Note From Rand

I’m writing to you from Palm Beach, Aruba, where at 8 am it’s 75 degrees with zero humidity and a gentle sea breeze. Tough job, but somebody’s gotta do it!

My only article this month was sparked by my reading former Defense Secretary Donald Rumsfeld’s new book, Known and Unknown. As a fellow part-time resident of St. Michael’s, Maryland, I’ve seen him and his wife browsing in the local shops. A genial man with a ready “good morning,” he suffered his share of self-inflicted wounds as a member of the Bush Cabinet. From my vantage point, they all arose out of his inability/disinclination to understand the power of his own voice as a leader.

My new book, Consensus is not Kumbaya, will be “officially” released on June 14th. Click here to view my pre-publication listing on Amazon. I must admit, I’m rather impressed with myself. (Don’t worry; I’ll get over it). I will have some “pre-publication” bargains soon – combining this book with my previous books at a discounted price. Be on the lookout!

I’ll see you next month. Until then, as they say in Aruba, Bon bini! As I always say: Get real, get tough and get going.

Where Did Rumsfeld Go Wrong?

Former Defense Secretary Donald Rumsfeld’s recently released memoir, Known and Unknown, reveals a man of prodigious intellect (no surprise), an endearing sense of humor and little self-doubt. Whether or not you’re a fan of the Secretary, it’s a great read.

Secretary Rumsfeld’s book tour has included stops at several of the Sunday morning news shows. Virtually every one of those show’s hosts has questioned him about his management style. A typical question: “Mr. Secretary, many people state that your style intimidated the generals who worked for you. How do you respond to that?”

Rumsfeld has answered that question virtually the same way each time it’s asked: “That’s absurd. These Generals are combat veterans. They’re not intimidated by anyone or anything.”

He’s wrong. His answer reveals his big blind spot. He has (and as Secretary, HAD) no clue as to the power of his own voice. That became his primary undoing.

From my own treasure trove of experience:

During a strategy session with the executive team of a Fortune 200 company, the CEO reiterated his commitment to reduce the firm’s expenses by 20 percent over the ensuing 24 months. During that session, he froze the senior VP of Sales and Marketing with an icy stare and speared him with the following inquiry: “John, you’ll be able to hit your sales targets despite these expense reductions, won’t you?” Apparently undaunted, John replied with his typical enthusiasm. “Sure – no problem!” After the meeting, I saw John in the hallway. He was, shall we say, less certain.

I later commented privately to the CEO that after reviewing the assumptions in the company’s sales plan, I believed the planned expense reduction would kill its chances of meeting its plan. His response? “I pay these people lots of money to overcome obstacles. John’s a big boy. If he said they could do it, they’ll do it.”

They didn’t do it. Here’s why:

* Expense reduction always hits the bottom line quickly. The corresponding impact on the top line takes longer. As a result, executives usually rationalize that impact away. Many CEOs don’t contemplate this. The great ones do.
* People have a burning desire to please the boss. Accordingly, when asked to make a commitment – even about something really important and on the spur of the moment – many executives will cave in to the pressure.
* Many CEOs don’t recognize the power of their own voices. The great ones do.

How could this situation have been handled more effectively? The CEO could have said, “John, have you and your people contemplated the impact of these reductions on our sales plan?” When John responded in the affirmative, the follow-up could have gone like this: “The company’s results are at stake here. We should all have a comfort level with the exact nature of that impact, and the precise actions you have planned to overcome it. Let’s set aside an hour or two this afternoon (assuming John is ready) to discuss this.”

Both Secretary Rumsfeld and my CEO client underestimated the impact of the pressure they exerted with a stare, an inquiry, or an implied expectation. If you’re “the boss,” you have to accept the notion that the influence you have, merely because of the job title on your business card, squeezes people’s psyches regardless of whether they’re three-star Generals or one-star trainees.

How would you have handled this problem? Would you have recognized that to engender commitment and enthusiasm among the team members, you would need to deal with the reality and complexity of these situations? Would you have been willing to subordinate your ego to get to the right answers and increase everyone’s confidence? Would you accept the notion that, as a leader, your job is not merely to get people to DO what needs to be done, but to WANT TO DO what needs to be done?

Are you one of the great ones – or are you willing to be?

Note From Rand

You’re receiving this issue three days before the Super Bowl. Both the Packers and the Steelers have long and rich traditions. I’m rooting for a Packers victory for only one reason – Aaron Rodgers. The Packers drafted Rodgers in 2005 to be Brett Favre’s eventual successor. For three years Rodgers sat on the bench, a very patient understudy to “the master.” During the last two of those years, Favre engaged in what became his annual “now I’m retiring, now I’m not” ritual. Between the 2007 and 2008 seasons, when Green Bay General Manager Thompson finally decided that enough was enough, Rodgers remained quiet and deferential. Inheriting the mantle for the 2008 season, his understated dignity and “above the fray” demeanor had already earned him his teammate’s respect. Since then, his extraordinary work ethic (he’s a film room and physical conditioning fanatic), mental toughness and talent have moved his status from wannabe to the upper echelon of NFL quarterbacks. Now it’s time for him to take his place with Manning, Brady, Brees and Rothlesberger as one of the greats. This game will not be a defensive struggle. Packers 31, Steelers 27.

This month’s article is about competition, and my examples are Borders and Nordstrom (from the ridiculous to the sublime). I’ve had personal experiences at both stores that highlight the difference between a customer service legend and a teetering also-ran. It’s an admonition to which you should pay close attention.

Until March, when I’ll be writing from my yearly two-week sojourn to the Marriott Surf Club in Palm Beach, Aruba, remember to Get Real, Get Tough and Get Going.

What Really Killed Borders and Why We Love Nordstrom

A couple of years ago, I was standing in an unacceptably long line, waiting to pay for my purchase at a Borders. I counted ten people in front of me, six people behind me, one person working a register, and a manager who was fulfilling the role of disengaged observer. After paying for my purchase, I asked if I could have a word with him. He agreed.

Anticipating a tirade, he began apologizing for his staffing shortage and then added the following: “You know, sir, I’m not actually even supposed to be working today.” I wanted to shriek, scream, or throw something, but I was too flabbergasted to express ANY emotion. I just looked at him in disbelief for about five seconds and then inquired as follows:

“Sir, I’m in the business of helping executives, entrepreneurs and companies create and sustain success. I’m always interested in the changing competitive environment and the pressure it exerts on established businesses. Can I ask you a couple of questions?” I could see the blood flow return to his face as he answered, “Yes, of course.”

I continued: “If I can buy this book (pointing to my purchase) for 20 to 30 percent less money at Amazon, why should I buy it here?” His response was, and this is no lie or exaggeration, “Personal service.” I asked him to explain what he meant by that. He gazed at me as if I had a third eye in the middle of my forehead and followed with, “Why don’t you just return your book and buy it from Amazon!”

Now there’s personal service.

Moving on: One of the things that I DO (or rather, DID) like about this chain are the kiosks that they have for customers to do “self-searches” for books. Sometimes I’m not quite sure of a title or author, and my search requires multiple inputs. Doing it myself is more expedient than feeding information over and over to a store clerk. A couple of months ago, I was shopping for a specific book at the same Borders and used a kiosk to find my book. Once I completed my search, I realized that I didn’t have a pencil to write down the information. Seated next to me, a store employee was busy copying something from a printed report onto another piece of paper. I leaned over and asked, “Pardon me. I seem to have forgotten to bring a pencil. Do you have one I could borrow?” He raised his head, looked at me dismissively and said only, “no.” I waited for a minute, expecting, “No, but I’ll go get you one.” Or “No, I’m in the middle of something. If you can wait a minute, I’ll find you one.” All I got was a very terse “no.”

