4 LeadershipRunAmok
4 LeadershipRunAmok
org
                                    Reprint R0606D
                                                                                                                              If you believe too many executives think, “It’s all about me,” you’re
                                                                                                                              right: Research shows that an ethos celebrating individual
                                                                                                                              achievement has been shoving aside other motivations, such as the
                                                                                                                              drive to empower people, that are essential for successful leadership.
                                                                                                                              The desire to achieve is a major source of        nicate crucial information, and they may be
                                                                                                                              strength in business, both for individual man-    oblivious to the concerns of others. Their
                                                                                                                              agers and for the organizations they lead. It     teams’ performance begins to suffer, and they
COPYRIGHT © 2006 HARVARD BUSINESS SCHOOL PUBLISHING CORPORATION. ALL RIGHTS RESERVED.
                                                                                                                              generates passion and energy, which fuel          risk missing the very goals that initially trig-
                                                                                                                              growth and help companies sustain perfor-         gered the achievement-oriented behavior.
                                                                                                                              mance over the long term. And the achieve-           Too intense a focus on achievement can de-
                                                                                                                              ment drive is on the rise. We’ve spent 35 years   molish trust and undermine morale, measur-
                                                                                                                              assessing executive motivation, and we’ve         ably reducing workplace productivity and
                                                                                                                              seen a steady increase during the past decade     eroding confidence in management, both in-
                                                                                                                              in the number of managers for whom achieve-       side and outside the corporation. While profits
                                                                                                                              ment is the primary motive. Businesses have       and innovation have risen during the past de-
                                                                                                                              benefited from this trend: Productivity has        cade, public trust in big business has slid. In
                                                                                                                              risen, and innovation, as measured by the         our executive coaching practice, we’ve seen
                                                                                                                              number of patents issued per year, has soared.    very talented leaders crash and burn as they
                                                                                                                                 In the short term, through sheer drive and     put ever more pressure on their employees and
                                                                                                                              determination, overachieving leaders may be       themselves to produce.
                                                                                                                              very successful, but there’s a dark side to the      At the extreme are leaders like Enron’s Jef-
                                                                                                                              achievement motive. By relentlessly focusing      frey Skilling, a classic overachiever by most
                                                                                                                              on tasks and goals—revenue or sales targets,      accounts, driven by results regardless of how
                                                                                                                              say—an executive or company can, over time,       they were achieved. He pitted manager
                                                                                                                              damage performance. Overachievers tend to         against manager and once even praised an ex-
                                                                                                                              command and coerce, rather than coach and         ecutive who went behind his back to create a
                                                                                                                              collaborate, thus stifling subordinates. They      service he had forbidden her to develop. For
                                                                                                                              take frequent shortcuts and forget to commu-      every Skilling, there are dozens of overachiev-
                                        ing managers who don’t make headlines but              David McClelland, the late Harvard psychol-
                                        do cause significant harm. Consider Frank, a         ogist, spent much of his career studying moti-
                                        confident, results-oriented CEO of a large           vation and how it affects leadership behavior.
                                        electronics manufacturer. He was so single-         He identified achievement—meeting or ex-
                                        minded in his drive to achieve that he ran          ceeding a standard of excellence or improving
                                        roughshod over the rest of the management           personal performance—as one of three inter-
                                        team. He was arrogant, aloof, and demand-           nal drivers (he called them “social motives”)
                                        ing, and he never listened. In fewer than four      that explain how we behave. The other two
                                        years, with the company in disarray and mem-        are affiliation—maintaining close personal
                                        bers of his senior leadership team threatening      relationships—and power, which involves
                                        to leave, he was fired.                              being strong and influencing or having an im-
                                           Even if a narrow focus on achievement            pact on others. He said the power motive
                                        doesn’t get an executive fired, it can stall a ca-   comes in two forms: personalized—the leader
                                        reer. Jan, a brilliant lawyer, was a partner and    draws strength from controlling others and
                                        the heir apparent in a large New York law firm.      making them feel weak; and socialized—the
                                        But she could be mean-spirited. She didn’t tol-     leader’s strength comes from empowering peo-
                                        erate colleagues who seemed less driven than        ple. Studies show that great charismatic lead-
                                        she was, she treated subordinates in a demean-      ers are highly motivated by socialized power;
                                        ing manner, and she chewed up junior associ-        personalized power is often associated with
                                        ates at a record pace. Opinions about her           the exploitation of subordinates. (See the ex-
                                        began to sour in the firm, and ultimately she        hibit “What’s Your Motivation?”)
