The following is a highlighted summary of the book, Building Leaders, published by Jossey-Bass.

The statements below are key points of the book as determined by James Altfeld and have been made available at no charge to the user.

Building Leaders How Successful Companies Develop The Next Generation By ay !" Conger and Beth Ben#amin
The New $mperative% Building &ffective Leaders Looking back in light of current leadership theories, today we might say that the leadership studies in those earlier years was in reality not leadership at all; rather, it was effective management. Change had to be more fundamental and more systematic. oreover, it had to produce results that satisfied not only top management but also the e!pectations of increasingly sophisticated and demanding shareholders. "o regain a competitive edge, firms would have to do a lot more than improve efficiency and tighten control, they would have to fundamentally change the way they viewed the world and conducted business. "his would mean transforming systems that had been in place for years, changing firmly established cultures, and modifying behavior that had long been rewarded with success. #ndeed, most managers remained too steeped in company traditions, power structures, and bureaucracies to advocate anything other than incremental$and therefore largely ineffective$change. %it became evident to many researchers that establishing clear goals and structuring incentives was only a small part of the overall leadership challenge. &nderstanding the organi'ation(s competitive environment, identifying the capabilities needed to compete, and taking appropriate actions to transform the organi'ation(s environment in favorable ways is what leadership was now about. Leadership would not 'e needed throughout the organi(ation" )nly with a strong cadre of leaders*strategically adept and interpersonally s+illed*would change of the scope and magnitude needed to transform a ma#or corporation 'e possi'le"

Leadership Development in the ,or+place #f you ask managers where they learned their leadership abilities, they will often tell you that their )ob e!periences and bosses have contributed the most. *arely will form training be mentioned, despite the number of programs being designed and implemented. %organi'ations themselves are often to blame. "hey fail to cultivate leadership talent in their )unior managers. "hey pay little attention to structuring )ob e!periences, do little to furnish appropriate role models, and rarely provide ongoing reinforcement and support for the skills and competencies espoused in training. %individuals who truly want to develop and change the organi'ation may ultimately leave in frustration. Certain individuals may possess leadership ability but simply choose not to e!ercise +Boyat'is, ,--./. 0ome may prefer less demanding responsibilities and may wish to avoid the hardships that accompany leadership roles. 1thers may feel uncomfortable challenging the status 2uo and prefer to conform and be accepted rather than take risks and push limits +Loevinger, ,-3./. Center for Creative Leadership +CCL/ "he study confirmed that )ob assignments, bosses, and hardships did indeed play the most pivotal roles in e!ecutive development and therefore presumably in leadership development. "he idea is that managers who work together on a challenging yet unfamiliar task will bring their individual e!periences to bear, share, reflect, and learn. "he approach is perhaps best e!emplified by designs used at 4eneral 5lectric(s management development facility at Crotonville, 6ew 7ork. 8 typical 45 program places developing managers in team9based e!periential e!ercises aimed at solving real9life problems with immediate relevance to the company +6oel and Charan, ,-33/. 8ction learning programs also reflect another%management development: the shift from individual to team9based training. %leadership development has become more broadly defined. 6o longer does it apply on to an individual manager(s ability to lead but also to the development of a leadership mind9set for the entire organi'ation. %new ob)ectives for leadership education: Creating dialogue, common vision, and shared commitments to facilitate effective organi'ational change 1rientation toward the bottom line #mparting relevant knowledge that can be applied immediately Building teams of leaders and leaders of teams ;isseminating leadership throughout the organi'ation