I didn’t keep my cool quite as well this time. I stood up, looked at him, flailed my arms and loudly asked, “Is that IT?!” He looked at me as I continued: “A paying customer needs a pencil and rather than fetch him one, the best you can do is NO?”

He said nothing. I ran up to the check out counter and grabbed two pencils. The cashiers were giggling – probably at my histrionics. I returned to my kiosk, handed the guy one of them and said, “Here’s a pencil. When the next person asks you for one, you can respond as if you value his business, rather than the way that you did!” He took the pencil without so much as raising his head or verbally responding.

In case you’ve missed the recent print stories about Borders, here’s the short version: They are dead! They’ve stopped paying publishers for books. Most retail experts estimate that within 90 days, their doors will close for good. Most of these same experts, however, cite “strategy” as the reason for their demise. They were always a “day late and a dollar short” in anticipating and responding to competitive changes. While that explanation is true, it’s insufficient.

For any business to succeed, sound strategy must be complemented with violent execution. I choose the word “violent” intentionally. Successful execution must be impatient, intense, enthusiastic and obsessive. It must SCREAM the following to customers: “We covet (the word ‘want’ simply isn’t strong enough) your business and intend to prove it!” Too many people at Borders were “mailing in” their effort.

One of my favorite quotes is, “A fish rots from the head.” I never met their CEO, but I wonder …

Conversely … we have Nordstrom.

Several years back I had just bought a suit at Nordstom – a dark brown, spectacular looking Hart, Schaffner and Marx Gold Trumpeter.

It was the first time I had worn this suit and had just finished admiring myself in my bathroom mirror. Yes, I was lookin’ good! Absorbed and distracted by my own studliness, I walked into my garage to get into my SUV and tore a sleeve on the rear windshield wiper. No one was around to blame. I know; I looked!

I called my sales guy, Rudolph Ruiz, and asked him if there might be a way for their tailor to somehow reweave the material to make the tear less obvious. He asked me to bring the suit in for a look-see.

A few days later, I dropped off the suit. Nordstrom’s tailor later determined that its condition was irrevocable. Rudolph called to tell me the bad news, adding that he had an alternative solution and asking me to stop in to discuss it. I wondered what he had in mind until I arrived at Nordstrom and he unveiled a selection of suits from which he said I could pick a replacement – FOR FREE!

I was speechless. Nordstrom had no complicity in my stupidity and yet my sales guy volunteered a replacement, gratis! I considered the alternatives he had selected for me, which included a Joseph Abboud and a $1,200 Hickey-Freeman, made my selection and got out before Rudolph changed his mind.

Nordstrom gets it!

Here’s the real deal:

If you are a CEO or if you work for a CEO – which represents everyone reading this e-zine – you get paid to create value for your constituents/stakeholders (for more on this subject, read our March 2005 and November 2005 issues). That’s job #1. Your primary constituents are your company’s paying customers; they pay your salary. Your company is merely a pass-through mechanism. We developed the following simple seven-step process to help clients do that:

* Identify your company’s targeted customers
* Discern the dimensions of value that they require
* Qualify/quantify those dimensions with performance categories and metrics
* Perform
* Measure
* Develop and implement corrective actions to fill performance gaps
* Begin again

Customer satisfaction is a never-ending process. Today’s competitive advantage is tomorrow’s competitive requirement. Tomorrow’s competitive requirement is the next day’s competitive insufficiency. Competitive strategy and relentless execution are flip sides of the same competitive coin.

Get movin’!

Note From Rand

Here we are – a new year full of hope and promise – but only if you live with intention. Personal change and success require conviction, commitment, discipline and action. Many purveyors of Kumbaya would have you believe that a positive vision is sufficient for positive change. Don’t believe them. Life rewards action. Make this the year during which you align your aspirations, affirmations and actions.

My two brief articles this month concern the subject of character, its importance to effective leadership and its priority in creating effective teams. My role models include Cheryl and Michael Heller, Bobby and Heather Greenburg (clients and their spouses) and Scott Pioli, General Manager of the NFL’s Kansas City Chiefs.

Read these pieces and consider their application for your life. Until next month, get real, get tough, and get going.

Character Matters in Leadership

One of my clients and her husband, Cheryl and Michael Heller, have created a unique way of teaching their daughter Annebeth two important lessons: money management and the importance of “giving back.” They require her to divide her weekly allowance into three parts. Annebeth gets to keep and spend 60%; she must save/invest 20%; she gives the remaining 20% to charity. What kind of adult will this kid grow up to be with parents teaching her lessons like that?! You know the answer.

Bobby Greenburg and I go way back. His former boss was one of my first clients at Capital One several years ago. Last year, as a marketing executive at Lincoln Financial in Philadelphia, Bobby himself became a client of mine. In addition to our business relationship, we share a fanaticism for the Washington Redskins. (Does that make us masochists?) In December at the ‘Skins game with the Vikings, Bobby introduced me to his eight-year-old son. He firmly shook my hand, looked me squarely in the eye, and expressed his pleasure at meeting me without the embarrassment, distraction and foot shuffling that most kids exhibit when meeting an adult stranger. The next week at our regularly scheduled discussion, I asked Bobby: “So, your son shaking my hand firmly and locking onto my eyes, you taught him that?” “Yep,” he answered. I know what kind of parents Bobby and Heather Greenburg are from that one gesture. I also know what kind of young man they’re raising.

These are adults of character raising children of character. It’s my great fortune to work with many people like Cheryl and Bobby.

When I raise the subject of “character” as a necessary ingredient in effective leadership, HR executives frequently bob their heads in agreement. When I ask these executives how they “screen” for character attributes when hiring or promoting leaders, many of them wilt. They feel self-conscious, or pretentious, or sanctimonious talking about it. When they do discuss it, they do so as if “character” is a single attribute rather than a cluster of behaviors and actions.

Here’s my take:

Many people regard character and integrity as synonymous. Integrity does not represent the totality of character; it is one of its essential elements. I define character as the cluster of personal attributes that are unshakeable. They determine the actions we take and the behavior we demonstrate when confronted with seemingly irresistible temptation, overwhelming odds or insurmountable challenges. They represent who we are and what we do when no one is looking. Some of the most predominant attributes of character are courage, endurance, persistence, perseverance, hopefulness, faith, trust, gratitude, honesty, integrity, tolerance, enthusiasm, loyalty, and the one I see as a precondition to all human development: discipline.

I frequently get calls from senior executives who want me to work with their “subordinates” (I hate this term, but I’m using it here for clarity) on issues that have their roots in “character defects.” Oh sure, they reveal themselves in behaviors like “a rough engagement style” (corporate speak for “they don’t play well with others”) or “an inability or disinclination to collaborate productively,” and they frequently have very deep roots. In some cases, especially those in which executive dysfunction is because “they don’t know any better,” I can help. In others, especially those evolving out of a person’s hard wiring or childhood conditioning, change is more difficult.

My recommendations to company leaders on the best ways to attract, reward and retain people of character follow:
• Aggressively triage for character when hiring and promoting, especially candidates being considered for leadership positions.
• Identify and clarify aspects of character that are important, and train and communicate what they look like (very specifically and repeatedly) in practice.
• Greet repeated violations with disdain and eventual (and I’m not talking about years) termination.
• Make attributes of character (again, in a very granular way) a fundamental part of performance assessments – from the Chairman on down.
• Acknowledge their own shortcomings in a humble and public way so as not to convey the sense that they regard themselves as “the perfect embodiment of all things virtuous.”

Character Matters in Team Effectiveness

Scott Pioli is the General Manager of the Kansas City Chiefs, an NFL team that has been miserable for the last several years but in 2011, is going to the playoffs.

