for leaders to go about finding their strategic anchors is
to take a reverse-engineering approach and extract them from every-
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ATERIAL
to take a reverse-engineering approach and extract them from every-thing that they know to be true about their organization. They need to
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ATERIAL
thing that they know to be true about their organization. They need to start by creating an exhaustive list of all the decisions and realities that
COPYRIGHTED M
ATERIAL
start by creating an exhaustive list of all the decisions and realities that form the context of their current situation. This will include anything
COPYRIGHTED M
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form the context of their current situation. This will include anything beyond the organization’s reason for existence, core values, and business
COPYRIGHTED M
ATERIAL
beyond the organization’s reason for existence, core values, and business
To understand how this works, let’s dissect a (mostly) fictional
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ATERIAL
To understand how this works, let’s dissect a (mostly) fictional small, regional chain of sporting goods stores.
COPYRIGHTED M
ATERIAL
small, regional chain of sporting goods stores.We’ll assume that the company has already answered the questions,
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We’ll assume that the company has already answered the questions, Why do we exist?
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Why do we exist?,
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, Why do we exist?, Why do we exist?
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Why do we exist?, Why do we exist? How do we behave?
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How do we behave?reason for existing is “to enable people to enjoy being outdoors,” their
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reason for existing is “to enable people to enjoy being outdoors,” their core values are “enthusiasm for helping people, personal responsibility,
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core values are “enthusiasm for helping people, personal responsibility, and pride of ownership,” and their business definition is, “We provide COPYRIG
HTED MATERIA
L
and pride of ownership,” and their business definition is, “We provide recreational and sports-related goods and equipment to people in the COPYRIG
HTED MATERIA
L
recreational and sports-related goods and equipment to people in the NOT FOR R
ESALEstart by creating an exhaustive list of all the decisions and realities that
NOT FOR RESALE
start by creating an exhaustive list of all the decisions and realities that form the context of their current situation. This will include anything
NOT FOR RESALEform the context of their current situation. This will include anything
beyond the organization’s reason for existence, core values, and business
NOT FOR RESALEbeyond the organization’s reason for existence, core values, and business
To understand how this works, let’s dissect a (mostly) fictional
NOT FOR RESALE
To understand how this works, let’s dissect a (mostly) fictional small, regional chain of sporting goods stores.
NOT FOR RESALE
small, regional chain of sporting goods stores.We’ll assume that the company has already answered the questions,
NOT FOR RESALE
We’ll assume that the company has already answered the questions, How do we behave?
NOT FOR RESALE
How do we behave?reason for existing is “to enable people to enjoy being outdoors,” their
NOT FOR RESALE
reason for existing is “to enable people to enjoy being outdoors,” their core values are “enthusiasm for helping people, personal responsibility, NOT FOR R
ESALE
core values are “enthusiasm for helping people, personal responsibility, and pride of ownership,” and their business definition is, “We provide NOT FOR R
ESALE
and pride of ownership,” and their business definition is, “We provide
Patrick Lencioni—The Advantage
La
The Advantage
110
branding, merchandising, sourcing, partnering, product selection, in-store experience, service offerings, promotions, decor, and more. I’m sure I’ve left a few things off that list.
Here’s what their list looks like:
• Huge selection of products• Competitive/low prices• Nontraditional sports categories• Seasonal focus of merchandise• Informal, homemade signage in the stores• Minimalistic displays and no glossy merchandising• Free CPR and other medical classes• Free meeting space for scouts and local sports teams• Pet-related products• Warehouse-like locations• Easy access and parking• Employee training and development opportunities
• Hire for attitude and cultural t• Seasonal employees• Ski-lift tickets at cost• Employee discounts• Store stays open late• Minimal advertising• Active local event sponsorship• Liberal return policy• Flexible employment policies and hours• Slightly better than industry- competitive wages and bene ts• Six stores in the metropolitan area• High cooperation among stores• Equipment rentals
That’s a long and exhaustive list, and it needs to be. It’s impossible not to notice that some of the items are slightly redundant and that there is no clear or consistent taxonomy. In other words, it includes apples, oranges, monkeys, and Cadillacs, which is fine. It’s better to be redundant and a little inconsistent than to leave something out. The purpose is just to get everything out on the table (actually the flip chart) so that leadership team members can gain a sense of the whole messy picture. And it’s worth noting that when we work with clients we don’t write these items as a linear list. We draw a big amoeba-like shape on a flip chart and just start filling it in with terms and phrases. This makes
Lencioni_1522_c04_main.indd 110 1/17/2012 1:47:01 PM
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• Easy access and parking
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• Easy access and parking• Employee training and development
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• Employee training and development
• Employee discounts
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ATERIAL • Employee discounts
• Store stays open late
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ATERIAL • Store stays open late
• Minimal advertising
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• Minimal advertising• Active local event sponsorship
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• Active local event sponsorship• Liberal return policy
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• Liberal return policy• Flexible employment policies
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• Flexible employment policies and hours
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and hours• Slightly better than industry-
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• Slightly better than industry-
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That’s a long and exhaustive list, and it needs to be. It’s impossible COPYRIGHTED M
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That’s a long and exhaustive list, and it needs to be. It’s impossible not to notice that some of the items are slightly redundant and that COPYRIG
HTED MATERIA
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not to notice that some of the items are slightly redundant and that NOT FOR R
ESALE• Active local event sponsorship
NOT FOR RESALE
• Active local event sponsorship• Liberal return policy
NOT FOR RESALE
• Liberal return policy• Flexible employment policies
NOT FOR RESALE• Flexible employment policies
NOT FOR RESALE
• Employee training and development
NOT FOR RESALE
• Employee training and development
and hours
NOT FOR RESALE
and hours• Slightly better than industry-
NOT FOR RESALE
• Slightly better than industry- competitive wages and bene ts
NOT FOR RESALE
competitive wages and bene ts• Six stores in the metropolitan area
NOT FOR RESALE
• Six stores in the metropolitan area• High cooperation among stores
NOT FOR RESALE
• High cooperation among stores
That’s a long and exhaustive list, and it needs to be. It’s impossible NOT FOR RESALE
That’s a long and exhaustive list, and it needs to be. It’s impossible
Patrick Lencioni—The Advantage
La
Discipline 2: Create Clarity
111
it easier to see relationships between terms, which becomes important in the next step.
That next step is a little chaotic, difficult, unscientific, and fun. Leaders must search for patterns that would indicate the organization’s strategic direction and anchors. Put another way, they need to identify the items, or collections of items, that fit together to form a theme or category. Michael Porter has a similar process called activity system maps.4
In the case of the sporting goods chain, there seems to be some-thing common about having stores in large, low-rent buildings; spend-ing minimal money on merchandising and signage; engaging in minimal advertising and traditional marketing; and charging relatively low prices. A leadership team might label this potential anchor, “keep prices low by being frugal whenever we can” or “reduce fixed costs as much as possible.” Whatever they call it, it will speak to the idea of low prices and low costs.
Similarly, they would certainly see a connection between offering free CPR classes, free meeting space for local sports teams and scouts, easy access and ample parking, and sponsorship of local sporting events as something like “build local loyalty and become a community destination.”
Finally, the competitive wages and benefits, investment in training, hiring for behavioral values, flexible hours and policies, employee discounts, and even the liberal return policy would suggest that “create a positive, flexible environment for employees” might be another anchor. (See “The Strategy Amoeba”.)
Remember, this process will always be a little messy and organic. It requires judgment, reflection, and, at times, intuitive synthesis on the part of the members of a leadership team. Nonetheless, it is a reli-able process that should lead to an outcome that will resonate with the team and inspire confidence in how decisions can be made in an inten-tional, strategic way.
Lencioni_1522_c04_main.indd 111 1/17/2012 1:47:01 PM
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In the case of the sporting goods chain, there seems to be some-
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In the case of the sporting goods chain, there seems to be some-thing common about having stores in large, low-rent buildings; spend-
COPYRIGHTED M
ATERIAL thing common about having stores in large, low-rent buildings; spend-
ing minimal money on merchandising and signage; engaging in minimal
COPYRIGHTED M
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ing minimal money on merchandising and signage; engaging in minimal advertising and traditional marketing; and charging relatively low
COPYRIGHTED M
ATERIAL
advertising and traditional marketing; and charging relatively low prices. A leadership team might label this potential anchor, “keep prices
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ATERIAL
prices. A leadership team might label this potential anchor, “keep prices low by being frugal whenever we can” or “reduce fixed costs as much
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ATERIAL
low by being frugal whenever we can” or “reduce fixed costs as much as possible.” Whatever they call it, it will speak to the idea of low prices
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as possible.” Whatever they call it, it will speak to the idea of low prices
Similarly, they would certainly see a connection between offering
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Similarly, they would certainly see a connection between offering
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free CPR classes, free meeting space for local sports teams and scouts,
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free CPR classes, free meeting space for local sports teams and scouts, easy access and ample parking, and sponsorship of local sporting events
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ATERIAL
easy access and ample parking, and sponsorship of local sporting events as something like “build local loyalty and become a community
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as something like “build local loyalty and become a community
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Finally, the competitive wages and benefits, investment in training,
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Finally, the competitive wages and benefits, investment in training, hiring for behavioral values, flexible hours and policies, employee COPYRIG
HTED MATERIA
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hiring for behavioral values, flexible hours and policies, employee discounts, and even the liberal return policy would suggest that “create COPYRIG
HTED MATERIA
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discounts, and even the liberal return policy would suggest that “create NOT FOR R
ESALEprices. A leadership team might label this potential anchor, “keep prices
NOT FOR RESALE
prices. A leadership team might label this potential anchor, “keep prices low by being frugal whenever we can” or “reduce fixed costs as much
NOT FOR RESALElow by being frugal whenever we can” or “reduce fixed costs as much
as possible.” Whatever they call it, it will speak to the idea of low prices
NOT FOR RESALEas possible.” Whatever they call it, it will speak to the idea of low prices
Similarly, they would certainly see a connection between offering
NOT FOR RESALE
Similarly, they would certainly see a connection between offering
NOT FOR RESALE
free CPR classes, free meeting space for local sports teams and scouts,
NOT FOR RESALE
free CPR classes, free meeting space for local sports teams and scouts, easy access and ample parking, and sponsorship of local sporting events
NOT FOR RESALE
easy access and ample parking, and sponsorship of local sporting events as something like “build local loyalty and become a community
NOT FOR RESALE
as something like “build local loyalty and become a community
NOT FOR RESALE
Finally, the competitive wages and benefits, investment in training, NOT FOR RESALE
Finally, the competitive wages and benefits, investment in training, hiring for behavioral values, flexible hours and policies, employee NOT FOR R
ESALE
hiring for behavioral values, flexible hours and policies, employee
Patrick Lencioni—The Advantage
La
The Advantage
112
The Strategy Amoeba
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Patrick Lencioni—The Advantage
La
Discipline 2: Create Clarity
113
Every organization’s process for identifying strategic anchors will be different, though similarly messy.
Strategic food
I was working with the confections division of a large food
company. We started our strategy discussion by putting
together an exhaustive list of truths about their business:
integrated direct-to-store shipping model, a strong brand,
customer-centricity, innovation, product quality (taste),
leverage being part of a big company, operations as com-
petitive advantage, compete against private label, part of
parent company, superpremium brand, fun place to work,
low margins, headquarters in New York, seven U.S. factories,
high quality, U.S. market focus, complexity of operations,
superior products, use of in-store marketing, multiple brands,
consumer driven, and aggressive use of technology.
Next, the executives looked over the flip chart with all
the items on it and searched for the potential anchors. To
help them, we asked, “Which of these are so fundamental
that they should be used as filters to inform every other
decision?” The answers didn’t leap off the page immediately,
but, as usual, within five or ten minutes a few strong candi-
dates began to emerge, as well as a few that were obviously
not going to be strategic anchors (for example, headquarters
in New York).
As people started to discuss the possible candidates for
anchors, they came up with new and better ways to describe
what they had originally put on the list, which was fine. We
reminded them that this was a messy, nonlinear process, and
that’s the way it needs to be.
Whenever anyone made a recommendation for a pos-
sible anchor, we asked the team if that was fundamental, or
if it was merely a function of something else on the list that
Lencioni_1522_c04_main.indd 113 1/17/2012 1:47:01 PM
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ATERIAL integrated direct-to-store shipping model, a strong brand,
customer-centricity, innovation, product quality (taste),
COPYRIGHTED M
ATERIAL customer-centricity, innovation, product quality (taste),
leverage being part of a big company, operations as com-
COPYRIGHTED M
ATERIAL
leverage being part of a big company, operations as com-
petitive advantage, compete against private label, part of
COPYRIGHTED M
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petitive advantage, compete against private label, part of
parent company, superpremium brand, fun place to work,
COPYRIGHTED M
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parent company, superpremium brand, fun place to work,
low margins, headquarters in New York, seven U.S. factories,
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ATERIAL
low margins, headquarters in New York, seven U.S. factories,
high quality, U.S. market focus, complexity of operations,
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high quality, U.S. market focus, complexity of operations,
superior products, use of in-store marketing, multiple brands,
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superior products, use of in-store marketing, multiple brands,
consumer driven, and aggressive use of technology.
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ATERIAL
consumer driven, and aggressive use of technology.
Next, the executives looked over the flip chart with all
COPYRIGHTED M
ATERIAL
Next, the executives looked over the flip chart with all
the items on it and searched for the potential anchors. To
COPYRIGHTED M
ATERIAL
the items on it and searched for the potential anchors. To
help them, we asked, “Which of these are so fundamental
COPYRIGHTED M
ATERIAL
help them, we asked, “Which of these are so fundamental
that they should be used as filters to inform every other
COPYRIGHTED M
ATERIAL
that they should be used as filters to inform every other
decision?” The answers didn’t leap off the page immediately,
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ATERIAL
decision?” The answers didn’t leap off the page immediately,
but, as usual, within five or ten minutes a few strong candi-
COPYRIGHTED M
ATERIAL
but, as usual, within five or ten minutes a few strong candi-
dates began to emerge, as well as a few that were obviously COPYRIGHTED M
ATERIAL
dates began to emerge, as well as a few that were obviously NOT FOR R
ESALEparent company, superpremium brand, fun place to work,
NOT FOR RESALE
parent company, superpremium brand, fun place to work,
low margins, headquarters in New York, seven U.S. factories,
NOT FOR RESALElow margins, headquarters in New York, seven U.S. factories,
high quality, U.S. market focus, complexity of operations,
NOT FOR RESALE
high quality, U.S. market focus, complexity of operations,
superior products, use of in-store marketing, multiple brands,
NOT FOR RESALE
superior products, use of in-store marketing, multiple brands,
consumer driven, and aggressive use of technology.
NOT FOR RESALE
consumer driven, and aggressive use of technology.
Next, the executives looked over the flip chart with all
NOT FOR RESALE
Next, the executives looked over the flip chart with all
the items on it and searched for the potential anchors. To
NOT FOR RESALE
the items on it and searched for the potential anchors. To
help them, we asked, “Which of these are so fundamental
NOT FOR RESALE
help them, we asked, “Which of these are so fundamental
that they should be used as filters to inform every other
NOT FOR RESALE
that they should be used as filters to inform every other
decision?” The answers didn’t leap off the page immediately,
NOT FOR RESALE
decision?” The answers didn’t leap off the page immediately,
but, as usual, within five or ten minutes a few strong candi-NOT FOR RESALE
but, as usual, within five or ten minutes a few strong candi-
Patrick Lencioni—The Advantage
La
The Advantage
114
was even more fundamental. In the end, the team came up
with the following strategic anchors: product superiority,
in-store market execution, and predictable financial
performance.
The team was saying that their success would be depen-
dent on (1) continuing to make better-tasting and higher-
quality products than their competitors, (2) being great at
in-store merchandising and placement, and (3) delivering
consistent and conservative financial results to their parent
company. Every decision they made would need to be evalu-
ated in light of and informed by these anchors.
For example, if a company emerged as a potential acqui-
sition candidate, the team would evaluate that decision
against the three criteria: (1) Does the acquisition candidate
have products that are or could be of superior quality to
those of their competition? (2) Can we merchandise those
products in stores in a way that meets our high standards?
(3) Is there a reasonable chance of seeing a profit in the
not-too-distant future? If the answer to these questions is
yes, it’s probably a strategic fit. If the answers are no, going
forward with the acquisition would probably not be a stra-
tegically aligned decision, regardless of how tempting it
might be.
Now, in rare instances every organization will find itself in situa-tions where it will have to make small, tactical short-term decisions that don’t conform to its strategic anchors. It is critical that leaders be com-pletely up front about the fact that such a decision is off-strategy and is a rare exception.
Unlike a company’s reason for existing and core values, which never change, and the business definition, which changes fairly infrequently, an organization’s strategic anchors should change whenever its competi-tive landscape shifts and market conditions call for a different approach.
Lencioni_1522_c04_main.indd 114 1/17/2012 1:47:02 PM
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ATERIAL consistent and conservative financial results to their parent
COPYRIGHTED M
ATERIAL consistent and conservative financial results to their parent
company. Every decision they made would need to be evalu-
COPYRIGHTED M
ATERIAL company. Every decision they made would need to be evalu-
ated in light of and informed by these anchors.
COPYRIGHTED M
ATERIAL
ated in light of and informed by these anchors.
For example, if a company emerged as a potential acqui-
COPYRIGHTED M
ATERIAL
For example, if a company emerged as a potential acqui-
sition candidate, the team would evaluate that decision
COPYRIGHTED M
ATERIAL
sition candidate, the team would evaluate that decision
against the three criteria: (1) Does the acquisition candidate
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ATERIAL
against the three criteria: (1) Does the acquisition candidate
have products that are or could be of superior quality to
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have products that are or could be of superior quality to
those of their competition? (2) Can we merchandise those
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ATERIAL
those of their competition? (2) Can we merchandise those
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ATERIAL
products in stores in a way that meets our high standards?
COPYRIGHTED M
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products in stores in a way that meets our high standards?
(3) Is there a reasonable chance of seeing a profit in the
COPYRIGHTED M
ATERIAL
(3) Is there a reasonable chance of seeing a profit in the
not-too-distant future? If the answer to these questions is
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ATERIAL
not-too-distant future? If the answer to these questions is
yes, it’s probably a strategic fit. If the answers are no, going
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yes, it’s probably a strategic fit. If the answers are no, going
COPYRIGHTED M
ATERIAL
forward with the acquisition would probably not be a stra-
COPYRIGHTED M
ATERIAL
forward with the acquisition would probably not be a stra-
tegically aligned decision, regardless of how tempting it
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ATERIAL
tegically aligned decision, regardless of how tempting it
might be.
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might be. NOT FOR RESALE
sition candidate, the team would evaluate that decision
NOT FOR RESALE
sition candidate, the team would evaluate that decision
against the three criteria: (1) Does the acquisition candidate
NOT FOR RESALEagainst the three criteria: (1) Does the acquisition candidate
have products that are or could be of superior quality to
NOT FOR RESALEhave products that are or could be of superior quality to
those of their competition? (2) Can we merchandise those
NOT FOR RESALE
those of their competition? (2) Can we merchandise those
NOT FOR RESALE
products in stores in a way that meets our high standards?
NOT FOR RESALE
products in stores in a way that meets our high standards?
(3) Is there a reasonable chance of seeing a profit in the
NOT FOR RESALE
(3) Is there a reasonable chance of seeing a profit in the
not-too-distant future? If the answer to these questions is
NOT FOR RESALE
not-too-distant future? If the answer to these questions is
yes, it’s probably a strategic fit. If the answers are no, going
NOT FOR RESALE
yes, it’s probably a strategic fit. If the answers are no, going
NOT FOR RESALE
forward with the acquisition would probably not be a stra-
NOT FOR RESALE
forward with the acquisition would probably not be a stra-
tegically aligned decision, regardless of how tempting it
NOT FOR RESALE
tegically aligned decision, regardless of how tempting it
Patrick Lencioni—The Advantage
La
Discipline 2: Create Clarity
115
STRATegIC DURABIlITY
How often will your organization need to change its strategic anchors?
Well, that will depend largely on two industry traits: the barriers
to entry in a given market and the rate of innovation.
When barriers to entry are high and innovation is relatively
low, strategic anchors will be very durable and require less
change over time. Airlines certainly fall into this category.
When barriers to entry are low and innovation is high, strate-
gic anchors will need to be reviewed and revised much more
frequently. Online software applications companies would fit
this one.
When barriers to entry are high and innovation is high—
something that would apply to pharmaceutical companies—
strategic durability would fall somewhere in between. The same
would be true when barriers to entry and innovation are both
low, as is seen in many smaller services firms, including law,
consulting, and advertising.
MediumDurability
MediumDurability
High
LowDurability(StrategyChanges
Frequently)
Rate ofInnovation
HighDurability(StrategyChanges
Infrequently)
Barriers toEntry
HighLow
Low
How often this happens will vary depending on the nature of a given organization’s market or industry (see the “Strategic Durability” sidebar below).
Lencioni_1522_c04_main.indd 115 1/17/2012 1:47:02 PM
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ATERIAL Well, that will depend largely on two industry traits: the barriers
COPYRIGHTED M
ATERIAL Well, that will depend largely on two industry traits: the barriers
to entry in a given market and the rate of innovation.
COPYRIGHTED M
ATERIAL
to entry in a given market and the rate of innovation.
When barriers to entry are high and innovation is relatively
COPYRIGHTED M
ATERIAL
When barriers to entry are high and innovation is relatively
low, strategic anchors will be very durable and require less
COPYRIGHTED M
ATERIAL
low, strategic anchors will be very durable and require less
change over time. Airlines certainly fall into this category.
COPYRIGHTED M
ATERIAL
change over time. Airlines certainly fall into this category.
When barriers to entry are low and innovation is high, strate-
COPYRIGHTED M
ATERIAL
When barriers to entry are low and innovation is high, strate-
gic anchors will need to be reviewed and revised much more
COPYRIGHTED M
ATERIAL
gic anchors will need to be reviewed and revised much more
frequently. Online software applications companies would fit
COPYRIGHTED M
ATERIAL
frequently. Online software applications companies would fit
When barriers to entry are high and innovation is high—
COPYRIGHTED M
ATERIAL
When barriers to entry are high and innovation is high—
something that would apply to pharmaceutical companies—
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ATERIAL
something that would apply to pharmaceutical companies—
strategic durability would fall somewhere in between. The same
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ATERIAL
strategic durability would fall somewhere in between. The same
would be true when barriers to entry and innovation are both
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ATERIAL
would be true when barriers to entry and innovation are both
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low, as is seen in many smaller services firms, including law, COPYRIGHTED M
ATERIAL
low, as is seen in many smaller services firms, including law,
consulting, and advertising.COPYRIGHTED M
ATERIAL
consulting, and advertising.NOT FOR R
ESALElow, strategic anchors will be very durable and require less
NOT FOR RESALE
low, strategic anchors will be very durable and require less
change over time. Airlines certainly fall into this category.
NOT FOR RESALEchange over time. Airlines certainly fall into this category.
When barriers to entry are low and innovation is high, strate-
NOT FOR RESALE
When barriers to entry are low and innovation is high, strate-
gic anchors will need to be reviewed and revised much more
NOT FOR RESALE
gic anchors will need to be reviewed and revised much more
frequently. Online software applications companies would fit
NOT FOR RESALE
frequently. Online software applications companies would fit
When barriers to entry are high and innovation is high—
NOT FOR RESALE
When barriers to entry are high and innovation is high—
something that would apply to pharmaceutical companies—
NOT FOR RESALE
something that would apply to pharmaceutical companies—
strategic durability would fall somewhere in between. The same
NOT FOR RESALE
strategic durability would fall somewhere in between. The same
would be true when barriers to entry and innovation are both
NOT FOR RESALE
would be true when barriers to entry and innovation are both
NOT FOR RESALE
low, as is seen in many smaller services firms, including law, NOT FOR RESALE
low, as is seen in many smaller services firms, including law,
Patrick Lencioni—The Advantage
La
The Advantage
116
In some cases, one of an organization’s strategic anchors may not yet be on the list because it isn’t part of what the organization is currently doing, so it needs to be added. That’s why it’s important for an organization to realize that the process of identifying strategic anchors should not be completely reactive or historical. Sometimes it is the very process of identifying strategic anchors that alerts an organization to the fact that what it is currently doing isn’t right or isn’t enough to ensure success and differentiation, and so a change is needed.
Another outcome of establishing strategic anchors is making it easier to agree on what an organization should not be doing.
Strategic Schools
We worked with an organization that runs charter schools.
As is true in many mission-driven organizations, there is a
real temptation in schools for leaders to want to be all things
to all people. Of course, with limited resources and high
stakes, the cost of not being strategic is great.
The team started by creating an exhaustive list of every-
thing that was currently true about the organization: focus
on kindergarten through fifth grade, standardize core pro-
cesses across all schools, headquarters in Texas, slightly
lower staff pay than average public schools, emphasis on
student safety, no transportation services provided, perfor-
mance driven, data driven, no special education programs,
emphasis on parent volunteerism and involvement, internal
promotion of leaders, formative assessments, focus on
benefit to kids, low cost, minimal branding and marketing,
character-focused education, state-controlled pricing, dis-
tributed leadership model, local principal autonomy, no frills,
employees passionate about mission.
After an hour of brainstorming and passionate debate,
they arrived at the following strategic anchors: standardiza-
Lencioni_1522_c04_main.indd 116 1/17/2012 1:47:02 PM
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isn’t enough to ensure success and differentiation, and so a change is
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isn’t enough to ensure success and differentiation, and so a change is
Another outcome of establishing strategic anchors is making it
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ATERIAL
Another outcome of establishing strategic anchors is making it easier to agree on what an organization should
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easier to agree on what an organization should not
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not be doing.
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be doing.not be doing.not
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not be doing.not
Strategic Schools
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Strategic Schools
We worked with an organization that runs charter schools.
COPYRIGHTED M
ATERIAL
We worked with an organization that runs charter schools.
As is true in many mission-driven organizations, there is a
COPYRIGHTED M
ATERIAL
As is true in many mission-driven organizations, there is a
real temptation in schools for leaders to want to be all things
COPYRIGHTED M
ATERIAL
real temptation in schools for leaders to want to be all things
to all people. Of course, with limited resources and high
COPYRIGHTED M
ATERIAL
to all people. Of course, with limited resources and high
stakes, the cost of not being strategic is great.
COPYRIGHTED M
ATERIAL
stakes, the cost of not being strategic is great.
The team started by creating an exhaustive list of every-
COPYRIGHTED M
ATERIAL
The team started by creating an exhaustive list of every-
thing that was currently true about the organization: focus
COPYRIGHTED M
ATERIAL
thing that was currently true about the organization: focus
on kindergarten through fifth grade, standardize core pro-
COPYRIGHTED M
ATERIAL
on kindergarten through fifth grade, standardize core pro-
cesses across all schools, headquarters in Texas, slightly
COPYRIGHTED M
ATERIAL
cesses across all schools, headquarters in Texas, slightly
lower staff pay than average public schools, emphasis on COPYRIGHTED M
ATERIAL
lower staff pay than average public schools, emphasis on NOT FOR R
ESALEWe worked with an organization that runs charter schools.
NOT FOR RESALE
We worked with an organization that runs charter schools.
As is true in many mission-driven organizations, there is a
NOT FOR RESALE
As is true in many mission-driven organizations, there is a
real temptation in schools for leaders to want to be all things
NOT FOR RESALE
real temptation in schools for leaders to want to be all things
to all people. Of course, with limited resources and high
NOT FOR RESALE
to all people. Of course, with limited resources and high
stakes, the cost of not being strategic is great.
NOT FOR RESALE
stakes, the cost of not being strategic is great.
The team started by creating an exhaustive list of every-
NOT FOR RESALE
The team started by creating an exhaustive list of every-
thing that was currently true about the organization: focus
NOT FOR RESALE
thing that was currently true about the organization: focus
on kindergarten through fifth grade, standardize core pro-
NOT FOR RESALE
on kindergarten through fifth grade, standardize core pro-
cesses across all schools, headquarters in Texas, slightly NOT FOR RESALE
cesses across all schools, headquarters in Texas, slightly
Patrick Lencioni—The Advantage
La
Discipline 2: Create Clarity
117
Many leadership teams struggle with not wanting to walk away from opportunities that seem basically good and easily justifiable outside the context of having a strategy, but which would distract the
organization and pull it away from its stated intent. Strate-gic anchors give a leadership team the clarity and courage to overcome these distrac-tions and stay on course.
Some people ask why there are three strategic anchors and not four or two or fifteen. Years ago I would have said, “Well, if you think
having four or five works better for your organization, then go for it.” But I’ve come to learn over the years, with the encouragement of clients and con sultants who found it to be true, that there should be three
tion of operations, selective marketing, performance and
measurement driven. They decided that the way to ensure
their success and differentiate from their competition was to
ensure that every decision they made reflected (1) the ability
to leverage standardized processes for efficiency and low
cost, (2) to do only cost-effective, targeted marketing to
parents in the micromarkets they served, and (3) to focus
relentlessly on student achievement and parents’ return on
investment.
Those anchors also gave them the clarity about what
they shouldn’t do like provide transportation services and
special education. As unhappy as they initially felt about
those decisions, the leaders of the company knew that their
ability to succeed in a competitive world meant they had to
make difficult, strategic trade-offs.
Many leadership teams
struggle with not wanting to
walk away from opportunities.
Strategic anchors give them
the clarity and courage to
overcome these distractions
and stay on course.
Lencioni_1522_c04_main.indd 117 1/17/2012 1:47:02 PM
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Many leadership teams struggle with not wanting to walk away
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Many leadership teams struggle with not wanting to walk away from opportunities that seem basically good and easily justifiable
COPYRIGHTED M
ATERIAL
from opportunities that seem basically good and easily justifiable outside the context of having a strategy, but which would distract the
COPYRIGHTED M
ATERIAL
outside the context of having a strategy, but which would distract the
Those anchors also gave them the clarity about what
COPYRIGHTED M
ATERIAL Those anchors also gave them the clarity about what
they shouldn’t do like provide transportation services and
COPYRIGHTED M
ATERIAL
they shouldn’t do like provide transportation services and
special education. As unhappy as they initially felt about
COPYRIGHTED M
ATERIAL
special education. As unhappy as they initially felt about
those decisions, the leaders of the company knew that their
COPYRIGHTED M
ATERIAL
those decisions, the leaders of the company knew that their
ability to succeed in a competitive world meant they had to
COPYRIGHTED M
ATERIAL
ability to succeed in a competitive world meant they had to
make difficult, strategic trade-offs.
COPYRIGHTED M
ATERIAL
make difficult, strategic trade-offs.
COPYRIGHTED M
ATERIAL
COPYRIGHTED M
ATERIAL
Many leadership teams
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Many leadership teams
struggle with not wanting to
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struggle with not wanting to
walk away from opportunities. COPYRIGHTED M
ATERIAL
walk away from opportunities. NOT FOR RESALE
Many leadership teams struggle with not wanting to walk away
NOT FOR RESALE
Many leadership teams struggle with not wanting to walk away from opportunities that seem basically good and easily justifiable
NOT FOR RESALE
from opportunities that seem basically good and easily justifiable outside the context of having a strategy, but which would distract the
NOT FOR RESALE
outside the context of having a strategy, but which would distract the
those decisions, the leaders of the company knew that their
NOT FOR RESALE
those decisions, the leaders of the company knew that their
ability to succeed in a competitive world meant they had to
NOT FOR RESALEability to succeed in a competitive world meant they had to
NOT FOR RESALE
NOT FOR RESALE
Many leadership teams
NOT FOR RESALE
Many leadership teams
struggle with not wanting to NOT FOR RESALE
struggle with not wanting to
walk away from opportunities. NOT FOR RESALE
walk away from opportunities.
Patrick Lencioni—The Advantage
La
The Advantage
118
anchors. I suppose there is something about the idea of triangulation that is at play here or the concept of the three legs of a stool. Maybe three is just the number of things that people can remember or keep in mind at any given time. Whatever the case, I’m convinced that three is almost always the right number of filters that an organization should establish to make their decision making as intentional as possible.
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NOT FOR RESALE
Patrick Lencioni—The Advantage
La
Discipline 2: Create Clarity
119
QUeSTIOn 5: WHAT IS MOST IMPORTAnT, RIgHT nOW?
More than any of the other questions, answering this one will have the most immediate and tangible impact on an organization, probably because it addresses two of the most maddening day-to-day challenges companies face: organizational A.D.D. and silos.
Most organizations I’ve worked with have too many top priorities to achieve the level of focus they need to succeed. Wanting to cover all their bases, they establish a long list of disparate objectives and spread their scarce time, energy, and resources across them all. The result is almost always a lot of initiatives being done in a mediocre way and a failure to accomplish what matters most. This phenomenon is best captured in that wonderful adage, “If everything is important, nothing is.”
When a CEO announces that her company’s top priorities for the year are to grow revenue, improve customer service, introduce more innovative products, cut expenses, and improve market share (we’ve all seen lists like this before), she is almost guaranteeing that none of those objectives is going to get the attention it deserves. And there is an additional consequence beyond the distraction, diffusion, and dilution that this causes: the emergence of departmental silos.
By communicating that the organization has five or seven top priorities, leaders put their well-intentioned employees in the inevit-able position of getting pulled in different directions, sometimes polar opposite ones. Wanting only to succeed, they often find themselves working at cross-purposes with their colleagues in other departments who are left to make their own decisions about which of the many priorities is most important. Leaders should not be surprised to find that the various departments within the organiza-tion are operating as independent units without alignment and cooperation.
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Most organizations I’ve worked with have too many top priorities
COPYRIGHTED M
ATERIAL
Most organizations I’ve worked with have too many top priorities to achieve the level of focus they need to succeed. Wanting to cover
COPYRIGHTED M
ATERIAL to achieve the level of focus they need to succeed. Wanting to cover
all their bases, they establish a long list of disparate objectives and
COPYRIGHTED M
ATERIAL
all their bases, they establish a long list of disparate objectives and spread their scarce time, energy, and resources across them all. The
COPYRIGHTED M
ATERIAL
spread their scarce time, energy, and resources across them all. The result is almost always a lot of initiatives being done in a mediocre way
COPYRIGHTED M
ATERIAL
result is almost always a lot of initiatives being done in a mediocre way and a failure to accomplish what matters most. This phenomenon is
COPYRIGHTED M
ATERIAL
and a failure to accomplish what matters most. This phenomenon is best captured in that wonderful adage, “If everything is important,
COPYRIGHTED M
ATERIAL
best captured in that wonderful adage, “If everything is important,
When a CEO announces that her company’s top priorities for the
COPYRIGHTED M
ATERIAL
When a CEO announces that her company’s top priorities for the
COPYRIGHTED M
ATERIAL
year are to grow revenue, improve customer service, introduce more
COPYRIGHTED M
ATERIAL
year are to grow revenue, improve customer service, introduce more innovative products, cut expenses, and improve market share (we’ve all
COPYRIGHTED M
ATERIAL
innovative products, cut expenses, and improve market share (we’ve all seen lists like this before), she is almost guaranteeing that none of those
COPYRIGHTED M
ATERIAL
seen lists like this before), she is almost guaranteeing that none of those objectives is going to get the attention it deserves. And there is an
COPYRIGHTED M
ATERIAL
objectives is going to get the attention it deserves. And there is an
COPYRIGHTED M
ATERIAL
additional consequence beyond the distraction, diffusion, and dilution
COPYRIGHTED M
ATERIAL
additional consequence beyond the distraction, diffusion, and dilution that this causes: the emergence of departmental silos.COPYRIG
HTED MATERIA
L
that this causes: the emergence of departmental silos.By communicating that the organization has five or seven top COPYRIG
HTED MATERIA
L
By communicating that the organization has five or seven top NOT FOR R
ESALEresult is almost always a lot of initiatives being done in a mediocre way
NOT FOR RESALE
result is almost always a lot of initiatives being done in a mediocre way and a failure to accomplish what matters most. This phenomenon is
NOT FOR RESALEand a failure to accomplish what matters most. This phenomenon is
best captured in that wonderful adage, “If everything is important,
NOT FOR RESALEbest captured in that wonderful adage, “If everything is important,
When a CEO announces that her company’s top priorities for the
NOT FOR RESALE
When a CEO announces that her company’s top priorities for the
NOT FOR RESALE
year are to grow revenue, improve customer service, introduce more
NOT FOR RESALE
year are to grow revenue, improve customer service, introduce more innovative products, cut expenses, and improve market share (we’ve all
NOT FOR RESALE
innovative products, cut expenses, and improve market share (we’ve all seen lists like this before), she is almost guaranteeing that none of those
NOT FOR RESALE
seen lists like this before), she is almost guaranteeing that none of those objectives is going to get the attention it deserves. And there is an
NOT FOR RESALE
objectives is going to get the attention it deserves. And there is an
NOT FOR RESALE
additional consequence beyond the distraction, diffusion, and dilution NOT FOR R
ESALE
additional consequence beyond the distraction, diffusion, and dilution that this causes: the emergence of departmental silos.NOT FOR R
ESALE
that this causes: the emergence of departmental silos.
Patrick Lencioni—The Advantage
La
The Advantage
120
One ThingOf course, to say that there are too many top priorities is something of an oxymoron. After all, for something to be the top priority, it has
to be more important than everything else. And even if there are multiple big priori-ties, ultimately one of those has to be at the very top. The point here is that every orga-nization, if it wants to create a sense of alignment and
focus, must have a single top priority within a given period of time.I came to realize this somewhat by accident. I had been hearing so
many of my clients complain about the silos within their organizations that I decided I should try to solve that problem. So I went out in search of companies where silos were not an issue to learn from them. It was a dry search.
Then I realized that there was a certain category of organization that seemed to rise above the silo problem: emergency responders. These include firefighters on the scene of a fire, emergency room doctors and nurses, soldiers on a rescue mission, and even police officers in the midst of a dangerous situation. Silos just didn’t seem to exist in these groups.
Think about it. You never see two firefighters standing in front of a burning building and arguing about which one of them should be respon-sible for climbing up and saving a child’s life based on the departmental jurisdiction of their respective divisions. And you aren’t going to find two nurses debating which cost center to bill for gauze while a patient in the ER is hemorrhaging blood. And in the midst of a battle, you aren’t going to hear a Marine say, “I’m not going to risk my life. This is a Navy problem.”
Of course, what these groups have in common is a crisis—a clear and present situation of great and immediate consequence. What a crisis provides for an organization, whether that organization is an
Every organization, if it wants
to create a sense of alignment
and focus, must have a single
top priority within a given
period of time.
Lencioni_1522_c04_main.indd 120 1/17/2012 1:47:02 PM
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has to be at the very top. The
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has to be at the very top. The point here is that every orga-
COPYRIGHTED M
ATERIAL point here is that every orga-
nization, if it wants to create
COPYRIGHTED M
ATERIAL
nization, if it wants to create a sense of alignment and
COPYRIGHTED M
ATERIAL
a sense of alignment and focus, must have a single top priority within a given period of time.
COPYRIGHTED M
ATERIAL
focus, must have a single top priority within a given period of time.I came to realize this somewhat by accident. I had been hearing so
COPYRIGHTED M
ATERIAL
I came to realize this somewhat by accident. I had been hearing so many of my clients complain about the silos within their organizations
COPYRIGHTED M
ATERIAL
many of my clients complain about the silos within their organizations that I decided I should try to solve that problem. So I went out in
COPYRIGHTED M
ATERIAL
that I decided I should try to solve that problem. So I went out in search of companies where silos were not an issue to learn from them.
COPYRIGHTED M
ATERIAL
search of companies where silos were not an issue to learn from them.
Then I realized that there was a certain category of organization that
COPYRIGHTED M
ATERIAL
Then I realized that there was a certain category of organization that seemed to rise above the silo problem: emergency responders. These
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seemed to rise above the silo problem: emergency responders. These include firefighters on the scene of a fire, emergency room doctors and
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include firefighters on the scene of a fire, emergency room doctors and nurses, soldiers on a rescue mission, and even police officers in the midst
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nurses, soldiers on a rescue mission, and even police officers in the midst of a dangerous situation. Silos just didn’t seem to exist in these groups.COPYRIG
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of a dangerous situation. Silos just didn’t seem to exist in these groups.Think about it. You never see two firefighters standing in front of a COPYRIG
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Think about it. You never see two firefighters standing in front of a NOT FOR R
ESALEfocus, must have a single top priority within a given period of time.
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focus, must have a single top priority within a given period of time.I came to realize this somewhat by accident. I had been hearing so
NOT FOR RESALEI came to realize this somewhat by accident. I had been hearing so
many of my clients complain about the silos within their organizations
NOT FOR RESALEmany of my clients complain about the silos within their organizations
that I decided I should try to solve that problem. So I went out in
NOT FOR RESALE
that I decided I should try to solve that problem. So I went out in search of companies where silos were not an issue to learn from them.
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search of companies where silos were not an issue to learn from them.
Then I realized that there was a certain category of organization that
NOT FOR RESALE
Then I realized that there was a certain category of organization that seemed to rise above the silo problem: emergency responders. These
NOT FOR RESALE
seemed to rise above the silo problem: emergency responders. These include firefighters on the scene of a fire, emergency room doctors and
NOT FOR RESALE
include firefighters on the scene of a fire, emergency room doctors and nurses, soldiers on a rescue mission, and even police officers in the midst NOT FOR R
ESALE
nurses, soldiers on a rescue mission, and even police officers in the midst of a dangerous situation. Silos just didn’t seem to exist in these groups.NOT FOR R
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of a dangerous situation. Silos just didn’t seem to exist in these groups.
Patrick Lencioni—The Advantage
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emergency responder accustomed to dealing with crises or a more tra-ditional organization that finds itself temporarily in the midst of one, is a rallying cry, a single area of focus around which there is no confu-sion or disagreement.
The Thematic Goal (a.k.a. The Rallying Cry)As I thought about the power of a rallying cry, I wondered why all orga-nizations couldn’t replicate the benefits of achieving that kind of focus (short of creating false crises, which is never a good idea). And I decided that there is no reason that every organization couldn’t have a rallying cry, even when it is not in crisis. I called this rallying cry “a thematic goal” because it needs to be understood within the context of the orga-nization’s other goals, at the top of the list. And so, the thematic goal is the answer to our question, What is most important, right now?
I introduced this concept in one of my business fables, Silos, Poli-tics, and Turf Wars, which may be helpful for readers wanting to see a thorough and vivid description of the thematic goal concept.5 Before I provide a few real world examples, I’ll clearly define what a thematic goal is so that all of this makes sense:
A thematic goal is . . . • Singular. One thing has to be most important, even if there are
other worthy goals under consideration.• Qualitative. The thematic goal should almost never be
established with specific numbers attached to it. The opportunity for putting quantitative measures around a thematic goal comes later, and it should not be done too early because it can too narrowly prescribe what needs to be achieved and limit people’s ability to rally around it.
