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John C. Maxwell's book helps others reach their full potential by identifying and training potential leaders around you. It contains Maxwell's invaluable. Developing the Leaders Around You by John Maxwell .. Summaries are available in PDF, PDA, HTML, Powerpoint and Audio formats. For more information. Why do some people achieve great personal success, yet neversucceed in building a business or making an impact in their organization? JohnC. Maxwell.

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learned in more than 30 years of leadership. The people. October Developing the Leaders Around You. About the Author. John Maxwell is considered one. Leadership Requires Character Leadership is more about who you are than what you do. Your ability to develop the qualities of effective leadership, the. Developing the Leaders Around You Developing Multicultural Leaders: The Journey to Leadership Success · Read more What Goes Around Comes Around.

Demand excellence from your people, and they will develop into people who also demand excellence of themselves and the people they lead. Maxwell John C. The book is divided into ten chapters. The book preludes with the success story of John Wooden, a great basketball coach who brought ten national basketball championships to UCLA in a span of twelve years. Maxwell finds three things that characterize disciplined leaders:

A dream team coach chooses players well. A dream team coach constantly communicates the game plan. A dream team coach takes the time to huddle. A dream team coach knows what his or her players prefer. A dream team coach excels in problem solving. A leader should strive for excellence, but he should expect problems to occur. And believe it or not, he should welcome them. Problems almost always create opportunities — to learn, grow and improve.

Leaders must anticipate problems before they occur. They must maintain a positive attitude while they occur. A dream team coach provides the support needed for success. A dream team coach commands the respect of the players. A dream team coach does not treat everyone the same. A dream team coach continues to win. A dream team coach understands the levels of the players. A good team is made up of people with different talents playing different positions to accomplish one goal.

Poor commitment equals poor development. Some of us let those great dreams die. When people do only what is comfortable for them. People must learn to do new things.

All big individuals are dreamers. They see things in the soft haze of a spring day. Ralph Waldo Emerson Leadership Lessons: If you are doing the little things. Several tons of dirt must be moved to get an ounce of gold. You must earn these. Great desire can overcome a multitude of natural deficiencies in a leader. They stop growing. When you look for potential leaders. Little men usually cause trouble. They constantly strive for higher and higher levels of achievement. A potential leader who feels secure is more likely to take risks.

And he outlines the differences between winning by competitiveness and wining by cooperation. It is worth reading not only to become a good leader but also to build leaders around you so that you can successfully pass on the leadership baton to your next generation.

The growth and development of people is the highest calling of leadership. Followers tell you want you want to hear.

The very best leaders. They are afraid of risk. The key to making the right choice depends on two things: Great leaders — the truly successful ones who are in the top 1 percent — all have one thing in common. Too often people limit their own potential.

They think in terms of intangibles like timing. Hiring an employee is like skydiving: It unfolds pearls of wisdom based on the rich experience of Maxwell. Read more: People no longer willing to stretch are no longer able to grow. No matter how efficient and strategic they are. He concludes the book by questioning the readers. As author Henry Drummond says. Great leaders make their followers feel bigger than they are. There are a variety of different methods and techniques that you can use.

The strategy that you choose can be the critical factor in your success or fail- ure. You must select your strategies with care. For each objective, develop several alternate strategies. Al- ways have a Plan B. You are only as free as your well-developed options.

Never allow yourself to get stuck with only one course of action. For example, there are more than 20 different ways to sell a product and more than 20 different ways to get the money you need. Most companies limit themselves to one or two of these instead of continually exploring alternatives. Keep expanding your thinking by asking, "How else can we achieve this objec- tive? One of the biggest flaws in business think- ing is, "Because I want to, I can.

In developing your strategies, consider the situation in the marketplace. Who are your customers, and what do they want? Who is your competition, and how are they likely to respond to your strategy to take business away from them? In developing strategies to achieve your critical objectives, al- ways have a clear idea of what you will do if your initial plan is not successful.

The rule is to "Assume the best and plan for the worst. What will we do then? What would our fallback position be? Create a plan by listing everything that your company will have to do to achieve a partic- ular objective within a particular strategy.

After the invasion, during which innu- merable things failed to happen as expected, General Eisenhower was asked about the value of the plan. He replied, "The plan was nothing, but the planning was everything. Make sure that you have the capabilities to carry out this strategy within your organization, or that you have these capabil- ities available to you through outsourcing or other companies.

Once your list of steps is complete, organize your activities by priority and sequence. To organize your activities by priority, determine what is more important and what is less important.

Of all the things that you could do to carry out your strategy and to achieve your ob- jective, what is the most important action you could take? Organize activities by sequence by determining what you will have to do first, what you will have to do second, and in what order the other tasks will have to be done. In planning your strategy, think in terms of parallel activities as well as sequential activities. Parallel activities are activities that can be done at the same time.