From an article about him in Sports Illustrated: “Pioli has longed to capture something from his childhood, something difficult to explain. It is something he tries to explain now. He begins to talk about how, in building a team, you want – no, more than want, you need – to find people who will do the right thing most of the time.”

Pioli is uncomfortable discussing this because it sounds sanctimonious and implies that the purveyor (in this case, him) regards himself as the perfect embodiment of “doing the right thing.” The article goes on:

“He repeats some of the core words about building a team, hoping their power might fill the empty spaces. Reliability, Dependability, Accountability, Discipline. But these words have been used so often and so much in vain that they shrivel and fray and lose their color in the light of day. Say discipline, for instance, and people think of banning long hair and earrings and tattoos, of avoiding dumb penalties.”

Pioli isn’t talking about that (BTW – my definition of discipline is: “Doing what needs to be done, the way it needs to be done, when it needs to be done – every time!”).

One example of Pioli’s (and Chiefs’ head coach Todd Haley’s) dedication to discipline is their quarterback: Matt Cassel. Considered a good but unexceptional quarterback prior to 2010, Cassel decided this year to “go to school” on the NFL quarterback he considered the epitome of discipline: Drew Brees. While many teams regard a quarterback’s physical ability (how far and fast can he pitch a football) as paramount, Cassel (with the encouragement of Pioli and Haley) decided that his natural gifts resembled Brees’ more than anyone else and he went to school on Drew. They decided that Brees’ most outstanding trait was his footwork and drop-back speed (hardly a strength most teams look for in a quarterback). Since Cassel began his quest to improve his foot speed, all of his other statistics have improved dramatically.

By understanding the importance of aligning his natural ability and skills with the precise attributes required for success, Cassel has become a STUD.

The Chiefs are going to the NFL playoffs this weekend. It’s their first trip since Dick Vermeil was their head coach several years ago. At that time, they had many great individual players with recognizable names: Priest Holmes, Tony Gonzolez, Trent Green. Those guys are now gone – replaced by guys like Cassel. Jamaal Charles and Dwayne Bowe. Not exactly household names.

Pioli decided a couple of years ago that having all the best players is not the same as having the right players, and that building a “one year wonder” of a team is not the same as crafting sustainable success built on a foundation of exemplary character.

Some questions for you:

When selecting and assessing your organization’s leaders, do you:
• Consider their character (and its specific elements) as critical?
• Regard questionable behavior evolving out of character flaws with as much distain (or more) as failing to achieve financial results?
• Construct teams of people with complementary strengths from among the following – courage, endurance, persistence, perseverance, hopefulness, trust, faith, gratitude, honesty, integrity, tolerance, enthusiasm, loyalty, discipline – and not merely for their virtues of intelligence or analytical/technical ability?

Maybe most importantly – do you examine yourself with brutal honesty, affirm your virtues and vow to be a productive example for others rather than following the dysfunctional example of others?

Note From Rand

Here’s hoping your Thanksgiving was terrific and you were surrounded by the people you love! We spent ours in St. Michaels, Md., where we purchased a second home on the Chesapeake Bay a couple of months ago. A GREAT holiday in a peaceful, maritime setting.

We’re coming to the end of 2010, and I have a question for you: Did you achieve your goals for the year? I’m not only talking about professional or business goals; I mean all of your goals for your life! If not, now’s a good time for reflection, self-examination and some brutal honesty.

On that note, here is one of the things that I’ve come to terms with as a consequence of the wisdom (?) I’ve gained in my life: In the distant past when I didn’t achieve the results I wanted, it had a lot to do with self-sabotage. Excuses, blame, rationalizations, justifications and lousy self-talk torpedoed me in both blatant and subtle ways. For a long time now, I’ve lived by the notion that I own my life and that I am responsible for the results I achieve – period!

My wish for you is that you do the same. An additional, important precondition is to also purge your life of people I call naysayers, doomsdayers, dream-slayers and game-players. These people can suck the life out of any room they enter and drain all of the positive energy out of the people in it.

For my Jewish friends – Happy Hanukkah (it arrived at sundown, yesterday). For those of you who are Islamic – Happy New Year (December 6th). For those who are, like me, a member of a Christian denomination – have a very Merry Christmas. To all, make 2011 a year in which you either begin or continue (with renewed vigor) to live your life intentionally rather than on automatic pilot!! Make it a masterpiece.

Until 2011, get real, get tough and get going!

Do You Know Your “Water-Cooler Story?”

Here’s a list of some people I feel really sorry for:

• Mike Tyson’s accountant (only kidding Mike – really!)

• The choir director in my church (Would somebody please tell those people the truth about their voices?!)

• Derek Jeter’s social secretary (busier than a one-legged man in a butt-kicking contest).

• Here’s one just for my friends in Maryland and Virginia: The guys in charge of planning street construction in Montgomery County, Md., and Fairfax County, Va. (Um … sorry fellas. I hate to be the one to break it to you, but it’s too late!)

• Finally and most importantly: All business leaders who care THAT they are known by others but don’t cultivate HOW they are known by others.

On that final point: I get frequent inquiries/requests from managers of client companies like this: “Rand, I’d like you to find out what my boss and my co-workers really think of me. All of my performance reviews indicate that I walk on water, but I haven’t been promoted in five years. I get a feeling that there’s something that I need to know, that I don’t know.” I’ll then request and receive the names of the people I ought to talk to and begin my mission, doggedly pursuing my query and relentlessly asking questions until I get to the bottom of things. I almost always end up with a version of my client’s “story” that looks nothing like the official, personnel file, performance review, development planning version.

I call it their “water-cooler story.” Your water-cooler story is the version of you that people talk about when you’re not around; it’s the version of you that gets whispered or implied with a wince or a shrug. Here’s an example:

Your company is assembling a product development team. In a meeting, your name gets mentioned as a possible team leader. Someone – a trusted, credible person – grimaces, implying that putting you in charge would be ill-advised. The idea gets dropped.

Another example: Your name is brought up as a promotion candidate for an executive-level job reporting to the CEO. In the discussions of your candidacy that ensue, two of the CEO’s “direct reports” bring up examples of past interactions with you that were, according to them, unsatisfactory. As a result, the CEO decides to retain Spencer-Stuart to conduct a search for the position that will include both internal and external candidates. He assures you that you remain the primary candidate and that the search is really a formality; it is a matter of completing a process that will assuredly result in your being offered the position. Spencer Stuart then interviews you, but one of the external candidates gets the job.

In both cases, you got zapped by your “water-cooler story.”

Your initial reaction might be to dismiss these examples as implausible, but don’t kid yourself. In large corporations, the official version of your story might inform the size of your raise or the level of your bonus, but the thing that will more often than not determine your career trajectory and velocity is your water-cooler story. You say you’re not a Fortune 500 honcho. Doesn’t matter! Whether you’re a business owner, a smaller company manager or a non-managerial professional, the same deal applies. Your WCS will either help secure your success or make your life really difficult.

I recommend that you aggressively manage your water-cooler story. Here’s how:

• Build mechanisms to frequently and systematically procure feedback from constituents.

• Ask precise, relevant questions that can catalyze action. “How am I doin’?” isn’t good enough.

• Persist until you get to the “brutal truth.”

• Develop and implement specific plans, using what you learn to improve your performance.

Most people aren’t comfortable giving or getting feedback, so they provide it or pursue it (when they actually do it at all) without energy or conviction. In response, they receive generalities that can’t be acted upon (of course they can “check the box” when the drill is completed).

Poor leaders view searching for feedback as a sign of weakness. You know, trying to please the masses rather than demonstrating a steely core. By indulging their egos rather than demonstrating wisdom, these people undermine their potential.

