Agustin V. Arbulu C., CEO Metro Home Health Care Summer 2012.

Agustin V. Arbulu C., CEOMetro Home Health Care

Summer 2012

Individuals build organizations or succeed because they have a clear vision

◦Vision – 2 components

Core Ideology

Envisioned Future

Drives Vision

Drives Strategy

Drive Climate/Culture

Leaders Create the Climate for Success

50-70% of variance inOrganizational Climate explained by differences in Leadership Styles

28% of variance inFinancial Results (profits and revenue) explained by differences in OrganizationalClimate

Individual Competencies Leadership

StylesOrganizational

ClimateResults

Emotional Intelligence We feel before we think Our thoughts are emotionally toned by the

oldest parts of the brain, not the neocortex

Individual Competencies

LeadershipStyles

Organizational Climate

Results

Competencies Individual Emotional Intelligence suggests

how easy or difficult it will be to change leadership behavior to match the situation

Emotional Intelligence influences the optimal choice of leadership styles and the successful implementation of related behaviors

LeadershipStyles

Results

Leadership Styles

LeadershipStyles

Results

Patterns of behavior Your ability to match your behavior to the

situation Use of the full array of styles

Individual Competencies Leadership

StylesOrganizational

ClimateResults

“The feel of the place” Your opportunity to create “star”

performers The source of discretionary energy

Why do some intelligent people including students walk blindly through the realms of life unable to perform?

i/AVAC/Pres/2004/Spring2004 11

Why Do Smart People Fail?

Studies found 81% of the competencies that distinguished outstanding managers were related to emotional intelligence. Boyatzis, (1982)

Why Do Smart People Fail?

“In studies of 40 different corporations…emotional competencies were found to be twice as important in contributing to excellence as pure intellect and expertise.”Goleman, WWEI (cf. Jacobs and Chen, 1997)

Further Data

Developing skills pertaining to self-awareness, social awareness, self-management and relationship management, account for close to 90% of what distinguishes outstanding performers or leaders from average ones.

“IQ is a threshold competence, . . . but it doesn’t make you a star. Emotional Intelligence can.” William Bennis

“An unprecedented number went on to get MBAs…in the past it helped them advance in their careers. [But] . . . what sets people apart….all boils down to EI.” Lori Kocon

What Equates To Outstanding Performance?

67% are “emotional intelligence”“emotional intelligence” competencies

33% are related to cognitive or technical skills

To put it another way:

EI drives 2/3 of outstanding performanceEI has 2X the weight of cognitive ability and

technical skill combined

(See pages 31-37, Working with Emotional Intelligence)

“The capacity for recognizing our own feelings

and those of others, for motivating ourselves, for managing emotions

well in ourselves and in our relationships.”

Daniel Goleman

The keystone is the old Socratic admonition, “Know thyself” and using it to enhance one’s performance.

It is also means having the ability to read, transmit to and engage with other people

Positive impacton others

Self-Self-AwarenessAwareness

SocialSocialAwarenessAwareness

RelationshipRelationshipManagementManagement

Self-Self-ManagementManagement

Self Others

Relationship Relationship ManagementManagement

• Emotional Self-Awareness• Accurate Self-Assessment• Self-Confidence

• Empathy• Organizational Awareness• Service Orientation

• Emotional Self-Control• Transparency• Adaptability• Achievement Orientation• Initiative• Optimism

• Developing Others• Inspirational Leadership• Influence• Communication• Change Catalyst• Conflict Management• Teamwork & Collaboration

Any measurable characteristic of a person that differentiates level of performance in a given job, role, organization, or culture

Social Role, Values

Self-Image

Motive

Social Role, Values

Self-Image

Motive

SkillsKnowledge

Necessary fortop performancebut not sufficient

Characteristicsthat lead to longer-termsuccess

◦Focuses on behaviors/traits/characteristics that are developmentally scaled

◦For each competency, there is a target level of behavior that, when met or exceeded, positively impacts performance

◦ One size does not fit all. “…often various combinations of compe-tencies lead to success.” David McClelland, “Where Do We Stand on Assessing Competencies,” 1994

◦ One competency may compensate for another.

◦ Certain combinations of competencies may contribute to outstanding performance.

◦ Some competencies are more critical than others.

Self Others

RelationshipManagementRelationshipManagement

Self-Awareness

SocialAwareness

Self-Management

The key source for enhancing performance:

Emotional Self-Awareness: Recognizing how our emotions affect our performance

Figuring out one’s emotional pulse

Accurate Self-Assessment: Knowing one’s own inner resources, abilities and limits

Having a sense of one’s own strengths and limits

Self-Confidence: A strong sense of one’s self-worth and capabilities

Being self assured or having presence

The essence of Self-Awareness is seeing yourself as others see you.

◦People with high Accurate Self-Assessment (ASA) have smaller gaps between self and others’ views than people who score low on ASA* (Burckle & Boyatzis, 1999). * N=214, t-values range from 2.27 to 6.46, p<.001

◦Key starting component. Individuals who accurately assess themselves can move toward success!!

