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The firing of Joe Paterno as coach of Penn State has dominated the news this week. A legendary coach with the most wins in the history of major college football, Joe was dismissed for not doing more to stop the alleged sexual abuse of children by former assistant coach Jerry Sandusky.

The news came as a shock, because in many ways Joe was considered an outstanding human being. Not only had he coached at Penn State for 61 years, he’d also donated more than $3 million to the university and helped raise more than $13 million for its library.

I feel badly about the Paterno firing for two reasons. First, I’m deeply saddened about the impact of the alleged sexual abuse on the victims and their families. Second, I’m saddened for the students at Penn State, who argued that the board of trustees should have allowed Joe at least one more game or let him finish the season. From their point of view, Joe had broken no laws. When he’d learned about the sexual abuse, he’d reported it to the athletic director and to the vice president.

As I thought about it this week, the case of Joe Paterno is a classic example of why it’s so important to do the Ethics Check when making key decisions. In our book The Power of Ethical Management: Integrity Pays! You Don’t Have To Cheat To Win, Norman Vincent Peale and I describe the Ethics Check, which poses a series of questions around three areas: legality, fairness, and self-esteem. The next time you’re faced with a dilemma, ask yourself these questions:

1. Is it legal? Will you be violating either civil law or organizational policy?

In today’s society, people tend to focus on this first aspect of the Ethics Check—the legal question. They think if they can get lawyers to okay the decision, they’re doing the right thing. But just because an action is legal does not make it ethical. To assure that you’re doing the right thing, it’s a good idea to review the second two aspects of the Ethics Check.

2.  Is it balanced? Is it fair to all concerned in the short term as well as the long term? Does it promote win-win relationships?

If Coach Paterno had really thought through the fairness question—if he had fully considered the trauma to the victims and their families—he might have realized that he needed to do more. He’s already made statements that he probably should have done more. The fairness question goes beyond the legal question and looks at the effect your decision will have on others.

3.  How will it make you feel about yourself?  Will it make you proud? Would you feel good if your decision was published in the newspapers? Would you feel good if your kids and grandkids knew about it?

Unethical behavior erodes self-esteem. That’s why you feel troubled when you make a decision that goes against your own innate sense of what’s right. As the legendary UCLA basketball coach John Wooden said, “There is no pillow as soft as a clear conscience.” Thinking through how you’d feel if your actions were published in the newspaper or if your kids found out about them can help you decide the right thing to do. I’m sure that if Paterno knew how this incident would dominate his reputation at the end of his career, he certainly would have done more.

This simple but powerful Ethics Check can help anyone—from world leaders to boards of directors to private citizens—make decisions that stand the test of time and result in the greatest good. When you look at all three aspects of the Ethics Check, you can see that in making their tough decision, the board of trustees at Penn State did the right thing.

Unethical leaders always seem to be in the news these days, which raises the question:  How can you be sure you are leading in an ethical way?

I was fortunate enough to be able to work with Norman Vincent Peale, the great author of The Power of Positive Thinking, on a book called The Power of Ethical Management.  We had a wonderful “ethics check” in that book that I would love to share with you. It will help you make sure you’re doing the right thing.

There are three parts to the ethics check. The first part is this question:  Is it legal?  And by this we mean not only within the legal system, but also within organizational policies. A lot of people will stop there, and I think that’s where they get into trouble—they think it’s fine to do something as long as it’s not illegal. But the two follow-up questions in our ethics check are essential. The second question is: Is it fair? Is it fair to everyone involved if we do this?  The final part, if you make it through the first two, is a self-esteem question:  If you do this, how will it make you feel about yourself?  Would you be proud to have it published in the local newspaper?  You might also think about whether you would like your friends to know. How about your kids or grandkids?

We use this ethics check in our company all the time. For example, a number of years ago, a person in our Accounting department came to my wife Margie and said, “We have a potential ethical problem with Ken’s travel. He’s going to five different cities this week, and the contract with each client is that they pay round-trip airfare from San Diego and back. How should I bill it?”  So Margie said, “Let’s think. Is it legal to charge each of them for a round trip even if you are going from one city to another and not going back to San Diego until the end? Sure, it’s legal, because they signed the contract.  Is it fair to all involved?  Of course not! That wouldn’t be right. And if we do it, how would it make us feel about ourselves?” Margie continued, “I wouldn’t want it published in the local newspaper that the Blanchard companies made a lot of money on overcharging their clients for travel expenses!”

What a wonderful way to consider whether something is the right thing to do. Is it legal? Is it fair to all involved? And if you do it, how will it make you feel about yourself?  Use these three little questions frequently, and they will help you stay on the right track.