Sequential activities are activities that require that something be done before something else is done. All excellent executives and leaders are good planners. They take the time to think, plan, and decide before they take action. There is a rule that says, "Every minute spent in planning saves ten minutes in execution.

All the greatest strategic thinking in the world and all the greatest planning is useless if you do not con- vert that thinking and planning into action.

The final step in the method is simply to do. Once you know where you want to go and how you want to get there, you must decide upon a specific day-to-day plan of action and then launch strongly.

In military terms, this is the at- tack. Leaders always think in terms of the specific actions they can take, and they resolve to take them quickly and decisively. You can set clear work goals for yourself and others and then ensure that everyone achieves those goals. Whatever those goals might be, the same rules of clarity and communication apply. As the leader, you must ensure that all the components of GOSPA are clearly understood throughout the organization.

Neither the goals, objectives, strategies, plans, nor action can be achieved by you alone; the entire organization must participate. To manage by objectives, take the time to explain, discuss, and get people to agree upon their individual objectives before you begin. Make each assignment measurable and time- bounded. Manage by responsibility: Make people responsible for re- sults. Put them in charge.

Delegate both the job and the responsi- bility for getting it done. Set deadlines for completion of each task. When a person knows that she is responsible and that you are counting on her, she will often perform the task at a higher level than you might have expected. It also means that leaders provide the required support to their organization. Communicate your objectives, then provide the financial, personnel, or any other kind of sup- port needed to achieve those objectives.

The best leaders are not only great communicators and delegators, they are also great en- ablers. The Principle of the Offensive This refers to switching over to the attack, to taking aggressive action against the enemy to achieve victory.

Napoleon said, "No great battles are ever won on the defen- sive. To succeed on any competitive battlefield, you must seize the initiative. You must always be attacking, moving forward, contin- ually innovating and marketing in new and better ways. The most important number in any business is cash flow.

The purpose of business warfare is to generate sales, revenues, and cash flow in a steady, predictable, consistent process in the face of determined competitors who also want the same thing. In business, the equivalent of the offensive, or the attack, in warfare is marketing and sales to your customers. The key to business success is increased sales activity and sales results. Success requires advertising, promoting, marketing to, and attracting prospective customers and then selling effec- tively and converting them into buyers.

In times of economic un- certainty, every effort and activity in the organization must be focused on sales generation and new customer development. The primary reason for business success is high sales; the pri- mary reason for business failure is low sales. All else is commen- tary. The Key Question for Business Success In a military situation, the military unit — whether it's a platoon, a battalion, or an entire Allied military force — will succeed by shooting their guns, firing their artillery, launching their missiles, grenades, and torpedoes, and dropping their bombs.

These ac- tions, however, are not done in a haphazard, freewheeling man- ner. A military offensive is a concerted, organized effort, with a role for every component, from the general to the private. It works because the unit's leaders asked and answered a series of questions — questions such as what or whom is to be attacked, why is it being attacked, and with what personnel and materiel will it be attacked.

While military leaders have little problem keeping all the members of the unit focused on how to achieve victory — defeat the enemy with military force — business leaders have to work harder to keep the business organization focused on its path to victory.

As I said above, the only path to business victory is to sell more. I have developed a summary series of questions that you can ask and answer regularly to ensure that your company, and everyone in it, is focused on acquiring customers and selling more.

Let us look at each of these questions individually: What exactly is to be sold? To whom is it to be sold? Why will the customer prefer our product or service to that of our competitors?

How are customers to be identified and attracted? How are they to be sold? By whom are they going to be sold? How much are we going to charge? How are we going to charge this amount? How is the product going to be paid for? How will the product be produced and delivered? How will it be serviced and maintained?

How will all of these activities be monitored and managed? We will deal in greater detail with the answers to these ques- tions in chapter four. In the meantime, how clear are you and the key people in your company about the answers to each of the above questions? As a leader, your job is not only to know the answers, but to make sure everyone in the organization knows the answers — every answer.

A wrong answer to any of these ques- tions can lead to serious consequences and even failure of the business. Make sure that everyone knows his or her role as it relates to the answer to each question.

Employees not only need to know what products your company sells, for example; they need to know what the product choice or product price range or customer service plan means to their function in the organiza- tion. Think of the military offensive: The Principle of the Mass This principle refers to the ability of the commander to concen- trate his forces at one point, the location of the enemy's greatest vulnerability. In business, your ability to focus your company's limited re- sources and energies on its greatest potential opportunities is the key to personal and corporate success.

If you consider your big- gest competitor the enemy, to use the military term, then seek out those areas in which it is most vulnerable. A competitor may be trying to expand its product lines into areas where your com- pany has a longer history and greater name recognition.