                                        was shuffled off to a small satellite office to          McClelland’s research showed that all three
                                        work—usually alone—on special cases. Al-            motives are present to some extent in every-
                                        though she continued to woo clients and win         one. Although we are not usually conscious of
                                        cases, she never rose any further.                  them, they give rise in us to needs and con-
                                           On the surface, controlling achievement          cerns that lead to certain behaviors. Meeting
                                        overdrive sounds like Management 101: Be less       those needs gives us a sense of satisfaction and
                                        coercive and more collaborative. Influence           energizes us, so we keep repeating the behav-
                                        rather than direct. Focus more on people and        iors, whether or not they result in the out-
                                        less on numbers and results. Easy to say, diffi-     comes we desire.
                                        cult to master. Experienced, successful execu-         McClelland initially believed that of the
                                        tives who should know better fall into over-        three motives, achievement was the most criti-
                                        achievement mode again and again. In this           cal to organizational, even national, success. In
                                        article, we’ll offer ways for managers to iden-     The Achieving Society, his seminal study on the
                                        tify achievement overdrive in themselves and        subject, first published in 1961, he reported
                                        others and keep the destructive aspects in          that a high concern with achievement within a
                                        check. But first, let’s look at the achievement      country was followed by rapid national
                                        motive and see how it affects the workplace.        growth, while a drop led to a decline in eco-
                                                                                            nomic welfare. In another study, he reported a
                                        The Growing Drive to Achieve                        direct correlation between the number of pat-
                                        The drive to achieve is tough to resist. Most       ents generated in a country and the level of
                                        people in Western cultures are taught from          achievement as a motivation.
Scott W. Spreier (Scott_Spreier@        early childhood to value achievement. For              But McClelland also recognized the down-
haygroup.com) is a senior consultant    some people, the drive seems innate: They           side of achievement: the tendencies to cheat
in Hay Group’s McClelland Center for    don’t just know achievement is important, they      and cut corners and to leave people out of the
Research and Innovation in Boston.      feel it. Accomplishment is a natural high for       loop. Some high achievers “are so fixated on
Mary H. Fontaine (Mary_Fontaine@        them. Just ask admitted overachiever Karin          finding a shortcut to the goal,” he noted, “that
haygroup.com) is a vice president and   Mayhew, who is senior vice president of organi-     they may not be too particular about the
the managing director of Global Tal-    zation effectiveness for Health Net, a large        means they use to reach it.” In later work, he
ent and Leadership Services for Hay     managed-care company. “I start to feel really       argued that the most effective leaders were
Group in Boston. Ruth L. Malloy         good,” she says of those moments when her           primarily motivated by socialized power:
(Ruth_Malloy@haygroup.com) is the       achievement drive kicks into high gear and she      They channeled their efforts into helping oth-
director of research and technology     feels a mounting sense of accomplishment. At        ers be successful.
