ABC-Squared

ABC2 – A Leadership Theory

Tony Loyd, [email protected]

Disclaimers

The ABC2 model is not a cure-all. It is not a silver bullet. There are no silver bullets.

This isn’t rocket science. It’s pretty simple stuff. I like the model because it gives me a way to explain what’s happening in my organization.

The ABC2 theory is not new, though I’ve never seen a model laid out in this way. This theory draws on many other theories. I have annotated where I know the source. Sometimes I forget where I learned something.

This Stuff Matters

• The organization is confused

• Change initiatives stall• Behaviors are misaligned• Employees leave• We fail to meet

expectations• Shareholders are

dissatisfied

• The organization is clear• Change initiatives soar• Behaviors lead to results• Employees are engaged• We achieve our results• We create shareholder

value

When Behavior is Handled Poorly

When Behavior is Handled Well

The ABC2 Model is about more than an academic exercise. When done right, it leads to real business results.

The HypothesisHere’s my hypothesis:1. As leaders our goal is to delight shareholders, customers,

employees, and the communities in which we work2. We have a specific tool set with which to work. To be successful,

we focus on setting a clear tone, direction and systems3. The right employee behaviors, aligned to our strategy and

executed in a well-design environment, lead to business results. And yet, our strategy is just one input to employee behavior

4. The ABC2 Model says that there are three layers to employee behavior

1. Level 1 is observable behaviors2. Level 2 is invisible psychological processes3. Level 3 is an unconscious predisposition

5. As leaders, we need to understand these drivers of behavior and focus our effort on where we can make a difference

6. There are specific actions we can take to drive the behavior that will produce the desired business results. I’ll provide an action list.

Our Goals

Delight Shareholders,

Customers, Employees & Communities

Maximize Shareholder

Value

Target , Win and Grow Customers

Recruit, Engage and

Develop Employees

Be a Good Citizen

No matter which company we work for, as leaders our goal is to delight shareholders, customers, employees, and the communities in which we work

Increase revenueExpand margins

Improve cash flow

Segment the marketGain customer insightsDifferentiate offerings

Cross-sell / Up-sell

Maximize levers of engagementProvide career paths &

development opportunitiesLeaders develop leaders

Know the communityBe involved

Invest in the community

The Levers of Power

Strategy

Structure

ProcessRewards

People

As leaders, we have a specific tools set with which to work. To be successful, we focus on setting a clear tone, direction and systems

Be clear. Set a tone of who we are: purpose and values. Make decisions: where we’re going to play and how we’re going to win. Give guidance and direction

Define the capabilities, systems, structures and resources required to execute against the strategy. Define operating mechanisms

Define processes. Managing the white-space in the organization – the power of the network

Recognize behaviors that lead to success. Create and monitor metrics that measure success. Align rewards to metrics

Define roles. Align competencies and behaviors that support the strategy. Plan, acquire, engage, develop and promote the best talent

Star Model: Jay Galbraith

What Employees Experience

Employee Behavior

Strategic Direction

Manager Instructions

Life Experiences

Recognition / Rewards

Team Norms

Results

Business results come from a collection of aligned behaviors within a work environment. Our strategic direction is just one input that influences

employee behavior.

The system in whichthey work

The ABC2 Model

Observable / Behavioral

Antecedent Behavior Consequence

Internal / Psychological

Adversity Belief Consequential Feelings

Unconscious / Natural

This is the ABC2 Model which we will examine in phases

Low-Positive Affective

High-Positive Affective

Short

Gap

Layer 1: Observable Behaviors



The first layer of the ABC2 Model is observable and behavioral. What causes employees to behave in specific ways?• There is an antecedent – something happens that prompts the

behavior – input from the strategy, manager direction, a task begins, etc.

• There is a short gap in which the employee decides what the input means

• The behavior – the employee behaves based on the input and the decision

• There is a consequence to the behavior, either positive or negative. A consequence can increase or decrease the likelihood a behavior will be repeated.

Short

Gap

Source: Aubrey Daniels

Layer 2: Internal & Psychological



The second layer of the ABC2 Model is internal and psychological. This is what happens in the gap between the antecedent and behavior. We cannot observe what is happening in the mind and emotions of our employees. It can only be inferred by the behaviors. • All change can be seen as a form of adversity. Employees are

being asked to step outside of their routine and to behave in new ways.