Focus your efforts and resources on defeating the competitor in those areas. The principle of the mass is not only about weakening the opposition; it is also about strengthening your own company. One of your greatest responsibilities as a leader is to identify and monitor the critical success factors of your business. What are the most important numbers or metrics that best indicate the health of your business and the success of your activities?

Look not only for the obvious numbers, such as market share or return on investment, but also the less obvious, such as the ratio of in- ternational versus domestic revenue. Have your international sales been increasing steadily over the past five years, while do- mestic sales have stayed flat? If so, you may have greater oppor- tunity for international growth than you realized, while the domestic market may be saturated.

He found that 80 percent of the wealth was held by 20 percent of the peo- ple. Who are the 20 percent of customers who account for 80 percent of your business? Which are the 20 percent of your products and services that account for 80 percent of your sales volume?

What are the 20 percent of your sales and marketing activities that account for 80 percent of your sales? What are the 20 percent of your sales and marketing methods that attract 80 percent of your new customers? What are the 20 percent of your products, services, and business activities that account for 80 percent of your profits? Each answer reveals where you should be focusing the forces at your command: They are the ones you want to keep. Your ability to concentrate single-mindedly on those activi- ties that represent the greatest potential value to your business is an essential quality of leadership, indispensable to success.

The Principle of Maneuver This principle refers to the ability to move the attacking forces in such a way that they can outflank the enemy and attack where the enemy is most vulnerable.

Almost all great military victories are the result of speed and movement. The principle of maneuver applied to business refers to innovation and flexibility. With innovation, you continually seek faster, better, cheaper, easier, and more effective ways to produce and sell your products and services. One small improvement over your competitors can give you an edge in the marketplace.

Flexibility means that you continually try new things, in new ways. You refuse to get stuck in a comfort zone or fall in love with your current method of doing business.

Apply Zero-Based Thinking in Every Area Perhaps the most powerful single tool that you can use to remain flexible and effective in times of rapid change is what I call zero- based thinking.

With zero-based thinking, which comes from zero-based ac- counting, you continually ask, "Knowing what I now know, is there anything that I am doing today that I would not start up again today, if I had to do it over?

Now it's time to analyze your business. In times of rapid change, you will continually find that ideas and plans of action that seemed reasonable or even excellent at the time are no longer relevant and may even be counterproductive. Make a habit of applying zero-based thinking to every part of your business: Is there anyone working for you, anyone you have hired, assigned, or promoted, who, knowing what you now know, you would not hire, promote, or assign?

Are there any products or services that, knowing what you now know, you would not develop or bring to the market again today? Are there any services that you offer to your customer in conjunction with your other business activities that you would not start up again today, knowing what you now know?

Are there any business expenditures, in any area, that, knowing what you now know, you would not authorize again today? Are there any business processes or activities in your business that, knowing what you now know, you wouldn't start up again today, if you had to do it over? Are there any investments or commitments of time, money, or emotion that, knowing what you now know, you wouldn't get into again today?

How can you tell if you are in a situation where zero-based thinking needs to be applied? It's simple: Whenever you experience chronic stress, or ongoing irritation or dissatisfaction begins to follow you around, ask yourself, "If I was not doing this, would I get into it again today?

They cannot admit that they made a mistake. They are afraid to tell others that they have changed their mind. They don't want to face up to the fact that they were wrong in their original decision. But this is not for you. Do a KWINK analysis on every part of your life where you are experiencing stress or aggravation of any kind.

It takes tremendous courage to admit that you are not per- fect, that you have made a mistake, and that one of your cher- ished decisions from the past has turned out to be wrong. But as soon as you admit that a zero-based thinking situation has oc- curred and you then move to eliminate it, all your stress will dis- appear. Over the years, I've worked with thousands of executives in the area of zero-based thinking. After they have finally admitted that they wouldn't get into that situation again, knowing what they now know, and they moved to resolve it as quickly as possi- ble, they all had the same reaction: All your stress will disap- pear.

All of your mental energy will then be available to you to focus on the future, to focus on what you can do and accomplish rather than worrying about a bad situation. The Principle of Intelligence The principle of intelligence refers to the need to obtain excellent information concerning the actions and movements of the enemy. In military terms, the more that the commander knows about the opposition forces, their numbers and deployments, the better able he is to plan the strategy necessary to defeat them.

In business, the more you know and understand about your competitors and your marketplace, the more successful you will be. The more time you take to thoroughly understand your mar- ketplace, your main competitors, and their most attractive prod- uct offerings, the more insights you will gain, which will enable you to take the actions necessary to make sales in a tough market. Working closely with your leadership team, create a competi- tive analysis grid comparing yourself and your products or ser- vices to each of your main competitors.

