The author of 47 books—including The 360 Degree Leader and The 21 Irrefutable Laws of Leadership—John Maxwell discussed what he terms the five levels of leadership, which are taken from his book Developing the Leader Within You. (Courtesy of Knowledge@Emory)
Maxwell says it’s easy to tell a company characterized by Level One leadership, the lowest level, where the corporate ethos is this: We’re the boss and you’re not.
“People follow because they have to,” he told students and faculty at Emory University. “If quitting time is 5 p.m., all the desks are cleared at 4:30. At 4:55, employees put on their gym shoes because they want traction. They wouldn’t want to slip on the way out and spend an extra minute there. At 4:59, they’re waiting for the gun to sound, and at 5 o’clock, they’re gone. It’s like a fire drill.
“In an organization high on positional leadership, the employees (think), ‘How little do I have to do, how little do I have to commit, to keep my job?’ ”
By contrast, effective leaders learn and grow, extending their influence and rising to the other leadership levels described by Maxwell:
• Level Two: People follow this type of leader because they want to. Leaders on this level—a quantum leap from Level One—are likeable. Relationships develop; people begin to feel passionate about their work; and energy grows within the company. Employees don’t put on their tennis shoes at 4:55 p.m.
• Level Three: People follow because they realize what the leader has done for the organization. Momentum builds. “All leaders know that the most important thing they can do for their company is to create momentum. When you have the ‘Big Mo’ going for you, everything gets easier,” observes Maxwell.
• Level Four: People follow because of what the leader has done for them. Such leaders develop the employees around them, which promotes long-term growth. “Loyalty kicks in at this level because you’ve made the people around you better. They’ve become loyal to you.”
• Level Five: People follow because of who the leader is and what he or she represents. Leaders on this level have spent years developing employees and building the organization. “Go through the first four levels and one day—guess what? —your people will put you on Level Five.”
Trouble is, many bosses never advance beyond Level One.
“Nothing wrong with it, just that it’s the lowest level,” says Maxwell. “What’s amazing is that nine out of 10 people think it’s the ultimate level. Many people get to this level and think, ‘OK, now I’m a leader.’ But that doesn’t make you a leader, it just means that you have a leadership position. The position doesn’t make the leader, the leader makes the position. If you have to tell the people in your group that you’re the leader, you’re not.”
“I came to the conclusion that people can do four things well and be highly successful, regardless of what their career would be,” says Maxwell.
Namely, successful people get along well with others; develop teamwork in the organization; maintain a good attitude, especially in the face of adversity; and lead effectively.
“People won’t go along with you unless they get along with you,” notes Maxwell. “Every one of you has worked in an environment where relationships were not what they should or could be. People lead people, not companies. When there’s a change and transition within a company, it’s almost always a people issue. After a while, they say, ‘Hey, I don’t need to work in this kind of environment.’ ”
Indeed, the ability to connect with people is absolutely critical to a leader’s success, he says. “Very few times do you see a highly successful person who has made a habit out of having bad relationships. Interestingly enough, I have three degrees, but I’ve never had a course in how to understand people.”
In addition, successful people are able to overcome adversity, often experiencing financial difficulties — even bankruptcy — before hitting their stride, he notes. “They have all kinds of issues in life. Anybody can have a great attitude on a good day, but (what counts) is when you’re in a corner and have to think creatively. The greatest gap between successful and unsuccessful people is the thinking gap.”
Added Maxwell, “Attitude isn’t everything—it won’t substitute for competence—but it’s the most important thing in your life. Successful people have a (good) attitude, especially about adversity, that really sets them apart.”
Maxwell cited two laws from his book The 21 Irrefutable Laws of Leadership. The Law of the Lid states that leadership ability determines a person’s effectiveness. The Law of Influence holds that influence is the true measure of leadership.
“Your business isn’t going to grow beyond your leadership (skills),” says the Amazon.com Hall of Fame author, whose books have sold over 12 million copies. “Leadership is influence, nothing more, nothing less. The person who has the most influence within a given group at a given time is the true leader of the pack.”
A corporate executive once asked Maxwell for help in resolving a ticklish dilemma. Three employees were in the running for a leadership position. Which one to pick?
Replied Maxwell, “Put all three in some community volunteer project, where people don’t have to follow them. In six months you’ll know who your best leader is because the leader will be the one who can get people to follow who don’t have to follow.”