at the McClelland Center.               such times, she says, she is excited and happy.        We have continued McClelland’s research
          When this       Improve their personal    Maintain close, friendly    Be strong and influence        Help people feel stronger
          motive is       performance and meet      relationships               others, making them           and more capable
          aroused in      or exceed standards of                                feel weak
          them, leaders   excellence
          experience a
          need to:
          As a result,    Meet or surpass a         Establish, restore,         Perform powerful actions      Perform powerful actions
          they wish to:   self-imposed standard     or maintain warm
                                                    relationships
                          Plan the long-term        Participate in group        Impress people inside or      Impress people inside or
                          advancement of their      activities, primarily for   outside the company           outside the company
                          careers                   social reasons
                                                                                Generate strong positive      Generate strong positive
                                                                                or negative emotions in       emotions in others
                                                                                others
          These           Micromanage               Avoid confrontation         Be coercive and ruthless      Coach and teach
          aspirations
          lead them to:   Try to do things or set   Worry more about people     Control or manipulate         Be democratic and
                          the pace themselves       than performance            others                        involve others
                          Express impatience with   Look for ways to create     Manage up — that is, focus    Be highly supportive
                          poor performers           harmony                     more on making a good im-
                                                                                pression than on managing
                                                                                their subordinates
                          Give little positive      Avoid giving negative       Look out for their own        Focus on the team or group
                          feedback                  feedback                    interests and reputations     rather than themselves
                                          and assessment of managers’ and executives’         ing, and cutting corners. Organizational perfor-
                                          motives (we have amassed data on more than          mance and innovation improved, as can be
                                          40,000 people). We show people a series of          seen in the advance of the stock market and
                                          pictures and ask them to write a story about        the number of U.S. patents. But there was also
                                          each. Experts score the stories for imagery         a lapse in business ethics, and, as a result, more
                                          that indicates the presence and strength of         high-profile scandals and reduced public trust
                                          one or more of the motives. Beginning in the        in big corporations. (See the exhibit “So Is Cre-
                                          mid-1990s, achievement scores began rising          ativity, But....”)
                                          dramatically, while the power drive declined
                                          and affiliation stayed more or less steady. (See     The Six Styles of Leadership
                                          the exhibit “Achievement Is on the Rise.”)          Despite the advantages of an achievement
                                             We can’t say definitively what triggered the      mentality, executives who are overly moti-
                                          increase in achievement scores, but we believe      vated to achieve can weaken a company’s or
                                          it was driven by the organizational, market,        group’s working climate and in turn its ability
                                          and economic forces that were in play. The          to perform well. That’s because a leader’s mo-
                                          quality movement of the 1980s, for example,         tives affect the way he or she leads. In our re-
                                          with its emphasis on continuous improvement,        search over the years, we’ve identified six
                                          no doubt enhanced the value of high achiev-         styles of leadership that managers and execu-
                                          ers, who by nature want to continually im-          tives use to motivate, reward, direct, and de-
                                          prove. Then came recession and downsizing,          velop others. These are directive, which entails
                                          which brought an increased emphasis on              strong, sometimes coercive behavior; vision-
                                          short-term performance and growth. Again,           ary, which focuses on clarity and communica-
                                          both goals were a perfect fit for high achievers,    tion; affiliative, which emphasizes harmony
                                          who revel in the need for personal heroics and      and relationships; participative, which is col-
                                          the challenge of an ever-rising performance bar.    laborative and democratic; pacesetting, which
                                          Finally, the dot-com era transformed a large num-   is characterized by personal heroics; and
                                          ber of innovators and entrepreneurs—who             coaching, which focuses on long-term develop-
                                          tend to be highly motivated by achievement—         ment and mentoring. (See the sidebar “The
                                          into managers and executives.                       Right Leadership Style…Creates a Strong
                                             Whatever the cause, the rise in scores coin-     Work Climate.”)
                                          cided with increases in several of McClelland’s        There is no one best style of leadership. Each
                                          other indicators of high achievement—in par-        has its strengths and its limits. The directive ap-
                                          ticular, economic growth, innovation, cheat-        proach, for instance, is useful in crises or when
                                                                                              a leader must manage a poor performer, but
                                                                                              overuse stifles initiative and innovation. The
                                                                                              affiliative approach is appropriate in certain
                                                                                              high-stress situations or when employees are
Achievement Is on the Rise                                                                    beset by personal crises, but it is most effective
We’ve seen a steady increase in the de-      The affiliation motive has remained               when used in conjunction with the visionary,
gree to which achievement is a motive        fairly level. (The lines show average mo-        participative, or coaching styles. Pacesetting
for managers and executives, while           tive scores.)                                    can get results in the short term, but it’s de-
power as a motivation has dropped.                                                            moralizing to employees and exhausting for ev-
                                                                                              eryone over the long haul.