What are their major products and services? Who do they sell them to? Why do those customers buy from our competitors rather than from us?

What is our competitor's reputation? What do people say about our competitor that causes them to appear to our potential customers as a more desirable supplier of our product or service? What is the perceived quality of their product or service? On a scale of one to ten, what is their quality ranking in the marketplace in comparison to us? How do we compare with our competitors in this area? What are our competitors' prices for products and services similar to what we offer?

Are our prices higher or lower than theirs?

Developing the Leaders Around You by John c | Dream | Leadership

Could we change the competitive structure of our market by altering our prices in some way? What kind of people do our competitors have as executives, managers, and staff?

How do our people compare with theirs? Are they aggressive about training and upgrading their people? Do they pay more to attract better people? How can we position our company against them with regard to human resources? What is the quality of their sales force? Do they have excellent salespeople who are thoroughly trained and professionally managed? The company with the best salespeople always sells more than the company with lesser quality salespeople.

What is their competitive advantage?

Developing the Leaders Around You by John c

What is their area of excellence? In what way are our competitors perceived to be superior to us, and what could we do to offset that? In some companies, leaders do not know the answers to these important questions — not because they don't ask the questions, but because they are not being told the right answers.

The princi- ple of intelligence, in business and in the military, depends on the flow of good intelligence from the front lines to the com- manders. You alone cannot develop the information needed to answer these questions.

Do you punish bad news? Do you play the blame game? Do you refuse to believe any information that you don't want to hear? If you react nega- tively or destructively to bad news, you will not get the answers you need to make the right decisions. Once you have a realistic and honest appraisal of the compe- tition, based on honest, unconstrained information, continually ask yourself, "How can we use our brains and abilities to outma- neuver our competition?

The Principle of Concerted Action This refers to the ability of the general in command to ensure that all parts of his forces work together in harmony and cooper- ation in both offensive and defensive operations. A well-organized, smoothly functioning, highly professional modern army can defeat a disorganized army several times its size. We see this in modern warfare, where small armies, well commanded and coordinated, achieve great victories against overwhelming odds.

We have seen this in Middle Eastern con- flicts going back as far as the victory of Alexander the Great over Darius at the Battle of Arabella, in bc, when Darius's million- man army was defeated by 50, crack Macedonian troops under Alexander.

The equivalent in modern business is the team. All work is done by teams. All top companies have excellent, efficient, well- ordered teams that function effectively to achieve business re- sults. Today, the manager's work is the work of the team. The man- ager's job is to organize and facilitate the team so that it achieves excellent results. We will discuss the art of team building in detail in chapter eight.

The Principle of Unity of Command This refers to the need for absolute clarity about who is in charge of every area of activity, from the commanding officer on down. Top companies have clear leadership at all levels. Everyone knows who is in charge. For an individual to function effectively, he or she must only have one boss and be required to report to only one person. As the leader, you must be absolutely clear about your per- formance expectations for each person.

Everyone must know ex- actly what you want them to do, by when, and to what standard of quality. Perhaps one of the best ways to achieve and maintain unity of command is for you to hold regular meetings and discussions with your staff, complete with agendas and follow-up assign- ments.

The best leaders and the best organizations meet often to share information and discuss the work. The Principle of Simplicity This principle refers to the importance of clear, simple orders, commands, and battle plans that are easily understood by the people expected to carry them out. A good plan is easily understood and easily executed.

Good leaders strive for simplicity in every request and discussion. One of the keys to ensuring simplicity and understanding is to think on paper. Make sure that people take notes and write things down during discussions.

The very act of eliminating steps and minimizing complexity dramatically increases both effi- ciency and effectiveness in business operations. The Principle of Security This principle refers to the importance of guarding against sur- prise attacks or unexpected reversals. In business, the most important job of the leader is to ensure the survival of the enterprise. The principle of security requires that you look down the road and anticipate what could happen to hurt your business or to threaten its survival.

One of the keys to the survival of a business is so simple that it is sometimes overlooked or taken for granted: Cash is not the same as sales revenues or profits. But he doesn't have any cash from that sale until the institution that is financing the sale pays the dealer. Cash is king. To ensure that your business survives and thrives, you should receive from your accounting staff clear, con- servative cash projections for the next six to twelve months.

You should carefully monitor and manage cash flow on a weekly, even daily, basis. You should do everything possible to build fi- nancial reserves and provide against unexpected setbacks or fi- nancial shortfalls.

Running out of cash is just one of the surprises or unexpected reversals that can threaten a company. How do you prepare for other surprises, such as a new competitor attacking your market share, a new product that makes your current products obsolete, changes in customer preferences, new government regulations that impact your business, or any of the other potential surprises that might be waiting around the bend?