Self-Regulation◦Emotional Self-Control: keep disruptive emotions and impulses in check

◦Transparency: maintains integrity, acts congruently with one’s values

◦Adaptability: flexibility in handling change

Motivation◦Achievement: strives to improve or meet a standard of excellence

◦Initiative: ready to act on opportunities◦Optimism: persistence in pursuing goals despite obstacles and setbacks

◦ Empathy: senses others’ feelings and perspectives, and takes an active interest in their concerns

◦ Organizational Awareness: reads a group’s emotional currents and power relationships

◦ Service Orientation: anticipates, recognizes, and meets customers’ or clients’ needs

Note: Gus Pagnois, a retired general, highly decorated in both Vietnam and first Gulf War, states empathy is an “absolutely vital quality” in being a leader . . . helps know “where you can draw the line and make it stick.”

Self Others

RelationshipManagementRelationshipManagement

Self-Awareness

SocialAwareness

Self-Management

Leading Others

◦ Developing Others: senses others’ development needs and bolstering their abilities

◦ Inspirational Leadership: inspires and guides individuals and groups

◦ Change Catalyst: initiates or manages change

Working with Others

◦ Influence: has impact on others

◦ Conflict Management: negotiates and resolves conflict

◦ Teamwork and Collaboration: works with others toward a shared goal

It’s About Two Things:

◦Ability to lead, inspire others

◦Ability to cooperate, work well with others

◦The leader’s personal characteristics/traits (competencies identified with EI)

◦The styles used by others

◦The organization’s espoused values

◦Specific leadership situations and the people involved

◦Experience

◦A person’s strengths and weaknesses

◦Complexity of tasks

◦Time pressures

◦Risk associated with deviating from performance

◦Resources available

◦Directive

◦Visionary

◦Affiliative

◦Participative

◦Pacesetting

◦Coaching

Comment: In times of uncertainty and change, successful individuals use the 6 leadership styles.

Primary objective:

Getting immediate compliance

Questions to ask:◦ Who controls the work?

◦ What is the nature of performance feedback?

◦ What is the nature of the work of the group?

Most effective:

◦ When applied to relatively straightforward tasks

◦ In crisis situations◦ When deviations from compliance will result in serious problems

◦ With problem employees (when all else has failed)

Least effective:

◦ When applied to tasks that are more complex than straightforward

◦ Over the long term◦ With self-motivated, capable employees

Primary objective:

Provide long-term direction and vision for employees

Questions to ask:

◦ Is there a vision for the group or organization?

◦ Are employees committed to the vision?

◦ How is the leader perceived by his/her direct reports?

Most effective:

◦ When a new vision or clear direction and standards are needed

◦ When the leader is perceived as the “expert” or the “authority”

◦ With new employees who depend on the leader for guidance

Least effective:

◦ When the leader does not develop employees

◦ When the leader is not perceived as credible

◦ When trying to promote self-managed teams and participatory decision making

Primary objective:

Creating harmony

Questions to ask:

◦ What are the predominant employee/employee and employee/leader interactions?

◦ What is the nature of performance feedback?

◦ How are goals and standards represented in this organization?

Most effective:

◦ When used as part of a repertoire

◦ When giving personal help

◦ In getting diverse, conflicting groups to work together harmoniously

Least effective:

◦ When employees’ performance is inadequate

◦ In crises or complex situations needing clear direction and control

◦ With employees who are task-oriented or uninterested in friendship with their leader

Primary objective:

Building commitment and generating new ideas

Questions to ask:

◦ How are decisions made in this organization?

◦ How is poor or less-than- satisfactory performance dealt with?

◦ Who provides the direction in this organization?

◦ What is the level of competence of the employees in this organization?

Most effective:

◦ When employees are competent

◦ When employees must be coordinated vs. managed

◦ When a leader is unclear about the best approach

Least effective:

◦ In crises◦ When employees are not competent, lack crucial information, need close supervision

Primary objective:

Accomplishing tasks to high standards of excellence

Questions to ask:

◦ What happens when work is not performed to expectations in this organization?

◦ Does the leader feel comfortable delegating his work to others?

◦ What is the pace of work in this organization?

◦ What is the level of competence of the employees in this organization?

Most effective:

◦ When employees are highly motivated, competent, know their jobs

◦ When managing individual contributors

◦ In making the organization move fast

◦ For developing employees who are similar to the leader

Least effective:

◦ When the leader cannot do all his/her work personally

◦ When employees need direction, development, and coordination

Primary objective:

Supporting the long-term professional development of others

Questions to ask:

◦ Do employees have development and/or career plans?

◦ Are employees supported in achieving their professional development goals?

◦ Are employees interested in their own personal development?

Most effective:

◦ When employees acknowledge a discrepancy in performance

◦ With employees who are motivated to seek professional development

Least effective:

◦ When the leader lacks expertise

◦ When employees require considerable direction and feedback

◦ In crises

◦Leadership style employed in the work place impacts outcomes/results.

