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Results-Based Leadership

Results-Based Leadership

by Dave Ulrich 1999 256 pages
3.87
100+ ratings
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Key Takeaways

1. Leadership effectiveness = attributes x results

Effective leadership = attributes x results.

Leadership paradox. Many leaders focus solely on developing attributes - who they are, what they know, and what they do. However, attributes without results are ineffective. Conversely, results without the right attributes are unsustainable. The key is to connect attributes to results and results to attributes.

Balancing act. Leaders must strive for excellence in both attributes and results. This equation suggests that a low score in either attributes or results will considerably lessen overall leadership effectiveness. For example, a score of 9 out of 10 in attributes multiplied by a score of 2 out of 10 on results yields an effectiveness rating of only 18 out of 100.

Shift in focus. To improve leadership quality, there needs to be a shift from an exclusive focus on attributes to a balanced approach that includes results. This requires leaders to:

  • Define clear, measurable results they aim to achieve
  • Identify the specific attributes needed to deliver those results
  • Continuously refine and develop both attributes and results

2. Desired results must be balanced, strategic, lasting, and selfless

Desired results are balanced. They don't build success in one dimension by ignoring (or tolerating failure in) another.

Four criteria for results. Effective leaders focus on results that are:

  1. Balanced: Serve multiple constituents (employees, organization, customers, investors)
  2. Strategic: Align with and contribute to the organization's strategy and competitive advantage
  3. Lasting: Endure over time, balancing short-term and long-term goals
  4. Selfless: Benefit the larger whole, not just personal or group interests

Stakeholder balance. Leaders must balance results across four key stakeholders:

  • Employees: Building human capital through capability and commitment
  • Organization: Developing organizational capabilities
  • Customers: Creating firm equity and customer loyalty
  • Investors: Generating shareholder value

Strategic alignment. Results should be tied to the organization's strategy, focusing on:

  • Business focus (e.g., product, customer, technology)
  • Customer value proposition (e.g., low cost, quality, speed, service, innovation)

3. Employee results: Investing in human capital

Human capital = employee capability x employee commitment.

Defining human capital. Human capital represents the collective knowledge, skills, abilities, and commitment of employees. It's one of the few assets that can appreciate over time and is increasingly crucial in the knowledge-based economy.

Building employee capability. Leaders can enhance employee capability through six strategies:

  1. Buy: Recruit new talent
  2. Build: Invest in training and development
  3. Benchmark: Learn from other organizations
  4. Borrow: Partner with external experts
  5. Bounce: Remove underperforming individuals
  6. Bind: Retain top talent

Fostering employee commitment. Leaders can increase commitment by customizing the employee experience across five dimensions:

  1. Work arrangements: Flexibility in where, when, and how work is done
  2. Work impact: Allowing employees to see the results of their efforts
  3. Growth opportunities: Providing challenging assignments and learning experiences
  4. Rewards: Offering meaningful recognition and compensation
  5. Community: Building strong relationships within the organization

4. Organization results: Creating capabilities

Capabilities must offer integration; capabilities mean not individual competence or management systems, but an organizationwide commitment.

Shift in organizational focus. Leaders must move beyond viewing organizations as mere structures or systems. Instead, they should focus on developing organizational capabilities - the collective skills, processes, and abilities that enable a company to compete effectively.

Four critical capabilities. Successful organizations often focus on developing four key capabilities:

  1. Learning: Ability to generate and leverage knowledge
  2. Speed: Capacity for change, agility, and quick response
  3. Boundarylessness: Collaboration across internal and external boundaries
  4. Accountability: Discipline and ownership in achieving results

Developing capabilities. Leaders can build these capabilities by:

  • Aligning capabilities with strategy
  • Measuring and improving each capability
  • Integrating capabilities into management practices
  • Creating a culture that reinforces desired capabilities

5. Customer results: Building firm equity

Firm equity results from successfully executing a business strategy that integrates product brands into the cohesive whole known as culture.

Beyond brand equity. Firm equity goes beyond product brand value to encompass the overall value customers place on doing business with the company. It represents the identity of the firm in the minds of customers.