Great leaders, on the other hand, pursue feedback with vigor, tenacity and insistence. Then they act on what they learn. That’s a big part of how they got where they are and, more importantly, how they became WHO they are.

Don’t Be a Fist-Pounder

You’ve heard it before: Praise in public; criticize in private. Great leaders know this; gutless leaders don’t.

I once worked for a guy who used his regularly scheduled staff meetings to tell his direct reports “how it’s gonna be!” He’d use these forums to say things like the following: “I’ve been noticing lately that people are missing their planned commitments. That has to stop!” People in the room who were actually MAKING their planned commitments would then feel insulted. People who were NOT making their commitments assumed that either EVERYONE was guilty (so they, themselves, felt less culpable than if they had been singled out), or that he was actually directing his admonitions at someone else.

This guy never criticized people in private. He could not bring himself to deal with the one-on-one conflict that might have ensued.

High-achieving adults do not want to work for a guy like this! For low-achievers, this kind of environment is perfect; they can hide!

Issuing edicts in public that are intended for specific people – hoping that the “right” people hear them – is weasel behavior. Instead, develop skills at giving critical feedback in a firm but caring way (tough-minded but not hard-headed) and then make this practice a critical part of your “leadership leverage.”

Note From Rand

Welcome to the holiday season; I’m still trying to cling to summer. Three weeks ago when walking through Macy’s, I noticed that they already had their Christmas decorations displayed; do you think they’re desperate?!

I’m highly recommending two books this month. The first, The Long Run by Matthew Long, was written by the New York firefighter I highlighted in this publication several months ago. By way of reminder, Matt was literally run over by a New York City bus while riding his bike to work. His body was ripped apart from stem to stern. A year and a half later, he completed the New York City marathon. His story will challenge you to own your life and play the hand you’re dealt (click here to order from Amazon) .

The second, Character is Destiny by Senator John McCain and his (then) Chief of Staff Mark Salter, is subtitled “Inspiring Stories Every Young Person Should Know and Every Adult Should Remember.” Published in 2007, the book is divided into 7 sections (Honor, Purpose, Strength, Understanding, Judgment, Creativity, Love) and “tells the stories of both celebrated historical figures and lesser-known heroes whose values exemplify the best of the human spirit.” (click here to order from Amazon).

These two books are by and about people of unusual character. Speaking of character …

My article this month is a challenge. Entitled “What Do You Stand For,” it’s an admonition to explicitly identify the attributes of character that you aspire to achieve and then commit your life to achieving them. We all say that we want to become better people but change, especially significant change, is really difficult.

As always, I welcome your comments. Until next month, get real, get tough, and get going!

What Do You Stand For?

Someone once said that “if you don’t stand for something, you’ll DO just about anything.” My hero, Jim Rohn, once said that the foundation for having a successful life is having a personal philosophy. I agree with both of those assertions. Having “rules of the road” for our lives can help us to determine our boundaries and draw “lines-in-the-sand” when and where they are appropriate. We’ve all known people who live with no “center” or boundaries. They may seem carefree on the surface, but as the late John Gardner said: “We are worriers and puzzlers and we want meaning in our lives. I’m not speaking idealistically; I’m stating a plainly observable fact about men and women. It’s a rare person who can go through life like a homeless alley cat, living from day to day, taking its pleasures where it can and dying unnoticed.” Which kind of person do you want to be?

I frequently help my clients identify their governing beliefs (aka their personal codes of conduct or philosophies). Doing so helps them pinpoint the reasons for dissonance when they feel it. I also encourage them to perform “self-audits” periodically, to see whether they are living in harmony with their espoused beliefs. Those reality checks are frequently both powerful and disconcerting.

Several years ago when I was going through a rough period in my life, I documented my own governing beliefs. I did this by examining my actions and then:

• In areas I was achieving satisfaction, I documented those successes and identified, in writing, the beliefs that informed them.

• In areas in which I was either performing badly or behaving poorly, I identified the categories and reasons. I then documented aspirations in those areas. Now …

Each week I conduct a post-mortem on my actions. I compare them to my beliefs, identify where I am going astray, and resolve to do better.

Doing this has improved my life.

Today, when I examine my beliefs weekly, I occasionally change one. I NEVER do that, however, to accommodate my failures or shortcomings. I only do it if I believe that I am constraining my own growth.

What follows is a MUCH abridged version of my governing beliefs as they stand today:

• I believe that I own my life, and that I am totally and completely responsible for my actions and accountable for my results.

• I believe that personal growth is our primary, lifelong mission.

• I believe strongly in self-management and course correction. Wisdom is NOT an automatic by-product of experience. Here’s the formula: Wisdom = experience x reflection x relentless honesty x accountability (accepting consequences with no blame, no finger-pointing, no excuses, no whining, no escape-hatch) x behavioral change. Each of these elements is necessary, but alone, each is insufficient; it takes them all.

• Our natural tendency – one that we must reject – is to associate with people who affirm who we already are, rather than those who inspire us to reach higher and do better. I believe that in order to grow, we must surround ourselves with the kind of people we WANT to be, rather than those who mirror our own character defects! We must also discard naysayers, doomsdayers and dream-slayers. If we want to grow, they have to go!

• I believe in acceptance (giving in to reality). I DO NOT believe in resignation (giving up on possibility).

• I believe in under-commitment and over-delivery, not the other way around, and that character is both forged and revealed by commitments we make and keep.

• I believe in relentlessly searching for THE truth, and that an absolute requirement for success is our ability and inclination to differentiate from among “OUR truth,” “OTHERS’ truth,” and “THE truth.”

• I believe in the priority of creating a meaningful life, and that each person must define “meaning” for him or her self.

• I believe in the virtues of integrity, honesty, courage and valor, accountability for my actions, perseverance and (especially) loyalty.

• I believe that without discipline, aspiration is hallucination.

• I believe that it’s never too late to find happiness, and that it’s worth a high price. One of life’s biggest challenges – maybe THE biggest – is figuring out which bridges to cross and which ones to burn in an effort to accomplish that, without doing too much damage to ourselves or others along the way.

• I believe this is the formula that many people employ to justify their dysfunctional behavior:

Doing the wrong thing and a good excuse or rationalization = doing the right thing.

Instead of the aforementioned, I believe that when we feel discomfort from dissonance, we must use it to change rather than rationalize our behavior! Discomfort should instigate action and growth, not provoke inertia or excuses. Personal responsibility must always trump comfort or convenience.

I have failed myself, many times, when measured against my own beliefs. Instead of making excuses, the question I regularly ask myself is this: “When I fail, do I commit to DO better and to BE better?”

I absolutely guarantee you that if you take the time to do this exercise you will be a better person tomorrow (not perfect, but better) than you are today.

It’s worth it!

Note From Rand

What does it take to write a book? Wisdom? Intelligence? Insight? The right answer: Patience!

I finished my book, Consensus Is Not Kumbaya … Lessons In Tough-Minded Leadership, over a year ago – or so I thought. Here’s where we are: We have completely edited the book three times. Each time, we have found things we wanted (or in some cases, NEEDED) to change. I’m now done with it … I think!

Morgan James, my publisher, completed their initial book design. My editor, Barbara McNichol, and I liked many aspects of that design. There were a few other aspects we did not like, and as a result, MJ is refining their design.

I’ve been told that none of this is unusual, but I was not blessed with a great amount of patience. The book will be out in about 90 days. Here’s the cover, which I LOVE. My picture is consistent with the title, and both are consistent with my approach to my work:

This month’s article is a chapter from my book from which the book title is derived. “Consensus Is Not Kumbaya” discusses Frank, a Fortune 500 CEO and client of mine who got off to a bit of a rocky start after taking the reins of his company. The lesson (and I’ll quote from the chapter): “Never, ever assume that you and your team are on the same page unless you’ve tested for understanding, debated issues, worked hard to surface objections, and considered alternatives.”