                                                                                                 The most effective leaders are adept at all six
                                                                                              leadership styles and use each when appropri-
                                                             Achievement                      ate. Typically, however, a manager defaults to
                                                                                              the styles he or she is most comfortable using,
                                                                                              a preference that reflects the person’s domi-
                                                                                              nant motive combined with the level of pres-
                                                             Affiliation
                                                                                              sure in the workplace. People motivated
                                                                                              mainly by achievement tend to favor paceset-
                                                             Power
                                                                                              ting in low-pressure situations but to become
                                                                                              directive when the pressure is on.
               1988                                   2005                                       Jan, the achievement-driven lawyer, tried
                                              to involve herself in every detail of her client    When Luke learned that a subordinate who
                                              work. She was never satisfied with others on         disagreed with him about a critical business de-
                                              her team and continually second-guessed             cision had done an end run and was planning
                                              them. She rewrote perfectly good reports,           to speak to the chairman, Luke didn’t react an-
                                              claiming they didn’t quite meet her stan-           grily, as most people would. Instead, he offered
                                              dards. As the pressure and work mounted,            to coach the subordinate on how to effectively
                                              she became even more demanding and con-             approach his meeting with the chairman. He
                                              trolling, confronting others and accusing           was able to put aside the personal aspect of the
                                              them of incompetence.                               situation and consider the big picture. As Luke
                                                 It’s not surprising that such pacesetting and    told us: “I didn’t want him to hurt himself any
                                              coercion have been shown to suppress work-          more than he had already. I wanted him to
                                              climate attributes that contribute to high per-     learn, to benefit, to grow. I don’t know—
                                              formance, including flexibility, responsibility,     maybe he can have my job some day.”
                                              team commitment, and the extent to which               To look at how motives and leadership style
                                              feedback and rewards are linked to perfor-          affect a group’s climate and performance, we
                                              mance. People high in socialized power, by          studied 21 senior managers at IBM. All led
                                              contrast, naturally gravitate to coaching in low-   teams responsible for large global accounts
                                              stress situations and become visionary under        with multimillion-dollar revenue targets. We
                                              pressure. Consider Luke, a senior executive we      assessed each manager using a set of six at-
                                              worked with who is known for his mentoring.         tributes of a high-performing climate, such as
                                                                                                  flexibility and clarity. Eleven of the managers
                                                                                                  created climates that were seen by their direct
                                                                                                  reports as strong or energizing. The other man-
So Is Creativity, But…                                                                            agers created climates that were perceived by
                                                                                                  their reports as neutral or demotivating. In just
As the achievement drive has risen                at the same time, public trust in big cor-
                                                                                                  one year, the teams with strong or energizing
among managers and executives, so has             porations has sunk as the relentless
                                                                                                  climates generated $711 million more in profit
the level of innovation, as measured by           focus on results has led to unsavory be-
                                                                                                  than did those with neutral or poor climates.
the number of U.S. patents issued. But            havior on the part of some executives.
                                                                                                  Achievement was the dominant driver for all
                                                                                                  21 of these leaders. But the managers who cre-
                                                                                                  ated strong or energizing climates also had far
                                                                       Patents 189, 536
                                                                                                  higher scores in both power and affiliation
                                                                                                  than the other leaders. (See the exhibit “Pro-
                                                                                                  files of Successful Leaders.”)
