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PRAISE FOR THE EXTRAORDINARY LEADER

“The Zenger Folkman leadership model is distinguished from others in that it is backed up by research and data. That data validates the effectiveness of identifying an individual’s strengths and developing them, rather than focusing on weaknesses. The Zenger Folkman philosophy has its eye on the right goal – real, measurable results.”

—Bill Blase Senior Executive Vice President

Human Resources AT&T Corp.

“I fell in love with The Extraordinary Leader on page 1. From the moment I started reading I really got jazzed, and my enthusiasm only increased the more I read. You see, I’m just mad about books that attack cherished but unsupportable assumptions about anything, especially leadership. That’s exactly what Jack Zenger and Joe Folkman do, and they do it persuasively, precisely, and professionally. The Extraordinary Leader is no hackneyed rehashing of tired nostrums. Through their exceptional research, the authors demonstrate and prove that leadership does make a difference and that you can learn to lead. There are some profound insights in this book, and whether you’ve studied leadership for over 20 years, as I have, or you are brand new to the subject, Zenger and Folkman give you much more than your money’s worth. And while their research gives the book distinctive credibility, their examples and practical applications give it life. This is a book that scholars and practitioners will be referring to for years to come.

If your goal is to be a better leader than you are today, then you must read this book.”

—James M. Kouzes Chairman Emeritus, Tom Peters Company

Coauthor of The Leadership Challenge and Encouraging the Heart

“Joe Folkman and Jack Zenger have proved themselves to be extraordinary thinkers. In their new book, The Extraordinary Leader, they unfold the most intriguing and provocative new research on leadership that I have encountered in many years. This book is a ‘must read’ for anyone faced with the day-to-day challenges of developing extraordinary leadership talent within an organization.”

—Annie LaBombard Director of Leadership

Fireman’s Fund Insurance Company

“Read this book! Its approach to understanding leadership development is unique: It uses data, not opinion! Some of the insights are intuitive, but many are counterintuitive. Extraordinarily readable, this book represents some of the best thinking on leadership I’ve seen in a long while.”

—E. David Spong President, Military Aerospace Support

The Boeing Company

“Ordinarily, I’d say the last thing we need is another book on leadership. But The Extraordinary Leader by Jack Zenger and Joe Folkman is refreshingly different. Rather than serve up yesterday’s anecdotes, they’ve performed the heavy lifting of empirical data collection and analysis. The foreword promises clarity, simplicity, and utility in addressing the real-world challenges of developing leaders, and this book delivers that and more. This is a must read.”

—Jon Younger, Ph.D. Senior Vice President, Leadership Development

National City Corporation

“The authors’ promise on the bottom of page 3 to do their best ‘to unravel the mystery of leadership through careful analysis and observation’ of a huge

database ‘by emulating Sherlock Holmes,’ grabbed my attention. Always an avid mystery reader, I found myself compulsively turning pages, devouring the entire book, like any good mystery, in one sitting. I especially appreciated the wisdom found in Insights 1 to 20, the nonobvious competency companions, and the distinctions between mattress and tent leadership models. By the last chapter (when all at last had been revealed), I had deduced a far better way to help my organization become a company of leaders than I’ve been able to figure out in the past 20 years!”

—Sallie T. Hightower, Ed.D. Conoco University

Conoco, Inc.

“Finally someone has moved beyond theory and complicated models to tell us what great leaders really bring to the party. Zenger and Folkman have effectively summarized data on 20,000 leaders that help us understand what really makes leaders tick. Any serious student of leadership will both enjoy this book’s journey and walk away with useful new insights that will help them and others.”

—Ralph Christensen Senior Vice President, Human Resources

Hallmark Cards, Inc.

“This book has changed the way I think! If you want to move from good to great as a leader, don’t focus on a weakness; instead, take a strength and build on it. Jack Zenger and Joe Folkman have written an important book, full of insight and based on sound research. It will shape the way we help our clients develop executives.”

—Douglas D. Anderson Founder and Managing Partner

Center for Executive Development–Boston

“This is a ‘must read’ for coaches, leaders, and those who develop them. The Extraordinary Leader goes beyond anecdotes or ‘war stories’; it builds upon comprehensive research. It is destined to be a classic in our field.”

—Marshall Goldsmith Named by Forbes as one of five top executive coaches and one of the

Wall Street Journal’s “Top 10” executive educators

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TH E EXTRAOR DI NARY LEADER

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COMPLETELY REVISED AND EXPANDED EDITION

TH E EXTRAOR DI NARY LEADER

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T U R N I N G G O O D M A N A G E R S I N T O G R E A T L E A D E R S

JOHN H. ZENGER & JOSEPH R. FOLKMAN

Copyright © 2009 by The McGraw-Hill Companies. All rights reserved. Except as permitted under the United States Copyright Act of 1976, no part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written permission of the publisher.

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We dedicate this book to the thousands of leaders who courageously seek feedback from colleagues in their quest to improve their leadership skills. They set a laudable example by rising out of their comfort zone and working diligently to become better leaders.

