The coming behavioral revolution in leadership.

1. The coming behavioral revolution in leadership. Lee Newman and JoaquínUríbarri IE Business School, IE School of Social & Behavioral Sciences Evolving Corporate Universities ▪ Zurich ▪ February 2012 Behavioral science for optimizing human performance.

2. Motivation. Situation Challenge Managing human performance is becoming increasingly difficult. Globalization Digitalization Information Overload Ambiguity & Uncertainty Financial performance: depends on achieving excellence in human performance.

3. Motivation. Our Prediction Revolution in leadershipdevelopment, shaped by explosion in behavioral sciences.

4. Behavioral leadership.

5. Behavioral science: New implications for leadership. Science Behavioral Economics Behavioral Decision Making Cognitive & Social Psychology Neuroscience Workplace Reflexive, default repertoires. 1 Prone to bias, error. 2 Predictable: Most people, much of time. 3

6. Married and looking. Stefan is looking at Ana... …but Ana is looking at George. Stefan is married, but George is not. Q: Is a marriedperson looking at an unmarriedperson? Stanovich, Toplak & West (Winter, 2010), Rotman Magazine.

7. What’s the correct answer?Is an unmarried person looking at a married person? Ana (?) George (unmarried) Stefan (married)

8. The thinking managers do, every day. If we do__, likely that competitors will __, and customers will __, leading to __, which could then… However, if we… If disagree with him openly in the meeting … he is likely to feel ___ , which may cause him to react by _____ …limited time …under pressure

9. Mindware: 100 billion neurons, why so difficult? Too Small Poor Multi-Tasking “CEO” of Thinking Working Memory Cognitive Limitations. Our brains: developed for world that no longer exists. Low Power Long-Term Memory Noisy Sneaky Mental Attention Emotional System Gospik, Mohlin, et al ( 2011), PLoS Biology.

10. Mindware we use to think & reason is very limited. Behavior Matters

11. Situation: Dealing with uncertainty. 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

12. What do people do? Getting More Giving Up

13. Negatives hurt 2-3x as much as positives please. Daniel Kahneman 2002 Nobel Prize in Economics. Behavior Matters

14. Situation: The words we use. How longwas the last movie you saw? short

15. Not just whatwe say, but how we frameit. Behavior Matters

16. Judging events: What do we remember? Q: Next week, which do you prefer to repeat? Not told about time or temp – just feel the pain! 60 secs Cold Water (-9°C) 60 secs +30 sec, -8°C Cold Water (-9°C) Kahneman, Frederickson, et. Al. (1983), Psychological Science.

17. What actually happens not same as what gets remembered. Behavior Matters

18. What does this have to do with leadership? How can employee engagement be increased? BEHAVIOR Not intuitive Need to understand it How can teams achieve extraordinary results? How should managers deal with uncertainty? How do managers really motivate others to change? How can senior managers communicate vision? What factors really drive customer satisfaction? How can management decision making be improved?

19. Behavior, but at what level? Knowingwhat. + Knowinghow. Leadership Outcomes Leadership Activities Knowing What Knowing How  + Success

20. Prediction: Behavioral training, at a deeper level. Knowingwhat. + Knowinghow. Leadership Outcomes Leadership Activities + Beingable. Leadership Behaviors

21. Prediction: Behavioral training, at a deeper level. Leadership Outcomes Knowing what to achieve. Successful Change • Strategic Vision • Engagement … Leadership Activities Knowing how to achieve. Motivating Teams • Building Consensus • Influencing… Leadership Behaviors Being able to achieve. Cognitive + Emotional + Social Behavioral Intelligence.

22. Behavioral Fitness: Ability to make best practices happen. Outcome: Lead successful change effort. Training: “Leading Change” Activity: Convince a person to join a coalition to lead the effort. Training: “Interpersonal Influence Tactics” Situation: Meeting with person, try to influence them to take part. Training: “Behavioral Fitness” You Behavioral Toolbox Faster Reasoning Greater Cognitive Control Better Self Awareness/Regulation Better Multi-Tasking Other Person

23. Behavior: Need to understand it, need to train it. Yourself Impact Best-practices, put into practice. Best Practices What / How Your Team BEHAVIORAL TOOLBOX Your Organization

24. Behavioral Leadership: Science of optimal human performance. Leading Self Behavioral Fitness Leading Others

25. Training in behavioral fitness… just beginning. New training paradigms… …to enhance IQ and critical thinking. …to improve attentional focus and flexibility. …increased cognitive control and emotional regulation. …dealing with ambiguity and uncertainty. …reduce cognitive biases. …use positive emotion to enhance creativity and innovation. …accurately read behaviors of other people.

26. One key ingredient: Positive psychology. Fixing Problems Optimizing Performance Psychological Therapy Psychological “Fitness” Counseling Positive Psychology Clinical Cases Psychiatry Ok Illness Difficulty Good Great Extraordinary Human Performance

27. Positive Psychology: Moving to the bottom line.

28. Developments at IE in executive training. Translating behavioral science… …into practical training for managers. Behavioral Fitness Positive Leadership Executive Master in Positive Leadership & Strategy Behavioral Decision Making Dealing with Ambiguity Positive Methods for High Performing Teams Positive Approaches to Innovation & Creativity Executive Masters in Positive Leadership & Strategy

29. The time to capitalize on this trend is now. Positive Leadership Training Real Impact On Organization • Employee engagement & retention • Organizational innovation & creativity • Organizational resilience • Managing crisis and uncertainty • Many others…

30. Contacts. Lee NewmanJoaquínUríbarri WebLeeNewman.org ExecEd.ie.edu EmailLee.Newman@ie.edu Joaquin.Uribarri@ie.edu Twitter@NewmanLee@IEExecEd