• Temporary. A thematic goal must be achievable within a clear time boundary, almost always between three and twelve months. Anything shorter than three months feels like a fire drill, and
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nizations couldn’t replicate the benefits of achieving that kind of focus
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nizations couldn’t replicate the benefits of achieving that kind of focus (short of creating false crises, which is never a good idea). And I decided
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that there is no reason that every organization couldn’t have a rallying
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that there is no reason that every organization couldn’t have a rallying cry, even when it is not in crisis. I called this rallying cry “a thematic
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cry, even when it is not in crisis. I called this rallying cry “a thematic goal” because it needs to be understood within the context of the orga-
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goal” because it needs to be understood within the context of the orga-nization’s other goals, at the top of the list. And so, the thematic goal is
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nization’s other goals, at the top of the list. And so, the thematic goal is What is most important, right now?
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What is most important, right now?I introduced this concept in one of my business fables,
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I introduced this concept in one of my business fables, , which may be helpful for readers wanting to see a
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, which may be helpful for readers wanting to see a thorough and vivid description of the thematic goal concept.
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thorough and vivid description of the thematic goal concept.provide a few real world examples, I’ll clearly define what a thematic
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provide a few real world examples, I’ll clearly define what a thematic goal is so that all of this makes sense:
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goal is so that all of this makes sense:
A thematic goal is
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A thematic goal is
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SingularCOPYRIGHTED M
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Singularother worthy goals under consideration.COPYRIG
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other worthy goals under consideration.NOT FOR R
ESALEgoal” because it needs to be understood within the context of the orga-
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goal” because it needs to be understood within the context of the orga-nization’s other goals, at the top of the list. And so, the thematic goal is
NOT FOR RESALEnization’s other goals, at the top of the list. And so, the thematic goal is
What is most important, right now?
NOT FOR RESALEWhat is most important, right now?
I introduced this concept in one of my business fables,
NOT FOR RESALE
I introduced this concept in one of my business fables, , which may be helpful for readers wanting to see a
NOT FOR RESALE
, which may be helpful for readers wanting to see a thorough and vivid description of the thematic goal concept.
NOT FOR RESALE
thorough and vivid description of the thematic goal concept.provide a few real world examples, I’ll clearly define what a thematic
NOT FOR RESALE
provide a few real world examples, I’ll clearly define what a thematic goal is so that all of this makes sense:
NOT FOR RESALE
goal is so that all of this makes sense:
.NOT FOR R
ESALE
. .NOT FOR R
ESALE
.One thing has to be NOT FOR R
ESALE
One thing has to be
Patrick Lencioni—The Advantage
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anything longer than twelve invites procrastination and skepticism about whether the goal will endure. (I’ll wait a few months to focus on that because it will probably change, and, who knows, I might not even be working here then.)
• Shared across the leadership team. When executives agree on their top priority, they must take collective responsibility for achieving it, even if it seems that the nature of the goal falls within one or two of the executives’ regular areas of ownership.
The best way to identify a thematic goal is to answer the question, If we accomplish only one thing during the next x months, what would it be? In other words, What must be true x months from now for us to be able to look back and say with any credibility that we had a good period? These questions provide a critical level of focus for leaders who are being pulled in numerous directions.
Once a team has agreed on its thematic goal, it should resist the temptation to run out and communicate that goal right away or make a big announcement about it. For one, the thematic goal alone is not enough. It needs further detail or it will come across as an empty cam-paign slogan. I’ll get to that shortly.
Second, the primary purpose of the thematic goal is not necessarily to rally all the troops within the organization, as helpful as that may seem. More than anything else, it is to provide the leadership team itself with clarity around how to spend its time, energy, and resources. Yes, in most cases, it will be appropriate for leaders to eventually commu-nicate that goal to employees at large or to some subgroup of them. In rare cases, when the thematic goal revolves around a confidential matter like a potential merger or layoff, it will not. That will depend on the nature of the goal and the extent to which it involves a concerted, wide-reaching effort throughout the company. But even if the leader-ship team never announces the thematic goal to anyone and uses it only to guide its own actions, it will have served its purpose.
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within one or two of the executives’ regular areas of ownership.
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within one or two of the executives’ regular areas of ownership.
The best way to identify a thematic goal is to answer the question,
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The best way to identify a thematic goal is to answer the question, If we accomplish only one thing during the next x months, what would it
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If we accomplish only one thing during the next x months, what would it What must be true x months from now for us to be
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What must be true x months from now for us to be able to look back and say with any credibility that we had a good period?
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able to look back and say with any credibility that we had a good period?These questions provide a critical level of focus for leaders who are being
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These questions provide a critical level of focus for leaders who are being
Once a team has agreed on its thematic goal, it should resist the
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Once a team has agreed on its thematic goal, it should resist the temptation to run out and communicate that goal right away or make
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temptation to run out and communicate that goal right away or make
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a big announcement about it. For one, the thematic goal alone is not
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a big announcement about it. For one, the thematic goal alone is not enough. It needs further detail or it will come across as an empty cam-
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enough. It needs further detail or it will come across as an empty cam-paign slogan. I’ll get to that shortly.
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paign slogan. I’ll get to that shortly.Second, the primary purpose of the thematic goal is not necessarily
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Second, the primary purpose of the thematic goal is not necessarily
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to rally all the troops within the organization, as helpful as that may COPYRIGHTED M
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to rally all the troops within the organization, as helpful as that may seem. More than anything else, it is to provide the leadership team itself COPYRIG
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seem. More than anything else, it is to provide the leadership team itself NOT FOR R
ESALEWhat must be true x months from now for us to be
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What must be true x months from now for us to be able to look back and say with any credibility that we had a good period?
NOT FOR RESALEable to look back and say with any credibility that we had a good period?
These questions provide a critical level of focus for leaders who are being
NOT FOR RESALEThese questions provide a critical level of focus for leaders who are being
Once a team has agreed on its thematic goal, it should resist the
NOT FOR RESALE
Once a team has agreed on its thematic goal, it should resist the temptation to run out and communicate that goal right away or make
NOT FOR RESALE
temptation to run out and communicate that goal right away or make
NOT FOR RESALE
a big announcement about it. For one, the thematic goal alone is not
NOT FOR RESALE
a big announcement about it. For one, the thematic goal alone is not enough. It needs further detail or it will come across as an empty cam-
NOT FOR RESALE
enough. It needs further detail or it will come across as an empty cam-paign slogan. I’ll get to that shortly.
NOT FOR RESALE
paign slogan. I’ll get to that shortly.Second, the primary purpose of the thematic goal is not necessarily NOT FOR R
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Second, the primary purpose of the thematic goal is not necessarily to rally all the troops within the organization, as helpful as that may NOT FOR R
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to rally all the troops within the organization, as helpful as that may
Patrick Lencioni—The Advantage
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Leaders Without HatsRegardless of how it is communicated within the larger organization, it’s worth repeating that every thematic goal must become the collective responsibility of the leadership team. This is true even if the goal doesn’t seem to directly involve the departments that some of those executives lead. To understand what this means, it’s helpful to think about members of the executive team going into each of their meetings without their departmental titles. Or as I like to say, they need to take off their departmental hats and put on generic corporate ones. I explored this basic idea in my description of team number one in the “Build a Cohesive Leadership Team” section, but it’s certainly worth repeating here.
On a cohesive team, leaders are not there simply to represent the departments that they lead and manage but rather to solve problems that stand in the way of achieving success for the whole organization. That means they’ll readily offer up their departments’ resources when it serves the greater good of the team, and they’ll take an active interest in the thematic goal regardless of how closely related it is to their func-tional area. And while individual team members will certainly have expertise and responsibility in different parts of the business, they will not limit their input and participation to those areas alone. Unfortu-nately, on many teams, this happens regularly.
Like the representatives of Congress or the United Nations, too many leaders come to meetings with the unspoken assumption that they are there to lobby for and defend their constituents. When they see that the agenda for a staff meeting has little if anything pertaining to their world, they do their best to avoid conversation in the hope that the meeting will end quickly. Or they try to sneak in some busywork to attend to or perhaps even shift the focus of the meeting to something that involves them and their department.
This is a perfect recipe for dysfunction and mediocrity. And while I’ll address the subject of meetings later in this book, let me make it clear that
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without their departmental titles. Or as I like to say, they need to take
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without their departmental titles. Or as I like to say, they need to take off their departmental hats and put on generic corporate ones. I explored
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ATERIAL off their departmental hats and put on generic corporate ones. I explored
this basic idea in my description of team number one in the “Build a
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this basic idea in my description of team number one in the “Build a Cohesive Leadership Team” section, but it’s certainly worth repeating
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Cohesive Leadership Team” section, but it’s certainly worth repeating
On a cohesive team, leaders are not there simply to represent the
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On a cohesive team, leaders are not there simply to represent the departments that they lead and manage but rather to solve problems
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departments that they lead and manage but rather to solve problems that stand in the way of achieving success for the whole organization.
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that stand in the way of achieving success for the whole organization. That means they’ll readily offer up their departments’ resources when
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That means they’ll readily offer up their departments’ resources when
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it serves the greater good of the team, and they’ll take an active interest
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it serves the greater good of the team, and they’ll take an active interest in the thematic goal regardless of how closely related it is to their func-
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in the thematic goal regardless of how closely related it is to their func-tional area. And while individual team members will certainly have
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tional area. And while individual team members will certainly have expertise and responsibility in different parts of the business, they will
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expertise and responsibility in different parts of the business, they will
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not limit their input and participation to those areas alone. Unfortu-
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not limit their input and participation to those areas alone. Unfortu-nately, on many teams, this happens regularly.COPYRIG
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nately, on many teams, this happens regularly.Like the representatives of Congress or the United Nations, too COPYRIG
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Like the representatives of Congress or the United Nations, too NOT FOR R
ESALEOn a cohesive team, leaders are not there simply to represent the
NOT FOR RESALEOn a cohesive team, leaders are not there simply to represent the
departments that they lead and manage but rather to solve problems
NOT FOR RESALEdepartments that they lead and manage but rather to solve problems
that stand in the way of achieving success for the whole organization.
NOT FOR RESALE
that stand in the way of achieving success for the whole organization. That means they’ll readily offer up their departments’ resources when
NOT FOR RESALE
That means they’ll readily offer up their departments’ resources when
NOT FOR RESALE
it serves the greater good of the team, and they’ll take an active interest
NOT FOR RESALE
it serves the greater good of the team, and they’ll take an active interest in the thematic goal regardless of how closely related it is to their func-
NOT FOR RESALE
in the thematic goal regardless of how closely related it is to their func-tional area. And while individual team members will certainly have
NOT FOR RESALE
tional area. And while individual team members will certainly have expertise and responsibility in different parts of the business, they will
NOT FOR RESALE
expertise and responsibility in different parts of the business, they will
NOT FOR RESALE
not limit their input and participation to those areas alone. Unfortu-NOT FOR RESALE
not limit their input and participation to those areas alone. Unfortu-nately, on many teams, this happens regularly.NOT FOR R
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nately, on many teams, this happens regularly.
Patrick Lencioni—The Advantage
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The Advantage
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it is the lack of a defined, compelling rallying cry or thematic goal that allows most bad staff meetings to happen, which enables poor decision making.
The benefits of establishing an overarching thematic goal are enor-mous. Divisional rivalry and infighting become much less likely as leaders stop seeing their primary responsibility as solely running their own departments. Focus during meetings gets easier as unimportant and ancillary topics are guiltlessly cast aside. Paralysis around resource allocation can be broken due to clarity around what deserves the most energy and attention. And the need to referee political battles, not only at the executive level but deeper in the organization, diminishes greatly as people better understand the trade-offs that need to be made and the rationale for them.
Defining ObjectivesRealizing the benefits of having a clear and collective focus requires more than merely identifying the thematic goal. That goal must then be further clarified by defining the objectives which will make accom-plishing it possible. I call these, for obvious reasons, defining objectives. (I originally wanted to call them “big buckets of stuff” but was over-ruled by my wiser colleagues.)
Defining objectives are the general categories of activity required to achieve the thematic goal. Like the thematic goal, defining objectives must be qualitative, temporary, and shared by the leadership team. They provide a level of specificity so that the thematic goal isn’t merely a slogan but rather a specific and understandable call to action. In most cases, there are between four and six defining objectives, depending on the nature of the goal itself.
Mail Priorities
We were working with the leadership team of a large freight
and logistics company that was doing very well. However,
among the various challenges that the leaders were discuss-
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allocation can be broken due to clarity around what deserves the most
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allocation can be broken due to clarity around what deserves the most energy and attention. And the need to referee political battles, not only
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at the executive level but deeper in the organization, diminishes greatly
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at the executive level but deeper in the organization, diminishes greatly as people better understand the trade-offs that need to be made and
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as people better understand the trade-offs that need to be made and
Realizing the benefits of having a clear and collective focus requires
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Realizing the benefits of having a clear and collective focus requires more than merely identifying the thematic goal. That goal must then
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more than merely identifying the thematic goal. That goal must then be further clarified by defining the objectives which will make accom-
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be further clarified by defining the objectives which will make accom-plishing it possible. I call these, for obvious reasons, defining objectives.
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plishing it possible. I call these, for obvious reasons, defining objectives.
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(I originally wanted to call them “big buckets of stuff” but was over-
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(I originally wanted to call them “big buckets of stuff” but was over-ruled by my wiser colleagues.)
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ruled by my wiser colleagues.)Defining objectives
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Defining objectives
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achieve the thematic goal. Like the thematic goal, defining objectives COPYRIGHTED M
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achieve the thematic goal. Like the thematic goal, defining objectives must be qualitative, temporary, and shared by the leadership team. They COPYRIG
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must be qualitative, temporary, and shared by the leadership team. They NOT FOR R
ESALERealizing the benefits of having a clear and collective focus requires
NOT FOR RESALE
Realizing the benefits of having a clear and collective focus requires more than merely identifying the thematic goal. That goal must then
NOT FOR RESALE
more than merely identifying the thematic goal. That goal must then be further clarified by defining the objectives which will make accom-
NOT FOR RESALE
be further clarified by defining the objectives which will make accom-plishing it possible. I call these, for obvious reasons, defining objectives.
NOT FOR RESALE
plishing it possible. I call these, for obvious reasons, defining objectives.
NOT FOR RESALE
(I originally wanted to call them “big buckets of stuff” but was over-
NOT FOR RESALE
(I originally wanted to call them “big buckets of stuff” but was over-ruled by my wiser colleagues.)
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ruled by my wiser colleagues.)Defining objectives
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Defining objectives are the general categories of activity required to NOT FOR R
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are the general categories of activity required to Defining objectives are the general categories of activity required to Defining objectivesNOT FOR R
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Defining objectives are the general categories of activity required to Defining objectivesachieve the thematic goal. Like the thematic goal, defining objectives NOT FOR R
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achieve the thematic goal. Like the thematic goal, defining objectives
Patrick Lencioni—The Advantage
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ing was a problem with having no excess capacity to take
on the growing volume of business that was coming their
way. After discussing this and various other topics compet-
ing for their attention, we posed the big question: If you
accomplish just one thing in the next nine months, what
should it be?
Within just a few minutes, the team agreed that “if we
don’t solve the capacity issue, we’re in huge trouble.”
So “solve the capacity problem” became their thematic
goal. Not sexy, but clear and correct. And just as important,
there was no ambiguity that this thematic goal would become
the top priority of every team member, regardless of their
specific functional responsibilities.
The next step was to define exactly what they would
need to do to address the problem and achieve the thematic
goal. After less than an hour of discussion and debate, they
came up with the following defining objectives:
Thematic Goal
Defining ObjectivesAccurately assessand forecast thecapacity shortfall
Hire and trainmore employees
Solve the capacity problem
Acquire additionalequipment
Expand and modifycurrent facilities
Better utilizesystems and
software
(We use the graphic above to depict thematic goals and
defining objectives because it is easier for leaders to remem-
ber and display for future reference.)
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ATERIAL So “solve the capacity problem” became their thematic
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goal. Not sexy, but clear and correct. And just as important,
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ATERIAL goal. Not sexy, but clear and correct. And just as important,
there was no ambiguity that this thematic goal would become
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there was no ambiguity that this thematic goal would become
the top priority of every team member, regardless of their
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the top priority of every team member, regardless of their
The next step was to define exactly what they would
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The next step was to define exactly what they would
need to do to address the problem and achieve the thematic
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need to do to address the problem and achieve the thematic
goal. After less than an hour of discussion and debate, they
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goal. After less than an hour of discussion and debate, they
came up with the following defining objectives:
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came up with the following defining objectives:
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Thematic Goal
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Thematic Goal
NOT FOR RESALEThe next step was to define exactly what they would
NOT FOR RESALEThe next step was to define exactly what they would
need to do to address the problem and achieve the thematic
NOT FOR RESALEneed to do to address the problem and achieve the thematic
goal. After less than an hour of discussion and debate, they
NOT FOR RESALE
goal. After less than an hour of discussion and debate, they
came up with the following defining objectives:
NOT FOR RESALE
came up with the following defining objectives:
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Thematic Goal
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Thematic Goal
Patrick Lencioni—The Advantage
La
The Advantage
126
Standard Operating ObjectivesOnce teams identify their defining objectives, they have to take on the next, and last, step in the thematic goal process: identifying their stan-dard operating objectives. These are the ongoing and relatively straight-forward metrics and areas of responsibility that any leadership team must maintain in order to keep the organization afloat. I like to refer to these responsibilities as the “leaders’ day jobs.”
Coming up with standard operating objectives is not terribly difficult because they are usually somewhat obvious. In for-profit companies, they usually include categories like revenue, expenses, cus-tomer retention or satisfaction, product quality, cash flow, morale, or any other issues specific to a given industry. In a hotel, it would certainly include room occupancy, in a school it would include graduation rates and test scores, and in a church it might well include attendance and financial giving. Whatever the case, few leadership teams need more than fifteen minutes to identify and agree on their standard operating objectives, which are already a big part of their daily focus.
In the previous example, the freight company’s standard operating objectives would include revenue, expenses, on-time deliveries, cus-tomer satisfaction, new customer acquisition, safety, and morale.
As obvious as this may seem in retrospect, had the
executive team not had this conversation, they would have
gone back to work and continued working on whatever
projects and responsibilities they usually attended to, treat-
ing the capacity problem as just another of a long list of
important objectives. Instead, they ended the conversation
ready to talk about what they should stop working on, and
how they would reallocate less-critical resources in the orga-
nization to accomplish the thematic goal.
But the team wasn’t done.
Lencioni_1522_c04_main.indd 126 1/17/2012 1:47:03 PM
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Once teams identify their defining objectives, they have to take on the
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Once teams identify their defining objectives, they have to take on the next, and last, step in the thematic goal process: identifying their stan-
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next, and last, step in the thematic goal process: identifying their stan-dard operating objectives. These are the ongoing and relatively straight-
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dard operating objectives. These are the ongoing and relatively straight-forward metrics and areas of responsibility that any leadership team
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forward metrics and areas of responsibility that any leadership team must maintain in order to keep the organization afloat. I like to refer
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must maintain in order to keep the organization afloat. I like to refer to these responsibilities as the “leaders’ day jobs.”
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to these responsibilities as the “leaders’ day jobs.”Coming up with standard operating objectives is not terribly
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Coming up with standard operating objectives is not terribly difficult because they are usually somewhat obvious. In for-profit
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difficult because they are usually somewhat obvious. In for-profit
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companies, they usually include categories like revenue, expenses, cus-
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companies, they usually include categories like revenue, expenses, cus-tomer retention or satisfaction, product quality, cash flow, morale, COPYRIG
HTED MATERIA
L
tomer retention or satisfaction, product quality, cash flow, morale, or any other issues specific to a given industry. In a hotel, it would COPYRIG
HTED MATERIA
L
or any other issues specific to a given industry. In a hotel, it would NOT FOR R
ESALEOnce teams identify their defining objectives, they have to take on the
NOT FOR RESALEOnce teams identify their defining objectives, they have to take on the
next, and last, step in the thematic goal process: identifying their stan-
NOT FOR RESALEnext, and last, step in the thematic goal process: identifying their stan-
dard operating objectives. These are the ongoing and relatively straight-
NOT FOR RESALE
dard operating objectives. These are the ongoing and relatively straight-forward metrics and areas of responsibility that any leadership team
NOT FOR RESALE
forward metrics and areas of responsibility that any leadership team must maintain in order to keep the organization afloat. I like to refer
NOT FOR RESALE
must maintain in order to keep the organization afloat. I like to refer to these responsibilities as the “leaders’ day jobs.”
NOT FOR RESALE
to these responsibilities as the “leaders’ day jobs.”Coming up with standard operating objectives is not terribly
NOT FOR RESALE
Coming up with standard operating objectives is not terribly difficult because they are usually somewhat obvious. In for-profit
NOT FOR RESALE
difficult because they are usually somewhat obvious. In for-profit
NOT FOR RESALE
companies, they usually include categories like revenue, expenses, cus-NOT FOR RESALE
companies, they usually include categories like revenue, expenses, cus-tomer retention or satisfaction, product quality, cash flow, morale, NOT FOR R
ESALE
tomer retention or satisfaction, product quality, cash flow, morale,
Patrick Lencioni—The Advantage
La
Discipline 2: Create Clarity
127
My small consulting firm tracks the following standard operating objec-tives: financial strength (revenue and expenses are included), staff morale, book sales, product sales, consulting pipeline, speaking pipe-line, client satisfaction, and stewardship. Every company will have a slightly different set of standard objectives that it tracks, but it will be relatively predictable and consistent depending on the industry and it won’t change much over time.
It’s important to note that sometimes a company’s thematic goal will be one of the items that appears on its standard operating list. For instance, a hotel will regularly track occupancy, but in a given period that issue may become its most critical challenge. So the leaders would elevate it to the top of their list and make “increase occupancy” their thematic goal for a period of time. And if the freight company we worked with found that accidents and workers’ compensation claims were affecting its financial viability, the leaders might well make “improve safety” their thematic goal for a period of time, even though it is always on their standard operating objec tives list.
That’s not to say that most thematic goals come from the standard list, just that it is sometimes what is called for. And, of course, once the thematic goal has been achieved, the item goes back on the standard list.
The One-Page ModelDifferent kinds of organizations have different thematic goals, defining objectives, and standard operating objectives for a variety of reasons. However, what they all have in common is that their goals fit on a single sheet of paper.
Credit Card focus
One of our consultants worked with an affiliate credit card
company that was constantly developing partnerships with
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It’s important to note that sometimes a company’s thematic
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It’s important to note that sometimes a company’s thematic goal will be one of the items that appears on its standard operating
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list. For instance, a hotel will regularly track occupancy, but in a given
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list. For instance, a hotel will regularly track occupancy, but in a given period that issue may become its most critical challenge. So the leaders
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period that issue may become its most critical challenge. So the leaders would elevate it to the top of their list and make “increase occupancy”
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would elevate it to the top of their list and make “increase occupancy” their thematic goal for a period of time. And if the freight company
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their thematic goal for a period of time. And if the freight company we worked with found that accidents and workers’ compensation claims
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we worked with found that accidents and workers’ compensation claims were affecting its financial viability, the leaders might well make
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were affecting its financial viability, the leaders might well make
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“improve safety” their thematic goal for a period of time, even though
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“improve safety” their thematic goal for a period of time, even though it is always on their standard operating objec
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it is always on their standard operating objecThat’s not to say that most thematic goals come from the
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That’s not to say that most thematic goals come from the standard list, just that it is sometimes what is called for. And, of course,
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standard list, just that it is sometimes what is called for. And, of course,
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once the thematic goal has been achieved, the item goes back on the
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once the thematic goal has been achieved, the item goes back on the standard list.
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standard list.
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The One-Page ModelNOT FOR R
ESALEwould elevate it to the top of their list and make “increase occupancy”
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would elevate it to the top of their list and make “increase occupancy” their thematic goal for a period of time. And if the freight company
NOT FOR RESALEtheir thematic goal for a period of time. And if the freight company
we worked with found that accidents and workers’ compensation claims
NOT FOR RESALEwe worked with found that accidents and workers’ compensation claims
were affecting its financial viability, the leaders might well make
NOT FOR RESALE
were affecting its financial viability, the leaders might well make
NOT FOR RESALE
“improve safety” their thematic goal for a period of time, even though
NOT FOR RESALE
“improve safety” their thematic goal for a period of time, even though it is always on their standard operating objec
NOT FOR RESALE
it is always on their standard operating objecThat’s not to say that most thematic goals come from the
NOT FOR RESALE
That’s not to say that most thematic goals come from the standard list, just that it is sometimes what is called for. And, of course,
NOT FOR RESALE
standard list, just that it is sometimes what is called for. And, of course,
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once the thematic goal has been achieved, the item goes back on the
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once the thematic goal has been achieved, the item goes back on the
Patrick Lencioni—The Advantage
La
The Advantage
128
organizations to co-brand their credit cards with them. They
brought on a large and strategically critical new partner, an
airline that was going to try to migrate as many of its fre-
quent flyer mileage credit cards over to our client.
The executives felt themselves being pulled in various
directions and pressured to constantly bring in new business,
even while they lamented the possibility of failing to ade-
quately service the new airline partner. Finally, they agreed
on a thematic goal that would provide them with the focus
and alignment they needed:
Thematic Goal
Defining Objectives
Make the newairline partnership work
Hire an executiveto focus exclusivelyon airline partner
Train airlineemployees
and other channelsto promote new card
Develop and marketnew credit card toairline customers
Establish airline-specific weekly
progress update
Refocus executivetime and attention
on airline
Partnersatisfaction
Accountsreceivable/default
rate
Standard OperatingObjectives
CustomersatisfactionAccount retentionRevenue/
expenses
Walking away with a single sheet of paper that lists a team’s the-matic goal, the defining objectives, and the standard objectives would give leaders the clear focus they need to align their actions and avoid distraction.
Lencioni_1522_c04_main.indd 128 1/17/2012 1:47:03 PM
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Make the new
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Make the newairline partnership work
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airline partnership work
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Standard OperatingCOPYRIGHTED M
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NOT FOR RESALEairline partnership work
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Train airline
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Train airline
and other channels
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and other channelsand other channels
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and other channelsand other channels
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and other channels
Establish airline-
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specific weeklyprogress update
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Patrick Lencioni—The Advantage
La
Discipline 2: Create Clarity
129
Thematic Goal
Defining Objectives
Rebuild credibilitywithin the business
Improve proactivecommunication withkey stakeholders,
within and outside IT
Eliminateintradepartmental
silos and confusion
Identify plan fornew strategic
initiatives
Deliver on currentkey commitments
Budget withinplan
On-time projectdelivery
Standard OperatingObjectives
Business unitsatisfaction and
alignmentNetwork securitySystem reliability
and uptime
Staff moraleand development
Shedding a Reputation
We worked with the leadership team of an IT organization
in a huge health care company. For years, IT had been
viewed poorly within the organization, despite the efforts of
the CIO and her team to avoid mistakes and defend the
department when things didn’t go well. The department had
been criticized for failing to deliver projects on time, not
providing levels of service adequate for the lines of business,
and being generally unresponsive to the needs of the
company.
When the team learned about the thematic goal concept,
they decided that it was time to rally around the goal of
finally shedding their reputation for underperformance. Their
thematic goal image looked like this:
Lencioni_1522_c04_main.indd 129 1/17/2012 1:47:03 PM
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providing levels of service adequate for the lines of business,
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providing levels of service adequate for the lines of business,
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Thematic Goal
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Thematic Goal
Defining Objectives
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Defining Objectives
When the team learned about the thematic goal concept,
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When the team learned about the thematic goal concept,
they decided that it was time to rally around the goal of
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they decided that it was time to rally around the goal of
finally shedding their reputation for underperformance. Their
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finally shedding their reputation for underperformance. Their
thematic goal image looked like this:
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thematic goal image looked like this:
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Defining ObjectivesNOT FOR RESALE
Defining Objectives
Rebuild credibility
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Rebuild credibility
Deliver on currentNOT FOR RESALE
Deliver on currentDeliver on currentNOT FOR RESALE
Deliver on currentDeliver on currentNOT FOR RESALE
Deliver on currentDeliver on currentNOT FOR RESALE
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Deliver on current
they decided that it was time to rally around the goal of
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they decided that it was time to rally around the goal of
finally shedding their reputation for underperformance. Their
NOT FOR RESALEfinally shedding their reputation for underperformance. Their
Patrick Lencioni—The Advantage
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The Advantage
130
The length of time that a thematic goal should live (within the 3–12 month time frame) is up to the leadership team and depends on the reality of how much time a given issue requires addressing. Having said that, the size of the organization and the nature of its business will have a big impact on the time period during which a thematic goal endures. Small companies and start-ups usually find that shorter time periods are more appropriate because they can get more done in less time and they have less cushion and permission to make mistakes. On the other side of the equation, large organizations, especially schools and government entities, usually have longer planning cycles and tend toward lengthier thematic goals.
As the time frame for accomplishing a thematic goal grows near, a leadership team will want to start thinking about the next one. Of course, a measure of flexibility is important. If a team makes faster progress than expected toward a thematic goal, then they should come up with their next one sooner. And if, after a few weeks or months, they decide that the thematic goal is no longer appropriate or that something else has become more important, they should certainly shift to a new one.
Remember, the purpose of having a thematic goal is not to restrict the organization’s flexibility but rather to rally its leaders around what they decide they want to achieve.
Within a year of establishing this thematic goal frame-
work, the team turned around its reputation internally, as
measured by customer surveys and stakeholder feedback
from executives. What is more, for the subsequent eight
years, the department has been able to maintain its new
reputation as successful and reliable. The CIO explained, “It
wasn’t until we made this our explicit top priority and got
clear about exactly what we had to do that we were able to
rally together and turn things around.”
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The length of time that a thematic goal should live (within the
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The length of time that a thematic goal should live (within the 3–12 month time frame) is up to the leadership team and depends on
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3–12 month time frame) is up to the leadership team and depends on the reality of how much time a given issue requires addressing. Having
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the reality of how much time a given issue requires addressing. Having said that, the size of the organization and the nature of its business will
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said that, the size of the organization and the nature of its business will have a big impact on the time period during which a thematic goal
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have a big impact on the time period during which a thematic goal endures. Small companies and start-ups usually find that shorter time
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endures. Small companies and start-ups usually find that shorter time periods are more appropriate because they can get more done in less
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periods are more appropriate because they can get more done in less time and they have less cushion and permission to make mistakes. On
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time and they have less cushion and permission to make mistakes. On
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the other side of the equation, large organizations, especially schools
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the other side of the equation, large organizations, especially schools and government entities, usually have longer planning cycles and tend
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and government entities, usually have longer planning cycles and tend toward lengthier thematic goals.
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toward lengthier thematic goals.As the time frame for accomplishing a thematic goal grows near, a COPYRIG
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As the time frame for accomplishing a thematic goal grows near, a leadership team will want to start thinking about the next one. Of COPYRIG
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leadership team will want to start thinking about the next one. Of NOT FOR R
ESALE3–12 month time frame) is up to the leadership team and depends on
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3–12 month time frame) is up to the leadership team and depends on the reality of how much time a given issue requires addressing. Having
NOT FOR RESALEthe reality of how much time a given issue requires addressing. Having
said that, the size of the organization and the nature of its business will
NOT FOR RESALEsaid that, the size of the organization and the nature of its business will
have a big impact on the time period during which a thematic goal
NOT FOR RESALE
have a big impact on the time period during which a thematic goal endures. Small companies and start-ups usually find that shorter time
NOT FOR RESALE
endures. Small companies and start-ups usually find that shorter time periods are more appropriate because they can get more done in less
NOT FOR RESALE
periods are more appropriate because they can get more done in less time and they have less cushion and permission to make mistakes. On
NOT FOR RESALE
time and they have less cushion and permission to make mistakes. On
NOT FOR RESALE
the other side of the equation, large organizations, especially schools
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the other side of the equation, large organizations, especially schools and government entities, usually have longer planning cycles and tend
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and government entities, usually have longer planning cycles and tend toward lengthier thematic goals.
NOT FOR RESALE
toward lengthier thematic goals.As the time frame for accomplishing a thematic goal grows near, a NOT FOR R
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As the time frame for accomplishing a thematic goal grows near, a
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Discipline 2: Create Clarity
131
Once a leadership team has identified its thematic goal, defining objectives, and standard operating objectives, it has one last question to answer, and it’s probably the easiest of them all.
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QUeSTIOn 6: WHO MUST DO WHAT?
Although I just made it clear that executives must come to meetings without their departmental hats on and that they must be prepared to engage in achieving the thematic goal of the team regardless of their areas of expertise, at some point the leaders need to clearly and unam-biguously stipulate what their respective responsibilities are when they go back to work to do their day jobs. The fact is, every organization of any size needs some division of labor, and that begins at the very top. Without clarity around that division of labor, the potential for politics and infighting, even among well-intentioned people, is great.
There is not a great deal to be said about this particular question, aside from warning leadership teams not to take it for granted. Although there is often clarity among executives in most organizations about who does what on the team, making assumptions about that clarity can lead to surprising and unnecessary problems.
Part of the challenge is that most organizations have adopted conventional titles for their various departments. Depending on the industry, most have some combination of many of the following roles: head of sales, marketing, finance, operations, human resources, engi-neering, IT, customer service, and legal. And while those functional descriptions are pretty good indicators of the general responsibilities of members of the leadership team, I’m always a little surprised when I ask them all to quietly write down their descriptions in some level of detail.
Often members of the team will be surprised at what they learn from their colleagues during this short exercise. Sometimes two people claim to be responsible for the same task or discipline: “Hey, I have business development on my list too!” In other cases, there will be a gap: “How come no one has strategic planning on their list?”
In many cases, it’s the leader of the executive team, often the CEO, who presents the biggest problem. Many of these leaders take on active
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go back to work to do their day jobs. The fact is, every organization of
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go back to work to do their day jobs. The fact is, every organization of any size needs some division of labor, and that begins at the very top.
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ATERIAL any size needs some division of labor, and that begins at the very top.
Without clarity around that division of labor, the potential for politics
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Without clarity around that division of labor, the potential for politics and infighting, even among well-intentioned people, is great.
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and infighting, even among well-intentioned people, is great.There is not a great deal to be said about this particular question,
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There is not a great deal to be said about this particular question, aside from warning leadership teams not to take it for granted. Although
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aside from warning leadership teams not to take it for granted. Although there is often clarity among executives in most organizations about who
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there is often clarity among executives in most organizations about who does what on the team, making assumptions about that clarity can lead
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does what on the team, making assumptions about that clarity can lead to surprising and unnecessary problems.
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to surprising and unnecessary problems.Part of the challenge is that most organizations have adopted
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Part of the challenge is that most organizations have adopted conventional titles for their various departments. Depending on the
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conventional titles for their various departments. Depending on the industry, most have some combination of many of the following roles:
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industry, most have some combination of many of the following roles: head of sales, marketing, finance, operations, human resources, engi-
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head of sales, marketing, finance, operations, human resources, engi-neering, IT, customer service, and legal. And while those functional
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neering, IT, customer service, and legal. And while those functional descriptions are pretty good indicators of the general responsibilities of COPYRIG
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descriptions are pretty good indicators of the general responsibilities of members of the leadership team, I’m always a little surprised when I COPYRIG
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members of the leadership team, I’m always a little surprised when I NOT FOR R
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There is not a great deal to be said about this particular question, aside from warning leadership teams not to take it for granted. Although
NOT FOR RESALEaside from warning leadership teams not to take it for granted. Although
there is often clarity among executives in most organizations about who
NOT FOR RESALEthere is often clarity among executives in most organizations about who
does what on the team, making assumptions about that clarity can lead
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does what on the team, making assumptions about that clarity can lead to surprising and unnecessary problems.
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to surprising and unnecessary problems.Part of the challenge is that most organizations have adopted
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Part of the challenge is that most organizations have adopted conventional titles for their various departments. Depending on the
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conventional titles for their various departments. Depending on the industry, most have some combination of many of the following roles:
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industry, most have some combination of many of the following roles: head of sales, marketing, finance, operations, human resources, engi-
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head of sales, marketing, finance, operations, human resources, engi-neering, IT, customer service, and legal. And while those functional
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neering, IT, customer service, and legal. And while those functional descriptions are pretty good indicators of the general responsibilities of NOT FOR R
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descriptions are pretty good indicators of the general responsibilities of
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Discipline 2: Create Clarity
133
The Two-Headed CeO
One of the first organizations I consulted to was a start-
up fashion apparel company that operated out of a small
warehouse with five employees. The CEO was the original
product designer. As the company experienced rapid
growth and market acceptance, he promoted one of his
earliest employees to be head of products (the guy
was actually the company’s original shipping admini-
strator and janitor who turned out to be a remarkable
designer).
The problem, of course, was that the CEO continued to
function as the chief product specialist, which had the poten-
tial for creating confusion for everyone on the team, not the
least of which was the new head of products. During meet-
ings, when the CEO weighed in on product issues, team
members didn’t push back much because they mistakenly
assumed he was speaking as the CEO and declaring his
intention to make a final decision. In reality, he was just
weighing in as a product designer and hoping to encourage
discussion.
Realizing that he was inadvertently squelching debate
and overriding the authority of his head of product deve-
lopment, the CEO decided he had to be more explicit
with his team during meetings about which role he was
playing and whether his intention was to contribute to the
conver sation or drive closure as the organization’s chief
executive.
roles beyond their responsibility of managing the leadership team, and this can create confusion. For instance, in many smaller organizations, the founder and CEO occupies two separate roles: leader of the execu-tive team and functional specialist.
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ATERIAL up fashion apparel company that operated out of a small
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ATERIAL up fashion apparel company that operated out of a small
warehouse with five employees. The CEO was the original
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ATERIAL warehouse with five employees. The CEO was the original
product designer. As the company experienced rapid
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product designer. As the company experienced rapid
growth and market acceptance, he promoted one of his
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growth and market acceptance, he promoted one of his
earliest employees to be head of products (the guy
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earliest employees to be head of products (the guy
was actually the company’s original shipping admini
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was actually the company’s original shipping admini
rator and janitor who turned out to be a remarkable
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rator and janitor who turned out to be a remarkable
The problem, of course, was that the CEO continued to
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The problem, of course, was that the CEO continued to
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function as the chief product specialist, which had the poten-
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function as the chief product specialist, which had the poten-
tial for creating confusion for everyone on the team, not the
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tial for creating confusion for everyone on the team, not the
least of which was the new head of products. During meet-
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least of which was the new head of products. During meet-
ings, when the CEO weighed in on product issues, team
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ings, when the CEO weighed in on product issues, team
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members didn’t push back much because they mistakenly
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members didn’t push back much because they mistakenly
assumed he was speaking as the CEO and declaring his
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assumed he was speaking as the CEO and declaring his
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intention to make a final decision. In reality, he was just COPYRIGHTED M
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intention to make a final decision. In reality, he was just NOT FOR R
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earliest employees to be head of products (the guy
was actually the company’s original shipping admini
NOT FOR RESALEwas actually the company’s original shipping admini
rator and janitor who turned out to be a remarkable
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rator and janitor who turned out to be a remarkable
The problem, of course, was that the CEO continued to
NOT FOR RESALE
The problem, of course, was that the CEO continued to
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function as the chief product specialist, which had the poten-
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function as the chief product specialist, which had the poten-
tial for creating confusion for everyone on the team, not the
NOT FOR RESALE
tial for creating confusion for everyone on the team, not the
least of which was the new head of products. During meet-
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least of which was the new head of products. During meet-
ings, when the CEO weighed in on product issues, team
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ings, when the CEO weighed in on product issues, team
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members didn’t push back much because they mistakenly
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members didn’t push back much because they mistakenly
assumed he was speaking as the CEO and declaring his NOT FOR RESALE
assumed he was speaking as the CEO and declaring his
Patrick Lencioni—The Advantage
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The Advantage
134
It’s tempting for leaders, especially those at the top of organizations, to temporarily step into roles where they are talented or comfortable. What they often don’t realize, however, is that others in the organiza-tion, even on their team, aren’t as clear as they are about where lines of responsibility ultimately lie.
Regardless of how clear or confusing a company’s “org” chart may be, it is always worthwhile to take a little time to clarify so that everyone on the leadership team knows and agrees on what everyone else does and that all critical areas are covered.
Okay, let’s assume a team has successfully answered each of the six critical questions. They can still fail to benefit from the clarity they’ve achieved if they don’t capture that clarity effectively.
THe PlAYBOOk
Once the leadership team has answered each of the six critical ques-tions, it is absolutely critical for them to capture those answers in a concise, actionable way so that they can use them for communication, decision making, and planning going forward.
Leaders usually make one of two mistakes after leaving an off-site meeting or a strategy session where they’ve agreed on something important. Often they capture their decisions in a glossy, bound docu-ment and then place it on a shelf to gather dust. Or they do nothing to capture their ideas, assuming that the people in the room will natu-rally glean the ideas that are important or relevant for their departments.
The best alternative to these extremes and the most effective tool for keeping key decisions alive is the creation of something we refer to as a playbook: a simple document summarizing the answers to the six critical questions. While every organization will, and should, create a playbook that is customized to their needs, there are two things that the leaders of any organization should do to make their playbook work.
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on the leadership team knows and agrees on what everyone else does
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on the leadership team knows and agrees on what everyone else does
Okay, let’s assume a team has successfully answered each of the six
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Okay, let’s assume a team has successfully answered each of the six critical questions. They can still fail to benefit from the clarity they’ve
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critical questions. They can still fail to benefit from the clarity they’ve achieved if they don’t capture that clarity effectively.
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achieved if they don’t capture that clarity effectively.
the leadership team has answered each of the six critical ques-
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the leadership team has answered each of the six critical ques-tions, it is absolutely critical for them to capture those answers in a
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tions, it is absolutely critical for them to capture those answers in a concise, actionable way so that they can use them for communication,
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concise, actionable way so that they can use them for communication, decision making, and planning going forward.
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decision making, and planning going forward.
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Leaders usually make one of two mistakes after leaving an off-site
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Leaders usually make one of two mistakes after leaving an off-site meeting or a strategy session where they’ve agreed on something
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meeting or a strategy session where they’ve agreed on something important. Often they capture their decisions in a glossy, bound docu-COPYRIG
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important. Often they capture their decisions in a glossy, bound docu-ment and then place it on a shelf to gather dust. Or they do nothing COPYRIG
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ment and then place it on a shelf to gather dust. Or they do nothing NOT FOR R
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the leadership team has answered each of the six critical ques-
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the leadership team has answered each of the six critical ques-tions, it is absolutely critical for them to capture those answers in a
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tions, it is absolutely critical for them to capture those answers in a concise, actionable way so that they can use them for communication,
NOT FOR RESALE
concise, actionable way so that they can use them for communication, decision making, and planning going forward.
NOT FOR RESALE
decision making, and planning going forward.
NOT FOR RESALE
Leaders usually make one of two mistakes after leaving an off-site
NOT FOR RESALE
Leaders usually make one of two mistakes after leaving an off-site meeting or a strategy session where they’ve agreed on something
NOT FOR RESALE
meeting or a strategy session where they’ve agreed on something important. Often they capture their decisions in a glossy, bound docu-NOT FOR R
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important. Often they capture their decisions in a glossy, bound docu-
Patrick Lencioni—The Advantage
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Discipline 2: Create Clarity
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First, they must keep it short. Anything more than a few pages is unnecessary and discourages people from reviewing the playbook. In most cases, the answers to the six questions can be captured on a single page—two at the most. And even if a team wants to add information from Discipline 1 (build a cohesive leadership team), like team member profiles and results from the team effectiveness exercise, no more than three pages will be needed.