<roviding mechanisms and opportunities for self9development 8ligning management and support systems to promote and reinforce ongoing leadership development Developing the $ndividual Leader Because credi'ility and authenticity lie at the heart of leadership- determining and defining one.s own guiding 'eliefs and assumptions lie at the heart of 'ecoming a good leader" By focusing on the individual- providing structured feed'ac+- and prompting reflection- individual development programs can stimulate an important self/discovery process" %many of the best organi'ations we observed emphasi'ed different facets of leadership for individuals at different levels of development or in different functions or domains. 0There are some aspects of leadership that apply to everyone- regardless of ran+1 )n the other hand- leadership in some ways is not the same for the sergeant as it is for the colonel12There are3 uni4ue aspects of leadership that exist at the specific levels of leadership5" 6!rmy Leadership- 7889- p" iii:" 8lthough the 8rmy adheres to a single leadership framework across its entire military workforce, it recogni'es that leadership progresses along a continuum of roles and responsibilities and re2uires different skills and abilities as the leader advances. How National !ustralia Ban+ Develops Leaders $t was decided that the program should focus principally on three +ey dimensions of Leadership% contact- clarity- and impact" Contact refers to competencies that involve a leader.s a'ility to 'e in touch with themselves- their 'usinesses- and their teams" Clarity has to do with the idea that leaders must 'e pathfinders who set new directions for their organi(ations and teams; they need to provide clarity a'out future goals and directions for their organi(ation" $mpact refers to whether the actions and ideas of the leader influence others" <nder these three categories came ten core leadership 'ehaviors and characteristics 6see &xhi'it ="7:" "he emphasis, then, was primarily on helping individuals develop themselves as leaders. &xhi'it ="7" National !ustralia Ban+ Leadership Competencies 7" $mpact >lexi'le and adapta'le Committed to ma+ing a difference Communicates with impact ! clear service orientation ?" Clarity $ntellectually ro'ust Constantly extends 'usiness +nowledge @ecogni(es the imperative for change and creates new directions =" Contact

Strong self/regard !cts with integrity Brings out the 'est in people @eprinted with permission" ,. =. >. ?. a series of three self9directed learning e!ercises a one9day introductory seminar a si!9day residential workshop a team9based learning pro)ect focused on understanding competitive issues facing the bank @. a concluding seminar and A. several follow9up initiatives in the form of an alumni network, e!ecutive feedback on the pro)ects, and participant self9evaluations on behavior shifts over time. %participants received an assignment to be conducted on their own. %self9directed learning module %they were given an overview of the program, readings on leadership, a video on leadership, and the bank(s global strategic agenda. Be knew that most people here think of leadership as a Cstorm9the9hill( activity$led from the front. Be wanted them to think much more about it as a relationship between people and why leadership is so important to the 6ational at this point in time. "he ob)ective was to get the participants thinking more deeply about leadership and themselves. <articipants were asked to consider the success factors for high9performing teams. "he workshop was built around four learning goals: strategic issues facing the bank, leadership competencies, interpersonal relations, and teamwork. <articipants learned the basics of team dynamics. Dow does my behavior shape how # influence others in teamsE Bhat patterns of my behavior come out under pressureE 8re these valuable or a hindranceE Sociali(ing Company Aision and Aalues Leaders inculcate these assumptions by building a shared understanding of what the organi'ation is about and how it should operate. Be often refer to this understanding as the organi'ation(s culture. %most people follow the e!ample of their leaders$adopting their values and imitating their management styles.

"hrough an e!tensive sociali'ation process, developing leaders learn and internali'e the 8rmy(s leadership creed through years of direct interaction with more e!perienced leaders. "his interaction not only demonstrates consistency in values across levels of hierarchy and occupational specialties but also demonstrates a shared commitment to teaching and developing subordinates. #ndeed, the training and professional development of officers is considered one of the most important responsibilities of all 8rmy leaders +&0 8rmy, ,--F, non9draft version/. %clarifies and reinforces the 8rmy(s vision and values along with the duties and e!pectations associated with carrying them out at each level of management. "he 8rmy maintains that through this integrated system it builds a common understanding of the character, attributes, and skills that its leaders are e!pected to possess and a shared dedication to the values and ethics that drive its culture and operations. The $mportance of Sociali(ing the Next Generation of Leaders 8 shared understanding of what the organi'ation is about and where it is going to especially important in a world marked by rapid change and rising competition. $n the sociali(ation process- leaders play a dual role" )ne one hand they influence the sociali(ation of all those 'elow them- 'ut on the other hand they too must 'e sociali(ed to the organi(ation.s vision and to their role in 'ringing the vision to fruition" 1leaders- li+e other organi(ational participants- re4uire sociali(ation" >ormali(ing the Sociali(ation Brocess Through Leadership Development #n general, leaders work to achieve two basic ob)ectives: to come up with the strategies or solutions needed to overcome organi'ational challenges and to implement those solutions efficiently and effectively. "o improve implementation efforts, organi'ational leaders can systematically pay attention to important initiatives, measure and control outcomes associated with desired strategies, provide rewards and recognition to those who accomplish strategic goals, and role9model behavior consistent with chosen solutions. )f the firms we studies that recogni(ed the importance of a strong vision and guiding philosophy- almost all recogni(ed that leadership would 'e a dominant force in driving and sustaining their corporate visions through the rest of the organi(ation" Because of the critical role that leaders would play in this processthese firms were extremely selective a'out the individuals they enlisted in their development efforts" $n essence- participants were expected to 'e missionaries" %many of the 8rmy(s leadership development programs are also highly selective, especially at the senior levels. Gor e!ample, a ;epartment of 8rmy 0election Board

