Which of the following is a key behavior of the best leaders according to kouzes and posner?

Praise for the Fifth Edition of The Leadership Challenge

“My heart goes out to Jim Kouzes and Barry Posner with the deepest gratitude for this book, the most powerful leadership resource available. It is providential that at a time of the lowest level of trust and the highest level of cynicism, The Leader- ship Challenge arrives with its message of hope. When there are dark days in our lives, Kouzes and Posner will shine a light.”

—Frances Hesselbein, former CEO, Girl Scouts of the USA; author, My Life in Leadership

“Jim Kouzes and Barry Posner have taken one of the true leadership classics of the late twentieth century and made it freshly relevant for today’s twenty-first century leaders. It is a must-read for today’s leaders who aspire to contribute in a more significant way tomorrow.”

—Douglas R. Conant, New York Times bestselling author, TouchPoints; retired CEO, Campbell Soup Company

“For twenty-five years, the names Jim Kouzes and Barry Posner have been synony- mous with leadership. There is a reason for that. This book, in its new and updated form, demonstrates that leadership is a challenge you must win every day. It shows that every leader is unique, with his or her own style, and it helps you find your style. But the real beauty of this book is that it does not just tell you about leader- ship. It takes you by the hand, and walks you through the steps necessary to be better at what you do. It also gives you the confidence to take the kinds of risks every leader needs to take to succeed. I loved this book twenty-five years ago, and I love it today.”

—Joel Kurtzman, author, Common Purpose; editor-in-chief, Korn/Ferry Institute’s Briefings on Talent & Leadership

“We consider this twenty-fifth anniversary, fifth edition, the best leadership book out there because it combines solid research, marvelous stories, and highly usable advice. It struck us, as readers of prior editions, that Jim Kouzes and Barry Posner don’t just write about leadership. They lead, and they continue to innovate and model the way. We’re glad to be on the path behind them.”

—Jennifer Granholm and Dan Mulhern, coauthors, A Governor’s Story: The Fight for Jobs and America’s Economic Future

“If I could recommend only one of the tens of thousands of leadership books ever written, The Leadership Challenge would absolutely be my top choice, and by a wide margin. This new edition builds markedly on the last but remains character- istically Jim Kouzes and Barry Posner—a complex work in its underlying character, but brilliant in its simplicity and practical in design. The Leadership Challenge is the most useful leadership book ever written; I have each and every edition, and each is better than the last.”

—Tom Kolditz, author, In Extremis Leadership

“The Leadership Challenge has inspired and continues to inspire all those who have the will and commitment to take on the burden of responsibility entailed in leading other people. The book lightens that burden and even ennobles it. It values the humanity in us all and welcomes imagination and faith in the future. We are all grateful and better off with this book on the shelf and in our hearts.”

—Peter Block, author, Flawless Consulting

“The fifth edition of The Leadership Challenge is the culmination of decades of rigor- ous analysis of the characteristics of leadership. By modeling the behaviors described by Jim Kouzes and Barry Posner, every person can develop their leader- ship potential and become a more effective leader.”

—Dan Warmenhoven, executive chairman, board of directors, NetApp

“Developing generations of leaders for three decades, Jim Kouzes and Barry Posner are yet again at the cutting edge of leadership. Their five practices of exemplary leadership exactly put into words the characteristics of leadership that I have wit- nessed from many of the greatest football players to ever play the game. If you have ever aspired to be a leader, or need to take your leadership skills to the highest levels, this is the book for you—all you need to do is take the challenge!”

—Brent Jones, former All-Pro football player; managing partner, Northgate Capital

“The Leadership Challenge is the best research-based practical field guide for leaders I have ever read. While the world around us has changed significantly since 1987, when I picked up the first edition of the book, the simple relevant truths of what great leaders do has not. I love the personal best leadership stories that highlight the five simple-to-understand exemplary practices that really matter. Great leaders are lifelong learners, and there is no better place to start or continue your leader- ship learning journey than to read this book.”

—James Foster, senior vice president, chief product supply officer, the Clorox Company

“Whether you are just beginning your leadership journey, are a seasoned CEO, or a professor of leadership, this timeless leadership classic needs to be within constant reach!”

—Harry Kraemer Jr., former chairman and CEO, Baxter International; professor of management and strategy, Northwestern University’s Kellogg School of Management

“There are hundreds of leadership books on the market, and you’ll probably get something out of each of them, but none are so solidly based on research as The Leadership Challenge. This is the book that goes beyond opinion and guides you to those behaviors that bring out the strength in others.”

