Becoming a Firm Becoming a Firm Leader Leader

By Rex Gatto, Ph.D.By Rex Gatto, Ph.D.

Gatto Associates, LLCGatto Associates, LLC

412-344-2277412-344-2277

Website:www.rexgatto .comWebsite:www.rexgatto .com

For New Partner and Experience Managers

Table of ContentsTable of Contents

IntroductionIntroduction

Section 1 Leadership role of a Section 1 Leadership role of a partnerpartner

Section 2 CommunicationSection 2 Communication

Section 3 Giving FeedbackSection 3 Giving Feedback

Section 4 Strategic PlanningSection 4 Strategic Planning

Learning ObjectivesLearning Objectives

I.I. Effectively utilizing leadership characteristicsEffectively utilizing leadership characteristics

II.II. Effectively communicating with othersEffectively communicating with others

III.III. Giving feedback to motivate staffGiving feedback to motivate staff

FEEDBACKFEEDBACK

SupportiveSupportiveCorrectiveCorrective

FEED THE FEED THE FUTUREFUTURE

Thought Provoking BooksThought Provoking Books

“The 21 Indispensable Qualities of a Leader” by Maxwell

“Management Challenges for the 21st Century” by Drucker

“Leading Change” by Kotter “First Break All The Rules” by

Buckingham and Coffman “Winning” by Welch “Where did all the Leader “Go Iacocca

THOUGHT PROVOKERSTHOUGHT PROVOKERS

Survival - how you Survival - how you handle ithandle it

SuccessSuccess AttitudeAttitude ListenListen Right questionsRight questions Common SenseCommon Sense

OverviewOverview

This presentation is based on the books:This presentation is based on the books:

Smart Manager FAQ Smart Manager FAQ by Rex Gattoby Rex Gatto

The 2R Manager When to Relate When to RequireThe 2R Manager When to Relate When to Requireby Peter Friedesby Peter Friedes

21 Indisputable Qualities of a Leader 21 Indisputable Qualities of a Leader by John Maxwell by John Maxwell

SectionSection 11

LeadershipLeadership

Smart Manager Smart Manager pages 135-142pages 135-142

OverviewOverview

Defining LeadershipDefining Leadership What kind of leaders are CPAsWhat kind of leaders are CPAs Balancing 2 RsBalancing 2 Rs 21 Characteristics of leadership21 Characteristics of leadership Dimension of leadershipDimension of leadership Why we need managers and leadersWhy we need managers and leaders What future leaders need to knowWhat future leaders need to know

Defining Leaders and Defining Leaders and ManagersManagers

I.I. Manager = past to the presentManager = past to the present

I.I. Leader = present to the futureLeader = present to the future

I.I. Workplace = opportunity in which Workplace = opportunity in which you can demonstrate your ability you can demonstrate your ability and effortsand efforts

FAMOUS LEADERSFAMOUS LEADERS

WHAT DO WHAT DO

ALL OF ALL OF THESE THESE LEADER LEADER HAVE IN HAVE IN COMMON?COMMON?

LEADERSHIPLEADERSHIP

In its simplest form leadership has In its simplest form leadership has

three components:three components: LeaderLeader Follower Follower Common GoalCommon Goal

LEADERSLEADERS

Behaviors of Behaviors of Successful Leaders Successful Leaders

Behaviors of Behaviors of Unsuccessful LeadersUnsuccessful Leaders

Self DevelopmentSelf Development

Work with end in mindWork with end in mind Listen first, then Listen first, then

respondrespond Ask right questionsAsk right questions Be a multiple service Be a multiple service

providerprovider FlexibleFlexible Enjoy change Enjoy change

Challenge your Challenge your thoughtsthoughts

Deal with uncertaintyDeal with uncertainty Maintain sense of Maintain sense of

humorhumor Self worthSelf worth AlternativesAlternatives Follow or let goFollow or let go

LEADERSHIPLEADERSHIPLeadership - process by which leaders Leadership - process by which leaders

guide and develop themselves and guide and develop themselves and others by:others by:

CommunicatingCommunicating Taking appropriate actionTaking appropriate action Building trustBuilding trust Achieving goals, givenAchieving goals, given

Leader’s abilities and skillsLeader’s abilities and skills Abilities and skills of followersAbilities and skills of followers Within a changing environmentWithin a changing environment

LEADERSHIPLEADERSHIP Leaders develop through ability, desire, and opportunity.Effectively develop followers.Address issues proactively.Develop potential by leading, making decisions.Earn the respect of followers.RespondSingle out and clearly define expectations.Have desire & trust to lead in unpredictable times.Identify the right questions.Provide open, honest, trusting, respectful communication.

