Leadership Blog

Ego-driven leaders This type of leader often sees themselves as the architects of their own fates, solitary figures in the harsh world of business where competition is fierce and only the strong survive. They prize individual success and recognition above all else, their self-worth rooted deeply in personal triumphs. In their world, each decision is a step on the path to victory, which they walk with unwavering confidence. To them, leadership is less about marshalling the collective strength of a team and more about showcasing the force of their own unique vision. Their approach is characterized by a focus on the immediate, with a horizon that often doesn't extend beyond the next win, the next deal, the next acclaim. This type of leader regards the people around them as instrumental to their own narrative, valuing them for what they can contribute to the next achievement. Relationships are often seen through a lens of self-interest, with an underlying expectation of personal gain. They make decisions unilaterally, trusting in their own judgment and instincts above the counsel of others. They are mavericks who challenge the status quo, sometimes at the expense of the greater good, bending rules when they feel it's necessary to reach their goals. To these leaders, success is not just the best measure of their worth; it is often the only one that matters. They push boundaries, and in doing so, they can either lead their ventures to new heights or to precarious edges. They view life as a competition where for them to win, others must lose. Their self-worth is tightly bound to winning and personal achievements. They prioritize their own interests and believe in their unique talents. Recognition of their abilities and contributions is essential for them. They have a strong sense of entitlement and predestination for leadership. Enjoyment of attention and a conviction in their own ideas characterize their self-image. They adopt a utilitarian view of success, willing to use any means to achieve goals, even if it involves manipulating others. The value of others is assessed based on their utility in achieving personal ambitions. They see relationships transactionally, ensuring personal gain. Self-assurance in their judgment leads to a preference for autocratic decision-making. They trust their intuition over others' input and feel they have a superior understanding of the “big picture.” They are willing to bend or break rules if it serves their vision of innovation and success. Ethical flexibility is rationalized if it leads to profitability or maintaining power. There’s a reluctance to admit fault, often attributing criticism to jealousy or misunderstanding. They have a short-term focus on immediate gains rather than long-term strategic planning. Societal norms or ethics may be disregarded if they conflict with personal goals. The Consequences of Ego Driven Leadership Their resistance to criticism and feedback severely limits their capacity for learning and adaptation. By prioritizing their own ideas and dismissing others', they miss out on valuable insights that could steer the company away from potential pitfalls or toward innovative solutions. This closed-minded approach can hinder a startup's ability to pivot or adapt to market changes, a crucial aspect of scaling successfully Their transactional view of relationships undermines trust and loyalty within the team. Viewing interactions as mere exchanges diminishes the intrinsic motivation of team members and erodes the sense of community and belonging. As startups grow, the complexity and demands of managing a larger team require a cohesive, motivated workforce. Ego-driven leaders struggle to foster this environment, leading to high turnover rates and difficulty in attracting and retaining top talent. The overconfidence of ego-driven leaders in their abilities and judgment can lead to risky and impulsive decisions without adequate consideration of potential consequences. While risk-taking is a part of startup culture, unchecked ego can push a company toward unnecessary dangers. Scaling successfully requires balanced, data-informed risk-taking that ego-driven leaders might overlook in favor of bold, but ill-advised, moves. Ego-driven leaders' tendency to bend rules and ethical boundaries for short-term gains can pose significant reputational risks. Such behavior not only jeopardizes the company's standing with customers, investors, and regulatory bodies but can also lead to internal cultures that justify unethical actions. As startups scale, maintaining a strong ethical foundation becomes increasingly important for sustainable growth and avoiding legal and reputational pitfalls. Their focus on immediate results often comes at the expense of long-term planning and sustainability. Ego-driven leaders might prioritize quick wins to boost their image or satisfy short-term financial goals, neglecting the investments in infrastructure, culture, and strategy necessary for scaling. This shortsightedness can stunt a startup's growth trajectory and leave it ill-prepared for future challenges. Lastly, the need for control that characterizes ego-driven leadership impedes their ability to delegate effectively and empower team members. Scaling a startup requires distributing responsibilities and trusting others to make decisions. Ego-driven leaders struggle with this aspect of growth, often becoming bottlenecks for decision-making and innovation, which can slow down the organization and demotivate talented employees Principle-Centered Leadership Leaders who exhibit emotional maturity and responsibility steer their teams with a clear sense of purpose, guided by the ethos of service and community impact rather than personal glory. They recognize their role as an opportunity to uplift and empower, measuring triumph not in the echo of their accolades but in the progress and well-being of their collective. They understand that a variety of perspectives fuels smarter strategies and true innovation, and they champion a collaborative approach that harnesses the collective strength of their team. At the heart of their leadership style is a commitment to trust and respect, essential ingredients in cultivating an environment where open communication and innovation can thrive. These leaders are adept in emotional