I’m really excited about my brand-new book, Lead with LUV, that I wrote with Colleen Barrett, President Emeritus of Southwest Airlines. The reason I’m excited about it is that if I were asked to leave a legacy of my thinking today, this would be it. The world is in desperate need of this message of love and people first.

If you know anything about Southwest Airlines, you know they’re all about love. (They sometimes spell it L-U-V because LUV is their symbol on the New York Stock Exchange.) They love their people and they love their customers. They love their work and take it seriously—but they don’t take themselves seriously.

For example, a colleague of mine was flying on Southwest recently when the attendant got on the public address system and said:

“You know, this is the last flight of the day and we’re really tired. To be honest with you, we don’t have the energy to pass out the peanuts, so we’re going to put them on the floor in the front the plane and when we take off and gain altitude, they’ll slide down the aisle.  If you want some nuts, just grab them.”

And that’s what happened! The whole airplane was in hysterics—laughing, having fun, grabbing peanuts, passing them to their neighbors—just having a blast!

That’s leading with LUV. How different is that than your typical experience on most airlines, where everyone seems so uptight?

Leading with LUV is about treating your customers right. Southwest really gets this. For example, when you call most airlines to change a reservation, you usually get a recording that says they really value your business, but all of their operators are busy right now; they’ll get to you as soon as possible. Then the music starts.  You could be waiting on hold for fifteen or twenty minutes or more.

But when you call Southwest Airlines, you usually get an operator, and if you don’t, you get a recording that says, “Your business is really important to us.  We’re sorry all of our operators are busy right now, but at the beep, please leave your name and phone number and we’ll get back to you in ten minutes.”

I did this recently, and you know what happened in ten minutes?  My phone rang and somebody said, “Is this Ken Blanchard?”

“Yes, it is,” I said.

“This is Bob from Southwest Airlines,” he said. “How can I help you?”

Now that’s what I call raving fan service! And that’s how you lead with LUV. No wonder Southwest is the only airline that has consistently turned a profit while the others have struggled.

These heart-warming stories don’t happen by accident. When an organization has happy people, happy customers, and happy shareholders, it’s because the leadership has created a culture that supports leading with LUV.  So, how do you do that?

First, you have to create a vision—something to love, something with a higher purpose than just making money. Southwest’s vision was that all people—not just the elite—would be able to afford to fly.

Second, you have to create the rules of the road—the values that will guide people as they work toward that higher purpose. For example, Southwest has three values:

  • A Warrior Spirit
  • A Servant’s Heart
  • A Fun-LUVing Attitude

Third, once you have the vision in place and the values established, the leaders have to get out of the way so they can cheer people on to achieve the vision. This means turning the traditional pyramidal hierarchy upside-down, so that the leaders support their people, rather than vice versa.

What does this look like in the real world? How do you, as a leader, lead with LUV?

First, by acknowledging people. When she was president of Southwest, Colleen Barrett sent out thousands of hand-written notes to her people every year, celebrating their successes, sympathizing with their losses, and thanking them for being extraordinary.

Second, by backing people up. Southwest founder Herb Kelleher once got a letter from a grumpy customer complaining about how much it bothered him that the flight attendants goofed off during the safety announcement. Because a Fun-LUVing Attitude is a Southwest value and this was a customer who tended to complain a lot, Herb didn’t apologize or offer him a coupon. Instead he wrote back, “We’ll miss you.” He stood by the values and the people of Southwest.

The third way to lead with LUV is to make your people your business partners. For example, pilots at Southwest have personally paid for hotel rooms for customers who, because of bad weather, had to spend the night in an unfamiliar city. The pilots could see that the people needed help. Because the pilots knew they were Southwest’s business partners, they didn’t call and ask, “Is it okay? Will I get reimbursed?” They led with LUV and created grateful, satisfied customers.

Leading with LUV is not soft management—it’s smart management. When you put positive relationships ahead of profits, you end up with an abundance of both.

Someone once said to my wife, “Margie, you’ve lived with Ken for almost fifty years. What do you think leadership is?”

Margie nailed it when she said, “Leadership IS love, it’s not about love.  It’s loving your mission, it’s loving your people, it’s loving your customers, and it’s loving yourself enough to let other people be magnificent.”

I couldn’t say it any better. So if you’re looking for satisfying, long-term success, remember: Leading with LUV is not about somebody else in some other organization. Leading with love is about you. So treat your colleagues and your customers like family, and Lead with LUV.