LEADERSHIP DEFINITIONLEADERSHIP DEFINITION

Leaders:Leaders:Define what the Define what the future future should look like, should look like, aligns aligns peoplepeople with that vision, with that vision, and inspires people to and inspires people to

make it happenmake it happen despite despite the obstacles the obstacles (John Kotter)(John Kotter)

Lead by AdaptationLead by Adaptation

Vision: where are we headed

Clearly define the job: set stretch goals

Open Communication: open communication in all directions – up and down and across the organization

Accountability for Results: in the end, it’s performance that count. YOU are responsible for results

Lead by Adaptation #2Lead by Adaptation #2Be Visible: make a point of getting out of your office and talking to the people who work for you; meet people

Performance: employee performance; give employee credit

Be a Role Model: employees respond more to your actions than to your rhetoric. Lead by example.

Change: changing business; needs ask for input

Work Environment: open trusting, respectful and honest work atmosphere

Carly FiorinaCarly Fiorina

putting information to work by employing an

infrastructure with the flexibility and adaptability to

help companies

role that character, capability and collaboration play in

defining leadership

Jack WelchJack Welch

Positive energy: go go go; they love action and relish change

Energize: the ability to love people and inspire them to move mountains

Edge: courage to make tough yes-or-no decisions -- no maybes

Execute: get the job done Passion: a heartfelt, deep and authentic

excitement about life and work Teach Managers to mange less; instill

confidence

Walt DisneyWalt Disney

Vision - is critical to success

Involvement - create a work environment that encourages employees to be actively involved

Angel Merkel (Germany’s 1st Angel Merkel (Germany’s 1st women leader 11/05)women leader 11/05)

Emphasizing the need for self-sufficiency

Reforming the funding of the medical system and raising the retirement age while tinkering with the tax system

Unemployment - 5 million before the election, fell in October to its lowest level in four years at around 4 million

Debt is down

Robert GreenleafRobert Greenleaf

Listening Empathy Healing

transformation Awareness - self

awareness Persuasion Conceptualization

Foresight: know the past and present

Stewardship: the organization is in trust

Commitment to grow people

Build community among the people

Jim CollinsJim Collins

Level Five LeadersMake the organization

more successful for the next generation

Know that we created a strong company

Want my successor to be better and greater

NO ME it’s WE

John MaxwellJohn MaxwellAssess Your CharacteristicsAssess Your Characteristics

1.1. CharacterCharacter

2.2. CharismaCharisma

3.3. CommitmentCommitment

4.4. CommunicationCommunication

5.5. CompetenceCompetence

6.6. CourageCourage

7.7. DiscernmentDiscernment

8.8. FocusFocus

9.9. GenerosityGenerosity

10.10. InitiativeInitiative

11.11. ListeningListening

12.12. PassionPassion

13.13. Positive attitudePositive attitude

14.14. Problem solvingProblem solving

15.15. RelationshipsRelationships

16.16. ResponsibilityResponsibility

17.17. SecuritySecurity

18.18. Self-disciplineSelf-discipline

19.19. ServanthoodServanthood

20.20. Teach-abilityTeach-ability

21.21. VisionVision

2 Rs Style of Leadership2 Rs Style of LeadershipRelating behaviors: • focus on caring trusting relationships with employees,• respectful and nurturing relationships with each of

your direct reports, • people oriented and • a caring manager

Required behaviors: • focus is on best results from people, • ensures high quality work, • demanding of results in an appropriate way and• task oriented

The best manager is balanced between the two styles

2 R Manager2 R Manager

Low Requiring high

Low

Relating

High

Low Relating Low Requiring

Low Relating about right requiring

Low Relating High Requiring

About Right Relating Low Requiring

About Right Relating About Right Requiring

About Right Relating High Requiring

High Relating Low Requiring

High relating About right Requiring

High Relating High Requiring

Four Leadership StylesFour Leadership StylesFour Styles of Leadership

LEADER’S

INVOLVEMENT

(People Oriented)

HIGH

LEADER’S

CONTROL

(Task Oriented)

LOW HIGH

Column 3

Participate Score _____

Characteristics

• Leader trusts the decisions of the follower;

cooperation

• Lead and follow cooperatively; co-decision-making

relationship; teamwork relationship

• Leader lets the follower lead, take charge

• Both create open lines of communication

Appropriate for

• team interaction

• problem solving; cooperation

• team approach; established and proven competent

followers

Problem

The follower may feel held back, wanting to move

ahead of the leader quickly. The leader needs to

continually update follower and recognize the follower’s

abilities.