Customer segmentation and customization. To build firm equity, leaders must:

  1. Identify target customers through segmentation
  2. Customize offerings and experiences for these customers
  3. Develop a clear value proposition (e.g., low cost, quality, speed, service, innovation)

Building customer connections. Leaders can increase customer intimacy through:

  • Direct customer interactions
  • Involving customers in recruiting and employee development
  • Including customers in reward systems
  • Integrating customers into governance and decision-making processes

6. Investor results: Building shareholder value

Shareholder value in its simplest form means creating wealth for investors.

Three paths to shareholder value. Leaders can increase investor results by focusing on:

  1. Costs: Reducing expenses and improving efficiency
  2. Growth: Increasing revenues through geographic expansion, product innovation, or customer intimacy
  3. Management equity: Enhancing the perceived quality of management

Leadership actions for investor results. Effective leaders:

  • Understand their industry and competitive position
  • Live within budgets and meet financial commitments
  • Build performance management systems aligned with shareholder value
  • Lead by example in cost management and growth initiatives
  • Communicate transparently with investors
  • Create a values-driven culture focused on results

Balancing stakeholder interests. While focusing on investor results, leaders must maintain a balance with employee, organization, and customer results to ensure sustainable long-term success.

7. Becoming a results-based leader

Constantly take action; results won't improve without it.

Shift in focus. To become a results-based leader, individuals must move beyond solely developing attributes to connecting those attributes with tangible outcomes. This requires:

  • Clearly defining desired results in all four key areas (employee, organization, customer, investor)
  • Taking personal responsibility for achieving those results
  • Communicating expectations and targets to team members

Action-oriented approach. Results-based leaders:

  • Experiment and innovate to find new ways to improve performance
  • Measure the right standards and increase rigor in measurement
  • Increase the pace and tempo of their group
  • Seek feedback from others on ways to improve outcomes

Personal development. Leaders should engage in development activities that directly contribute to producing better results, such as:

  • Job-related experiences and assignments
  • Action learning projects tied to business goals
  • Coaching and mentoring focused on results achievement
  • Tailored skill training with clear connections to desired outcomes

8. Leaders building leaders

Leaders building leaders establish an environment favorable to risk taking and pushback, an environment in which employees do not feel afraid to raise alternative ideas and propose new ways of doing things.

Virtuous cycle of attributes and results. Effective leadership development connects attributes (who leaders are and what they know/do) with results. This creates a reinforcing cycle where:

  • Attributes lead to results ("so that" statements)
  • Results inform necessary attributes ("because of" statements)

Results-focused development. Leadership training and development should be reoriented to emphasize results:

  • Training programs should start with defining required results
  • Job assignments should provide experience across all four result areas
  • Coaching and mentoring should focus on achieving specific outcomes
  • Succession planning should evaluate candidates on their ability to deliver future results

Shared responsibility. Building the next generation of results-based leaders is a shared responsibility:

  • Senior managers must model results-based leadership and invest in developing others
  • Chief Learning Officers need to design integrated development experiences that emphasize results
  • All leaders have an obligation to help define, achieve, and teach others about results-based leadership

Last updated:

FAQ

What's Results-Based Leadership about?

  • Focus on Results: The book emphasizes the importance of achieving measurable outcomes in leadership, linking leadership attributes directly to results.
  • Four Key Areas: It identifies four critical areas of results: employee, organization, customer, and investor results, each essential for overall success.
  • Leadership Equation: The central idea is that effective leadership is a product of both personal attributes and the ability to deliver results.

Why should I read Results-Based Leadership?

  • Practical Framework: It offers actionable insights and frameworks that can be applied in various organizational contexts to improve leadership effectiveness.
  • Bridging Theory and Practice: The book addresses the gap between leadership theory and practice, making it relevant for both aspiring and current leaders.
  • Research-Backed Insights: Grounded in extensive research and real-world examples, it provides a credible resource for enhancing leadership skills.

What are the key takeaways of Results-Based Leadership?

