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Joaquín Uríbarri
Mumbai • June 2013
How new science is changing the way we manage and leadThe coming behavioral revolution in leadership
Is global…… Is digital……
today’s world…
Is fast changing……
Is unpredictable……
today’s world…
the power of customers
Freeze upon decisions
Brain saturation
Intuition vs. Information
Information jugglers
RegretInstant responses
vs. quality & accuracy
Errors, frustration,
anxiety
Decision making abilities
A digital world impact
information overload
the reality of today’s managers
Uncertainty Ambiguity
New Leadership required
Fast changing
Digital impact
Globalization
How can employee engagement be increased?
How can teams achieve higher performance?
How should managers deal with uncertainty?
How do managers really motivate others to change?
How can top employees be retained?
What factors really drive customer satisfaction?
How can management decision making be improved?
BEHAVIORNEED TO UNDERSTAND
IT
issues for companies
is leadership working?
21%
41%
38%
Disengaged or Disenchanted
Fully Engaged
Employees not fully engaged in their work
Partially Engaged
Source: Towers Perrin Global Workforce Study (2007/08)
Gallup: The cost of employee disengagement £32 billion in the UK • €100 billion in France • $370 billion in USA
agendaPositive Leadership
Positive Psychology
Tuning-Up Mindware
Harnessing Strengths
Final Thoughts / Wrap Up
1
2
Positive Psychology
positive psychology
Positive Psychology
ClinicalPsychology
Ok Good Great Extraordinary
Illness
Difficulty
Human Performance
Fixing Problems
Optimizing Performance
Psychological Healing
Psychological Fitness
from strong to extraordinary
Positive Psychology …Identifying the factors that drive greatness.…Training people to perform at their best.
Positive Leadership…Positive psychology applied to managers and their teams.…Science of driving results, by optimizing behavior.
Tuning-Up Mindware
big leadership situations
low frequency, major impact
“Closed the plant and
moved production
overseas”
“Redesigned the customer
relations management
system”
“Developed the strategy that
put us on the track to
success”
moments of truthhigh frequency, with subtle and cumulative
impact
“Changed format of
weekly marketing
meeting”
“Got past emotions, chose
influence tactic that convinced ___
to support the change.”
“Decided to bring an
outsider into the design
process”
“Pushed the team to
adopt promotion
campaign A, not B”
Emotional System*
mindware
Whiteboard
Controller
Attention
Hard Drive
* Gospik, Mohlin, et al ( 2011), PLoS Biology
Try it: Elephant
IMAGINE
Whiteboard Test
Whiteboard Test
FASGMECOVKPWX
Whiteboard Test
Q: How did it go?
F A S G M E C O V K P W X
Cognitive Control Test
say the wordsBlue
Green
Yellow
Red
Yellow
Yellow
Green
Blue
Red
Green
Blue
Red
Green
Yellow
Blue
Green
say the colors******
******
******
******
******
******
******
******
******
******
******
******
******
******
******
******
say the colorsBlue
Green
Yellow
Red
Yellow
Yellow
Green
Blue
Red
Green
Blue
Red
Green
Yellow
Blue
Green
married and lookingStefan is looking at Ana...
…but Ana is looking at George.
Stefan is married, George is not.
Q: Is a married personLooking at
an unmarried person?
Stanovich, Toplak & West (Winter, 2010), Rotman Magazine.
correct answer?Is a married person looking at a unmarried person?
Yes
No
Can't
Det
erm
ine
10% 7%
83%
Typical Group
% R
esp
on
den
ts
Stefan(married
)
Ana
(?)George
(unmarried)
situation: the words we useHow long was the last movie you saw?
short
"Long" "Short"80
90
100
110
120
Min
ute
s
(avg
)
Mode: 120
Mode: 90
Emotional System
Sneaky
mindwarethe basis of our
thinking
Whiteboard
Controller
Spotlight
Hard DriveLow Power
+ hard to move
Noisy
Too Small
Loses Control
+ poor multi-t
asking
Cognitive Limitations
Not only ……..
But we also
have……..
