apparent. Productivity improvements in almost every industry have
led to a worldwide overcapacity of almost everything from crackers
to jet engines. Overcapacity has shifted more power into the hands
of customers, who have learned to be more demanding. At the
same time, every market has grown more competitive as nearly
every product has been cloned as soon as it is released. Further-
more, the lines have become blurred between what in the past was
“sacred” internal information and what the consumer sees and
hears about the companies with which they choose to do business.
Simply log on to the Internet and see how much is available
through Web sites, chat rooms, and message boards. For most com-
panies, attracting and retaining knowledgeable people with pride
in their organization and the ability to execute at world-class
levels is the only path to future profitability.
This may mean that the search for a more effective way of lead-
ing inspired teams may no longer be optional. More effective lead-
ership may be the key strategic differentiator for most. Leadership’s
impact on the bottom line is dramatic. According to a study by the
Accenture Institute for Strategic Change, the stock price of com-
panies perceived as being well led grew 900 percent over a ten-year
period, compared to 74 percent growth in companies perceived to
lack good leadership.^3 In its 1998 roundup of America’s most
admired companies, Fortuneidentified the common denominator
of exemplary organizations. “The truth is that no one factor makes
a company admirable, but if you were forced to pick the one that
makes the most difference, you’d pick leadership.”^4 The time may
be fast approaching when leaders will be more motivated to look in
the mirror in search of ways to improve their abilities to lead. We
must be ready with a more concrete method if we hope to acceler-
ate the improvement process.
The challenges inherent in past methods are compounded
by our need to feel proud of our present activities. This has
led many of us to confuse the values that we espouse with the val-
ues that guide our day-to-day leadership actions. The process of
aligning our words and actions can help leaders challenge their
beliefs.
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