                                                                                                     Among the leaders who created neutral
                                                                                                  or demotivating climates, the dominant
                                                                                                  style was pacesetting, which can drive short-
                                                                                                  term growth, but at the expense of long-
                                                                                                  term profitability. In fact, the teams with
           68, 315
                                                                                                  weaker climates did produce more short-
                 1987   1989 1991 1993 1995 1997 1999 2001 2003                                   term revenue growth than the others. But most
                 Source: U.S. Patent and Trademark Office
                                                                                                  of it came about through personal heroics—
                                                                                                  leaders going out and doing deals them-
                                                                                                  selves rather than building their organiza-
                                                                                                  tions. The leaders who created high-performing
                                                                       Percentage
                                                                       of survey                  and energizing climates got more lasting re-
                                                                       respondents                sults by using a broad range of styles, choos-
                                         11                            expressing a
                                                                       great deal of              ing different styles for different circum-
                                                                       confidence in              stances. They were strong in the visionary,
                                                                       big business
                                                                                                  affiliative, participative, and coaching styles,
                                                                       7
                                                                                                  relying least on the directive and pace-
                                           1997   1999   2001   2003                              setting approaches. Rather than order peo-
                 Source: Roper Center for Public Opinion Research,
                                                                                                  ple around or rely on personal heroics, they
                 University of Connecticut                                                        provided vision, sought buy-in and commit
                                       ment, and coached their people. They were                      people understand the big picture and see how
                                       also more collaborative, building consensus                    the pieces might fit together.
                                       among those they led.                                             Often, it takes a nudge from someone to get
                                                                                                      the transformation moving. Consider Rooney
                                       Recognizing Your Motives                                       Anand, CEO of Greene King, one of the UK’s
                                       The good news about achievers is that when                     most successful brewing and pub companies.
                                       given a goal, they pull out all the stops to                   As a young marketing manager in an organiza-
                                       reach it—even if the goal is to manage their                   tion that put a premium on results, Anand
                                       achievement drive. For an overachiever seek-                   found himself becoming increasingly aggres-
                                       ing to broaden his or her range, the first step is              sive and demanding. He saw the need to
                                       to become aware of how motives influence                        change when a fellow manager said to him,
                                       leadership style.                                              “I’ve met your type before. Normally they’re
                                          Karin Mayhew, the Health Net executive, is                  not very nice people. But you’re actually a
                                       a pacesetting manager by nature. She didn’t                    great bloke when you’re not working. So what
                                       understand the value of influencing others                      is your problem?” Family and friends may also
                                       (rather than doing everything herself) until, as               let you know; our motives, after all, don’t shut
                                       an internal consultant for a telecommunica-                    down when we leave work.
                                       tions firm, she was asked to facilitate discus-                    If you’re seeking to assess yourself as a man-
                                       sions between management and labor. For                        ager, there are calibrated tools for measuring the
                                       once, she had to be invisible. Forced to bite her              three leadership motives, but you can get a good
                                       tongue, she perceived that she could step out                  sense of which drive is dominant in you simply
                                       of the role of content expert and help other                   by examining the activities you like and why.
Directive 26 45
Visionary 80 40
Affiliative 76 41
Participative 71 46
Pacesetting 48 75
Coaching 71 40
                                         • People with high achievement drives              McAlister’s solutions were often well
                                      tend to like challenging projects that allow       founded. He stayed ahead of the industry’s in-
                                      them to accomplish something new. It may be        formation curve, regularly rising before dawn
                                      as simple as stamp collecting or as difficult as    to study the latest market trends. But by al-
                                      getting a PhD in history. One executive we’re      ways providing the answers, he stifled the
                                      working with is spending all of his spare time     input and creativity of his team members. He
                                      training for a spot on a Senior Olympics swim      didn’t realize this until his manager told him.
                                      team. They also like to outperform people          In classic achievement mode, McAlister in-
                                      who represent a high standard of excellence.       stantly turned his energy toward transforming
                                      Achievers tend to be utilitarian in their com-     his leadership. With the help of a coach, he
                                      munication—often brief and to the point.           began studying his own actions, trying to de-
                                         • Those high in affiliation are energized by     termine why he behaved as he did. He also
                                      personal relationships. They like to spend time    monitored his behavior with his team, peers,
                                      with family and friends and are attracted to       and manager, asking them to give honest feed-
                                      group activities, largely for the opportunities    back. Much of what he learned was unex-
                                      to build relationships. They make heavy use of     pected and, initially, difficult to swallow. At
                                      the phone and e-mail just to stay connected.       one point, he was describing his daily routine.