Column 2

Share/Consult Score _____

Characteristics

• Interaction/dialogue; ideas exchanged between

the leader and follower

• Coaches, motivates, and advises follower

• Guides the follower by sharing in the decision-

making process; leader is still dominant decision

maker but in a team approach

Appropriate for

• knowledgeable follower who needs

encouragement and lacks confidence and/or

competence to take action or wants rapport

with leader

Problem

The leader may demotivate follower if the follower

feels ready to make decisions and the leader holds

him/her back.

Column 4

Empower/Delegate Score _____

Characteristics

• Leader recognizes follower has a high degree

of competence and confidence

• The follower needs little encouragement or

guidance

• Very little interaction or control; the follower is a

capable decision maker; relationship of mutual

trust exists

• Leader values follower’s actions and decisions

Appropriate for

• high performers

• highly able, competent, confident, autonomous

follower

Problem

The leader empowers follower too soon when he/she still

may need support. This can stifle follower’s growth.

Column 1

Direct Score _____

Characteristics

• Authoritative; high control

• Priority toward results

• Very closely supervises decision-making process

• Geared toward getting the job done;

task oriented

• Initiates, organizes, directs

Appropriate for

• new employees

• follower who lacks confidence or competence

Problem

The leader may think, “I can do it faster and better

than the direct report,” stifling follower’s growth.

LOW

Leadership Styles Leadership Styles

L EADERSHIP/ F OLLOWERSHIP M ODEL

Leadership Followership

empower/

delegate

participate

share/

consult

direct

Empowerment

(people)

Leader’s Control

(task)

developed by

Rex P. Gatto, Ph.D.

All Rights Reserved

Leadership Model Leadership Model

Employee

Competence

Teamwork Model

HighLow

High

Employee Motivation

Participate

Direct

Share/

Consult

Empower/

Delegate

Leadership/Employee Relationship

Overachiever

Burnout

Collins Level Five Leaders:Collins Level Five Leaders:Level 1 - Good strong individual contributor;Level 2 - team member; Level 3 - very competent employee; Level 4 - executive level concerned for his/her own

success; Level 5 - strong care and concern for the organization

not self; focus is on the organization. The secret to level 5 is to find the work or organization that pulls level five out of you and care so much about the organization that leadership evolves to this higher level.

Brady and Woodward Brady and Woodward Five Levels of Leadership DevelopmentFive Levels of Leadership Development

Level 1 - LearningLevel 2 - Performing Level 3 - Leading Level 4 - Mentoring leaders Level 5 - Mentoring Mentors of firm leaders

Maxwell: Developing the Maxwell: Developing the Leader within YouLeader within You

Level 1- Position TitleLevel 2 - Permission - begins to leadLevel 3 - Production - leader get resultsLevel 4 - People developmentLevel 5 - Personhood - large following

Effective Leaders Effective Leaders

Use various stylesUse various styles

Trust themselvesTrust themselves

Develop themselvesDevelop themselves

Apply abilitiesApply abilities

Know to whom and when Know to whom and when

to listen and followto listen and follow

Six Dimensions of Six Dimensions of LeadershipLeadership

Communication

Positive Attitude

Building Relationship

Decision Making

Modeling Leadership

Inspiring Others

Leadership Development Leadership Development Develop from Develop toDevelop from Develop to

passive—having to be stimulated, motivated, and disciplined

active —being self-reliant, self-initiated and self-determined

dependence relative independence to interdependence (internalization of a set of values which become base for behavior)

capable of behaving in a few ways capable of behaving in many different ways

unpredictable, shallow interests of short duration

deeper interests

smaller time perspectives a much larger time perspective of events—behavior is affected by past events and future hopes

subordinate position aspiring to occupy an equal and/or superordinate position in reference to peers

lack of self-awareness awareness of and control over oneself

OverviewOverview

Defining LeadershipDefining Leadership What kind of leaders are CPAsWhat kind of leaders are CPAs Balancing 2 RsBalancing 2 Rs 21 Characteristics of leadership21 Characteristics of leadership Dimension of leadershipDimension of leadership Why we need manager and leadersWhy we need manager and leaders What future leaders need to knowWhat future leaders need to know

LEADERSHIP PROCESSLEADERSHIP PROCESS

Become the best version of Become the best version of yourself!yourself!

SummarySummary

You are going through a developmental leadership process;

challenge yourselfTo be the best version of a leader that

you can