Maxwell says leaders need to grow and develop themselves, so they can then develop the people in their organization. To do this, they must understand what it is that their employees value.
Developing an employee’s strengths and not correcting his or her weaknesses is a good place to start, Maxwell says. Even with great effort, he adds, someone lacking in talent in a given area can become only average at best. “Nobody wants to pay for average. When you’re developing people, find their strength zone and develop that.”
To add value to people, leaders must first value them, he says. “The Achilles heel of most leaders is that they don’t value people like they should. The first sign is when they start manipulating them—moving people for (the leader’s) own advantage —which is always wrong.”
Building teams and developing the people around them, is the essence of leadership, adds Maxwell. “They understand that the only way you can compound influence is to put a team together. One is too small a number to achieve greatness. To make an impact, you have to do it with other people—through partnerships, relationships and team-building.”
Saturday, October 31, 2009
Tuesday, October 20, 2009
That Certain Special Something...
As I’ve said many times before, ‘customer satisfaction’ is not my favorite term. It implies that your goal is for people to walk away feeling ‘OK’, but not amazed… Satisfied, but not so excited they want to tell all their friends. If you really want to take a leap to the next level I urge you to go for the ‘wow factor’ and look beyond simple satisfaction.
The Virgin Group, launched 40 years ago by Sir Richard Branson, has become one of he most powerful and iconic organizations on the face of the earth by adhering to one simple principle – let’s give the customer some FUN! That lighthearted commitment to joy and unparalleled quality, as well as the less tangible elements of surprise and genuine concern for people, helped Virgin hit $1 billion in sales faster than any other company ever launched.
How can you leverage the ‘wow factor’ to build your own business? Understand a few basic principles and you’re well on your way:
Mediocrity is bad. The middle of the pack can seem like a safe place to be. You play off of your competitors, mimic other products and services, match your pricing to the market and try not to stand out. The problem with that strategy is that customers won’t see you as any different from the next guy. They won’t pay attention to your brand, respond to your promotions or tell other people about you. Today’s competitive climate is fierce, and if you choose to play it safe and accept mediocrity someone more memorable will easily edge you out.
What you like doesn’t matter – what your customer likes does! Most business owners get hung up on their own agenda and preferences. It’s human nature… ‘I love the color fuchsia –let’s use that!’… ‘Who wouldn’t want a lipstick dispenser in their car?’… ‘We all shop online so a retail presence is pointless.’ Take the time to get to know your customer intimately and to give them what they want. Go a step farther and think beyond their conscious desires to create amazing experiences and exemplary products that they would never even have thought of.
Take the ‘wow factor’ to the front lines. If you know and adhere to your customer commitment religiously and your staff, distributors and vendors don’t, you’re setting yourself up to fail. In order to create a truly stellar customer experience, you have to pull everyone into the vision. From the receptionist who answers your phone, to the sales staff, to the retail clerk, to your distribution channels… everyone has to understand the power of ‘wow’ and work hard to exceed customer expectations. At the end of the day, companies are just big groups of people working together towards a common aim. Make sure your team is all about ‘wow’!
Respect the value of loyalty. All a business really has to bank on is its customer base. You may have intellectual property you’ve created, but if no one buys it - who cares? You may have a highly educated staff, but if they can’t make money and you can’t pay them – who cares? You may have a beautiful facility, but if no ones comes in – who cares? Your customers are the lifeblood of your business and everything you do must revolve around their experience with you. Share your vision with customers. Communicate with them. Offer opportunities to interact. And never, ever break your brand promises.
Quantify the promotional power of ‘wow’. That certain special something you create is a very valuable commodity in your business world. Competitors can copy your products, offer similar services, mimic your ads and raise more capital, but the one thing they can never steal from you is your ability to deliver an exceptional experience to your customers every time. They cannot usurp your relationship with people who are passionate about your brand. The ‘wow factor’ negates the need to pay a pretty penny for marketing, it keeps your staff happy, it helps you innovate without endless investment in R&D, it keeps people coming back and talking about you. Make no mistake… wow is not fluff – wow is priceless.
