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Customers, Employees, and Shareholders—who comes first in your organization?

January 10, 2011 3 comments

All organizations have three groups of people that they need to keep happy—customers, employees, and shareholders.  It can be a real juggling act at times trying to balance the needs and desires of all three groups—especially when important decisions need to be made.  How does your company rank order these three groups of stakeholders? 

At Southwest Airlines, (NYSE stock symbol LUV) the rank ordering may surprise you.  Employees are first, Customers are Second, and Shareholders are third.  The reasoning behind this is based on the Golden Rule—do unto others as you would have done unto you. 

Treat your people right, and good things will happen

As Colleen Barrett, president emeritus at Southwest, explains in her new book, Lead with LUV: A Different Way to Create Real Success, “When we talk to our People, we proudly draw a pyramid on the chalkboard and tell them: You are at the top of the pyramid.  You are the most important person to us.  You are our most important Customer in terms of priority.”

As a result, managers at Southwest are expected to spend approximately 80 percent of their time treating employees with Golden Rule behavior and trying to make sure that employees have an enjoyable work environment where they feel good about what they do, about themselves, and about their position within the company.

But this managerial focus on employees also sets an expectation that employees will demonstrate the same behavior with customers.  As Barrett goes on to explain: “But if I do that, what I want in exchange is for you to do the same thing by offering our Passengers—who are our second Customer in terms of priority—the same kind of warmth, caring, and fun spirit.”

At Southwest, the belief is that if leaders take care of their people, then their people will take care of their customers. This in turn will create a loyal customer base which comes back often and recommends Southwest to other travelers which pleases the third Customer—shareholders.

What’s your ranking?

At Southwest, leaders put their employees first, their customers second, and their shareholders third.  It’s a winning formula that has resulted in superior customer satisfaction ratings and financial performance in a notoriously competitive industry.  How does your top management prioritize these three groups of people?  Could your company benefit by creating a high support, high expectations “Golden Rule” environment for employees?

PS: To learn more about the benefits of putting people first, be sure to check out Barrett’s new book (coauthored with Ken Blanchard) Lead with LUV: A Different Way to Create Real Success.  Also check out a free webinar she is conducting together with Ken Blanchard on January 26.  Over 1,400 people have registered for this complimentary event, but online seats are still available. 

Click here to learn more.

Colleen Barrett of Southwest Airlines: Lead with LUV

January 6, 2011 3 comments

Once, while sharing her thoughts on leadership, Colleen Barrett, president emeritus of Southwest Airlines (stock symbol LUV), was asked if she was worried that competitors would now be able to steal her management ideas—like writing thousands of thank you notes to employees.  She said “no” because the real magic wasn’t in knowing the concepts, it was in doing the work.

For Barrett, doing the work is a key ingredient to the success that Southwest has enjoyed in the tough airline industry over the past forty years.  It’s also one of the reasons why best-selling business author Ken Blanchard wanted to work with Barrett on a new book that captures the real-life leadership examples that have made Southwest Airlines a model of good management. Titled Lead with LUV: A Different Way to Create Real Success, it’s just out in bookstores this month.

 “She does the things I write about,” says Blanchard. “The stuff that I’ve learned and taught over the years, it’s all in there with a real person who did it.”

And one of the things that Blanchard writes about often is the importance of celebrating both people and results.

As Barrett explains, “What’s important is the fact that you’re honoring people and acknowledging that what they do makes a positive difference. In the process, you are making heroes out of them. You are letting them know that you love them for their efforts and you want everybody to celebrate their success.”

But it does require doing the work.  And at Southwest, this means that officers hand-write notes to thousands of employees each year.

As Barrett explains, “Besides being loving, we know this is meaningful to our people, because we hear from them if we miss something significant in their lives, like the high school graduation of one of their kids. We just believe in accentuating the positive and celebrating people’s successes.”

You can learn more about the ways that Southwest Airlines takes the time to stop and recognize their people by accessing the first chapter of Lead with LUV: A Different Way to Create Real Success here.

Also, don’t miss a complimentary webinar that Colleen Barrett and Ken Blanchard will be conducting on January 26.  Hosted by Cisco WebEx, click here to find out more about this free Lead with LUV event.

How Can Leaders Reinvent Themselves? 3 Questions with Ken Blanchard

December 30, 2010 2 comments

It’s that time of year when many of us pause, look back, and reflect on the past twelve months.  One of the most powerful ways you can improve the performance of your company is by evaluating the quality of your leadership.  What can you do for this coming year?  Here’s some advice for leaders from bestselling author and management guru Ken Blanchard.

How can a leader reinvent himself or herself? 

