Zenger and folkman 5 competencies of leaders

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

This page intentionally left blank

TH E EXTRAOR DI NARY LEADER

This page intentionally left blank

New York Chicago San Francisco Lisbon London Madrid Mexico City Milan New Delhi San Juan Seoul

Singapore Sydney Toronto

COMPLETELY REVISED AND EXPANDED EDITION

TH E EXTRAOR DI NARY LEADER

R

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.

ISBN: 978-0-07-163003-0

MHID: 0-07-163003-1

The material in this eBook also appears in the print version of this title: ISBN: 978-0-07-162808-2, MHID: 0-07-162808-8.

All trademarks are trademarks of their respective owners. Rather than put a trademark symbol after every occurrence of a trademarked name, we use names in an editorial fashion only, and to the sbenefit of the trademark owner, with no intention of infringement of the trademark. Where such designations appear in this book, they have been printed with initial caps.

McGraw-Hill eBooks are available at special quantity discounts to use as premiums and sales promotions, or for use in corporate training programs. To contact a representative please visit the Contact Us page at www.mhprofessional.com.

TERMS OF USE

This is a copyrighted work and The McGraw-Hill Companies, Inc. (“McGraw-Hill”) and its licensors reserve all rights in and to the work. Use of this work is subject to these terms. Except as permitted under the Copyright Act of 1976 and the right to store and retrieve one copy of the work, you may not decompile, disassemble, reverse engineer, reproduce, modify, create derivative works based upon, transmit, distribute, disseminate, sell, publish or sublicense the work or any part of it without McGraw-Hill’s prior consent. You may use the work for your own noncommercial and personal use; any other use of the work is strictly prohibited. Your right to use the work may be terminated if you fail to comply with these terms.

THE WORK IS PROVIDED “AS IS.” McGRAW-HILL AND ITS LICENSORS MAKE NO GUAR- ANTEES OR WARRANTIES AS TO THE ACCURACY, ADEQUACY OR COMPLETENESS OF OR RESULTS TO BE OBTAINED FROM USING THE WORK, INCLUDING ANY INFORMA- TION THAT CAN BE ACCESSED THROUGH THE WORK VIA HYPERLINK OR OTHERWISE, AND EXPRESSLY DISCLAIM ANY WARRANTY, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. McGraw-Hill and its licensors do not warrant or guarantee that the functions contained in the work will meet your requirements or that its operation will be uninterrupted or error free. Neither McGraw-Hill nor its licensors shall be liable to you or anyone else for any inaccuracy, error or omission, regardless of cause, in the work or for any damages resulting therefrom. McGraw-Hill has no responsibility for the content of any information accessed through the work. Under no circumstances shall McGraw-Hill and/or its licensors be liable for any indirect, inci- dental, special, punitive, consequential or similar damages that result from the use of or inability to use the work, even if any of them has been advised of the possibility of such damages. This limitation of liability shall apply to any claim or cause whatsoever whether such claim or cause arises in contract, tort or otherwise.

www.mhprofessional.com
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.

This page intentionally left blank

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.

• Use a nonlinear approach to becoming a better leader. For example, if you get lousy feedback on technical skills, the best approach may not be to work on improving your technical skills. The authors’ proposal for competency companions suggests that it may be in your interest to improve your interpersonal skills as the best way to improve the perception of your technical skills.

• Build on your strengths. Figure out what you do well and magnify it. It only takes strength in a few (two to four) attributes while being average in the rest to achieve a high probability of being seen as a great leader. So, a leader needs to build on strengths. Find what you do well, then find the combination of competencies that you should do well to be seen as more effective.

• Remedy fatal flaws. The authors provide data showing that these are an inability to learn from mistakes and develop new skills; being interpersonally inept; being closed to new ideas; failure to be accountable for results; not taking initiative. Assess yourself and see how others assess you on these five fatal flaws. If any show up, work on them fast and furiously.

These suggestions are just the beginning of ideas with impact that you can draw from this book. However, these ideas represent the content that may help you as a leader to move from being good to being great. In the context of today’s organizations, applying these ideas will not only help leaders improve but also help organizations become more competitive.