intelligence, balancing empathy with self-awareness, and adjusting seamlessly to change. Their decisions are anchored in integrity, serving as a living example to their teams. With a gaze set on the long-term horizon, they emphasize sustainable practices and resilience, knowing that meaningful success is not a sprint but a marathon. By investing in their people, they're not just building a team; they're nurturing an ecosystem where every member can flourish. They view leadership as a duty to serve rather than a right to command. They measure success by the positive impact on the team and community. They prioritize serving others and contributing to the greater good. They value diverse perspectives and encourage every voice to be heard. They emphasize collaboration and shared leadership for collective success. They practice and model integrity and transparency. They create a safe space for innovation and honest feedback. They celebrate collective achievements to motivate and unite the team. They believe in the interconnection of the team's and organization's welfare. They utilize emotional intelligence for empathetic and effective leadership. They commit to personal growth and adaptability based on continual feedback. They uphold ethics and integrity as foundations for all decisions. They focus on sustainable success with a long-term perspective. They invest in building strong relationships and a cohesive team. They maintain resilience and positivity in the face of challenges. 16. They encourage work-life balance for team health and sustained performance.

My methodology is a comprehensive approach that delves deep into the intricacies of founder competencies to unearth the secrets of success. Through meticulous analysis and categorization, this methodology provides valuable insights into the behaviors that correlate with success, offering a roadmap for aspiring entrepreneurs navigating the startup journey.

Securing second-round funding is often a pivotal milestone on the journey toward success. While innovative ideas and promising markets certainly capture investors' attention, one fundamental aspect consistently stands out as a critical factor: the strength and experience of the founding team. Behind every groundbreaking startup is a team with the vision, expertise, and determination to turn dreams into reality. Investors recognize that a strong team can navigate challenges, capitalize on opportunities, and drive sustainable growth. Let's delve into why team strength matters and explore the statistical evidence supporting its importance in securing second-round funding. Diverse Skill Set: The Engine of Innovation A diverse skill set within the founding team is akin to having a well-equipped toolbox for tackling the complexities of startup life. Startups require a range of talents spanning product development, marketing, sales, finance, and operations. According to research conducted by Harvard Business Review, teams with diverse backgrounds and skill sets are more innovative and better equipped to solve complex problems. Investors seek teams that complement each other's strengths and compensate for weaknesses, fostering a culture of collaboration and creativity. Startups with diverse teams are more likely to identify unique market opportunities, develop innovative solutions, and adapt to evolving industry landscapes. Relevant Industry Experience: Navigating the Terrain Experience is invaluable in the startup ecosystem, where uncertainty and rapid change are constants. Investors place great emphasis on founding teams with relevant industry experience, as they bring insights, networks, and best practices that can accelerate growth and mitigate risks. According to a study by CB Insights, startups founded by teams with industry experience are more likely to achieve higher levels of success and attract follow-on funding. Seasoned entrepreneurs understand market dynamics, customer needs, and competitive forces, positioning their startups for strategic advantage and sustainable growth. Track Record of Execution: Turning Vision into Reality Ideas are abundant in the startup world, but execution is the true currency of success. Investors scrutinize the track record of founding teams, seeking evidence of execution prowess and the ability to deliver results in the face of challenges. Startups that have demonstrated traction, achieved key milestones, and effectively allocated resources are viewed favorably by investors. According to data compiled by PitchBook, startups with proven execution capabilities are more likely to secure second-round funding and position themselves for long-term success. Investing in People, Investing in Success Team strength emerges as a decisive factor in securing second-round funding. Investors understand that while ideas may spark interest, it is the people behind those ideas who ultimately drive success. Startups with diverse teams, relevant industry experience, and a track record of execution stand poised to capture investors' attention and fuel their growth trajectory. As the startup ecosystem continues to evolve, the emphasis on team strength remains unwavering, underscoring the timeless adage: "Invest in people, and success will follow." For startups eyeing the next stage of growth and expansion, investing in team strength is not just a strategic imperative—it's the cornerstone of enduring success. Team strength emerges as a decisive factor in securing second-round funding. Investors understand that while ideas may spark interest, it is the people behind those ideas who ultimately drive success. Startups with diverse teams, relevant industry experience, and a track record of execution stand poised to capture investors' attention and fuel their growth trajectory. As the startup ecosystem continues to evolve, the emphasis on team strength remains unwavering, underscoring the timeless adage: "Invest in people, and success will follow." For startups eyeing the next stage of growth and expansion, investing in team strength is not just a strategic imperative—it's the cornerstone of enduring success. It is however important to understand that: What got you here, isn't going to get you there!. Being ready and willing to accept that there needs to be some measure of personal growth is what sets Founders who can scale, apart from those who won't.