How can you leverage the ‘wow factor’ to build your own business? Understand a few basic principles and you’re well on your way:
Mediocrity is bad. The middle of the pack can seem like a safe place to be. You play off of your competitors, mimic other products and services, match your pricing to the market and try not to stand out. The problem with that strategy is that customers won’t see you as any different from the next guy. They won’t pay attention to your brand, respond to your promotions or tell other people about you. Today’s competitive climate is fierce, and if you choose to play it safe and accept mediocrity someone more memorable will easily edge you out.
What you like doesn’t matter – what your customer likes does! Most business owners get hung up on their own agenda and preferences. It’s human nature… ‘I love the color fuchsia –let’s use that!’… ‘Who wouldn’t want a lipstick dispenser in their car?’… ‘We all shop online so a retail presence is pointless.’ Take the time to get to know your customer intimately and to give them what they want. Go a step farther and think beyond their conscious desires to create amazing experiences and exemplary products that they would never even have thought of.
Take the ‘wow factor’ to the front lines. If you know and adhere to your customer commitment religiously and your staff, distributors and vendors don’t, you’re setting yourself up to fail. In order to create a truly stellar customer experience, you have to pull everyone into the vision. From the receptionist who answers your phone, to the sales staff, to the retail clerk, to your distribution channels… everyone has to understand the power of ‘wow’ and work hard to exceed customer expectations. At the end of the day, companies are just big groups of people working together towards a common aim. Make sure your team is all about ‘wow’!
Respect the value of loyalty. All a business really has to bank on is its customer base. You may have intellectual property you’ve created, but if no one buys it - who cares? You may have a highly educated staff, but if they can’t make money and you can’t pay them – who cares? You may have a beautiful facility, but if no ones comes in – who cares? Your customers are the lifeblood of your business and everything you do must revolve around their experience with you. Share your vision with customers. Communicate with them. Offer opportunities to interact. And never, ever break your brand promises.
Quantify the promotional power of ‘wow’. That certain special something you create is a very valuable commodity in your business world. Competitors can copy your products, offer similar services, mimic your ads and raise more capital, but the one thing they can never steal from you is your ability to deliver an exceptional experience to your customers every time. They cannot usurp your relationship with people who are passionate about your brand. The ‘wow factor’ negates the need to pay a pretty penny for marketing, it keeps your staff happy, it helps you innovate without endless investment in R&D, it keeps people coming back and talking about you. Make no mistake… wow is not fluff – wow is priceless.
Monday, October 5, 2009
The Enlightenment of Richard Branson
By: Alan Deutschman
Sir Richard Branson still remembers how he was first received by the establishment powers when he started Virgin Atlantic Airways 22 years ago. "The head of American Airlines said, 'What does Richard Branson know about the airline business? He comes from the entertainment business.' But that was exactly what the airline business needed."
He has been right, of course. With the exception of Southwest, all of the look-alike U.S. carriers wound up filing for bankruptcy or going belly up. Meanwhile, Virgin, with its fun-loving flight attendants who seem to be hosting a party, is still thriving.
What Branson understood two decades ago is just now beginning to be embraced by other corporate leaders: We should be having fun when we're spending our money. In a sense, Branson has never left the entertainment business, and that's why he's kicking off our third annual Customers First awards. As his empire has expanded - from a recording label and a chain of music stores to what became his fiercest passion, airlines, as well as an astonishing array of some 200 other eclectic ventures worldwide--his method has remained the same. He takes on intransigent industries that treat customers inexplicably badly and shows that he can offer not only a better deal but a truly entertaining experience. The approach has made Sir Richard a multibillionaire and Virgin a beloved brand--as well as a $10 billion-a-year operation.
Throughout Virgin's history, many of its most propitious ideas, small and large, have sprung from Branson's wants and needs as a customer himself. "The reason I went into business originally," he says, "was not because I thought that I could make a lot of money, but because the experiences I had personally with businesses were dire and I wanted to create an experience that I and my friends could enjoy."
On one trip, he recalls, "I wanted to talk to the pretty girl in the next aisle, but I was stuck in my seat the entire flight." Branson's frustration inspired him to introduce stand-up bars in Virgin's cabins. After his wife's manicurist suggested offering nail treatments and massages onboard, Branson didn't bother with market research. "Sounds like a great idea," he said. "Screw it, let's do it." Now Virgin has 700 therapists on staff.