—Janelle Barlow, author, A Complaint Is a Gift and Branded Customer Service

“The Leadership Challenge is the first book I recommend to all new leaders in Kaiser Permanente. Twenty-five years after it was first written, it remains the best guide to leadership success, and in a time of global competition and economic uncer- tainty, the principles elucidated by Jim Kouzes and Barry Posner serve as a powerful foundation for any individual hoping to help others innovate and embrace change. Leaders should be required to re-read this book every five years of their career.”

—Robert Pearl, MD, executive director and CEO, the Permanente Medical Group, Kaiser Permanente

“Seldom, it seems, have I been in the office of an HR professional where I did not see a copy of The Leadership Challenge. The book has become a go-to source for professionals looking for insight into leadership development. Now Jim Kouzes and Barry Posner have gone back to the well to create an all-new fifth edition. While The Five Practices of Exemplary Leadership are as timely as ever, the stories are fresh and the insights are just as compelling. Simple and accessible, The Leader- ship Challenge is so packed with information that people who care about leadership need to put it on their shelves—but only after reading it cover to cover.”

—John Baldoni, president, Baldoni Consulting LLC; author, Lead With Purpose, Lead Your Boss, and Lead By Example

“It is truly laudatory that Jim and Barry are celebrating the twenty-fifth year of a book that never lost its appeal. The authors have observed, interviewed, consulted, taught, and thought for all those years, and they continually bring us the best stories, examples, and lessons to keep their work ever green. Bravo and thank you!”

—Beverly Kaye, founder, co-CEO, Career Systems International; coauthor, Help Them Grow or Watch Them Go

“Speaking from experience, it’s not easy to make research findings engaging, practi- cal, and a pleasure to read. In this new edition of The Leadership Challenge, Jim Kouzes and Barry Posner have once again found that elusive balance between focusing on the data and telling a great story. No other leadership book is as compelling, as comprehensive, or as effective in teaching us how to go about making the changes we must make, in order to become the kind of leaders who can move mountains. If you could read only one book about the art and science of leading, then this is without question the book you should read.”

—Heidi Grant Halvorson, author, Nine Things Successful People Do Differently

“The Leadership Challenge is a proven, data-driven model for leadership that has stood the test of time. The simple, effective framework works across industries and cultures, helping leaders engage their organizations and deliver superior perfor- mance; this has never been more important than in today’s interconnected, fast- moving world.”

—Mike Splinter, CEO, Applied Materials

“The Leadership Challenge has re-energized leadership at Applied Materials. The Five Practices of Exemplary Leadership provide a commonsense approach that is within the reach of anybody who needs to get work done through others.”

—Mary Humiston, senior vice president, global human resources, Applied Materials

“Kouzes and Posner have given us a handbook of hope: leadership can be learned at almost any level in an organization. The book provides identifiable skills, prac- tices, and abilities available to anyone willing to develop themselves—not just those charismatic personalities at the top. Research-based, conversationally written, and practically applied, The Leadership Challenge is absolutely the most compre- hensive and credible book on leadership to date.”

––Dianna Booher, author, Creating Personal Presence

“The Leadership Challenge has gone from being a revelation to a standard to a classic. It is now the defining book on leadership for our time, and there is not a business, government, academic, or military leader in the developed world who, consciously or not, has not been taught its lessons.”

—Mike Malone, associate fellow at Said Business School (Oxford); author, Bill & Dave

“When Jim Kouzes and Barry Posner write on leadership, all of us had better pay attention. The fifth edition of The Leadership Challenge will quickly become a classic. Stop what you are doing and start reading, leading, and achieving.”

—Pat Williams, senior vice president, Orlando Magic; author, Leadership Excellence

“The Leadership Challenge includes real-life stories of globally diverse and inclusive people sharing their personal leadership challenges and learnings. From these real- life stories and the authors’ extensive fact-based research, Jim and Barry challenge each of us to continually improve our leadership skills and inspire others to do the same, and give us the formula to do just that. This book is as close to the bible on leadership as you will find. From business person to family person anywhere in the world, it has lessons on leadership for all.”