In the realm of entrepreneurship, the label 'founder' carries diverse connotations. Is it a product of academic pedigree, age, or professional experience? Or perhaps, it's a blend of biography and personality? Despite common perceptions, founders defy easy categorization. While stereotypes persist—ranging from Ivy League dropouts to seasoned professionals—research dispels many misconceptions. Consider age: successful founders hail from varied backgrounds, with the median age resting in the mid-30s. Educational pedigrees and technical prowess also lack determinative influence, as evidenced by diverse founder profiles. Whether driven by personal missions or market trends, founders display a spectrum of inspirations. Moreover, solo ventures and partnerships hold equal potential. Amidst the gender gap and the high failure rates, a nuanced understanding of founder dynamics emerges. Venture capitalists prioritize risk mitigation, valuing both youthful zeal and seasoned expertise. Yet, beyond demographics lies a common thread: tenacity. Repeat founders, in particular, embody resilience—a trait prized above all. So, what truly defines a founder? Biographical narratives yield to a deeper inquiry into personality traits. Through rigorous analysis, distinct patterns emerge. Founders excel as keen observers, challenging norms and igniting change. Their confidence fuels risk-taking, while their visionary leadership inspires others to join their narrative. Their journey, though arduous, epitomizes relentless pursuit and unwavering commitment. Yet, amid their strengths lie inherent challenges. Founders grapple with focus, scalability, and delegation. Conflict resolution and empathetic leadership demand refinement. Balancing ambition with empathy remains a perennial struggle. Yet, therein lies the essence of the founder equation—embracing the complexity, harnessing strengths, and confronting limitations head-on. In unraveling the enigma of foundership, we illuminate pathways to growth and resilience. Together, we navigate the intricacies, forging a new narrative of entrepreneurial success—one defined not by stereotypes, but by the transformative power of vision and perseverance."

Setting the Conditions for Success

Along with their natural strengths, Relationship Builders have a cluster of leadership problems which revolve around their warm and sympathetic natures. We have already noted that they have a particularly hard time making tough decisions or taking strong actions like firing or disciplining talent. Compounding this problem is the RB’s need to be liked. If a decision could make them unpopular, they don’t want to do it. This can stand in the way of firm, decisive leadership, holding people accountable, and driving for results.

SETTING THE CONDITIONS FOR SUCCESS The Relationship Builder is one of the Three Pillars of Leadership (Visionary Evangelist, Relationship Builder, and Manager of Execution.) In this section we will discuss the natural characteristics and strong points of people who are good relationship builders. In the final section we’ll discuss their weaknesses and challenges and make some suggestions for improvement. Friendly and approachable The first thing that needs to be said about Relationship Builders is that these are genuinely nice people. They are warm and welcoming, open, and non-judgmental. They tend to see the best in people, and treat everyone with respect and consideration. They have kind and sympathetic natures and give people their full attention. Their reward is that they are well liked by almost everyone. “Lou is very easy-going and approachable,” a direct report said. “He has a warm and friendly personality and is instantly liked. I can't think of anybody who doesn't like him.” Relationship Builders value and enjoy people, and devote a substantial amount of time and attention to cultivating relationships. From an early age, people are drawn to them and feel comfortable with them, not only because of their amiable personalities, but because their way of relating to others is forthright and respectful. They care about people, and are sensitive to their needs, concerns, and perspectives. “John projects a feeling of caring and concern.” “He demonstrates his caring by being an excellent listener.” Open to input from others You can share your problems, your feelings, and your dreams with a Relationship Builder, who will listen attentively. “She has a heart of gold and is a genuinely good human being. She always finds a way to take time for you with helpful words and support.” This does not mean they are softies, incapable of making the tough decisions leaders sometimes have to make. “He has been willing to make many difficult and painful decisions. But, he has remained the same kind, thoughtful, helpful leader.” Relationship Builders see the best in people, and treat everyone with respect and consideration. You can also share your ideas and opinions. As managers and leaders, RB’s show their respect for others by being open to their ideas and views, even if different from their own. Often they actively solicit input from their peers and subordinates. “ What do you think about this?” they will ask. “Will it work on your team?” And because they are warm personalities who are not intimidating, people are not afraid to speak up and volunteer their opinions. Relationship Builders are rarely anxious, and rarely react defensively or with anger. Also, they are not overly competitive socially; it’s more important to them to have a relationship of cooperation and harmony, a feeling of “family” or “team,” than to come out on top of the heap. Because of these factors, they don’t leave a trail of hurt feelings behind them. Socially skillful and astute Another key to the RB personality and leadership style is that