A. I think a leader reinvents himself or herself by constantly wanting to learn.  When you stop learning, you might as well lie down because you’re dead. I think every leader ought to set a personal goal each year about what will they be able to put on their resume next year that they didn’t have last year.  It might be learning a new language.  It could be learning a new computer program.  Constantly put yourself in a learning mode.

What does it take to be a good leader?

A. The biggest thing it takes to be a good leader is humility.  People with humility don’t think less of themselves—they just think about themselves less.  I think Rick Warren said it well in his book, The Purpose Driven Life.  The first sentence of that book is a whole leadership training program.  He said, “It’s not about you.”  We can accomplish that if we can get leaders to realize that they are there for the mission, for their clients, for their people, and not for themselves.

Can a leader also be a good coach?

 A. Yes, coaching is a definite part of leadership.  There are two parts of leadership.  One is the visionary direction part of leadership which is, “Where are we going?” and “What are we trying to accomplish?”  That has to be the responsibility of the traditional hierarchy.  It doesn’t mean that you don’t involve other people, but people look to the president, department chairman, and other traditional leaders to make sure that everybody knows where they are going.

The second part of leadership is implementation, which is “How do we live according to the vision, direction, and values that we have established?”  With that you have to turn the traditional hierarchy upside down.  So now the leaders who played a major role in setting the vision are at the bottom cheerleading, supporting, and coaching.

This is where the coaching process comes in because in developing your people there are three parts: Performance Planning where you are setting the goals and objectives; Day-to-Day Coaching when you are helping people win and accomplish their goals; and then there is Performance Evaluation.

In most companies, the majority of time is spent on performance evaluation with managers focused on judging people’s behavior.  Some companies do a pretty good job of goal setting but then they file the goals away until somebody says it is performance review time and then they run around looking for the goals. The thing that is least done is the day-to-day coaching, so coaching is a very important part of leadership.

What can you do from a personal leadership perspective to help your people and your organization perform at a higher level in 2011? 

Successful leaders recognize that profit is the applause you get for taking care of your customers and creating a motivating environment for your people.  What can you do to create that type of environment within your organization? The New Year is a great time to start!

PS: Ken Blanchard will be conducting a free webinar with Colleen Barrett, president emeritus of Southwest Airlines, on January 26.  It’s based on their new book, Lead with LUV.  To learn more, or to register, visit Lead with LUV: A Different Way to Create Real Success at the Blanchard website.

6 Strategies for Leveraging Diversity in Your Organization

September 29, 2010 1 comment

Bringing people together from a wide variety of backgrounds creates tremendous opportunities for organizations, but also some challenges. In two upcoming executive briefings in Calgary and Ottawa, best-selling business author and consultant Ken Blanchard will be discussing how organizations can benefit from new perspectives if they are able to unite people behind a common set of values and goals.

For leaders looking to improve their ability to successfully manage a diverse workforce, Blanchard recommends six strategies:

  1. Set a clear, inclusive vision.  As Blanchard explains, that includes identifying your organizational purpose, picture of the future, operating values, and action steps.
  2. Increase the quality and quantity of conversations occurring between managers and direct reports. The greater the amount of diversity there is in the workforce, the more managers have to communicate to make sure that everyone’s issues and concerns are on the table.
  3. Walk the talk. In the past, if leaders were inconsistent, employees would talk about it in the bathrooms and in the hallways, but that was usually as far as it went. Today, people are much more direct, so integrity is more important than ever.
  4. Turn the organizational hierarchy upside-down.  Effective day-to-day implementation requires turning the organizational chart upside down so that front line people are at the top serving customers while leaders move themselves to a supporting role and focus on removing roadblocks and providing resources.
  5. Consider the whole person. Don’t ask people to “leave their nerve endings at the door.” Employees want their managers to know them as people—including the issues they might be dealing with both in and out of work. Employees want to feel cared for, understood, and supported in their efforts to make a difference at work.
  6. Increase involvement. As Blanchard likes to point out, “No one of us is as smart as all of us.” One of the great advantages in having a diverse population is that you can tackle a problem from a rich variety of viewpoints. But you have to encourage participation and really listen to what people have to say to make the most of that opportunity.

Globalization and the increasingly international nature of business is changing the requirements of leadership. The old ways of doing things are not necessarily the ways of leading in the future. By using the excitement, willingness and the capability of people from diverse backgrounds, leaders will find they are able to make a significant impact in their organizations, their communities, and in all walks of life.

You can learn more about what Ken Blanchard has to say on The Changing Face of Leadership by checking out his recent article in Diversity Executive.  You can learn more about his upcoming presentations in Calgary and Ottawa by clicking here.

Would you like to win a free seat to see Ken Blanchard in Calgary or Ottawa?