—Stephen Almassy, global vice chair, OCA/Industry, Ernst & Young Global Limited

“For the last twenty years, I have been lucky enough to have worked with some of the world’s best mentors in the field of leadership development. Very few, I have discovered, are equally comfortable in both the ivory tower and corporate board- room. Jim and Barry have found the sweet spot and showcase it brilliantly in The Leadership Challenge. It’s hard to think of a book that has had more of an influence on my own writing, as well as my own practice advising corporate boards on CEO succession, than this landmark book. Although I could continue gushing for pages about the contributions that Jim and Barry have made to the field of leadership, I can boil down my thoughts into just two words: thank you!”

—Jeffrey Cohn, coauthor, Why Are We Bad at Picking Good Leaders?

“Nobody knows leadership better than Jim Kouzes and Barry Posner. They use real, current, and practical illustrations of what leadership looks like and then demon- strate how to improve its practice. A must-read for every leader, The Leadership Challenge should be a part of every entrepreneur and intrapreneur’s business plan!”

—Carol Sands, managing member, the Angels’ Forum

“Jim Kouzes and Barry Posner know how to draw upon what we know (the evi- dence) to describe and teach what we need to do (through examples and reflection exercises) in order to be more effective health care leaders. The book is as appropri- ate, accessible, and helpful for new leaders as it is for those with years of experience. I have personally observed current and future leaders using this book to strengthen their leadership and personal effectiveness.”

—Christy Harris Lemak, director, the Griffith Leadership Center in Health Management and Policy; associate professor, health management and policy, University of Michigan School of Public Health

“Jim and Barry start from the most basic aspect of leadership: that human beings need purpose, values, and respect to be motivated. Given their starting point, it is perhaps not surprising that they hit the mark. Still the best book out there on leadership.”

—Ken Wilcox, chairman, Silicon Valley Bank

“For twenty-five years The Leadership Challenge has been a source of inspiration and insight for some of the best educators I know. In this latest edition, Kouzes and Posner have added important wisdom and updated thinking to their work. The Leadership Challenge is indispensable reading for those who take on the leadership of our schools.”

—Kevin Skelly, superintendent, Palo Alto Unified School District

“The nation’s health care system is in transition with significant system and eco- nomic changes. Physician leadership will be necessary to make this transformation successful, while maintaining the focus on our patients. The Leadership Challenge gives present and future physician leaders the leadership practices that will make them both better leaders and physicians.”

—Fernando Mendoza, MD, MPH; professor and chief, Division of General Pediatrics; service chief, general pediatrics, Lucile Packard Children’s Hospital; associate dean of Minority Advising and Programs, School of Medicine, Stanford University

“Up-to-date, superbly compelling, and full of heart, the fifth edition of Jim Kouzes and Barry Posner’s classic draws on an unmatched trove of new data to offer fresh context to the fundamentals of great leadership. The Leadership Challenge remains the essential text for leaders who want to achieve the extraordinary in today’s hypercompetitive environment.”

—Sally Helgesen, author, The Female Advantage

“Peter Drucker would probably have called the publishing of Jim Kouzes and Barry Posner’s book The Leadership Challenge ‘a distinguished public service.’ There is no doubt that it was that and that the twenty-fifth anniversary edition of this wonder- ful book continues to show organizations how to get extraordinary things done.”

—William A. Cohen, Major General, USAFR, Ret; author of Drucker on Leadership and Heroic Leadership

“This fifth edition of The Leadership Challenge is Jim Kouzes and Barry Posner’s gift to leaders in the twenty-first century. Join them and hundreds of thousands of others using this guide to extraordinary leadership.”

— Geoff Bellman, consultant; author, Extraordinary Groups: How Ordinary Teams Achieve Amazing Results

“The twenty-fifth anniversary edition of The Leadership Challenge is another great reference for leaders and would-be leaders globally. Over the years, the Kouzes and Posner five leadership practices have crossed borders, cultures, and generations.”

—Joe Hage, associate CIO, American University of Beirut

“This fifth edition of The Leadership Challenge continues as a must-read for any global leader or aspiring leader. The Leadership Challenge has been my compass in guiding and developing as a leader, developing other leaders, and in engaging future leaders. Barry and Jim’s research reinforces that active learning and unending practice are foundational for leaders. To be a compelling leader, mastery of the principles of The Leadership Challenge is absolutely essential.”

—Bill Maxwell, former senior vice president, human resources, Oakwood Temporary Housing

“In the midst of great change, sometimes it is important to return to timeless ideas. In their twenty-fifth anniversary edition, Jim Kouzes and Barry Posner reframe their leadership principles for global challenges in the twenty-first century. If you read it before, it’s time to read it again. If you haven’t read it, expect a master class on leadership in these turbulent times.”