they are socially astute: they know what makes people tick. They are experts at accurately reading people, understanding their motivations, and correctly gauging their reactions. They are sensitive to others’ feelings and quick to adjust their approach to fit the other person’s mood, need, or style. They not only understand individuals, they also grasp the “politics” and social dynamics of work groups and the organization as a whole. It’s not just intelligence that makes a good leader. You also have to understand people: how they feel, what makes them tick, and the best way to influence them. Relationship Builders also have outstanding social skills. They listen attentively and don’t interrupt. They hear what is being said, and when they don’t understand, ask questions to clarify meaning. They communicate their interest and create a bond by offering feedback that shows that they understand and care. Their words and responses tend to be carefully chosen and diplomatic. They know what to say to win friends – and not create enemies. Their approach rarely puts people off and is effective in enlisting support and buy-in. RB leaders recognize, praise, and reward others for good performance. “Ron has a talent for making people feel important, and he genuinely cares,” one grateful employee said of his boss. “Unlike other people I’ve worked for who only let you know when you screw up, he takes the time to thank us when we do a particularly good job.” Everyone likes to be appreciated. The lesson here? Leaders who express gratitude for a job well done not only encourage better performance, but also inspire loyalty and engagement. Trusting and trustworthy Trust is one of the building blocks of the RB style. To them, the world is a safe place, and people are basically good. They assume people are trustworthy and sincere and will do as they say. They have faith that others are not interested in doing them harm. This tendency to trust reflects back on them, earning them the respect and trust of others. “In my experience, in direct relationships Diana has never been anything but open, friendly, and approachable,” one executive said of his colleague. “She extends trust in all her interactions, and therefore usually receives it.” One reason people perceive Relationship Builders as eminently trustworthy is that RB’s are often what we call in our research a “model of values” – that is, they have high moral and ethical standards, and consistently try to live up to them. Their behavior reflects high principles. They try to be just and fair, including the willingness to take responsibility for their mistakes rather than blaming others when things go wrong. They are forthright, sincere and genuine, and have no hidden agenda. With them, “what you see is what you get,” so you can trust what they say and the image they project. “Chuck’s sincerity makes him trustworthy,” a team member reported. “He can be taken for his word. In a short time, he has built trust in the team by being straightforward and direct about his expectations.” RB’s are also adept at modeling the principles and values central to the organization’s culture and mission. For them, the company’s Mission Statement is not just a bunch of fine words, but a standard to uphold. They set the bar high for themselves in terms of dedication, hard work, energy, and commitment. As one reviewer said of his boss, “Anthony has a strength of character and personality which attracts folks and makes them cooperative.” They know how to get buy-in and build followership To accomplish their agenda, leaders need the help of others. The larger and more ambitious the enterprise, the more indispensable are the time, energy, efforts, and support of many people. The leader who cannot get support for his or her initiatives will become frustrated and will inevitably fail. Today’s leaders have to contend with an increasingly savvy and mobile workforce. Smart, talented employees are prepared to explore alternative employment opportunities and willing to move on if they are not treated with respect. Loyalty was once a core value that made people reluctant to risk changing jobs and careers. In an age of layoffs, mergers, and start-ups, individuals have learned that they must look out for their own interests and career development. Leaders can no longer take employee retention for granted; they have to earn the loyalty of their workforce and develop skills to achieve buy-in to their agendas. They create a feeling of shared fate One of the best ways to engage followers is by developing a sense of common purpose and shared fate, the feeling that “We’re all in this together.” When people feel this way, they become willing to rise to any challenge, endure hardships, and make personal sacrifices (such as working long hours, accepting deferred financial reward, etc.) for the cause. Leaders who inspire this level of engagement get maximum leverage to accomplish their objectives. Visionary Evangelists can generate this sense of common purpose through the force of their vision and persuasive power. Managers of Execution do it through their efficiency, perseverance, and determination to get the job done right. Relationship Builders achieve it in a more humble and personal way – by encouraging others, lifting spirits, and drawing people together as a caring family. History serves up numerous examples of leaders who worked their magic in engaging followers. Hundreds of thousands of Frenchmen marched on foot through the perils of a Russian winter in support of their beloved leader, Napoleon Bonaparte. They were captivated by his vision of bringing the ideals of the French Revolution – “liberté, égalité, fraternité” – to the peoples of Europe. But it wasn’t his vision alone: Napoleon was renowned for his ability to make