determines who will attend senior officer training at the &0 Command and 4eneral 0taff College. 8mong the most e!tensive selection processes we e!amined was Gederal 5!press(s Leadership 5valuation and 8wareness <rocess +L58</. 8t Gederal 5!press, leaders are e!pected to cultivate a people9first environment. "he firm(s guiding philosophy is that when people are placed first, they will provide the highest possible service, and profits will follow +8merican anagement 8ssociation, ,--?/ 1nce in a management role, they have the opportunity and responsibility to participate in the re2uired and elective courses offered by the Leadership #nstitute. L58< is a thorough evaluation process that involves multiple steps and re2uires participants to be evaluated by their supervisors, peers, and a formal assessment panel. "he evaluation process +8merican anagement 8ssociation, ,--?/ entails the following: 8ttendance at an introductory on9day course entitles #s management for meE Compilation of an employee(s leadership profile. Gormal assessment by the superior +the anager(s Gocused *ecommendation/. Gormal assessment by peers. Gormal evaluation by the L58< <anel ,. Charismatic Leadership Charisma derives from the ability to see what is really important and to transmit a sense of mission to others. #t is not e!clusively the province of world9class leaders or a few generals or admirals. #t is found in people throughout business organi'ations and is one of the elements that separates an ordinary manager from a true leader. #ndividuals who are charismatic leaders serve as symbols of success and accomplishment to others. "hey make others enthusiastic about assignments, command respect, and have a sense of purpose. 0ubordinates have faith in charismatic leaders and are proud to be associated with a leader whom they trust to overcome any obstacle. 8 charismatic leaders instills pride, faith, and respect among subordinates. =. #ndividual Consideration anagers who practice the individuali'ed consideration concept of transformational leadership treat each subordinate as an individual and serve as coaches and teachers through delegation and learning opportunities. "hey avoid treating subordinates alike. "hey discover what motivates each person individually and act on this discovery. "hese leaders have a developmental orientation toward followers and consciously or unconsciously serve as role models. "hey also show appreciation and give special attention to newcomers and those who appear neglected. >. #ntellectual 0timulation

"he importance of a leader(s technical e!pertise and intellectual power is fre2uently overlooked, particularly in high9performing organi'ations, because of the emphasis placed on interpersonal skills. Dowever, intellectual stimulation is vital part of leadership that: 8rouses an awareness in subordinates of problems and of different methods by which to solve them <rovides compelling and convincing reasoning and evidence. 0tirs imaginations. <romotes thought and insight prior to actions rather than immediate, emotionally stimulated reactions. ?. Courage Leaders stand up for unpopular ideas: they do not avoid confrontations by giving in to pressure. "hey are willing to give negative feedback to subordinates and superiors. 8 leader has confidence in his or her own capability, desires to act independently, and does the right thing for the company or subordinates in spite of personal hardships or sacrifice. @. ;ependability Leaders follow through and keep commitments, meeting deadlines, taking responsibility for actions, and admitting mistakes to superiors. Leaders work effectively with little or no contact with supervisors, but keep supervisors informed of progress. A. Gle!ibility Leaders function effectively in a changing environment, provide stability, and remain ob)ective when confronted with many responsibilities at once. Leaders handle several problems simultaneously, focusing on critical items. 8 leader changes course when re2uired. F. #ntegrity Leaders adhere to a code of business ethics and moral values, behaving consistently with the corporate climate and professional responsibility. 8 leader does not abuse management privilege, but gains trustHrespect. 8 leader serves as a role model in support of corporate policies, professional ethics, and corporate culture. 3. Iudgment 8 leader uses logical and intellectual discernment to reach sound and ob)ective evaluations of alternative actions. ;ecisions are based on logical, factual information and consideration of human factors. 8 leader knows his or her own authority and is careful not to e!ceed it, and uses past e!perience and information to gain perspective on present choices. -. *espect for 1thers