I’ll see you in November. Until then, get real, get tough and get going!

Consensus is not Kumbaya

My client Frank (not his real name) had just been elected Chairman and CEO. His promotion was wildly popular and widely celebrated. His company, a Fortune 500 firm with more than 100,000 associates and 80 operating divisions worldwide, had elected only eight chairmen in its 100-year history. All had been life-long associates. The company had a history of ascending growth and earnings and a stable corporate culture, including corporate values that management both talked and walked. From an investor’s point of view, this was a “buy-and-hold” stock.

At the time of his election, Frank was 55 years old. Until his early 40s, his career was successful but unspectacular. No one really pegged him as “the guy” until the chairman at the time put him in charge of the firm’s largest division. There, he hit a home run; actually, he became Babe Ruth. To continue the baseball analogy, he led the league in home runs for the next decade, was made vice chairman at the age of 53, and placed in a head-to-head “competition” for the top job with the impressive president and COO.

Tough-minded without being hard-headed, Frank has five distinct strengths. He’s gifted at selecting and developing associates. He communicates extremely well with people from all walks of life. He’s an incredible listener, enveloping people with his attention. He also “connects the dots.” In corporate parlance, it’s called integrative thinking. His biggest strength, however, is his self-knowledge. Acutely aware of his strengths and weaknesses – personal as well as professional – he has never dismissed his shortcomings as irrelevant or unimportant. He creates “workarounds” to compensate.

Before Frank became chairman, he had a reputation as a great collaborator. He recognized the importance of winning emotional commitment from people and worked hard to obtain it. In his first several months as chairman and mine as his executive coach, Frank asked me to attend his regularly scheduled staff meetings. I had been working with him for some time, and the company’s senior leaders knew and trusted me. I had become his “eyes and ears” in the company and had a reputation as a guy who acted responsibly and confidentially with what I saw and heard. One Monday morning during a meeting break, Jake, the president of the company’s largest operating group, approached me with a concerned look. Our brief discussion went something like this:

Jake: “Rand, do you sense something different about Frank since he became chairman?”

Me: “What do you mean ‘different?’ He’s now the chairman; I’d say that’s pretty different. You guys are trying hard to relate to him in a new way because of his role. That’s also different. The power dynamic in the group has changed. That’s also something different. So yes, I sense that EVERYTHING has changed, and yes, it’s different.”

Jake: “I realize that stuff, Rand. I’m not talking about that. What I mean is, Frank seems to have become an autocrat. I feel like asking him, ‘Hey, who are you, and what did you do with Frank?’ It seems like he’s imposing his will because he CAN – even when situations don’t require it. We talked in our last meeting together about the priority of ‘consensus.’ He always seemed diligent in the past about ‘walking the talk.’ Not so much now!”

Me: “I’ll think about your comments. Let’s revisit this issue.” Subsequently, other members of the senior leadership team called me and expressed a similar concern. I asked Frank if we could discuss this at his next staff meeting. His response: “Fine, as long as it doesn’t become a whining session.”

Here’s what happened.

After they covered their normal business, I mentioned that several people on the team had brought up an apparent change in Frank’s management style. I then asked that each of them pull out a piece of paper and write the word “consensus.” A few of them rolled their eyes and I thought, “If this goes poorly, I’m outta here!”

I asked them to write a definition of that word and hand it to me. They did. I then collected and read the definitions, without attribution. They differed greatly. For some of them, consensus had something to do with voting before deciding. For a few, it had to do with reaching unanimity before executing major decisions. Still others had different ideas.

They gazed at me with looks that I interpreted as meaning, “OK, big shot. Why should I give a damn about any of this? You’re wasting my valuable time.”

I gulped and continued, “When I spoke to each of you individually about Frank and his style, you all used shorthand to express your thoughts. I heard the word ‘empowerment’ eight times. I heard the word ‘delegation’ just as often. Several of you used the word ‘autocrat.’ The word I heard most often was ‘consensus.’ Each of you used those words as if we should – or DID – automatically agree on what they meant.

“Here’s my point: Words create images and stories in our minds about people and situations. Effective ‘leadership’ is about the quality of our conversations, the images that they create, and the actions that they compel. Yet here we sit using a word like ‘consensus’ without agreement on what it means.”

I saw light bulbs go on, so I summarized, “It might seem frivolous on the surface, but I think we need to agree that on key issues, you need to have a way of getting to your assumptions about what things mean, so that you’re not taking inconsistent action and operating with divergent assumptions.”

To start, we spent two hours – two hours – on what the word “consensus” would mean to the team going forward. Here’s what we concluded: Consensus would mean that before action would be taken on issues above a certain threshold, all team members could and would support the decision, even if they didn’t believe it was the best possible decision. Consensus would not imply how a decision would be reached. Some decisions would still be made by Frank – alone with no input. Some would be voted on. Some would be debated in advance. Some would not. The point is, consensus would not imply the decision-making process employed; it merely would imply whether active support for a decision existed. In this case, whether their definition comported with Webster’s definition was less important than their recognition that common understanding was critical.

What are the implications for you? Never, ever, ever assume that you and your team are on the same page unless you’ve tested for understanding, debated issues, worked hard to surface objections, and considered alternatives. Agreement isn’t always necessary, and consensus isn’t about creating a “kumbaya” management approach.

Note From Rand

Before I get down to the “business of business,” I have something more important to address – my NFL picks for the year. May I have a drumroll, please:

• Offensive MVP – Aaron Rodgers of the Green Bay Packers.

• Defensive MVP – Troy Polamalu of the Pittsburgh Steelers.

• Offensive Rookie of the Year – Jordan Shipley of the Cincinatti Bengals.

• Defensive Rookie of the Year – Eric Berry of the Kansas City Chiefs.

• Division Winners – AFC: New York Jets, Baltimore Ravens, Denver Broncos, Indianapolis Colts. NFC: Philadelphia Eagles, Green Bay Packers, New Orleans Saints, San Francisco 49ers.

• Playoffs – Green Bay beats New Orleans to advance to the Super Bowl; the Baltimore Ravens do likewise to the New York Jets.

• Super Bowl winner – the Green Bay Packers.

Ladies and gentlemen – you can take those to the bank!

On to business: My sole article this month is entitled “Are Your Corporate Values Aspirations or Hallucinations?” It’s a cautionary tale. Most corporations make declarations of their values – the behaviors and actions that they deem important and ethical. Unfortunately, for many of those companies, values amount to little more than slogans on wallet cards or placards strategically hung on their walls.

Until October, get real, get tough and get going!

Are Your Corporate Values Aspirations or Hallucinations?

For most companies – for the overwhelming majority of companies – corporate values are more of a hallucination than a legitimate aspiration. I’ll start with a story:

I was waiting for the CEO of a new client company to arrive for our meeting. I wanted to spend some time with Dave (not his real name) to get a sense of his vision for the company, and how he intended to achieve it. On his wall was a copy of the company’s “values statement.” I read it as I had read several others many times before at other large companies. As I finished reading, Dave arrived. The conversation went something like this:

Dave: “I see our values interest you Rand. We finished them at our strategic planning retreat last year. We’re very proud of what they say about us.”

Me: “Actually Dave, what interests me even more than your values is what you are doing to make sure that the behavior, decisions and actions of all of your associates actually reflect those aspirations.”

Dave: “You don’t understand, Rand. They’re statements of our vision for our conduct. We’re hoping that we all, starting with me, demonstrate a commitment to our values in an increasing way, over time.”