a personal connection with his soldiers. Snapshot: Sir Richard Branson, A highly successful Relationship Builder “Put Your Staff First” Adventurer, entrepreneur, and best-selling author, Richard Branson’s Virgin Group of 400 companies is one of the world’s most recognized brands. Like many other Relationship Builder leaders, he believes strongly in putting employees first: "If the person who works at your company is 100% proud of the job they're doing, if you give them the tools to do a good job, if they're treated well, then they're gonna be smiling, they're gonna be happy and therefore the customer will have a nice experience. “If the person who's working for your company is not given the right tools, is not looked after, is not appreciated, they're not gonna do things with a smile and therefore the customer will be treated in a way where often they won't want to come back for more.. So, my philosophy has always been, if you can put staff first, your customer second and shareholders third, effectively, in the end, the shareholders do well, the customer s do better, and you yourself are happy." https://www.inc.com/marcel-schwantes/richard-branson-reveals-3-of-his-own-brilliant-habits-for-successful-leadership.html They excel at building and leading teams “To sustain the inspira tion that comes from leadership, you need teamwork… A team of stars does not make a star team unless the stars draw the best from each other and work as a team.” – Debashis Chatterjee Teamwork – functional and cross-functional, within organizations and between networks of organizations, is a central fact of corporate life today. As leadership guru Warren Bennis noted, “The Lone Ranger is dead. Instead of the individual problem solver we have a new model for creative achievement.” Anyone who aspires to effective leadership today must – by nature or by training – know how to build and pilot teams. Relationship Builders are particularly effective here. They understand the value of bringing people together to solve problems, make decisions and plans, and take collective action. They enjoy working with others and know how to get people cooperating and communicating. Putting together collaborative work relationships and structuring a harmonious work environment comes naturally to them. This contrasts with Visionary Evangelists , who conceive of themselves as the “go-to” person, the star of the show. VE’s are typically not interested in listening to others’ points of view or hammering out compromises and mutually acceptable plans and goals: they want things to be done their way! Similarly, Managers of Execution are often unwilling to relinquish control, power, or authority. They are quite certain that they know best how to do it: whatever it may be. Relationship Builders are comfortable not taking center stage or being in control – actually, they prefer it that way. They are good team players, naturally supportive to others, and quite willing to pitch in and do whatever’s needed in order to get results. Here are six ways Relationship Builders contribute to the successful functioning of teams: They foster a sense of shared goals and common purpose. This is especially valuable in the early stages of team building, when the team is defining itself, setting goals, and figuring out how to integrate all the members into a cohesive and effective unit.T They facilitate open and clear communication. Good communicators themselves, socially astute Relationship Builders are skilled at getting people to talk and express themselves, opening up lines of communication. They create an atmosphere of safety and trust. With their natural warmth and openness, RB’s create a working environment where it is safe for employees to open up to fellow team members, to candidly express their views, exchange ideas, and disagree with each other or even with management, without fearing that they are putting their job or career at risk. They value and encourage diversity of opinions. Relationship Builders communicate comfortably with people from diverse backgrounds, skillsets, and functions in the organization. “Rick has a keen ability to talk with all walks of life and all job titles. He is as comfortable being with the [truck] drivers as he is with other executives. His relationship and bond with our drivers has been outstanding since day one. They feel comfortable walking up and initiating a conversation because he is interested in them.” They cultivate cooperative relationships. In an atmosphere of trust and open communication, with a sense of shared fate and team spirit, it becomes natural for people to support each other and lend a helping hand without being asked or told to do so. They encourage participation among team members. Good Relationship Builder leaders draw you out, they ask for your opinions and what your concerns are. They know that each member of a team brings something valuable to the table. Because they are well liked and are able to connect with a wide range of personalities and backgrounds, RB’s quite naturally draw all members of a team into the mix. They build effective partnerships and alliances RB’s are effective at creating alliances and synergistic relationships between different functions within an organization, and between entire organizations. Building this type of alliance is similar to, but substantially different from building teams. If you’re a leader of a team within your own organization, you have formal authority over others. But in an alliance you are working with people over whom you have no authority. You have to: network with potential partners develop their trust find common interests negotiate agreements and priorities put together a plan that utilizes the unique strengths of each organization A successful alliance has to be structured