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    Presentation YEA! SeminarWhat Makes A Leader

    April 2001

    AccessCAPITAL

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    Proposed Schedule

    13.00 13.30 3 Mini-Cases13.30 14.15 Presentation What Makes A Leader 14.15 14.30 Coffee Break 14.30 15.15 Presentation Getting Results

    15.15 15.45 Discussion/Workshop15.45 16.00 Coffee Break 16.00 16.30 Prepare for Presentation16.30 17.30 Presentation of Each Workshop17.30 Closing

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    Mini Case You have to make layoffs

    Your company is in considerable financial trouble and for

    over 9 months management has been considering layoffs .Now it has been decided to reduce the number of staff inone plant near Rayong. You have been chosen to give aspeech to the inform the workers how many of them will belaid off next month.

    Background

    How do you give the speech. What issues do you emphasize?

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    Mini Case - Somchai and the missing report

    You have assigned Somchai to complete and present you

    with a report on one of your key competitors by 12.00 today . You want to present the report to a management committeeat 13.30 and will need around 15 minutes to scan the reportand prepare yourself for the meeting.

    Background

    It is 12.30 and Somchai has not brought you the report. Yougo to Somchais office and you see that he is talking to agroup of co-workers and is about to go to lunch . When youask him about the report he looks confused and admits that

    he has forgotten to prepare the report.

    What do you do?

    Situation

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    Mini Case Somchai and the missing report

    The meeting has been especially convened to for you to

    present the results of the report. You have invited some veryimportant people and key decision makers.

    Additional

    Background

    What do you do now?

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    Mini Case Somchai and the missing report

    Somchai who is 25 has been with company for four months. Additional

    Background

    What do you do now?

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    Mini Case Intelligently bad tempered

    One of your reports is a highly intelligent manager with great

    analytical capabilities. He has been with your organization forover two years and although he has achieved good results heis seen to be very ill-tempered and unable to control hisemotions . His staff are terrified of him and even go so far asto hide bad news from him. He is also seen to be unable to

    listen and continuously interrupts people and does not seemto pay attention to what they are saying.

    Background

    What steps would you take?

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    What Makes A Leader?

    There are 5 components to EI each of which sound desirable to usindividually but that are too often discouraged in organizations

    Self-Management Skills

    Self-AwarenessSelf-RegulationMotivation

    Ability to Relate to Others

    EmpathySocial Skill

    Research shows that the most successful leaders have strengths in the following Emotional

    Intelligence (EI): self-awareness, self-regulation, motivation, empathy andsocial skill

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    Definition

    5 Components of EI

    The ability to recognize andunderstand your moods, emotions,and drives, as well as their effect on

    others

    Hallmarks

    1. Self-Awareness or know thyself

    Self confidenceRealistic self-assessment and candorSelf-deprecating sense of humorThirst for constructive criticism

    (dont react negatively to criticism)

    Decisions are driven by values and goals, they play to their strengths and know

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    Definition

    5 Components of EI

    The ability to control or redirectbiologically driven disruptive impulsesand moods

    The propensity to suspend judgment(to think before acting)

    Hallmarks

    2. Self-Regulation inner conversation

    Trustworthiness and integrityComfort with ambiguityOpenness to change

    Appear reasonable

    Feelings are channeled in useful ways and can create an environment of trustand fairness leading to high levels of productivity and enhances integrity

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    Definition

    5 Components of EI

    A passion to work for reasons thatgo beyond money or status A propensity to pursue goals with

    energy and persistence

    Hallmarks

    3. Motivation the need to achieve

    Strong drive to achieveOptimism, even in the face of failureOrganizational commitmentRestless with status quo

    Always ask why

    The one trait that virtually all leaders have! Because if you set the performancelevels high for yourself you will do so for the organization and a drive to surpass

    goals and an interest in keeping score can be contagious!

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    Definition

    5 Components of EI

    The ability to understand theemotional makeup of other people

    Skill in treating people according to

    their emotional reactions

    Hallmarks

    4. Empathy understanding others

    Expertise in handling and retainingtalent (mentoring, coaching) Ability to provide effective feedback

    Cross-cultural sensitivityService to clients and customers

    Ability and patience to listen

    Thoughtfully considering employees feelings, along with other factors, in theprocess of making intelligent decisions . Key in the age of teams, cross-

    cultural business environments and the talent mobility.

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    Evaluating EI...The Process

    Are there conclusive facts to prove the value of EI?

    The skills that drive performance are:

    Technical (accounting, business planning...)

    Cognitive (analytical reasoning...)