Limited
control over our
reflexive behaviors
judgments about peoplereflexive reactions
emotions…
+
reflexive behaviors
33
Defaults that worked in World 0.0
…don’t always work now.
reflexes and riskGiven €1000
Get €500 more, for sure.
Get €1000 or €0 (50/50%)
Given €2000Give up €500 for sure.
Give up €1000 or €0 (50/50%)
A
B
A
B
reflexes and risk
Sure Thing
Risky Bet
94%
6%% P
art
ic-
ipan
ts
Sure Thing
Risky Bet
28%
72%
% P
art
icip
an
ts
Getting More
Giving Up
wired for negativesimple finding, worth a Nobel Prize
36
GainLoss
Pleasure
+500
-500
Pain
moving reference
Negatives hurt
2-3x as much
as positives please.Employee Feedback?
Source: Kahneman & Tversky (1979), Econometrica.
Costs
moment of truth
Costs
Benefits
BENEFITS• Often delayed• Often less certain• Often harder to
“simulate”• Often less quantifiable
COSTS• Often immediate• Often certain• Often easy to “simulate”• Often easy to quantify
2-3x(psychological
multiplier)
Your Proposal
Trend
impact on behavior1
2
3
learn to identify moments of truthgreater awareness provides foundation for doing better.
better understand reflexive behaviorsdesign teams, work processes to maximize use of strengths.
tune and train mindwaremindfulness, self-regulation, practical exercises.
4 shift from reflexive to effective behaviorsleveraging science of habit formation and change.
Harnessing Strengths
…it’s a science
strengthsbraverycreativity
caution curiosityfairness
gratitudefuture-mindedness
teamwork
authenticity
humility
open-mindednesskindness energyperseveranceappreciation of excellence
forgiveness
humorlearningperspectivecommand
self-regulationsocial-intelligencepurpose
return on development
what research is showing
Series1 Development Ef-
fort
Perf
orm
an
ce
WeaknessTrajectory
StrengthTrajectory
change in emphasisStrengths• Identify (there are
tools)• Develop• Maximize use• Don’t over-use
Weaknesses• Identify• Accept• Develop to minimum required
Learn to use strengths…
… to work around weaknesses.
examplesWho: Toyota's North American Parts Centre
Fact: 400 employees went through strengths-based interventions: 1-year later, per-person-productivity at the warehouse increased by 6% (normal variation 1%)
Connelly, 2002 Who: Wachovia Bank
Fact: Increase in performance of 13% with a group of employees who they positively engaged in the purpose of the Bank vs. a control group who wasn’t positively motivated.
Harter & Schmidt, 2002 Who: Zappos.com
Fact: Implemented positive management approaches , became “Top 25 companies to work for” (Fortune) , reached $1b sales target, acquired by Amazon
Financial Times,2011
impactEmployees engaged, positiveFact: Productivity 31% greater.
Fact: Sales 37% higher.
Fact: Take 56% fewer sick days.
Companies focusing on strengthsFact: Stores scoring higher on EE satisfaction add $21/sq.ft in
earnings than other stores.
Fact: 75% engaged employees believe can improve cost/quality/Service vs. only 25% for disengaged employees .
Fact: Companies in “Best Companies to Work For”, profits 315%.
power of strengths
they produce well-being, and performance
feel more positive
become more engaged
develop deeper relationships
experience greater meaning
feel more accomplished
PERMA
achieve extraordinary results
win-winPsychological well-being of employees
Financial well-being of the company
across levelsTransforming Leadership
Individuals
TeamsWorkplace
Final Thoughts / Wrap Up
positive leadershiprecognize moments of truth
better understand behaviortrain mindwareshift to more effective behaviorsfocus on positive developmentarchitect teams, functions, organization
… to allow people to perform at their peak.
positive executive education
Behavioral Decision Making Managing Ambiguity & Uncertainty Developing Individual Strengths Positive Methods for High Performing Teams Positive Approaches to Innovation &
Creativity Psychology of Leadership & Change …others.
Translating science…
…into practical training for managers.