so that everybody wins – or they simply won’t play the game. This calls upon all the Relationship Builder’s social awareness, social intelligence, and social adroitness. These skills do not go unnoticed by others. “Cindy’s greatest strength is her ability to build and cultivate relationships, which pave the way for harmonious work between organizations and people. She is good at breaking walls down.” Snapshot: Herb Kelleher, founder and long-time CEO of Southwest Airlines. Herb Kelleher’s people-centered philosophy of running a business is almost a textbook model of the Relationship Builder. In answer to the often-asked question, “Who comes first, your employees, your shareholders, or your customers?” Kelleher’s response was similar to Sir Richard Branson’s, quoted above: “Your employees come first. If your employees are satisfied and happy and dedicated and inspired by what they’re doing, then they make your customers happy and they come back, and that makes your shareholders happy.” He instructed Southwest employees, “Don’t worry about profit. Think about customer service. Profit is a by-product of customer service.” Skilled at negotiation Leaders have to negotiate all the time. It goes with the territory. You have to negotiate with vendors, customers, partners, employees, board members, unions, other functions or units, bankers and venture capitalists, etc. In any negotiation, the Relationship Builder’s ability to understand others’ needs, communicate diplomatically, and build trust, is priceless. They put people before task The pressure to accomplish goals and get financial results drives many leaders to view time spent cultivating relationships as a distraction and even a waste. Some Visionary Evangelists and Managers of Execution become so focused on achieving their objectives that they disregard or damage relationships by treating people as little more than means to the organization’s ends. By contrast, Relationship Builders allocate a substantial portion of their time and attention to people. They not only take an active interest in people’s needs, growth, and career development, but they are also careful not to undermine relationships with the very people they will need to help them accomplish their objectives. They realize that in order to work through others, you have to pay attention to them. You need to invest in building relationships of trust. You need to make connections. Thus, they view relationship building as a vital part of organizational strength and effectiveness. Many Relationship Builders do not live and breathe their jobs. They work hard; they are conscientious and have a strong sense of responsibility. But they also have a better than usual work-life balance. Relationships, whether with family, friends or co-workers are of equal or even greater importance to them. Part of what makes RB’s so well-liked by colleagues and co-workers is that they relate to others on a fundamental human level. “Steve always makes time to listen to my concerns,” a manager said of his boss, “and with his busy schedule, this is not always easy or convenient. No matter who you are, you always feel welcome in his office to come in and talk to him.” In the personality assessment tools that we have developed at HCG, Relationship Builders consistently score lower on items which indicate a dominant need for high achievement, such as the desire to be the best in their field. Sure, they have risen to be leaders because of their track record of effectiveness, but they are not compulsively driven. What does motivate them? Making people happy. Fulfilling their responsibility. Doing what is right. Being liked by others. Creating an environment that is harmonious. Because of this, leaders who are Relationship Builders command a great deal of loyalty in their followers. RB’s make people feel appreciated and a vital part of a team. They put their people first, and their people know it. Snapshot: John Chambers – Outstanding Example of a Two-Pillar Leader John Chambers is an outstanding example of a Two-Pillar leader – strong as a Visionary Evangelist and a Relationship Builder. As one publication put it, he has been praised “worldwide for his visionary strategy, his ability to drive an entrepreneurial culture, and his warm-hearted, straight-talking approach.” On the entrepreneurial side, Chambers piloted Cisco (according to Wikipedia “one of the biggest global networking companies, growing from a seller of switches and routers to a provider of complex telecommunications, cybersecurity, and networking solutions”) from 300 employees and $70 million in annual revenue to more than 30,000 employees and $20 billion in revenue in less than ten years, ultimately growing to $47 billion and for a time ranking as the most valuable company on the face of the earth! At the same time Chambers was widely known for building a corporate culture that genuinely cared for employees, and those who know him say that he exemplified those corporate values in his personal behavior. According to Cassandra Frangos, a Cisco executive who worked with Chambers, “He thought of everybody at Cisco as family, and he would request to have a list every day of any critical family health situations. So if you had a mother, a father, a child or somebody very close to you and your family who was critically ill or had some serious disease where they really needed some help, John would call the CEO of Stanford Medical or the CEO of Massachusetts General Hospital to say, ‘I have an employee. Their family needs help. I need to make a difference in their lives." In an article about Chambers, Chief Executive said, “the company’s strength isn’t about technology. It’s about values, culture, and an organization built around speed and change. In mastering the soft skills, Chambers, a