The core of a business is simple: The core of a business is simple, but the threats and surprises that can sink your company can come from a wide variety of sources. One of the best tools to help leaders ensure the long-term security of their companies is called scenario planning.

There is a wide variety of problems, setbacks, and unpleasant surprises that can befall your company in the long term. Scenario planning gets you thinking about what could go wrong so you can prepare for the future today.

With scenario planning, you develop three or four detailed scenarios of your company and its environment 5, 10, or 20 years down the road the number of years depends on how quickly change can dramatically affect your industry. Fill each scenario with details; describe not only your product line, customers, and competitors, but also all the other environ- mental factors that could impact your business, such as new fed- eral regulations.

Once you have filled in the scenarios, you can then take realistic, short-term steps to prepare for them. Does one scenario anticipate a new competitor underselling you with cheaper products? With scenario planning, you can identify the worst possible things that could happen that could affect the company's ability to survive. Then make a plan to ensure that if one of those rever- sals takes place, you have already developed a strategy to deal with it.

Scenario planning is a leadership activity, but, once again, your decisions and actions are only as good as the information you receive. Make sure that scenario planning sessions include employees and managers from all levels of the organization; the scenarios you develop must be based on reality — and reality is not necessarily the view from the top.

The Principle of Surprise This principle refers to the importance of taking an action that is not anticipated by the enemy.

All great victories are the result of surprise, of doing some- thing completely different from what the enemy expected.

In your market, conducting business the same old way is probably not going to work. You must be looking for different ways to do business with different customers, in different mar- kets, at different prices, using different distribution channels. In the military, they use a strategy called a force multiplier. This is a factor that an attacking force can use to increase its hitting power, even though it has fewer troops and armaments.

One of the most powerful force multipliers is speed. General George Patton used the force multiplier of speed to race across Europe in the latter part of World War II, encircling German armies and capturing thousands of towns and troops at a speed seldom seen in the history of warfare.

When you have a good idea in your business, implementing that idea with speed can give you an advantage over your com- petitors. You can also use creativity, the ability to find faster, better, cheaper ways to deliver your product or service, as a force multi- plier. Focus and concentration are force multipliers as well. Your ability to concentrate your energies on key customers and mar- kets can give you hitting power far in excess of your actual size or resources.

You can use the principle of surprise by doing exactly the op- posite of what you have been doing up to now. For example, instead of selling your product, your company offers to give it away. Be prepared to abandon one market altogether and concen- trate your resources in a different market. Intel transformed itself and the high-tech world by abandoning the low-cost, low-margin chip market and going full blast into the micro-processor market.

The rest is history. Continually seek new ways of generating profits from your existing resources. How could you combine your products or ser- vices to create new, more valuable offerings?

How could you break your products or services into smaller component parts to make them more attractive or affordable to your current cus- tomers? To counter this tendency, you should continue looking at different businesses in different markets, offering your products and services to different customers and seeking ways to approach your market in unex- pected ways.

Be aware that many leaders sabotage the principle of surprise in their own companies. Creativity and innovation require flexi- bility and risk. Your managers and employees aren't going to try something new if they are not allowed to fail. Your managers and employees aren't going to try combining products into higher value offerings or breaking products into smaller components if they are punished when their initiative fails to live up to expecta- tions.

Nor will your managers and employees try something new if they are not given the resources and the time to succeed or if every new initiative is rejected. As a leader, you establish the environment in which your peo- ple think and work. The companies that surprise the market and their competitors are those that have a culture of risk and experi- mentation — and that culture is up to you.

The Principle of Economy This principle refers to the importance of not expending any more men and materiel to achieve a military objective than it is worth or is necessary. In business, the principle of economy means that you do ev- erything at the lowest cost possible.

You conduct a careful finan- cial analysis before making any commitment. You conserve cash at all times. You continually look for ways to save money and reduce expenses. Use your brainpower to replace financial power. Look for ways to accomplish your business goals in the most economic ways possible. There are two rules for financial success in busi- ness. Rule number one is, "Don't lose money! Don't spend money on non-reve- nue-generating expenses or activities until you have excessive cash reserves in the bank.

Treat your company like a turn-around at all times. Pretend that your company was on the verge of bankruptcy. What ex- penses would you curtail or discontinue? What steps would you take to ensure the survival of your business? The key to success in business is to practice frugality at all times.

Be careful with your money. Conserve it. Hoard it. Build up reserves. Always look for cheaper ways to accomplish the same task. The Principle of Exploitation This principle refers to the importance of the winning army tak- ing full advantage of a victory. Military commanders use the principle of exploitation when they achieve a breakthrough or a military advantage. In business, this means that you follow up and follow through when you achieve a market success or get a new customer.