Second, leadership team members should keep their playbook with them at all times. And not buried in a briefcase. They should keep it on their desks, bring it to staff meetings, and have it available for quick reference and as a tool for communicating to employees.
The following is an example of a company playbook. But remember that whatever form it takes, the key is to keep the answers to the six critical questions alive and accessible. By doing this, a leadership team will drastically improve the odds of running the organization in an aligned, consistent, and intentional way.
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Second, leadership team members should keep their playbook
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Second, leadership team members should keep their playbook with them at all times. And not buried in a briefcase. They
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ATERIAL with them at all times. And not buried in a briefcase. They
should keep it on their desks, bring it to staff meetings, and have it
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should keep it on their desks, bring it to staff meetings, and have it available for quick reference and as a tool for communicating to
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available for quick reference and as a tool for communicating to
The following is an example of a company playbook. But remember
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The following is an example of a company playbook. But remember that whatever form it takes, the key is to keep the answers to the six
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that whatever form it takes, the key is to keep the answers to the six critical questions alive and accessible. By doing this, a leadership team
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critical questions alive and accessible. By doing this, a leadership team will drastically improve the odds of running the organization in an
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will drastically improve the odds of running the organization in an
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aligned, consistent, and intentional way.
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aligned, consistent, and intentional way.
NOT FOR RESALEThe following is an example of a company playbook. But remember
NOT FOR RESALEThe following is an example of a company playbook. But remember
that whatever form it takes, the key is to keep the answers to the six
NOT FOR RESALEthat whatever form it takes, the key is to keep the answers to the six
critical questions alive and accessible. By doing this, a leadership team
NOT FOR RESALE
critical questions alive and accessible. By doing this, a leadership team will drastically improve the odds of running the organization in an
NOT FOR RESALE
will drastically improve the odds of running the organization in an
NOT FOR RESALE
aligned, consistent, and intentional way.
NOT FOR RESALE
aligned, consistent, and intentional way.
Patrick Lencioni—The Advantage
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The Advantage
136
Thematic Goal
Defining Objectives
Expand our consulting practice
Solicit morereferrals from
previous clients
Increaseadvertising
for consulting
Hire more greatconsultants
Start doingfree seminars
Improve qualityof consulting
materials
Standard OperatingObjectives
Revenue ExpensesClientsatisfaction
Clientretention
Strengthof pipeline
Staffmorale Lead flow
Playbook ExampleLighthouse Consulting
Why do we exist? We exist because we believe the world
needs more great leaders.
How do we behave? We behave with passion, humility, and
emotional intelligence.
What do we do? We provide services and resources for
leaders who want to make their organizations more
effective.
How will we succeed? We will differentiate ourselves by
providing extremely high-touch service, staying relatively
small and protecting our unique culture, and leveraging the
ideas of world-class subject matter experts.
What is most important, right now?
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We will differentiate ourselves by
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We will differentiate ourselves by
providing extremely high-touch service, staying relatively
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providing extremely high-touch service, staying relatively
small and protecting our unique culture, and leveraging the
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small and protecting our unique culture, and leveraging the
ideas of world-class subject matter experts.
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ideas of world-class subject matter experts.
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Thematic Goal
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Thematic Goal
Defining Objectives
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Defining Objectives
What is most important, right now?
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What is most important, right now?
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Defining Objectives NOT FOR RESALE
Defining Objectives
Expand our consulting practice
NOT FOR RESALE
Expand our consulting practiceExpand our consulting practice
NOT FOR RESALE
Expand our consulting practice
Hire more greatNOT FOR RESALE
Hire more greatconsultantsNOT FOR R
ESALE
consultants
providing extremely high-touch service, staying relatively
NOT FOR RESALE
providing extremely high-touch service, staying relatively
small and protecting our unique culture, and leveraging the
NOT FOR RESALE
small and protecting our unique culture, and leveraging the
ideas of world-class subject matter experts.
NOT FOR RESALEideas of world-class subject matter experts.
Patrick Lencioni—The Advantage
La
Discipline 2: Create Clarity
137
Who must do what?
Name Title General Responsibilities
Michael CEO Executive team leadership,
company strategy, key sales
support
Dick Consulting Ops Consultant and project
management, content
development
Amy CFO Finances, IT, legal, general
administration
Matt Sales Standard sales, partnerships
Tom Marketing Standard marketing, customer
education, events
Christa HR Training, benefits, compensation
Team profile
Name Type Areas for Improvement
Michael ENTJ Interrupt less; follow through on
commitments
Dick INTP Engage more with peers; respond more
quickly to inquiries/e-mails
Amy ISTJ Explain things more thoroughly; speak up
during meetings
Matt ENFP Stay focused and on-topic during
meetings; follow through
Tom INFJ Don’t be afraid to disagree; be tougher on
your staff
Christa ESTJ Flex more to business needs; don’t be
defensive about department
Lencioni_1522_c04_main.indd 137 1/17/2012 1:47:04 PM
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ATERIAL Finances, IT, legal, general
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ATERIAL Finances, IT, legal, general
Standard sales, partnerships
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Standard sales, partnerships
Tom Marketing Standard marketing, customer
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ATERIAL
Tom Marketing Standard marketing, customer
education, events
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ATERIAL
education, events
Training, benefits, compensation
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Training, benefits, compensation
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ATERIAL
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Name Type Areas for Improvement
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Name Type Areas for Improvement
Michael ENTJ Interrupt less; follow through on
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ATERIAL
Michael ENTJ Interrupt less; follow through on
Dick INTP Engage more with peers; respond more
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ATERIAL
Dick INTP Engage more with peers; respond more
Amy ISTJ Explain things more thoroughly; speak up COPYRIGHTED M
ATERIAL
Amy ISTJ Explain things more thoroughly; speak up NOT FOR R
ESALE
NOT FOR RESALE
Tom Marketing Standard marketing, customer
NOT FOR RESALE
Tom Marketing Standard marketing, customer
education, events
NOT FOR RESALEeducation, events
Training, benefits, compensation
NOT FOR RESALETraining, benefits, compensation
NOT FOR RESALE
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Name Type Areas for Improvement
NOT FOR RESALE
Name Type Areas for Improvement
Michael ENTJ Interrupt less; follow through on
NOT FOR RESALE
Michael ENTJ Interrupt less; follow through on
commitments
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commitments
Dick INTP Engage more with peers; respond more
NOT FOR RESALE
Dick INTP Engage more with peers; respond more
Patrick Lencioni—The Advantage
La
The Advantage
138
CHeCklIST fOR DISCIPlIne 2: CReATe ClARITY
Members of a leadership team can be confident that they’ve
mastered this discipline when they can affirm the following
statements:
⎯ Members of the leadership team know, agree on, and are
passionate about the reason that the organization exists.
⎯ The leadership team has clarified and embraced a small,
specific set of behavioral values.
⎯ Leaders are clear and aligned around a strategy that helps
them define success and differentiate from competitors.
⎯ The leadership team has a clear, current goal around which
they rally. They feel a collective sense of ownership for
that goal.
⎯ Members of the leadership team understand one another’s
roles and responsibilities. They are comfortable asking
questions about one another’s work.
⎯ The elements of the organization’s clarity are concisely
summarized and regularly referenced and reviewed by the
leadership team.
Lencioni_1522_c04_main.indd 138 1/17/2012 1:47:04 PM
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ATERIAL passionate about the reason that the organization exists.
COPYRIGHTED M
ATERIAL passionate about the reason that the organization exists.
e leadership team has clarified and embraced a small,
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ATERIAL
e leadership team has clarified and embraced a small,
aders are clear and aligned around a strategy that helps
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ATERIAL
aders are clear and aligned around a strategy that helps
them define success and differentiate from competitors.
COPYRIGHTED M
ATERIAL
them define success and differentiate from competitors.
e leadership team has a clear, current goal around which
COPYRIGHTED M
ATERIAL
e leadership team has a clear, current goal around which
they rally. They feel a collective sense of ownership for
COPYRIGHTED M
ATERIAL
they rally. They feel a collective sense of ownership for
mbers of the leadership team understand one another’s
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ATERIAL
mbers of the leadership team understand one another’s
roles and responsibilities. They are comfortable asking
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ATERIAL
roles and responsibilities. They are comfortable asking
questions about one another’s work.
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ATERIAL
questions about one another’s work.
e elements of the organization’s clarity are concisely
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ATERIAL
e elements of the organization’s clarity are concisely
summarized and regularly referenced and reviewed by the
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ATERIAL
summarized and regularly referenced and reviewed by the
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ATERIAL
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leadership team.COPYRIGHTED M
ATERIAL
leadership team.NOT FOR RESALE
aders are clear and aligned around a strategy that helps
NOT FOR RESALE
aders are clear and aligned around a strategy that helps
them define success and differentiate from competitors.
NOT FOR RESALEthem define success and differentiate from competitors.
e leadership team has a clear, current goal around which
NOT FOR RESALE
e leadership team has a clear, current goal around which
they rally. They feel a collective sense of ownership for
NOT FOR RESALE
they rally. They feel a collective sense of ownership for
mbers of the leadership team understand one another’s
NOT FOR RESALE
mbers of the leadership team understand one another’s
roles and responsibilities. They are comfortable asking
NOT FOR RESALE
roles and responsibilities. They are comfortable asking
questions about one another’s work.
NOT FOR RESALE
questions about one another’s work.
e elements of the organization’s clarity are concisely
NOT FOR RESALE
e elements of the organization’s clarity are concisely
summarized and regularly referenced and reviewed by the
NOT FOR RESALE
summarized and regularly referenced and reviewed by the
leadership team.NOT FOR RESALE
leadership team.
Patrick Lencioni—The Advantage
La
Lencioni_1522_c04_main.indd 139 1/17/2012 1:47:04 PM
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NOT FOR RESALE
Patrick Lencioni—The Advantage
La
WHAT’S IT WORTH TO YOU?
Back to those two organizations.
The first is run by a leadership team whose members regularly remind employees about the company’s reason for existence, its core values, its strategy, and its top priority. They leave meetings clear about what they’ve agreed to do and what they’re going to go back and tell their employees. They also take steps to ensure that they know the concerns and ideas of the people in their organizations so that they can represent and consider them when making decisions.
The second has a leadership team that limits its communication to a few events each year, and even then the focus is mainly on tactical goals and initiatives. Their messaging after meetings is often sparse and inconsistent, and they aren’t particularly aware of the opinions of the employees deeper in their organizations.
The question: What kind of advantage would the first organization have over the second, and how much time and energy would it be worth investing to make this advantage a reality?
Lencioni_1522_c05_main.indd 140 1/17/2012 1:47:12 PM
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ATERIAL
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ATERIAL
The first is run by a leadership team whose members regularly
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ATERIAL
The first is run by a leadership team whose members regularly remind employees about the company’s reason for existence, its core
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ATERIAL
remind employees about the company’s reason for existence, its core remind employees about the company’s reason for existence, its core
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ATERIAL
remind employees about the company’s reason for existence, its core values, its strategy, and its top priority. They leave meetings clear about
COPYRIGHTED M
ATERIAL
values, its strategy, and its top priority. They leave meetings clear about values, its strategy, and its top priority. They leave meetings clear about
COPYRIGHTED M
ATERIAL
values, its strategy, and its top priority. They leave meetings clear about what they’ve agreed to do and what they’re going to go back and tell
COPYRIGHTED M
ATERIAL
what they’ve agreed to do and what they’re going to go back and tell their employees. They also take steps to ensure that they know the
COPYRIGHTED M
ATERIAL
their employees. They also take steps to ensure that they know the concerns and ideas of the people in their organizations so that they can
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ATERIAL
concerns and ideas of the people in their organizations so that they can
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ATERIAL
represent and consider them when making decisions.
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ATERIAL
represent and consider them when making decisions.
The second has a leadership team that limits its communication to
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ATERIAL
The second has a leadership team that limits its communication to a few events each year, and even then the focus is mainly on tactical
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ATERIAL
a few events each year, and even then the focus is mainly on tactical goals and initiatives. Their messaging after meetings is often sparse and
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goals and initiatives. Their messaging after meetings is often sparse and
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inconsistent, and they aren’t particularly aware of the opinions of the COPYRIGHTED M
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inconsistent, and they aren’t particularly aware of the opinions of the employees deeper in their organizations.COPYRIG
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employees deeper in their organizations.NOT FOR R
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remind employees about the company’s reason for existence, its core
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remind employees about the company’s reason for existence, its core values, its strategy, and its top priority. They leave meetings clear about
NOT FOR RESALEvalues, its strategy, and its top priority. They leave meetings clear about
what they’ve agreed to do and what they’re going to go back and tell
NOT FOR RESALEwhat they’ve agreed to do and what they’re going to go back and tell what they’ve agreed to do and what they’re going to go back and tell
NOT FOR RESALEwhat they’ve agreed to do and what they’re going to go back and tell
their employees. They also take steps to ensure that they know the
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their employees. They also take steps to ensure that they know the their employees. They also take steps to ensure that they know the
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their employees. They also take steps to ensure that they know the concerns and ideas of the people in their organizations so that they can
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concerns and ideas of the people in their organizations so that they can concerns and ideas of the people in their organizations so that they can
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concerns and ideas of the people in their organizations so that they can
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represent and consider them when making decisions.
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represent and consider them when making decisions.
The second has a leadership team that limits its communication to
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The second has a leadership team that limits its communication to a few events each year, and even then the focus is mainly on tactical
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a few events each year, and even then the focus is mainly on tactical goals and initiatives. Their messaging after meetings is often sparse and NOT FOR R
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goals and initiatives. Their messaging after meetings is often sparse and inconsistent, and they aren’t particularly aware of the opinions of the NOT FOR R
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inconsistent, and they aren’t particularly aware of the opinions of the
Patrick Lencioni—The Advantage
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141
D I S C I P L I N E 3
Once a leadership team has become cohesive and worked to establish clarity and align-
ment around the answers to the six critical ques-tions, then, and only then, can they effectively move on to the next step: communicating those answers. Or better yet, overcommunicating those answers—over and over and over and over and over and over and over again.
That’s right. Seven times. I’ve heard claims that employees won’t believe what leaders are commu-nicating to them until they’ve heard it seven times. Whether the real number is five, seven, or seventy-seven, the point is that people are skeptical about what they’re being told unless they hear it consis-tently over time.
That need for repetition is not a testament to undue cynicism on the part of employees; it is the
ORGANIZATIONAL HEALTH
3. Overcommunicate
Clarity
4. Reinforce
Clarity
1. Build a
Cohesive Leadership
Team
2. CreateClarity
Overcommunicate Clarity
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Once a leadership team has become cohesive
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nce a leadership team has become cohesive and worked to establish clarity and align-
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and worked to establish clarity and align-ment around the answers to the six critical ques-
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ment around the answers to the six critical ques-tions, then, and only then, can they effectively move
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tions, then, and only then, can they effectively move on to the next step: communicating those answers.
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on to the next step: communicating those answers.
Overcommunicate
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nce a leadership team has become cohesive
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nce a leadership team has become cohesive and worked to establish clarity and align-
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and worked to establish clarity and align-ment around the answers to the six critical ques-
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ment around the answers to the six critical ques-tions, then, and only then, can they effectively move
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tions, then, and only then, can they effectively move on to the next step: communicating those answers.
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on to the next step: communicating those answers.
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Or better yet, overcommunicating those answers—NOT FOR RESALE
Or better yet, overcommunicating those answers—over and over and over and over and over and over NOT FOR R
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over and over and over and over and over and over
Patrick Lencioni—The Advantage
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result of the generic, almost spoof-like communication that takes place within so many organizations. Scott Adams and his Dilbert character have built a cottage industry around highlighting the clichés at the heart of this phenomenon, and I wish I could say that the comic strip was way off base.
After all, just about every leader says that quality is job number one, the customer is king, and employees are the organization’s greatest asset. It’s almost comical how rote these messages have become. And so it’s not surprising that employees give little credence to executive pronounce-ments and instead wait to see how serious those executives are. One of the best tests of seriousness is whether they continue to repeat them-selves over a prolonged period of time.
Unfortunately, most leaders I’ve worked with are hesitant to repeat themselves. They call to mind that old wives’ tale (it really is a wives’ tale), where a woman asks her husband, “Why don’t you tell me you love me anymore?” The husband seems a little surprised by the question and after considering it for a moment replies, “Well, I told you I loved you when we got married. I’ll let you know if it changes.”
Leaders inadvertently do the same thing when they walk away from an annual all-hands meeting and think that they’ve done their job of communicating by giving a speech outlining the organization’s strategy or priorities. And they think they’ve been especially thorough when they announce that the slides for the presentation can be found on the company’s intranet site. But then they seem surprised when they learn, a few weeks later, that employees aren’t acting on what they were told and that most of those employees can’t even repeat the organization’s new strategy accurately.
The problem is that lead ers confuse the mere transfer of infor mation to an audience with the audience’s ability to under stand, internalize, and emb race the message that is being communicated. The only way for people to embrace a message is to hear it over a period of time, in a variety of different situations, and preferably from different people. That’s why great leaders see themselves as Chief Reminding Officers as
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surprising that employees give little credence to executive pronounce-
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surprising that employees give little credence to executive pronounce-ments and instead wait to see how serious those executives are. One of
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the best tests of seriousness is whether they continue to repeat them-
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the best tests of seriousness is whether they continue to repeat them-
Unfortunately, most leaders I’ve worked with are hesitant to repeat
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Unfortunately, most leaders I’ve worked with are hesitant to repeat themselves. They call to mind that old wives’ tale (it really is a wives’
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themselves. They call to mind that old wives’ tale (it really is a wives’ tale), where a woman asks her husband, “Why don’t you tell me you
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tale), where a woman asks her husband, “Why don’t you tell me you love me anymore?” The husband seems a little surprised by the question
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love me anymore?” The husband seems a little surprised by the question and after considering it for a moment replies, “Well, I told you I loved
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and after considering it for a moment replies, “Well, I told you I loved
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you when we got married. I’ll let you know if it changes.”
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you when we got married. I’ll let you know if it changes.”Leaders inadvertently do the same thing when they walk away from
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Leaders inadvertently do the same thing when they walk away from an annual all-hands meeting and think that they’ve done their job of
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an annual all-hands meeting and think that they’ve done their job of communicating by giving a speech outlining the organization’s strategy
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communicating by giving a speech outlining the organization’s strategy
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or priorities. And they think they’ve been especially thorough when
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or priorities. And they think they’ve been especially thorough when they announce that the slides for the presentation can be found on the COPYRIG
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they announce that the slides for the presentation can be found on the company’s intranet site. But then they seem surprised when they learn, COPYRIG
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company’s intranet site. But then they seem surprised when they learn, NOT FOR R
ESALEUnfortunately, most leaders I’ve worked with are hesitant to repeat
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Unfortunately, most leaders I’ve worked with are hesitant to repeat themselves. They call to mind that old wives’ tale (it really is a wives’
NOT FOR RESALEthemselves. They call to mind that old wives’ tale (it really is a wives’
tale), where a woman asks her husband, “Why don’t you tell me you
NOT FOR RESALEtale), where a woman asks her husband, “Why don’t you tell me you
love me anymore?” The husband seems a little surprised by the question
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love me anymore?” The husband seems a little surprised by the question and after considering it for a moment replies, “Well, I told you I loved
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and after considering it for a moment replies, “Well, I told you I loved
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you when we got married. I’ll let you know if it changes.”
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you when we got married. I’ll let you know if it changes.”Leaders inadvertently do the same thing when they walk away from
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Leaders inadvertently do the same thing when they walk away from an annual all-hands meeting and think that they’ve done their job of
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an annual all-hands meeting and think that they’ve done their job of communicating by giving a speech outlining the organization’s strategy
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communicating by giving a speech outlining the organization’s strategy
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or priorities. And they think they’ve been especially thorough when NOT FOR RESALE
or priorities. And they think they’ve been especially thorough when they announce that the slides for the presentation can be found on the NOT FOR R
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they announce that the slides for the presentation can be found on the
Patrick Lencioni—The Advantage
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much as anything else. Their top two priorities are to set the direction of the organization and then to ensure that people are reminded of it on a regular basis. So why do so many leaders fail to do this?
Many don’t enjoy the reminding role because it seems wasteful and ineffi-cient to them. They’ve been trained to avoid redundancy in virtually every aspect of their work, so embracing it in communication isn’t easy for them. But some leaders aren’t so much worried about the wastefulness of overcommunication; they fear that repeating a message might be insulting to their audience. They assume that employees don’t need to be told something more than once and that they’ll feel patronized if they are.
What those leaders fail to realize is that employees understand the need for repetition. They know that messaging is not so much an intel-lectual process as an emotional one. Employees are not analyzing what leaders are saying based solely on whether it is intellectually novel or compelling, but more than anything else on whether they believe the leaders are serious, authentic, and committed to what they are saying. Again, that means repetition is a must.
Finally, many leaders fail to overcommunicate because they get bored saying the same things over and over again. This is understand-able. Intelligent people want to be challenged with new messages and new problems to solve, and they get tired of revisiting the same topics. But that doesn’t matter. The point of leadership is not to keep the leader entertained, but to mobilize people around what is most important. When that calls for repetition and reinforcement, which it almost always does, a good leader relishes that responsibility.
Repetition is more than just a matter of communicating something again and again in the same way. Effective communication requires
Great leaders see themselves
as Chief Reminding Officers as
much as anything else.
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in communication isn’t easy for them. But some leaders aren’t so much
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in communication isn’t easy for them. But some leaders aren’t so much worried about the wastefulness of overcommunication; they fear that
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worried about the wastefulness of overcommunication; they fear that repeating a message might be insulting to their audience. They assume
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repeating a message might be insulting to their audience. They assume that employees don’t need to be told something more than once and
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that employees don’t need to be told something more than once and that they’ll feel patronized if they are.
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that they’ll feel patronized if they are.What those leaders fail to realize is that employees understand the
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What those leaders fail to realize is that employees understand the need for repetition. They know that messaging is not so much an intel-
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need for repetition. They know that messaging is not so much an intel-lectual process as an emotional one. Employees are not analyzing what
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lectual process as an emotional one. Employees are not analyzing what leaders are saying based solely on whether it is intellectually novel or
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leaders are saying based solely on whether it is intellectually novel or compelling, but more than anything else on whether they believe the
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compelling, but more than anything else on whether they believe the leaders are serious, authentic, and committed to what they are saying.
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leaders are serious, authentic, and committed to what they are saying. Again, that means repetition is a must.COPYRIG
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worried about the wastefulness of overcommunication; they fear that
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worried about the wastefulness of overcommunication; they fear that repeating a message might be insulting to their audience. They assume
NOT FOR RESALErepeating a message might be insulting to their audience. They assume
that employees don’t need to be told something more than once and
NOT FOR RESALEthat employees don’t need to be told something more than once and
What those leaders fail to realize is that employees understand the
NOT FOR RESALE
What those leaders fail to realize is that employees understand the need for repetition. They know that messaging is not so much an intel-
NOT FOR RESALE
need for repetition. They know that messaging is not so much an intel-lectual process as an emotional one. Employees are not analyzing what
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lectual process as an emotional one. Employees are not analyzing what leaders are saying based solely on whether it is intellectually novel or
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leaders are saying based solely on whether it is intellectually novel or compelling, but more than anything else on whether they believe the
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compelling, but more than anything else on whether they believe the leaders are serious, authentic, and committed to what they are saying. NOT FOR R
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leaders are serious, authentic, and committed to what they are saying. Again, that means repetition is a must.NOT FOR R
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Again, that means repetition is a must.
Patrick Lencioni—The Advantage
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The Advantage
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that key messages come from different sources and through various channels, using a variety of tools. This includes assorted electronic media, from e-mail to videoconferencing to whatever funky new com-munication technology is being introduced to the market when this book goes to print. However, the most effective means of communicat-ing a message, even in a large and far-flung organization, has nothing to do with technology and has been around since the beginning of time. What I’m referring to is word of mouth.
CASCAdIng COmmUnICATIOn
Someone once told me that the best way to ensure that a message gets communicated throughout an organization is to spread rumors about it. Therefore, they concluded, leaders simply ought to go out and tell
“true rumors.” As silly as that may sound, it is the basis for the most important means of communication within a healthy organization.
The most reliable and effective way to get an organi-zation moving in the same direction is for members of a leadership team to come out of their meetings with a clear
message about what was decided, promptly communicate that message to their direct reports, and have those direct reports do the same for their own direct reports. We call this “cascading communication” because it begins the structured but interpersonal process of rolling key messages down through the organization directly from the leadership team.
If this sounds ridiculously simple, that’s because it is. And yet it doesn’t happen in the vast majority of companies in spite of the fact
If the best way to ensure
that a message gets
communicated throughout an
organization is to spread
rumors about it, then leaders
simply ought to go out and
tell “true rumors.”
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once told me that the best way to ensure that a message gets
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once told me that the best way to ensure that a message gets communicated throughout an organization is to spread rumors about
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communicated throughout an organization is to spread rumors about it. Therefore, they concluded, leaders simply ought to go out and tell
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it. Therefore, they concluded, leaders simply ought to go out and tell
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If the best way to ensure
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If the best way to ensure
communicated throughout an
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communicated throughout an
organization is to spread
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organization is to spread
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rumors about it, then leaders
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rumors about it, then leaders
simply ought to go out and
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simply ought to go out and
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tell “true rumors.”COPYRIGHTED M
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tell “true rumors.”NOT FOR R
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once told me that the best way to ensure that a message gets communicated throughout an organization is to spread rumors about
NOT FOR RESALEcommunicated throughout an organization is to spread rumors about
it. Therefore, they concluded, leaders simply ought to go out and tell
NOT FOR RESALEit. Therefore, they concluded, leaders simply ought to go out and tell
“true rumors.” As silly as that
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“true rumors.” As silly as that may sound, it is the basis for
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may sound, it is the basis for the most important means
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the most important means
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communicated throughout an
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communicated throughout an
organization is to spread
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organization is to spread
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rumors about it, then leaders
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rumors about it, then leaders
simply ought to go out and NOT FOR RESALE
simply ought to go out and
Patrick Lencioni—The Advantage
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Discipline 3: Overcommunicate Clarity
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that it is so effective. Part of the reason for its effectiveness has to do with its contrast to more formal means of communication. Over the past fifteen or twenty years, employees have grown accustomed to inconsistent, untimely, and manufactured electronic communication from their leaders. That’s not meant to sound cynical; it’s just a reality. Most leadership teams are more than adept at sending out e-mail mes-sages and giving presentations, and yet they still struggle with effective communication because employees wonder about the authenticity of what they are reading and hearing.
Cascading communication provides a great opportunity to change all that. Amazingly, when employees in different parts of an organization hear their leaders saying the same things after meet-ings, they actually start to believe that alignment and clarity might be possible. This allows a leadership team to get a quick and meaningful win, one that creates momentum for executives and employees alike.
Consistent messaging
One of my earliest clients was a global software company
that had offices in just about every part of the world. Unsur-
prisingly, employees in different offices felt disconnected
from one another, regardless of how many e-mail announce-
ments, videoconference messages, and company T-shirts
they received.
And then the executive team started doing cascading
communication, leaving their meetings and going back to
their direct reports with a common set of messages. Those
direct reports were then charged with relaying those same
messages to their teams.
I remember the day that the woman who headed HR in
Australia called her colleague in Germany to tell him about
something her boss had just told her that was happening at
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communication because employees wonder about the authenticity of
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communication because employees wonder about the authenticity of
Cascading communication provides a great opportunity to
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Cascading communication provides a great opportunity to change all that. Amazingly, when employees in different parts of an
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change all that. Amazingly, when employees in different parts of an organization hear their leaders saying the same things after meet
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organization hear their leaders saying the same things after meetactually start to believe that alignment and clarity might
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actually start to believe that alignment and clarity might be possible. This allows a leadership team to get a quick and
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be possible. This allows a leadership team to get a quick and meaningful win, one that creates momentum for executives and
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meaningful win, one that creates momentum for executives and
Consistent
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Consistent
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One of my earliest clients was a global software company
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One of my earliest clients was a global software company
that had offices in just about every part of the world. Unsur-
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that had offices in just about every part of the world. Unsur-
prisingly, employees in different offices felt disconnected
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prisingly, employees in different offices felt disconnected
from one another, regardless of how many e-mail announce-COPYRIGHTED M
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from one another, regardless of how many e-mail announce-NOT FOR R
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organization hear their leaders saying the same things after meetactually start to believe that alignment and clarity might
NOT FOR RESALEactually start to believe that alignment and clarity might
be possible. This allows a leadership team to get a quick and
NOT FOR RESALEbe possible. This allows a leadership team to get a quick and
meaningful win, one that creates momentum for executives and
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meaningful win, one that creates momentum for executives and
Consistent
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Consistent
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One of my earliest clients was a global software company
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One of my earliest clients was a global software company
that had offices in just about every part of the world. Unsur-
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that had offices in just about every part of the world. Unsur-
prisingly, employees in different offices felt disconnected NOT FOR RESALE
prisingly, employees in different offices felt disconnected
Patrick Lencioni—The Advantage
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The Advantage
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There are three keys to cascading communication: message consis-tency from one leader to another, timeliness of delivery, and live, real-time communication. This starts toward the end of leadership team meetings, a time when executives are usually trying their best to get out the door. That’s when someone needs to ask the sixty-four-thousand-dollar question: “Hey, what are we going to go back and tell our people?”
For the next few minutes, sometimes longer, leaders need to review their discussions from the meeting and decide which of their decisions are ready to be communicated and which are not. We refer to this as “commitment clarification,” for obvious reasons. Often it’s during this process that they discover that they were not on the same page about what they thought they had decided. Only then can they get real clarity by settling on the decisions they’ve made and agreeing to go out and spread true rumors about them. This will certainly take more time, but the cost of not doing it is often great.
Postmeeting Confusion
I worked for a company early in my career that was strug-
gling and needed to cut costs. After a long executive staff
meeting, it was decided that there would be a freeze in hiring
new employees until the revenue situation at the company
had been improved.
The head of human resources left the staff meeting and
sent out a worldwide e-mail message announcing the hiring
freeze. Within five minutes, two of her peers who had been
in the meeting were in her office protesting the new policy.
corporate. Shocked, her German colleague said, “Hey, my
boss just told me the same thing!” They felt a greater sense
of alignment because of that one simple instance of consis-
tent, informal messaging than they did after receiving any of
the other more produced forms of communication.
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tency from one leader to another, timeliness of delivery, and live, real-
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tency from one leader to another, timeliness of delivery, and live, real-time communication. This starts toward the end of leadership team
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meetings, a time when executives are usually trying their best to get out
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meetings, a time when executives are usually trying their best to get out the door. That’s when someone needs to ask the sixty-four-thousand-
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the door. That’s when someone needs to ask the sixty-four-thousand-dollar question: “Hey, what are we going to go back and tell our people?”
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dollar question: “Hey, what are we going to go back and tell our people?”For the next few minutes, sometimes longer, leaders need to review
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For the next few minutes, sometimes longer, leaders need to review their discussions from the meeting and decide which of their decisions
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their discussions from the meeting and decide which of their decisions are ready to be communicated and which are not. We refer to this as
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are ready to be communicated and which are not. We refer to this as
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“commitment clarification,” for obvious reasons. Often it’s during this
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“commitment clarification,” for obvious reasons. Often it’s during this process that they discover that they were not on the same page about
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process that they discover that they were not on the same page about what they thought they had decided. Only then can they get real clarity
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what they thought they had decided. Only then can they get real clarity by settling on the decisions they’ve made and agreeing to go out and
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by settling on the decisions they’ve made and agreeing to go out and
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spread true rumors about them. This will certainly take more time, but
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spread true rumors about them. This will certainly take more time, but the cost of not doing it is often great.
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the cost of not doing it is often great.NOT FOR R
ESALEdollar question: “Hey, what are we going to go back and tell our people?”
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dollar question: “Hey, what are we going to go back and tell our people?”For the next few minutes, sometimes longer, leaders need to review
NOT FOR RESALEFor the next few minutes, sometimes longer, leaders need to review
their discussions from the meeting and decide which of their decisions
NOT FOR RESALEtheir discussions from the meeting and decide which of their decisions
are ready to be communicated and which are not. We refer to this as
NOT FOR RESALE
are ready to be communicated and which are not. We refer to this as
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“commitment clarification,” for obvious reasons. Often it’s during this
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“commitment clarification,” for obvious reasons. Often it’s during this process that they discover that they were not on the same page about
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process that they discover that they were not on the same page about what they thought they had decided. Only then can they get real clarity
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what they thought they had decided. Only then can they get real clarity by settling on the decisions they’ve made and agreeing to go out and
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by settling on the decisions they’ve made and agreeing to go out and
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spread true rumors about them. This will certainly take more time, but
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spread true rumors about them. This will certainly take more time, but the cost of not doing it is often great.
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the cost of not doing it is often great.
Patrick Lencioni—The Advantage
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Discipline 3: Overcommunicate Clarity
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As important as alignment is, what teams shouldn’t do is word-smith those messages to death and make themselves sound like robotic leaders going out to read from the same exact script. Instead, they need to get clear on the main points to communicate and then go to their teams to explain those points in their own words.
It’s critical that leaders do this during a short and consistent time frame. If one member of the team goes back to her staff to convey the messages right after the meeting and someone else waits a week to do so, there will be understandable confusion and disappointment among employees. That’s not to say that it has to happen in the same moment. However, a twenty-four-hour period following a meeting is not a bad standard.
Many executives ask if they can communicate the results of a meeting using e-mail or even voice mail. The answer is no. Although these tools are certainly more efficient than having to communicate live, they are drastically less effective. For one, employees don’t have a chance to ask questions for clarification. Moreover, when employees read an e-mail or listen to a voice mail, they can’t help but wonder how the message was edited, and they try to read between the lines to discern the underlying meaning.
The best way to do cascading communication is face-to-face and live. Seeing a leader and hearing the tone of his or her voice is critical for employees, as is being able to ask a question or two. Having said
“I didn’t think the freeze applied to sales!” pleaded one
executive. The other executive chimed in. “And there’s no
way that we’re going to cut back on engineers, are we?”
The team was put in the position of having to retract its
announcement and amend its policy, which created tension
among team members, not to mention a loss of credibility
in the eyes of employees. All of this because they didn’t take
a few minutes to get clear about what they were really com-
mitting to at the end of a staff meeting.
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As important as alignment is, what teams shouldn’t do is word-
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As important as alignment is, what teams shouldn’t do is word-smith those messages to death and make themselves sound like robotic
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smith those messages to death and make themselves sound like robotic leaders going out to read from the same exact script. Instead, they need
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leaders going out to read from the same exact script. Instead, they need to get clear on the main points to communicate and then go to their
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to get clear on the main points to communicate and then go to their teams to explain those points in their own words.
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teams to explain those points in their own words.It’s critical that leaders do this during a short and consistent time frame.
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It’s critical that leaders do this during a short and consistent time frame. If one member of the team goes back to her staff to convey the messages
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If one member of the team goes back to her staff to convey the messages right after the meeting and someone else waits a week to do so, there will
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right after the meeting and someone else waits a week to do so, there will
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be understandable confusion and disappointment among employees. That’s
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be understandable confusion and disappointment among employees. That’s not to say that it has to happen in the same moment. However, a twenty-
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not to say that it has to happen in the same moment. However, a twenty-four-hour period following a meeting is not a bad standard.
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four-hour period following a meeting is not a bad standard.Many executives ask if they can communicate the results of a COPYRIG
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Many executives ask if they can communicate the results of a meeting using e-mail or even voice mail. The answer is no. Although COPYRIG
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meeting using e-mail or even voice mail. The answer is no. Although NOT FOR R
ESALEsmith those messages to death and make themselves sound like robotic
NOT FOR RESALE
smith those messages to death and make themselves sound like robotic leaders going out to read from the same exact script. Instead, they need
NOT FOR RESALEleaders going out to read from the same exact script. Instead, they need
to get clear on the main points to communicate and then go to their
NOT FOR RESALEto get clear on the main points to communicate and then go to their
teams to explain those points in their own words.
NOT FOR RESALE
teams to explain those points in their own words.It’s critical that leaders do this during a short and consistent time frame.
NOT FOR RESALE
It’s critical that leaders do this during a short and consistent time frame. If one member of the team goes back to her staff to convey the messages
NOT FOR RESALE
If one member of the team goes back to her staff to convey the messages right after the meeting and someone else waits a week to do so, there will
NOT FOR RESALE
right after the meeting and someone else waits a week to do so, there will
NOT FOR RESALE
be understandable confusion and disappointment among employees. That’s
NOT FOR RESALE
be understandable confusion and disappointment among employees. That’s not to say that it has to happen in the same moment. However, a twenty-
NOT FOR RESALE
not to say that it has to happen in the same moment. However, a twenty-four-hour period following a meeting is not a bad standard.NOT FOR R
ESALE
four-hour period following a meeting is not a bad standard.Many executives ask if they can communicate the results of a NOT FOR R
ESALE
Many executives ask if they can communicate the results of a
Patrick Lencioni—The Advantage
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that, the realities of virtual teams and geographically dispersed employ-ees sometimes make face-to-face communication impossible. That’s when a telephone call or a videoconference is a good idea. The key is that the discussion is live and interactive.
Another good idea when doing cascading communication, when-ever it’s possible, is to do it with an entire group of direct reports at the same time instead of one by one. Aside from being more efficient, it ensures that they hear the same message at the same time and benefit from one another’s questions and observations.
As I write this, I’m all too aware that the advice I’m giving might sound extremely basic. But then again, most organizations are unhealthy precisely because they aren’t doing the basic things, which require discipline, persis-tence, and follow-through more than sophistication or intelligence.
Beyond the simple discipline of doing cascading communication after every leadership team meeting, leaders can ensure that key mes-sages are effectively disseminated throughout an organization in a few other ways. The first and most important is to incorporate the answers to the six critical questions in any situation that calls for leaders to be communicating with employees—everything from recruiting, inter-viewing, orienting, managing, rewarding, training, to even dismissing people from the organization. We’ll cover many of these in the next chapter on reinforcing clarity.
But before doing that, let’s review a simple framework for under-standing the various ways in which communication flows in a healthy organization.
TOP-dOWn COmmUnICATIOn
This is the most common direction that critical information travels in an organization, and the various tools used to do it include all-hands meetings, employee newsletters, regular e-mail announcements, social media, and, of course, cascading communication. I won’t go into detail
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ensures that they hear the same message at the same time and benefit
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ensures that they hear the same message at the same time and benefit
As I write this, I’m all too aware that the advice I’m giving might sound
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As I write this, I’m all too aware that the advice I’m giving might sound extremely basic. But then again, most organizations are unhealthy precisely
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extremely basic. But then again, most organizations are unhealthy precisely because they aren’t doing the basic things, which require discipline, persis-
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because they aren’t doing the basic things, which require discipline, persis-tence, and follow-through more than sophistication or intelligence.
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tence, and follow-through more than sophistication or intelligence.Beyond the simple discipline of doing cascading communication
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Beyond the simple discipline of doing cascading communication after every leadership team meeting, leaders can ensure that key mes-
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after every leadership team meeting, leaders can ensure that key mes-sages are effectively disseminated throughout an organization in a few
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sages are effectively disseminated throughout an organization in a few
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other ways. The first and most important is to incorporate the answers
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other ways. The first and most important is to incorporate the answers to the six critical questions in any situation that calls for leaders to be
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to the six critical questions in any situation that calls for leaders to be communicating with employees—everything from recruiting, inter-
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communicating with employees—everything from recruiting, inter-viewing, orienting, managing, rewarding, training, to even dismissing
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viewing, orienting, managing, rewarding, training, to even dismissing
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people from the organization. We’ll cover many of these in the next
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people from the organization. We’ll cover many of these in the next chapter on reinforcing clarity.COPYRIG
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chapter on reinforcing clarity.But before doing that, let’s review a simple framework for under-COPYRIG
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But before doing that, let’s review a simple framework for under-NOT FOR R
ESALEbecause they aren’t doing the basic things, which require discipline, persis-
NOT FOR RESALE
because they aren’t doing the basic things, which require discipline, persis-tence, and follow-through more than sophistication or intelligence.
NOT FOR RESALEtence, and follow-through more than sophistication or intelligence.
Beyond the simple discipline of doing cascading communication
NOT FOR RESALEBeyond the simple discipline of doing cascading communication
after every leadership team meeting, leaders can ensure that key mes-
NOT FOR RESALE
after every leadership team meeting, leaders can ensure that key mes-sages are effectively disseminated throughout an organization in a few
NOT FOR RESALE
sages are effectively disseminated throughout an organization in a few
NOT FOR RESALE
other ways. The first and most important is to incorporate the answers
NOT FOR RESALE
other ways. The first and most important is to incorporate the answers to the six critical questions in any situation that calls for leaders to be
NOT FOR RESALE
to the six critical questions in any situation that calls for leaders to be communicating with employees—everything from recruiting, inter-
NOT FOR RESALE
communicating with employees—everything from recruiting, inter-viewing, orienting, managing, rewarding, training, to even dismissing
NOT FOR RESALE
viewing, orienting, managing, rewarding, training, to even dismissing
NOT FOR RESALE
people from the organization. We’ll cover many of these in the next NOT FOR RESALE
people from the organization. We’ll cover many of these in the next chapter on reinforcing clarity.NOT FOR R
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chapter on reinforcing clarity.
Patrick Lencioni—The Advantage
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about these here, because there are plenty of books and articles, not to mention consulting firms, that have more information and knowledge than I do about these various forms of basic communication.
What I will say is that the reason most organizations fail to com-municate to employees is not that they don’t know how to build an intranet site or write a blog or design a Power-Point presentation, but that they don’t achieve clarity around key messages and stick with them. The world is full of organizations where employees feel uninformed and in the dark even though they have access to more glossy newsletters, interac-tive Web sites, and overly produced employee meetings than they need or want. What they don’t get is consistent, authentic, and relevant communication.
The world is full of
organizations where
employees feel uninformed
and in the dark even though
they have access to more
glossy newsletters, interactive
Web sites, and overly
produced employee meetings
than they need or want.
Keeping It Real
One of the best exemplars of effective top-down communi-
cation that I’ve seen was the CEO of a large health care
company who sent out a one- to three-page e-mail message
to all employees every Friday. What was particularly amazing
was not the volume of his communication but the authentic-
ity, directness, and relevance of his messages.
As the organization went into a difficult period, the CEO
used those Friday e-mail messages to keep employees
focused and motivated around the difficult job ahead of
them. Any employee at the company, regardless of their
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they have access to more
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they have access to more glossy newsletters, interac-
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glossy newsletters, interac-tive Web sites, and overly produced employee meetings than they need
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tive Web sites, and overly produced employee meetings than they need or want. What they don’t get is consistent, authentic, and relevant
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or want. What they don’t get is consistent, authentic, and relevant communication.
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communication.
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employees feel uninformed
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employees feel uninformed
and in the dark even though
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they have access to more
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they have access to more
glossy newsletters, interactive
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glossy newsletters, interactive
Web sites, and overly
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Web sites, and overly
produced employee meetings
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produced employee meetings
than they need or want.
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than they need or want.