Right then I thought, “Hope is not a strategy, and vision without action is a hallucination.”

I then suggested mechanisms he could put in place to make their values more than a slogan. This company is not unique. Most companies’ values declarations remain unfulfilled aspirations.

Following are the two main reasons values declarations remain unfulfilled aspirations and what to do about them:

1. A lack of specifics. Lofty aspirations and philosophical abstractions don’t get translated into precise, well-defined expectations.

If your company falls into this category, you run the risk of people creating their own specifics.

About 25 years ago, I met a guy named Bill O’Brien. Bill was the CEO of Hanover Insurance, a medium-sized property and casualty insurer in Worcester, Massachusetts. He had resurrected the company from the dead during the previous decade with a focus on corporate values. Hanover’s top and bottom lines improved significantly as the company riveted its attention on what it wanted to stand for.

How’d he do it?

First, they launched a decade long dialogue around what their values were, what they meant (precisely), how to translate them into actions and behavior, and what the consequences and benefits would be for repeated transgressors as well as ardent supporters. They “walked it” and “talked it.”

Bill also produced what became known as “Bill’s Blue Books” – one for each of Hanover’s values – beginning with “Merit”, “Openness”, “Localness,” etc. Each of the pamphlets, ten to twenty pages in length, described a specific value in detail, along with what it looked like “in action.” To help drive this change, he retained Chris Argyris, an expert in organizational learning from Harvard.

Later, Bill also utilized the services of Peter Senge of the Sloan School at M.I.T. to work with the company on solidifying the values in a disciplined, firm-wide way. Peter later wrote the book “The Fifth Discipline,” which was hailed as one of the 10 best leadership/management books of the 1990s. (It’s one of my “10 best.” Click here to check it out!) It features Bill O’Brien and his experience at Hanover prominently.

I sought out Bill as a mentor, and he became that for me from about 1990 until his death six years ago. One of the things that he made very clear to me was the priority of translating corporate values into precise, granular behaviors with which people could identify and the necessity to build mechanisms to embed those behaviors. Otherwise, values remain at a level too lofty, esoteric and philosophical to be taught and modeled.

2. Lack of consequences. By this I mean that people who either cannot or will not demonstrate, through their actions, a commitment to company values and are not held accountable.

In my opening example, Dave implied that his company’s values were aspirations, and my silent response was that “vision without action is hallucination.” When I use the word “action,” I’m always implying the word “consequences.” At some point, there must be an upside and a downside for leaders who either do or don’t demonstrate, through their actions, a commitment to their companies’ values.

Here’s an example: John was the CFO at a Fortune 1000 biotech company. One of his company’s values was “people development.” A brochure on the company’s values described it this way: “We believe in hiring the best people and then giving them the resources and opportunities required to enable their personal and professional success.” For five years running, John spent 50% less per staff member on training and development than any of his peers; he had fewer of his own people involved on cross-functional teams than any of his peers; he promoted fewer of his people than any of his peers. When it came to technical expertise and performance in his own functional specialty, however, John was a STUD! The result: The CEO (John’s boss) and the Chief Human Resources officer “looked the other way” on John’s “people development” shortcomings. Oh sure, they encouraged John to “get-on-board” and they got him an executive coach. For a year or two, those were appropriate responses. At some point, however, somebody should have “turned over the hour glass.”

The cascading consequences of this type of indulgence are predictable: People perceive a double standard, and then in a silent but decisive way, they convict their senior leaders of hypocrisy. The ensuing cynicism becomes a part of the cultural fabric and permanently infects everything.

The bottom line: If you decide to go down the “company values” road, do it right. If not, watch out. 

Note From Rand

I have never referred to my clients in this publication without pseudonyms. Additionally, I have rarely referred to my client companies by name. In this case, I’m making an exception.

I’ve worked with Capital One and its team for more than nine years. It’s a symbiotic relationship of which I’m very proud! I enjoy professional and personal friendships with people at every organizational level.

Capital One is a unique company in many ways. One of those ways is its dedication to professional development. Another is its unusually large percentage of people with breathtaking intellect and analytical ability. This month, I invite you to meet Peter Schnall; he is a unique man along both of those dimensions. Peter is the Chief Risk Officer at Capital One. We met several years ago and became friends quickly, although it took a few more years for us to formalize a professional relationship. I’ve now been his executive coach for more than a year.

Several months ago, I confronted a challenge regarding my upcoming book, which was who to ask to write the book’s Foreword. I work with a lot of “C level” executives, any of whom would have done a terrific job, but I wanted penetrating insight and self-disclosure in 800 words or less. Very few senior leaders are comfortable exposing their “personal challenges” and discussing their own development. I suspect that most would also solicit the help of corporate PR people for the writing. Peter Schnall is a glaring exception.

Peter comes from Boston. Up there, they would refer to him as “wicked smart.” In addition to his imposing intellect, Peter embodies a trait that makes him a perfect client; he is brutally honest WITH and ABOUT himself. He acknowledges his imperfections and never minimizes the challenge of personal change.

I asked Peter to write my Foreword in February, and I’m delighted that he accepted my invitation. His words about himself, his journey and our relationship follow exactly as they will appear in my book. They reveal an unusually candid and honest man.

See you in September. Get real, get tough, and get going!

Meet Peter Schnall

(The following Foreword is excerpted from my upcoming book, Consensus is not Kumbaya: Lessons in Tough-Minded Leadership.)

Foreword

A number of years ago, an executive coach told me that my only job was to clone myself. I thought that was crazy; my job was to make decisions, make things happen, drive change.

I argued; she held her ground; we called it a day, and I went home to sleep on the debate. The next morning, I resolved to give her crazy cloning idea a try and cast every action as an opportunity to teach my colleagues how I think, how I decide, and how I move ideas forward.

After that, every meeting became a teaching moment. I asked deeper questions and explained why I was asking. And if I had to decide, I explained why I was deciding – what my logic said, and what my heart was telling me.

This new approach was a revelation, a through-the-red-sea moment. Guided by faith, I took a step into forbidding waters that, to my amazement, parted and gave me entrance into a new world. I have forged a career marked by through-the-red-sea moments of discovery.

That’s not to say I became a master all at once or even that I am one today. It is to say my coach provoked me to look at my leadership agenda in a radically new way that made me a better executive.

My leadership development journey began just months into my first job after college. An early boss told me I should think in graphs rather than in equations. That may never have been your leadership issue, but I think you’ll recognize my emotional response: I thought, “What right does anyone have to tell me how to think!”

But I also saw how much more compelling his explanations were than mine and decided to give it a shot. I set out deliberately not only to change my presentations but also to change my work process that led up to them. I got faster, made fewer mistakes, and got better at explaining to my boss what I had done. This was my first trip through-the-red-sea.

Some reinventions are essentially simple; others meet stubborn resistance from personal demons, habits, and insecurities. The most hurtful, accurate, and still frustratingly in need of attention showed up in these two words on a performance appraisal in the early ’90s: “Be Humble.” Damn, that one has been hard. Since then, I’ve had a commitment to humility in my head that has been difficult to turn into an automatic reflex in my heart. I’m still trying to get through-the-red-sea on that one.

Rand and I first met when he was coaching a colleague. Like all good coaches, he observes carefully, reads broadly, and is always ready with a framework.

Unlike most coaches, Rand has “been there and done that.” Having been a top executive, he knows firsthand what it takes to lead an organization – how to deal with both talented and difficult subordinates, make music with a challenging boss, and drive results year after year.

He is also restless without being unnecessarily impatient and tough-minded without being hard-headed. Rand delivers a powerful combination of solid pedagogy, battle-tested principles, and empathetic deep wisdom.

And he can provoke those through-the-red-sea moments, which is my greatest tribute to a coach.