As a business leader, encourage your people to never be satis- fied with an initial victory or breakthrough. If a new product is successful, your product development and marketing teams should be rightly applauded and rewarded for their success.

But they should also immediately begin to look for the next great product. One way to mandate this attitude as a leader is to re- quire that the majority of your company's sales come from prod- ucts introduced within the last five years. If a customer is acquired, you should likewise encourage your sales people to sell all they can to that new customer or market. They should look for ways to up-sell and cross-sell more of your products and services by making the customer happy with his initial purchase decision.

Once again, as a leader, you can either encourage or sabotage this behavior. Some leaders focus more on new customer numbers and less on customer retention rates, although it is far more expensive to acquire a new customer than to retain an existing one. As a result, their salespeople spend more time acquiring new customers and less time trying to keep the customers they have. There are only three ways that your company can increase sales and revenues: Sell to more customers.

You accomplish this with better marketing, greater speed, more sales activity, and better sales training; 2. You can sell more to each customer. Once you have a customer, as Shakespeare said, "Bind them to you with hoops of steel. You can achieve more frequent purchases by each customer with special offers, well-targeted advertising, and special promotions.

The most cost- efficient ways to increase sales and revenues are numbers 2 and 3: The Quality Service Strategy The real key to the maximum exploitation and development of a customer, to getting the customer to buy more from you, is outstanding customer service.

The most important question in sales and customer service is, "Based on your experience with us, would you recommend us to others? It is 15 times easier to get a sale as the result of a referral than as the result of cold calling. Everything that your company can do to build customer loyalty increases your sales, resales, and referral business. The most profitable companies have the highest levels of re- peat sales and customer loyalty. What could you do, starting today, to achieve a strategy of preeminence where your customer sees you as the only supplier of what you sell?

The Great Law The great law of the universe is the law of cause and effect. This law says that for every effect, there is a cause, or causes. Success is not an accident. Failure is not an accident. The law of cause and effect says that if you do what other successful businesses do, you will eventually achieve the same results that other successful businesses do.

But if you do not do what other successful businesses do, you will experience failure, frustration, and defeat in the marketplace. The 12 principles covered in this chapter are seldom taught in business schools, only in military academies like West Point, Annapolis, Sandhurst, and L'Ecole Speciale Militaire de Saint-Cyr in France.

It is interesting to note the large number of military officers from World War II who went on to head up major corpo- rations, with great success, in later years.

They found that the military principles of successful strategy were equally as applica- ble in corporate competition. Thinking is the most important work you do as a leader. The better you think, the better decisions you will make. The better decisions you make, the better actions you will take. The better actions you take, the better results you will get. It all depends upon the quality of your thinking.

When you apply these military principles of strategy to your business, they will provide you with a series of thinking tools that you can use to achieve victory in your marketplace against deter- mined competitors. They believe that their job is "to do the right things," while others are responsible for "doing things right.

They make things happen. They get results. They organize people, allocate re- sources, implement strategies — whatever it takes to get things done. In Execution, Larry Bossidy writes, "Only the leader can make execution happen, through his or her deep personal involvement in the substance and even the details of execution.

But they are all learnable, and they must be learned for you to realize your full potential as a leader. One of the most important management qualities is flexibil- ity. The more different mental tools and skills you have to get the most and the best out of your people, the more flexible and, therefore, the more effective you can be as a manager. Each role is as important as any of the others. Norman Au- gustine, president of Martin Marietta, wrote, "The weakest im- portant skill sets the height at which an executive can use all his other skills.

An executive can be excellent in many areas, but the areas where he is weak will hold him back from achieving everything that is possible for him. Give yourself a grade from 1 to 10 on each of these key roles. Be honest with yourself. And remember, they are all learnable with practice. Planning Planning is the process of determining exactly what is to be done. Action without planning is the cause of every failure.

Action preceded by thorough planning is usually the reason for every success. Think on paper. Write down every detail of the goal or objec- tive and every step you will have to take to achieve it. Get the facts, especially the financial facts.

Refuse to rely on guesswork or the hope that everything will turn out all right. Be mentally prepared to abandon the plan and try something else if you learn that it can't be done using the method you started with. The goal of the company is to earn the very most possible on the amount of money invested in the business. In setting personal strategy, your goal is to increase "return on en- ergy," the amount of mental, emotional, and physical energy that you invest to get results.

Because you save 10 minutes in execution for every minute you invest in planning, you achieve an ROE of percent by thinking through every critical detail before you begin. The true measure of your planning ability is simple: Your plan works. As the result of your plan, you get the results you pro- jected. If your plan doesn't work, you must change the plan until it does. One of the major reasons for failure as a leader is the inability or refusal to change plans from one that is failing to one that succeeds.