• For each adverse event, the employee applies a belief filter. What does this change mean to me?

• Depending on the belief applied to the adversity, an employee may experience a range of feelings.

Source: Albert EllisThis is what happens in the gap between the antecedent and the behavior.

Beliefs and Feelings

Sad

Mad

Glad

Afraid

Loss

Trespass

Support

Threat

If I believe I am experiencing… I feel…

=

=

=

=Source: Martin E. Seligman

Beliefs create feelings, actual changes in physiological state (e.g., blood pressure, heart rate, chemical secretions, etc.). This is important. If employees don’t feel safe and

supported, they cannot perform at their best.

Layer 3: Unconscious and Mostly Natural


The third layer of the ABC2 Model is unconscious and mostly based on our DNA. People who are high-positive affective will naturally gravitate to positive emotions. There are others that are not so easily cheery, referred to as low-positive affective. Research indicates that at least 60% of our “happiness” comes from our DNA – our natural tendencies.

Still, not every thing is based on nature. Nurture is also involved. Both high-positive and low-positive affective dispositions can also be learned. People can develop emotional memories, called somatic markers, based on their life experience that produce either positive or negative emotions. If our experience creates a belief that certain situations, people, objects or phrases (for example) will create positive or negative consequences for us, we being to automatically feel these emotions in their presence. Low-Positive Affective


Where should leaders focus?






Focus on the environment, clear direction, execution and recognition.

Low-Positive Affective


Short

Gap

Implications: What We Must Do1. Create a safe, engaging environment:

A. Be transparent and authentic. Provide open, honest communication. B. Be empathetic. Acknowledge emotional reaction to change. Give

permission for employees to react.C. Get engaged and stay engaged with your team.D. Set conditions for risk taking that rewards risks.

2. Provide clear direction. Spend the time to get clear on your organizational design: strategy, structure, processes, rewards and people. Clearly and concisely communicate up, down and across the organization. Provide opportunities for development and skill building. Enroll those who embrace the strategy to help others through the transition.

3. Help with problem solving and planning for implementation. Provide resources. Remove roadblocks.

4. Provide positive, immediate and certain consequences to desired behaviors. Align recognition and rewards with the strategy. Recognize early and often. Focus on the environment, clear direction, execution and recognition.

Further Reading

A. Daniels, Bringing Out the Best in People: How to Apply the Astonishing Power of Positive Reinforcement (New York: McGraw-Hill, 2000)

A. Ellis, Reason and Emotion in Psychotherapy (New York: Lyle Stuart, 1962)

A. Kates, J. R. Galbraith, Designing Your Organization: Using the STAR Model to Solve Five Critical Design Challenges (San Francisco: Jossey-Bass, 2007)

M. E. P. Seligman, Learned Optimism: How to Change Your Mind and your Life (New York: Pocket Books, 1992)

Appendix

Other stuff I thought about but didn’t want to clutter the message

We’re Born this Way

When we feel threatened, the brain diverts blood from the neocortex, the center of higher-order thinking to the limbic system, the center of emotions. Computer generated images of the brains of people under severe stress show that there is increased blood flow and electrical activity in the Reptilian brain. The brain has "minimized." The body is filled with chemicals and the individual goes into “fight, flight or freeze.” Higher order thinking skills are impossible.To be at our best – to achieve peak performance, we need to have access to our

greatest capabilities, including higher-order thinking. When we are emotionally charged, it is impossible for us to do so.

Source: Dr. Paul MacLean

Emotions can interfere with performance

Desired Behavior

Protective

BehaviorAffective

FilterAnxiety, self-consciousness, boredom, annoyance, alienation,

etc.

Even employees who have a high desire to perform, when they are caught in a web of anxiety, fear, etc., cannot perform at their peak.

Source: Stephen Krashen

Get Engaged and Stay Engaged with Your Team

Eight Key Questions Every Employee Wants Answered

1. What’s my job?2. How am I doing?

3. Does anyone care about me?

5. What’s our business strategy?6. How are we doing?

7. What’s our vision and values?

8. How can I help?

4. What’s going on?

me

transition

we

Source: Roger D'Aprix

Before you can lead, you have to be engaged with your team. You must answer the eight key questions every employee wants answered.

ABC-Squared

Business

Transcript of ABC-Squared