Here’s an example. Once at dinner, I expressed frustration that I wasn’t able to fulfill all my vision for the company. Rand asked, “Do you feel that you personally have to solve all of the company’s problems?”

“Well, of course not,” said my head. My heart wasn’t quite there yet, and off I went through-the-red-sea with his help, to reinvent my understanding of how I could trust my talented colleagues to work with me in building a better company.

You’ll find that Consensus is Not Kumbaya depicts Rand perfectly. When you read his words, it’s the same as hearing them in person. Either way, he is challenging, direct, and principled, and he is wise, pragmatic, and understanding. All that said, as his client and friend, maybe the thing I value most about Rand is this: for him, “truth” is more important than “comfort.”

In his approach, he first demands debate and discovery of principles. Then he provides step-by-step advice, but with a challenge: If you don’t adopt the right attitude, you will make only incremental change, and that just isn’t good enough.

I read this book as an invitation to go through-the-red-sea into a new, uncomfortable world without excuses. Rand challenges the conventional mindset of what executive leadership is about, gives you a roadmap, and urges you to start your journey. It’s a provocative gift.

Good luck and bon voyage!

Peter Schnall
Chief Risk Officer
Capital One Financial Corporation

Note From Rand

Several years ago, I introduced Denny Flanagan in the pages of this publication. Denny is a captain at United Airlines and, as I subsequently found out, a special guy in many ways. I was on my way to Sedona with my wife, and he flew the first leg of our trip. That trip began a friendship that I still relish.

This month’s article is the chapter in my upcoming book that describes my experience with this man of character. I know you’ll be inspired and perhaps even overwhelmed by Denny – a tough-minded leader in the best sense of that phrase.

See you in August. Get real, get tough, and get going!

Denny Flanagan – A Customer Service Champion and a Man of Character

I’m infinitely interested in certain things and completely disinterested in others, which includes anything mechanical; you’ll find little middle ground with me.

When I put my key into the ignition of my car, something happens to make it start that I don’t have to understand. I love watching good TV programs, but I don’t care how the picture gets into my TV. However, if you show me a customer service champion, I’m all over it. I’m completely curious about people who make a difference.

This brings me to Captain Dennis J. Flanagan of United Airlines. Here’s what happened that piqued my interest about this man of character.

My wife and I were flying to Arizona to spend a week in Sedona. Our Denver-bound flight was to leave from Baltimore on United Airlines. About 30 minutes before our scheduled departure, we sat at the gate waiting to board when the door to the Jetway opened. The United captain emerged, strode to the ticket counter, and grabbed the microphone. Based on my substantial flying experience, a variety of possible scenarios bombarded my brain – none of them good!

Then this captain began speaking. “Good morning, ladies and gentlemen. I’m your captain, Denny Flanagan.” He went on to describe the weather we anticipated and our route. Then he said, “We’re flying a Boeing 757 this morning. If you have any questions during our flight about the aircraft or flight, I’ll be happy to answer them. Our plane this morning is in great shape.” A long pause ensued, then, “And I’m in good shape.” The passengers chuckled. “By the way,” he continued, “this is my first flight.” Silence … “Today!” he added with a grin.

Great. He does schtick! He’s a pilot I can relate to.

Among the waiting passengers, I could see their moods quickly change like a wave. They hadn’t previously appeared anxious or worried, just indifferent or tired. After that announcement, they seemed jovial and eager to board.

We wondered what would happen next. Jimmy Buffet with a parrot? A conga line?

As we began boarding, Captain Flanagan stood at the door to the plane handing out cards with a 757 pictured on one side, and a description of the aircraft on the other. Greeting him, I mentioned I was an executive coach and consultant who published a monthly newsletter. I said I’d like to write something about his congeniality and gave him my business card. He replied that he’d love to talk at some point.

An hour into our flight, Anne, the purser, spoke over the intercom saying, “Good morning, ladies and gentlemen. We here at United believe travel should be fun. So Captain Flanagan is raffling off discounted tickets on United.”

Wait a minute, now we’re having a raffle? What’s next? Karaoke?

She continued, “On your cocktail napkin, please write down the reason you chose United for your air travel. I’ll then draw four napkins and read the responses. Those people will each receive a coupon worth a discount on a future United flight.”

The raffle concluded, and I didn’t win. But a few minutes later, Anne came down the aisle with one of Captain Flanagan’s business cards. On the back was this note: “Mr. Golletz, You are a valued customer and your business is greatly appreciated. Please let me know how we can exceed your expectations. Also, could you wait for me after the flight?” Signed, “Capt. Denny.”

I couldn’t meet him because of a tight connection in Denver, so I asked Anne to tell him I’d call him after my Sedona vacation, saying I was eager to know more about him. Before taking my response to Denny in the cockpit, she told me what she knew about this unusual and extraordinary guy:

• He institutes the raffle on every flight and posts the cocktail napkin responses where United staffers can read them.

• He has a large number of copies of a coffee table–sized book on United’s history and presents them to United associates who respond to customers in exceptional ways.

• He handwrites personal thank you notes on the back of his business cards to every first–class passenger on every one of his flights.

• He provides his personal credit card to unaccompanied minors on his flights so they can use the in-flight phone to call home.

• One of Denny’s co-pilots, Buck Wyndham (how’s that for a pilot’s name?), was so impressed that he asked Denny if he could record him for several days after the brass okayed the idea. The video recording was subsequently used for training at the company.

When I got home from that vacation, I spoke to Denny and a number of people close to him. My primary question was, “What created this dedication to customers?” Denny said, “I do it because it’s my job.” Not a guy prone to self–congratulatory behavior. His wife, Terri, told me he has a profound sense of duty and loyalty that endures despite adverse circumstances. His associate Bud Potts, another United pilot, couldn’t explain this quality in Denny. He expressed his admiration for both who Denny is and what he does.

Keep On Learning from Captain Denny

What have I learned (or reaffirmed) from my experience with Captain Denny? Here are three conclusions:

1. For years, United Airlines has gone through lots of well–documented challenges. Providing a bright spot amid the fray is a leader who demonstrates resilience, persistence, tenacity, a love of people, loyalty, and dedication. Where he got it isn’t as important as that he has it. Character counts!

2. People follow examples rather than orders. Frequently, Denny preaches the word of customer service to other United associates. They listen to him because his actions mirror his words. He’s consistent and authentic. He reaffirms what he says with what he does.

3. When faced with challenging times and circumstances, we have choices. We can focus on the good with a positive attitude or whine about the way things are and harbor resentment. You’ve probably heard it before and I’ll say it again: Resentment is tantamount to drinking poison and expecting someone else to die. I know people at United who want the company to fail because of deep-seated animosity and their need to prove themselves right. At the risk of appearing simplistic, I say, “Find something else to do with your life!”

When times get tough, people throw in the towel and leave out of frustration. To those at United and other firms who have confronted similar challenges and gotten out, I say, “Sometimes leaving is the right answer – for both the organization and the person. Better to leave than seethe.”

To people anywhere who decide to plant their feet and work for productive change – Bravo! Find other like–minded people to provide you with the courage to continue the fight. Incubate ideas; initiate independent action; take risks; build the company you want.

To everyone, but most particularly the executive managers of United, what can you learn from this story and how can you leverage that lesson? Will you have the courage and smarts to place your bets on people like Denny Flanagan?

P.S. I first wrote about Denny in my monthly newsletter in 2005. Since then, others have also noticed his amazing qualities. For example, he has appeared on TV network shows “This Morning” and “Good Morning America” and has been featured in a page-one story in the Wall Street Journal. In an industry that desperately needs heroes, Denny joins pilot Sully Sullenberger (of “put the plane down in the Hudson River” fame) as a guy worth emulating. I’m proud that Denny and I have become good friends. When he’s in D.C. or Baltimore, we still have dinner together. (Come to think of it, Denny, you owe me a meal.)