Tweet about this post between now and October 4 and you will automatically be entered into a raffle to win a seat to Ken’s presentation in Calgary October 19 or Ottawa on October 22 (a $250 value). Be sure to include @LeaderChat in the body of your tweet.  One winner will be randomly selected and announced on October 5. Winner will have their choice of attending either the Calgary or Ottawa presentation.

October 5 Update: Congratulations to Peter John McFarlane @pjmcfarlane who won the free admission to see Ken Blanchard in Calgary or Ottawa.  Thanks to everyone who re-tweeted this announcement!

4 Keys to Better Leadership

August 11, 2010 Leave a comment

What are the characteristics of a high-performing organization?  How does leadership contribute (or detract) from that process?  These are the questions answered in the new second edition of Leading at a Higher Level, released earlier this year from FT Press.  In it, best-selling business author Ken Blanchard identifies–together with the consultants and founding associates of The Ken Blanchard Companies–four key traits common to successful organizations.  In these organizations, leaders do four things well.  Read more…

One Minute Management: The Power of Simple Truths

February 24, 2010 5 comments

Earlier this week Ken Blanchard appeared on Dave Ramsey’s business talk show to discuss the enduring impact of Ken’s classic book, The One Minute Manager, which he co-authored with Spencer Johnson.  Ramsey wanted to know Ken’s thoughts on why The One Minute Manager remained so popular today–18 million copies later.  Ken’s response?  The book remains relevant because it identifies simple human truths about working together.  See if you agree.  Here are the three secrets of one minute management: 

  1. Set One-Minute Goals— All good performance starts with clear goals. Without clear goals your leadership doesn’t really matter. If people don’t know where you’re going, how can you help them get there?  Goal setting gets everything started. It is creating a clear picture of what good performance looks like and what are the expected behaviors to get there.
  2. One Minute Praising.  The second secret is to look for opportunities to catch people doing things right.  People love to be acknowledged for their work.  It’s unique and rewarding when a manager comes around and is looking for things that are going right instead of wrong. You don’t want to be a seagull manager who only flies in, makes a lot of noise and dumps on people when there are problems. 
  3. The One Minute Reprimand. This is how you deal with people when they’re not performing up to expectations.  The key here is to focus on the behavior and not the person. It’s also important to distinguish between “can’t do” behavior versus “won’t do” behavior.  A One Minute Reprimand is for people who have the skills and talent to do better.  If the problem is a lack of skills or training, then it is more appropriate to use redirection instead of a reprimand.  This means taking a second look at goals, identifying needed resources and support, etc.  

How do these three principles sound to you?  Are they still relevant in today’s business environment? Share your thoughts and comments below.

Join Ken Blanchard for a Complimentary Webinar and Online Chat Today!

January 19, 2010 33 comments

Join Ken Blanchard for a special complimentary webinar and online chat beginning today at 9:00 a.m. Pacific Time (12:00 noon Eastern). Dr. Blanchard will be speaking on the topic of From Recovery to Prosperity: The Power of Vision and Leadership. The webinar is free and seats are still available if you would like to join over 1,500 people expected to participate.

Immediately after the webinar, Dr. Blanchard will be answering questions here at LeaderChat for about 30 minutes.  To participate in the online discussion, follow these simple instructions.

Instructions for Participating in the Online Chat

  1. Click on the COMMENTS link above 
  2. Type in your question for Dr. Blanchard
  3. Push SUBMIT COMMENT 

It’s as easy as that!  Dr. Blanchard will answer as many questions as possible in the order they are received.  Be sure to press F5 to refresh your screen occasionally to see the latest responses.

We hope you can join us later today for this special complimentary event courtesy of Cisco WebEx and The Ken Blanchard Companies.  Click here for more information on participating.

The Everyday Leader

October 14, 2009 1 comment

Congratulations to Patti Breckenridge of Tampa, Florida and Lee Wise of Clarks Summit, Pennsylvania who were announced yesterday as the winners in our Twitter contest to help identify today’s top leaders.  Both Patti and Lee will be receiving a gift pack of 7 of Ken Blanchard’s best books, including best-sellers together with some of Ken’s newest releases.

It’s been a great week devoted to identifying all of the wonderful leaders around us today and to explore some of the traits that make them special.  We’ve looked at the people who push the edges, inspire us, and lead us to places we may not have been able to get to on our own.

We also looked at a special group of people who we called the unsung hero, or the everyday leader.  These are the people who may not be household names, but who have had a powerful positive influence on our lives.  Here are a couple of more unsung hero/leader nominations from Ken Blanchard’s Twitter page that I wanted to share:

  • My favorite leader as a coach: my mother-she understands me, keeps me grounded, pushes, backs-up.
  • Innovation, courage, and caring make 8th grade science teacher Sandy Willmore my choice for Top Leader.
  • My unsung hero is my cousin Chris an army helicopter pilot who will be leaving for Afghanistan.
  • Susan Baldwin. For maintaining relationships with previous employees to use for training and back-up.
  • This may sound like a cliché, but my boss is one of the best leaders I have ever met. He never has to ask for respect.