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tive Web sites, and overly produced employee meetings than they need
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tive Web sites, and overly produced employee meetings than they need or want. What they don’t get is consistent, authentic, and relevant
NOT FOR RESALE
or want. What they don’t get is consistent, authentic, and relevant
NOT FOR RESALE
NOT FOR RESALE
glossy newsletters, interactive
NOT FOR RESALE
glossy newsletters, interactive
Web sites, and overly
NOT FOR RESALEWeb sites, and overly
produced employee meetings
NOT FOR RESALEproduced employee meetings
than they need or want.
NOT FOR RESALE
than they need or want.
Patrick Lencioni—The Advantage
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The Advantage
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Of course, it’s worth repeating that the success of top-down com-munication starts with Discipline 1 (build a cohesive leadership team) and Discipline 2 (create clarity). Without these, no amount of com-munication is going to be effective.
UPWARd And LATeRAL COmmUnICATIOn
Providing employees with a means of communicating upward to their leaders is important in any organization. However, it’s not the panacea it’s often presented to be. That’s because noncohesive leadership teams that have not aligned themselves around common answers to critical questions are not in a position to respond adequately to employee input and requests. In fact, getting more input from employees often only exacerbates frustra-tion in an organization when that input cannot be digested and used.
Still, there is something to be said for providing people in an orga-nization with channels for upward communication, whether that takes the form of employee surveys or roundtable discussion forums. What is key to making these effective is that leaders not give the impression that they are abdicating responsibility for decision making by giving employees a vote. Great organizations, unlike countries, are never run like a democracy.
It’s also critical for leaders to realize that no upward communication program will ever take the place of a manager who understands and rep-resents the views of his or her employees. It shouldn’t be used to overcome the shortcomings of leaders who are out of touch with their people.
One of the most common complaints in unhealthy organizations has to do with breakdowns in communication across departments or
department or level, had access to the unedited and often
vulnerable insights of their leader. The company was able to
weather the storms they faced, and the overcommunication
of their CEO was a big reason for this success.
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(create clarity). Without these, no amount of com-
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(create clarity). Without these, no amount of com-
n
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nIC
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ICATIO
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ATIO
oviding employees with a means of communicating upward to their
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oviding employees with a means of communicating upward to their leaders is important in any organization. However, it’s not the panacea it’s
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leaders is important in any organization. However, it’s not the panacea it’s often presented to be. That’s because noncohesive leadership teams that
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often presented to be. That’s because noncohesive leadership teams that have not aligned themselves around common answers to critical questions
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have not aligned themselves around common answers to critical questions are not in a position to respond adequately to employee input and requests.
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are not in a position to respond adequately to employee input and requests. In fact, getting more input from employees often only exacerbates frustra-
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In fact, getting more input from employees often only exacerbates frustra-tion in an organization when that input cannot be digested and used.
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tion in an organization when that input cannot be digested and used.Still, there is something to be said for providing people in an orga-
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Still, there is something to be said for providing people in an orga-nization with channels for upward communication, whether that takes
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nization with channels for upward communication, whether that takes the form of employee surveys or roundtable discussion forums. What COPYRIG
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the form of employee surveys or roundtable discussion forums. What is key to making these effective is that leaders not give the impression COPYRIG
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is key to making these effective is that leaders not give the impression NOT FOR R
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NOT FOR RESALE
ATIO
oviding employees with a means of communicating upward to their
NOT FOR RESALEoviding employees with a means of communicating upward to their
leaders is important in any organization. However, it’s not the panacea it’s
NOT FOR RESALEleaders is important in any organization. However, it’s not the panacea it’s
often presented to be. That’s because noncohesive leadership teams that
NOT FOR RESALE
often presented to be. That’s because noncohesive leadership teams that have not aligned themselves around common answers to critical questions
NOT FOR RESALE
have not aligned themselves around common answers to critical questions are not in a position to respond adequately to employee input and requests.
NOT FOR RESALE
are not in a position to respond adequately to employee input and requests. In fact, getting more input from employees often only exacerbates frustra-
NOT FOR RESALE
In fact, getting more input from employees often only exacerbates frustra-tion in an organization when that input cannot be digested and used.
NOT FOR RESALE
tion in an organization when that input cannot be digested and used.Still, there is something to be said for providing people in an orga-
NOT FOR RESALE
Still, there is something to be said for providing people in an orga-nization with channels for upward communication, whether that takes NOT FOR R
ESALE
nization with channels for upward communication, whether that takes the form of employee surveys or roundtable discussion forums. What NOT FOR R
ESALE
the form of employee surveys or roundtable discussion forums. What
Patrick Lencioni—The Advantage
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Discipline 3: Overcommunicate Clarity
151
divisions. And as much as leaders might want to implement special communication programs to alleviate this, the only good way to address it is to attack the root cause: unresolved issues among the leaders of those divisions. The most well-intentioned, well-designed departmental communication program will not tear down silos unless the people who created those silos want them torn down.
Finally, it’s worth noting here that some of the healthiest organizations I’ve known don’t do a lot of formal upward or lateral communication, and some of the least healthy ones are mired in employee surveys, executive listening forums, and departmental conferences. This is a testament to the fact that without cohesiveness and clarity at the top, no amount of com-munication will suffice, and that with true clarity and cohesiveness, even a little formal communication will go a long, long way.
CHeCKLIST fOR dISCIPLIne 3: OveRCOmmUnICATe CLARITY
Members of a leadership team can be confident that they’ve
mastered this discipline when they can affirm the following
statements:
⎯ The leadership team has clearly communicated the six
aspects of clarity to all employees.
⎯ Team members regularly remind the people in their depart-
ments about those aspects of clarity.
⎯ The team leaves meetings with clear and specific agree-
ments about what to communicate to their employees, and
they cascade those messages quickly after meetings.
⎯ Employees are able to accurately articulate the organization’s
reason for existence, values, strategic anchors, and goals.
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I’ve known don’t do a lot of formal upward or lateral communication, and
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I’ve known don’t do a lot of formal upward or lateral communication, and some of the least healthy ones are mired in employee surveys, executive
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ATERIAL some of the least healthy ones are mired in employee surveys, executive
listening forums, and departmental conferences. This is a testament to the
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listening forums, and departmental conferences. This is a testament to the fact that without cohesiveness and clarity at the top, no amount of com-
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fact that without cohesiveness and clarity at the top, no amount of com-munication will suffice, and that with true clarity and cohesiveness, even
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munication will suffice, and that with true clarity and cohesiveness, even a little formal communication will go a long, long way.
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a little formal communication will go a long, long way.
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CKLIST
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CKLIST f
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fOve
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OveRC
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RC
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O
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Omm
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mm
Members of a leadership team can be confident that they’ve
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Members of a leadership team can be confident that they’ve
mastered this discipline when they can affirm the following
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mastered this discipline when they can affirm the following
statements:
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statements:
ThCOPYRIGHTED M
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The leadership team has clearly communicated the six COPYRIGHTED M
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e leadership team has clearly communicated the six NOT FOR R
ESALEmunication will suffice, and that with true clarity and cohesiveness, even
NOT FOR RESALE
munication will suffice, and that with true clarity and cohesiveness, even a little formal communication will go a long, long way.
NOT FOR RESALEa little formal communication will go a long, long way.
NOT FOR RESALE
NOT FOR RESALE
OR
NOT FOR RESALE
OR dISCIPLI
NOT FOR RESALE
dISCIPLI
NOT FOR RESALE
mm
NOT FOR RESALE
mmU
NOT FOR RESALE
Un
NOT FOR RESALE
nICA
NOT FOR RESALE
ICA
Members of a leadership team can be confident that they’ve
NOT FOR RESALE
Members of a leadership team can be confident that they’ve
mastered this discipline when they can affirm the following
NOT FOR RESALE
mastered this discipline when they can affirm the following
Patrick Lencioni—The Advantage
La
WHAT’S IT WORTH TO YOU?
Those two organizations one final time.
The first has simple, practical processes for recruiting, hiring, and orienting the right people based on its core values, for managing those people’s performance around the organization’s most important priorities, and for rewarding and training them based on the company’s culture, strategy, and operations. Moreover, managers embrace those processes and find them to be helpful tools for succeeding in their jobs.
The second has plenty of processes and human systems, but most of those are generic and cumbersome and not customized to the unique culture and operations of the company. As a result, managers find them largely frustrating and irrelevant to their work.
The question: What kind of advantage would the first organization have over the second, and how much time and energy would it be worth investing to make this advantage a reality?
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The first has simple, practical processes for recruiting, hiring, and
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The first has simple, practical processes for recruiting, hiring, and orienting the right people based on its core values, for managing those
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orienting the right people based on its core values, for managing those orienting the right people based on its core values, for managing those
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orienting the right people based on its core values, for managing those people’s performance around the organization’s most important priori
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people’s performance around the organization’s most important prioripeople’s performance around the organization’s most important priori
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people’s performance around the organization’s most important priorities, and for rewarding and training them based on the company’s
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ties, and for rewarding and training them based on the company’s culture, strategy, and operations. Moreover, managers embrace those
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culture, strategy, and operations. Moreover, managers embrace those processes and find them to be helpful tools for succeeding in their jobs.
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processes and find them to be helpful tools for succeeding in their jobs.
The second has plenty of processes and human systems, but most
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The second has plenty of processes and human systems, but most of those are generic and cumbersome and not customized to the unique
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of those are generic and cumbersome and not customized to the unique culture and operations of the company. As a result, managers find them
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culture and operations of the company. As a result, managers find them largely frustrating and irrelevant to their work.
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largely frustrating and irrelevant to their work.
The question:COPYRIGHTED M
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The question:NOT FOR R
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orienting the right people based on its core values, for managing those
NOT FOR RESALE
orienting the right people based on its core values, for managing those people’s performance around the organization’s most important priori
NOT FOR RESALEpeople’s performance around the organization’s most important priori
ties, and for rewarding and training them based on the company’s
NOT FOR RESALEties, and for rewarding and training them based on the company’s ties, and for rewarding and training them based on the company’s
NOT FOR RESALEties, and for rewarding and training them based on the company’s
culture, strategy, and operations. Moreover, managers embrace those
NOT FOR RESALE
culture, strategy, and operations. Moreover, managers embrace those culture, strategy, and operations. Moreover, managers embrace those
NOT FOR RESALE
culture, strategy, and operations. Moreover, managers embrace those processes and find them to be helpful tools for succeeding in their jobs.
NOT FOR RESALE
processes and find them to be helpful tools for succeeding in their jobs.processes and find them to be helpful tools for succeeding in their jobs.
NOT FOR RESALE
processes and find them to be helpful tools for succeeding in their jobs.
The second has plenty of processes and human systems, but most
NOT FOR RESALE
The second has plenty of processes and human systems, but most of those are generic and cumbersome and not customized to the unique
NOT FOR RESALE
of those are generic and cumbersome and not customized to the unique culture and operations of the company. As a result, managers find them
NOT FOR RESALE
culture and operations of the company. As a result, managers find them largely frustrating and irrelevant to their work.NOT FOR R
ESALE
largely frustrating and irrelevant to their work.
Patrick Lencioni—The Advantage
La
153
D I S C I P L I N E 4
Reinforce Clarity
As important as overcommunication is, leaders of a healthy organization cannot always be
around to remind employees about the company’s reason for existing, its values, and so on. In order to ensure that the answers to the six critical questions become embedded in the fabric of the organization, leaders must do everything they can to reinforce them structurally as well. The way to do that is to make sure that every human system—every process that involves people—from hiring and people management to training and compensation, is designed to reinforce the answers to those questions.
The challenge is to do this without adding too much structure. Or as someone once said to me, “An organization has to institutionalize its culture
ORGANIZATIONAL HEALTH
3. Overcommunicate
Clarity
4. Reinforce
Clarity
1. Build a
Cohesive Leadership
Team
2. CreateClarity
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A
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As important as overcommunication is, leaders
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s important as overcommunication is, leaders of a healthy organization cannot always be
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of a healthy organization cannot always be around to remind employees about the company’s
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around to remind employees about the company’s reason for existing, its values, and so on. In order
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reason for existing, its values, and so on. In order
NOT FOR RESALE
s important as overcommunication is, leaders
NOT FOR RESALE
s important as overcommunication is, leaders of a healthy organization cannot always be
NOT FOR RESALE
of a healthy organization cannot always be around to remind employees about the company’s
NOT FOR RESALE
around to remind employees about the company’s reason for existing, its values, and so on. In order
NOT FOR RESALE
reason for existing, its values, and so on. In order
NOT FOR RESALE
to ensure that the answers to the six critical quesNOT FOR RESALE
to ensure that the answers to the six critical questions become embedded in the fabric of the orgaNOT FOR R
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tions become embedded in the fabric of the orga
Patrick Lencioni—The Advantage
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The Advantage
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without bureaucratizing it.” There is a delicate but critical balance between too much and too little structure in an organization, and the people responsible for creating that balance are its leaders.
Unfortunately, all too often leaders don’t take an active role in designing human systems. Instead, they delegate responsibility to others in the organization, usually to their HR department
or legal staff. It amazes me that they later complain about the bureaucracy in their organizations, like having to do onerous and tedious performance reviews.
Blaming HR and legal for all this is neither fair nor helpful. The problem can be solved only by the leadership team taking an active role in building human systems that reflect and reinforce the uniqueness of the organization’s culture and operations. They must ensure that hiring profiles, performance management processes, training programs, and compensation systems are relevant, and the only way to do that is to design them specifically around the answers to the six questions.
NON-geNeRIcS
Many wellintentioned executives will argue that HR professionals have more expertise and experience in building human systems than members of the leadership team do, and therefore they should take responsibility for it. While that is true, those HR folks can’t be expected to fill the role that their leaders must perform in these areas.
Don’t get me wrong. HR and legal professionals play important roles in the creation and administration of human systems. But the initial design of those systems must be driven by the people who set the direction for the organization in the first place and have the author
An organization has to
institutionalize its culture
without bureaucratizing it.
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delegate responsibility to oth
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delegate responsibility to others in the organization, usu
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ally to their HR department
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ally to their HR department or legal staff. It amazes me that they later complain about the bureau
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or legal staff. It amazes me that they later complain about the bureaucracy in their organizations, like having to do onerous and tedious
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cracy in their organizations, like having to do onerous and tedious
Blaming HR and legal for all this is neither fair nor helpful. The
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Blaming HR and legal for all this is neither fair nor helpful. The problem can be solved only by the leadership team taking an active role
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problem can be solved only by the leadership team taking an active role in building human systems that reflect and reinforce the uniqueness of
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in building human systems that reflect and reinforce the uniqueness of the organization’s culture and operations. They must ensure that hiring
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the organization’s culture and operations. They must ensure that hiring profiles, performance management processes, training programs, and
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profiles, performance management processes, training programs, and compensation systems are relevant, and the only way to do that is to
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compensation systems are relevant, and the only way to do that is to design them specifically around the answers to the six questions.
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design them specifically around the answers to the six questions.
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eNOT FOR R
ESALEcracy in their organizations, like having to do onerous and tedious
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cracy in their organizations, like having to do onerous and tedious
Blaming HR and legal for all this is neither fair nor helpful. The
NOT FOR RESALEBlaming HR and legal for all this is neither fair nor helpful. The
problem can be solved only by the leadership team taking an active role
NOT FOR RESALE
problem can be solved only by the leadership team taking an active role in building human systems that reflect and reinforce the uniqueness of
NOT FOR RESALE
in building human systems that reflect and reinforce the uniqueness of the organization’s culture and operations. They must ensure that hiring
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the organization’s culture and operations. They must ensure that hiring profiles, performance management processes, training programs, and
NOT FOR RESALE
profiles, performance management processes, training programs, and compensation systems are relevant, and the only way to do that is to
NOT FOR RESALE
compensation systems are relevant, and the only way to do that is to design them specifically around the answers to the six questions.
NOT FOR RESALE
design them specifically around the answers to the six questions.
Patrick Lencioni—The Advantage
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ity to guard against the bureaucracy that turns a useful human system into an administrative distraction. When leadership team members abdicate responsibility for this, they are often left with more generic, rote systems and processes than they wanted.
Some leaders actually embrace this in the name of efficiency and standardization, believing that if a performance review system or compensation plan “is good enough for General Electric or PepsiCo, then it’s good enough for us.” The problem is, they aren’t leading GE or Pepsi. (Anyone working for GE or Pepsi can ignore this.)
The fact is that the best human systems are often the simplest and least sophisticated ones. Their primary purpose is not to avoid lawsuits or emulate what other companies are doing but rather to keep managers and employees focused on what the organization believes is important. That’s why a onepage, customized performance review form that managers embrace and take seriously is always better than a sevenpage, sophisticated one designed by an organizational psychologist from the National Institute for Human Transformation and Bureaucracy (there is no such thing).
This point cannot be overstated. Human systems are tools for reinforcement of clarity. They give an organization a structure for tying its operations, culture, and management together, even when leaders aren’t around to remind people. And because each company is different, there are no generic systems that can be downloaded from the Internet.
Let’s take a quick look at the most important human systems that an organization needs, according to the logical life cycle of an employee.
Human systems give an
organization a structure for
tying its operations, culture,
and management together,
even when leaders aren’t
around to remind people.
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it’s good enough for us.” The problem is, they aren’t leading GE or
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it’s good enough for us.” The problem is, they aren’t leading GE or Pepsi. (Anyone working for GE or Pepsi can ignore this.)
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ATERIAL Pepsi. (Anyone working for GE or Pepsi can ignore this.)
The fact is that the best human systems are often the simplest and
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The fact is that the best human systems are often the simplest and least sophisticated ones. Their primary purpose is not to avoid lawsuits
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least sophisticated ones. Their primary purpose is not to avoid lawsuits or emulate what other companies are doing but rather to keep managers
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or emulate what other companies are doing but rather to keep managers and employees focused on what the organization believes is important.
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and employees focused on what the organization believes is important. customized performance review form that man
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customized performance review form that managers embrace and take seriously is always better than a seven
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agers embrace and take seriously is always better than a sevenone designed by an organizational psychologist from the
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one designed by an organizational psychologist from the National Institute for Human Transformation and Bureaucracy (there
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National Institute for Human Transformation and Bureaucracy (there
This point cannot be
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This point cannot be overstated. Human systems
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overstated. Human systems are tools for reinforcement of
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are tools for reinforcement of clarity. They give an organiCOPYRIG
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clarity. They give an organization a structure for tying COPYRIG
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zation a structure for tying NOT FOR R
ESALEor emulate what other companies are doing but rather to keep managers
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or emulate what other companies are doing but rather to keep managers and employees focused on what the organization believes is important.
NOT FOR RESALEand employees focused on what the organization believes is important.
customized performance review form that man
NOT FOR RESALEcustomized performance review form that man
agers embrace and take seriously is always better than a seven
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agers embrace and take seriously is always better than a sevenone designed by an organizational psychologist from the
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one designed by an organizational psychologist from the National Institute for Human Transformation and Bureaucracy (there
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National Institute for Human Transformation and Bureaucracy (there
This point cannot be
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This point cannot be overstated. Human systems
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overstated. Human systems are tools for reinforcement of NOT FOR R
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are tools for reinforcement of clarity. They give an organiNOT FOR R
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clarity. They give an organi
Patrick Lencioni—The Advantage
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The Advantage
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RecRUITINg ANd HIRINg
Bringing the right people into an organization, and keeping the wrong ones out, is as important as any activity that a leadership team must oversee. Though few leaders will dispute this, not many organizations are good at doing it, for a variety of reasons.
First and foremost, too many organizations have not defined exactly what the right and wrong people look like; that is, they haven’t clarified a meaningful set of behavioral values that they can use to screen potential employees. I addressed this when I discussed core values, but it’s worth repeating. Hiring without clear and strict criteria for cultural fit greatly hampers the potential for success of any organization. And even for organizations that have identified the right set of behavioral values, a host of other problems keep many of them from hiring well.
For all the talk about hiring for fit, there is still too much emphasis on technical skills and experience when it comes to interviewing and selection. And this happens at all levels. When push comes to shove, most executives get enamored with what candidates know and have done in their careers and allow those things to overshadow more important behavioral issues. They don’t seem to buy into the notion that you can teach skill but not attitude.
And even organizations that have defined their core values and really do believe that those values should trump everything else sometimes lose their way when it comes to ensuring cultural fit because they don’t have the right kind of process for hiring. I’ve found that most companies fall into one of two categories on opposite sides of the structural scale for hiring.
Gut Feel Versus Structure
Many leaders, especially those who run smaller organizations, believe that they have the natural skills they need to choose good people
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exactly what the right and wrong people look like; that is, they haven’t
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exactly what the right and wrong people look like; that is, they haven’t clarified a meaningful set of behavioral values that they can use to
COPYRIGHTED M
ATERIAL clarified a meaningful set of behavioral values that they can use to
screen potential employees. I addressed this when I discussed core
COPYRIGHTED M
ATERIAL screen potential employees. I addressed this when I discussed core
values, but it’s worth repeating. Hiring without clear and strict criteria
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values, but it’s worth repeating. Hiring without clear and strict criteria for cultural fit greatly hampers the potential for success of any organiza
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for cultural fit greatly hampers the potential for success of any organization. And even for organizations that have identified the right set of
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tion. And even for organizations that have identified the right set of behavioral values, a host of other problems keep many of them from
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behavioral values, a host of other problems keep many of them from
For all the talk about hiring for fit, there is still too much emphasis
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For all the talk about hiring for fit, there is still too much emphasis
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on technical skills and experience when it comes to interviewing and
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on technical skills and experience when it comes to interviewing and selection. And this happens at all levels. When push comes to shove,
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selection. And this happens at all levels. When push comes to shove, most executives get enamored with what candidates know and have
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most executives get enamored with what candidates know and have done in their careers and allow those things to overshadow more impor
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done in their careers and allow those things to overshadow more impor
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tant behavioral issues. They don’t seem to buy into the notion that you
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tant behavioral issues. They don’t seem to buy into the notion that you can teach skill but not attitude.
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can teach skill but not attitude.And even organizations that have defined their core values and COPYRIG
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And even organizations that have defined their core values and NOT FOR R
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for cultural fit greatly hampers the potential for success of any organization. And even for organizations that have identified the right set of
NOT FOR RESALEtion. And even for organizations that have identified the right set of
behavioral values, a host of other problems keep many of them from
NOT FOR RESALEbehavioral values, a host of other problems keep many of them from
For all the talk about hiring for fit, there is still too much emphasis
NOT FOR RESALE
For all the talk about hiring for fit, there is still too much emphasis
NOT FOR RESALE
on technical skills and experience when it comes to interviewing and
NOT FOR RESALE
on technical skills and experience when it comes to interviewing and selection. And this happens at all levels. When push comes to shove,
NOT FOR RESALE
selection. And this happens at all levels. When push comes to shove, most executives get enamored with what candidates know and have
NOT FOR RESALE
most executives get enamored with what candidates know and have done in their careers and allow those things to overshadow more impor
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done in their careers and allow those things to overshadow more impor
NOT FOR RESALE
tant behavioral issues. They don’t seem to buy into the notion that you
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tant behavioral issues. They don’t seem to buy into the notion that you can teach skill but not attitude.NOT FOR R
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can teach skill but not attitude.
Patrick Lencioni—The Advantage
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without any real process. They look back at their careers and remember the good employees they’ve hired and give themselves credit for having recognized those people’s potential. However, they seem to block out the memories of the unsuccessful hires they’ve made, or they justify those mistakes based on the hidden behavioral deficiencies in the people they later had to fire. Whatever the case, they persist in the belief that they know a good person when they see one and that they can go about the hiring process without much structure.
The screening, interviewing, and evaluation process that exists in these leaders’ organizations tends to be not much of a process at all. Although résumés may be closely scrutinized before bringing a candidate in for interviews, the interviews themselves are often unstructured and unplanned. There is little preparation, if any, and no real strategy for identifying the critical signs that indicate a candidate will be successful.
It’s truly stupefying to think that the most important decision a leader can make—who to invite to become a part of the organization—is often handled in such a cavalier way. One of the reasons this persists, I think, has to do with the considerable time lag between when a bad hiring decision is made and when everyone realizes the problem. Somehow leaders fail to make a causeandeffect connection between their initial lack of a rigorous interviewing process and the spotty record of quality hiring that comes about as a result. I’ve become convinced of this because I’ve seen too many leaders who, even after admitting that they made a bad hire, fail to change their approach.
The other extreme, though slightly less common, doesn’t yield much better results. When organizations overstructure their hiring process by adding layers of bureaucratic forms and approvals and analysis, they often diminish the role that judgment must play in the selection of good people. This is more common in larger organizations, where an overemphasis on administrative processes seems to hinder the ability or desire of hiring managers to use common sense and
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ATERIAL The screening, interviewing, and evaluation process that exists in
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these leaders’ organizations tends to be not much of a process at all.
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these leaders’ organizations tends to be not much of a process at all. Although résumés may be closely scrutinized before bringing a candi
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Although résumés may be closely scrutinized before bringing a candidate in for interviews, the interviews themselves are often unstructured
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date in for interviews, the interviews themselves are often unstructured and unplanned. There is little preparation, if any, and no real strategy
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and unplanned. There is little preparation, if any, and no real strategy for identifying the critical signs that indicate a candidate will be
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for identifying the critical signs that indicate a candidate will be
It’s truly stupefying to think that the most important decision a
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It’s truly stupefying to think that the most important decision a leader can make—who to invite to become a part of the organization—
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leader can make—who to invite to become a part of the organization—
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is often handled in such a cavalier way. One of the reasons this persists,
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is often handled in such a cavalier way. One of the reasons this persists, I think, has to do with the considerable time lag between when a bad
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I think, has to do with the considerable time lag between when a bad hiring decision is made and when everyone realizes the problem.
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hiring decision is made and when everyone realizes the problem. Somehow leaders fail to make a cause
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Somehow leaders fail to make a cause
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their initial lack of a rigorous interviewing process and the spotty record COPYRIGHTED M
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their initial lack of a rigorous interviewing process and the spotty record of quality hiring that comes about as a result. I’ve become convinced COPYRIG
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of quality hiring that comes about as a result. I’ve become convinced NOT FOR R
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NOT FOR RESALE
date in for interviews, the interviews themselves are often unstructured and unplanned. There is little preparation, if any, and no real strategy
NOT FOR RESALEand unplanned. There is little preparation, if any, and no real strategy
for identifying the critical signs that indicate a candidate will be
NOT FOR RESALEfor identifying the critical signs that indicate a candidate will be
It’s truly stupefying to think that the most important decision a
NOT FOR RESALE
It’s truly stupefying to think that the most important decision a leader can make—who to invite to become a part of the organization—
NOT FOR RESALE
leader can make—who to invite to become a part of the organization—
NOT FOR RESALE
is often handled in such a cavalier way. One of the reasons this persists,
NOT FOR RESALE
is often handled in such a cavalier way. One of the reasons this persists, I think, has to do with the considerable time lag between when a bad
NOT FOR RESALE
I think, has to do with the considerable time lag between when a bad hiring decision is made and when everyone realizes the problem.
NOT FOR RESALE
hiring decision is made and when everyone realizes the problem. Somehow leaders fail to make a causeNOT FOR R
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Somehow leaders fail to make a causetheir initial lack of a rigorous interviewing process and the spotty record NOT FOR R
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their initial lack of a rigorous interviewing process and the spotty record
Patrick Lencioni—The Advantage
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The Advantage
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discernment. Often it is a wellintentioned human resource or legal department that drives these efforts.
Like all subject matter experts, HR departments often try to employ the most sophisticated, stateoftheart processes, which often leads them to adopt an overly complicated or academic approach to hiring. This might make sense theoretically, but it is usually difficult to teach managers to adhere to such a process on a large scale. Legal departments, for their part, are usually and understandably focused on avoiding lawsuits that can arise as a result of the interview process or even afterward in the event that an employee is terminated. So they do their best to eliminate subjectivity, which often means judgment, by adding more and more structure. In both cases, the insistence on too much process overshadows the real goal of any effective hiring program: finding people who fit the culture and have the best chance at success.
The best approach to hiring is to put just enough structure in place to ensure a measure of consistency and adherence to core values—and no more. That’s right. When it comes to the continuum of hiring, ironically, I find that it is better to be somewhere closer to having a little less structure than more. I believe this because too much structure almost always interferes with a person’s ability to use their common sense, and because it is far easier to add a little structure later to a fairly bare system than it is to deconstruct an already overcomplicated process.
What might this more balanced approach look like? First, it should probably take no more than one page, front and back, to describe and apply. One side explains the process, along with a description of the core values and related behaviors that indicate a person is a good fit for the organization. This provides interviewers and hiring managers with a list of the observable and discernible traits that must be confirmed or denied in the interview and selection process. The other side of the page can be used for taking notes about the candidate during the interview.
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ments, for their part, are usually and understandably focused on avoid
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ments, for their part, are usually and understandably focused on avoiding lawsuits that can arise as a result of the interview process or even
COPYRIGHTED M
ATERIAL ing lawsuits that can arise as a result of the interview process or even
afterward in the event that an employee is terminated. So they do their
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afterward in the event that an employee is terminated. So they do their best to eliminate subjectivity, which often means judgment, by adding
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best to eliminate subjectivity, which often means judgment, by adding more and more structure. In both cases, the insistence on too much
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more and more structure. In both cases, the insistence on too much process overshadows the real goal of any effective hiring program:
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process overshadows the real goal of any effective hiring program: finding people who fit the culture and have the best chance at success.
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finding people who fit the culture and have the best chance at success.The best approach to hiring is to put just enough structure in place
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The best approach to hiring is to put just enough structure in place to ensure a measure of consistency and adherence to core values—and
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to ensure a measure of consistency and adherence to core values—and no more. That’s right. When it comes to the continuum of hiring,
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no more. That’s right. When it comes to the continuum of hiring, ironically, I find that it is better to be somewhere closer to having a
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ironically, I find that it is better to be somewhere closer to having a little less structure than more. I believe this because too much structure
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little less structure than more. I believe this because too much structure almost always interferes with a person’s ability to use their common
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almost always interferes with a person’s ability to use their common sense, and because it is far easier to add a little structure later to a fairly
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sense, and because it is far easier to add a little structure later to a fairly bare system than it is to deconstruct an already overcomplicated process.COPYRIG
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bare system than it is to deconstruct an already overcomplicated process.What might this more balanced approach look like? First, it should COPYRIG
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What might this more balanced approach look like? First, it should NOT FOR R
ESALEmore and more structure. In both cases, the insistence on too much
NOT FOR RESALE
more and more structure. In both cases, the insistence on too much process overshadows the real goal of any effective hiring program:
NOT FOR RESALEprocess overshadows the real goal of any effective hiring program:
finding people who fit the culture and have the best chance at success.
NOT FOR RESALEfinding people who fit the culture and have the best chance at success.
The best approach to hiring is to put just enough structure in place
NOT FOR RESALE
The best approach to hiring is to put just enough structure in place to ensure a measure of consistency and adherence to core values—and
NOT FOR RESALE
to ensure a measure of consistency and adherence to core values—and no more. That’s right. When it comes to the continuum of hiring,
NOT FOR RESALE
no more. That’s right. When it comes to the continuum of hiring, ironically, I find that it is better to be somewhere closer to having a
NOT FOR RESALE
ironically, I find that it is better to be somewhere closer to having a little less structure than more. I believe this because too much structure
NOT FOR RESALE
little less structure than more. I believe this because too much structure almost always interferes with a person’s ability to use their common
NOT FOR RESALE
almost always interferes with a person’s ability to use their common sense, and because it is far easier to add a little structure later to a fairly NOT FOR R
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sense, and because it is far easier to add a little structure later to a fairly bare system than it is to deconstruct an already overcomplicated process.NOT FOR R
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bare system than it is to deconstruct an already overcomplicated process.
Patrick Lencioni—The Advantage
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Discipline 4: Reinforce Clarity
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Second, all of this should be consistent across departments within an organization. Sure, engineers and marketers and sales people are going to have different technical requirements for employees in their areas, which may require them to have another page or two for their unique criteria. But when it comes to overall cultural fit—by far the most important hiring priority for the leaders of any organization—using a single, simple, consistent process across departments is critical.
InterviewingOnce the values and the forms and any other simple collateral have been created, a process must be put in place for using them. And again, that process must have some structure for the sake of consistency, but more important, it must be simple and flexible.
When it comes to the actual practice of interviewing, many leaders still make the same mistakes that they did forty years ago. First, they have the candidate sit across a desk from them while they ask questions about their résumé. Second, they don’t do enough joint planning with other interviewers and end up asking many of the same questions that everyone else is going to ask. Third, they don’t debrief thoroughly with the other interviewers but instead just send a vague and cursory “thumbs up” or “thumbs down” to whoever is organizing the process.
Because the purpose of an interview should be to best simulate a situation that will give evaluators the most accurate view of how a candidate really behaves, it seems to me that getting them out of the office and doing something slightly more natural and unconventional would be a better idea. Heck, even taking a walk or going shopping is better than sitting behind a desk. The key is to do something that provides evaluators with a real sense of whether the person is going to thrive in the culture of the organization and whether other people are going to enjoy working with him or her.
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Once the values and the forms and any other simple collateral have
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Once the values and the forms and any other simple collateral have been created, a process must be put in place for using them. And again,
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been created, a process must be put in place for using them. And again, that process must have some structure for the sake of consistency, but
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that process must have some structure for the sake of consistency, but more important, it must be simple and flexible.
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more important, it must be simple and flexible.When it comes to the actual practice of interviewing, many
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When it comes to the actual practice of interviewing, many leaders still make the same mistakes that they did forty years ago. First,
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leaders still make the same mistakes that they did forty years ago. First, they have the candidate sit across a desk from them while they ask
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they have the candidate sit across a desk from them while they ask questions about their résumé. Second, they don’t do enough joint plan
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questions about their résumé. Second, they don’t do enough joint plan
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ning with other interviewers and end up asking many of the same
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ning with other interviewers and end up asking many of the same questions that everyone else is going to ask. Third, they don’t debrief
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questions that everyone else is going to ask. Third, they don’t debrief thoroughly with the other interviewers but instead just send a vague
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thoroughly with the other interviewers but instead just send a vague and cursory “thumbs up” or “thumbs down” to whoever is organizing
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and cursory “thumbs up” or “thumbs down” to whoever is organizing
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the process.COPYRIGHTED M
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the process.Because the purpose of an interview should be to best simulate a COPYRIG
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Because the purpose of an interview should be to best simulate a NOT FOR R
ESALEthat process must have some structure for the sake of consistency, but
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that process must have some structure for the sake of consistency, but more important, it must be simple and flexible.
NOT FOR RESALEmore important, it must be simple and flexible.
When it comes to the actual practice of interviewing, many
NOT FOR RESALEWhen it comes to the actual practice of interviewing, many
leaders still make the same mistakes that they did forty years ago. First,
NOT FOR RESALE
leaders still make the same mistakes that they did forty years ago. First, they have the candidate sit across a desk from them while they ask
NOT FOR RESALE
they have the candidate sit across a desk from them while they ask questions about their résumé. Second, they don’t do enough joint plan
NOT FOR RESALE
questions about their résumé. Second, they don’t do enough joint plan
NOT FOR RESALE
ning with other interviewers and end up asking many of the same
NOT FOR RESALE
ning with other interviewers and end up asking many of the same questions that everyone else is going to ask. Third, they don’t debrief
NOT FOR RESALE
questions that everyone else is going to ask. Third, they don’t debrief thoroughly with the other interviewers but instead just send a vague
NOT FOR RESALE
thoroughly with the other interviewers but instead just send a vague and cursory “thumbs up” or “thumbs down” to whoever is organizing NOT FOR R
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and cursory “thumbs up” or “thumbs down” to whoever is organizing
Patrick Lencioni—The Advantage
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Hiring for Fit
One large company that is legendary in its hiring practices,
as evidenced by its bottom-line performance and the long
line of candidates who want to work there, took a unique
approach to weeding out people who wouldn’t fit the culture.
That culture was built around a healthy sense of self-
deprecation and humility.
In the process of interviewing a group of people for a
job that requires great responsibility and technical ability, the
candidates (all of whom happened to be men) were asked
to exchange their formal suit pants for a pair of khaki shorts.
This meant they would be spending the rest of the day
walking around the corporation’s headquarters wearing suit
jackets, ties, dress shoes, dark socks, and shorts! They looked
silly, to say the least.
A handful of those candidates found the situation
beneath them and insulting. Some were visibly uncomfort-
able, and a few others decided to leave and opt out of the
process. The company’s reaction to all this was relief; they
had successfully identified those people who, though techni-
cally qualified, did not fit the culture. While some might
consider this process to be humorously cruel, it is actually a
great service to the job candidates and the organization. It
prevented a number of people from having to endure a
painful and unsuccessful employment experience, and it pre-
vented the happy employees who already worked at the
organization from seeing the culture they love diluted. And
that’s to say nothing of the money it saved the organization
by avoiding unnecessary turnover.
Of course, the only way to make all this work is for evaluators to get together after interviewing candidates to hash out what they observed and what collective conclusions they’ve come to.
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In the process of interviewing a group of people for a
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In the process of interviewing a group of people for a
job that requires great responsibility and technical ability, the
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ATERIAL job that requires great responsibility and technical ability, the
candidates (all of whom happened to be men) were asked
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candidates (all of whom happened to be men) were asked
to exchange their formal suit pants for a pair of khaki shorts.
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to exchange their formal suit pants for a pair of khaki shorts.
This meant they would be spending the rest of the day
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This meant they would be spending the rest of the day
walking around the corporation’s headquarters wearing suit
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walking around the corporation’s headquarters wearing suit
jackets, ties, dress shoes, dark socks, and shorts! They looked
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jackets, ties, dress shoes, dark socks, and shorts! They looked
A handful of those candidates found the situation
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A handful of those candidates found the situation
beneath them and insulting. Some were visibly uncomfort-
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beneath them and insulting. Some were visibly uncomfort-
able, and a few others decided to leave and opt out of the
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able, and a few others decided to leave and opt out of the
process. The company’s reaction to all this was relief; they
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process. The company’s reaction to all this was relief; they
had successfully identified those people who, though techni-
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had successfully identified those people who, though techni-
cally qualified, did not fit the culture. While some might
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cally qualified, did not fit the culture. While some might
consider this process to be humorously cruel, it is actually a
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consider this process to be humorously cruel, it is actually a
great service to the job candidates and the organization. It COPYRIGHTED M
ATERIAL
great service to the job candidates and the organization. It
prevented a number of people from having to endure a COPYRIGHTED M
ATERIAL
prevented a number of people from having to endure a
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This meant they would be spending the rest of the day
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This meant they would be spending the rest of the day
walking around the corporation’s headquarters wearing suit
NOT FOR RESALEwalking around the corporation’s headquarters wearing suit
jackets, ties, dress shoes, dark socks, and shorts! They looked
NOT FOR RESALEjackets, ties, dress shoes, dark socks, and shorts! They looked
A handful of those candidates found the situation
NOT FOR RESALE
A handful of those candidates found the situation
beneath them and insulting. Some were visibly uncomfort-
NOT FOR RESALE
beneath them and insulting. Some were visibly uncomfort-
able, and a few others decided to leave and opt out of the
NOT FOR RESALE
able, and a few others decided to leave and opt out of the
process. The company’s reaction to all this was relief; they
NOT FOR RESALE
process. The company’s reaction to all this was relief; they
had successfully identified those people who, though techni-
NOT FOR RESALE
had successfully identified those people who, though techni-
cally qualified, did not fit the culture. While some might
NOT FOR RESALE
cally qualified, did not fit the culture. While some might
consider this process to be humorously cruel, it is actually a NOT FOR RESALE
consider this process to be humorously cruel, it is actually a
great service to the job candidates and the organization. It NOT FOR RESALE
great service to the job candidates and the organization. It
Patrick Lencioni—The Advantage
La
Discipline 4: Reinforce Clarity
161
There are plenty of books that delve into specifics about hiring and interviewing, so I don’t need to go into any more detail here. However, I will repeat, yet again, that without a clear understanding of what a cultural fit—or misfit—looks like, without a proper mix of consistency and flexibility, and without the active involvement of the leadership team, even the most sophisticated hiring process will fail.
ORIeNTATION
The most memorable time of an employee’s career, and the time with the biggest impact, are his or her first days and weeks on a new job. The impact of first impressions is just that powerful, and healthy companies take advantage of that to move new employees in the right direction. That means orientation shouldn’t revolve around lengthy explanations of benefits and administration but rather around reinforcing the answers to the six critical questions.
When employees get the opportunity to hear their leaders talk about why the organization they joined exists, what behavioral values were used to select them during the hiring process, how the organization plans to succeed, what its top priority is, and who does what at the executive level, they can immediately see how they will contribute to the greater good of that organization. This often sets the tone for their behavior and attitude during their entire tenure with the company and sends them home from work boasting about the professionalism and promise of the company they’re now a part of.
Without a clear understanding
of what a cultural fit or misfit
looks like, and without the
active involvement of the
leadership team, even the
most sophisticated hiring
process will fail.
Lencioni_1522_c06_main.indd 161 1/17/2012 1:47:15 PM
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ATERIAL leadership team, even the
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memorable time of an employee’s career, and the time with
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memorable time of an employee’s career, and the time with the biggest impact, are his or her first days and weeks on a new job.
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the biggest impact, are his or her first days and weeks on a new job. The impact of first impressions is just that powerful, and healthy com
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ATERIAL
The impact of first impressions is just that powerful, and healthy companies take advantage of that to move new employees in the right
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ATERIAL
panies take advantage of that to move new employees in the right direction. That means orientation shouldn’t revolve around lengthy
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direction. That means orientation shouldn’t revolve around lengthy explanations of benefits and administration but rather around reinforc
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explanations of benefits and administration but rather around reinforcing the answers to the six critical questions.COPYRIG
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ing the answers to the six critical questions.When employees get the opportunity to hear their leaders COPYRIG
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When employees get the opportunity to hear their leaders COPYRIGHTED M
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process will fail.
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process will fail.
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memorable time of an employee’s career, and the time with
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memorable time of an employee’s career, and the time with the biggest impact, are his or her first days and weeks on a new job.
NOT FOR RESALE
the biggest impact, are his or her first days and weeks on a new job. The impact of first impressions is just that powerful, and healthy com
NOT FOR RESALE
The impact of first impressions is just that powerful, and healthy companies take advantage of that to move new employees in the right
NOT FOR RESALE
panies take advantage of that to move new employees in the right direction. That means orientation shouldn’t revolve around lengthy
NOT FOR RESALE
direction. That means orientation shouldn’t revolve around lengthy explanations of benefits and administration but rather around reinforcNOT FOR R
ESALE
explanations of benefits and administration but rather around reinforcing the answers to the six critical questions.NOT FOR R
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ing the answers to the six critical questions.NOT FOR RESALE
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Patrick Lencioni—The Advantage
La
The Advantage
162
Contrast this with the way so many organizations handle orientation. Rather than seeing it as the first opportunity to reinforce the most important messages of the firm, they delegate responsibility to administrative functions that will naturally focus on, well, administrative functions. And while that may help the new employee understand how to fill out insurance paperwork and use the new email system (both of which are surely helpful), it tends to be a disappointment to anyone who joins an organization because they’re excited about having the opportunity to make a real difference in some way.