Remember the Six P Formula: Organizing Organizing is the process of assembling the people and resources you will need to fulfill the plan and achieve your goals.

This is a key skill of leadership. People with good organiza- tional skills are invaluable to any organization. Nothing is possi- ble without them. In its simplest form, organization requires that you make a list of everything you will need to carry out the plan on schedule and on budget.

These ingredients include money, people, offices, equipment, and technology. To ensure that you do not forget something essential, your list should be complete before you take action. For want of a horse, a rider was lost. For want of a rider, the battle was lost.

From the loss of the battle, an empire was lost. Oh what a loss for one small nail! Start on the most vital elements of your plan first. Accept or assign clear responsibility for each task or activity. This rule says that the first 20 percent of the time that you spend planning and organiz- ing is as valuable, or more valuable, than the remaining 80 per- cent of tasks. Staffing You must attract and keep the people you need to carry out the plan and achieve the desired results.

Your ability to hire and keep the right people will account for as much as 95 percent of your ultimate success. Most of your frustrations and failures will be the result of having the wrong person in a key position.

Because this subject is so critical to your becoming an excel- lent leader, we will discuss it at length in chapter five. Delegation Delegation is the skill of assigning the right job to the right per- son in the right way. You always have two choices: Proper delegation is how you make sure that someone else does the job to an accept- able level of quality.

Your ability to delegate effectively is the key to leveraging yourself and multiplying your value to your company. Delegation allows you to move from what you can do personally to what you can manage. Delegation is one of the most important management skills. Without the ability to delegate effectively and well, it is impossi- ble for you to advance in management to higher positions of re- sponsibility. Delegation is not only about maximizing your own productiv- ity and value; it is also about maximizing the productivity of your staff.

Your job as a manager is to get the highest return on the company's investment in people. The average person today is working at 50 percent of capacity.

With effective delegation, you can tap into that unused percent potential to increase your staff's productivity. Your job as a manager is to develop people.

Delegation is the means that you use to bring out the very best in the people that you have. The first step in delegation is to think through the job. Decide exactly what is to be done. What result do you want? The second step in delegation is to set performance stan- dards. How will you measure to determine whether the job has been done properly or not? The third step is to determine a schedule and a deadline for getting the job done. Task- Relevant Maturity The task- relevant maturity of your staff — how long they have been on the job and how competent they are — determines your method of delegation.

In this case, use a directive delegation style. Tell people exactly what you want them to do. Medium task-relevant maturity means staff have experience in the job; they know what they are doing. In this case, use the management by objectives delegation method.

Tell people the end result that you want and then get out of their way and let them do it. High task-relevant maturity is when the staff person is com- pletely experienced and competent. Your method of delegation in this case is simply easy interaction.

The Art of Delegation There are seven essentials for effective delegation: Pick the right person. Picking the wrong person for a key task is a major reason for failure. Match the requirements of the job to the abilities of the person. Be sure that the delegatee is capable of doing the job. Delegate effectively to the right person.

This frees you to do more things of higher value. The more of your essential tasks that you can teach and delegate to others, the greater the time you will have to do the things that only you can do. Delegate smaller tasks to newer staff to build their confidence and competence.

Delegate the entire job. One hundred percent responsibility for a task is a major performance motivator. Delegate clear outcomes. Make them measurable. If you can't measure it, you can't manage it. Explain what is to be done, how you think it should be done, and the reasons for doing this job in the first place.

Delegate with participation and discussion. Invite questions and be open to suggestions. There is a direct relationship between how much people are invited to talk about the job and how much they understand it, accept it, and become committed to it. You need to delegate in such a way that people walk away feeling, "This is my job; I own it.

Be clear about the time they have, the money they can spend, and the people they can call on to help them to do the job. Practice management by exception when you delegate. Set clear goals, standards, and deadlines for the delegated task. A job without a deadline is merely a discussion. Then tell people to come back to you only if they have a problem. If they are on schedule and on budget, they do not need to report. You can assume that they have the job under control.

Delegation is the key skill to growing your people. When you become effective at delegating with a few staff members, you will soon be given more people to delegate to, plus greater responsi- bilities, as a result of your delegation skills. All excellent managers are excellent delegators. In old-school thinking, people used to say that, "If you want the job done right, you have to do it yourself. Supervising Supervising is the process of making sure the job is done on time and on budget.

Delegation is not abdication; you are still ac- countable for results. The more important the job is, the more important it is that you keep on top of it. The job of the manager is to get things done through others. Your ability to organize the work and to supervise your staff effec- tively to get the job done on schedule and on budget is the key to getting the results for which you are responsible.

Your ability to supervise others can be greatly improved by learning what other excellent managers have discovered over the years and by applying these principles and ideas to your interac- tions with your subordinates. The Factory Model The application of the factory model of productivity to people, departments, and companies is a useful management tool.