If you haven’t had a chance to see everyone who was nominated, go over to www.Twitter.com and type @kenblanchard in the search box.  You’ll see everyone who was recognized.  Thanks again to everyone who participated over this past week.

The Leader as Coach

October 12, 2009 Leave a comment

Today is the last day of Ken Blanchard’s Top Leader survey/contest on Twitter. Over 2,000 people have viewed tweets, or posted nominations at www.twitter.com/kenblanchard

On this final day, the role of the leader as coach seems to be the aspect of leadership to highlight.  In addition to inspirational, unsung, and visionary leaders, the leader as coach has been the fourth most popular nomination.

Nominees have ranged from sports coaches, like Tony Dungy, John Calipari, and Pete Carroll, to business coaches, like Marshall Goldsmith, Stephen Covey, and John Maxwell, and finally to life coaches like Deepak Chopra, Oprah Winfrey, and Tony Robbins.

What’s the one thing they all have in common?  They see something special in others, and they use a combination of encouragement and accountability to bring it to full development.  By setting high standards, providing direction and support as needed, and always believing in their people, these types of coaches help their clients and team members get to places they might not have been able to get to on their own.

Who are the people that have believed in you?  Who has held you to a higher standard of performance—and always believed in your ability to achieve it?  Let us know by posting your top coaching leader at www.twitter.com/kenblanchard  Remember to add @kenblanchard in the body of your tweet so you’ll be entered into tomorrow’s drawing for one of two gift baskets of Ken Blanchard books.

Survey/Contest Details

LeaderChat is partnering with Ken Blanchard on Twitter to conduct a fun and interesting survey/contest.  Through October 13th, we’d like you to Tweet the name of the person you think is today’s top leader.  In order for us to know who your selection is specifically for this contest, just include “@kenblanchard” in your Tweet.

For example, your Tweet could read: “Today’s top leader @kenblanchard: John Smith”

By doing that, you will be entered into our Twitter contest. After October 13th, we will randomly select two submissions for this contest on Twitter, and we’ll send each of these winners a gift pack of 7 of Ken’s best books, including best-sellers together with some of his newest releases. If you win, Ken will send you a direct Tweet to get your contact info, and we’ll also post the winners here.

The Inspirational Leader: Who Inspires You?

October 11, 2009 Leave a comment

There have been a large number of nominations posted over the weekend for Ken Blanchard’s Top Leader Survey/Contest on Twitter.  (Thanks to all of you who have nominated someone, or re-Tweeted the original post.) In looking over the latest group of nominees, one thought that came to mind was the inspirational side of leadership.  Many people have nominated someone who they felt inspired them to higher levels of performance, stood up for what was right, or displayed honesty, integrity, and courage during difficult times.

 As you look over the latest group of people who have been nominated, consider who is the most inspirational leader you have ever met.  What was it about them that caused you to be inspired?  Was it something they said?  Something they did?  Or was it something harder to describe?

Once you’ve identified that inspirational leader, let us know about it.  Post a tweet with @kenblanchard in the body of the message.  That will get your message posted at Ken Blanchard’s Twitter page and also enter you into our raffle on Tuesday for one of two gift baskets of Ken Blanchard books. 

This weekend’s new nominees:

  • USC football coach Pete Carroll
  • Social visionary, Eboo Patel
  • Steve Irwin, famed Australian “Crocodile Hunter”
  • Croatian tennis player, Marin Cilic who reached the quarterfinals of this year’s US Open
  • Pastor, and best-selling author, Rick Warren
  • Jack Stack CEO of SRC Holdings Corporation
  • Jack Canfield, best-selling author of Chicken Soup for the Soul

Who’s inspired you?  Let us know, and check back here at LeaderChat to see who is inspiring others.

Survey/Contest Details

LeaderChat is partnering with Ken Blanchard on Twitter to conduct a fun and interesting survey/contest.  Through October 13th, we’d like you to Tweet the name of the person you think is today’s top leader.  In order for us to know who your selection is specifically for this contest, just include “@kenblanchard” in your Tweet.

For example, your Tweet could read: “Today’s top leader @kenblanchard: John Smith”

By doing that, you will be entered into our Twitter contest. After October 13th, we will randomly select two submissions for this contest on Twitter, and we’ll send each of these winners a gift pack of 7 of Ken’s best books, including best-sellers together with some of his newest releases. If you win, Ken will send you a direct Tweet to get your contact info, and we’ll also post the winners here.

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