—Joel Barker, author, Paradigms: The Business of Discovering the Future

“The precious message of this insightful and important book is that leadership does not attach to a job or any position. It is seized, by a combination of credibility and courage. In a world where too many are simply milling around, here is a primer for taking charge.”

—Irwin Federman, general partner, US Venture Partners

“As the entire economy undergoes a fundamental phase change, in which both the organization and the workplace are being reinvented before our very eyes, a new generation of leaders will find in the deep insights and engaging stories of this updated edition of The Leadership Challenge the guidance they require.”

—Stephen Denning, author, The Leader’s Guide to Radical Management

“This classic has improved with age. Fresh examples and global cases make the fifth edition of The Leadership Challenge more relevant to more relationships than ever.”

—Tim Scudder and Michael Patterson, coauthors, Have a Nice Conflict

“Few leadership books stand the test of time, but The Leadership Challenge continues to show the path to being a leader of substance. Filled with great examples and rooted in rock solid research, it is a must-read for every leader.”

—John B. Izzo, author, Stepping Up

THE LEADERSHIP CHALLENGE MOBILE TOOL

We have developed a mobile tool to work with the concepts and practices within this book that you can use to help yourself along on your leadership journey and development path. The Leadership Challenge Mobile Tool Lite app is free and works with the Take Action sections at the ends of chapters Two through Eleven, adding utility and functionality to the activities located there. The app allows you to immediately integrate some of these Take Action activities into your daily life, making them an ongoing and natural part of your behavioral and attitudinal repertoire. Features include the ability to create and track your own personal Take Action plan, create remind- ers, and share via social media.

The complete Leadership Challenge Mobile Tool is even more robust with everything in the lite version and additional features such as the ability to seamlessly request-and-receive feedback, email activi- ties, and use calendar reminders. It also has more content, including all of the Take Action activities in the book, videos of the authors, a concise overview of The Leadership Challenge model, daily inspira- tional quotes, and a news feed. Initially available in the Apple App Store and others to come, on an ongoing basis, we will develop this app to fit your needs.

Visit www.leadershipchallenge.com/go/tlcapp to learn more.

http://www.leadershipchallenge.com/go/tlcapp
THE LEADERSHIP CHALLENGE

F I F T H E D I T I O N

How to Make Extraordinary Things Happen in Organizations

J A M E S M . K O U Z E S B A R R Y Z . P O S N E R

Copyright © 2012 James M. Kouzes and Barry Z. Posner. All rights reserved.

Published by Jossey-Bass A Wiley Imprint One Montgomery Street, Suite 1200 San Francisco, CA 94104-4594—www.josseybass.com

Author photo by John Brennan

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.

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Library of Congress Cataloging-in-Publication Data Kouzes, James M. The leadership challenge : how to make extraordinary things happen in organizations / James M. Kouzes, Barry Z. Posner.—5th ed. p. cm. Includes bibliographical references and index. ISBN 978-0-470-65172-8 (cloth); ISBN 978-1-118-28196-3 (ebk); ISBN 978-1-118-

28248-9 (ebk); ISBN 978-1-118-28431-5 (ebk) 1. Leadership. 2. Executive ability. 3. Management. I. Posner, Barry Z. II. Title. HD57.7.K68 2012 658.4'092—dc23 2012005728 Printed in the United States of America fifth edition HB Printing 10 9 8 7 6 5 4 3 2 1

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Contents

Introduction: Making Extraordinary Things Happen in Organizations 1

1 When Leaders Are at Their Best 9 The Five Practices of Exemplary Leadership—Leadership Is a Relationship—Putting It All Together: Credibility Is the Foundation

PRACTICE 1 MODEL THE WAY 41

2 Clarify Values 43 Find Your Voice—Affirm Shared Values

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S 3 Set the Example 71 Live the Shared Values—Teach Others to Model the Values

PRACTICE 2 INSPIRE A SHARED VISION 99

4 Envision the Future 101 Imagine the Possibilities—Find a Common Purpose

5 Enlist Others 127 Appeal to Common Ideals—Animate the Vision

PRACTICE 3 CHALLENGE THE PROCESS 155

6 Search for Opportunities 157 Seize the Initiative—Exercise Outsight

7 Experiment and Take Risks 185 Generate Small Wins—Learn from Experience

PRACTICE 4 ENABLE OTHERS TO ACT 213

8 Foster Collaboration 215 Create a Climate of Trust—Facilitate Relationships

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9 Strengthen Others 241 Enhance Self-Determination—Develop Competence and Confidence