◦People’s perception of “what it’s like to work here”

◦Aspects of the environment that directly impact employees’ ability to do their jobs well

◦Determines how well leaders optimize their human resources and tap their “discretionary effort”

◦Flexibility

◦Responsibility

◦Standards

◦Rewards

◦Clarity

◦Team Commitment

Definition:◦ Lack of constraints in the workplace

◦ No unnecessary rules, policies, procedures, or practices

◦ New ideas are accepted freely

Questions to ask:◦ Do employees have to fight against unreasonable constraints?

◦ Is it easy to innovate/get new ideas accepted?

◦ Are there unnecessary rules and procedures?

Definition:◦ Employees have a lot of authority delegated to them

◦ Employees have freedom to make decisions about doing their own job

◦ Employees are held fully accountable for the outcome of their work

Questions to ask:◦ Are important tasks delegated to employees?

◦ Are employees encouraged to take initiative?

◦ Are individuals encouraged to take risks based on their own judgment?

◦ Are employees allowed the opportunity to experience the success or failure of their own efforts?

Definition:◦ The emphasis employees feel management puts on improving performance and doing one’s best

◦ The degree to which people feel that challenging but attainable goals are set for individuals and the organization

◦ The extent to which mediocrity is not tolerated

Questions to ask:◦ Does the performance bar rise every year?

◦ Can employees get away with doing less than their best?

◦ Is mediocrity tolerated?

Definition:◦ Rewards and recognition linked directly to performance

◦ Rewards and recognition differentiate levels of performance

◦ People know where they stand in terms of their performance

Questions to ask:◦ Do rewards outweigh punishment?

◦ Are rewards tied directly to the quality of performance?

◦ Does good performance lead to increased opportunities for personal growth?

Definition:◦ Employees know what is expected of them

◦ Employees know how those expectations relate to the larger goals and objectives of the organization

Questions to ask:◦ Do employees have a clear idea of what is expected of them?

◦ Do employees know how they personally contribute to the mission?

◦ Are goals, policies, procedures and lines of authority clearly articulated and understood?

Definition:◦ People are proud to belong to the organization

◦ Everyone provides extra effort when needed

◦ There is trust that others in the organization are working toward a common objective

Questions to ask:◦ Do individuals and teams cooperate effectively to get the job done?

◦ Do conflicts get resolved effectively?

◦ Do feelings of trust, pride, and organizational loyalty exist in the workplace?

◦Individuals who demonstrate the job competencies required perform better than counterparts who do not

◦Managers who use leadership styles effectively perform better

◦Competencies and styles impact leaders’ ability to create a positive organizational climate

◦Organizational climate impacts performance

General Managers who created high performance climate for their teams achieved better margins*

* Global Technology Organization, Hay McBer 2002

* p< .06= Statistically Significant Difference

General Managersn=21

Creating HighPerformance orEnergizing Climatesn=11

Average 2001 Business Results

Gross Margin* Profit Margin*

Creating Neutral or DemotivatingClimatesn=10

48% 29%

36% 17%

The earnings impact of creating a positive climate is substantial*

General Managers

(n=21)

Creating HighPerformance or Energizing Climates (n=11)Average 2001 Account Revenue = $356MM

Creating Neutral or Demotivating Climates n=10Average2001 Account Revenue = $250 MM

2001 Business Results for the Accounts ($MM)

Gross Margin Profit Margin

Dollar Value ofPositive Climate

$1,880 MM $1,136 MM

$900 MM $425 MM

$980 MM $711 MM

Over time organizational climate predicts financial growth and performance*

*Life Insurance Leadership Study, LOMA & Hay/McBer, 1996

The average growth among outstanding executives totaled 63%; growth among typical executives totaled 24%

Financial Success

25% 50% 75%

Outstanding Executives

Good Executives

**p < .05

General Managers

Creating High

Performance or

Energizing Climates n=11

Creating Neutral

or Demotivating

Climates n=10

Mean Percentile of Differentiating Managerial Styles**

>66 % is considered a dominating Leadership Style

Pacesetting Visionary Coaching Affiliative Participative

48% 80% 71% 76% 71%

75% 40% 40% 41% 46%

= Statistically Significant Difference

General Managers who created high performance climates had a broader repertoire of leadership styles*

Leadership styles:how we interact with those we lead

• Empathy

Visionary Style

• Inspirational Leadership• Influence

• Transparency• Emotional Self-Control

Visionary Style

• Empathy

Affiliative Style

• Collaboration• Emotional Self-Control

Affiliative Style

• Empathy

Participative Style

• Collaboration• Conflict Management• Influence

• Emotional Self-Control• Adaptability

Participative Style

• Empathy

Coaching Style

• Influence• Developing Others

• Emotional Self-Control• Optimism

Coaching Style

Concluding Remarks

Questions

For additional information contact:◦ Agustin V. Arbulu C.◦ E mail: AArbulu@aol.com◦ Phone: 248.953.1614

Agustin V. Arbulu C., CEO Metro Home Health Care Summer 2012.

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