8 leader honors rather than belittles the opinions or work of others, regardless of their status or position in the organi'ation. 8 leader demonstrates a belief in each individual(s value regardless of background, culture, or other similar factors. )rgani(ational Needs !ssessment- Tailored Content and Design 1rgani'ational analysis involves the assessment of the firm(s short9 and long9term strategic goals, as well as the trends e!pected to affect those goals. 8rea 5ffectiveness 0urvey "he survey asked partners to evaluate how effectively their area leaders communicated the firm(s vision to line partners and staff, involved others in planning and decision9making processes, and worked across organi'ational boundaries to align systems and eliminate barriers. #t is crucial therefore for the success of any sociali'ation program that the organi'ation possess a vision and value set that are reasonably well articulated and lived out. #n five9day sessions with nine high9potential )unior e!ecutives, 5nrico teaches about his personal philosophy of lending and the importance of building businesses as a core leadership competency. Crystalli(e Theories into &xplicit Codels- !ttri'utes- and Behaviors &nrico distilled his leadership experiences into a model 'uild around several ma#or themes" Simple and to the point- five +ey themes were identified% 7" Thin+ different terms% The central idea is that leaders must constantly 'e wor+ing on 'ig ideas that provide a competitive edge for the organi(ation in its future" $ncremental changes are insufficient for long/term success" These continuous improvements are valua'le- 'ut thousands are re4uired to drive the 'usiness" $t is through 0'ig changes to 'ig things5 that an organi(ation 'uilds the 'usiness" Coreover- effective leaders continually search for the 'ig ideas" $t is a continuous process" ?" Develop a point of view% Leaders must have a clear point of view" They are a'le to pinpoint and crystalli(e the opportunities into ideas" These ideas arehowever- 'ased on solid evidence and a 'elief in them is shared 'y important constituencies throughout the organi(ation" =" Ta+e it on the road% &ffective leaders sell their ideas throughout the organi(ation to get 'uy/in" But 'efore ma+ing the grand sell- they test mar+et them on smaller groups of constituents who provide critical feed'ac+ and help in developing the initiative" &nrico li+es to call this testing phase 0going off Broadway 'efore you go to Broadway"5 This is also a time to test whether the language used to descri'e the idea evo+es interest and passion"

D" Bull it all together% )nce the idea is crystalli(ed- the leader then must translate it into a clear vision- esta'lish the right measurements- gain commitment from important sta+eholders and effectively anticipate and deal with resistance" E" Ca+e it happen% >inally- leaders must communicate their vision using clearvivid messages that 'oth motivate and provide direction" This also involves identifying the +ey constituencies that need to support the initiative- enrolling them- and getting into place the processes and support systems that would give the efforts staying power" How >ed&x and BepsiCo Sociali(e Aision and Aalues 8t Gederal 5!press, if you have the title of manager, that means you also have to be a leader%because all of our managers are responsible for people. 7ou(ve got to listen to that voice Jof leadership withinK. #t(s called common sense. #t(s called conscience. #t(s called the right thing. Be at Gederal 5!press have given you that special trust and confidence as a leader. Be need to get this message out to company managers. Servant Leadership Leaders work for their staffs, not the other way around. Case Study% BepsiCo.s Building the Business Brogram ;uring the course of the program, each participant develops and refines a personal vision for their pro)ect, as well as an action plan for its implementation. Brogram Description That evening or the very next morning all participants must deliver an 0elevator speech"5 &nrico explains- 0$magine you have #ust gotten into an elevator" Fou have three minutes to the top" $n that three/minute period- you need to convey the essence of your pro#ect and why it.s so important to the group who you are imagining in the elevator with you"5 This exercise is used 'y &nrico to drive home the notion that unless an individual can articulate the essence of their pro#ect in less than three minutes then they need more wor+ to crystalli(e their vision" &nrico.s message is straightforward% 0This is how things get done" Fou don.t wait for some'ody to tell you to do something" Fou don.t even have to wait for someone to tell you it is o+ay to do something" Fou figure it out and you ma+e it happen" $t is time to get your own agenda and to figure out how to drive it"5 This is not a remedial course 'ut a 0ta+e/it/to/the/next/level5 course" His goal is to graduate a group of change agents who understand that the 'iggest value they 'ring is driving productive change" The purpose of the course is to give them some new ways to thin+ a'out how to effectively drive change"