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CONTENTS FOREWORD ix

ACKNOWLEDGMENTS xiii INTRODUCTION xvii

CHAPTER 1 DEMYSTIFYING LEADERSHIP 1

CHAPTER 2 GREAT LEADERS MAKE A GREAT DIFFERENCE 29

CHAPTER 3 SIMPLIFYING LEADERSHIP 51

CHAPTER 4 THE COMPETENCY QUEST 81

CHAPTER 5 LEADERS MUST FIT THEIR ORGANIZATION 107

CHAPTER 6 GREAT LEADERS POSSESS MULTIPLE STRENGTHS 131

CHAPTER 7 FATAL FLAWS MUST BE FIXED 149

CHAPTER 8 NEW INSIGHTS INTO LEADERSHIP DEVELOPMENT 167

CHAPTER 9 A CASE STUDY IN LEADERSHIP DEVELOPMENT—

THE U.S. MARINE CORPS 191

• vii •

CHAPTER 10 WHAT INDIVIDUALS DO TO BECOME GREAT LEADERS 213

CHAPTER 11 DEVELOPING LEADERSHIP TEAMS 231

CHAPTER 12 THE ORGANIZATION’S ROLE IN DEVELOPING LEADERS 239

CHAPTER 13 MEASURING LEADERSHIP IMPROVEMENT AT GENERAL MILLS 263

CHAPTER 14 THE IMPORTANCE OF FOLLOW-THROUGH 267

APPENDIX RESEARCH METHODOLOGY 277

ENDNOTES 287

INDEX 293

viii • Contents

FOREWORD Today’s business climate demands leadership throughout the organization. The Extraordinary Leader draws on data from more than 200,000 individuals who have rated more than 25,000 leaders to show how leaders can go from being good to being great, from being average to being extraordinary. The book focuses on the top 10 percent of leaders, as defined by their stakehold- ers. These leaders are exemplars and should become the standard to which others aspire.

The Extraordinary Leader both complements and advances the work we began in Results-Based Leadership. In that earlier work, we argued that lead- ership is a combination of attributes and results, but we focused there on the “results” side of the equation; in this book, the authors emphasize the “attrib- utes” side of the equation and thus move toward a more complete picture of leadership. To this end, they are applying the logic from Jim Collins’ excellent work on how organizations can go from good to great performance on the per- sonal side of leadership. Rather than seeking quick fixes that don’t last, this book proposes a leadership science that will offer sustaining and enduring lead- ership value. The book successfully links these two approaches together, show- ing how the attributes that make a difference to subordinates and peers are exactly the ones that produce better results for the shareholders.

Leadership requires both attributes and results. There are two ways to dis- cover these attributes. First, find those attributes that drive financial and other results. Second, use “360-degree feedback” to define attributes that are right “in the eye of the beholder.” Such 360-degree instruments help leaders deter- mine what is expected from those they lead. They help leaders know the intended attributes that mean the most to those being led.

This book is informative because of its rich and thorough content, and it is useful because it contains ideas with impact, which will help leaders become seen as extraordinary by their associates. It links perceptual data with hard, quantitative business results, including unit profitability, retention sta- tistics, customer satisfaction, and employee commitment measures.

• ix •

An important message of the book is that leaders can change. Leaders can go from being good to being great, from being seen as adequate to being seen as extraordinary. The process for getting from good to great may differ some- what for each person, but there is a pattern. This pattern enables leaders to discern what they need to do to deliver more value.

The book offers a plethora of content and new ways to think about leader- ship based on both research and experience. It gives the reader multiple per- spectives of leadership, but amidst all that complexity, the book promises simplicity. The authors give the reader a conceptual framework by which to understand leadership attributes. Their “tent” model is a powerful way to describe leadership. I believe most readers will appreciate this graphic depiction of an extremely complex (and sometimes obtuse) subject. Further, the model moves beyond simply describing leadership to also describing ideal leadership development methods—expanding strengths versus dithering about weaknesses. The authors emphasize that the best way to raise a tent is to extend the poles skyward, not to go looking for the drooping piece of canvas and propping it up.

One test of a business book is how it informs practice and action. The observations made in this book will have impact when they change how lead- ers think and/or behave. With this in mind, let me share what I would advise a leader to do, based on the ideas in this book. I assume that this leader wants to move from being good to being extraordinary, from being seen by subordi- nates, peers, and supervisors as average to being in the top 10 percent in a 360-degree feedback or similar exercise.

• Display high personal character. Everything about great leadership radiates from character. Personal character improves the probability of exhibiting strong interpersonal skills. Some of this perceived character is innate and based on a personal value set; but more is driven by the leader’s self-awareness and interactions with others.

• Start small. Going from good to great follows an “S” curve of learning. Starting small means doing something now, something within your control that will have immediate impact. As small things cumulate, bigger things will happen. A leader should identify some quick, simple, and readily visible things that can be done along the “S” curve path.

• Excel at something. The worst leaders (34th percentile, or bottom third) have an “average” profile, with no great strengths or weaknesses. They are vanilla leaders, not standing out on anything. The impact of one perceived strength moves leaders to the 64th percentile, and three

x • Foreword

strengths moves them to the 81st percentile. My advice to you as a leader is to figure out what you are good at and improve it to the 90 percent level. Be good at something, then a few things.

• Connect competencies and leverage combinations. You are a better leader when you connect competencies and see the power of combinations. For example, leaders who are highly competent at Focus on Results and Interpersonal Skills have a powerful combination. With a single strength in Interpersonal Skills, only 9 percent are at the 90th percentile. With a single strength in Focus on Results, only 13 percent are at the 90th percentile. With a combination (both Interpersonal Skills and Focus on Results perceived as strengths), 66 percent are at the 90th percentile.