Here are a few other great things we’re doing around the book:

  • We opened a new webpage for people to learn more about how our company uses the Lead with LUV principles at www.leadwithluv.com. You can even watch Southwest’s fantastic corporate video!
  • Do you know someone who leads with LUV? There are two ways you can let the world know about it:
    • Go to our Lead with LUV page on HowWeLead and post your story in the comments section. Do you know of a great video like Southwest’s? You can even embed a YouTube video if you like!
    • Catch someone doing things right via Twitter. Use the hashtag #leadwithluv and post a quick Tweet about a friend or coworker who exhibits these great qualities.
  • Watch a video introduction by Colleen and myself, read the first chapter of the book, and learn more about leading with LUV at our book page.

Have a great day!

Here is a small sampling I really enjoyed from my book with Don Shula, Everyone’s A Coach.

The way managers treat people is powerfully influenced by what they expect of people. If a manager’s expectations are high, productivity is likely to be excellent. If expectations are low, productivity is likely to be poor. It is as though there were a natural law that caused a person’s performance to rise or fall to meet his or her manager’s expectations. My wife Margie has often said that one of the reasons she didn’t get into trouble when she was a young person was that she knew her parents expected the best of her and knew she would be a good role model for her younger sisters. She never wanted to let her parents down. Read the rest of this entry »

I just heard a very interesting theory about the Golden Rule, which is in almost every faith–you know, “Do unto others as you would have them do unto you.” It’s about loving your neighbor as much as you love yourself. This theory was that you can’t really love your neighbor if you don’t love yourself. If you don’t feel positive about yourself, then it’s pretty hard for you to reach out and be positive to other people.

Mahatma Gandhi said, “Be the change you want to see in the world.” There was a story about a woman who journeyed for miles with her son to have an audience with Gandhi. She said, “Would you help my son? He eats too much sugar.” And Gandhi told her to come back in a week. She couldn’t quite understand that, but they trekked all the way home and came back the next week. They then sat with Gandhi and he told her son to stop eating so much sugar. She said, “Why couldn’t you have told him that a week ago?” And Gandhi said, “Because I was eating too much sugar myself at that time.”  Ha!

The other thing that’s really interesting is that if you feel good about yourself, it makes other people around you feel good. And if they feel good, they send those vibes back to you and they kind of multiply. Norman Vincent Peale said, “Every day you have a choice. You can feel good about yourself or you can feel lousy. Why would you want to choose the latter?”  If you feel good about yourself, then you’re able to reach out and help others. Helping others is about happiness. The more we reach out and help other people, the happier we get. In fact, most of the time helping other people makes you feel better than if you were doing something for yourself.

So take care of yourself. If you do that, then you can take care of other people. It all starts at home. Confucius said, “It’s self, family, neighborhood, state.” If you want to create a great nation, a great state, you’ve got to start with yourself. So when you’re discouraged, remember that the change we want to see in the world has to begin with ourselves. Be good to yourself.

Make Sustainability a Part of Your Overall Corporate Strategy

A One Minute Interview with Anastasia Kellermann, co-founder of 2LEAD4US, a Netherlands-based consultancy and training company (part of Blanchard International Netherlands) that challenges and equips leaders to integrate sustainability strategies into their organizations.

Q. Can you tell me a little bit about the research that you are currently conducting?

A. Our research project has been focused on sustainability and what kind of leadership is necessary to integrate sustainability into companies. We started with this research in Holland and we are expanding it to other countries worldwide. We are looking to get a deeper insight into how companies are integrating sustainability into their day-to-day core business and what the role of leadership is in that process. We also wanted to identify best practices among some of the early adopters. Our goal is to use the information for publication in a future book with Ken Blanchard on sustainable leadership.

Q. When you use the term “sustainability,” what do you mean by that?

A. When I am talking about sustainability, I am referring to what I call the 4 Ps—Person, People, Planet, and Prosperity. In addition to environmental sustainability, I’m talking about all of the decisions people make that impact both their immediate environment and the environment far away. For example, if you buy a cup of coffee and it is made from fair trade then you are also having an impact on people who are in South America.

Another important aspect is what we call “prosperity.” And the distinction here is not only the profit of the organization in the short term but also the profit that we make in the long term. How can we take the current structure where we incentivize people “to make a really quick buck” and also take into account how that impacts the way that our organization is going to continue in the future?

Q. So what you’re talking about is how to create an organization that is socially responsible and that has a plan beyond just being in business for the short term.