Dave Ulrich

Foreword • xi

This page intentionally left blank

ACKNOWLEDGMENTS This book began several years ago as I was walking down the hall looking over some statistical output and bumped into Jack Zenger. Jack’s question was, “Are you doing anything that’s interesting?” My response was, “Funny you should ask, look at this data.” What began as a fascination with some statisti- cal analysis grew into a compelling body of evidence that modified substan- tially the conventional wisdom people have about what makes great leaders and how they develop.

To anyone who reads a number of books on leadership, it becomes appar- ent that more than 90 percent of what you read has been said before. The packaging is different, the examples amusing, but fundamentally there is lit- tle that is new. I had no interest in writing that kind of book. Our approach was to do rigorous research and then formulate a theory to explain the results. In presentations on our findings to clients, we have been very pleased with the “Ah-ha’s” that are apparent as we present the insights from our research. I am hopeful that readers of this book will have a simi- lar experience.

One of the most interesting findings from our research is something called “powerful combinations.” A powerful combination occurs when leaders com- bine two unique skills, which results in a substantial increase in overall effec- tiveness. In thinking about the process of getting this book written, I am very confident that neither Jack nor I could have accomplished this research and written this book alone. The combination of Jack’s experience, knowledge, and conceptual skills with my research, measurement, and change manage- ment background created a very powerful combination.

Working through the laborious and demanding process of writing this book with Jack has been an absolute delight. I am grateful for his patience, gentle persuasion, and persistence.

Many people contributed substantially by doing research and editing on the book. Thanks to both our colleagues, staff members and clients for their contributions and suggestions.

• xiii •

As is always the case with projects such as this, it was impossible to pro- duce record revenues, carry a full client load, write a book, and manage my responsibilities as a husband and father. It was my wife and family who gave up the most and voluntarily carried an increased load. I appreciate their will- ingness to do so very much. I recognize in them much that is extraordinary.

Finally, I would like to dedicate this book to my clients. I am extremely grateful to brilliant clients in a broad range of industries. Universally, they are dedicated to improving organizations and the individuals who work in them. They are continually looking for ways to make people more successful. The data, which is the foundation on which this book is built, came from them.

Joe Folkman

As a relatively young boy, I worked at the hospital for which my father was the administrator. From him I learned much about leadership and the challenges of being the senior executive. His relentless pursuit of improvement and will- ingness to abandon systems that were working for the promise of something better were great examples to me.

My academic interests in leadership began at UCLA as a research assistant in the Human Relations Research Group. I appreciate the tutelage of Robert Tannenbaum and the late Irv Weschler. Then at USC came an association with Bill Woolf, who exposed me to a sociologic and anthropologic view of leadership. Many others influenced my thinking, including Mel Sorcher, the creator of behavioral modeling training in industry.

I had many colleagues at Zenger-Miller who influenced me, beginning with Dale Miller, Steve Mann, Ed Musselwhite, Bob Sherwin, and dozens of others. Their association enriched my thinking about leadership and simul- taneously helped build an extraordinary company. To them all I express appre- ciation. I wish to thank my current colleagues who not only make the organization run smoothly but also are the genesis of countless good ideas. I could not ask for a more dedicated group with whom to work.

I would never have imagined that I’d be writing a book with a statistically inclined organizational psychologist. Joe Folkman’s academic interests have been quite opposite from mine, but the experience has been extremely posi- tive. Differences were quickly and painlessly resolved. The book is something that neither of us could have done alone.

xiv • Acknowledgments

Finally, I extend my deepest appreciation to my combined family. From our children, their spouses, and many grandchildren have come great lessons in leadership, along with opportunities to apply some of what I have learned. To my wife, Holly, I express special thanks. Besides being a good critic of what- ever I write, her organization of our life together creates the time and environ- ment in which it is possible to write a book.

Jack Zenger

Acknowledgments • xv

This page intentionally left blank

INTRODUCTION “What will I gain from reading this book?”

“Will it be worth the effort I expend in plowing into its contents?” “Will there be a good return on the time I invest in reading and studying it?” “What about this book is different than other books on the subject of

‘leadership’?” Those are justifiable questions. The more you know about our objectives

and the nature of this book, the easier it will be for you to arrive at good answers to those questions. Purchasing any book lightens your purse or wal- let a tad, but the real investment is not dollars. Reading any book consumes an extremely valuable commodity—your time.