PRACTICE 5 ENCOURAGE THE HEART 271

10 Recognize Contributions 273 Expect the Best—Personalize Recognition

11 Celebrate the Values and Victories 301 Create a Spirit of Community—Get Personally Involved

12 Leadership Is Everyone’s Business 329 Look to Leaders Everywhere—Know How Important You Are—Practice—Reflect—Remain Humble and Human—Seize the Moment—Remember the Secret to Success in Life

Notes 347 Acknowledgments 375 About the Authors 379 Index 383

For Tae and Jackie

with all our love.

Thank you for all you do and

all that you have given us.

I N T R O D U C T I O N

Making Extraordinary

Things Happen in Organizations

LEADERS GET PEOPLE MOVING. They energize and mobi- lize. They take people and organizations to places they have never been before. Leadership is not a fad, and the leadership challenge never goes away.

In uncertain and turbulent times, accepting that challenge is the only antidote to chaos, stagnation, and disintegration. Times change, problems change, technologies change, and people change. Leader- ship endures. Teams, organizations, and communities need people to step up and take charge. That is why we first wrote The Leadership Challenge, and why we found it imperative to write this fifth edition.

Change is the province of leaders. It is the work of leaders to inspire people to do things differently, to struggle against uncertain odds, and to persevere toward a misty image of a better future. Without leadership there would not be the extraordinary efforts necessary to solve existing problems and realize unimagined

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G E opportunities. We have today, at best, only faint clues of what the

future may hold, but we are confident that without leadership the possibilities will neither be envisioned nor attained.

THE LEADERSHIP CHALLENGE

The Leadership Challenge is about how leaders mobilize others to want to make extraordinary things happen in organizations. It’s about the practices leaders use to transform values into actions, visions into realities, obstacles into innovations, separateness into solidarity, and risks into rewards. It’s about leadership that creates the climate in which people turn challenging opportunities into remarkable successes.

The publication of this edition of The Leadership Challenge marks twenty-five years since the book was first released. We’ve spent more than three decades together researching, consulting, teaching, and writing about what leaders do and how everyone can learn to be a better leader. We’re honored by the reception we’ve received in the professional and business marketplace. Although we and other authors regularly contribute new works, we are blessed that students, educators, and practitioners continue to find that The Leadership Challenge is still useful to them, both conceptually and practically, and that it stands the test of time.

We persist in asking today the same basic question we asked in 1982 when we started our journey into understanding exemplary leadership: What did you do when you were at your personal best as a leader? We’ve talked to men and women, young and old, represent- ing just about every type of organization there is, at all levels, in all functions, from many different places around the world. Their stories, and the behaviors and actions they’ve described, have resulted

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in the creation of The Five Practices of Exemplary Leadership® framework described in this book. When leaders do their best, they Model the Way, Inspire a Shared Vision, Challenge the Process, Enable Others to Act, and Encourage the Heart.

The Leadership Challenge is evidence based. The Five Practices are derived from research and we illustrate them with examples from real people doing real things. With each edition of the book, we update the research—both our own findings and those from other scholars around the globe. And we continue to update the stories, cases, and examples of exactly what people do when they are at their best as leaders.

With each new edition, we become clearer ourselves about what really makes a difference. We get the chance to reiterate what’s still important, to discard what’s not, and to add what’s new. We get the chance to contemporize the framework and freshen up the language and point of view so that the book is highly relevant to current circumstances and conditions. We get the chance to let go of tan- gents—those important but smaller points that can be distracting or make things more complicated than they need to be. We get the chance to be more prescriptive about the best practices of leaders. The more we research and the more we write about leadership, the more confident we become that leadership is within the grasp of everyone and that the opportunities for leadership are boundless and boundaryless.

Of course, with each edition, we also get to address a new audi- ence, and sometimes even a new generation of emerging leaders. That opportunity motivates us to collect new cases, examine new research findings, and talk with people we haven’t heard from. It encourages us to perform a litmus test of relevance on our results: Does this model of leadership make sense? If we started out all over again, would we find new leadership practices? Would we eliminate

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G E any of the practices? In this regard, we are aided by the ongoing

empirical data provided by the online version of the Leadership Practices Inventory (LPI). This inventory, which assesses The Five Practices, provides 500,000 to 750,000 responses annually and keeps us on guard and on target in identifying the behaviors that make a difference—and the ones that don’t seem to matter.