naturally empathetic communicator, is more coach than boss—and the archetype of future business leadership.” Snapshot: “Mother of the company” Indra Nouyi leads PepsiCo to new heights Long-time president and then CEO of PepsiCo, Indra No uyi grew the company’s revenue from $35 billion to over $63 billion during her 24 year tenure, while making many bold acquisitions. The company, which employs over 290,000 people wordwide, now includes more than 23 brands that each earn more than $1 billion annually, including Tropicana juices, Gatorade, Sabra humus dips, and Quaker Oats products like granola bars and rice cakes. Yet with all her well-recognized visionary and managerial skills, Nouyi is best understood as a Relationship Builder, called by one observer, “mother of the company.” Steven Reinemund, PepsiCo CEO before Nouyi and then dean of the business school at Wake Forest University, described her as "a deeply caring person" who"can relate to people from the boardroom to the front line." They are excellent coaches and mentors Relationship Builders have an authentic impulse to help others grow and succeed. They not only encourage, but use their position to provide training, or to move people to areas where they are most likely to thrive. This unleashes the potential in others and helps them advance their career. He is always positive about people’s potential and committed to their growth. He has motivated me to be a better professional and better human being. The Relationship Builders’ natural ease and skill with people and their willingness to help others develop their careers or improve performance, make them excellent coaches and mentors – a valuable asset for any organization. They are patient teachers as well as caring friends and colleagues. In your interactions with others, if someone is stuck, discouraged, unmotivated, stressed, anxious, confused, you can probably be helpful simply by asking, Is there anything I can do that might make a difference? What have you tried in order to remedy the situation? What has worked and not worked? Where are you stuck? What do you think is the cause? They are genuinely empathetic Relationship Builders are typically big-hearted, empathetic, and enjoy meeting others’ needs. They sense how other people will feel and react, and thus hate to deliver bad news. But their ability to empathize and their concern for their people often puts them between a rock and a hard place. Like all leaders, Relationship Builders want to get the job done effectively and deliver results. They feel an obligation to customers, investors, and the bottom line. Being who they are, they never want to meet these obligations by damaging the dignity, feelings, or well-being of others. Yet, in order to drive a project to completion, it is often necessary to push others, and to make tough decisions. Thus, they may find themselves conflicted when the need for getting results comes at the expense of employees. If the company is in trouble, for example, leaders may have to downsize, or replace long-time employees with people who have more skill or experience. For most Visionary Evangelists and Managers of Execution, these are unfortunate situations that simply have to be dealt with, though they may have to steel themselves a little before taking drastic action. “These layoffs are going to help us survive,” they’ll tell themselves. “Even though it may create some unhappiness, that’s the way it has to be.” Relationship Builders will always have a hard time making tough people decisions. They may take the necessary action, but it doesn’t come without a price. They feel torn between their loyalty to the organization and their loyalty to the individuals with whom they have formed a bond of teamwork and trust – and they may become quite stressed by this internal conflict. Optimistic, Upbeat attitude Relationship Builders describe themselves as happy, upbeat people, which is generally how others see them. They tend to be optimists who believe things will get better, natural, unfeigned positive thinkers who are likely to see opportunities where others see obstacles and problems. They see the good side of life and of the people they interact with. “Marty is refreshing in his approach to people,” an executive said about his colleague. “He is cheerful and optimistic and always sees the glass as half full as opposed to half empty. He’s able to laugh in hard times without losing sight of completing difficult tasks.” Subjective reports like that are nice, but there are also stacks of research studies that show that optimism is a great predictor of high performance. For example, the scores of 500 freshmen at the University of Pennsylvania on a test of optimism vs. pessimism were a better predictor of their actual grades than their SAT scores or high school grades. Another study showed that new salesmen who were optimists sold 37% more in their first two years on the job than pessimists. Our work with leaders has delivered similar results. Of the 46 leadership dimensions we currently measure on our 360 degree evaluations, 45 are positively correlated with optimism: as optimism increases, these 45 measures (from adaptability and decisiveness to strategic focus and visionary thinking) also go up. They are even-tempered " In all of the years I've known Tanaka, I have never seen him rattled, angry, or confrontational. Only once did I ever see him frustrated and even then he was able to manage the situation in a positive manner without allowing it to degrade to confrontation.” Comments like this are common in the 360 degree assessments of people who are Relationship Builders. Why is this important? As the leader, “when you stay calm, the people around you are less likely to panic and the situation you’re dealing with is less likely