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Organizations That Toxic Leaders: Mission Versus Management a presentation brought to you by: Sherry Perkins Transform

Toxic Leaders

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The terms toxic leader, toxic manager, toxic culture, and toxic organization are receiving increasing levels of attention at business conferences and in literature on leader effectiveness. This session takes a broad look at the concept of toxic leadership, the potential causes, the environments that foster toxicity, the impact of toxic leadership on organizational effectiveness, and the actions organizations can take to thrive in toxic environments and transform them into healthy, thriving, and sustainable organizations.

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Page 1: Toxic Leaders

Organizations That

Toxic Leaders: Mission Versus Management

a presentation brought to you by:

Sherry Perkins

Transform

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www.profilesinternational.com ©2012 Profiles International, Inc. All rights reserved.

Sherry Perkins

•M.A. Organizational Development •30 Years Experience •Technology/Management/HR •Business Owner •Chair Waco WIB Alliance •SCORE Counselor •UOP Management Instructor

Vice President Enterprise Solutions

Consulting

imagine great people ®

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Who We Are

• Founded 1991 • Over 45,000 clients served worldwide • Offices in nearly 130 countries • Founding member of the Association of

Test Publishers • Microsoft Certified Partner

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We support our clients through the full employee life-cycle, helping them identify the best people for their jobs and then developing them to their fullest potential.

Creating Value for Clients

www.profilesinternational.com ©2012 Profiles International, Inc. All rights reserved.

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• 11,000 + active clients

• Client base includes 152 Fortune 2000 companies

• Represented in nearly 130 countries

Client Highlights

Financial Services Travel & Hospitality

Technology Healthcare Energy & Utilities

Education & Government

Business Services

Retail & Consumer Financial Services Travel & Hospitality

Technology Healthcare Energy & Utilities

Education & Government

Business Services

Retail & Consumer

Diverse Base of Marquee Clients

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Clients We’ve Served

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Today’s Topic

– Definition of Toxic Leadership – Signs and Symptoms – Environmental/Organizational Contributors

And Enablers that Foster Toxicity – Impact of Toxic Leadership on

Organizational Effectiveness – Strategies for Transforming Toxic

Leaders/Cultures

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Toxic Corporate Culture Signs and Symptoms? (Chat)

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A Workplace May Be Toxic If . . .

• Mediocre performance is rewarded over merit-based output (Colligan & Higgins, 2006, Doyle & Kleiner, 1993)

• Employees avoid disagreements with managers for fear of reprisal (Jones, 1996)

• Personal agendas take precedence over the long-term well-being of the company (Atkinson & Butcher, 2003)

• Leaders are constantly on edge and lose their tempers often (“Middle,” 2003)

• Employees are treated more like financial liabilities than assets (Macklem, 2005)

Gilbert, Carr-Ruffino, Ivancevich, & Konopaske (2012). Toxic versus cooperative behaviors at work: The role of organizational culture and leadership in creating community-community –centered organizations. International

Journal of Leadership Studies, 7 (1), 29-47. 3

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Toxicity

The degree to which a substance (a toxin or poison) can harm humans or animals. Usually upon repeated or continuous exposure, sometimes lasting for the entire life of the exposed organism.

http://www.medterms.com/script/main/art.asp?articlekey=34093 4

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Life Indicators

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Life Indicators

Take in Nutrients

Grow or Develop

Heal and Protect

From Further Injury

Reproduce/Replicate

Themselves

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Organizational Toxicity

Hinders

Reproductive Potential

Inhibits Healing

Stifles

Growth and Development

Blocks or Sabotages

Nutrition Process

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• Excessive Employee Monitoring • Micro-Management • Employee Bashing • Overly Demanding and Unreasonable • Unappreciative • Abuse of Power (Bullying/Exploitation) • Self-Serving • Questionable Ethics Gilbert, Carr-Ruffino, Ivancevich, & Konopaske (2012). Toxic versus cooperative behaviors at work: The role of organizational culture and leadership in creating community-community –centered organizations. International Journal of Leadership Studies, 7 (1), 29-47.

Toxic Leader Behaviors

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Life Indicators

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Organizational Toxicity

• Practice Morale Disengagement • Institutionalize Poor Business Practices • Create a “Smokescreen” or Diversion • Foster Groupthink/The Abilene Paradox

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0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Gallup Towers Perrin EEE

16% 19%

55% 64%

17% 29% Engaged

Neutral

Bitter

Source: The Gallup Organization, Towers Perrin and The New Employee/Employer Equation, The Concours Group and Age Wave, 2004

Random samples of the U.S. working population over 18 years of age

18%

62%

20%

What will your workforce profile look like?

Today, Few Employees Are ‘Engaged’ in Work

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Levels of Engagement

Highly Engaged Great Match

Fully Accountable Contagious Enthusiasm

Enthusiastic Pursuit of Goals Fully Committed

Pro-active

Engaged Supportive of Goals

Good Match Easily Motivated

Involved Focused

Understands Expectations Secure

Dis-engaged Fair Match

Not interested Questions Expectations

Avoids Participation Easily Distracted Apathetic, Aloof

Dissatisfied, Insecure

Highly Dis-engaged Poor Match Destructive Disruptive

Discourages Others Aggressive Resistance

Fearful, Bitter Does not Know Expectations

Levels of Engagement

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…a 51% Gap in Operating Income!