We had three primary objectives in writing this book. First was simplicity. We insisted that the book provide a clear, understandable message. Nothing is more irritating than to read a book on a topic of great personal interest and then close the book and not be able to summarize the book’s point of view or basic thesis. We do not expect everyone to agree fully with all the conclusions we put forth.

But agree or not, this book contains a simple model of leadership, our answer about whether leadership can be developed, how leadership can be developed by individuals themselves, and what organizations can do to develop leaders. We present a case study of an organization that successfully transforms people into effective leaders. We present 20 insights, many of them new ideas, about leadership. These create the framework of the book.

Our second objective was that the contents be actionable. We do not expect that every idea in the book will be something you can implement immedi- ately; but success for us will be your ability to take a great portion of our find- ings and be able to do something with them. We believe that real learning shows up in new behavior.

If this book is a serious vehicle of learning, then the way to measure its value is via the new actions you take. In leadership development programs, there is the perennial plea to the instructors for “What do I do on

• xvii •

Monday morning?” Books on leadership should meet the same test. Most recommendations are ones that mere mortals can use comfortably—on Monday morning.

Our third objective was that the book be empirical. We insisted that it be based on hard data, facts, and statistical analyses. Huge sets of data were the touchstone to which we constantly returned.

Frankly, we tire of books by executives and business writers that primarily express personal philosophies and beliefs, especially when they are so incon- sistent. The discipline of leadership and those committed to developing lead- ers inside organizations surely deserve better. Our standard was to have every conclusion grounded in objective data. The combination of hard data and statistical analyses were to be the point of the spear. It then became our task to make sense of the data and to put logical explanations around our findings.

We welcome feedback from readers. The topic deserves a great deal of dia- logue from all of us who are concerned with the future of our great institu- tions—universities, schools, hospitals, government agencies, and businesses. These all need leaders to flourish. Our hope is that the information that fol- lows will in some small way aid in the development of those much-needed leaders.

xviii • Introduction

1

DEMYSTIFYING LEADERSHIP

Leadership is one of the most observed and least understood phenomena on Earth.

—J. M. Burns

The aura with which we tend to surround the words leader and leadership makes it hard to think clearly. Good sense calls for demystification.

—John Gardner

The Mystery Remains While we were seated at a dinner table recently, it became known that we were writing a book. A dinner guest immediately inquired, “What is the book about?”

“It is about leadership,” one of us replied. Without hesitation the guest inquired, “Do you really think people can be

developed into leaders? Aren’t they born that way?” (We’d like to have a dol- lar for every time that question has been asked of us over the past decades.) The question seems as hardy as cockroaches or crocodiles. People in general have that query at the tops of their minds and so do a lot of CEOs and pub- lic organization leaders.

And the question is really in two parts. If the question is answered using the popular party line that says, “Of course you can develop leadership in

• 1 •

people,” the immediate follow-up question is, “How do you do that?” It is to those two basic questions that we address this book.

Does the world need anything more written on the subject of leadership? On the one hand, it could be argued that the answer is a loud “No!” Consider the fact that more than 10,000 articles have been published about leadership in the past century. Whereas some are based on research, most reflect the personal opinions of the authors regarding leadership, derived from their own experiences or their observations of leaders. Many are written by successful business executives and reflect their own beliefs about what made them successful.

Add to that approximately a thousand research studies that have been conducted on leadership and published in scholarly journals. Then add nearly a thousand books that have been written about leadership over the past 100 years. Many of these were written by practicing leaders, and others were writ- ten by academicians and consultants who sought to explain this important role that some people perform. Given that immense body of literature, it would seem futile to add yet one more book.

The Reasons for One More Book Despite that extensive literature, leadership remains shrouded in mystery. Rather than making the subject clearer, one recognized leadership expert, Warren Bennis, summed it up by saying “the more that is written about lead- ership, the less we seem to know.”

Regarding the enormous number of research studies that have been con- ducted, another respected scholar observed, “The results of many of these studies are contradictory or lack any clear conclusion.”1

How Mysteries Are Solved? There is an astonishing description of one approach to solving a mystery in Sir Arthur Conan Doyle’s classic Sherlock Holmes tale.