    EI (ability to work with others and the effectiveness in driving change)

    The study aim is to create competency models:

    Psychologists asked senior managers to identify traits that define high performing leaders

    Psychologists used objective criteria (profitability) to differentiate stars from average performers

    Stars were interviewed and compared

    Comparisons resulted in lists of ingredients (initiative, strategic vision...) that defined highly effectiveleaders

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    Evaluating EI...Results

    Intellect is importantCognitive thinking such as big-picture thinking and long-term vision were very

    important

    BUT...

    Study shows that in a comparison of skills EI proves to be 2x asimportant as the others ( Technical skills and Cognitive skills) at all

    job levels...especially at the highest levels where differences intechnical skills are negligible !

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    Can we learn EI?

    Are we born (genetic) with a certain level of empathy or self-awareness or doesexperience play a role in developing these skills?

    The answer is both!

    There is a genetic componentEI increases with age ... We also call this maturity !

    EI can be further developed by training...

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    What kind of training?

    Conventional training programs are a waste of time and money......because they focus on the wrong side of the brain !

    EI is influenced by the neurotransmitters of the brains limbicsystem...

    ... but conventional training programs focus on the neocortex whichgoverns analytical and technical ability!

    Research: Consortium for Research on Emotional Intelligence

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    Limbic System Vs. Neocortex

    The limbic system (or Lizard Brain)is the area above the brain stemwhich is quick acting, reflex based,survival trained.

    The Neocortex is the analytical

    center of the brain which takes indata and stores it in files, a processwhich is much like programming acomputer (grasping concepts andlogic)

    Primitive brain influences the drivefor self-preservation and aggression

    limbic system neocortex

    Primitive brain

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    How does the limbic system learn?

    ...through motivation , extended practice , and feedback

    Limbic system oriented programs must help people break old habits, andestablish new ones ( master new behavior )...

    ... time consuming and requires an individualized approach

    A seminar or reading an EI for Dummies manual wont help... it takes deepcommitment to want to change and a concerted approach overmonths

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    What DO leaders do?

    Set strategyMotivateCreate a missionBuild culture...

    What SHOULD a leader do?

    Get RESULTS...BUT how?

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    How does a leader get results?

    The most effective executives use a collection of distinct leadership styles Each in the rightmeasure , at the right time

    Such flexibility is tough to put into action, but pays off in performance.

    Leadership styles affect performance!!

    Better yet, it can be learned!

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    Leadership Styles

    Leaders use 6 basic styles of of

    leadership. Each springs fromdifferent components of EI.

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    Climate Working Environment

    Climate is defined by 6 key factors that influence a company s workingenvironment

    Flexibility

    Responsibility

    Standards

    RewardsClarity

    Commitment

    Studies show a direct correlation between climate and financial results and

    account for ca. 30% of results along with factors such as economicconditions and competitive dynamics

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    Six basic styles of leadership and their impact on ClimateCoercive

    Modusoperandi

    Affiliative

    Demandsimmediatecompliance

    Mobilizes peopletoward a vision

    Authoritative Democratic Pacesetting Coaching

    Creates harmonyand buildsemotional bonds

    Forgesconsensusthroughparticipation

    Sets highstandards forperformance

    Develops peoplefor the future

    Style Do what i tellyou

    Come with me People comefirst

    What do youthink

    Do as i do,now

    Try this

    Underlying EIcompetency

    Drive to achieve,initiative, self-control

    Self-confidence,empathy,change catalyst

    Empathy, buildingrelationships,communication

    Collaboration,Teamleadership,communication

    Conscientiousness, drive to achieve,initiative

    Developingothers, empathy,self-awareness

    When the styleworks best

    In a crisis,turnarounds,problememployees

    When changerequires newvision, whenclear direction is

    needed

    Healing rifts in ateam, tomotivate peopleduring stressful

    circumstances

    Building buy-inor consensus, toget input fromvaluable

    employees

    To get quickresults from ahighly motivatedand competent

    team

    To help anemployeeimproveperformance or

    develop long-term strengths

    Overall impacton climate

    Negative Most stronglypositive

    Positive Positive Negative Positive

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    Some change examples

    A pacesetting leader who wants to use the affiliative stylemore would need to improve his/her level of empathy and perhapsskills at building relationships An authoritative leader who wants to add the democratic

    style to his/her repertory may need to work on collaboration andcommunication capabilities

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    EI can be learnedEI pays off in performanceLeadership styles spring from different EI componentsLeadership styles effect performanceSwitch flexibly between leadership styles - all have short-term value

    Key points to remember