Family Business Leadership Bringing Out Your Best

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Family Business Leadership Bringing Out Your Best

• USC Family Business Program
• September 4 5, 2002
• Ed Cox, Ph.D.

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Bringing Out Your Best

• You are in a leadership role
• Good leadership makes the difference between a
  great company and an ordinary one
• You can choose which leadership style to use

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INHERITING THE BUSINESS FROM YOU MAKES ME A BORN
LEADER, RIGHT, DAD?
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We will cover

• The five key tasks of a family business leader
• Why family businesses are different
• Common dilemmas of leadership
• Your best styles of leadership
• When to use what style

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What are the qualities of a good leader in a
family business?
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A Short Quiz on Leadership Behavior

•  From Kouzes and Posner, The Leadership
  Challenge How to Get Extraordinary Things Done
  in Organizations. (1987)

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What is Leadership?

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• "In essence, leadership appears to be the art
  of getting others to want to do something you are
  convinced should be done."
•  
• --Vance Packard, The Pyramid Climbers. (1962)

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What is Leadership?

•  
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• "Leadership is the process whereby an
  individual influences the behavior of people in a
  way that makes them more likely to achieve
  organizational goals.
• --Eric G. Flamholtz, Growing Pains. (1990)

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Managers vs. Leaders

• Managers
• Help make things work well.
• Get other people to do.

• Leaders
• Help make things change. (Albert V. Casey)
• Get other people to want to do. (Kouzes Posner)

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Leadership Styles Continuum

• Autocratic
• Benevolent Autocratic
• Consultative
• Participative
• Team (consensus)
• Laissez-faire
• --(Eric Flamholtz, Growing Pains. (2000)

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The Juiciness Factor in Family Businesses
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Triangling, De-Triangling
You
A
B
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Power of theNon-Anxious Presence

• Your non-anxious presence will reduce the anxiety
  in the system.
• Remember, you influence all members of a system,
  directly or indirectly.
• If you are connected with people and an issue and
  remain calm, you will help others to function.

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Five Factors of Well-DefinedPersonal Leadership

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• 1. The capacity to notice and reduce your own
  reactivity.
• To look at your own part in the process, how you
  may have become vulnerable to the system.

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• 2. Having clear life goals.
• Knowing what you believe, where you stand, what
  is or is not negotiable.

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• 3. The capacity to take your own position in
  relation to others.
• An important part of leadership is staying
  connected to the people in the system and to the
  issue.
• Taking a position and making it public reduces
  anxiety in a system.

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• 4. The ability to deal with issues of opposition
  (the natural function of a system).
• Be prepared for reactivity, be prepared to
  decrease your anxiety during it. Get playful.

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• 5. The resolve to stay on course when others get
  reactive.
• Behave according to your beliefs rather than
  explaining what and why (being defensive).

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Characteristics of Superior Leaders

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Characteristics of Superior Leaders

• (Santa Clara Univ. Survey. N 2615)
• CHARACTERISTIC Ranking of Managers Selecting
• Honest 1 83
• Competent 2 67
• Forward-Looking 3 62
• Inspiring 4 58
• Intelligent 5 43
• Fair-Minded 6 40
• Broad-minded 7 37
• Straightforward 8 34
• Imaginative 9 34
• Dependable 10 33
• Supportive 11 32
• Courageous 12 27
• Caring 13 26
• Cooperative 14 25
• Mature 15 23

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Credibility

• Taken together, the first four characteristics
  comprise what some communications experts call
  Credibility.
• Honest
• Competent
• Forward-Looking
• Inspiring

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Six Key Tasks of an Effective Family Business
Leader

• Challenge the Process
• Inspire a Shared Vision
• Enable Others to Act
• Model the Way
• Encourage the Heart
• Manage the Hat Collection
• (--Adapted from Kouzes Posner 1987 1995)

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1. Challenge the Process

• Search out challenging opportunities to change,
  grow, innovate, and improve.
• Experiment, take risks, and learn from the
  accompanying mistakes.

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2. Inspire a Shared Vision

• Envision an uplifting and ennobling future for
  the business and the family
• Enlist others in a common vision by appealing to
  their values, interests, hopes, and dreams.