Note From Rand

People who know me understand I’m literally obsessed with the impact that mental toughness has on success. I believe that while many variables contribute to accomplishment in any field, mental toughness is the common denominator.

In this month’s solo article, Exhibit A is Philadelphia Phillies pitcher Roy Halladay. A certain first ballot Hall of Famer when he retires, he’s currently baseball’s “gold standard” of toughness and discipline. The “story behind the story,” however, is that his career tanked for a time almost a decade ago. Then he met H. A. Dorfman. Their story, and it’s very real and very important lessons for you, are the subjects of this month’s Real Deal. I know you’ll find it provocative and instructive.

I’ll see you in July. Until then get real, get tough, and get going.

Are You As Tough As Roy Halladay?

Last Saturday night, Roy Halladay pitched the 27th perfect game in the history of major league baseball.

If you’re not a baseball fan, you may not know his name. Here’s a primer: He’s the best pitcher in baseball. That’s not only my opinion; it’s the overwhelming opinion of his peers. Complete games – Halladay. Innings pitched – Halladay. Earned run average – Halladay. Average wins per season – Halladay. Command of his pitches – Halladay. Most importantly to me (and hopefully to you) are not the stats and tributes; it’s Halladay’s mental toughness and discipline.

Ten years ago, after being the “it” guy among young pitchers in the major leagues, his career hit the skids. He was relegated to the minor leagues to regain his mojo. While there, his wife bought him a copy of H. A. Dorfman’s book (sounds like a geeky cartoon character?!), The Mental ABC’s of Pitching. He then began working with Dorfman, who was/is a renowned sports psychologist, and everything changed.

From Sports Illustrated: “And that’s when I saw the biggest difference,” Halladay said. “The first part was trying to rebuild confidence, having a positive mentality. The second part was to simplify things. Sometimes you get caught-up in the big picture – the seven innings, the three runs or less, who you’re facing – and you get away from what makes you successful, which is executing pitches.

“Knowing when I go into the game that I prepared the best I possibly could was a way to help build confidence. I didn’t always need success on the field to feel like I was going to be good. I felt like I could create that on my own the way I prepared.”

Says Brandy (Halladay’s wife): “Dorfman really taught Ray to focus on one thing at a time. When he gave up a hit, he learned to think about the next hitter. He helped him deal with those mental stumbling blocks every person has to deal with. The book and Dorfman helped his pitching career, our marriage, the way we looked at life in general… it absolutely saved his career.”

Many business people (maybe you?!) are so busy thinking about the next promotion, the presentation to the CEO in three weeks, or checking their Blackberries for the 100th time in a day that they forget to “be present.” They forget that the only thing they can control is what they’re doing in any given moment. They forget that by focusing on being the best they can be RIGHT NOW, IN THIS INSTANT, DOING WHAT THEY’RE DOING TODAY, all of the other stuff – the money, the broader responsibilities, the career trajectory, ultimate success – will all take care of itself.

Many business leaders with whom I work underestimate or dismiss the power of their minds to control (or at least significantly influence) their outcomes. They operate while being completely distracted by yesterday and tomorrow. They do a pretty good job of learning from the past and planning for the future, but on the “living in the moment” part, they blow it.

I’ve always been a “jock,” and my entire business is geared to helping leaders develop mental toughness and discipline; therefore, Halladay’s story, and one’s like it, naturally intrigue, excite and enthuse me.

One of my primary interests is the power of the human mind to propel or torpedo success. I have two bookshelves in my office full of books on the subject, many of them by renowned, accredited scientists. Through my learning, I’ve found that the selective application of certain principles has helped me in my own life, especially in the last few years.

After doing some research, including talking to a number of major league ballplayers, I decided that Dorfman’s approach to counseling athletes might help me in my work with executives. I ordered and read copies of two of his books: Coaching the Mental Game and The Mental Game of Baseball: A Guide to Peak Performance. I’ve found both books totally relevant and very useful. Following are some tidbits that can contribute to your effectiveness and maybe incite your interest sufficiently to read Dorfman’s books.

Dorfman cites a study by Albert Ellis wherein he documents 10 irrational beliefs that he found to be common in our society. Dorfman mentions them in a baseball context. They have just as much significance in other areas of life, including business management and leadership:

* You must have approval all the time from the people you find significant.

* You must be thoroughly competent, “producing” every time.

* Things must go the way you’d like them to, and it’s terrible if they don’t.

* Others, particularly “superiors” in rank, must treat your “fairly” and “justly,” and it’s terrible if they don’t.

* When threatening and/or “clutch” situations present themselves, you must become preoccupied with them and the consequences (as YOU perceive them).

* It’s terrible when you don’t immediately find solutions to your problems, on and/or off the field.

* Your emotional misery comes from external pressures, and unless these pressures change, you can do nothing to make yourself “better” (i.e., more effective as a player and/or person).

* It’s easier to avoid responsibility (be passive or quit) than to take charge of your life and/or a situation.

* You are helpless to cope with the overriding influences of the past.

* You can gain happiness and/or effectiveness by inertia or by uncommitedly “having fun” and waiting/hoping for the right things to happen to you.

Do any of these points (maybe ALL of them) ring true for you?!

Dorman adds several others of his own to Ellis’s list: emotional swings; negative thinking; pressure and anxiety; slumps; pain; anger. In my experience, while the issues on Dorfman’s list are derivative of those on Ellis’s list, they’re every bit as relevant.

How does Dorfman help players overcome these problems? It’s called “discipline” for a reason. He helps players regularly employ some practices that better enable them to stay “in the moment” and be productive. He says, “the athlete knows what direction he wants to take and how to take it. Now he disciplines himself to take it. He controls his mind; he disciplines it.”

Dorfman calls his approach the “cycle of control,” and it contains four steps. Here they are along with Dorfman’s complete descriptions. Assess whether these steps, employed consistently, would make you even more effective than you already are. For the sake of example, imagine yourself preparing to give a presentation to your company’s Board of Directors.

The Cycle of Control

* Control through awareness: The control of the ability to recognize what you are thinking, feeling and doing – and what is happening to you. This control gives you the understanding of where your attention is directed and, if it’s not where you want it to be, the reason it isn’t. You are then able to follow the cues you know that can help you concentrate on the task.

* Control through thoughts: This control is exerted after concentration has broken down or has been “given a break.” These thoughts should be rational and relevant to the task of the moment. They redirect focus.

* Control through self-coaching (self-talk): If the quality of your thoughts has deteriorated, you control the words you speak to yourself – internally or externally. These words are directives to get you back to a general positive attitude and to concentrate on positive function.

* Control through behavior: This control is of physical behavior, guided by rational, rather than emotional, directive; the “final instructions” provided by self-talk. Examples: “See the ball.” “Be easy.” “Find the open man.” “Stay low.” Regardless of how you feel, you act out of what you know, what you’ve been reminded of. After that action, you assess your behavior – and the language that directed it. You come full cycle and anticipate greater success in the next cycle.

More from Dorfman:

“Of course there will be many external and internal challenges. The extent of the discipline applied will determine the success you have in executing your task effectively. Mental discipline requires great effort. It’s worth having; worth that effort. An unyielding persistence is a part of that discipline. It will ultimately allow you to focus on your task in the toughest of times.”

I call it mental toughness; Dorfman calls it mental discipline. Whichever, it is an absolute prerequisite for success in any field of endeavor, including yours. A solid commitment to developing and sustaining these practices, or ones like them, will propel your effectiveness and success.