Inputs go into the factory — time, money, supplies, equip- ment, supervision, and training. In the factory, production activi- ties are performed. The results of the process come out of the factory. Average people tend to focus on their job's activities. Leaders focus instead on the outputs and results expected of the process.

In operating your "factory," your job is to increase the quality and quantity of output relative to input. Make sure that each person is working on the most valu- able use of their time most of the time. To supervise well, you must be clear about the key result areas for a job, which are always objective, measurable, and time-bounded. What specific results do you want him or her to achieve at each stage of the work?

What are the tasks that he must do well to be successful in his job? Why is he on the payroll? What can only he do that, done well, will make a real contribution to your business? Excellent executives always focus on the strengths and the best talents and abilities of each person. Once you have defined a key result area, you have to set stan- dards of performance for that part of the job. Every person has to know exactly what you expect to be done, when it should be done, and to what standard.

Knowing what is expected is a major performance motivator. One of your responsibilities with your staff is to define per- formance so that they can recognize it and work toward it.

Only excellent performance motivates people and releases their po- tential. What gets measured gets done! If you can't measure it, you can't do it effectively. Check on the Job It's not enough to set standards and then walk away. As supervi- sor, you must make sure that the work is being done correctly. One of the best supervision techniques is management-by- wan- dering- around, when the manager is out and among the staff on a regular basis, keeping his fingers on the pulse of the business.

By wandering around, you get immediate and timely feedback about the work and can act quickly to solve problems or make changes. Everyone knows exactly what needs to be done, why it is to be done, and to what standard. The boss makes employees feel that he or she really cares about them. Good bosses give their people freedom to perform. Once they have assigned a task, they try to stay out of the way, except to comment and to help when needed. Back to School One of your jobs as the leader is to be a teacher.

The reason you are in charge is because of your superior level of knowledge and skill. One of the most helpful things you do is to pass on your knowledge and skill to those who report to you. Teach other people how to do the job that you have already mastered. You multiply your output by teaching someone else how to do something that only you can do. And you increase their value to the business. Five Keys to Excellent Supervision There are five keys to excellent supervision.

Accept complete responsibility for your staff. You choose them, you assign them, and you manage them. Look upon your staff with the same patience and understanding as you would look upon younger members of your family. Practice the Friendship Factor with them, which is composed of three components: Give staff time when they want to talk. Express caring and concern for them and their problems.

Treat them with respect, the same way you would treat a customer or friend. Practice Servant Leadership, by seeing your job as a position of trust with your subordinates. Just as they are there to serve you and the company, you are there to serve them, as well.

Practice Golden Rule Management. Treat each person the way you would like to be treated if the situation were reversed. When you practice Golden Rule Management — you manage other people the way you would like to be managed — you will elicit better performance from your people than in any other way. Measuring Measuring requires setting metrics — measures and numbers — for each part of the work, including setting standards of perform- ance for each job.

Every business activity can be expressed and defined in num- bers of some kind, typically financial numbers. In Jim Collins's book Good to Great, he emphasizes the im- portance of the economic denominator in any business. With each job, or part of a job, some kind of measure can be attached to it. In sales, the measure can be the number of calls, or the number of face-to-face appointments.

If it is the leadership of the company, the critical measure can be quarterly sales, profit- ability, or the share price. In business, the ultimate number is usually net cashflow, the actual amount of free cash that is avail- able — after all charges — to pay out as profits and dividends.

You must establish numbers for yourself in each key area. These become your targets, and measures of how well you are doing. Above all, you must select one number that is more indic- ative of your success than any other, and focus on that number every day. In the same way, every person who works for you must have a number, or numbers, to focus on in their work.

Developing the Leaders Around You

Each day, man- age by checking to see how closely the person is coming to hitting those numbers. The Hawthorne principle says that whenever people are clear about a particular number and focus on it, their performance in the area measured by that number improves. All rewards, recognition, promotion, and bonuses in your company should be tied to performance, to achieving the num- bers and measures you have set.

Reporting You must keep the key people inside and outside of your business informed at all times. This is one of the most important responsibilities of leader- ship — and of people at every level of the organization.

Fully 95 percent of problems in a company can be traced back to poor or nonexistent communications. Do you know who needs to know your results? Who needs to know what you are doing so that they can do their jobs properly? Who is going to be unhappy if you do or fail to do something and they don't know about it?

When in doubt, more information is better than less information. Make a list of everyone who needs to know what you are doing and how well you are doing it.

Start with your boss. What information does your boss need from you on a regular basis? Go and ask.

LAMONICA from Illinois
Browse my other articles. I take pleasure in making model cars. I do like reading books well .