Joaquín Uríbarri

1. The coming behavioral revolution in leadership How new science is changing the way we manage and lead Joaquín Uríbarri Mumbai • June 2013

3. today’s world… Is global…… Is digital……

4. today’s world… Is fast changing…… Is unpredictable……

5. the power of customers

6. information overload Brain saturation Freeze upon decisions Intuition vs. Information A digital world impact Decision making abilities Information jugglers Errors, frustration, anxiety Regret Instant responses vs. quality & accuracy

7. the reality of today’s managers Fast changing Digital impact Globalization Uncertainty Ambiguity New Leadership required

8. issues for companies How can employee engagement be increased? BEHAVIOR Need to understand it 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?

9. is leadership working? Employees not fully engaged in their work Fully Engaged Disengaged or Disenchanted Partially Engaged Gallup: The costof employee disengagement £32 billion in the UK • €100 billion in France • $370 billion in USA Source: Towers Perrin Global Workforce Study (2007/08)

10. agenda Positive Leadership Positive Psychology Tuning-Up Mindware Harnessing Strengths Final Thoughts / Wrap Up 1 2

11. Positive Psychology

12. positive psychology Fixing Problems Optimizing Performance Psychological Healing Psychological Fitness Clinical Psychology Positive Psychology Ok Illness Difficulty Good Great Extraordinary Human Performance

13. 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.

14. Tuning-Up Mindware

15. big leadership situations low frequency, major impact “Developed the strategy that put us on the track to success” “Redesigned the customer relations management system” “Closed the plant and moved production overseas”

16. moments of truth high frequency, with subtle and cumulative impact “Changed format of weekly marketing meeting” “Decided to bring an outsider into the design process” “Got past emotions, chose influence tactic that convinced ___ to support the change.” “Pushed the team to adopt promotion campaign A, not B”

17. mindware Controller Whiteboard Hard Drive Attention Emotional System* * Gospik, Mohlin, et al ( 2011), PLoS Biology

18. IMAGINE Try it: Elephant

19. Whiteboard Test

20. Whiteboard Test F A E W X P V S M O G K C

21. Whiteboard Test Q: How did it go? F A S G M E C O V K P W X

22. Cognitive Control Test

23. say the words Blue Yellow Red Green Green Yellow Green Yellow Yellow Green Blue Blue Red Blue Red Green

24. say the colors ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ******

25. say the colors Blue Yellow Red Green Green Yellow Green Yellow Yellow Green Blue Blue Blue Green Red Red

26. married and looking Stefan is looking at Ana... …but Ana is looking at George. Stefan is married, George is not. Q: Is a married person Looking at an unmarried person? Stanovich, Toplak & West (Winter, 2010), Rotman Magazine.

27. Is a married person looking at a unmarried person? correct answer? Ana (?) Stefan (married) George (unmarried)

28. situation: the words we use How longwas the last movie you saw? short

30. mindware the basis of our thinking Too Small Loses Control + poor multi-tasking Controller Whiteboard Cognitive Limitations Hard Drive Low Power + hard to move Noisy Spotlight Sneaky Emotional System

31. Not only …….. But we also have……..

32. + Limited control over our reflexivebehaviors judgments about people reflexive reactions emotions…

33. reflexive behaviors Defaults that worked in World 0.0 …don’t always work now.

34. reflexes and risk Given €1000 Get€500 more, for sure. Get€1000 or €0 (50/50%) Given €2000 Give up€500 for sure. Give up €1000 or €0 (50/50%) A A B B

35. reflexes and risk Getting More Giving Up

36. wired for negative simple finding, worth a Nobel Prize Negatives hurt 2-3x as much as positives please. Pleasure -500 moving reference Loss Gain +500 Employee Feedback? Pain Source: Kahneman & Tversky (1979), Econometrica.

37. moment of truth Your Proposal Benefits Costs Costs • COSTS • Often immediate • Often certain • Often easy to “simulate” • Often easy to quantify 2-3x (psychological multiplier) • BENEFITS • Often delayed • Often less certain • Often harder to “simulate” • Often less quantifiable Trend

38. impact on behavior learn to identify moments of truth greater awareness provides foundation for doing better. 1 2 tune and train mindware mindfulness, self-regulation, practical exercises. 3 better understand reflexive behaviors design teams, work processes to maximize use of strengths. shift from reflexive to effective behaviors leveraging science of habit formation and change. 4

39. Harnessing Strengths

40. …it’s a science

41. strengths bravery caution curiosity teamwork gratitude humility creativity fairness future-mindedness authenticity open-mindedness energy kindness perseverance forgiveness humor appreciation of excellence learning purpose perspective command self-regulation social-intelligence

42. return on development what research is showing Strength Trajectory Weakness Trajectory

43. change in emphasis Strengths • Identify (there are tools) • Develop • Maximize use • Don’t over-use • Learn to use strengths… • … to work around weaknesses. Weaknesses • Identify • Accept • Develop to minimum required

44. examples Who: 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

45. impact Employees engaged, positive Fact: Productivity 31% greater. Fact: Sales 37% higher. Fact: Take 56% fewer sick days. Companies focusing on strengths Fact: 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%.

46. power of strengths they produce well-being, and performance P feel more positive become more engaged develop deeper relationships experience greater meaning feel more accomplished E R M A achieve extraordinary results

47. win-win Psychological well-being of employees Financial well-being of the company

48. across levels Transforming Leadership Individuals Teams Workplace

49. Final Thoughts / Wrap Up

50. positive leadership recognize moments of truth better understand behavior train mindware shift to more effective behaviors focus on positive development architect teams, functions, organization … to allow people to perform at their peak.