Leaders of organizations, even very large organizations, need to understand the value of bringing in new employees with clarity, enthusiasm, and a sense of their importance. It is an opportunity that disappears within days or weeks of a new employee’s arrival and should never be wasted.
There are many ways to handle orientation, and I don’t need to go into them here because there is no one right way to do it. What is key is that it is built around the six questions and that leaders take an active role in its design and delivery. That’s probably enough about orientation.
PeRFORmANce mANAgemeNT
Nothing has the potential for bureaucracy and wonkiness like performance management systems. Even the term itself is fuzzy and generic enough to send a busy manager into a process coma. And so I suppose it needs to be defined.
Essentially performance management is the series of activities that ensures that managers provide employees with clarity about what is expected of them, as well as regular feedback about whether or not they are adequately meeting those expectations. That may be a bit simple, but that’s the heart of the idea, and it really ought to be simple. Unfortunately, few organizations are good at performance management,
Lencioni_1522_c06_main.indd 162 1/17/2012 1:47:15 PM
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who joins an organization because they’re excited about having the
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who joins an organization because they’re excited about having the
Leaders of organizations, even very large organizations, need to
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ATERIAL
Leaders of organizations, even very large organizations, need to understand the value of bringing in new employees with clarity, enthu
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ATERIAL
understand the value of bringing in new employees with clarity, enthusiasm, and a sense of their importance. It is an opportunity that disap
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siasm, and a sense of their importance. It is an opportunity that disappears within days or weeks of a new employee’s arrival and should never
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ATERIAL
pears within days or weeks of a new employee’s arrival and should never
There are many ways to handle orientation, and I don’t need to go
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ATERIAL
There are many ways to handle orientation, and I don’t need to go into them here because there is no one right way to do it. What is
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ATERIAL
into them here because there is no one right way to do it. What is key is that it is built around the six questions and that leaders take an
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ATERIAL
key is that it is built around the six questions and that leaders take an active role in its design and delivery. That’s probably enough about
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active role in its design and delivery. That’s probably enough about
OR
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ORm
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mAN
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AN
has the potential for bureaucracy and wonkiness like perforCOPYRIGHTED M
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has the potential for bureaucracy and wonkiness like perforNOT FOR R
ESALEsiasm, and a sense of their importance. It is an opportunity that disap
NOT FOR RESALE
siasm, and a sense of their importance. It is an opportunity that disappears within days or weeks of a new employee’s arrival and should never
NOT FOR RESALEpears within days or weeks of a new employee’s arrival and should never
There are many ways to handle orientation, and I don’t need to go
NOT FOR RESALE
There are many ways to handle orientation, and I don’t need to go into them here because there is no one right way to do it. What is
NOT FOR RESALE
into them here because there is no one right way to do it. What is key is that it is built around the six questions and that leaders take an
NOT FOR RESALE
key is that it is built around the six questions and that leaders take an active role in its design and delivery. That’s probably enough about
NOT FOR RESALE
active role in its design and delivery. That’s probably enough about
ce NOT FOR RESALE
ce mANOT FOR RESALE
mANANOT FOR RESALE
NA
Patrick Lencioni—The Advantage
La
Discipline 4: Reinforce Clarity
163
mostly because they are confused and inconsistent about why they do it in the first place.
Over the years, as the litigiousness of society has grown, leaders have become more fearful that employees who are fired will sue the company and bleed them of scarce financial resources. This is understandable when we consider the exorbitant cost, in time and money, of having to mount a legal defense, even if we eventually win. So legal departments have tried to use the performance management process to protect the company legally. They’ve insisted that managers master the art of detailed documentation and record keeping, something that can be used to derail a lawsuit before it gets too expensive.
As logical as this might seem, the unintended consequences have been devastating. Most important, employees and managers alike have come to see the performance management process as a largely adversarial activity, fraught with nervous negotiation rather than clear communication. Ironically, this has probably exacerbated the legal problems of organizations more than mitigated them. When employees focus more on the official “grades” they receive from managers, and managers focus on documentation more than coaching, inevitably trust is diminished and management and communication suffer.
Healthy organizations believe that performance management is almost exclusively about eliminating confusion. They realize that most of their employees want to succeed, and that the best way to allow them to do that is to give them clear direction, regular information about how they’re doing, and access to the coaching they need. Healthy organizations also realize that even the most rigorous systems cannot prevent all lawsuits and that sacrificing the real purpose of their performance management system to prevent them, even if that were possible, is a bad tradeoff.
The best performance management programs—you guessed it—are simple. Above all else, they are desi gned to stimulate the right kinds
Lencioni_1522_c06_main.indd 163 1/17/2012 1:47:15 PM
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win. So legal departments have tried to use the performance manage
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win. So legal departments have tried to use the performance management process to protect the company legally. They’ve insisted that
COPYRIGHTED M
ATERIAL ment process to protect the company legally. They’ve insisted that
managers master the art of detailed documentation and record keeping,
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ATERIAL
managers master the art of detailed documentation and record keeping, something that can be used to derail a lawsuit before it gets too
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ATERIAL
something that can be used to derail a lawsuit before it gets too
As logical as this might seem, the unintended consequences have
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ATERIAL
As logical as this might seem, the unintended consequences have been devastating. Most important, employees and managers alike have
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been devastating. Most important, employees and managers alike have come to see the performance management process as a largely adver
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come to see the performance management process as a largely adversarial activity, fraught with nervous negotiation rather than clear com
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sarial activity, fraught with nervous negotiation rather than clear com
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munication. Ironically, this has probably exacerbated the legal problems
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munication. Ironically, this has probably exacerbated the legal problems of organizations more than mitigated them. When employees focus
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of organizations more than mitigated them. When employees focus more on the official “grades” they receive from managers, and managers
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more on the official “grades” they receive from managers, and managers focus on documentation more than coaching, inevitably trust is dimin
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focus on documentation more than coaching, inevitably trust is dimin
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ished and management and communication suffer.
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ished and management and communication suffer.Healthy organizations believe that performance management is COPYRIG
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Healthy organizations believe that performance management is almost exclusively about eliminating confusion. They realize that most COPYRIG
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almost exclusively about eliminating confusion. They realize that most NOT FOR R
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NOT FOR RESALEAs logical as this might seem, the unintended consequences have
been devastating. Most important, employees and managers alike have
NOT FOR RESALEbeen devastating. Most important, employees and managers alike have
come to see the performance management process as a largely adver
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come to see the performance management process as a largely adversarial activity, fraught with nervous negotiation rather than clear com
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sarial activity, fraught with nervous negotiation rather than clear com
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munication. Ironically, this has probably exacerbated the legal problems
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munication. Ironically, this has probably exacerbated the legal problems of organizations more than mitigated them. When employees focus
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of organizations more than mitigated them. When employees focus more on the official “grades” they receive from managers, and managers
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more on the official “grades” they receive from managers, and managers focus on documentation more than coaching, inevitably trust is dimin
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focus on documentation more than coaching, inevitably trust is dimin
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ished and management and communication suffer.NOT FOR RESALE
ished and management and communication suffer.Healthy organizations believe that performance management is NOT FOR R
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Healthy organizations believe that performance management is
Patrick Lencioni—The Advantage
La
The Advantage
164
of conversations around the right topics. Those topics are some of the same ones I have addressed in achieving organizational clarity:
goals, values, and roles and responsibilities. When organizations build simple, straightfor ward performance management programs, they make it much easier for managers to use them more frequently. This is a good thing because it provides regular reminders for empl
oyees about what is important and builds greater trust by preventing too much time from passing between meaningful conversations.
Another part of the overall performance management system has to do with corrective action and documentation of warnings before an employee can be terminated. This is messy and nasty and, unfortunately, necessary. I’ll leave this topic for the lawyers and HR folks who understand it best. However, I will say that it is critical that organizations separate corrective action processes from the regular performance management system, because the last thing an organization wants is for its good employees to feel as if they’re being interrogated and prepared for dismissal.
cOmPeNSATION ANd ReWARdS
Don’t worry. I’m not going to go into much detail about this subject. Again, there are many books on the topic and consultants who know much, much more about the technical aspects of compensation and rewards systems than I do. The point that needs to be made here is that the single most important reason to reward people is to provide them with an incentive for doing what is best for the organization.
The best performance
management programs are
designed to stimulate the right
kinds of conversations around
the right topics. That’s all.
Lencioni_1522_c06_main.indd 164 1/17/2012 1:47:15 PM
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make it much easier for
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make it much easier for managers to use them more
COPYRIGHTED M
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frequently. This is a good
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frequently. This is a good thing because it provides
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thing because it provides regular reminders for empl
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regular reminders for employees about what is important and builds greater trust by preventing
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oyees about what is important and builds greater trust by preventing too much time from passing between meaningful conversations.
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too much time from passing between meaningful conversations.Another part of the overall performance management system has
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Another part of the overall performance management system has to do with corrective action and documentation of warnings before an
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to do with corrective action and documentation of warnings before an employee can be terminated. This is messy and nasty and, unfortu
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employee can be terminated. This is messy and nasty and, unfortunately, necessary. I’ll leave this topic for the lawyers and HR folks who
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nately, necessary. I’ll leave this topic for the lawyers and HR folks who understand it best. However, I will say that it is critical that organiza
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understand it best. However, I will say that it is critical that organizations separate corrective action processes from the regular performance
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tions separate corrective action processes from the regular performance management system, because the last thing an organization wants is for
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management system, because the last thing an organization wants is for its good employees to feel as if they’re being interrogated and prepared COPYRIG
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its good employees to feel as if they’re being interrogated and prepared for dismissal.COPYRIG
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for dismissal.NOT FOR R
ESALEregular reminders for empl
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regular reminders for employees about what is important and builds greater trust by preventing
NOT FOR RESALEoyees about what is important and builds greater trust by preventing
too much time from passing between meaningful conversations.
NOT FOR RESALEtoo much time from passing between meaningful conversations.
Another part of the overall performance management system has
NOT FOR RESALE
Another part of the overall performance management system has to do with corrective action and documentation of warnings before an
NOT FOR RESALE
to do with corrective action and documentation of warnings before an employee can be terminated. This is messy and nasty and, unfortu
NOT FOR RESALE
employee can be terminated. This is messy and nasty and, unfortunately, necessary. I’ll leave this topic for the lawyers and HR folks who
NOT FOR RESALE
nately, necessary. I’ll leave this topic for the lawyers and HR folks who understand it best. However, I will say that it is critical that organiza
NOT FOR RESALE
understand it best. However, I will say that it is critical that organizations separate corrective action processes from the regular performance
NOT FOR RESALE
tions separate corrective action processes from the regular performance management system, because the last thing an organization wants is for NOT FOR R
ESALE
management system, because the last thing an organization wants is for its good employees to feel as if they’re being interrogated and prepared NOT FOR R
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its good employees to feel as if they’re being interrogated and prepared
Patrick Lencioni—The Advantage
La
Discipline 4: Reinforce Clarity
165
Yes, this sounds patently obvious, but somehow most companies’ compensation and rewards programs get divorced from this purpose, and take on a disconnected life of their own. When that happens, they lose their value and actually become sources of distraction rather than tools of focus and motivation.
Members of a leadership team must take responsibility for ensuring that compensation and rewards programs are simple, understandable, and, most important of all, clearly designed to remind employees what is most important. This is especially true at the executive level because the way that leaders themselves are rewarded and compensated will inevitably have an impact on how they motivate their people.
At the core of any of these systems must lie the answers to the six critical questions. For instance, when employees are given a raise, they need to understand that they are being rewarded for behaving or performing in a way that is consistent with the organization’s reason for existing, core values, strategic anchors, or thematic goal. And when employees are denied a raise or a bonus, they need to understand that it is because they did not behave or perform in a way that is consistent with all those things. These are great moments of truth for leaders to demonstrate that they are really committed to what they say is important. To fail to make the connection between compensation and rewards and one or more of the six big questions is to waste one of the best opportunities for motivation and management.
I realize that not every compensation decision is easy to connect to a specific performance or behavior that ties to one of the six big questions. And I realize that sometimes an employee gets a two percent raise because that’s all that his or her manager could get for that person. In those situations, it is critical that leaders are clear with employees about the disconnect between performance and financial reward and that they work to eliminate that disconnect.
Lencioni_1522_c06_main.indd 165 1/17/2012 1:47:15 PM
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able, and, most important of all, clearly designed to remind employees
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able, and, most important of all, clearly designed to remind employees what is most important. This is especially true at the executive
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ATERIAL what is most important. This is especially true at the executive
level because the way that leaders themselves are rewarded and com
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level because the way that leaders themselves are rewarded and compensated will inevitably have an impact on how they motivate their
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pensated will inevitably have an impact on how they motivate their
At the core of any of these systems must lie the answers to the
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At the core of any of these systems must lie the answers to the six critical questions. For instance, when employees are given a
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six critical questions. For instance, when employees are given a raise, they need to understand that they are being rewarded for
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raise, they need to understand that they are being rewarded for behaving or performing in a way that is consistent with the organiza
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behaving or performing in a way that is consistent with the organiza
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tion’s reason for existing, core values, strategic anchors, or thematic
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tion’s reason for existing, core values, strategic anchors, or thematic goal. And when employees are denied a raise or a bonus, they need
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goal. And when employees are denied a raise or a bonus, they need to understand that it is because they did not behave or perform in a
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to understand that it is because they did not behave or perform in a way that is consistent with all those things. These are great moments
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way that is consistent with all those things. These are great moments
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of truth for leaders to demonstrate that they are really committed to
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of truth for leaders to demonstrate that they are really committed to what they say is important. To fail to make the connection between COPYRIG
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what they say is important. To fail to make the connection between compensation and rewards and one or more of the six big questions COPYRIG
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compensation and rewards and one or more of the six big questions NOT FOR R
ESALEAt the core of any of these systems must lie the answers to the
NOT FOR RESALEAt the core of any of these systems must lie the answers to the
six critical questions. For instance, when employees are given a
NOT FOR RESALEsix critical questions. For instance, when employees are given a
raise, they need to understand that they are being rewarded for
NOT FOR RESALE
raise, they need to understand that they are being rewarded for behaving or performing in a way that is consistent with the organiza
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behaving or performing in a way that is consistent with the organiza
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tion’s reason for existing, core values, strategic anchors, or thematic
NOT FOR RESALE
tion’s reason for existing, core values, strategic anchors, or thematic goal. And when employees are denied a raise or a bonus, they need
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goal. And when employees are denied a raise or a bonus, they need to understand that it is because they did not behave or perform in a
NOT FOR RESALE
to understand that it is because they did not behave or perform in a way that is consistent with all those things. These are great moments
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way that is consistent with all those things. These are great moments
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of truth for leaders to demonstrate that they are really committed to NOT FOR RESALE
of truth for leaders to demonstrate that they are really committed to what they say is important. To fail to make the connection between NOT FOR R
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what they say is important. To fail to make the connection between
Patrick Lencioni—The Advantage
La
The Advantage
166
Real-Time Recognition
One of our consultants was working with the leadership
team of a nonprofit company that was focused on finding
ways to reinforce the company’s values through rewards and
recognition, both formal and informal. As the leaders were
discussing the various employees in the organization, one
woman, a very junior employee, was mentioned for her
amazing work on a big project and how she had clearly
demonstrated the company’s values.
Our consultant asked the company’s leadership team,
“So, have you told this woman that she’s doing a great job
and that you think of her as an example of what you want
from other employees?” Much to the consultant’s surprise,
the executives sheepishly shook their heads.
“Okay, let’s bring her in here.” The executives in the room
wondered if he meant what he said, so he continued. “I’m
serious. Go get her right now, and tell her the things that you
just told me about her.”
A few minutes later, the woman came into the room
where the executive team was meeting. She seemed con-
fused, and even a little petrified, about why her presence
had been so urgently requested, especially when they asked
her to take a seat in the front of the room facing the
entire team.
For the next few minutes, the team asked her questions
about what she had done and gave her a chance to explain
the project and her role in it. Then they began telling her how
RecOgNITION
As important as compensation and rewards are, they aren’t the most effective or important means of motivating people in a healthy organization.
Lencioni_1522_c06_main.indd 166 1/17/2012 1:47:15 PM
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ATERIAL team of a nonprofit company that was focused on finding
COPYRIGHTED M
ATERIAL team of a nonprofit company that was focused on finding
ways to reinforce the company’s values through rewards and
COPYRIGHTED M
ATERIAL ways to reinforce the company’s values through rewards and
recognition, both formal and informal. As the leaders were
COPYRIGHTED M
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recognition, both formal and informal. As the leaders were
discussing the various employees in the organization, one
COPYRIGHTED M
ATERIAL
discussing the various employees in the organization, one
woman, a very junior employee, was mentioned for her
COPYRIGHTED M
ATERIAL
woman, a very junior employee, was mentioned for her
amazing work on a big project and how she had clearly
COPYRIGHTED M
ATERIAL
amazing work on a big project and how she had clearly
demonstrated the company’s values.
COPYRIGHTED M
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demonstrated the company’s values.
Our consultant asked the company’s leadership team,
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Our consultant asked the company’s leadership team,
“So, have you told this woman that she’s doing a great job
COPYRIGHTED M
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“So, have you told this woman that she’s doing a great job
and that you think of her as an example of what you want
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and that you think of her as an example of what you want
from other employees?” Much to the consultant’s surprise,
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from other employees?” Much to the consultant’s surprise,
the executives sheepishly shook their heads.
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the executives sheepishly shook their heads.
“Okay, let’s bring her in here.” The executives in the room
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“Okay, let’s bring her in here.” The executives in the room
wondered if he meant what he said, so he continued. “I’m
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wondered if he meant what he said, so he continued. “I’m
serious. Go get her right now, and tell her the things that you
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serious. Go get her right now, and tell her the things that you
just told me about her.”COPYRIGHTED M
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just told me about her.”NOT FOR R
ESALEwoman, a very junior employee, was mentioned for her
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woman, a very junior employee, was mentioned for her
amazing work on a big project and how she had clearly
NOT FOR RESALEamazing work on a big project and how she had clearly
Our consultant asked the company’s leadership team,
NOT FOR RESALE
Our consultant asked the company’s leadership team,
“So, have you told this woman that she’s doing a great job
NOT FOR RESALE
“So, have you told this woman that she’s doing a great job
and that you think of her as an example of what you want
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and that you think of her as an example of what you want
from other employees?” Much to the consultant’s surprise,
NOT FOR RESALE
from other employees?” Much to the consultant’s surprise,
the executives sheepishly shook their heads.
NOT FOR RESALE
the executives sheepishly shook their heads.
“Okay, let’s bring her in here.” The executives in the room
NOT FOR RESALE
“Okay, let’s bring her in here.” The executives in the room
wondered if he meant what he said, so he continued. “I’m
NOT FOR RESALE
wondered if he meant what he said, so he continued. “I’m
serious. Go get her right now, and tell her the things that you NOT FOR RESALE
serious. Go get her right now, and tell her the things that you
Patrick Lencioni—The Advantage
La
Discipline 4: Reinforce Clarity
167
I like to explain to clients that when leaders fail to tell employees that they’re doing a great job, they might as well be taking money out of their pockets and throwing it into a fire, because they are wasting opportunities to give people the recognition they crave more than anything else. Direct, personal feedback really is the simplest and most effective form of motivation.
So why isn’t this more common? For one, many leaders convince themselves that employees are motivated primarily by money. As a result, they discount the impact of authentic and specific expressions of appreciation and focus instead on financial rewards like raises and bonuses. Additionally, I think many leaders are a little embarrassed by giving praise and are afraid that employees will discount it as a cheap replacement for financial rewards.
What leaders need to under stand is that the vast majority of employees, at all levels of an organization, see financial
much they appreciated her actions and how she had been
a real role model for the rest of the organization in living the
values.
Clearly emotional, the woman almost cried. After she
collected herself, thanked the team, and left, our consultant
didn’t need to say much. He just asked the leaders if they
thought that woman would continue to be a champion of
the values. Of course, they agreed she would, and they
committed to doing more direct, informal recognition in the
future.
Many leaders convince them-
selves that employees are
motivated primarily by money.
As a result, they discount the
impact of authentic and
specific expressions of
appreciation.
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I like to explain to clients that when leaders fail to tell employees
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I like to explain to clients that when leaders fail to tell employees that they’re doing a great job, they might as well be taking money out
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that they’re doing a great job, they might as well be taking money out of their pockets and throwing it into a fire, because they are wasting
COPYRIGHTED M
ATERIAL
of their pockets and throwing it into a fire, because they are wasting opportunities to give people the recognition they crave more than
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opportunities to give people the recognition they crave more than anything else. Direct, personal feedback really is the simplest and most
COPYRIGHTED M
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anything else. Direct, personal feedback really is the simplest and most effective form of motivation.
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effective form of motivation.So why isn’t this more common? For one, many leaders convince
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So why isn’t this more common? For one, many leaders convince themselves that employees are motivated primarily by money. As a
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themselves that employees are motivated primarily by money. As a result, they discount the impact of authentic and specific expressions
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result, they discount the impact of authentic and specific expressions of appreciation and focus
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of appreciation and focus instead on financial rewards
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instead on financial rewards like raises and bonuses. COPYRIG
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like raises and bonuses. Additionally, I think many COPYRIG
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Additionally, I think many
committed to doing more direct, informal recognition in the
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NOT FOR RESALE
that they’re doing a great job, they might as well be taking money out
NOT FOR RESALE
that they’re doing a great job, they might as well be taking money out of their pockets and throwing it into a fire, because they are wasting
NOT FOR RESALEof their pockets and throwing it into a fire, because they are wasting
opportunities to give people the recognition they crave more than
NOT FOR RESALEopportunities to give people the recognition they crave more than
anything else. Direct, personal feedback really is the simplest and most
NOT FOR RESALE
anything else. Direct, personal feedback really is the simplest and most
So why isn’t this more common? For one, many leaders convince
NOT FOR RESALE
So why isn’t this more common? For one, many leaders convince themselves that employees are motivated primarily by money. As a
NOT FOR RESALE
themselves that employees are motivated primarily by money. As a result, they discount the impact of authentic and specific expressions
NOT FOR RESALE
result, they discount the impact of authentic and specific expressions of appreciation and focus
NOT FOR RESALE
of appreciation and focus instead on financial rewards NOT FOR R
ESALE
instead on financial rewards like raises and bonuses. NOT FOR R
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like raises and bonuses.
Patrick Lencioni—The Advantage
La
The Advantage
168
rewards as a satisfier, not a driver. That means they want to receive enough compensation to make them feel good about their job, but additional money doesn’t yield proportionate increases in their job satisfaction. And while they’re not going to turn down an offer of more money, that is not what they’re really looking for. In fact, gratitude, recognition, increased responsibilities, and other forms of genuine appreciation are drivers. That means an employee can never really get enough of those and will always welcome more.
Most organizations simply assign too much importance to financial compensation and too little to the other side of the equation. They often do this because they believe that people who leave their organizations are doing so because they want more money. This is an understandable mistake because that is what many employees say during exit interviews when they’ve already made up their mind to leave. However, almost no employees willingly leave an organization where they are getting the levels of gratitude and appreciation that they deserve just to make a little more money, unless, of course, they are so grossly underpaid that they can’t justify staying in the job for the sake of their livelihood.
Anything for Retention
A friend of mine worked for a management consulting firm
for about six years. He was paid well, but after putting up
with as much neglect and politics as he could stand, he finally
decided to leave.
When he was called in for his exit interview with a senior
manager who had never taken an interest in him before, he
was asked, “What could we have done to keep you here
longer?”
My friend was a little stunned by the hollowness of the
question. After a moment, he just smiled and replied,
“Anything.”
Lencioni_1522_c06_main.indd 168 1/17/2012 1:47:15 PM
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ATERIAL Most organizations simply assign too much importance to financial
COPYRIGHTED M
ATERIAL Most organizations simply assign too much importance to financial
compensation and too little to the other side of the equation. They
COPYRIGHTED M
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compensation and too little to the other side of the equation. They often do this because they believe that people who leave their organiza
COPYRIGHTED M
ATERIAL
often do this because they believe that people who leave their organizations are doing so because they want more money. This is an under
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tions are doing so because they want more money. This is an understandable mistake because that is what many employees say during exit
COPYRIGHTED M
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standable mistake because that is what many employees say during exit interviews when they’ve already made up their mind to leave. However,
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interviews when they’ve already made up their mind to leave. However, almost no employees willingly leave an organization where they are
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almost no employees willingly leave an organization where they are getting the levels of gratitude and appreciation that they deserve just
COPYRIGHTED M
ATERIAL
getting the levels of gratitude and appreciation that they deserve just
COPYRIGHTED M
ATERIAL
to make a little more money, unless, of course, they are so grossly
COPYRIGHTED M
ATERIAL
to make a little more money, unless, of course, they are so grossly underpaid that they can’t justify staying in the job for the sake of their
COPYRIGHTED M
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underpaid that they can’t justify staying in the job for the sake of their
A friend of mine worked for a management consulting firm COPYRIGHTED M
ATERIAL
A friend of mine worked for a management consulting firm NOT FOR R
ESALEtions are doing so because they want more money. This is an under
NOT FOR RESALE
tions are doing so because they want more money. This is an understandable mistake because that is what many employees say during exit
NOT FOR RESALEstandable mistake because that is what many employees say during exit
interviews when they’ve already made up their mind to leave. However,
NOT FOR RESALEinterviews when they’ve already made up their mind to leave. However,
almost no employees willingly leave an organization where they are
NOT FOR RESALE
almost no employees willingly leave an organization where they are getting the levels of gratitude and appreciation that they deserve just
NOT FOR RESALE
getting the levels of gratitude and appreciation that they deserve just
NOT FOR RESALE
to make a little more money, unless, of course, they are so grossly
NOT FOR RESALE
to make a little more money, unless, of course, they are so grossly underpaid that they can’t justify staying in the job for the sake of their
NOT FOR RESALE
underpaid that they can’t justify staying in the job for the sake of their
Anything for RetentionNOT FOR RESALE
Anything for Retention
Patrick Lencioni—The Advantage
La
Discipline 4: Reinforce Clarity
169
The lesson for leaders is not that they should be cheap, but rather that they understand that the healthiest organizations in the world are not necessarily the highestpaying ones and that throwing money at a problem that would be better solved through improved management is a true waste of resources. What is more, unsatisfied employees who receive greater financial compensation as an incentive to stay in an unhealthy organization feel cheapened by the gesture. And they are usually just as determined to eventually find a better place to work.
FIRINg
When I think about firing as a human system, I’m not thinking about it so much in terms of the administrative process that an organization goes through to let someone go. That’s not to say that this isn’t important; the way people are treated as they leave an organization is critical because of how it affects their life and because of the message it sends to the rest of the organization about how its leaders view people.
But when it comes to building a healthy organization, the most important part of the firing process is the very decision to let someone go. That decision needs to be driven, more than anything else, by an organization’s values.
In a healthy organization, a leader who is thinking about letting someone go will evaluate that person against the entirety of the company’s values, paying special attention to the core and permissiontoplay varieties. If an employee’s behavior is consistent with the core and permissiontoplay values, there is a good chance that it would be a mistake to let him go. Essentially he has the raw material to fit into
I tell this story not only because it demonstrates the
importance of nonfinancial factors in job satisfaction, but
also because I think it’s funny.
Lencioni_1522_c06_main.indd 169 1/17/2012 1:47:15 PM
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at a problem that would be better solved through improved man
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at a problem that would be better solved through improved management is a true waste of resources. What is more, unsatisfied employ
COPYRIGHTED M
ATERIAL agement is a true waste of resources. What is more, unsatisfied employ
ees who receive greater financial compensation as an incentive to
COPYRIGHTED M
ATERIAL
ees who receive greater financial compensation as an incentive to stay in an unhealthy organization feel cheapened by the gesture. And
COPYRIGHTED M
ATERIAL
stay in an unhealthy organization feel cheapened by the gesture. And they are usually just as determined to eventually find a better place
COPYRIGHTED M
ATERIAL
they are usually just as determined to eventually find a better place
think about firing as a human system, I’m not thinking about
COPYRIGHTED M
ATERIAL
think about firing as a human system, I’m not thinking about it so much in terms of the administrative process that an organization
COPYRIGHTED M
ATERIAL
it so much in terms of the administrative process that an organization goes through to let someone go. That’s not to say that this isn’t impor
COPYRIGHTED M
ATERIAL
goes through to let someone go. That’s not to say that this isn’t impor
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tant; the way people are treated as they leave an organization is critical
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tant; the way people are treated as they leave an organization is critical because of how it affects their life and because of the message it sends
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ATERIAL
because of how it affects their life and because of the message it sends to the rest of the organization about how its leaders view people.COPYRIG
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to the rest of the organization about how its leaders view people.But when it comes to building a healthy organization, the most COPYRIG
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But when it comes to building a healthy organization, the most NOT FOR R
ESALEthey are usually just as determined to eventually find a better place
NOT FOR RESALE
they are usually just as determined to eventually find a better place
think about firing as a human system, I’m not thinking about
NOT FOR RESALE
think about firing as a human system, I’m not thinking about it so much in terms of the administrative process that an organization
NOT FOR RESALE
it so much in terms of the administrative process that an organization goes through to let someone go. That’s not to say that this isn’t impor
NOT FOR RESALE
goes through to let someone go. That’s not to say that this isn’t impor
NOT FOR RESALE
tant; the way people are treated as they leave an organization is critical
NOT FOR RESALE
tant; the way people are treated as they leave an organization is critical because of how it affects their life and because of the message it sends NOT FOR R
ESALE
because of how it affects their life and because of the message it sends to the rest of the organization about how its leaders view people.NOT FOR R
ESALE
to the rest of the organization about how its leaders view people.
Patrick Lencioni—The Advantage
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The Advantage
170
the organization and be successful. Instead of firing him, the company should take a closer look at how he is being managed and find a way to give him a chance to succeed.
But if the leaders of an organization are clearly convinced that an employee does not fit the core or permissiontoplay values, even if he meets basic performance criteria, they would be advised to gracefully help that person find employment elsewhere.
Keeping a relatively strong performer who is not a cultural fit creates a variety of problems. Most important of all, it sends a loud and
clear message to employees that the organization isn’t all that serious about what it says it believes. Tolerating behavior that flies in the face of core values inspires cynicism and becomes almost impossible to reverse over time. When leaders take the difficult step of letting a strong performer go because of a values mismatch, they
not only send a powerful message about their commitment to their values, they also usually find that the performance of the remaining employees improves because they are no longer being stifled by the behavior of their former colleague.
Keeping a relatively strong
performer who is not a cultural
fit sends a loud and clear
message to employees that the
organization isn’t all that
serious about what it says it
believes.
Addition by Subtraction
Years ago before I started my own consulting firm, I hired a talented
guy to join my department. My staff and I were overwhelmed with
projects, and I was relieved to have found someone who could lighten
the load. He proved to be both competent and hard working, but it
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Keeping a relatively strong performer who is not a cultural fit
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Keeping a relatively strong performer who is not a cultural fit creates a variety of problems. Most important of all, it sends a loud and
COPYRIGHTED M
ATERIAL creates a variety of problems. Most important of all, it sends a loud and
clear message to employees
COPYRIGHTED M
ATERIAL
clear message to employees that the organization isn’t all
COPYRIGHTED M
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that the organization isn’t all that serious about what it
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that serious about what it says it believes. Tolerating
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says it believes. Tolerating behavior that flies in the face
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behavior that flies in the face
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ATERIAL
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message to employees that the
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message to employees that the
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not only send a powerful message about their commitment to their COPYRIGHTED M
ATERIAL
not only send a powerful message about their commitment to their values, they also usually find that the performance of the remaining COPYRIG
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values, they also usually find that the performance of the remaining COPYRIGHTED M
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organization isn’t all that
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organization isn’t all that
serious about what it says it
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serious about what it says it
NOT FOR RESALE
that serious about what it
NOT FOR RESALE
that serious about what it says it believes. Tolerating
NOT FOR RESALEsays it believes. Tolerating
behavior that flies in the face
NOT FOR RESALEbehavior that flies in the face
of core values inspires cyni
NOT FOR RESALE
of core values inspires cynicism and becomes almost
NOT FOR RESALE
cism and becomes almost impossible to reverse over
NOT FOR RESALE
impossible to reverse over
not only send a powerful message about their commitment to their NOT FOR RESALE
not only send a powerful message about their commitment to their NOT FOR RESALE
NOT FOR RESALE
Patrick Lencioni—The Advantage
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Discipline 4: Reinforce Clarity
171
was apparent that he didn’t share my department’s values
of teamwork and selflessness. Still, buried with work, I made
one of the worst mistakes of my career: I promoted him!
Fortunately, my staff members weren’t afraid to tell me
that I had blatantly violated our values by rewarding someone
who wasn’t a cultural fit. I couldn’t deny the boneheadedness
of what I had done, and decided that I would have to manage
the guy to become a better team player.
In just a few weeks, it became clear that he just wasn’t
interested and that his need for attention was a fundamental
part of his personality. Still, he was a talented and productive
worker. So I helped him find another job within the larger
organization, in a department where his personality and
values would be a fit.
Beyond restoring my credibility with my staff members,
something very powerful happened: the performance of my
team improved substantially. Without that one colleague,
someone who clearly didn’t fit the department’s humble,
selfless culture, the rest of the team’s excitement and com-
mitment soared. It was a profound lesson, one that I won’t
forget.
Finally, keeping someone who clearly doesn’t fit culturally is almost always a disservice to that person, who knows that he doesn’t belong and is usually as frustrated as his colleagues are. Letting him go is putting him in a position to find an organization where he does belong and where he’ll be able to thrive.
Lencioni_1522_c06_main.indd 171 1/17/2012 1:47:15 PM
COPYRIGHTED M
ATERIAL In just a few weeks, it became clear that he just wasn’t
COPYRIGHTED M
ATERIAL In just a few weeks, it became clear that he just wasn’t
interested and that his need for attention was a fundamental
COPYRIGHTED M
ATERIAL interested and that his need for attention was a fundamental
part of his personality. Still, he was a talented and productive
COPYRIGHTED M
ATERIAL
part of his personality. Still, he was a talented and productive
worker. So I helped him find another job within the larger
COPYRIGHTED M
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worker. So I helped him find another job within the larger
organization, in a department where his personality and
COPYRIGHTED M
ATERIAL
organization, in a department where his personality and
Beyond restoring my credibility with my staff members,
COPYRIGHTED M
ATERIAL
Beyond restoring my credibility with my staff members,
something very powerful happened: the performance of my
COPYRIGHTED M
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something very powerful happened: the performance of my
team improved substantially. Without that one colleague,
COPYRIGHTED M
ATERIAL
team improved substantially. Without that one colleague,
COPYRIGHTED M
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someone who clearly didn’t fit the department’s humble,
COPYRIGHTED M
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someone who clearly didn’t fit the department’s humble,
selfless culture, the rest of the team’s excitement and com-
COPYRIGHTED M
ATERIAL
selfless culture, the rest of the team’s excitement and com-
mitment soared. It was a profound lesson, one that I won’t
COPYRIGHTED M
ATERIAL
mitment soared. It was a profound lesson, one that I won’t
Finally, keeping someone who clearly doesn’t fit culturally is almost COPYRIGHTED M
ATERIAL
Finally, keeping someone who clearly doesn’t fit culturally is almost always a disservice to that person, who knows that he doesn’t belong COPYRIG
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always a disservice to that person, who knows that he doesn’t belong NOT FOR R
ESALEorganization, in a department where his personality and
NOT FOR RESALE
organization, in a department where his personality and
Beyond restoring my credibility with my staff members,
NOT FOR RESALEBeyond restoring my credibility with my staff members,
something very powerful happened: the performance of my
NOT FOR RESALE
something very powerful happened: the performance of my
team improved substantially. Without that one colleague,
NOT FOR RESALE
team improved substantially. Without that one colleague,
NOT FOR RESALE
someone who clearly didn’t fit the department’s humble,
NOT FOR RESALE
someone who clearly didn’t fit the department’s humble,
selfless culture, the rest of the team’s excitement and com-
NOT FOR RESALE
selfless culture, the rest of the team’s excitement and com-
mitment soared. It was a profound lesson, one that I won’t
NOT FOR RESALE
mitment soared. It was a profound lesson, one that I won’t
Finally, keeping someone who clearly doesn’t fit culturally is almost NOT FOR RESALE
Finally, keeping someone who clearly doesn’t fit culturally is almost
Patrick Lencioni—The Advantage
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The Advantage
172
cHecklIST FOR dIScIPlINe 4: ReINFORce clARITY
Members of a leadership team can be confident that they’ve
mastered this discipline when they can affirm the following
statements:
⎯ The organization has a simple way to ensure that new hires
are carefully selected based on the company’s values.
⎯ New people are brought into the organization by thor-
oughly teaching them about the six elements of clarity.
⎯ Managers throughout the organization have a simple, con-
sistent, and nonbureaucratic system for setting goals and
reviewing progress with employees. That system is custom-
ized around the elements of clarity.
⎯ Employees who don’t fit the values are managed out of the
organization. Poor performers who do fit the values are
given the coaching and assistance they need to succeed.
⎯ Compensation and reward systems are built around the
values and goals of the organization.
Lencioni_1522_c06_main.indd 172 1/17/2012 1:47:15 PM
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ATERIAL are carefully selected based on the company’s values.
COPYRIGHTED M
ATERIAL are carefully selected based on the company’s values.
w people are brought into the organization by thor-
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w people are brought into the organization by thor-
oughly teaching them about the six elements of clarity.
COPYRIGHTED M
ATERIAL
oughly teaching them about the six elements of clarity.
nagers throughout the organization have a simple, con-
COPYRIGHTED M
ATERIAL
nagers throughout the organization have a simple, con-
sistent, and nonbureaucratic system for setting goals and
COPYRIGHTED M
ATERIAL
sistent, and nonbureaucratic system for setting goals and
reviewing progress with employees. That system is custom-
COPYRIGHTED M
ATERIAL
reviewing progress with employees. That system is custom-
ized around the elements of clarity.
COPYRIGHTED M
ATERIAL
ized around the elements of clarity.
ployees who don’t fit the values are managed out of the
COPYRIGHTED M
ATERIAL
ployees who don’t fit the values are managed out of the
organization. Poor performers who do fit the values are
COPYRIGHTED M
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organization. Poor performers who do fit the values are
given the coaching and assistance they need to succeed.
COPYRIGHTED M
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given the coaching and assistance they need to succeed.
mpensation and reward systems are built around the
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mpensation and reward systems are built around the
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values and goals of the organization.
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values and goals of the organization.
NOT FOR RESALE
nagers throughout the organization have a simple, con-
NOT FOR RESALE
nagers throughout the organization have a simple, con-
sistent, and nonbureaucratic system for setting goals and
NOT FOR RESALEsistent, and nonbureaucratic system for setting goals and
reviewing progress with employees. That system is custom-
NOT FOR RESALEreviewing progress with employees. That system is custom-
ized around the elements of clarity.
NOT FOR RESALE
ized around the elements of clarity.
ployees who don’t fit the values are managed out of the
NOT FOR RESALE
ployees who don’t fit the values are managed out of the
organization. Poor performers who do fit the values are
NOT FOR RESALE
organization. Poor performers who do fit the values are
given the coaching and assistance they need to succeed.
NOT FOR RESALE
given the coaching and assistance they need to succeed.
mpensation and reward systems are built around the
NOT FOR RESALE
mpensation and reward systems are built around the
NOT FOR RESALE
NOT FOR RESALE
NOT FOR RESALE
values and goals of the organization.
NOT FOR RESALE
values and goals of the organization.
Patrick Lencioni—The Advantage
La
173
The Centrality of Great Meetings
An organization that has embraced each of the four disciplines will certainly become healthy, making success highly likely. But one
activity, more than any other, will be central to maintaining those disciplines, and sustaining health, over time.
No action, activity, or process is more central to a healthy organiza-tion than the meeting. As dreaded as the “m” word is, as maligned as it has become, there is no better way to have a fundamental impact on an organization than by changing the way it does meetings.
In fact, if someone were to offer me one single piece of evidence to evaluate the health of an organization, I would not ask to see its financial statements, review its product line, or even talk to its employees or customers; I would want to observe the leadership team during a meeting. This is where values are established, discussed, and lived and where decisions around strategy and tactics are vetted, made, and reviewed. Bad meetings are the birthplace of unhealthy
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of Great
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of Great Meetings
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Meetings
n organization that has embraced each of the four disciplines will
COPYRIGHTED M
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n organization that has embraced each of the four disciplines will certainly become healthy, making success highly likely. But one
COPYRIGHTED M
ATERIAL
certainly become healthy, making success highly likely. But one activity, more than any other, will be central to maintaining those
COPYRIGHTED M
ATERIAL
activity, more than any other, will be central to maintaining those disciplines, and sustaining health, over time.
COPYRIGHTED M
ATERIAL
disciplines, and sustaining health, over time.No action, activity, or process is more central to a healthy organiza-COPYRIG
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No action, activity, or process is more central to a healthy organiza-tion than the meeting. As dreaded as the “m” word is, as maligned as COPYRIG
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tion than the meeting. As dreaded as the “m” word is, as maligned as NOT FOR R
ESALEMeetings
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Meetings
n organization that has embraced each of the four disciplines will
NOT FOR RESALE
n organization that has embraced each of the four disciplines will certainly become healthy, making success highly likely. But one
NOT FOR RESALE
certainly become healthy, making success highly likely. But one activity, more than any other, will be central to maintaining those
NOT FOR RESALE
activity, more than any other, will be central to maintaining those disciplines, and sustaining health, over time.NOT FOR R
ESALE
disciplines, and sustaining health, over time.No action, activity, or process is more central to a healthy organiza-NOT FOR R
ESALE
No action, activity, or process is more central to a healthy organiza-
Patrick Lencioni—The Advantage
La
The Advantage
174
organizations, and good meetings are the origin of cohesion, clarity, and communication.
So why in the world do we hate meetings? Probably because they are usually awful. More often than not they are boring, unfocused, wasteful, and frustrating. Somehow we’ve come to accept this—to believe that there is just something inher-
ently wrong with the whole idea of meetings. It’s almost as though we see them as a form of corporate penance, something that is inevitable and must be endured.
Well, I am utterly convinced that there is nothing inherently bad about meetings, nothing that can’t be fixed if we confront the problems we’ve allowed to grow and calcify over the years. I wrote about those problems in a fictional way in my book Death by Meeting.1 In that book I addressed a concept at the heart of the problem with meetings, some-thing I call “meeting stew.”
Meeting Stew
A good way to understand meeting stew is to imagine a clueless cook taking all of the ingredients out of the pantry and the refrigerator and throwing them into one big pot, and then wondering why his concoc-tion doesn’t taste very good. Leaders do the same thing when they put all of their issues into one big discussion, usually called a “staff meeting.” All too often they combine administrative issues and tactical decisions and creative brainstorming and strategic analysis and personnel discus-sions into one exhausting meeting. And like that cook, somehow they are surprised when the result doesn’t turn out so well.
If someone were to offer me
one single piece of evidence to
evaluate the health of an
organization, I would want to
observe the leadership team
during a meeting.
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wasteful, and frustrating.