…a 39% Gap in Earnings per Share!

Source: Towers Perrin ‘Global Workforce Study’ (surveyed nearly 90,000 employees in 18 countries.)

…which equates to:

Engagement = Productivity & Profitability

…between high and low engagement organizations

Enhancing Your Leadership Charisma: A Step-by-Step Guide

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Enhancing Your Leadership Charisma: A Step-by-Step Guide

“…we  looked  at  fifty  global  companies  over  a  year,  correlating  employee  engagement levels with financial results...

The companies with high employee engagement had a in operating income and in earnings per share.

Conversely, companies with low levels of engagement saw

and earnings per

Engagement = Productivity & Profitability

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To Combat Toxicity?

What Can Organizations Do

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Team Tendencies that Counteract Toxicity Leverage Diverse Ideas

Diverse viewpoints can lead a team to better problem-solving.

• You may have team members with

various learning styles and problem-solving preferences.

• You’ll need to ensure they have

opportunities to make their perspectives known.

• Strong teams find ways to ensure that

their solutions reflect a multi-cultural, multi-valued influence.

16

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Team Tendencies that Counteract Toxicity Strengthen Communication Channels

There’s no substitute for understanding the innate behaviors of your team

members. • Encourage active listening and ensure influence

based on task-relevant knowledge rather than on status or personal dominance.

• Apply your skills as a leader and facilitator to moderate the group and ensure that people have adequate opportunities to contribute.

• Consider communication and learning styles.

• A formal assessment of skills and strengths is an effective, time-tested method.

How to Avoid the Seven Biggest Team-Building Blunders | 25 17

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Team Tendencies that Counteract Toxicity Encourage Collaboration

It is important to create an environment that allows team members to voice their

opinions in an open & honest manner. • Solicit the perspective of individual members • Get all sides of the story; Avoid Groupthink or the Abilene Paradox (Janis,1982; Harvey,1988)

• Weigh arguments to make a decision

• Establish data and metrics to help you make decisions

• Practice strategies for “Crucial Conversations” (Patterson, Grenny, McMillan & Switzler, 2002)

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A certain amount of conflict is healthy. • Encourage collaboration and educated risk-taking

• Set the right tone and the right reward structure

that prompts everyone to contribute

• Tolerate reasonable levels of ambiguity. Testing different approaches and taking smart risks is necessary for achieving the best result.

• Most importantly, you should use failure as an opportunity to dig deeper toward a solution.

How to Avoid the Seven Biggest Team-Building Blunders | 27

How to Avoid the Seven Biggest Team-Building Blunders

Failure to Establish Appropriate Norms

19

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PXT Team Culture

• How do we learn?

• How do we work?

• What do we enjoy?

• How will we collaborate?

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Team Balance Table

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Open-Systems Team Model (Pre-requisites)

Dr. Oscar Mink, Open Organization, 1979

Effective Communications

Clearly Understood Goals Member Authority and Accountability

Equal Reward for Team versus Individual Achievement

Decision Level at Lowest Level of

Competency

Members Who Are Capable and

Committed

Inspire Continuous Learning

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Argyris, C. (1978) Retrieved from http://www.google.com/imgres?imgurl =http://www.leadershipnow.com/leadingblog/images/Double-LoopLearning. . . Also http://www.infed.org/thinkers/argyris.htm.

Double-Loop Learning

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Don’t Punish Your Leaders – Prepare Them

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CheckPoint 360°TM Multi-Rater System

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Competencies & Skill Sets Communication: • Listens & Communicates Effectively • Processes Information

Leadership: • Instills Trust • Provides Direction & Delegation

Adaptability: • Adjusts to Circumstances • Thinks Creatively

Relationships: • Builds Personal Relationships • Facilitates Team Success

Task Management: • Works Efficiently • Works Competently

Production: • Takes Action • Achieves Results

Development of Others: • Cultivates Individual Talents • Motivates Successfully

Personal Development: • Displays Commitment • Seeks Improvement

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Executive Competency Overview

27

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Continued

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Survey Summary of the 70 Items

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Development Summary Overview

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CheckPoint 360°TM Management Report

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CP360 Management Report Cont.

• Working with Sally Sample

• Accountability Process

• A Process for the Manager to Follow in Using the Report for Coaching.

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CP360 Management Report Cont.

A Process for the Manager to Follow to

use the Report for Coaching.

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What Next??

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30-Day Challenge

Effectiveness

Analysis

Leadership

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Our Gift To You (Poll)

A Leadership Effectiveness Evaluation Includes: 1. Profile XT 2. Profiles Performance Indicator 3. Checkpoint 360 Survey

Would you Like to Receive a Free Leadership Effectiveness Evaluation?

1. Yes 2. No For You

36

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Questions?

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