Putting customers first is hard in a corporate environment that understands only cost, efficiency, and business as it has always been done. That was the case when Branson thought flyers would love seatback video screens that would let them pick the movies they wanted to see onboard rather than having to wait for whatever film the airline had picked. "Seatback videos are complicated, expensive things to do," he recalls. "The cost was around $8 million, and the airline was quite stretched at the time. I went to the bank, and they wouldn't give us the money. So I rang up the head of Boeing and said that we wanted to order some new 747s and could he give us seatback videos, and he said yes. We were able to borrow $2 billion to buy a new fleet of planes, but not $8 million for seatback videos."
Airlines are not the only industry where the big players exist in a weird state of mediocre parity because they put their own interests ahead of their customers'. Virgin Active, Branson's European chain of health clubs, lets members pay when they go rather than locking them up with a contract. Similarly, in the mobile-phone business, Virgin Mobile USA has attracted 4 million customers by offering prepaid cards mainly to young people who couldn't afford costly long-term service plans. The lesson: Don't rip people off, and they'll happily stay your customer.
A lot of executives consistently do what's easiest or cheapest for the business rather than the people paying the freight. Branson offers an alternative: Take a look at your business and ask yourself, "Is this how I would want to be treated if I were the customer?"
In a world where companies routinely bedevil customers, the Virgin chief is an angel, because he truly puts customers first.
He has been right, of course. With the exception of Southwest, all of the look-alike U.S. carriers wound up filing for bankruptcy or going belly up. Meanwhile, Virgin, with its fun-loving flight attendants who seem to be hosting a party, is still thriving.
What Branson understood two decades ago is just now beginning to be embraced by other corporate leaders: We should be having fun when we're spending our money. In a sense, Branson has never left the entertainment business, and that's why he's kicking off our third annual Customers First awards. As his empire has expanded - from a recording label and a chain of music stores to what became his fiercest passion, airlines, as well as an astonishing array of some 200 other eclectic ventures worldwide--his method has remained the same. He takes on intransigent industries that treat customers inexplicably badly and shows that he can offer not only a better deal but a truly entertaining experience. The approach has made Sir Richard a multibillionaire and Virgin a beloved brand--as well as a $10 billion-a-year operation.
Throughout Virgin's history, many of its most propitious ideas, small and large, have sprung from Branson's wants and needs as a customer himself. "The reason I went into business originally," he says, "was not because I thought that I could make a lot of money, but because the experiences I had personally with businesses were dire and I wanted to create an experience that I and my friends could enjoy."
On one trip, he recalls, "I wanted to talk to the pretty girl in the next aisle, but I was stuck in my seat the entire flight." Branson's frustration inspired him to introduce stand-up bars in Virgin's cabins. After his wife's manicurist suggested offering nail treatments and massages onboard, Branson didn't bother with market research. "Sounds like a great idea," he said. "Screw it, let's do it." Now Virgin has 700 therapists on staff.
Putting customers first is hard in a corporate environment that understands only cost, efficiency, and business as it has always been done. That was the case when Branson thought flyers would love seatback video screens that would let them pick the movies they wanted to see onboard rather than having to wait for whatever film the airline had picked. "Seatback videos are complicated, expensive things to do," he recalls. "The cost was around $8 million, and the airline was quite stretched at the time. I went to the bank, and they wouldn't give us the money. So I rang up the head of Boeing and said that we wanted to order some new 747s and could he give us seatback videos, and he said yes. We were able to borrow $2 billion to buy a new fleet of planes, but not $8 million for seatback videos."
Airlines are not the only industry where the big players exist in a weird state of mediocre parity because they put their own interests ahead of their customers'. Virgin Active, Branson's European chain of health clubs, lets members pay when they go rather than locking them up with a contract. Similarly, in the mobile-phone business, Virgin Mobile USA has attracted 4 million customers by offering prepaid cards mainly to young people who couldn't afford costly long-term service plans. The lesson: Don't rip people off, and they'll happily stay your customer.
A lot of executives consistently do what's easiest or cheapest for the business rather than the people paying the freight. Branson offers an alternative: Take a look at your business and ask yourself, "Is this how I would want to be treated if I were the customer?"
Correction: This article incorrectly implied that all the traditional major U.S. airlines have filed for bankruptcy or gone "belly up." American Airlines has done neither.
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