And, with each new edition, we get a chance to speak again with those of you who have read earlier editions of The Leadership Chal- lenge in school or in the workplace. If you’re reading this book for the first time, welcome. If you are returning to it again, welcome back. Join us in reading this new edition so that you can learn about and be reminded of The Five Practices and what they look like in action today. Learn more about how you can continue to grow and to develop yourself as leader.

We expect that all of you face vexing issues that not only make leadership more urgent but also require you to be more conscious and conscientious about being a leader. Others are looking to you to help them figure out what they should be doing and how they can develop themselves to be leaders. You don’t just owe it to yourself to become the best leader you can possibly be. You’re even more responsible to others. You may not know it, but they’re expecting you to do your best.

A FIELD GUIDE FOR LEADERS

How do you get other people to want to follow you? How do you get other people, by free will and free choice, to move forward together on a common purpose? How do you mobilize others to want to struggle to achieve shared aspirations? These are the impor- tant questions we address in The Leadership Challenge. Think of it as

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a field guide to take along on your leadership journey. Think of it as a manual you can consult when you want advice and counsel on how to get extraordinary things done in your organization.

In Chapter One, we establish our point of view about leadership by sharing a Personal-Best Leadership Experience—a case study about how one leader helped turn her organization around and develop it into an award-winning venture. We provide an overview of The Five Practices, summarize the findings from our more than three decades of empirical studies about what leaders do when they are at their best, and show that these leadership practices make a difference.

Asking leaders about their personal bests is only half the story. Leadership is a relationship between leaders and followers. A com- plete picture of leadership can be developed only if you ask followers what they look for and admire in a leader. In the second part of Chapter One, we reveal what characteristics people value most in their leaders, and demonstrate that credibility is the foundation of the relationship between leaders and their constituents.

The ten chapters that follow describe The Ten Commitments of Leadership—the essential behaviors that leaders employ to make extraordinary things happen—and explain the fundamental princi- ples that support each of The Five Practices. We offer evidence from our research, and that of others, to support the principles, provide actual case examples of real people who demonstrate each practice, and prescribe specific recommendations of what you can do to make each practice your own and to continue your development as a leader. A Take Action section concludes each of these chapters— here’s what you need to do to make this leadership practice an ongoing and natural part of your behavioral and attitudinal reper- toire. Whether the focus is your own learning or the development of your constituents—your direct reports, team, peers, manager, community members, and the like—you can take immediate action

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G E on every one of our recommendations. They don’t require a budget

or approval from top management—or anyone else. They just require your personal commitment and discipline. If you’d like a mobile partner or tool to help you take action along your leadership journey and development path, download The Leadership Challenge Mobile Tool app, which has been designed to work with these sections, the activities within, and the practices in general.

In Chapter Twelve, we offer a call to everyone to accept personal responsibility to be a role model for leadership. Through five editions now of The Leadership Challenge, we keep relearning and reminding ourselves and others that leadership is everyone’s business. The first place to look for leadership is within yourself. Accepting the leader- ship challenge requires practice, reflection, humility, and commit- ment to making a difference. And, in the end, we conclude that leadership is not an affair of the head. Leadership is an affair of the heart.

We recommend that you first read Chapter One, but please note that after that there is no sacred order to proceeding through the rest of this book. Go wherever your interests take you. We wrote this material to support you in your leadership development. Just remem- ber that each practice is essential. Although you might skip around in the book, you can’t skip any of the fundamentals of leadership.

Finally, technology allows us to offer you insights beyond those in this book. On our Web site www.theleadershipchallenge.com, you can find out more about how we conducted our research, look at detailed information on our methodology, review statistical data, read highlights of validation studies by other scholars of our leader- ship paradigm, and sign up for our monthly newsletter.

The domain of leaders is the future. The leader’s unique legacy is the creation of valued institutions that survive over time. The most

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significant contribution leaders make is not simply to today’s bottom line; it is to the long-term development of people and institutions so they can adapt, change, prosper, and grow. We hope this book contributes to the revitalization of organizations, to the creation of new enterprises, to the renewal of healthy communities, and to greater respect and understanding in the world. We also fervently hope that it enriches your life and that of your community and your family.