to spin out of control,” according to John Chambers. Relationship Builders are not likely to blow up or get in arguments. It takes a lot to get them upset. Even in times of high stress, they usually manage to avoid unproductive confrontations. “Chris is very even-tempered,” said one peer reviewer. “He doesn't swing to right or left. He is a pleasure to work with.” Even if they feel upset inside, they keep their cool and seldom act without thinking. Psychologists might label this behavior “conflict avoidance,” and to some extent they would be correct. RB’s typically do desire to have everybody approve of them, so they don’t want to ruffle any feathers or damage any relationships. The downside of this, is that they may be too tolerant and easygoing in leadership positions, and not sufficiently demanding of top-level performance. We will discuss this further in the concluding section. People are not intimidated by RB’s, or feel they have to be on their guard around them. Even when RB‘s are in high leadership positions, colleagues and reports are not afraid to voice their opinions and concerns. RB’s rarely react defensively, even to critical feedback, and they are not predisposed toward retaliation. They are also not very susceptible to anxiety. They are not worriers. This reflects their optimistic nature. If you figure things are going to work out well – why worry? Visionary Evangelists and Managers of Execution often have expectations and models of how things are going to turn out. When there’s a gap between expectation and reality – when life doesn’t conform to the picture they’ve been carrying around in their heads – they often lose their patience, blame others, or flare up in anger. RB’s rarely do that. The most flexible and adaptable of the Pillars, they “go with the flow.” They have an air of acceptance about them that people are attracted to. At their best, RB’s trust life and accept what is. They are flexible Relationship Builders seem to be born with a high degree of adaptability. They listen to what others have to say, and are open to input. Just because they have seen things one way and pursued one course of action, doesn’t mean they won’t listen to other opinions or consider other options. This attitude of openness and flexibility makes for smoother interactions within teams and organizations. One reason RB’s are willing to be so adaptable is that they do not like to fight. They would rather accommodate than set up battle lines. To maintain harmony, they will adjust themselves to different people and situations. This is partly strategic. RB’s understand that you can get more with honey than with vinegar, and if they run into obstacles with one line of action, they will readily adapt to achieve their ends. But when does being adaptable shift into being too adaptable? There are times to discuss and negotiate, and times when the leader must simply draw a line and demand that people do whatever is required in order to secure an achievement. Relationship Builders have trouble doing this. They are not always willing to put a stake in the ground and stand firm. They don’t want to say “yes” to one side at the expense of saying “no” to the other. They don’t want to disappoint anyone. This can be a problem for them, and for the organization. They are adept at resolving conflict Relationship Builders have a natural skill that is highly important and even necessary for maximum functionality of any organization: helping to resolve conflicts. Because of their social skills and ability to mediate, they are good at facilitating dialog between people who might be in conflict. All teams have moments of distrust and disunity, especially when they feel stuck and frustrated. People point fingers, blame others, and anger just below the surface may rise up in confrontation. In such situations, the RB’s natural interpersonal expertise and the trust people have in them can be called upon. If anyone can get people talking, so that problems can be put on the table to be looked at openly and resolved, they are the ones who can do it. They are great listeners One of the key factors that make Relationship Builders so effective (and so well liked and respected) is that they have outstanding listening skills. They pay attention. They are open and receptive to others’ thoughts, needs, and concerns. This aptitude shows up with great frequency on 360-degree multi rater assessments, as the following comments show. He is an excellent listener who does not interrupt people when they speak. He waits for his turn to raise questions and shows a lot of interest in all matters concerning the organization's well-being. She is an extremely strong manager and really seeks to understand before being understood. He makes people feel that what they are saying is important to him and to the company, even if he doesn’t agree She is a good listener, paraphrases effectively and builds her responses on what the other person is saying. Invites others to express their idea of how to solve the problem before offering her solution. Willing to be influenced rather than just getting his way. I appreciate that courtesy from him. How do you stack up against these standards? Are you patient when others speak, and wait until they are finished before you begin? Or do you frequently interrupt? When someone is talking, are you really present with your attention on them, or is your mind jumping ahead to your next appointment or things you still need to do today? People sense it when you’re not really there. What can you do to be more present for others? Next, we will discuss the downside of the Relationship Builder pillar: their challenges and weaker areas, and offer some suggestions to improve their functionality in this vital area of leadership.

An Overview of Their Style