                                         • People mainly motivated by personalized       A deeply spiritual man, McAlister spoke of tak-
                                      power need to feel strong and to be seen as        ing time each day for prayer. When he was
                                      important. They tend to be driven by status        asked how much time he spent talking to God
                                      and image. They often seek status symbols          and how much time listening, he realized that
                                      (the right car, neighborhood, clothes) and en-     even in his spiritual life he was focused on his
                                      gage in prestigious activities (dining at the      own agenda. “Of course,” he groaned, “I’m al-
We’ve seen very talented              right club with the right circle of friends).      ways talking.”
                                         • Individuals mainly driven by socialized          Next, he adopted specific new behaviors.
leaders crash and burn                power enjoy making a positive impact. They         Rather than issue a set of directives on sales
                                      get satisfaction from helping people feel stron-   targets, for instance, he engaged his team in a
as they put ever more                 ger and more capable; they’re often energized      discussion of how to achieve the goals. He
pressure on their                     by team activities. They like to advise and as-    consciously tried to listen and not jump to
                                      sist, whether or not the advice is wanted or       conclusions—a continuing struggle, though
employees and                         needed. Such people are often attracted to         the behavior is becoming more natural with
themselves to produce.                teaching or politics and tend to be charismatic    time and practice. He still slides into paceset-
                                      leaders.                                           ting from time to time. When a sales rep e-
                                                                                         mailed him about closing on an important
                                      Managing and Exercising Your                       new contract, an excited McAlister fired back
                                      Motives                                            with a list of the next steps she should imme-
                                      Even trickier and more important than recog-       diately take. It was only after he’d hit the
                                      nizing an overactive drive to achieve is figur-     “send” key that he realized his error. “I’d just
                                      ing out how to channel that drive into new be-     laid out the plan instead of coaching her,” he
                                      haviors and continually practice them until        said. The new McAlister took steps to set
                                      they become almost second nature. Dean             things right: He quickly sent a second mes-
                                      McAlister, a senior pharmaceuticals sales di-      sage, congratulating her and telling her to
                                      rector with AstraZeneca, found himself pro-        come up with her own plan. It’s a testament
                                      moted to a management position early in his        to his shift in behavior that his team recently
                                      career. Like Greene King’s Anand, he was tal-      was honored for being the first region to at-
                                      ented, sincere, and hardworking, and at times      tain market leadership with three of Astra-
                                      he drove people crazy. While he took pride in      Zeneca’s top drugs.
                                      his high-achievement approach, others saw             Like McAlister, Anand also still works to
                                      him as arrogant, impatient, and manipulative.      be aware of his achievement drive and to
                                      “Dean was known for his 3 AM e-mails,” said        consciously change his behavior when it
                                      one colleague. “That was his normal pace—          starts to overtake him. For example, he had a
                                      everything was a priority.” Said another: “He      habit of challenging people during meetings.
                                      outlined a problem, and before we could dis-       “My passion and desire to sort problems out,
                                      cuss it, he solved it himself.”                    to rectify things, still kicks in,” he says. “As a
                                      result of my behavior, the team becomes             company into a flatter, matrix-driven organiza-
                                      cranky or shuts down. It’s taken me quite a         tion, he sought managers who would orches-
                                      long time to learn.” So now he’ll often re-         trate and enable rather than command and
                                      frain from saying what’s on his mind, but           control. He knew IBM needed to move away
                                      he’ll make a note to take up the matter after       from its culture of personal heroics and indi-
                                      the meeting. With time and effort, he says,         vidual achievement and begin valuing social-
                                      episodes of achievement overdrive have be-          ized power and managers who pay attention to
                                      come less and less frequent for him.                the greater needs of the company.