  • Attributes and Results: Both leadership qualities and the ability to achieve results are crucial for effective leadership.
  • Stakeholder Balance: Leaders must balance the needs of employees, customers, and investors to achieve desired results.
  • Continuous Improvement: A culture of continuous learning and improvement is essential for both leadership and organizational success.

What are the best quotes from Results-Based Leadership and what do they mean?

  • "Effective leadership = attributes x results." This encapsulates the book's thesis, highlighting the need for both personal qualities and measurable outcomes.
  • "Leaders must strive for excellence in both terms." It emphasizes the necessity of developing attributes while focusing on results.
  • "Connecting attributes to results becomes the next agenda for building effective leadership." This calls for aligning personal qualities with desired outcomes.

How does Results-Based Leadership define firm equity?

  • Customer Value Understanding: Firm equity is built by understanding and delivering what customers value, creating a strong brand identity.
  • Employee Engagement: Engaged employees who understand their contribution to customer value enhance firm equity.
  • Sustained Performance: It involves focusing on long-term strategies that sustain performance and customer satisfaction.

What is the significance of human capital in Results-Based Leadership?

  • Definition: Human capital combines employee capability and commitment, ensuring skilled and motivated employees.
  • Investment in Development: Leaders are encouraged to invest in employee development to enhance both capability and commitment.
  • Impact on Success: High human capital levels correlate with improved performance and customer satisfaction.

How do the authors define desired results in Results-Based Leadership?

  • Four Types of Results: Desired results are categorized into employee, organization, customer, and investor results.
  • Balanced Approach: Leaders should balance these areas to ensure comprehensive success.
  • Strategic Alignment: Results must align with the organization's strategy to contribute to long-term goals.

What strategies do the authors suggest for building employee commitment?

  • Flexible Work Arrangements: Offering flexibility can enhance job satisfaction and commitment.
  • Opportunities for Growth: Providing skill development and career advancement opportunities fosters commitment.
  • Recognition and Rewards: Acknowledging contributions boosts commitment levels.

How can leaders create organizational capabilities according to Results-Based Leadership?

  • Focus on Learning: Encourage a culture of continuous learning and innovation.
  • Speed and Agility: Develop capabilities to act quickly and adapt to changes.
  • Accountability and Ownership: Establish clear accountability structures to ensure responsibility for results.

What role does customer focus play in Results-Based Leadership?

  • Building Firm Equity: Strong customer relationships enhance firm equity.
  • Segmentation and Customization: Tailor offerings to meet specific customer needs.
  • Understanding Needs: Actively seek to understand and respond to customer preferences.

How can leaders measure customer value according to Results-Based Leadership?

  • Customer Perspective: Adopt the customer's viewpoint to understand value.
  • Value Proposition Assessment: Evaluate how well the firm delivers on its value propositions.
  • Continuous Improvement: Regularly assess and adapt strategies based on feedback.

How does Results-Based Leadership suggest leaders develop their capabilities?

  • Personal Development Activities: Engage in activities that enhance relevant skills and knowledge.
  • Experiential Learning: Take on challenging assignments to grow and develop new competencies.
  • Continuous Feedback Loop: Establish regular feedback systems to guide development efforts.

Review Summary

3.87 out of 5
Average of 100+ ratings from Goodreads and Amazon.

Results-Based Leadership receives positive reviews for its insights on effective leadership and achieving results. Readers appreciate its relevance to global business, practical advice, and focus on developing leaders at all levels. The book is praised for connecting leadership attributes to outcomes and providing useful tools like checklists and real-world examples. Some reviewers find it simplistic, but overall, it's recommended for managers, executives, and entrepreneurs seeking to improve their leadership skills and drive performance.

Your rating:

About the Author

David Olson Ulrich is a multifaceted professional in the field of business and management. As a professor at the Ross School of Business, University of Michigan, he brings academic expertise to his work. Ulrich is also an accomplished author, having written books on leadership and management. His influence extends beyond academia as a sought-after speaker, management coach, and consultant. Ulrich's co-founding of The RBL Group demonstrates his entrepreneurial spirit and commitment to practical application of management principles. His diverse roles allow him to bridge the gap between theoretical knowledge and real-world business challenges, making him a respected figure in both academic and corporate circles.

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