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wasteful, and frustrating. Somehow we’ve come to
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accept this—to believe that
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accept this—to believe that there is just something inher-
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there is just something inher-ently wrong with the whole idea of meetings. It’s almost as though we
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ently wrong with the whole idea of meetings. It’s almost as though we see them as a form of corporate penance, something that is inevitable
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see them as a form of corporate penance, something that is inevitable
Well, I am utterly convinced that there is nothing inherently bad
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Well, I am utterly convinced that there is nothing inherently bad about meetings, nothing that can’t be fixed if we confront the problems
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about meetings, nothing that can’t be fixed if we confront the problems we’ve allowed to grow and calcify over the years. I wrote about those
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we’ve allowed to grow and calcify over the years. I wrote about those problems in a fictional way in my book
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problems in a fictional way in my book I addressed a concept at the heart of the problem with meetings, some-
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I addressed a concept at the heart of the problem with meetings, some-thing I call “meeting stew.”
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thing I call “meeting stew.”
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Meeting StewNOT FOR R
ESALEently wrong with the whole idea of meetings. It’s almost as though we
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ently wrong with the whole idea of meetings. It’s almost as though we see them as a form of corporate penance, something that is inevitable
NOT FOR RESALEsee them as a form of corporate penance, something that is inevitable
Well, I am utterly convinced that there is nothing inherently bad
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Well, I am utterly convinced that there is nothing inherently bad about meetings, nothing that can’t be fixed if we confront the problems
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about meetings, nothing that can’t be fixed if we confront the problems we’ve allowed to grow and calcify over the years. I wrote about those
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we’ve allowed to grow and calcify over the years. I wrote about those problems in a fictional way in my book
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problems in a fictional way in my book Death by Meeting.
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Death by Meeting.I addressed a concept at the heart of the problem with meetings, some-
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I addressed a concept at the heart of the problem with meetings, some-thing I call “meeting stew.”
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thing I call “meeting stew.”
Patrick Lencioni—The Advantage
La
The Centrality of Great Meetings
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The fact is that the human brain isn’t meant to process so many disparate topics in one sitting. There needs to be greater clarity and focus, which means that there needs to be different kinds of meetings for different kinds of issues. And, yes, that means there will be more meetings, not fewer.
That’s right. Leaders who want healthy organizations cannot try to eliminate or reduce time spent in meetings by combining them or cutting them short. Instead, they have to make sure that they are having the right kinds of meetings, and then they must make those meetings effective. As a result—and trust me when I say this—leaders actually come to look forward to their meetings, even enjoy them. In fact, they get real work done during those meetings which makes their lives, and the lives of their employees, better as a result.
the Four MeetingS
So what kinds of meetings does the leadership team of a healthy orga-nization have? There are four basic types:
Content Timing
Administrative 5−10 minutesDaily
Check-In
WeeklyStaff
AdhocTopical
QuarterlyOff-Site Review
Tactical 45−90 minutes
Strategic 2−4 hours
1−2 daysDevelopmental
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cutting them short. Instead, they have to make sure that they are having
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cutting them short. Instead, they have to make sure that they are having the right kinds of meetings, and then they must make those meetings
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effective. As a result—and trust me when I say this—leaders actually
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effective. As a result—and trust me when I say this—leaders actually come to look forward to their meetings, even enjoy them. In fact, they
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come to look forward to their meetings, even enjoy them. In fact, they get real work done during those meetings which makes their lives, and
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get real work done during those meetings which makes their lives, and the lives of their employees, better as a result.
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the lives of their employees, better as a result.
S
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S
what kinds of meetings does the leadership team of a healthy orga-
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what kinds of meetings does the leadership team of a healthy orga-
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nization have? There are four basic types:
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nization have? There are four basic types:
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Content NOT FOR RESALE
get real work done during those meetings which makes their lives, and
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get real work done during those meetings which makes their lives, and
what kinds of meetings does the leadership team of a healthy orga-
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what kinds of meetings does the leadership team of a healthy orga-
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nization have? There are four basic types:
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nization have? There are four basic types:
Patrick Lencioni—The Advantage
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The Advantage
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1. Daily Check-InsThe first category of meetings is the least important but certainly worth doing when it is practically possible. Essentially, it’s about the team getting into the habit of gathering once a day, for no more than ten minutes, to clear the air about anything administrative that would be helpful to know. Schedules. Events. Issue alerts. That kind of stuff.
There are no agendas and no resolution of issues, just an exchange of information. To make sure that these meetings don’t morph into something they shouldn’t, it’s even best if people don’t sit down. The purpose of these daily administrative check-ins is simply to get the team accustomed to talking on a regular basis and to provide a forum for addressing the uber-tactical kinds of issues that get in the way of more important issues at staff meetings.
Plenty of leadership teams will protest having to do daily check-ins. Some of their reasons are valid, others not.
A good reason not to do daily check-ins is that members of the team are so spread out geographically that it isn’t practical to expect them to get together every day. That’s not to say that some virtual teams don’t find a way to do this by phone. But when it takes heroic efforts on the part of people in multiple time zones to make a daily conference call work, it can become just another form of drudgery. In those cases, not doing them is fine.
When team members work in the same location, there are no good reasons for rejecting the daily check-in. But what if some team members are out of the office? Have the session without them and let them know they can call in if they’re able. No pressure. What if people have other meetings during that time? First, don’t schedule meetings during that ten-minute period, but in the odd event that it is inevitable, don’t worry about it. Everyone else can meet. What if people feel they are too busy? That’s a bad excuse. Here’s why.
The most powerful impact of having teams meet every day is the quick resolution of minor issues that might otherwise fester and create
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of information. To make sure that these meetings don’t morph into
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of information. To make sure that these meetings don’t morph into something they shouldn’t, it’s even best if people don’t sit down. The
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purpose of these daily administrative check-ins is simply to get the team
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purpose of these daily administrative check-ins is simply to get the team accustomed to talking on a regular basis and to provide a forum for
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accustomed to talking on a regular basis and to provide a forum for addressing the uber-tactical kinds of issues that get in the way of more
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addressing the uber-tactical kinds of issues that get in the way of more
Plenty of leadership teams will protest having to do daily check-ins.
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Plenty of leadership teams will protest having to do daily check-ins. Some of their reasons are valid, others not.
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Some of their reasons are valid, others not. to do daily check-ins is that members of the
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to do daily check-ins is that members of the
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team are so spread out geographically that it isn’t practical to expect
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team are so spread out geographically that it isn’t practical to expect them to get together every day. That’s not to say that some virtual teams
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them to get together every day. That’s not to say that some virtual teams don’t find a way to do this by phone. But when it takes heroic efforts
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don’t find a way to do this by phone. But when it takes heroic efforts on the part of people in multiple time zones to make a daily conference
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on the part of people in multiple time zones to make a daily conference
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call work, it can become just another form of drudgery. In those cases,
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call work, it can become just another form of drudgery. In those cases, not doing them is fine.COPYRIG
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not doing them is fine.When team members work in the same location, there are no good COPYRIG
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When team members work in the same location, there are no good NOT FOR R
ESALEaddressing the uber-tactical kinds of issues that get in the way of more
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addressing the uber-tactical kinds of issues that get in the way of more
Plenty of leadership teams will protest having to do daily check-ins.
NOT FOR RESALEPlenty of leadership teams will protest having to do daily check-ins.
Some of their reasons are valid, others not.
NOT FOR RESALE
Some of their reasons are valid, others not. to do daily check-ins is that members of the
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to do daily check-ins is that members of the
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team are so spread out geographically that it isn’t practical to expect
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team are so spread out geographically that it isn’t practical to expect them to get together every day. That’s not to say that some virtual teams
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them to get together every day. That’s not to say that some virtual teams don’t find a way to do this by phone. But when it takes heroic efforts
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don’t find a way to do this by phone. But when it takes heroic efforts on the part of people in multiple time zones to make a daily conference
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on the part of people in multiple time zones to make a daily conference
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call work, it can become just another form of drudgery. In those cases, NOT FOR RESALE
call work, it can become just another form of drudgery. In those cases, not doing them is fine.NOT FOR R
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not doing them is fine.
Patrick Lencioni—The Advantage
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The Centrality of Great Meetings
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unnecessary busywork for the team. For instance, when teams members don’t see each other more than once a week, or even less often, they end up trying to resolve the endless administrative issues that surface every day with an e-mail here and a voice mail there and a hallway conversation in between. That sets off a flurry of more e-mails, voice mails, and hallway stops as the situation changes and more people on the team need or want to be looped in. It would be fascinating to actually track and calculate the amount of time and energy that leaders spend chasing down issues that could be sorted out in a thirty-second conversation if everyone were in the same room for a few minutes every day.
A big part of the beauty of the daily check-in is that leaders know they’re going to see their colleagues within twenty-four hours, so rather than firing off an e-mail or a voice mail or interrupting someone in the course of their day, they simply make a note to bring up a small issue at the next day’s meeting. There is something undeniably efficient and liberating about this, which makes the protests I hear from execu-tives all that much more absurd. It’s as though they’re saying, Do you realize how busy we are trying to solve problems that result from our lack of communication? We can’t possibly spend ten minutes every day preventing them!
Once teams get used to the daily check-in, they’re hooked.
Disconnected
The leadership team at a Silicon Valley company imple-
mented the daily check-in begrudgingly at first. Then, after
a few weeks, they got used to the activity and did it gladly
without complaint. Still, they didn’t completely understand
the value of it.
Then, during one particular period when a large
number of leadership team members were on vacation, the
daily check-ins came to a halt. As so often happens, when
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actually track and calculate the amount of time and energy that
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actually track and calculate the amount of time and energy that leaders spend chasing down issues that could be sorted out in a thirty-
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second conversation if everyone were in the same room for a few
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second conversation if everyone were in the same room for a few
A big part of the beauty of the daily check-in is that leaders know
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A big part of the beauty of the daily check-in is that leaders know they’re going to see their colleagues within twenty-four hours, so rather
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they’re going to see their colleagues within twenty-four hours, so rather than firing off an e-mail or a voice mail or interrupting someone in
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than firing off an e-mail or a voice mail or interrupting someone in the course of their day, they simply make a note to bring up a small
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the course of their day, they simply make a note to bring up a small issue at the next day’s meeting. There is something undeniably efficient
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issue at the next day’s meeting. There is something undeniably efficient
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and liberating about this, which makes the protests I hear from execu-
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and liberating about this, which makes the protests I hear from execu-tives all that much more absurd. It’s as though they’re saying,
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tives all that much more absurd. It’s as though they’re saying, realize how busy we are trying to solve problems that result from our lack
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realize how busy we are trying to solve problems that result from our lack of communication? We can’t possibly spend ten minutes every day prevent
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of communication? We can’t possibly spend ten minutes every day prevent
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ing them!
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ing them!Once teams get used to the daily check-in, they’re hooked.COPYRIG
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Once teams get used to the daily check-in, they’re hooked.NOT FOR RESALE
A big part of the beauty of the daily check-in is that leaders know
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A big part of the beauty of the daily check-in is that leaders know they’re going to see their colleagues within twenty-four hours, so rather
NOT FOR RESALEthey’re going to see their colleagues within twenty-four hours, so rather
than firing off an e-mail or a voice mail or interrupting someone in
NOT FOR RESALEthan firing off an e-mail or a voice mail or interrupting someone in
the course of their day, they simply make a note to bring up a small
NOT FOR RESALE
the course of their day, they simply make a note to bring up a small issue at the next day’s meeting. There is something undeniably efficient
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issue at the next day’s meeting. There is something undeniably efficient
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and liberating about this, which makes the protests I hear from execu-
NOT FOR RESALE
and liberating about this, which makes the protests I hear from execu-tives all that much more absurd. It’s as though they’re saying,
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tives all that much more absurd. It’s as though they’re saying, realize how busy we are trying to solve problems that result from our lack
NOT FOR RESALE
realize how busy we are trying to solve problems that result from our lack of communication? We can’t possibly spend ten minutes every day prevent
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of communication? We can’t possibly spend ten minutes every day prevent
Once teams get used to the daily check-in, they’re hooked.NOT FOR RESALE
Once teams get used to the daily check-in, they’re hooked.
Patrick Lencioni—The Advantage
La
The Advantage
178
Getting used to doing the daily meeting will probably take a few weeks or a month. But once it happens, leaders find that they’re build-ing stronger relationships with their peers much more quickly than they thought was possible. Moreover, they’re able to address minor issues quickly so they can be more focused on the right topics during the other three kinds of meetings they need to have.
2. Tactical Staff MeetingsWhen executives complain about meetings, many of them are probably thinking about their weekly or biweekly or monthly staff meetings. This is where meeting stew is usually served.
The truth is, there is no more valuable activity in any organization than the regular staff meeting of a leadership team. But if they are not effective, there is little or no chance of building a cohesive team or a healthy organization.
There are a few critical keys to making staff meetings work, many of which I’ve already discussed in this book. For instance, if there are too many people on a team, or if the people in the room don’t trust each other and aren’t willing to engage in productive conflict, then no matter how you reorganize your meetings you won’t see much impact.
everyone came back to work, the discipline of the daily
meeting didn’t get reestablished.
After a few weeks, team members felt strangely discon-
nected, and after talking about it, they realized that the cause
was not having the daily sessions. The president of the
company explained what happened: “We never realized how
much closer we were to each other, and how much we were
able to avoid wasting time and energy, until we stopped
having the daily check-ins.”
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Getting used to doing the daily meeting will probably take a few
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Getting used to doing the daily meeting will probably take a few weeks or a month. But once it happens, leaders find that they’re build-
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weeks or a month. But once it happens, leaders find that they’re build-ing stronger relationships with their peers much more quickly than they
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ing stronger relationships with their peers much more quickly than they thought was possible. Moreover, they’re able to address minor issues
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thought was possible. Moreover, they’re able to address minor issues quickly so they can be more focused on the right topics during the
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quickly so they can be more focused on the right topics during the other three kinds of meetings they need to have.
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other three kinds of meetings they need to have.
2. Tactical Staff Meetings
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2. Tactical Staff MeetingsWhen executives complain about meetings, many of them are probably
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When executives complain about meetings, many of them are probably
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thinking about their weekly or biweekly or monthly staff meetings. This
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thinking about their weekly or biweekly or monthly staff meetings. This is where meeting stew is usually served.
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is where meeting stew is usually served.The truth is, there is no more valuable activity in any organization COPYRIG
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The truth is, there is no more valuable activity in any organization than the regular staff meeting of a leadership team. But if they are not COPYRIG
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than the regular staff meeting of a leadership team. But if they are not NOT FOR R
ESALEweeks or a month. But once it happens, leaders find that they’re build-
NOT FOR RESALE
weeks or a month. But once it happens, leaders find that they’re build-ing stronger relationships with their peers much more quickly than they
NOT FOR RESALEing stronger relationships with their peers much more quickly than they
thought was possible. Moreover, they’re able to address minor issues
NOT FOR RESALEthought was possible. Moreover, they’re able to address minor issues
quickly so they can be more focused on the right topics during the
NOT FOR RESALE
quickly so they can be more focused on the right topics during the other three kinds of meetings they need to have.
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other three kinds of meetings they need to have.
When executives complain about meetings, many of them are probably
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When executives complain about meetings, many of them are probably
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thinking about their weekly or biweekly or monthly staff meetings. This
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thinking about their weekly or biweekly or monthly staff meetings. This is where meeting stew is usually served.NOT FOR R
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is where meeting stew is usually served.The truth is, there is no more valuable activity in any organization NOT FOR R
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The truth is, there is no more valuable activity in any organization
Patrick Lencioni—The Advantage
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The Centrality of Great Meetings
179
However, assuming that a leadership team has bought into and is working on making their team small enough and behaviorally cohesive, they then need to change a few things about what they do before and during their staff meetings to make them compelling, useful, and yes, even enjoyable.
Real-Time AgendaThe first thing a team must do to improve their staff meetings is really about what they should stop doing before the meeting. I’m referring to the dreaded agenda. Putting together an agenda before a staff meeting is like a marriage counselor deciding what issues she’s going to cover with a couple prior to meeting with them. The fact is, you don’t know what you need to discuss until you’ve come together and assessed the situation.
Instead of putting together an agenda ahead of time, team members need to come together and spend their first ten minutes of a meeting creating a real-time agenda. That involves two steps.
First, the leader needs to go around the room and ask every member of the team to take thirty seconds to report on the two or three key activities that they believe are their top priorities for the week. Notice that I said “that they believe are their top priorities.” See, it’s possible that after everyone explains what they’re doing and the team assesses what’s going on in the organization, people are going to have to reorder their priorities.
Once everyone has taken their thirty seconds to list off, not expound on, their top priorities—most will use only ten or fifteen seconds—the leader moves on to the second part of creating a real-time agenda. This entails reviewing the one-page scorecard or chart that the team created—the one that includes their thematic goal, their defining objectives, and their standard operating objectives. I covered that simple structure in discipline 2 when I discussed the question, What is most important, right now?
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The first thing a team must do to improve their staff meetings is really
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The first thing a team must do to improve their staff meetings is really about what they should stop doing before the meeting. I’m referring to the
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dreaded agenda. Putting together an agenda before a staff meeting is like
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dreaded agenda. Putting together an agenda before a staff meeting is like a marriage counselor deciding what issues she’s going to cover with a couple
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a marriage counselor deciding what issues she’s going to cover with a couple prior to meeting with them. The fact is, you don’t know what you need to
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prior to meeting with them. The fact is, you don’t know what you need to discuss until you’ve come together and assessed the situation.
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discuss until you’ve come together and assessed the situation.Instead of putting together an agenda ahead of time, team members
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Instead of putting together an agenda ahead of time, team members need to come together and spend their first ten minutes of a meeting
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need to come together and spend their first ten minutes of a meeting creating a real-time agenda. That involves two steps.
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creating a real-time agenda. That involves two steps.First, the leader needs to go around the room and ask every member
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First, the leader needs to go around the room and ask every member of the team to take thirty seconds to report on the two or three
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of the team to take thirty seconds to report on the two or three key activities that they believe are their top priorities for the week.
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key activities that they believe are their top priorities for the week. Notice that I said “that they
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Notice that I said “that they possible that after everyone explains what they’re doing and the team
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possible that after everyone explains what they’re doing and the team assesses what’s going on in the organization, people are going to have COPYRIG
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assesses what’s going on in the organization, people are going to have to reorder their priorities.COPYRIG
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to reorder their priorities.NOT FOR R
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prior to meeting with them. The fact is, you don’t know what you need to discuss until you’ve come together and assessed the situation.
NOT FOR RESALEdiscuss until you’ve come together and assessed the situation.
Instead of putting together an agenda ahead of time, team members
NOT FOR RESALEInstead of putting together an agenda ahead of time, team members
need to come together and spend their first ten minutes of a meeting
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need to come together and spend their first ten minutes of a meeting creating a real-time agenda. That involves two steps.
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creating a real-time agenda. That involves two steps.First, the leader needs to go around the room and ask every member
NOT FOR RESALE
First, the leader needs to go around the room and ask every member of the team to take thirty seconds to report on the two or three
NOT FOR RESALE
of the team to take thirty seconds to report on the two or three key activities that they believe are their top priorities for the week.
NOT FOR RESALE
key activities that they believe are their top priorities for the week. Notice that I said “that they
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Notice that I said “that they possible that after everyone explains what they’re doing and the team NOT FOR R
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possible that after everyone explains what they’re doing and the team assesses what’s going on in the organization, people are going to have NOT FOR R
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assesses what’s going on in the organization, people are going to have
Patrick Lencioni—The Advantage
La
The Advantage
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Essentially this part of the meeting is about stepping back and asking, How are we doing against the things we said are most important? And the way teams evaluate themselves is by using an easy and digest-ible means of assessing progress: colors. That’s right. No matter how much data an organization has at its disposal, no matter how intelligent and sophisticated the members of a team may be, the key to quickly sizing up the organization’s progress and deciding where to spend scarce resources is by keeping the evaluation process as simple as possible. I don’t know of a better system than green for “things are good, we’re ahead of schedule,” yellow for “we’re doing okay, but we’re not yet where we ought to be,” and red for “we’re way behind on this one.” (Okay, we allow teams to use lime green and orange for those in-between evaluations.)
It should take a team only five or ten minutes to go through the items on their scorecard, assigning a color to each item. Different people will influence each decision based on their perspective, and that’s good. In fact, leaders always learn a great deal about what is happening when they hear their colleagues’ assessments. “I’d give us a green on
Thematic GoalRebuild credibility
within the business
Defining ObjectivesDeliver on
currentcommitments
Systemreliability
Green = open circle Yellow = medium-shaded circle Red = dark-filled circleLime green = light-dotted circle Orange = heavy-dotted circle
Networksecurity
Businessunit
satisfaction
On-timeprojectdelivery
Staffmorale
Identifystrategicinitiatives
Eliminateintradepartmental
silos
Improvecommunication
with stakeholders
Standard OperatingObjectives
Tactical Meeting Scorecard
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Essentially this part of the meeting is about stepping back and
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Essentially this part of the meeting is about stepping back and How are we doing against the things we said are most important?
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How are we doing against the things we said are most important?And the way teams evaluate themselves is by using an easy and digest-
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And the way teams evaluate themselves is by using an easy and digest-ible means of assessing progress: colors. That’s right. No matter how
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ible means of assessing progress: colors. That’s right. No matter how much data an organization has at its disposal, no matter how intelligent
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much data an organization has at its disposal, no matter how intelligent and sophisticated the members of a team may be, the key to quickly
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and sophisticated the members of a team may be, the key to quickly sizing up the organization’s progress and deciding where to spend scarce
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sizing up the organization’s progress and deciding where to spend scarce resources is by keeping the evaluation process as simple as possible. I COPYRIG
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resources is by keeping the evaluation process as simple as possible. I don’t know of a better system than green for “things are good, we’re COPYRIG
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don’t know of a better system than green for “things are good, we’re
Green = open circle Yellow = medium-shaded circle Red = dark-filled circle
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Green = open circle Yellow = medium-shaded circle Red = dark-filled circleLime green = light-dotted circle Orange = heavy-dotted circle
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Lime green = light-dotted circle Orange = heavy-dotted circle
On-time
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project
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projectdelivery
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delivery
NOT FOR RESALE
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Essentially this part of the meeting is about stepping back and
NOT FOR RESALE
Essentially this part of the meeting is about stepping back and How are we doing against the things we said are most important?
NOT FOR RESALE
How are we doing against the things we said are most important?And the way teams evaluate themselves is by using an easy and digest-
NOT FOR RESALE
And the way teams evaluate themselves is by using an easy and digest-ible means of assessing progress: colors. That’s right. No matter how
NOT FOR RESALE
ible means of assessing progress: colors. That’s right. No matter how much data an organization has at its disposal, no matter how intelligent
NOT FOR RESALE
much data an organization has at its disposal, no matter how intelligent and sophisticated the members of a team may be, the key to quickly
NOT FOR RESALE
and sophisticated the members of a team may be, the key to quickly sizing up the organization’s progress and deciding where to spend scarce NOT FOR R
ESALE
sizing up the organization’s progress and deciding where to spend scarce resources is by keeping the evaluation process as simple as possible. I NOT FOR R
ESALE
resources is by keeping the evaluation process as simple as possible. I NOT FOR RESALEGreen = open circle Yellow = medium-shaded circle Red = dark-filled circle
NOT FOR RESALEGreen = open circle Yellow = medium-shaded circle Red = dark-filled circle
Lime green = light-dotted circle Orange = heavy-dotted circle
NOT FOR RESALELime green = light-dotted circle Orange = heavy-dotted circle
Patrick Lencioni—The Advantage
La
The Centrality of Great Meetings
181
revamping our marketing message,” says one executive. “Are you kidding?” says another. “did you see the results of that focus group last week?” The first executive’s eyes go wide. “No, I didn’t. What did they say?” The second exec explains, “They threw up all over our ideas. We’re back to square one.” And everyone agrees that the color is red.
After the team has assigned their colors—a process that really is as enjoyable as it is informative—then and only then can they agree on what their agenda should be. Basically they will probably focus on the areas on the chart that are red or orange or perhaps one or two others that are particularly critical.
The beauty of this real-time agenda system is that the team will avoid the all-too-common problem of sitting through a presentation or a discussion of something that everyone knows is of little importance to the organization. When leaders put together agendas ahead of time, they’re often influenced by people in the organization who do a good job lobbying them for face time at the next staff meeting. Before anyone knows what’s happening, they’re sitting in a forty-five-minute multi-media presentation about how the HR department selected a vendor for the benefits program, even when the company’s benefits program is nowhere near being worthy of making it on the scorecard. Of course, if the company is experiencing employee turnover because of benefits and that is one of the critical issues facing the team, then by all means they should bring in the director of benefits. But leaders must make that decision because it warrants the time and energy of the leadership team, not because it seemed like a considerate thing to do for someone who wanted some extra attention.
A challenge that many leadership teams struggle with during staff meetings is the distraction that occurs when someone raises a compelling and important topic that shouldn’t be taken on during tactical meetings. While this may seem like a relief to executives who are always thirsty for something new and interesting, it presents two problems.
Lencioni_1522_c07_main.indd 181 1/17/2012 1:47:18 PM
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what their agenda should be. Basically they will probably focus on the
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what their agenda should be. Basically they will probably focus on the areas on the chart that are red or orange or perhaps one or two others
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ATERIAL areas on the chart that are red or orange or perhaps one or two others
The beauty of this real-time agenda system is that the team will
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The beauty of this real-time agenda system is that the team will avoid the all-too-common problem of sitting through a presentation or
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avoid the all-too-common problem of sitting through a presentation or a discussion of something that everyone knows is of little importance
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a discussion of something that everyone knows is of little importance to the organization. When leaders put together agendas ahead of time,
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to the organization. When leaders put together agendas ahead of time, they’re often influenced by people in the organization who do a good
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they’re often influenced by people in the organization who do a good job lobbying them for face time at the next staff meeting. Before anyone
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job lobbying them for face time at the next staff meeting. Before anyone
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knows what’s happening, they’re sitting in a forty-five-minute multi-
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knows what’s happening, they’re sitting in a forty-five-minute multi-media presentation about how the HR department selected a vendor
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media presentation about how the HR department selected a vendor for the benefits program, even when the company’s benefits program
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for the benefits program, even when the company’s benefits program is nowhere near being worthy of making it on the scorecard. Of course,
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is nowhere near being worthy of making it on the scorecard. Of course,
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if the company is experiencing employee turnover because of benefits
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if the company is experiencing employee turnover because of benefits and that is one of the critical issues facing the team, then by all means COPYRIG
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and that is one of the critical issues facing the team, then by all means they should bring in the director of benefits. But leaders must make COPYRIG
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they should bring in the director of benefits. But leaders must make NOT FOR R
ESALEavoid the all-too-common problem of sitting through a presentation or
NOT FOR RESALE
avoid the all-too-common problem of sitting through a presentation or a discussion of something that everyone knows is of little importance
NOT FOR RESALEa discussion of something that everyone knows is of little importance
to the organization. When leaders put together agendas ahead of time,
NOT FOR RESALEto the organization. When leaders put together agendas ahead of time,
they’re often influenced by people in the organization who do a good
NOT FOR RESALE
they’re often influenced by people in the organization who do a good job lobbying them for face time at the next staff meeting. Before anyone
NOT FOR RESALE
job lobbying them for face time at the next staff meeting. Before anyone
NOT FOR RESALE
knows what’s happening, they’re sitting in a forty-five-minute multi-
NOT FOR RESALE
knows what’s happening, they’re sitting in a forty-five-minute multi-media presentation about how the HR department selected a vendor
NOT FOR RESALE
media presentation about how the HR department selected a vendor for the benefits program, even when the company’s benefits program
NOT FOR RESALE
for the benefits program, even when the company’s benefits program is nowhere near being worthy of making it on the scorecard. Of course,
NOT FOR RESALE
is nowhere near being worthy of making it on the scorecard. Of course,
NOT FOR RESALE
if the company is experiencing employee turnover because of benefits NOT FOR RESALE
if the company is experiencing employee turnover because of benefits and that is one of the critical issues facing the team, then by all means NOT FOR R
ESALE
and that is one of the critical issues facing the team, then by all means
Patrick Lencioni—The Advantage
La
The Advantage
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First, it derails the discussion of the more tactical issues that must be addressed during staff meetings. Second, it causes the team to take on critical topics in an environment where they don’t have enough time to achieve resolution and when they are not as informed or prepared as they need to be. That’s why leaders of a healthy organization must also have a third kind of meeting.
3. Adhoc Topical MeetingsProbably the most interesting and compelling of all meetings is the third type: the adhoc topical meeting. In fact, it may be the most fun that leaders can have at work.
The purpose of this kind of meeting is to dig into the critical issues that can have a long-term impact on an organization or that require significant time and energy to resolve: a major competitive threat, a disruptive industry change, a substantial shift in revenue, a significant product or service deficiency, or even a troubling drop in morale, among many others. Any of these issues would warrant more time, energy, and preparation than could ever be given during a regular staff meeting. In fact, it’s difficult to imagine addressing any of them in less than a few hours. It easily takes that much time to frame up an issue, present even a cursory overview of basic research, brainstorm possible solutions, debate the merits of those solutions, and then come to a decision with real commitment.
And yet leadership teams rarely carve out enough time for this. Instead, they try to resolve important issues in fifteen-minute incre-ments in between more tactical and administrative topics during a staff meeting. The result is not only suboptimal decisions, but an immense sense of frustration among leaders. That frustration is most directly the result of knowing that they’re making bad decisions, but also a vague sense that they’re not getting to do what they thought they were going to be doing when they chose their careers in the first place.
Lencioni_1522_c07_main.indd 182 1/17/2012 1:47:18 PM
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ATERIAL Probably the most interesting and compelling of all meetings is the
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ATERIAL Probably the most interesting and compelling of all meetings is the
third type: the adhoc topical meeting. In fact, it may be the most fun
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third type: the adhoc topical meeting. In fact, it may be the most fun
The purpose of this kind of meeting is to dig into the critical issues
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The purpose of this kind of meeting is to dig into the critical issues that can have a long-term impact on an organization or that require
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that can have a long-term impact on an organization or that require significant time and energy to resolve: a major competitive threat, a
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significant time and energy to resolve: a major competitive threat, a disruptive industry change, a substantial shift in revenue, a significant
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disruptive industry change, a substantial shift in revenue, a significant product or service deficiency, or even a troubling drop in morale,
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product or service deficiency, or even a troubling drop in morale, among many others. Any of these issues would warrant more time,
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among many others. Any of these issues would warrant more time,
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energy, and preparation than could ever be given during a regular staff
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energy, and preparation than could ever be given during a regular staff meeting. In fact, it’s difficult to imagine addressing any of them in less
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meeting. In fact, it’s difficult to imagine addressing any of them in less than a few hours. It easily takes that much time to frame up an issue,
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than a few hours. It easily takes that much time to frame up an issue, present even a cursory overview of basic research, brainstorm possible
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present even a cursory overview of basic research, brainstorm possible
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solutions, debate the merits of those solutions, and then come to a COPYRIGHTED M
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solutions, debate the merits of those solutions, and then come to a decision with real commitment.COPYRIG
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decision with real commitment.NOT FOR R
ESALEThe purpose of this kind of meeting is to dig into the critical issues
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The purpose of this kind of meeting is to dig into the critical issues that can have a long-term impact on an organization or that require
NOT FOR RESALEthat can have a long-term impact on an organization or that require
significant time and energy to resolve: a major competitive threat, a
NOT FOR RESALEsignificant time and energy to resolve: a major competitive threat, a
disruptive industry change, a substantial shift in revenue, a significant
NOT FOR RESALE
disruptive industry change, a substantial shift in revenue, a significant product or service deficiency, or even a troubling drop in morale,
NOT FOR RESALE
product or service deficiency, or even a troubling drop in morale, among many others. Any of these issues would warrant more time,
NOT FOR RESALE
among many others. Any of these issues would warrant more time,
NOT FOR RESALE
energy, and preparation than could ever be given during a regular staff
NOT FOR RESALE
energy, and preparation than could ever be given during a regular staff meeting. In fact, it’s difficult to imagine addressing any of them in less
NOT FOR RESALE
meeting. In fact, it’s difficult to imagine addressing any of them in less than a few hours. It easily takes that much time to frame up an issue,
NOT FOR RESALE
than a few hours. It easily takes that much time to frame up an issue, present even a cursory overview of basic research, brainstorm possible NOT FOR R
ESALE
present even a cursory overview of basic research, brainstorm possible solutions, debate the merits of those solutions, and then come to a NOT FOR R
ESALE
solutions, debate the merits of those solutions, and then come to a
Patrick Lencioni—The Advantage
La
The Centrality of Great Meetings
183
Let me make this a little clearer. When most people decide to go into business, they envision themselves sitting around a table with a group of colleagues, wrestling with difficult issues, and doing their best to make the right decisions by tapping into everyone’s knowledge, experience, and intuition. This is what happens during case studies in business school, and there’s no denying that it’s fun. The only problem with case studies is that they’re not real, and they leave people looking forward to the day when they can take on real issues and make real decisions with real consequences.
And then something bizarre happens: executives in the real world find themselves so inundated with daily e-mail and voice mail and administrative requirements that they rarely, if ever, set aside enough time for thorough, challenging, tense, dramatic, and fun conversations. It’s really quite absurd.
It’s like a baseball player working all his life and finally making it to the Major Leagues, and then spending all his time at batting practice without ever stepping up to the plate during a game. Or better yet, when he finally does come to bat in a game, he rushes through it so he can get done quickly and get back to batting practice. The high point of being a baseball player is playing in the games, and the high point of being a leader in an organiza-tion is wrestling with diffi-cult decisions and situations. Truncating those high points just doesn’t make sense.
What makes this partic-ularly tragic is that it is simply the result of execu-tives mistakenly convincing themselves that meetings are inherently bad. Thinking they’re being efficient, they reduce the time they spend in meetings by cramming every discussion into one big staff meeting. What they’re really doing
The high point of being a
leader in an organization is
wrestling with difficult
decisions and situations.
Truncating those high points
just doesn’t make sense.
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forward to the day when they can take on real issues and make real
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forward to the day when they can take on real issues and make real
And then something bizarre happens: executives in the real world
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And then something bizarre happens: executives in the real world find themselves so inundated with daily e-mail and voice mail and
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find themselves so inundated with daily e-mail and voice mail and administrative requirements that they rarely, if ever, set aside enough
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administrative requirements that they rarely, if ever, set aside enough time for thorough, challenging, tense, dramatic, and fun conversations.
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time for thorough, challenging, tense, dramatic, and fun conversations.
It’s like a baseball player working all his life and finally making it
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It’s like a baseball player working all his life and finally making it to the Major Leagues, and then spending all his time at batting practice
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to the Major Leagues, and then spending all his time at batting practice without ever stepping up to the plate during a game. Or better yet,
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without ever stepping up to the plate during a game. Or better yet, when he finally does come to bat in a game, he rushes through it so he
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when he finally does come to bat in a game, he rushes through it so he can get done quickly and get back to batting practice. The high point
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can get done quickly and get back to batting practice. The high point of being a baseball player is playing in the games, and the high point of
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of being a baseball player is playing in the games, and the high point of being a leader in an organiza-
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being a leader in an organiza-tion is wrestling with diffi-COPYRIG
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tion is wrestling with diffi-cult decisions and situations. COPYRIG
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cult decisions and situations. NOT FOR R
ESALEadministrative requirements that they rarely, if ever, set aside enough
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administrative requirements that they rarely, if ever, set aside enough time for thorough, challenging, tense, dramatic, and fun conversations.
NOT FOR RESALEtime for thorough, challenging, tense, dramatic, and fun conversations.
It’s like a baseball player working all his life and finally making it
NOT FOR RESALE
It’s like a baseball player working all his life and finally making it to the Major Leagues, and then spending all his time at batting practice
NOT FOR RESALE
to the Major Leagues, and then spending all his time at batting practice without ever stepping up to the plate during a game. Or better yet,
NOT FOR RESALE
without ever stepping up to the plate during a game. Or better yet, when he finally does come to bat in a game, he rushes through it so he
NOT FOR RESALE
when he finally does come to bat in a game, he rushes through it so he can get done quickly and get back to batting practice. The high point
NOT FOR RESALE
can get done quickly and get back to batting practice. The high point of being a baseball player is playing in the games, and the high point of
NOT FOR RESALE
of being a baseball player is playing in the games, and the high point of being a leader in an organiza-NOT FOR R
ESALE
being a leader in an organiza-tion is wrestling with diffi-NOT FOR R
ESALE
tion is wrestling with diffi-
Patrick Lencioni—The Advantage
La
The Advantage
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is ensuring that those staff meetings are going to be ineffective and that the most important conversations they should be having—topical, strategic ones—are cut short.
What leadership teams need to do—and this may be the single most important piece of advice for them when it comes to meetings—is separate their tactical conversations from their strategic ones. Combin-ing the two just doesn’t work and leaves both sets of issues inadequately addressed.
As for the timing of topical meetings, there is no prescriptive answer. After all, critical issues don’t come up on any schedule. However, if a leadership team goes more than a month without a strategic meeting, something is probably wrong. Of course, when a team first adopts this new model of having separate meetings for specific strategic topics, there will almost always be a big backlog of issues that need to be addressed, so there will be an initial flurry of these kinds of meetings. Which is okay because, by definition, the topics warrant attention. And besides, no one is going to complain about spending too much time discussing critical issues.
4. Quarterly Off-Site ReviewsThe fourth type of meeting that every leadership team needs to have is often known as the “off-site.” The problem with these meetings is that too often they are nothing more than an expensive and extended version of the unproductive staff meeting. The purpose of them, like each of the others, should be unique and focused. In this case, that focus is all about stepping back from the business to get a fresh perspec-tive, which is why it is best done away from the office.
Activities that should be addressed during these meetings include reviewing the organization’s strategic anchors and thematic goal, assess-ing the performance of key employees, discussing industry changes and competitive threats, and of course, reviewing the behaviors of the team members in regard to cohesiveness. In essence, the off-site review
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ATERIAL As for the timing of topical meetings, there is no prescriptive
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ATERIAL As for the timing of topical meetings, there is no prescriptive
answer. After all, critical issues don’t come up on any schedule. However,
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answer. After all, critical issues don’t come up on any schedule. However, if a leadership team goes more than a month without a strategic meeting,
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if a leadership team goes more than a month without a strategic meeting, something is probably wrong. Of course, when a team first adopts this
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something is probably wrong. Of course, when a team first adopts this new model of having separate meetings for specific strategic topics,
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new model of having separate meetings for specific strategic topics, there will almost always be a big backlog of issues that need to be
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there will almost always be a big backlog of issues that need to be addressed, so there will be an initial flurry of these kinds of meetings.
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addressed, so there will be an initial flurry of these kinds of meetings. Which is okay because, by definition, the topics warrant attention. And
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Which is okay because, by definition, the topics warrant attention. And
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besides, no one is going to complain about spending too much time
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besides, no one is going to complain about spending too much time discussing critical issues.
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discussing critical issues.
4. Quarterly Off-Site Reviews
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4. Quarterly Off-Site ReviewsThe fourth type of meeting that every leadership team needs to have is
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The fourth type of meeting that every leadership team needs to have is
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often known as the “off-site.” The problem with these meetings is that COPYRIGHTED M
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often known as the “off-site.” The problem with these meetings is that too often they are nothing more than an expensive and extended COPYRIG
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too often they are nothing more than an expensive and extended NOT FOR R
ESALEsomething is probably wrong. Of course, when a team first adopts this
NOT FOR RESALE
something is probably wrong. Of course, when a team first adopts this new model of having separate meetings for specific strategic topics,
NOT FOR RESALEnew model of having separate meetings for specific strategic topics,
there will almost always be a big backlog of issues that need to be
NOT FOR RESALEthere will almost always be a big backlog of issues that need to be
addressed, so there will be an initial flurry of these kinds of meetings.
NOT FOR RESALE
addressed, so there will be an initial flurry of these kinds of meetings. Which is okay because, by definition, the topics warrant attention. And
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Which is okay because, by definition, the topics warrant attention. And
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besides, no one is going to complain about spending too much time
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besides, no one is going to complain about spending too much time
4. Quarterly Off-Site Reviews
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4. Quarterly Off-Site ReviewsThe fourth type of meeting that every leadership team needs to have is
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The fourth type of meeting that every leadership team needs to have is often known as the “off-site.” The problem with these meetings is that NOT FOR R
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often known as the “off-site.” The problem with these meetings is that
Patrick Lencioni—The Advantage
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The Centrality of Great Meetings
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is where the leadership team needs to step back and revisit the four disciplines covered in this book: team, clarity, communication, and human systems.
The timing of these meetings, unlike the others, is not really nego-tiable. Unlike the tactical staff meetings, which might take place weekly or biweekly, or the topical ones, which need to happen whenever an issue arises, off-site review meetings should occur quarterly. There is just something about doing this four times a year that makes sense. More frequently than that doesn’t give a team enough time to make progress on critical issues and identify meaningful trends in the market or in the company. Less frequently usually means that people are going to forget about what they talked about at the previous meeting, which makes continuity difficult and progress unlikely.
Finally, of the four types of meetings, the quarterly review is probably the one that might call for the use of an outside consultant. It’s often nice for the leader of the executive team to participate as a member and leave the organizing and facilitating to a trusted consultant.
too Much tiMe in MeetingS?
Whenever executives challenge me about the practicality of having four different meetings on a regular basis, I ask them to add up all the time that they would spend in those meetings in a given month.
If we apply the model in the most time-intensive way possible (a full 10 minutes each day in check-in meetings, 2 hours each week in tactical staff meetings, 6 hours each month in topical meetings, and 2 days each quarter in developmental review meetings), the grand total of time amounts to about 1,560 minutes, or 12 hours per month.
Assuming a 50-hour workweek, that amounts to just 13 percent of our time. If you work just 45 hours per week, then it’s 14 percent. That means even when we’re spending the maximum amount of time
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just something about doing this four times a year that makes sense.
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just something about doing this four times a year that makes sense. More frequently than that doesn’t give a team enough time to make
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ATERIAL More frequently than that doesn’t give a team enough time to make
progress on critical issues and identify meaningful trends in the market
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progress on critical issues and identify meaningful trends in the market or in the company. Less frequently usually means that people are going
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or in the company. Less frequently usually means that people are going to forget about what they talked about at the previous meeting, which
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to forget about what they talked about at the previous meeting, which makes continuity difficult and progress unlikely.
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makes continuity difficult and progress unlikely.Finally, of the four types of meetings, the quarterly review is
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Finally, of the four types of meetings, the quarterly review is probably the one that might call for the use of an outside consultant.
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probably the one that might call for the use of an outside consultant. It’s often nice for the leader of the executive team to participate as
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It’s often nice for the leader of the executive team to participate as a member and leave the organizing and facilitating to a trusted
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a member and leave the organizing and facilitating to a trusted
Much
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Much t
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ti
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WhenevCOPYRIGHTED M
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Whenever executives challenge me about the practicality of having four COPYRIGHTED M
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different meetings on a regular basis, I ask them to add up all the time NOT FOR R
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to forget about what they talked about at the previous meeting, which makes continuity difficult and progress unlikely.