                                         Karin Mayhew has consciously chosen to              As part of that transformation, we assessed
                                      limit her comments on an idea to a couple of        the motives and leadership styles of 2,000 IBM
                                      minutes or less and tries to put them in the        managers, including the top 300 leaders. We
                                      context of the organization and business. She       found an achievement-oriented culture in
                                      has also trained herself to ask a lot of open-      which executives focused on their own depart-
                                      ended questions (”How can I help?”) in an ef-       ments or divisions, even if doing so had a nega-
                                      fort to draw people into the conversation. “I’ve    tive impact on performance in other parts of
                                      learned to find my ‘pause’ button and drive the      the organization. Their client focus, too, was
                                      agenda by asking questions and having others        achievement driven: Managers often found
                                      take the lead,” she says.                           themselves devoting more time and energy to
                                         Another trick is to look to other areas of       making the sale than understanding the cus-
                                      your life to satisfy your achievement drive.        tomer’s needs. The dominant leadership style,
                                      One executive, recognizing that his need to         which reflected this emphasis on individual
                                      succeed was getting in the way of his effective-    achievement, was pacesetting, and the climate
                                      ness at work, refocused his drive on building       lacked a number of the attributes that contrib-
The good news about                   violins at home on the weekends. Of course, he      ute to high performance, especially in the
                                      didn’t just turn out run-of-the-mill instru-        areas of flexibility, rewards, clarity, and, most
achievers is that when                ments; his were exquisite pieces of art, one of     notably, team commitment.
                                      which was played by a friend in the Boston             Among the executives we interviewed, how-
given a goal, they pull               Symphony. Another executive turned to restor-       ever, was a small but highly successful group
out all the stops—even if             ing antique sports cars.                            that led very differently. They exhibited a drive
                                         Mayhew now channels her achievement              to achieve, but they worked through others,
the goal is to manage                 drive toward her home and family. She regu-         created strong teams, provided coaching, and
their achievement drive.              larly prepares elaborate, multicourse Sunday        focused on increasing the capability of the
                                      night dinners. Although these events are a          whole organization, not just their depart-
                                      great deal of work, she finds the dinners exhila-    ments. IBM incorporated these behaviors into
                                      rating and energizing, and the effort gives her     a competency model that over the next eight
                                      a sense of satisfaction in what she’s achieved, a   years was used to select, develop, and promote
                                      tonic for the coming workweek.                      leaders. The company also created a group to
                                                                                          develop and coach managers and executives in
                                      Changing the Culture                                the desired new behaviors. More important,
                                      While behavior is the responsibility of the in-     Gerstner and his team used everything from
                                      dividual, organizations play a role, if some-       public praise to stock options to reward the
                                      times unintentionally, in influencing execu-         new behaviors.
                                      tives’ actions. Some companies unabashedly             Two years ago, when we returned to assist
                                      create cultures that foster and reward the          IBM in recalibrating the competency model,
                                      achievement-at-all-costs mentality. Most or-        we found a very different leadership culture.
                                      ganizations are less calculating; they simply       Gone was the combative, turf protecting, isola-
                                      select and promote high achievers for their         tionist attitude. In its place was an emerging
                                      obvious assets, let nature take its course, and     culture of collaboration and team leadership—
                                      then look the other way as long as the num-         a culture that balanced influencing and help-
                                      bers are good.                                      ing others with the drive to achieve. Although
                                         But companies can redirect their focus and       the motives of the leaders had not changed
                                      still achieve good numbers. In the early 1990s,     (the executives were still very high achievers),
                                      when CEO Lou Gerstner set out to regain             their behavior had. The coaching style, mea-
                                      IBM’s market dominance by transforming the          sured through surveys of their direct reports,
                                      had increased by 17%, while pacesetting had       that uses socialized power to keep achieve-
                                      decreased by 5%.                                  ment in check.
                                         Of course, a high achievement drive is still
                                      a source of strength. But companies must          Reprint R0606D
                                      learn when to draw on it and when to rein it      Harvard Business Review OnPoint 4486
                                      in. The challenge for managers today, then,       To order, see the next page
                                      is to return some of the balance McClelland       or call 800-988-0886 or 617-783-7500
                                      advised, seeking an approach to leadership        or go to www.hbr.org
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                                                                                                                             page 11
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