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Third Generation Leadership = Increased Profit

Guest post by: Douglas Long

Article Overview: Improved profitability can be obtained through a very simple – yet very comprehensive 9 step process that is capable of harnessing the energies of everyone in the organisation.

Third Generation Leadership = Increased Profit

"How can Third Generation Leadership increase my organisation's profitability?" That was a question posed to me at a recent workshop. The answer is simple.

It's a matter of trust and engagement.

Improved profitability can be obtained through a very simple - yet very comprehensive 9 step process that is capable of harnessing the energies of everyone in the organisation.

Trust the people you work with (not just the managers) and, working with them in a very open session at which everything is "on the table", work through the following process:

1. Make a list of all the things that impact on your organisation's ability to operate profitably.
2. Sort the list into two groups - those things within your organisation and those things external to your organisation
3. Sort the "internal" list into the following categories: knowledge, strategy, non-human resources, structure, human process
4. Very honestly and as impartially as possible, assess each item in each category of this list as to whether it actively enhances profitability, impedes profitability (usually by causing a problem or blockage that affects some other item from functioning effectively), or operates in such a way as to prevent profitability
5. Determine how to rid your organisation of those things that prevent profitability and clear the impediments
6. Determine how those items enhancing profitability can be further supported
7. Sort the "external" list into the following categories: those you can influence, those you cannot influence
8. Develop a very clear plan for positively influencing each item you can influence and develop an approach for dealing with those items you cannot influence
9. Empower everyone to make the new plan work

A First Generation Leader or a Second Generation Leader will try to control this discussion and will see as a threat any suggestions which question the leader's thought process and preferred approach. Such leaders will make it clear that some items are not open for consideration. This is a red zone approach.

A Third Generation Leader will operate from his or her brain's blue zone of control. This will allow full engagement with everyone involved and enable new and creative solutions and approaches to be developed. By then trusting people to actually implement what they have worked on developing, their commitment and competence will be harnessed towards achieving what needs to be done.

Depending on the size of your organisation you may need to cascade this down through a number of levels. Wherever possible, work in groups that cross organisational levels - if you bring all the executives together or all the managers together (or any other specific group) there is the risk that thinking will conform to what has been done in the past. Of course, if you bring a wider spread of people into each group it is essential that there is total freedom to say what is really thought - and only a Third Generation Leadership world can fully create this environment.

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Article Tags: blue zone, creativity, effective leadership, effective management, engagement, individual performance, innovation, organisational performance, profitability, third generation leadership



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