Leadership is important, not just in your career and within your organization, but in every sector, in every community, and in every country. We need more exemplary leaders, and we need them more than ever. There is so much extraordinary work that needs to be done. We need leaders who can unite us and ignite us.

In the end, we realize that leadership development is self- development. Meeting the leadership challenge is a personal—and daily—challenge for everyone. We know that if you have the will and the way to lead, you can. You have to supply the will. We’ll do our best to keep supplying the way.

James M. Kouzes Orinda, California

Barry Z. Posner Santa Clara, California

May 2012

C H A P T E R 1

When Leaders Are at Their Best

“FEARLESS.” That’s what it says in bold white letters on a black bracelet that Barby Siegel wears.1 She borrowed it from her teenage daughter to serve as a daily reminder of the spirit she likes to bring to her role as CEO of Zeno Group, an award-winning, multidisci- plinary public relations firm. And it’s exactly that kind of spirit that fueled the extraordinary growth and willingness to take risks that PRWeek cited in 2011 when it awarded Zeno two of its top honors— Agency of the Year and Midsize Agency of the Year.

But Zeno wasn’t always at the head of its class. When Richard Edelman, president and CEO of Zeno’s parent company, Daniel J. Edelman, Inc., called Barby and asked her to lead Zeno to the next level, the agency was languishing. Barby, who had honed her craft over eleven years at Edelman and then for eight years at Ogilvy PR, where she restarted their global consumer marketing practice, was ready for a new opportunity and challenge.

Barby knew Zeno had a great team and a solid client base, but for them to grow to the next level, she believed that they had to get

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G E some early game-changing wins. And to do that they’d need some

of that fearlessness that she proudly advocates for with her bracelet. She would tell them, “We need to stand on our own two feet and not be afraid because we’re Zeno that we can’t go after this piece of business or that we’re not going to be taken seriously.” She talked about it as “playing ahead of the game—ahead of where we really were.” It didn’t take long for this focused determination and can-do spirit to spread.

One of Barby’s early actions was to hold a day-and-a-half leader- ship team meeting with her direct reports. Together they talked about such basic questions as “Who are we? What are we focusing on?” The conversations and sharing of ideas were galvanizing, and during that meeting they came up with the words that they envi- sioned as describing themselves. These words—fearless, collaborative, creative, decidedly different, and nimble—are their values and their promise to their clients.

Zeno describes itself as providing “senior level strategy and day- to-day engagement” and as having “no silos,” and you can see this in Barby’s actions. For example, she has spent many a night in the conference room with team members preparing decks for client presentations. And if she’s not working on a presentation, she might be at the local grocer buying snacks to take back to the room. She’s present at client pitches. She also spends as much time as she can with staff. Barby takes this responsibility seriously. “I often say, ‘I am privileged to lead this team.’ I am. Without them we’d be nothing. I need all these people to bring their best game every day. I wake up every day and say, What can I do to make sure these people are happy and energetic, that they’re going to stay and continue to give our clients their best work every day?”

These sentiments are reciprocated by her associates. Alison Walsh, account supervisor, affirms that “when you have a CEO who

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is so ingrained in the agency, staff, and each and every one of the clients, you only want to push yourself further.” Because Barby is so transparent about her values and vision for the organization, “There’s no question,” according to Alison, “that people want to follow her.”

Barby describes the Zeno corporate culture as one that promotes hard work and continued success while also encouraging work-life balance and individualism. “I’m sure many companies describe themselves as a family,” says Barby. “We take it seriously.” For example, there are a lot of women in the firm, and Barby takes her role as a woman CEO very seriously. “I want them to see that it’s possible to have a really great career and have a family and do all the things that that entails.” She talks a lot about her own kids, her husband, her two older sisters, and her elderly parents. She’ll tell her staff when she goes out to have lunch with her parents. “I want them to know that it’s okay to get out of the office for a couple of hours and tend to their families.” She has a photo gallery in her office with lots of family pictures displayed along with photos of agency get- togethers and some of the staff and their babies. “I’m very mindful,” says Barby, “that the staff is like me. We all have mortgages to pay. Many have children to raise. When I make decisions about what the firm is going to do, I am mindful that at the end of the day there are hundreds of families depending on our doing right for our clients.”