A. Yes, if you look at business, you’ll see that no one really looks much farther than about five years. If we are able to look at least 10 years ahead then that already gives us a really different picture for the decisions that we make today. So, if we are able to look ahead 10 years, or 20 years, then we start making really different decisions. A lot of companies are not yet realizing that they will face huge talent shortages in a couple of years and that demographics are heavily influencing HR: aging/retiring workforce, lack of talent, Generation Y versus needs of older workers, etc. Some companies, however, have already adopted very smart workforce planning methods to address these challenges. Deloitte is one example. This is why we see a need for integrating sustainability in human resource management. And it is taking that perspective into account.

It’s true that you need to succeed in the short-term in order to even be able to get to the long term. But what we have done until now is focus just on the short-term, and not so much on what does that mean over a five-to-ten-year period.

Q. What motivated you to get started on this research project?

A. I’ve always been passionate about sustainability and I’ve been working on it for a long time. I have always wondered what triggers people to act sustainably, to take good care of the environment–or not? What causes us to make the decisions that we make, including what we choose to eat, how we clothe ourselves, and what kind of jobs that we take?

If we want to create a sustainable world where we are doing good for the environment, and for others, and in our own economic interest in both the short and long term, then how can we invite people to take a different role and to specifically take a different leadership role? That’s the basis behind the research: how can we trigger people to make that change so that they can think in terms of sustainability and not just focus on that short term?

I’ve always been looking for what kind of leadership is needed to make this change. I did a similar research project before in The Netherlands for 24 CEOs on sustainability. I wrote a book on it called The S Factor, A Personal Guide to Sustainable Leadership. And that is how this research started. From my original focus on the Netherlands, I wanted to see what is going on worldwide in terms of sustainability. Is it just a sort of “greenwashing” with a quick treatment in a sustainability report, or are companies actually integrating it into their day-to-day business? To what extent are they taking that longer-term perspective into account and translating it into their decision-making?

What drives certain companies and certain leaders to act sustainably while others do not? And we also wanted to find out, what are the success factors that make one leader do it, or what is in the system of the company that makes it possible? For example, if people are evaluated for taking sustainable decisions, then of course you’re going to get a different behavior within the company than if people are constantly evaluated on short-term decisions and don’t take the longer term into account.

We also wanted to get a picture of what kind of challenges companies are facing. I think that’s really relevant because a lot of companies are going through hard times during this economic crisis.

Q. So to summarize, you’re looking at the traits of leaders that adopt a sustainability mind-set, the factors that encourage a sustainability strategy, and the barriers that get in the way from organizations doing that.

A. Yes, and when we look at success factors we look at those different traits, behaviors, and mind-set which has a lot to do with leadership and then we’re also looking at what kind of systems you can put within your organization so that it makes it easier for that behavior to develop. Because you always have believers within organizations—those who believe in sustainability—along with a more skeptical group of people who need to be challenged to find new ways instead of doing things as usual.

We see a lot of similarity with change management in that you have a couple of people who really want to change and move on to something that has more to offer than the old system while there are always people who don’t want change and who want to keep things the way they have always been.

Put this against an economic background where we’re seeing so much happening around the world and companies are facing a lot of different factors coming into a play. So, there is the environmental issue, the economic issue, combined with what does the company want to do, and then of course all of the normal challenges with implementing any type of change within a company. And sustainability really asks you to fundamentally change a lot of things. We are using the research to identify the drivers for why companies would do this and the opportunities for these companies in the short and long term.

Q. What have you learned from the research project so far?

A. What we learned from the original Netherlands research is that the biggest drivers promoting sustainability are cost and efficiency, which is interesting. Most people would say that sustainability is more expensive, but among the companies we’ve worked with they see a lot of advantages in how sustainability can cut costs. For example, what we are all spending on energy bills could go down significantly if we are able to tap into alternative sources of energy—solar instead of oil, for example. So, that is a driver for a lot of people who maybe are not a believer in sustainability, but they are a believer in the bottom line.

What we’re also seeing is companies looking at sustainability as opportunities for new markets and new products. Look at the car industry, for example, and how much of that has been changed with the introduction of electric vehicles. It’s seen as a new market and it means investing. And you can see how all of the other car companies are now starting to follow the leaders to try and develop the best electric car that they can manufacture. We are seeing in China that they are moving towards sustainability, especially because of new markets and products.

That’s one of the surprises from the research. We originally thought that regulation might be the first reason why people choose to go on a path of sustainability, but I’ve found that the search for new markets is considered a bigger reason—at least in Holland—than regulations. Regulations are still a factor, but the new markets are even more of a trigger.

