LEVELS OF LEADERSHIP

INTRODUCTION
1. Human activity can be thought of as occurring at three
levels:
– Level One activity: observable behavior
– Level Two activity: conscious thoughts, not outwardly
observable
– Level Three activity: Values, assumptions, beliefs and
expectations (VABEs), not outwardly observable and only partly
conscious to the subject
2. Conclusions based on another person’s Level Two or
Three behavior can never be precise, because the
activity is not directly observable.
3. But effective leadership must take into account Levels
Two and Three.
 BODY, HEAD AND HEART
1. Level One activity, directly observable, can be likened
to the body.
# Most managerial systems since the beginning of the Industrial
Revolution have focused on Level One: on influencing
observable behavior alone
# In the Information Age this approach has become obsolete
2. Level Two activity, one’s conscious thoughts, can be
likened to the mind.
3. Level Three activity, VABEs, can be likened to the
heart.
# Highly culture- and family-specific
# An effort required to become fully aware of one’s own VABEs
4. All three levels of activity influence one another.
 CONNECTING THREE LEVELS TO
SCHOLARLY VIEWS
• The three-level view of human activity
corresponds to Schein’s three levels of
cultural manifestations:
– artifacts,
– exposed values, and
– underlying assumptions.
 LEARNING LEVEL THREE
LEADERSHIP
1. Many people in leadership positions employ Level One
leadership: the “carrot-and- stick” approach
2. But different people value different rewards, a fact that
undermines this approach and calls for an inquiry into
unobservable, internal processes
3. Also, the constant threat of punishment for non-
compliance does not inspire quality performance.
4. Moreover, our definition of leadership holds that the
willingness of followers to follow is essential. Level One
leadership leaves willingness questionable.
 THE STRONG HISTORY OF LEVEL
ONE LEADERSHIP
1. Level One leadership was very effective for
many years: economies were expanding, labor
was plentiful, and stable markets made it
possible to view labor as a commodity.
2. But today rapid change and fierce competition
have made Level One leadership insufficient
3. New management principles (TQM, etc.) will
fail if other aspects of the organization—reward
systems, training, operating cultures—are not
targeted at Levels Two and Three.
 THE FOCUS OF LEVEL THREE
LEADERSHIP
1. Whereas Level One leadership aims for movement,
Level Three leadership seeks engagement.
2. Level Three leadership proposes that offering workers
rewards beyond a monthly paycheck—rewards which
tap into their VABEs—will inspire greater performance
and lead to enhanced customer satisfaction
3. Level Three leadership, especially at the outset, calls
for greater effort on the leader’s part than Level One
4. But Level One will not keep an organization competitive
in today’s environment
 THE DARK SIDE POTENTIAL OF LEVEL
THREE LEADERSHIP AND
ENGAGEMENT
• The commitment and enthusiasm which
Level Three leadership inspires can lead
to an undesired outcome at the individual
level: overwork and burnout.
 ORGANIZATIONAL IMPLICATIONS

• Level One, Two and Three leadership can

also be examined from an organizational
perspective.
 APPLYING LEVEL THREE LEADERSHIP
AT BOTH THE INDIVIDUAL AND
ORGANIZATIONAL LEVELS
1. Level Three leadership depends on the
alignment of the central features of all
three leadership levels
2. When there are variations across levels
— between what people or organizations
do, think, and feel — leadership
becomes ineffective
 Levels in Personal and Organizational
Analysis
Level Personal Organizational
One Visible behavior Artifacts, buildings, physical
things, and the “walk” and
the “talk”
Two Conscious thoughts Espoused theories, the
thoughts that support the
“talk,” rituals, ceremonies,
fads, systems, routines,
processes
Three Values, assumptions, Theories in action, the
beliefs, and underlying assumptions
expectations that generates “walk”
 Some Common Techniques Employed
at Levels One, Two, and Three
Level of Influence technique Usual impact
intended
influence
Level One: Orders, Commands, Threats, L1: Short-term compliance,
Visible Behavior Intimidation, Incentives, possible sabotage, passive
Bonuses aggression
L2: Obligatory agreement
L3: Anger, resentment
Level Two: Arguments, Rationale, Data, L1: Short-term compliance
Conscious Citations, References, L2: Begrudged agreement
Thought Evidence, Manipulation L3: Anger, resentment,
resistance
Level Three: Visioning, Purpose definition,
L1: Commitment
VABEs honesty, openness, emotional
story telling, anecdotes,
tender emotions