Unlike traditional agencies, Zeno is an organization without walls, where everyone, regardless of level, routinely works together on all aspects of a client engagement. “Everyone is treated with great respect,” said Cheryl Pellegrino, senior vice president. “There is a strong sense of collaboration and teamwork. People genuinely like one another and work well together. It’s all for one and one for all.” Barby has structured the organization and assignments so that people

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G E literally have to work with one another, learn from one another, and

celebrate together. Marcie Kohenak, account supervisor, adds that whereas many agencies may say they’re one team, “Zeno walks the walk. Never before have I worked in an office where colleagues are so collaborative, looking out for clients and the teams before them- selves, and where individuals from different offices and fields are always working together. Not only does this attitude benefit our clients, who are always being served by a subject matter expert, but as employees we have the opportunity to constantly grow, working with and learning from colleagues across the country.”

Zeno is also unique in the PR business in how it manages its books: all offices operate under one P&L. If a client in Chicago needs the expertise of someone in Los Angeles, New York, Toronto, or São Paulo, there’s no conflict or conversation about it. Barby said that this means that “the staff can just do their best work, and don’t need to feel pulled by one P&L or another. Everyone is focusing on our client’s success.”

Collaborating across offices to get the job done also facilitates innovation and experimentation. Creativity is hugely important to Barby. “We want to be creative in everything we do, even in the most mundane tasks,” she said. This is what, in large part, keeps Jessica Vitale, vice president, with Zeno. “You get countless opportunities to work on exciting projects for clients who are leaders in their field, and the chance to work alongside incredibly smart, passionate people across multiple offices who provide great support and encourage, even push, you to grow,” she said. This learning environment, Barby explained, “helps all of us to think differently, to be unafraid to experiment and try some things that have not been done before.”

There are many celebrations over the year, such as the Friday after-work sing-alongs and other informal get-togethers and recogni-

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tions. Barby established an annual New Year’s Eve party every June 30, the end of Zeno’s fiscal year. On that day, all the offices connect by teleconference. They pop champagne and raise a virtual toast. Barby reflects on what they’ve accomplished and talks about what’s ahead in the future. Then all the offices continue with their own celebrations.

In an end-of-year email to her staff, Barby summed up Zeno’s achievements and culture:

Each of you played a major role in the success of our firm, and each of you are key to the journey that continues. . . . [Words of praise] should be aimed squarely at you for the amazing work you and your teams have delivered and the ever-deepening client partnerships you are forging. . . . As we close out the year, I am more excited than ever for what’s to come, and there isn’t a group of professionals I would rather do it with day in and day out.

We have much to look forward to. Some days will be harder than others but we are on a mission to take this firm to greater heights on the shoulders of client trust and partnership, game-changing work and a talented and highly motivated staff. I think we have seen that when we band together we can really do it.

Barby is not one to rest on her laurels, though. The recognition Zeno has earned is just the beginning. “I can’t just live in the present,” she said. “I’ve got to always be thinking about the next thing we should be working on and where we’re headed, whether geographically or with innovation or talent.” No doubt that the next thing is likely to require more of that same fearlessness that got Barby and her colleagues to where they are today.

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G E THE FIVE PRACTICES OF

EXEMPLARY LEADERSHIP

In undertaking the transformation at Zeno, Barby Siegel seized the opportunity to change business as usual. And although Barby’s story is exceptional, it is not singular. We’ve been conducting original global research for more than thirty years, and we’ve discovered that such achievements are actually commonplace. When we ask people to tell us about their personal-best leadership experiences—experi- ences that they believe are their individual standards of excellence— there are thousands of success stories just like Barby’s.2 We’ve found them in profit-based firms and nonprofits, agriculture and mining, manufacturing and utilities, banking and health care, government and education, the arts and community service, and many, many others. These leaders are employees and volunteers, young and old, women and men. Leadership knows no racial or religious bounds, no ethnic or cultural borders. Leaders reside in every city and every country, in every function and every organization. We find exem- plary leadership everywhere we look.

And we’ve also found that in the best organizations, everyone, regardless of title or position, is encouraged to act like a leader. That’s because in these places, people don’t just believe that everyone can make a difference; they act in ways to develop and grow people’s talents, including their leadership capabilities. Joon Chin Fum-Ko, director of people development and engagement at Infocomm Development Authority of Singapore, underscores this thinking when she explains how they are “working to build an organization and culture where everyone feels that they are leaders, regardless of what they do, and appreciates that what each one of us does has an impact, even a legacy.”