NOT FOR RESALEmakes continuity difficult and progress unlikely.
Finally, of the four types of meetings, the quarterly review is
NOT FOR RESALEFinally, of the four types of meetings, the quarterly review is
probably the one that might call for the use of an outside consultant.
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probably the one that might call for the use of an outside consultant. It’s often nice for the leader of the executive team to participate as
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It’s often nice for the leader of the executive team to participate as a member and leave the organizing and facilitating to a trusted
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a member and leave the organizing and facilitating to a trusted
M
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Me
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e in Meeting
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in Meeting
er executives challenge me about the practicality of having four NOT FOR RESALE
er executives challenge me about the practicality of having four
Patrick Lencioni—The Advantage
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The Advantage
186
at each meeting, something few teams need to do, more than 85 percent of our time is still available for whatever else we do.
Some leaders will point out that they are often on more than one team, which they believe would make this kind of model unworkable. Well, even if a person were on as many as three teams and if all three of those teams spent the maximum amount of time in their meetings (something that is highly unlikely), that would still amount to less than half their time. And when we factor in the amount of time they’ll avoid wasting because they are actually focused on the right issues during their meetings, and eliminating all the interruptions that happen because they’re out of sync with one another, the value they get from having more meetings, not less, increases.
Finally, it’s worth asking, What else should leaders be doing besides going to meetings? E-mail? Analysis? Customer visits? Okay, there are certainly times and places for those activities. But a leader’s first priority is to create an environment where others can do these things and that cannot happen if they are not having effective meetings.
But what about management? don’t leaders need to allocate a lot of their time to managing their people? While it’s true that the single most important activity that a leader must do (outside of being a good team member) is managing his or her direct reports, much of that actually happens during meetings. Sure, they need to do some one-on-one men-toring, but that isn’t usually what executives are hoping to do when they’re arguing about having to spend too much time in meetings. The truth is, if executives are having the right kind of meetings, if they’re driving issues to closure and holding one another accountable, then there is much less to do outside meetings, including managing their direct reports.
The thesis behind all of this is worth repeating: a great deal of the time that leaders spend every day is a result of having to address issues that come about because they aren’t being resolved during meetings in the first place. That’s why it’s really hard for executives to make a credible case for spending less time in meetings, assuming those meetings are good ones.
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half their time. And when we factor in the amount of time they’ll avoid
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half their time. And when we factor in the amount of time they’ll avoid wasting because they are actually focused on the right issues during their
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ATERIAL wasting because they are actually focused on the right issues during their
meetings, and eliminating all the interruptions that happen because
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meetings, and eliminating all the interruptions that happen because they’re out of sync with one another, the value they get from having more
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they’re out of sync with one another, the value they get from having more
What else should leaders be doing besides
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What else should leaders be doing besides E-mail? Analysis? Customer visits? Okay, there are
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E-mail? Analysis? Customer visits? Okay, there are certainly times and places for those activities. But a leader’s first priority
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certainly times and places for those activities. But a leader’s first priority is to create an environment where others can do these things and that
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is to create an environment where others can do these things and that cannot happen if they are not having effective meetings.
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cannot happen if they are not having effective meetings.But what about management?
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But what about management? their time to managing their people? While it’s true that the single most
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their time to managing their people? While it’s true that the single most important activity that a leader must do (outside of being a good team
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important activity that a leader must do (outside of being a good team member) is managing his or her direct reports, much of that actually
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member) is managing his or her direct reports, much of that actually
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happens during meetings. Sure, they need to do some one-on-one men-COPYRIGHTED M
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happens during meetings. Sure, they need to do some one-on-one men-toring, but that isn’t usually what executives are hoping to do when they’re COPYRIG
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toring, but that isn’t usually what executives are hoping to do when they’re NOT FOR R
ESALEWhat else should leaders be doing besides
NOT FOR RESALEWhat else should leaders be doing besides
E-mail? Analysis? Customer visits? Okay, there are
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certainly times and places for those activities. But a leader’s first priority
NOT FOR RESALE
certainly times and places for those activities. But a leader’s first priority is to create an environment where others can do these things and that
NOT FOR RESALE
is to create an environment where others can do these things and that cannot happen if they are not having effective meetings.
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cannot happen if they are not having effective meetings.But what about management?
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But what about management? d
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don
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on’t leaders need to allocate a lot of
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’t leaders need to allocate a lot of on’t leaders need to allocate a lot of on
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on’t leaders need to allocate a lot of ontheir time to managing their people? While it’s true that the single most
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their time to managing their people? While it’s true that the single most important activity that a leader must do (outside of being a good team
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important activity that a leader must do (outside of being a good team member) is managing his or her direct reports, much of that actually NOT FOR R
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member) is managing his or her direct reports, much of that actually happens during meetings. Sure, they need to do some one-on-one men-NOT FOR R
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happens during meetings. Sure, they need to do some one-on-one men-
Patrick Lencioni—The Advantage
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The Centrality of Great Meetings
187
Of all the recommendations my firm makes to clients, the one that is most consistently embraced and touted as having an immediate impact on an organization is the adoption of the meetings model out-lined here.
Finally, it’s important to remember that at the end of every meeting, with the exception of the daily check-ins, team members must stop and clarify what they’ve agreed to and what they will go back and com-municate to their teams. This is called Cascading Communication and it is covered in detail in the discipline 3 section.
old Dog, new tricks
A church-related services organization was experiencing
problems internally and seeing that those problems were
affecting their clients. Among the many things the leader did
to make his organization healthier, he cited the restructuring
of his leadership team’s meetings as a key part of their overall
organizational transformation.
“I’m fifty-eight years old, and I would never have thought
that having more meetings would help productivity, but it
actually did. The meetings have made converts out of us all.”
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Of all the recommendations my firm makes to clients, the one that
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Of all the recommendations my firm makes to clients, the one that is most consistently embraced and touted as having an immediate
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is most consistently embraced and touted as having an immediate impact on an organization is the adoption of the meetings model out-
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impact on an organization is the adoption of the meetings model out-
Finally, it’s important to remember that at the end of every meeting,
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Finally, it’s important to remember that at the end of every meeting, with the exception of the daily check-ins, team members must stop and
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with the exception of the daily check-ins, team members must stop and clarify what they’ve agreed to and what they will go back and com-
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clarify what they’ve agreed to and what they will go back and com-municate to their teams. This is called Cascading Communication and
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municate to their teams. This is called Cascading Communication and it is covered in detail in the
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it is covered in detail in the
“I’m fifty-eight years old, and I would never have thought
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“I’m fifty-eight years old, and I would never have thought
that having more meetings would help productivity, but it
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ATERIAL that having more meetings would help productivity, but it
actually did. The meetings have made converts out of us all.”
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actually did. The meetings have made converts out of us all.”
NOT FOR RESALE
Of all the recommendations my firm makes to clients, the one that
NOT FOR RESALE
Of all the recommendations my firm makes to clients, the one that is most consistently embraced and touted as having an immediate
NOT FOR RESALEis most consistently embraced and touted as having an immediate
impact on an organization is the adoption of the meetings model out-
NOT FOR RESALE
impact on an organization is the adoption of the meetings model out-
Finally, it’s important to remember that at the end of every meeting,
NOT FOR RESALE
Finally, it’s important to remember that at the end of every meeting, with the exception of the daily check-ins, team members must stop and
NOT FOR RESALE
with the exception of the daily check-ins, team members must stop and clarify what they’ve agreed to and what they will go back and com-
NOT FOR RESALE
clarify what they’ve agreed to and what they will go back and com-municate to their teams. This is called Cascading Communication and
NOT FOR RESALE
municate to their teams. This is called Cascading Communication and it is covered in detail in the
NOT FOR RESALE
it is covered in detail in the d
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d
Patrick Lencioni—The Advantage
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The Advantage
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checkliSt For MeetingS
Members of a leadership team can be confident that they’ve
mastered meetings when they can affirm the following
statements:
⎯ Tactical and strategic discussions are addressed in separate
meetings.
⎯ During tactical staff meetings, agendas are set only after
the team has reviewed its progress against goals. Noncriti-
cal administrative topics are easily discarded.
⎯ During topical meetings, enough time is allocated to major
issues to allow for clarification, debate, and resolution.
⎯ The team meets quarterly away from the office to review
what is happening in the industry, in the organization, and
on the team.
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ATERIAL ring tactical staff meetings, agendas are set only after
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ATERIAL ring tactical staff meetings, agendas are set only after
the team has reviewed its progress against goals. Noncriti-
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the team has reviewed its progress against goals. Noncriti-
cal administrative topics are easily discarded.
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cal administrative topics are easily discarded.
ring topical meetings, enough time is allocated to major
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ring topical meetings, enough time is allocated to major
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issues to allow for clarification, debate, and resolution.
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issues to allow for clarification, debate, and resolution.
e team meets quarterly away from the office to review
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e team meets quarterly away from the office to review
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what is happening in the industry, in the organization, and
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what is happening in the industry, in the organization, and
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ring topical meetings, enough time is allocated to major
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ring topical meetings, enough time is allocated to major
NOT FOR RESALEissues to allow for clarification, debate, and resolution.
NOT FOR RESALEissues to allow for clarification, debate, and resolution.
e team meets quarterly away from the office to review
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e team meets quarterly away from the office to review
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what is happening in the industry, in the organization, and
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what is happening in the industry, in the organization, and
Patrick Lencioni—The Advantage
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189
Seizing the Advantage
The power of organizational health is undeniable. Even the most skeptical executives I meet don’t dispute the advantage they could
achieve if they could make their leadership teams more cohesive, align them around the answers to the six questions, and get them to com-municate and reinforce those answers incessantly. Indeed a number of healthy organizations have already proven this. Yet the fact remains that organizational health is largely untapped in most companies. But that’s going to change.
As more and more leaders come to the realization that the last frontier of competitive advantage will be the transformation of unhealthy organizations into healthy ones, there will be a shift in the mind-set of executives away from more technical pursuits that can be delegated to others and toward the disciplines outlined in this book. Whether that takes place over the next five, ten, or twenty years, I don’t know. But it’s coming.
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Seizing the
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Seizing the Advantage
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he power of organizational health is undeniable. Even the most
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he power of organizational health is undeniable. Even the most skeptical executives I meet don’t dispute the advantage they could
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skeptical executives I meet don’t dispute the advantage they could achieve if they could make their leadership teams more cohesive, align
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achieve if they could make their leadership teams more cohesive, align them around the answers to the six questions, and get them to com-
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them around the answers to the six questions, and get them to com-municate and reinforce those answers incessantly. Indeed a number of COPYRIG
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municate and reinforce those answers incessantly. Indeed a number of healthy organizations have already proven this. Yet the fact remains that COPYRIG
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healthy organizations have already proven this. Yet the fact remains that NOT FOR R
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he power of organizational health is undeniable. Even the most
NOT FOR RESALE
he power of organizational health is undeniable. Even the most skeptical executives I meet don’t dispute the advantage they could
NOT FOR RESALE
skeptical executives I meet don’t dispute the advantage they could achieve if they could make their leadership teams more cohesive, align
NOT FOR RESALE
achieve if they could make their leadership teams more cohesive, align them around the answers to the six questions, and get them to com-
NOT FOR RESALE
them around the answers to the six questions, and get them to com-municate and reinforce those answers incessantly. Indeed a number of NOT FOR R
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municate and reinforce those answers incessantly. Indeed a number of
Patrick Lencioni—The Advantage
La
The Advantage
190190
For the early adopters of organizational health, the advantages that they will reap will be amplified as they achieve even greater differentia-tion from their lagging competitors. But there are a couple of factors that they must embrace in order to avoid experiencing false starts and undue cynicism. For one, they’ll have to begin the process with a few activities that will give them the initial momentum they’ll need to see it through. Even more important, the individuals who lead this process will have to understand exactly what’s in store for them.
The Leader’s sacrifice
By now I’ve made the point numerous times that many of the ideas I advocate in this book are simple. Well, this next statement will rank right up there with the most obvious piece of advice yet: the person in charge of an organization’s leadership team is crucial to the success of any effort to build a healthy organization.
As ridiculously simple as that may sound, I can’t help but believe that many leaders still don’t fully understand it. All too often they see the tasks related to organizational health as a set of activities that others can handle. Some do this because they want to demonstrate to their staff members that they trust them to do their jobs. That is noble. Others do it because they’d prefer spending time on things that they enjoy more. That’s not so noble. In either case, the result is the same: an unhealthy organization.
There is just no escaping the fact that the single biggest factor determining whether an organization is going to get healthier—or not—is the genuine commitment and active involvement of the person in charge. For a company, that’s the CEO. For a small business, it’s the owner. For a school, it’s the principal. For a church, it’s the pastor. For a department within a company, it’s the department head.
At every step in the process, the leader must be out front, not as a cheerleader or a figurehead, but as an active, tenacious driver.
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By now I’ve made the point numerous times that many of the ideas I
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By now I’ve made the point numerous times that many of the ideas I advocate in this book are simple. Well, this next statement will rank
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advocate in this book are simple. Well, this next statement will rank right up there with the most obvious piece of advice yet: the person in
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ATERIAL
right up there with the most obvious piece of advice yet: the person in charge of an organization’s leadership team is crucial to the success of
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charge of an organization’s leadership team is crucial to the success of any effort to build a healthy organization.
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any effort to build a healthy organization.As ridiculously simple as that may sound, I can’t help but believe
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As ridiculously simple as that may sound, I can’t help but believe that many leaders still don’t fully understand it. All too often they see
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that many leaders still don’t fully understand it. All too often they see the tasks related to organizational health as a set of activities that others
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the tasks related to organizational health as a set of activities that others
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can handle. Some do this because they want to demonstrate to their staff
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can handle. Some do this because they want to demonstrate to their staff members that they trust them to do their jobs. That is noble. Others do
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members that they trust them to do their jobs. That is noble. Others do it because they’d prefer spending time on things that they enjoy more. COPYRIG
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it because they’d prefer spending time on things that they enjoy more. That’s not so noble. In either case, the result is the same: an unhealthy COPYRIG
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That’s not so noble. In either case, the result is the same: an unhealthy NOT FOR R
ESALEBy now I’ve made the point numerous times that many of the ideas I
NOT FOR RESALE
By now I’ve made the point numerous times that many of the ideas I advocate in this book are simple. Well, this next statement will rank
NOT FOR RESALEadvocate in this book are simple. Well, this next statement will rank
right up there with the most obvious piece of advice yet: the person in
NOT FOR RESALEright up there with the most obvious piece of advice yet: the person in
charge of an organization’s leadership team is crucial to the success of
NOT FOR RESALE
charge of an organization’s leadership team is crucial to the success of any effort to build a healthy organization.
NOT FOR RESALE
any effort to build a healthy organization.As ridiculously simple as that may sound, I can’t help but believe
NOT FOR RESALE
As ridiculously simple as that may sound, I can’t help but believe that many leaders still don’t fully understand it. All too often they see
NOT FOR RESALE
that many leaders still don’t fully understand it. All too often they see the tasks related to organizational health as a set of activities that others
NOT FOR RESALE
the tasks related to organizational health as a set of activities that others
NOT FOR RESALE
can handle. Some do this because they want to demonstrate to their staff
NOT FOR RESALE
can handle. Some do this because they want to demonstrate to their staff members that they trust them to do their jobs. That is noble. Others do NOT FOR R
ESALE
members that they trust them to do their jobs. That is noble. Others do it because they’d prefer spending time on things that they enjoy more. NOT FOR R
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it because they’d prefer spending time on things that they enjoy more.
Patrick Lencioni—The Advantage
La
Seizing the Advantage
191
When it comes to building a cohesive team, leaders must drive the process even when their direct reports are less than excited about it initially. And they must be the first to do the hardest things, like demonstrating vulnerabil-ity, provoking conflict, con-fronting people about their behavior, or calling their direct reports out when they’re putting themselves ahead of the team.
The leader must also be the driving force behind demanding clear answers to the six big questions, even when everyone else wants to end the discussion and just agree to disagree. They must be constant, incessant reminders to the leadership team about those answers, chal-lenging them about everything from their behaviors in relation to the organization’s values to their commitment to the team’s rallying cry.
As tempting as it may be, leaders must not abdicate or delegate responsibility for communication and reinforcement of clarity. Instead, they have to play the tireless role of ensuring that employees throughout the organization are continually and repeatedly reminded about what is important. And they must be on guard against contradictory and inconsistent processes that can confuse employees and against bureaucracy that can creep into an organization when people get complacent.
If all of this sounds daunting, that’s because it is. People who lead healthy organizations sign up for a monumental task—and a very self-less one. That is why they need to relinquish their more technical responsibilities, or even their favorite roles, that others can handle. Because when an organization is healthy (when the leader at the top is
There is just no escaping the
fact that the single biggest
factor determining whether
an organization is going to
get healthier—or not—is the
genuine commitment and
active involvement of the
person in charge.
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or not
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genuine commitment and
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genuine commitment and
active involvement of the
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active involvement of the
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to end the discussion and just agree to disagree. They must be constant,
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to end the discussion and just agree to disagree. They must be constant, incessant reminders to the leadership team about those answers, chal-
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incessant reminders to the leadership team about those answers, chal-lenging them about everything from their behaviors in relation to the
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lenging them about everything from their behaviors in relation to the organization’s values to their commitment to the team’s rallying cry.
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organization’s values to their commitment to the team’s rallying cry.As tempting as it may be, leaders must not abdicate or delegate
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As tempting as it may be, leaders must not abdicate or delegate responsibility for communication and reinforcement of clarity. Instead,
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responsibility for communication and reinforcement of clarity. Instead, they have to play the tireless role of ensuring that employees throughout COPYRIG
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they have to play the tireless role of ensuring that employees throughout the organization are continually and repeatedly reminded about COPYRIG
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person in charge.
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person in charge.
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to end the discussion and just agree to disagree. They must be constant,
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to end the discussion and just agree to disagree. They must be constant, incessant reminders to the leadership team about those answers, chal-
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incessant reminders to the leadership team about those answers, chal-lenging them about everything from their behaviors in relation to the
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lenging them about everything from their behaviors in relation to the organization’s values to their commitment to the team’s rallying cry.
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organization’s values to their commitment to the team’s rallying cry.As tempting as it may be, leaders must not abdicate or delegate
NOT FOR RESALE
As tempting as it may be, leaders must not abdicate or delegate responsibility for communication and reinforcement of clarity. Instead, NOT FOR R
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responsibility for communication and reinforcement of clarity. Instead, they have to play the tireless role of ensuring that employees throughout NOT FOR R
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they have to play the tireless role of ensuring that employees throughout NOT FOR RESALE
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active involvement of the
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active involvement of the
person in charge.
NOT FOR RESALEperson in charge.
Patrick Lencioni—The Advantage
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The Advantage
192
doing his or her most important job), people find a way to get things done. When an organization is unhealthy, no amount of heroism or technical expertise is going to make up for the confusion and politics that take root.
The truth is, being the leader of a healthy organization is just plain hard. But in the end, it is undeniably worth it.
firsT criTicaL sTeps
In order to give their organizations the best possible chance of succeed-ing in these efforts, a team must engage in a few vital initial steps to get momentum started.
The first of those is setting aside time to launch the process. What I’m talking about is an initial off-site, a couple of days away from the office—productive, intense, non-touchy-feely days—working on the first two disciplines of building team cohesion and creating clarity. At the end of those days, the team will emerge with a heightened sense of trust and collaboration (trust me, they will), as well as some solid, if not completely refined, answers to the six critical questions.
After that initial off-site, the team will need to put together a play-book, a short summary of those answers and a few other items related to how the team behaves and how it will go about working together going forward. And once the information in the playbook has been finalized and the answers fully agreed on by the team, the next step will be to properly communicate it to the rest of the organization. This will require some kind of initial communication, followed by ongoing reminders from leaders using every form of communication at their disposal. And finally, the leadership team will need to spend time, probably a fair amount of time, designing systems to reinforce the infor-mation from the playbook by embedding it into every process that involves people.
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In order to give their organizations the best possible chance of succeed-
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In order to give their organizations the best possible chance of succeed-ing in these efforts, a team must engage in a few vital initial steps to
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ing in these efforts, a team must engage in a few vital initial steps to
The first of those is setting aside time to launch the process. What
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The first of those is setting aside time to launch the process. What initial off-site,
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initial off-site, a couple of days away from the
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a couple of days away from the office—productive, intense, non-touchy-feely days—working on the first
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office—productive, intense, non-touchy-feely days—working on the first two disciplines of building team cohesion and creating clarity. At the
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two disciplines of building team cohesion and creating clarity. At the end of those days, the team will emerge with a heightened sense of trust
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end of those days, the team will emerge with a heightened sense of trust
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and collaboration (trust me, they will), as well as some solid, if not
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and collaboration (trust me, they will), as well as some solid, if not completely refined, answers to the six critical questions.
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completely refined, answers to the six critical questions.After that initial off-site, the team will need to put together a
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After that initial off-site, the team will need to put together a , a short summary of those answers and a few other items related
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, a short summary of those answers and a few other items related
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to how the team behaves and how it will go about working together going forward. And once the information in the playbook has been COPYRIG
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going forward. And once the information in the playbook has been NOT FOR R
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NOT FOR RESALEThe first of those is setting aside time to launch the process. What
a couple of days away from the
NOT FOR RESALE a couple of days away from the
office—productive, intense, non-touchy-feely days—working on the first
NOT FOR RESALE
office—productive, intense, non-touchy-feely days—working on the first two disciplines of building team cohesion and creating clarity. At the
NOT FOR RESALE
two disciplines of building team cohesion and creating clarity. At the end of those days, the team will emerge with a heightened sense of trust
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end of those days, the team will emerge with a heightened sense of trust
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and collaboration (trust me, they will), as well as some solid, if not
NOT FOR RESALE
and collaboration (trust me, they will), as well as some solid, if not completely refined, answers to the six critical questions.
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completely refined, answers to the six critical questions.After that initial off-site, the team will need to put together a
NOT FOR RESALE
After that initial off-site, the team will need to put together a , a short summary of those answers and a few other items related NOT FOR R
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, a short summary of those answers and a few other items related to how the team behaves and how it will go about working together NOT FOR R
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to how the team behaves and how it will go about working together
Patrick Lencioni—The Advantage
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Seizing the Advantage
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Every team, every organization, will go about the organizational health process in slightly different ways. And that’s a good thing. A rigid, one-size-fits-all approach usually ends up fitting no one and makes it likely that teams will abandon a program because it becomes too onerous. However, these initial steps, which take anywhere from one to six months depending on how much time and energy leaders allocate, are absolutely essential. Once the leaders get through these steps, they will have created so much momentum that it will be hard for them to grow complacent and let the process atrophy.
Of course, their work is not over. It never is. Like a marriage, it requires ongoing attention and effort: maintaining a cohesive team, revisiting the answers to the six questions, overcommunicating and reinforcing them. But leaders in healthy organizations rarely lament having to invest time and energy in that effort. In fact, they almost always come to enjoy it because they see the extraordinary benefits it produces regardless of how simple or unsophisticated it may seem at first glance.
ULTimaTe impacT
Finally, it’s certainly worth acknowledging that the impact of organiza-tional health goes far beyond the walls of a company, extending to customers and vendors, even to spouses and children. It sends people to work in the morning with clarity, hope, and anticipation and brings them home at night with a greater sense of accomplishment, contribu-tion, and self-esteem. The impact of this is as important as it is impos-sible to measure.
At the end of the day, at the end of our careers, when we look back at the many initiatives that we poured ourselves into, few other activi-ties will seem more worthy of our effort and more impactful on the lives of others, than making our organizations healthy.
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steps, they will have created so much momentum that it will be hard
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steps, they will have created so much momentum that it will be hard for them to grow complacent and let the process atrophy.
COPYRIGHTED M
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Of course, their work is not over. It never is. Like a marriage, it
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Of course, their work is not over. It never is. Like a marriage, it requires ongoing attention and effort: maintaining a cohesive team,
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requires ongoing attention and effort: maintaining a cohesive team, revisiting the answers to the six questions, overcommunicating and
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revisiting the answers to the six questions, overcommunicating and reinforcing them. But leaders in healthy organizations rarely lament
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reinforcing them. But leaders in healthy organizations rarely lament having to invest time and energy in that effort. In fact, they almost
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having to invest time and energy in that effort. In fact, they almost always come to enjoy it because they see the extraordinary benefits it
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always come to enjoy it because they see the extraordinary benefits it produces regardless of how simple or unsophisticated it may seem at
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produces regardless of how simple or unsophisticated it may seem at
i
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imp
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mpac
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acmpacmp
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mpacmp
, it’s certainly worth acknowledging that the impact of organiza-
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, it’s certainly worth acknowledging that the impact of organiza-tional health goes far beyond the walls of a company, extending to COPYRIG
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tional health goes far beyond the walls of a company, extending to customers and vendors, even to spouses and children. It sends people COPYRIG
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customers and vendors, even to spouses and children. It sends people NOT FOR R
ESALErevisiting the answers to the six questions, overcommunicating and
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revisiting the answers to the six questions, overcommunicating and reinforcing them. But leaders in healthy organizations rarely lament
NOT FOR RESALEreinforcing them. But leaders in healthy organizations rarely lament
having to invest time and energy in that effort. In fact, they almost
NOT FOR RESALEhaving to invest time and energy in that effort. In fact, they almost
always come to enjoy it because they see the extraordinary benefits it
NOT FOR RESALE
always come to enjoy it because they see the extraordinary benefits it produces regardless of how simple or unsophisticated it may seem at
NOT FOR RESALE
produces regardless of how simple or unsophisticated it may seem at
T
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T
, it’s certainly worth acknowledging that the impact of organiza-NOT FOR RESALE
, it’s certainly worth acknowledging that the impact of organiza-tional health goes far beyond the walls of a company, extending to NOT FOR R
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tional health goes far beyond the walls of a company, extending to
Patrick Lencioni—The Advantage
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Members of a leadership team can gain a general sense of their organization’s health and, more important, identify specific
opportunities for improvement by completing the following checklist.
Discipline 1: Build a Cohesive Leadership Team
⎯ The leadership team is small enough (three to ten people) to be effective.
⎯ Members of the team trust one another and can be genuinely vulnerable with each other.
⎯ Team members regularly engage in productive, unfiltered conflict around important issues.
⎯ The team leaves meetings with clear-cut, active, and specific agreements around decisions.
⎯ Team members hold one another accountable to commitments and behaviors.
⎯ Members of the leadership team are focused on team number one. They put the collective priorities and needs of the larger organization ahead of their own departments.
C h e C k l i s t f o r o r g a n i z a t i o n a l h e a l t h
195
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embers of a leadership team can gain a general sense of their
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embers of a leadership team can gain a general sense of their organization’s health and, more important, identify specific
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organization’s health and, more important, identify specific opportunities for improvement by completing the following
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opportunities for improvement by completing the following
Discipline 1: Build a Cohesive Leadership Team
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Discipline 1: Build a Cohesive Leadership Team
The leadership team is small enough (three to ten people) to be
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The leadership team is small enough (three to ten people) to be effectiv
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effective.
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e.Members of the team trust one another and can be genuinely COPYRIG
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Members of the team trust one another and can be genuinely vulnerable COPYRIG
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vulnerable NOT FOR R
ESALEembers of a leadership team can gain a general sense of their
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embers of a leadership team can gain a general sense of their organization’s health and, more important, identify specific
NOT FOR RESALEorganization’s health and, more important, identify specific
opportunities for improvement by completing the following
NOT FOR RESALE
opportunities for improvement by completing the following
Discipline 1: Build a Cohesive Leadership Team
NOT FOR RESALE
Discipline 1: Build a Cohesive Leadership Team
The leadership team is small enough (three to ten people) to be
NOT FOR RESALE
The leadership team is small enough (three to ten people) to be
Members of the team trust one another and can be genuinely NOT FOR RESALE
Members of the team trust one another and can be genuinely
Patrick Lencioni—The Advantage
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Checklist for Organizational Health
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Discipline 2: Create Clarity
⎯ Members of the leadership team know, agree on, and are passionate about the reason that the organization exists.
⎯ The leadership team has clarified and embraced a small, specific set of behavioral values.
⎯ Leaders are clear and aligned around a strategy that helps them define success and differentiate from competitors.
⎯ The leadership team has a clear, current goal around which they rally. They feel a collective sense of ownership for that goal.
⎯ Members of the leadership team understand one another’s roles and responsibilities. They are comfortable asking questions about one another’s work.
⎯ The elements of the organization’s clarity are concisely summarized and regularly referenced and reviewed by the leadership team.
Discipline 3: Overcommunicate Clarity
⎯ The leadership team has clearly communicated the six aspects of clarity to all employees.
⎯ Team members regularly remind the people in their departments about those aspects of clarity.
⎯ The team leaves meetings with clear and specific agreements about what to communicate to their employees, and they cascade those messages quickly after meetings.
⎯ Employees are able to accurately articulate the organization’s reason for existence, values, strategic anchors, and goals.
Discipline 4: Reinforce Clarity
⎯ The organization has a simple way to ensure that new hires are carefully selected based on the company’s values.
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ATERIAL The leadership team has a clear, current goal around which they
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. They feel a collective sense of ownership for that goal.
COPYRIGHTED M
ATERIAL . They feel a collective sense of ownership for that goal.
Members of the leadership team understand one another’s roles
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Members of the leadership team understand one another’s roles responsibilities. They are comfortable asking questions about
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responsibilities. They are comfortable asking questions about
The elements of the organization’s clarity are concisely
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The elements of the organization’s clarity are concisely ummarized and regularly referenced and reviewed by the
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ummarized and regularly referenced and reviewed by the
Discipline 3: Overcommunicate Clarity
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Discipline 3: Overcommunicate Clarity
The leadership team has clearly communicated the six aspects of
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The leadership team has clearly communicated the six aspects of
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to all employees.
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to all employees.Team members regularly remind the people in their departments
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Team members regularly remind the people in their departments about COPYRIG
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about those aspects of clarity.COPYRIGHTED M
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those aspects of clarity.NOT FOR RESALE
responsibilities. They are comfortable asking questions about
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responsibilities. They are comfortable asking questions about
The elements of the organization’s clarity are concisely
NOT FOR RESALEThe elements of the organization’s clarity are concisely
ummarized and regularly referenced and reviewed by the
NOT FOR RESALE
ummarized and regularly referenced and reviewed by the
Discipline 3: Overcommunicate Clarity
NOT FOR RESALE
Discipline 3: Overcommunicate Clarity
The leadership team has clearly communicated the six aspects of
NOT FOR RESALE
The leadership team has clearly communicated the six aspects of
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to all employees.
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to all employees.Team members regularly remind the people in their departments NOT FOR R
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Team members regularly remind the people in their departments those aspects of clarity.NOT FOR R
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those aspects of clarity.
Patrick Lencioni—The Advantage
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Checklist for Organizational Health
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⎯ New people are brought into the organization by thoroughly teaching them about the six elements of clarity.
⎯ Managers throughout the organization have a simple, consistent, and nonbureaucratic system for setting goals and reviewing progress with employees. That system is customized around the elements of clarity.
⎯ Employees who don’t fit the values are managed out of the organization. Poor performers who do fit the values are given the coaching and assistance they need to succeed.
⎯ Compensation and reward systems are built around the values and goals of the organization.
Meetings
⎯ Tactical and strategic discussions are addressed in separate meetings.
⎯ During tactical staff meetings, agendas are set only after the team has reviewed its progress against goals. Noncritical administrative topics are easily discarded.
⎯ During topical meetings, enough time is allocated to major issues to allow for clarification, debate, and resolution.
⎯ The team meets quarterly away from the office to review what is happening in the industry, in the organization, and on the team.
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Poor performers who do fit the values are given the
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Poor performers who do fit the values are given the
reward systems are built around the values
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reward systems are built around the values
Tactical and strategic discussions are addressed in separate
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Tactical and strategic discussions are addressed in separate
During tactical staff meetings, agendas are set only after the team
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During tactical staff meetings, agendas are set only after the team reviewed its progress against goals. Noncritical administrative
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reviewed its progress against goals. Noncritical administrative topics are easily discarded.
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topics are easily discarded.During topical meetings, enough time is allocated to major issues
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During topical meetings, enough time is allocated to major issues
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allow for clarification, debate, and resolution.
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allow for clarification, debate, and resolution.The team meets quarterly away from the office to review what is COPYRIG
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The team meets quarterly away from the office to review what is appening in the industry, in the organization, and on the team.COPYRIG
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appening in the industry, in the organization, and on the team.NOT FOR R
ESALETactical and strategic discussions are addressed in separate
NOT FOR RESALE
Tactical and strategic discussions are addressed in separate
During tactical staff meetings, agendas are set only after the team
NOT FOR RESALE
During tactical staff meetings, agendas are set only after the team reviewed its progress against goals. Noncritical administrative
NOT FOR RESALE
reviewed its progress against goals. Noncritical administrative topics are easily discarded.
NOT FOR RESALE
topics are easily discarded.During topical meetings, enough time is allocated to major issues
NOT FOR RESALE
During topical meetings, enough time is allocated to major issues
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allow for clarification, debate, and resolution.NOT FOR R
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allow for clarification, debate, and resolution.The team meets quarterly away from the office to review what is NOT FOR R
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The team meets quarterly away from the office to review what is
Patrick Lencioni—The Advantage
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M o r e r e s o u r c e s
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If you’d like more information about the advantage of organizational health, visit our Web site at www.tablegroup.com/theadvantage.
You’ll find the following resources there:
• Video clips about organizational health• Complimentary organizational health survey• Glossary of key terms• Downloadable images for reference• Road map for implementation• Other dynamic tools and resources
If you’d like someone to help you implement any of the concepts in this book, please contact us at The Table Group by calling 925–299–9700, or visit www.tablegroup.com.
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f you’d like more information about the advantage of organizational
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f you’d like more information about the advantage of organizational health, visit our Web site at www.tablegroup.com/theadvantage.
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health, visit our Web site at www.tablegroup.com/theadvantage. You’ll find the following resources there:
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You’ll find the following resources there:
clips about organizational health
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clips about organizational healthorganizational health survey
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organizational health surveyy of key terms
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y of key termswnloadable images for reference
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wnloadable images for referencemap for implementation
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map for implementation
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dynamic tools and resources
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dynamic tools and resources
If you’d like someone to help you implement any of the con
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If you’d like someone to help you implement any of the concepts in this book, please contact us at The Table Group by calling COPYRIG
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cepts in this book, please contact us at The Table Group by calling 925–299–9700, or visit www.tablegroup.com.COPYRIG
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925–299–9700, or visit www.tablegroup.com.NOT FOR R
ESALEclips about organizational health
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clips about organizational healthorganizational health survey
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organizational health survey
wnloadable images for reference
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wnloadable images for referencemap for implementation
NOT FOR RESALE
map for implementation
NOT FOR RESALE
dynamic tools and resources
NOT FOR RESALE
dynamic tools and resources
If you’d like someone to help you implement any of the conNOT FOR RESALE
If you’d like someone to help you implement any of the concepts in this book, please contact us at The Table Group by calling NOT FOR R
ESALE
cepts in this book, please contact us at The Table Group by calling
Patrick Lencioni—The Advantage
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N o t e s
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Introduction
1. The Five Temptations of a CEO, 1998; The Four Obsessions of an Extraordi-nary Executive, 2000; The Five Dysfunctions of a Team, 2002; Death by Meeting, 2004; Silos, Politics, and Turf Wars, 2006; The Three Signs of a Miserable Job, 2007; The Three Big Questions for a Frantic Family, 2008; and Getting Naked, 2010 (all San Francisco: Jossey-Bass).
Discipline 1: Build a Cohesive Leadership Team
1. P. Lencioni, The Five Dysfunctions of a Team (2002) and Overcoming the Five Dysfunctions of a Team (2005) (both San Francisco: Jossey-Bass).
2. J. Katzenbach and D. Smith, The Wisdom of Team (Harper Business, 1994).3. C. Argyris and D. Schön, Organizational Learning: A Theory of Action
Perspective (Reading, Mass: Addison Wesley, 1978).4. E. E. Jones and V. A. Harris, “The Attribution of Attitudes,” Journal of
Experimental Social Psychology, 1967, 3, 1–24; L. Ross, “The Intuitive Psychologist and His Shortcomings: Distortions in the Attribution Process,” in L. Berkowitz (Ed.), Advances in Experimental Social Psychology (Orlando, Fla.: Academic Press, 1977).
Discipline 2: Create Clarity
1. J. Collins and J. Porras, Built to Last (Harper Paperbacks, 2002).2. P. Lencioni, “Make Your Values Mean Something,” Harvard Business Review
(July 2002).
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The Four Obsessions of an Extraordi-
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The Four Obsessions of an Extraordi- The Five Dysfunctions of a Team
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The Five Dysfunctions of a TeamSilos, Politics, and Turf Wars
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Silos, Politics, and Turf WarsThe Three Big Questions for a Frantic Family
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The Three Big Questions for a Frantic Family, 2010 (all San Francisco: Jossey-Bass).
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, 2010 (all San Francisco: Jossey-Bass).
Discipline 1: Build a Cohesive Leadership Team
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Discipline 1: Build a Cohesive Leadership Team
The Five Dysfunctions of a Team
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The Five Dysfunctions of a TeamFive Dysfunctions of a Team
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Five Dysfunctions of a Teamenbach and D. Smith,
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enbach and D. Smith, C. Argyris
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C. Argyris and D. Schön,
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(Reading, Mass: Addison Wesley, 1978).Jones and V. A. Harris, “The Attribution of Attitudes,” COPYRIG
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Jones and V. A. Harris, “The Attribution of Attitudes,”
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The Four Obsessions of an Extraordi-
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The Four Obsessions of an Extraordi- The Five Dysfunctions of a Team
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The Five Dysfunctions of a Team, 2002;
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, 2002; , 2006;
NOT FOR RESALE, 2006; The Three Signs of a
NOT FOR RESALEThe Three Signs of a
The Three Big Questions for a Frantic Family
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The Three Big Questions for a Frantic Family, 2010 (all San Francisco: Jossey-Bass).
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, 2010 (all San Francisco: Jossey-Bass).
Discipline 1: Build a Cohesive Leadership Team
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Discipline 1: Build a Cohesive Leadership Team
The Five Dysfunctions of a Team
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The Five Dysfunctions of a TeamFive Dysfunctions of a Team
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Five Dysfunctions of a Team (2005) (both San Francisco: Jossey-Bass).
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(2005) (both San Francisco: Jossey-Bass).enbach and D. Smith,
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enbach and D. Smith, and D. Schön, NOT FOR R
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and D. Schön, (Reading, Mass: Addison Wesley, 1978).NOT FOR R
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(Reading, Mass: Addison Wesley, 1978).
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Notes
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3. M. Porter, Competitive Strategy (Free Press, 1998).4. M. Porter, “What Is Strategy?,” Harvard Business Review, 1996.5. P. Lencioni, Silos, Politics, and Turf Wars (San Francisco: Jossey-Bass, 2006).
The Centrality of Great Meetings
1. P. Lencioni, Death by Meeting (San Francisco: Jossey-Bass, 2004).
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A c k n o w l e d g m e n t s
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The first person I want to acknowledge here is Tracy Noble, who has been deeply involved in shaping this book from day one. Your
ability to jump from the big picture to the tiniest detail and back again is astounding, and your complete dedication is as appreciated as it is constant.
I also want to thank the rest of my colleagues and friends at The Table Group—Amy Hiett, Karen Amador, Jeff Gibson, Lynne Fiorindo, Alison Knox, Jackie Collins, Michele Rango, and Kim Loureiro—for their involvement, support, and passion. Working with you every day is a blessing in so many ways. And I want to acknowledge the Table Group Principal Consultants who add so much to our experience and to the impact that our firm is having in the world. You blow me away every time I see you and learn what you’re doing out there.
Of course, most of all, I thank my wife, Laura, for her tireless dedication and commitment to me and our four boys. As the years go by, managing the family seems to get more challenging, and yet somehow you keep rising to that challenge. I really love you for that and for so many other reasons.
And I thank my four sons—Michael, Casey, Connor, and Matthew. I am so proud of the young men you’re becoming, and I pray that I am being the dad you need and deserve.
I thank our many clients and customers who allow us to come into their organizations. Whether we’re facilitating an executive off-site,
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he first person I want to acknowledge here is Tracy Noble, who
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he first person I want to acknowledge here is Tracy Noble, who has been deeply involved in shaping this book from day one. Your
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has been deeply involved in shaping this book from day one. Your ability to jump from the big picture to the tiniest detail and back again
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ability to jump from the big picture to the tiniest detail and back again is astounding, and your complete dedication is as appreciated as it is
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is astounding, and your complete dedication is as appreciated as it is
I also want to thank the rest of my colleagues and friends at The
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I also want to thank the rest of my colleagues and friends at The Table Group—Amy Hiett, Karen Amador, Jeff Gibson, Lynne Fiorindo,
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Table Group—Amy Hiett, Karen Amador, Jeff Gibson, Lynne Fiorindo, Alison Knox, Jackie Collins, Michele Rango, and Kim Loureiro—for
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Alison Knox, Jackie Collins, Michele Rango, and Kim Loureiro—for their involvement, support, and passion. Working with you every day
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their involvement, support, and passion. Working with you every day
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is a blessing in so many ways. And I want to acknowledge the Table
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is a blessing in so many ways. And I want to acknowledge the Table Group Principal Consultants who add so much to our experience and
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Group Principal Consultants who add so much to our experience and to the impact that our firm is having in the world. You blow me away
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to the impact that our firm is having in the world. You blow me away every time I see you and learn what you’re doing out there.COPYRIG
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every time I see you and learn what you’re doing out there.Of course, most of all, I thank my wife, Laura, for her tireless COPYRIG
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Of course, most of all, I thank my wife, Laura, for her tireless NOT FOR R
ESALEability to jump from the big picture to the tiniest detail and back again
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ability to jump from the big picture to the tiniest detail and back again is astounding, and your complete dedication is as appreciated as it is
NOT FOR RESALEis astounding, and your complete dedication is as appreciated as it is
I also want to thank the rest of my colleagues and friends at The
NOT FOR RESALE
I also want to thank the rest of my colleagues and friends at The Table Group—Amy Hiett, Karen Amador, Jeff Gibson, Lynne Fiorindo,
NOT FOR RESALE
Table Group—Amy Hiett, Karen Amador, Jeff Gibson, Lynne Fiorindo, Alison Knox, Jackie Collins, Michele Rango, and Kim Loureiro—for
NOT FOR RESALE
Alison Knox, Jackie Collins, Michele Rango, and Kim Loureiro—for their involvement, support, and passion. Working with you every day
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their involvement, support, and passion. Working with you every day
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is a blessing in so many ways. And I want to acknowledge the Table
NOT FOR RESALE
is a blessing in so many ways. And I want to acknowledge the Table Group Principal Consultants who add so much to our experience and
NOT FOR RESALE
Group Principal Consultants who add so much to our experience and to the impact that our firm is having in the world. You blow me away NOT FOR R
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to the impact that our firm is having in the world. You blow me away every time I see you and learn what you’re doing out there.NOT FOR R
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every time I see you and learn what you’re doing out there.