One other finding is that personal mission, among top leaders, but also among change agents in other parts of the organization, play a vital role. What we are seeing is people aligning their personal mission and finding a way to incorporate it into the sustainability story. People are also doing it for a certain sense of pride and the self esteem that comes from getting behind something you can be proud of.

Also being a preferred employer is another reason for a number of organizations to also embrace sustainability because you can get and attract highly qualified and motivated personnel—especially among some of the younger students that are coming from universities who are looking for a challenge. While they might not choose sustainability for purely idealistic motives, we are still seeing that some want to find some fulfillment in their work and sustainability can provide that fulfillment. It also gives them a challenge, something that they can get their teeth into, and to do things really differently than before. Also, the younger generation tends to be more conscious about social and environmental aspects and a better sense of work-life-balance. With regard to human resource management, we have found that these characteristics are addressed in companies that are frontrunners in sustainability and hence become preferred employers.

Q. Any final thoughts or advice for companies looking to integrate sustainability into their organization?

A. Align sustainability as much as possible with the core business and strategy of the organization and with the personal motivation of people. If you see sustainability as a side project, or as just as occasional volunteer work in the community, that is not really going to lead to sustainability being integrated within the organization. That is a great start, but it doesn’t fundamentally change the way that the organization does business. Sustainability is really asking us to think longer term and let it come back and impact what we are doing today instead of seeing it as something separate.

Would you like to learn more about this research project? You can contact Anastasia Kellermann at www.2lead4us.com  You can also meet Anastasia at this year’s Blanchard Summit 2010 where she will be a featured speaker.

Something that’s so important in changing organizations for the better is the whole concept of trust. As I’ve said before, trust and respect go together. There are some real trust issues that people are dealing with out there. Sometimes people are not sure that the leader necessarily respects them and seeks their opinions. The leader could even be making an effort to do that, but people may be suspicious because of past leaders. It’s so important. It doesn’t do you any good to be concerned or have an issue about something and not let the person working with you, or someone else, know about it, so something can be done about it. As the CEO of WD-40 Company, Garry Ridge, says, everything is a learning opportunity if it’s an issue we can learn from. So I hope you really listen to your people, respect them, and ask their opinions. Treat everyone you work with as teammates in this tough economic time, so you can trust each other and work together toward what you’re trying to accomplish. I love the old saying that there’s no “I” in TEAM, because it’s so true.

I’ve been reading a book by Mick Ukleja, who is one of my good buddies. It’s called The Ethics Challenge: Strengthening Your Integrity in a Greedy World. He says that one of the ways to keep your integrity high is to harness your moods. He says, interestingly, that a study of red-light violations shows a strong relationship between feeling under pressure and breaking the law. Forty-one percent of the people who go through red lights are doing it on their way to work or to school. But only nine percent of the red light violations were committed by people on vacation. He says, “A basic human frailty is that we allow our moods to master us rather than making sure we master them. You’re probably a lot like us. Sometimes we’ve known what to do, how to do it, and that we ought to do it, but we didn’t do it. You discover that your good intentions can be hijacked by your feelings. We speed through a red light, we cut off another driver, we procrastinate, we shut our minds to others because we’re in a bad mood. It’s easy, especially in pressure situations, to let our moods master us. So we really need to harness our moods. When you feel like you’re in a mood, go walk around the building. Go walk around your house. Get yourself back under control so that you can do what you know is right.”  So don’t be moody. And if you are, recognize it and get it back under control. That’s a good thought for today.

I recently had an interesting experience—I spoke to the Better Business Bureau of the whole Phoenix valley. Normally, you know, the BBB is a group that deals with whether businesses are doing the best practices. They started this night a number of years ago where they recognize companies in the area who are leading in an ethical, values-driven way. It’s become quite a prestigious thing. I got a chance to talk to them about The Power of Ethical Management, the book I did with Norman Vincent Peale. What I particularly like is catching people doing things right.

My own sense is that there are many good things happening in business that just don’t get publicized. You may think everybody is self-serving and doing everything for themselves—but that’s not really true. I think the number of people who are unethical and running businesses just for themselves is just a small percentage in comparison to the people who are doing it right. It was a real joy to be there and also to share with them our ethics check: Is it legal? Is it fair to all involved? How does it make you feel about yourself? Concepts like that. Being successful in business isn’t about perspective; it’s about both results and people, and that is so important to us. So it was an interesting night.

So you take care of yourself. Life is a very special occasion. Make sure you don’t miss it. You’re missing it if you think life’s all about you.

http://www.simple-talk.com/content/article.aspx?article=721

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