Central to the learning experience is the opportunity to simply hear and learn from &nrico" Guestions to him are an essential part of the learning" No 4uestion is off limits- and discussions are direct and candid" !fter this introduction- &nrico then focuses on how the division presidents descri'e 0running their 'usinesses5 versus 0'uilding their 'usinesses"5 @unning the 'usiness is the role of managing; 'uilding the 'usiness is the role of leadership" 15ta+e 'ac+ the streets5 to emotionally convey the necessity of >rito overcoming its eroding mar+et share" 0Ta+e 'ac+ the streets5 "he final part of the program is devoted to lessons on how to make change happen. Strategic Leadership $nitiatives Business leaders today face a marketplace characteri'ed by change and growing comple!ity. &nfortunately, many leaders have discovered in the midst of this sea change that they are ill9prepared to respond to$let alone lead$this change. 6o longer will senior leaders be able to rely on the top9down command9and9control tactics of the past, for these work only when the organi'ation(s environment is relatively stable and when directives can be well defined. Leaders throughout the organi'ation$not )ust at the top$must be able to create strategy and lead change. %leadership development serves a dual purpose: it builds critical capabilities while at the same time achieving real9time business needs. !ccording to Harvard Business School professor ohn Hotter 6788I:- the organi(ation.s need to deal with its growing 'ureaucracy causes it to focus primarily on monitoring and managing internal operations rather than adapting to external demands" !n emphasis on management*the set of processes that +eeps existing systems running smoothly*rather than leadership*the set of processes that initiates and adapts the organi(ation to significant change* 'ecomes ingrained in the very fa'ric of the corporate cultures" %managers had become stronger in management skills than in leadership skills and that many had become overly confident and somewhat complacent. ! New @ole for Leadership Development %leadership development programs aimed at strategic intervention seek to advance five very different ob)ectives:

,. =. >. ?. @.

"o facilitate a unified, collective understanding of the firm(s strategic vision "o e!pedite large9scale change "o ensure the immediate application of useful knowledge "o build depth of leadership talent "o achieve measurable results that meet the bottom line

Bidespread involvement is a necessity. 8ll managers and employees must take ownership of a new vision and apply it to their daily decision. #n short, strategic thinking capabilities must be distributed throughout the corporate hierarchy. %it doesn(t take long to determine that hiring five faculty members or consultants to design and teach an in9company program for several hundred managers is less e!pensive than sending each of those managers to a one9week session at a prestigious university or commercial program. %leadership development programs that seek to facilitate strategic change have a number of common design elements. "hese elements include a well9articulated strategic framework, sophisticated assessment processes, content customi'ed to promote strategic ob)ectives, learning organi'ed around e!ecutive cohorts, curricula designed to elicit collective dialogue, trained facilitators, and active feedback processes. 7" Strategic >ramewor+ Drives Brogram Content "he single most important feature of any leadership development program designed to facilitate large9scale change is a clearly articulated framework that guides the firm(s collective efforts. ?" <p/>ront !ssessment of the )rgani(ation.s Learning Needs "o be effective, strategic intervention programs must be preceded by an in9depth assessment of the organi'ation(s learning needs. "his ensures that program designs directly address critical obstacles and dilemmas facing the implementation of the firm(s strategic goals. D" Curricula Designed to &licit Collective Dialogue Between <nits and !cross levels Collective dialogue across functions and between levels is particularly important for developing a common understanding of a firm(s larger vision, and in turn a shared interpretation of how that vision can be adapted at the local level. I" !ctive >eed'ac+ Cechanisms 1ne program we studies was structured to allow e!tensive interaction between the organi'ation(s new C51 and the top ,?. or so leaders that make up its 0enior Leadership Council.

=" Cultiple )pportunities for @eflective Learning Geedback and reflection should be focused around the many different levels of learning that are occurring for the participant and their organi'ation. #n the better9 designed programs, reflective learning opportunities are not only targeted at what was learned through the pro)ects themselves but also on the person approaches and styles of the individual team members. Dere are several topic areas for reflective learning that should not be overlooked: Dow do our findings confirm or disconfirm our e!isting notions of our marketplaces +competitors, customers, suppliers, governments/E 1ur e!isting notions of our organi'ation and its capabilities and shortcomingsE Bhat am # learning as a participant about business strategy, leadership, organi'ational change, innovation, global markets, and so onE Dow effective are our group(s processes for accomplishing the pro)ect taskE Dow effective am # as a team member in terms of my personal style, contributions, teamwork, initiative, decision9making approach, and so on. Bhat am # learning about how other functions, business units, and the corporate center operate, and their distinct needsE +Bhen the pro)ect is completed/ Bhat could we as a team and # as an individual have done differently to make the process more effectiveE Dow could # have improved my own contribution and performance within the team settingE

"he above summary has been provided to you compliments of 8ltfeld, #nc.