Patrick Lencioni—The Advantage
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Acknowledgments
204
delivering a speech, providing advice, or shipping you a product, know that we appreciate the trust you show us and honor what you are doing to improve your organizations.
A big thanks to my wonderful agent, Jim Levine, for your immer-sion in our world and your unsolicited ideas and suggestions that make us better every time we talk to you.
Thanks to my long-time editor, Susan Williams, and all her col-leagues at Jossey-Bass and Wiley who have entered the fray with us again and again over the past fifteen years to ensure that we’re delivering the best books we can.
I thank my many friends, especially John Beans, Father Daniel Massick, Jeff Gibson, Father Paulson Mundanmani, Matthew Kelly, Daniel Harkavy, and Ken Blanchard, for investing yourselves in me without counting the cost.
And of course, I thank my mom, for the birth thing and for still being a mom after so many years.
But above and beneath, around, and through all of this, I thank God—Father, Son, and Holy Spirit—for blessing me in so many ways and bringing me ever closer year after year. Your mercy endures forever.
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leagues at Jossey-Bass and Wiley who have entered the fray with us
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leagues at Jossey-Bass and Wiley who have entered the fray with us again and again over the past fifteen years to ensure that we’re delivering
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I thank my many friends, especially John Beans, Father Daniel
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I thank my many friends, especially John Beans, Father Daniel Massick, Jeff Gibson, Father Paulson Mundanmani, Matthew Kelly,
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Massick, Jeff Gibson, Father Paulson Mundanmani, Matthew Kelly, Daniel Harkavy, and Ken Blanchard, for investing yourselves in me
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Daniel Harkavy, and Ken Blanchard, for investing yourselves in me
And of course, I thank my mom, for the birth thing and for still
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And of course, I thank my mom, for the birth thing and for still being a mom after so many years.
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being a mom after so many years.But above and beneath, around, and through all of this, I thank
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But above and beneath, around, and through all of this, I thank
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God—Father, Son, and Holy Spirit—for blessing me in so many ways
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God—Father, Son, and Holy Spirit—for blessing me in so many ways and bringing me ever closer year after year. Your mercy endures forever.
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and bringing me ever closer year after year. Your mercy endures forever.
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Massick, Jeff Gibson, Father Paulson Mundanmani, Matthew Kelly,
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Massick, Jeff Gibson, Father Paulson Mundanmani, Matthew Kelly, Daniel Harkavy, and Ken Blanchard, for investing yourselves in me
NOT FOR RESALEDaniel Harkavy, and Ken Blanchard, for investing yourselves in me
And of course, I thank my mom, for the birth thing and for still
NOT FOR RESALE
And of course, I thank my mom, for the birth thing and for still
But above and beneath, around, and through all of this, I thank
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But above and beneath, around, and through all of this, I thank
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God—Father, Son, and Holy Spirit—for blessing me in so many ways
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God—Father, Son, and Holy Spirit—for blessing me in so many ways and bringing me ever closer year after year. Your mercy endures forever.
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and bringing me ever closer year after year. Your mercy endures forever.
Patrick Lencioni—The Advantage
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A b o u t t h e A u t h o r
205
Patrick Lencioni is founder and president of The Table Group, a firm dedicated to helping leaders improve their organizations’
health since 1997. His principles have been embraced by leaders around the world and adopted by organizations of virtually every kind includ-ing multinational corporations, entrepreneurial ventures, professional sports teams, the military, nonprofits, schools, and churches.
Lencioni is the author of nine business books with over three million copies sold worldwide. His work has appeared in the Wall Street Journal, Harvard Business Review, Fortune, Bloomberg Businessweek, and USA Today.
Prior to founding The Table Group, Lencioni served on the execu-tive team at Sybase, Inc. He started his career at Bain & Company and later worked at Oracle Corporation.
Lencioni lives in the San Francisco Bay Area with his wife and their four sons.
To learn more about Patrick and The Table Group, please visit www.tablegroup.com.
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atrick Lencioni is founder and president of The Table Group, a
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atrick Lencioni is founder and president of The Table Group, a firm dedicated to helping leaders improve their organizations’
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firm dedicated to helping leaders improve their organizations’ health since 1997. His principles have been embraced by leaders around
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health since 1997. His principles have been embraced by leaders around the world and adopted by organizations of virtually every kind includ-
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the world and adopted by organizations of virtually every kind includ-ing multinational corporations, entrepreneurial ventures, professional
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ing multinational corporations, entrepreneurial ventures, professional sports teams, the military, nonprofits, schools, and churches.
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sports teams, the military, nonprofits, schools, and churches.Lencioni is the author of nine business books with over three
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Lencioni is the author of nine business books with over three million copies sold worldwide. His work has appeared in the
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million copies sold worldwide. His work has appeared in the
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Harvard Business Review
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Harvard Business Review
Prior to founding The Table Group, Lencioni served on the execu-
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Prior to founding The Table Group, Lencioni served on the execu-
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tive team at Sybase, Inc. He started his career at Bain & Company and
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tive team at Sybase, Inc. He started his career at Bain & Company and later worked at Oracle Corporation.COPYRIG
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later worked at Oracle Corporation.Lencioni lives in the San Francisco Bay Area with his wife and their COPYRIG
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Lencioni lives in the San Francisco Bay Area with his wife and their NOT FOR R
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health since 1997. His principles have been embraced by leaders around the world and adopted by organizations of virtually every kind includ-
NOT FOR RESALEthe world and adopted by organizations of virtually every kind includ-
ing multinational corporations, entrepreneurial ventures, professional
NOT FOR RESALE
ing multinational corporations, entrepreneurial ventures, professional sports teams, the military, nonprofits, schools, and churches.
NOT FOR RESALE
sports teams, the military, nonprofits, schools, and churches.Lencioni is the author of nine business books with over three
NOT FOR RESALE
Lencioni is the author of nine business books with over three million copies sold worldwide. His work has appeared in the
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million copies sold worldwide. His work has appeared in the
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Harvard Business Review
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Harvard Business Review,
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, Fortune
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Fortune
Prior to founding The Table Group, Lencioni served on the execu-
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Prior to founding The Table Group, Lencioni served on the execu-
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tive team at Sybase, Inc. He started his career at Bain & Company and NOT FOR RESALE
tive team at Sybase, Inc. He started his career at Bain & Company and later worked at Oracle Corporation.NOT FOR R
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later worked at Oracle Corporation.
Patrick Lencioni—The Advantage
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AAccidental values, 93, 98–99Accountability, 54–64; about, 54;
behaviors vs. measurable, 59–60; challenges in peer, 58; conflict vs., 60; exercises for, 55–56, 60–62; as key behavioral principle, 26; leaders modeling, 56–58; peer-to-peer, 54–55; public vs. private meetings about, 63–64; team members’ resistance to, 62–63
Activity system mapping, 111Advantages: contributed by
leadership teams, 72; created with organizational health, 18, 189–190; of meetings, 185–187; of organizational clarity, 140; of overcommunicating clarity, 152; undermining organization’s, 8–10
I n d e x
207
Advocacy, 22Alignment: defining thematic goals,
121–122; determining defining objectives, 124–126, 128; developing priorities, 120–121; identifying standard operating objectives, 126–127, 128; requirements for, 76–77. See also Thematic goals
Argyris, Chris, 22Artificial harmony: conflict
continuum and, 42, 43; negative impact on decision making, 44–45
Aspirational values: confusing core and, 95–96; illustrated, 93; using, 96–97
Avoiding conflict: effects of, 39–40, 43; techniques to overcome, 46; trust vs., 38, 43–45, 47
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Accountability, 54–64; about, 54;
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Accountability, 54–64; about, 54; behaviors vs. measurable, 59–60;
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behaviors vs. measurable, 59–60; challenges in peer, 58; conflict vs.,
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challenges in peer, 58; conflict vs., 60; exercises for, 55–56, 60–62;
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60; exercises for, 55–56, 60–62; as key behavioral principle, 26;
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as key behavioral principle, 26; leaders modeling, 56–58;
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leaders modeling, 56–58; peer-to-peer, 54–55; public vs.
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peer-to-peer, 54–55; public vs. private meetings about, 63–64; COPYRIG
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private meetings about, 63–64;
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Advocacy, 22Alignment: defining thematic goals,
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Alignment: defining thematic goals,
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behaviors vs. measurable, 59–60;
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behaviors vs. measurable, 59–60; challenges in peer, 58; conflict vs.,
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challenges in peer, 58; conflict vs., 60; exercises for, 55–56, 60–62;
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60; exercises for, 55–56, 60–62; as key behavioral principle, 26;
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as key behavioral principle, 26; leaders modeling, 56–58;
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leaders modeling, 56–58; peer-to-peer, 54–55; public vs. NOT FOR R
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peer-to-peer, 54–55; public vs.
Advocacy, 22
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Advocacy, 22Alignment: defining thematic goals,
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Alignment: defining thematic goals, 121–122; determining defining
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121–122; determining defining objectives, 124–126, 128;
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objectives, 124–126, 128;
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BBain & Company, 5Barriers to entry, 115Behavior: determining
organizational values for, 91–92; difficulties addressing personal, 59–60; principles of cohesive team, 26; profiling tools illuminating, 30–32. See also Values; and specific behaviors
Biases against organizational health: adrenaline, 3–4; quantification, 4; sophistication, 3
Building leadership teams: accountability in, 54–64; achieving commitment, 48–53; advantages in, 72; checklist for, 71, 195; commitment to vulnerability in, 35–37; errors in inclusivity when, 23; focusing on results, 65–70; importance of, 19–20; mastering conflict, 38–47; overview, 15; sharing common objectives, 25–26; sharing responsibility collectively, 25, 123–124; trust building and, 27–37; using behavior profiling tools, 30–32
Built to Last (Collins and Porras), 82, 91
CCascading communication:
including in meetings, 187; live
and face-to-face, 147–148; using, 144–146; when to implement, 147
CEOs: defining role in leadership team for, 133–134; sacrifice made by, 190–192. See also Leaders
Checklists: building leadership teams, 71, 195; creating clarity, 138, 196; meeting, 188, 197; overcommunicating clarity, 151, 196; reinforcing clarity, 172, 196–197; summary, 195–197
Clarity. See Creating clarity; Overcommunicating clarity; Reinforcing clarity
Cohesive leadership. See Building leadership teams
Collins, Jim, 82, 86, 91, 92Commitment, 48–53;
acknowledging dysfunction in meetings, 52; answering critical questions for team, 77–78; as key behavioral principle, 26; needed to identify corporate purpose, 83–84; passivity undermining, 48–51; reviewing and clarifying group, 51; to vulnerability by leaders, 35–37
Commitment clarification, 146Communication: cascading,
144–148; initiating cohesive team, 192–193; need to repeat, 141–144; top-down, 148–150; upward and lateral, 150–151. See also Overcommunicating clarity
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advantages in, 72; checklist for,
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advantages in, 72; checklist for,
vulnerability in, 35–37; errors in
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vulnerability in, 35–37; errors in inclusivity when, 23; focusing on
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inclusivity when, 23; focusing on results, 65–70; importance of,
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results, 65–70; importance of, 19–20; mastering conflict, 38–47;
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19–20; mastering conflict, 38–47; overview, 15; sharing common
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overview, 15; sharing common objectives, 25–26; sharing COPYRIG
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objectives, 25–26; sharing
overcommunicating clarity, 151,
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196; reinforcing clarity, 172,
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196–197; summary, 195–197
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196–197; summary, 195–197See
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See Creating clarity;
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Creating clarity; See Creating clarity; See
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See Creating clarity; SeeOvercommunicating clarity;
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Overcommunicating clarity; Reinforcing clarity
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Reinforcing clarityCohesive leadership.
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Cohesive leadership. leadership teams
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leadership teamsCollins, Jim, 82, 86, 91, 92
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Collins, Jim, 82, 86, 91, 92
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Overcommunicating clarity;
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Overcommunicating clarity; Reinforcing clarity
NOT FOR RESALEReinforcing clarity
Cohesive leadership.
NOT FOR RESALECohesive leadership.
leadership teams
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leadership teams
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vulnerability in, 35–37; errors in
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vulnerability in, 35–37; errors in inclusivity when, 23; focusing on
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inclusivity when, 23; focusing on results, 65–70; importance of,
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results, 65–70; importance of, 19–20; mastering conflict, 38–47;
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19–20; mastering conflict, 38–47; overview, 15; sharing common NOT FOR R
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overview, 15; sharing common objectives, 25–26; sharing NOT FOR R
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objectives, 25–26; sharing
Collins, Jim, 82, 86, 91, 92
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Collins, Jim, 82, 86, 91, 92Commitment, 48–53;
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Commitment, 48–53; acknowledging dysfunction in
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acknowledging dysfunction in
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Community-focused purpose, 88Compensation and rewards,
164–165Competitive Strategy (Porter), 107Conflict: accountability confused
with, 60; achieving commitment with, 48–49; allowing in trusting environment, 38, 43–45, 47; continuum in, 42–43; demanding from team members, 51; discomfort caused by, 38–40; effects of avoiding, 39–40, 43; integral in disagree-and-commit philosophy, 48; as key behavioral principle, 26; mining for, 45–46; rules encouraging, 46; trust building and, 38, 43–45, 47
Core values: about, 93–95; confusing aspirational and, 95–96; identifying, 102–104; isolating, 99–100; naming, 100–101; permission-to-play vs., 97, 99
Corporate culture: clarifying performance management, 162–164; compensation and rewards in, 164–165; determining organizational values for behavior, 91–92; difficulties addressing behavioral accountability, 59–60; firing employees who don’t fit, 169–171; leadership teams’ creation of, 161; orientation to, 161–162; recruiting and hiring
for cultural fit, 156–161; testing applicant’s fit in, 160. See also Human systems
Courage, 57, 59Creating clarity: aligning
organizational goals, 119–131; avoiding perfection paralysis, 79–80; categories for analyzing purpose, 86–89; checklist for, 138, 196; critical questions for, 77–78; defining reason for existing, 84–90; delineating division of labor, 132–137; determining behavioral values, 91–92; developing company playbook, 134–137; difficulties developing values, 92–93; finding corporate purpose, 83–84; focusing organization’s purpose, 82–90; mission statements vs., 75–77; overview, 15, 73–75; requirements for, 76–77; strategic anchors for, 109–118; thematic goals for, 121–131; weighing advantages in, 140. See also Overcommunicating clarity; Questions for clarity; Reinforcing clarity
Customer-focused purpose, 86–87
DDaily check-ins, 175, 176–178Death by Meeting (Lencioni), 174
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building and, 38, 43–45, 47
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building and, 38, 43–45, 47Core values: about, 93–95;
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Core values: about, 93–95; confusing aspirational and,
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confusing aspirational and, 95–96; identifying, 102–104;
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95–96; identifying, 102–104; isolating, 99–100; naming,
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isolating, 99–100; naming, 100–101; permission-to-play vs.,
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100–101; permission-to-play vs., 97, 99
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Corporate culture: clarifying
purpose, 86–89; checklist for,
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138, 196; critical questions for,
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77–78; defining reason for
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77–78; defining reason for existing, 84–90; delineating
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existing, 84–90; delineating division of labor, 132–137;
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division of labor, 132–137; determining behavioral values,
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determining behavioral values, 91–92; developing company
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91–92; developing company
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division of labor, 132–137;
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division of labor, 132–137; determining behavioral values,
NOT FOR RESALEdetermining behavioral values,
91–92; developing company
NOT FOR RESALE91–92; developing company
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95–96; identifying, 102–104;
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95–96; identifying, 102–104; isolating, 99–100; naming,
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isolating, 99–100; naming, 100–101; permission-to-play vs.,
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100–101; permission-to-play vs.,
Corporate culture: clarifying NOT FOR RESALE
Corporate culture: clarifying
playbook, 134–137; difficulties
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playbook, 134–137; difficulties developing values, 92–93; finding
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developing values, 92–93; finding corporate purpose, 83–84;
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corporate purpose, 83–84;
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Decision making: allowing conflict in, 44–45; avoiding misalignment in, 52; effects of avoiding conflict in, 39–40; passive agreements and effect on, 49, 50–51; strategic anchors influencing, 108–109; using classic business signs, 6, 7–8; waiting for consensus in, 48
Defining objectives, 124–126, 128Disagree-and-commit philosophy, 48Dunder Mifflin, 76, 82
EEmployees: adding to leadership
teams, 23–24; allowing upward and lateral communication among, 150–151; clarifying organizational purpose for, 82–90; communicating clearly to, 148–149; compensation and rewards for, 164–165; effect of organizational health on, 13; face-to-face communication with, 147–148; firing, 169–171; focusing purpose on, 88–89; impact of conflict avoidance in, 40–41; internalizing company priorities, 142–143; interviewing potential, 159–160; making passive agreements, 49, 50–51; misalignment’s effect on empowerment of, 74–75; orienting new, 161–162; participating in meeting agendas,
179–182; performance management for, 162–164; providing clarity for, 77–78; recognizing work of, 166–168; recruiting and hiring policies for, 156–161; retaining, 168–169; testing fit in culture, 160
Empowerment, 74–75
FFear: of confronting people, 57, 59;
difficulties addressing behavioral accountability, 59–60
Firing employees: leader’s fear of confronting vs., 57, 59; who don’t fit, 169–171
Five Dysfunction of a Team Assessment, 57–58
Five Dysfunctions of a Team, The (Lencioni), 20
Four disciplines model: about, 14–16; building cohesive leadership team, 15; creating clarity, 15, 73–140; illustrated, 14; overcommunicating clarity, 15, 141–152; reinforcing clarity, 16, 153–172. See also Checklists; and individual disciplines
GGoals: achieving team, 65–66;
aligning organizational, 119–131; setting collective, 66–68. See also Thematic goals
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organizational purpose for,
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organizational purpose for, 82–90; communicating clearly to,
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82–90; communicating clearly to, 148–149; compensation and
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148–149; compensation and rewards for, 164–165; effect of
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rewards for, 164–165; effect of organizational health on, 13;
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organizational health on, 13; face-to-face communication with,
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147–148; firing, 169–171;
Fear: of confronting people, 57, 59;
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Fear: of confronting people, 57, 59; difficulties addressing behavioral
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difficulties addressing behavioral accountability, 59–60
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accountability, 59–60Firing employees: leader’s fear of
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Firing employees: leader’s fear of confronting vs., 57, 59; who don’t
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confronting vs., 57, 59; who don’t fit, 169–171
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fit, 169–171Five Dysfunction of a Team
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82–90; communicating clearly to,
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82–90; communicating clearly to,
rewards for, 164–165; effect of
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rewards for, 164–165; effect of organizational health on, 13;
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organizational health on, 13; face-to-face communication with, NOT FOR R
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face-to-face communication with, 147–148; firing, 169–171; NOT FOR R
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147–148; firing, 169–171;
accountability, 59–60
NOT FOR RESALE
accountability, 59–60Firing employees: leader’s fear of
NOT FOR RESALEFiring employees: leader’s fear of
confronting vs., 57, 59; who don’t
NOT FOR RESALEconfronting vs., 57, 59; who don’t
fit, 169–171
NOT FOR RESALE
fit, 169–171Five Dysfunction of a Team
NOT FOR RESALE
Five Dysfunction of a Team Assessment, 57–58
NOT FOR RESALE
Assessment, 57–58Five Dysfunctions of a Team, The
NOT FOR RESALE
Five Dysfunctions of a Team, The
Patrick Lencioni—The Advantage
La
Index
211
Greater cause as organizational focus, 87–88
Guilt, 46
HHarvard Business Review, 93Hiring employees, 156–161How do we behave?, 91–105How will we succeed?, 107–118Human Resources: developing
human systems, 153–154; separating corrective action from performance management, 164. See also Human systems
Human systems: clarifying performance management, 162–164; clarifying recruiting and hiring policies, 156–161; developing, 153–154; financial rewards and motivation in, 167–168, 169; firing employees who don’t fit, 169–171; initial design of, 192; orientation of new employees, 161–162; recognizing work of employees, 166–168; retaining employees, 168–169; simplicity in, 154–155; structuring interviews for, 159–160; testing applicant’s cultural fit, 160
IIdeal Conflict Point, 42–43Industry: assessing strategic durability
in, 115; focusing purpose on, 87
Innovation and strategic anchors, 115
Inquiry, 22Integrity: organizational, 5; as
permission-to-play value, 97–98Intel, 48Intolerance in organizations, 91
KKatzenbach, Jon, 21
LLeaders: addressing behavioral
accountability, 59–60; avoiding perfection paralysis, 79–80; benefits of surviving conflict, 43–45; biases against organizational health, 2–4; clarifying and communicating commitments, 147–148; commitment to vulnerability by, 35–37; delineating roles among, 132–137; demonstrating accountability for others, 56–58; effects of avoiding conflict, 39–40, 43; faith in classic business signs, 6, 7–8; handling hiring decisions, 156–161; hiding weaknesses from others, 36–37; identifying core values embodied by, 102, 103; identifying corporate purpose, 83–84; impact of misalignments among, 73–75; mining for conflict, 45–46;
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162–164; clarifying recruiting
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162–164; clarifying recruiting and hiring policies, 156–161;
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and hiring policies, 156–161; developing, 153–154; financial
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developing, 153–154; financial rewards and motivation in,
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rewards and motivation in, 167–168, 169; firing employees
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167–168, 169; firing employees who don’t fit, 169–171; initial
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who don’t fit, 169–171; initial design of, 192; orientation of new
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design of, 192; orientation of new employees, 161–162; recognizing COPYRIG
HTED MATERIA
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employees, 161–162; recognizing
Katzenbach, Jon, 21
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Leaders: addressing behavioral
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Leaders: addressing behavioral accountability, 59–60; avoiding
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accountability, 59–60; avoiding perfection paralysis, 79–80;
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perfection paralysis, 79–80;
NOT FOR RESALE
Leaders: addressing behavioral
NOT FOR RESALE
Leaders: addressing behavioral accountability, 59–60; avoiding
NOT FOR RESALEaccountability, 59–60; avoiding
perfection paralysis, 79–80;
NOT FOR RESALEperfection paralysis, 79–80;
NOT FOR RESALE
developing, 153–154; financial
NOT FOR RESALE
developing, 153–154; financial rewards and motivation in,
NOT FOR RESALE
rewards and motivation in, 167–168, 169; firing employees
NOT FOR RESALE
167–168, 169; firing employees who don’t fit, 169–171; initial
NOT FOR RESALE
who don’t fit, 169–171; initial design of, 192; orientation of new NOT FOR R
ESALE
design of, 192; orientation of new employees, 161–162; recognizing NOT FOR R
ESALE
employees, 161–162; recognizing
benefits of surviving conflict,
NOT FOR RESALE
benefits of surviving conflict, 43–45; biases against
NOT FOR RESALE
43–45; biases against organizational health, 2–4;
NOT FOR RESALE
organizational health, 2–4;
Patrick Lencioni—The Advantage
La
Index
212
multiplying organizational intelligence, 10–11; need for repetitive communications by, 141–144; providing employee clarity, 77–78; revealing tendencies with behavior profiling tools, 30–32; sacrifice made by, 190–192; telling own personal history, 28–30; wrestling with difficult decisions, 182–184. See also Leadership teams; Team members
Leadership teams: accountability exercises for, 55–56, 60–62; acknowledging dysfunction among, 52; advocacy and inquiry in, 22; agreeing on top priorities, 122; avoiding meeting stew, 174–175; behavior profiling tools for, 30–32; creating company playbook, 134–137; critical questions for, 77–78; daily check-ins by, 175, 176–178; defined, 21; defining business done by organization, 105–106; defining reason for corporate existence, 84–90; delineating roles within, 132–137; determining defining objectives, 124–126, 128; developing collective mentality of, 68–69; developing synergy in, 69–70; employee recognition by, 166–168; errors of inclusivity on, 23; hiring and
interviewing by, 161; identifying core values, 102–104; identifying standard operating objectives, 126–127; initiating off-site meetings, 192–193; leading orientation to culture, 161–162; measuring achievements, 65–66; misalignment among, 52–53; misconceptions of, 20–21; Noah’s Ark approach to, 23–24; organizational advantages contributed by, 72; peer-to-peer accountability in, 54–55; performance management by, 162–164; public vs. private accountability meetings for, 63–64; quarterly off-site reviews by, 175, 184–185; resistance to accountability, 62–63; reviewing and clarifying commitments of, 51; setting collective goals, 66–68; sharing common objectives, 25–26; sharing personal histories in, 28–30; sharing responsibility collectively, 25, 123–124; size of, 21–23; vulnerability required in trust building, 27–28. See also Team members
Love, 57
MMarketing, 85Meeting stew, 174–175, 183–184
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among, 52; advocacy and inquiry
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among, 52; advocacy and inquiry in, 22; agreeing on top priorities,
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in, 22; agreeing on top priorities, 122; avoiding meeting stew,
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122; avoiding meeting stew, 174–175; behavior profiling tools
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174–175; behavior profiling tools for, 30–32; creating company
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for, 30–32; creating company playbook, 134–137; critical
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playbook, 134–137; critical questions for, 77–78; daily
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questions for, 77–78; daily check-ins by, 175, 176–178;
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check-ins by, 175, 176–178; defined, 21; defining business COPYRIG
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defined, 21; defining business
misconceptions of, 20–21; Noah’s
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Ark approach to, 23–24;
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organizational advantages
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organizational advantages contributed by, 72; peer-to-peer
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contributed by, 72; peer-to-peer accountability in, 54–55;
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accountability in, 54–55; performance management by,
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performance management by, 162–164; public vs. private
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162–164; public vs. private accountability meetings for,
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accountability meetings for,
NOT FOR RESALE
accountability in, 54–55;
NOT FOR RESALE
accountability in, 54–55; performance management by,
NOT FOR RESALEperformance management by,
162–164; public vs. private
NOT FOR RESALE162–164; public vs. private
NOT FOR RESALE
174–175; behavior profiling tools
NOT FOR RESALE
174–175; behavior profiling tools for, 30–32; creating company
NOT FOR RESALE
for, 30–32; creating company playbook, 134–137; critical
NOT FOR RESALE
playbook, 134–137; critical questions for, 77–78; daily
NOT FOR RESALE
questions for, 77–78; daily check-ins by, 175, 176–178; NOT FOR R
ESALE
check-ins by, 175, 176–178; defined, 21; defining business NOT FOR R
ESALE
defined, 21; defining business
accountability meetings for,
NOT FOR RESALE
accountability meetings for, 63–64; quarterly off-site reviews
NOT FOR RESALE
63–64; quarterly off-site reviews by, 175, 184–185; resistance to
NOT FOR RESALE
by, 175, 184–185; resistance to accountability, 62–63; reviewing
NOT FOR RESALE
accountability, 62–63; reviewing
Patrick Lencioni—The Advantage
La
Index
213
Meetings: acknowledging dysfunction in, 52; advantages of, 185–187; checklist for, 188, 197; clarifying commitment at end of, 146–147; daily check-ins, 175, 176–178; initial off-site, 192–193; meeting stew, 174–175, 183–184; observing organizational health in, 173–174; quarterly off-site reviews, 175, 184–185; rules encouraging conflict, 46; tactical staff, 175, 178–182, 185; topical strategic, 175, 182–184; types of, 175
Mining for conflict, 45–46Misalignment, 52–53Mission statements, 75–77Motivation: direct feedback as, 167;
financial rewards and, 167–168, 169; recognition as form of, 166–168
Multiplying organizational intelligence, 10–11
Myers-Briggs Type Indicator, 30, 31, 34
NNaming core values, 100–101Noah’s Ark management teams,
23–24
OOff-site reviews: initiating, 192–
193; quarterly, 175, 184–185
Office, The, 76Organizational health: advantage of
creating, 18, 189–190; biases against, 2–4; contributions by leadership teams to, 72; costs of poor, 12–13; developing collective mentality for, 68–69; first steps toward, 192–193; four disciplines model of, 14–16; impact of, 193; importance of, 4; multiplying organizational intelligence, 10–11; overlooked by media, 11–12; reflecting in meetings, 173–174; smart and healthy signs required for, 5–6; successes based on, 8–11; summary checklist for, 195–197
Organizations: acquiring accidental values, 98–99; aligning goals of, 119–131; aspirational values of, 93, 95–97; avoiding silos in, 120; cascading communication within, 144–148; changing strategic anchors, 114–116; clarifying tasks of, 116–117; conflict avoidance in, 39–40; core values of, 93–95; costs of poor health, 12–13; creating company playbook, 134–137; defining business of, 105–106; delineating leadership roles in, 133–134; developing human systems for, 153–155; difficulties developing and applying values, 92–93; finding
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Motivation: direct feedback as, 167;
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Motivation: direct feedback as, 167; financial rewards and, 167–168,
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financial rewards and, 167–168, 169; recognition as form of,
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169; recognition as form of,
Multiplying organizational
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Multiplying organizational intelligence, 10–11
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intelligence, 10–11Myers-Briggs Type Indicator, 30, 31, COPYRIG
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Myers-Briggs Type Indicator, 30, 31,
model of, 14–16; impact of, 193;
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importance of, 4; multiplying
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organizational intelligence,
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organizational intelligence, 10–11; overlooked by media,
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10–11; overlooked by media, 11–12; reflecting in meetings,
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11–12; reflecting in meetings, 173–174; smart and healthy signs
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173–174; smart and healthy signs required for, 5–6; successes based
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required for, 5–6; successes based
NOT FOR RESALE
Motivation: direct feedback as, 167;
NOT FOR RESALE
Motivation: direct feedback as, 167; financial rewards and, 167–168,
NOT FOR RESALE
financial rewards and, 167–168, 169; recognition as form of,
NOT FOR RESALE
169; recognition as form of,
Multiplying organizational
NOT FOR RESALE
Multiplying organizational intelligence, 10–11 NOT FOR R
ESALE
intelligence, 10–11Myers-Briggs Type Indicator, 30, 31, NOT FOR R
ESALE
Myers-Briggs Type Indicator, 30, 31,
11–12; reflecting in meetings,
NOT FOR RESALE
11–12; reflecting in meetings, 173–174; smart and healthy signs
NOT FOR RESALE173–174; smart and healthy signs
required for, 5–6; successes based
NOT FOR RESALErequired for, 5–6; successes based
on, 8–11; summary checklist for,
NOT FOR RESALE
on, 8–11; summary checklist for, 195–197
NOT FOR RESALE
195–197Organizations: acquiring accidental
NOT FOR RESALE
Organizations: acquiring accidental
Patrick Lencioni—The Advantage
La
Index
214
purpose of, 83–84; focusing purpose of, 82–90; identifying strategic anchors, 107–114; impact of organizational health on, 193; intolerance required in, 91; making classic business decisions, 6, 7–8; naming core values, 100–101; permission-to-play values of, 97–98; result of passive agreements within, 49–51; size of leadership teams for, 21–23; stating reason for existing, 84–90; success in healthy, 8–11; undermining advantages in dysfunctional, 8–10. See also Corporate culture
Overcoming the Five Dysfunctions of a Team (Lencioni), 20
Overcommunicating clarity: allowing upward and lateral communication, 150–151; checklist for, 151, 196; overview, 15; repetition in communications, 141–144; taking time to clarify commitments, 146; top-down communication, 148–150; using cascading communication, 144–146; weighing advantages of, 152
PPassive agreements, 49–51Patton, Gen. George, 79Peer-to-peer accountability, 54–55
Perfection paralysis, 79–80Performance: addressing behavioral
vs. measurable, 59–60; passivity undermining, 48–51; public vs. private addresses to, 63–64. See also Results
Performance management, 162–164
Permission to play, 8–9Permission-to-play values: about,
97–98; confusing core and, 99; illustrated, 93
Porras, Jerry, 82, 86, 91, 92Porter, Michael, 107, 111Praising employees, 166–167Profiles: including in playbook, 137;
revealing tendencies with, 30–32Purpose, 82–90; defining reason for
existing, 84–90; finding corporate, 83–84; types of, 86–89. See also Goals
QQuestions for clarity: about, 77–78;
applying to compensation and rewards, 165; demanding answers to, 191; how do we behave?, 91–105; how will we succeed?, 107–118; including in company playbook, 136; what do we do?, 105–106; what is most important, right now?, 119–131; who must do what, 132–137; why do we exist?, 82–90
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Overcoming the Five Dysfunctions of
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Overcoming the Five Dysfunctions of
Overcommunicating clarity:
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Overcommunicating clarity: allowing upward and lateral
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allowing upward and lateral communication, 150–151;
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communication, 150–151; checklist for, 151, 196; overview,
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checklist for, 151, 196; overview, 15; repetition in communications,
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15; repetition in communications, 141–144; taking time to clarify COPYRIG
HTED MATERIA
L
141–144; taking time to clarify
Permission to play, 8–9
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Permission-to-play values: about,
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ATERIAL Permission-to-play values: about,
97–98; confusing core and, 99;
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97–98; confusing core and, 99; illustrated, 93
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illustrated, 93Porras, Jerry, 82, 86, 91, 92
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Porras, Jerry, 82, 86, 91, 92Porter, Michael, 107, 111
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Porter, Michael, 107, 111Praising employees, 166–167
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Praising employees, 166–167Profiles: including in playbook, 137;
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Profiles: including in playbook, 137;
NOT FOR RESALE
Porras, Jerry, 82, 86, 91, 92
NOT FOR RESALE
Porras, Jerry, 82, 86, 91, 92Porter, Michael, 107, 111
NOT FOR RESALEPorter, Michael, 107, 111
Praising employees, 166–167
NOT FOR RESALEPraising employees, 166–167
Profiles: including in playbook, 137;
NOT FOR RESALE
Profiles: including in playbook, 137; revealing tendencies with, 30–32
NOT FOR RESALE
revealing tendencies with, 30–32
NOT FOR RESALE
communication, 150–151;
NOT FOR RESALE
communication, 150–151; checklist for, 151, 196; overview,
NOT FOR RESALE
checklist for, 151, 196; overview, 15; repetition in communications, NOT FOR R
ESALE
15; repetition in communications, 141–144; taking time to clarify NOT FOR R
ESALE
141–144; taking time to clarify
Purpose, 82–90; defining reason for
NOT FOR RESALE
Purpose, 82–90; defining reason for existing, 84–90; finding
NOT FOR RESALE
existing, 84–90; finding
Patrick Lencioni—The Advantage
La
Index
215
RReal-time permission, 45Recognition, 166–168Recruiting and hiring policies,
156–161Reinforcing clarity: checklist for,
172, 196–197; compensation and rewards, 164–165; developing human systems for, 153–154; firing employees who don’t fit, 169–171; leader’s role in, 191; orientation policies, 161–162; overview, 16; performance management, 162–164; providing recognition, 166–168; recruiting and hiring policies, 156–161; retaining employees, 168–169; simplicity in human systems, 154–155
Repetition in communications, 141–144
Resentment, 40–41Resignations: due to accountability
building, 62–63; resulting from core value clarification, 100–101
Responsibilities: defining, 132–133; listing in playbook, 137; sharing collectively, 25, 123–124
Results: creating from collective mentality, 68–69; developing from team synergy, 69–70; as key behavioral principle, 26; measuring achievements with,
65–66; setting collective goals, 66–68
Retaining employees, 168–169Rewards, 164–165
SSilos, 120Silos, Politics, and Turf Wars
(Lencioni), 121Smart vs. healthy equation, 6, 7–10Smith, Douglas, 21Southwest Airlines, 87–88Standard operating objectives,
126–127Strategic anchors: changing,
114–116; clarifying organizational strategies, 107; delineating tasks and agreements with, 116–117; identifying, 109–114; making decisions using, 108–109; reason for three, 117–118; Strategic Amoeba for outlining, 110, 112
Success: based on organizational health, 8–11; clarifying strategies for, 107–118
TTable Group, 58, 199Tactical staff meetings, 175,
178–182, 185Team members: building trust
among, 35; conflict among, 38, 45–46, 51; effect of conflict avoidance in, 40–41; impact of
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retaining employees, 168–169;
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retaining employees, 168–169; simplicity in human systems,
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simplicity in human systems,
Repetition in communications,
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Repetition in communications,
Resentment, 40–41
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Resentment, 40–41Resignations: due to accountability
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Resignations: due to accountability building, 62–63; resulting COPYRIG
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building, 62–63; resulting
Smart vs. healthy equation, 6, 7–10
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ATERIAL Smart vs. healthy equation, 6, 7–10
Smith, Douglas, 21
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Smith, Douglas, 21Southwest Airlines, 87–88
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Southwest Airlines, 87–88Standard operating objectives,
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Standard operating objectives, 126–127
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126–127Strategic anchors: changing,
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Strategic anchors: changing,
NOT FOR RESALE
Repetition in communications,
NOT FOR RESALE
Repetition in communications,
Resignations: due to accountability NOT FOR RESALE
Resignations: due to accountability building, 62–63; resulting NOT FOR R
ESALE
building, 62–63; resulting
Standard operating objectives,
NOT FOR RESALE
Standard operating objectives, 126–127
NOT FOR RESALE126–127
Strategic anchors: changing,
NOT FOR RESALEStrategic anchors: changing,
114–116; clarifying organizational
NOT FOR RESALE
114–116; clarifying organizational strategies, 107; delineating tasks
NOT FOR RESALE
strategies, 107; delineating tasks and agreements with, 116–117;
NOT FOR RESALE
and agreements with, 116–117;
Patrick Lencioni—The Advantage
La
Index
216
common objectives on, 25–26; peer-to-peer accountability among, 54–55; recognizing conflict continuum, 42–43; sacrifices made by, 25
Teams: defining, 20–21; size of, 21–24; working groups vs., 21, 25. See also Leadership teams
Thematic goals: defining objectives for, 124–126, 128; examples of, 127–130; identifying standard operating objectives, 126–127, 128; illustrated, 125; isolating, 121–122; purpose of, 131; setting meeting priorities with, 179–180; as team’s collective responsibility, 123–124; time frame for, 130–131
Top-down communication, 148–150
Topical strategic meetings, 175, 182–184
Trust: exercise for building, 55–56; as key behavioral principle, 26; overcoming fundamental attribution errors, 32–34; revealing personal tendencies, 30–32; role of conflict in, 38, 43–45, 47; sharing personal history with team, 28–30; vulnerability required in, 27–28, 35–37
UUpward and lateral communication,
150–151
VValues: accidental, 93, 98–99;
aspirational, 93, 95–97; clarifying personal and professional, 91–92; core, 93–95; difficulties developing, 92–93; permission-to-play, 97–98; steps for identifying core, 102–104; types of, 93
Vulnerability: allowing in peer-to-peer accountability, 54–55; conflict requiring, 41; heart of, 28; leader’s commitment to, 35–37; overcoming fundamental attribution errors with, 32–34; required in trust building, 27–28, 35–37; sharing personal histories, 28–30; too much, 35
WWealth-focused purpose, 89What do we do?, 105–106What is most important, right
now?, 119–131Who must do what, 132–137Why do we exist?, 82–90Wisdom of Teams, The (Katzenbach
and Douglas), 21Working groups, 21, 25
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meeting priorities with, 179–180;
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meeting priorities with, 179–180; as team’s collective responsibility,
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as team’s collective responsibility,
Top-down communication,
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Top-down communication,
Topical strategic meetings, 175,
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Topical strategic meetings, 175, 182–184
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182–184Trust: exercise for building, 55–56; COPYRIG
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Trust: exercise for building, 55–56;
core, 93–95; difficulties
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developing, 92–93; permission-
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to-play, 97–98; steps for
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to-play, 97–98; steps for identifying core, 102–104; types
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identifying core, 102–104; types of, 93
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of, 93Vulnerability: allowing in peer-to-
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Vulnerability: allowing in peer-to-peer accountability, 54–55;
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peer accountability, 54–55; conflict requiring, 41; heart of,
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conflict requiring, 41; heart of,
NOT FOR RESALE
Topical strategic meetings, 175,
NOT FOR RESALE
Topical strategic meetings, 175,
Trust: exercise for building, 55–56; NOT FOR RESALE
Trust: exercise for building, 55–56;
Vulnerability: allowing in peer-to-
NOT FOR RESALEVulnerability: allowing in peer-to-
peer accountability, 54–55;
NOT FOR RESALEpeer accountability, 54–55;
conflict requiring, 41; heart of,
NOT FOR RESALE
conflict requiring, 41; heart of, 28; leader’s commitment to,
NOT FOR RESALE
28; leader’s commitment to, 35–37; overcoming fundamental
NOT FOR RESALE
35–37; overcoming fundamental attribution errors with, 32–34;
NOT FOR RESALE
attribution errors with, 32–34;
Patrick Lencioni—The Advantage
La
Consulting: Table Group Consultants provide practical, fast-paced consulting and training sessions to leaders and their teams.
Speaking: Patrick Lencioni brings his models on teamwork, leadership, and organizational health to tens of thousands of leaders each year.
Books: Patrick Lencioni’s nine best- selling books have sold over 3 million copies worldwide and tackle topics surrounding organizational health, leadership, and teams.
Products: The Five Dysfunctions of a Team and The Three Signs of a Miserable Job products were developed to help managers, leaders, and their teams address issues around teamwork and job fulfillment.
The Table Group is dedicated to helping organizations of all kinds function more effectively through better leadership,
teamwork, and overall health.
www.tablegroup.com 925.299.9700
Visit our website, and explore:
Lencioni_1522_badvert_main.indd 217 1/17/2012 1:54:59 PM
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Table Group Consultants
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Table Group Consultants provide practical, fast-paced consulting and
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provide practical, fast-paced consulting and training sessions to leaders and their teams.
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training sessions to leaders and their teams.
Speaking:
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ATERIAL
Speaking:his models on teamwork, leadership, and
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ATERIAL
his models on teamwork, leadership, and organizational health to tens of thousands
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ATERIAL
organizational health to tens of thousands of leaders each year.
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ATERIAL
of leaders each year.
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ATERIAL
Visit our website, and explore:
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Visit our website, and explore:
NOT FOR RESALE
NOT FOR RESALE
NOT FOR RESALE
NOT FOR RESALE
NOT FOR RESALE
NOT FOR RESALE
NOT FOR RESALE
NOT FOR RESALE
NOT FOR RESALE
NOT FOR RESALE
NOT FOR RESALE
NOT FOR RESALE
NOT FOR RESALE
NOT FOR RESALE
NOT FOR RESALE
NOT FOR RESALE
NOT FOR RESALE
NOT FOR RESALE
NOT FOR RESALE
NOT FOR RESALE
NOT FOR RESALE
NOT FOR RESALE
NOT FOR RESALE
NOT FOR RESALE
training sessions to leaders and their teams.
NOT FOR RESALE
training sessions to leaders and their teams.
Speaking:
NOT FOR RESALE
Speaking: Patrick Lencioni brings
NOT FOR RESALE
Patrick Lencioni brings his models on teamwork, leadership, and
NOT FOR RESALE
his models on teamwork, leadership, and organizational health to tens of thousands
NOT FOR RESALE
organizational health to tens of thousands of leaders each year.
NOT FOR RESALE
of leaders each year.
Books:
NOT FOR RESALE
Books:selling books have sold over 3 million NOT FOR R
ESALE
selling books have sold over 3 million
Patrick Lencioni—The Advantage
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Patrick Lencioni—The Advantage
La
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NOT FOR RESALE
Patrick Lencioni—The Advantage
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NOT FOR RESALE