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3. Enable Others to Act

• Foster collaboration by promoting cooperative
  goals and building trust.
• Strengthen people by sharing information and
  power and by increasing their discretion and
  visibility.

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4. Model the Way

• Set an example for others by behaving in ways
  that are consistent with your stated values.
• Plan small wins that promote consistent progress
  and build commitment.

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5. Encourage the Heart

• Recognize individual contributions to the success
  of every project.
• Celebrate team accomplishments regularly.

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6. Manage the Hat Collection

• Understand the need for boundaries between family
  and business.
• Make sure you wear the proper hat for each
  discussion/decision.

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What are Your Strongest Leadership Traits?

• (Score your Quiz)

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Employee Continuum
Dedicated
Compliant
Disgruntled
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Leadership That Gets Results

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Leadership SkillsRate Yourself

• See Leadership Worksheet

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Topics to Consider

• Emotional Intelligence
• Impact of Leadership Styles on Organizational
  Climate
• Leadership Styles
• Your Leadership Style
• A Worksheet for Improvement

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Emotional Intelligence

• Self-Awareness
• Self-Management
• Social Awareness
• Social Skill

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Self-Awareness

• Emotional self-awareness
• Accurate self-assessment
• Self-confidence

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Self-Management

• Self-control
• Trustworthiness
• Conscientiousness
• Adaptability
• Achievement orientation
• Initiative

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Social Awareness

• Empathy
• Organizational awareness
• Service orientation

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Social Skill

• Visionary leadership
• Influence
• Developing others
• Communication
• Change catalyst
• Conflict management
• Building bonds
• Teamwork and collaboration

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The Climate in your Business
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Organizational Climate

• FlexibilityHow free employees feel to innovate
  (without red tape)
• ResponsibilitySense of responsibility to the
  organization
• StandardsThe level of standards people set and
  expect

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Organizational Climate

• RewardsAre apt and accurate
• ClarityAbout mission, purpose and values
• CommitmentLevel of commitment to a common purpose

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Six Styles

• Coercive
• Authoritative
• Affiliative
• Democratic
• Pacesetting
• Coaching

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Analyze Each Style by

• The leaders modus operandi (M.O.)
• The style in a phrase (Phrase)
• Underlying emotional intelligence competencies (E
  Q)
• When the style works best (When best)
• Overall impact on climate (Climate)

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Coercive

• M.O.Demands immediate compliance
• PhraseDo what I tell you.
• EQDrive to achieve, initiative, self-control
• BestIn a crisis, turnaround, problem employees
• Climate--Negative

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Authoritative

• M.O.Mobilizes people toward a vision
• PhraseCome with me.
• EQSelf-confidence, empathy, change catalyst
• BestNew vision, clear direction
• ClimateMost strongly positive

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Affiliative

• M.O.Creates harmony builds emotional bonds
• PhrasePeople come first.
• EQEmpathy, building relationships, communication
  
• BestHeal rifts, motivate during stress
• ClimatePositive

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Democratic

• M.O.Forges consensus through participation
• PhraseWhat do you think?
• EQCollaboration, team leadership, communication
• BestBuild buy-in, consensus, gain input from
  valued employees
• ClimatePositive

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Pacesetting

• M.O.Sets high standards for performance
• PhraseDo as I do, now.
• EQConscientiousness, drive to achieve,
  initiative
• BestGet quick results from highly motivated,
  competent team
• ClimateNegative

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Coaching

• M.O.Develops people for the future
• PhraseTry this.
• EQDeveloping others, empathy, self-awareness
• BestHelp employee improve performance or develop
  L.T. strengths
• ClimatePositive

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Six Styles Impact on Climate

• Authoritative .54
• Affiliative .46
• Democratic .43
• Coaching .42
• Pacesetting -.25
• Coercive -.26

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Your Styles
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• The wicked leader is one who the people despise.
• The good leader is one who the people revere.
• The GREAT leader is the one who people say We
  did it ourselves.
• --Lao Tsu (Sixth Century, B.C.)

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Ed Cox, Ph.D. DoudHausnerVistar 100 N. Brand
Blvd., Sixth Floor Glendale, CA
91203 818-539-2267 edcox_at_dhvadvisors.com