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A Clarion Call to Emerging Leaders: Step Up and Lead Now!

In True North: Emerging Leaders Edition, renowned leadership expert Bill George and Millennial tech entrepreneur Zach Clayton issue the challenge to emerging leaders—from Gen X to Millennials and Gen Z—to lead their organizations authentically through never-ending crises to make this world a better place for everyone.

Emerging leaders do so by discovering their “True North”—who they are—and then finding their “North Star”—their leadership purpose. To navigate today’s complexities, George and Clayton show emerging leaders how to lead with their hearts, not just their heads, with passion, compassion, and moral courage by being true to their values to reach their full potential as they take on great challenges and navigate complex issues.

Harvard professor Bill George, with four best-selling books to his credit including the timeless classic True North, is the former CEO of Medtronic who established authentic leadership in 2003. He teams up with Zach Clayton, an emerging leader still amid his own leadership development journey, to give emerging leaders the definitive guide for leading in today’s complex world.

The Emerging Leader Edition is filled with dramatic stories from successful leaders such as Microsoft’s Satya Nadella and Merck’s Ken Frazier to PepsiCo’s Indra Nooyi and General Motors’ Mary Barra, and emerging leaders like OneTrust’s Kabir Barday and Kanbrick’s Tracy Britt Cool of how they overcame great challenges to build highly successful organizations.

The book offers concrete suggestions for:

  • Becoming an authentic leader, equipped to lead inclusively with moral clarity through challenges and crises
  • Cultivating regular introspection to ground yourself with self-awareness, live your values, and use your unique strengths
  • Integrating all aspects of your life—including who you are at home, at work, and in the community
  • Understanding how Millennials are leading more effectively in today’s world
  • Being an inclusive leader prepared to take on fraught issues like stakeholder challenges, racial and sexual equality, and sexual misconduct
  • Knowing when—and how—leaders should speak out on today’s complex public issues

The Emerging Leader Edition of True North is the classic guide for every current and aspiring leader to reach their full, authentic potential.

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Veröffentlichungsjahr: 2022

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Table of Contents

Cover

Title Page

Copyright

Dedication

True North Series

Foreword

Introduction A Clarion Call to Emerging Leaders

Your True North and North Star

The End of Command‐and‐Control

Authenticity: The Gold Standard for Leaders

Navigating the Emerging Leader Edition

Part One: Discover Yourself

1 YOUR LIFE STORY

Kabir Barday: A Phoenix Arises from a Hospital Bed

Reframing Your Life Story

Phases of Authentic Leadership

Phase I: Preparing for Leadership

Phase II: Peak Leadership

Phase III: Generativity

Emerging Leader: Zach Clayton's Take

Bill's Take: My Journey to Leadership

Idea in Brief: Your Life Story

2 CRUCIBLES SHAPE YOUR LEADERSHIP

Ping Fu: Bend but Not Break

Crucibles of Leadership

Posttraumatic Growth

Emerging Leader: Abby Falik

Bill's Take: Coping with Tragedy

Idea in Brief: Crucibles Shape Your Leadership

3 LEADING WITHOUT TRUE NORTH

Mark Zuckerberg: Leading without a Moral Compass

Why Leaders Lose Their Way

Derailing: Fearing Failure yet Craving Success

Five Archetypes of Derailing

The Loneliness of Leaders

Emerging Leader: Elizabeth Holmes

Bill's Take: My Moral Compass Kept Me in Check

Idea in Brief: Leading without True North

Part Two: Develop Yourself

4 DEVELOP SELF‐AWARENESS

Satya Nadella: “Know‐It‐Alls” to “Learn‐It‐Alls”

The Journey to Self‐Awareness

Peeling Back the Onion

Developing Self‐Compassion

Emerging Leader: Davis Smith

Bill's Take: Feeling Good in My Skin

Idea in Brief: Develop Self‐Awareness

5 LIVE YOUR VALUES

Ken Frazier: Demonstrating Moral Courage

Values, Principles, and Ethical Boundaries

Organizational Values

Set Ethical Boundaries

Testing Your Values under Pressure

Emerging Leader: Jonathan Lee Kelly

Bill's Take: Testing My Values

Idea in Brief: Live Your Values

6 FIND YOUR SWEET SPOT

Warren Buffett Found His Sweet Spot

Intrinsic and Extrinsic Motivations

Recalibrate Your Motivations

Avoid Focus on Extrinsic Motivations

Finding Your Sweet Spot

Success versus Significance

Emerging Leader: Tracy Britt Cool

Bill's Take: Finding My Sweet Spot at 46

Idea in Brief: Find Your Sweet Spot

7 LEAD AN INTEGRATED LIFE

John Donahoe: Living an Integrated Life

Setting Ground Rules

Managing Dual Careers

Create Well‐Being in Mind, Body, and Spirit

The Flexible Workplace

Emerging Leader: Martha Goldberg Aronson

Bill's Take: Knocking Down Artificial Walls

Idea in Brief: Lead an Integrated Life

Part Three: Lead People

8

I

TO

WE

Nelson Mandela: Seeking Reconciliation

Hero's Journey to Leader's Journey

Emerging Leader: Anjali Sud

Bill's Take: My Long Journey from

I

to

We

Idea in Brief:

I

to

We

9 YOUR NORTH STAR

Hubert Joly: Finding His North Star

Pursuing Your North Star

Align Your Organization around Purpose

Making Purpose Real

Emerging Leader: Rye Barcott

Bill's Take: Aligning My Work and North Star

Idea in Brief: Your North Star

10 THE LEADER AS COACH

Engaged Leaders Coach Their Team

Mary Barra: Coaching Changes Culture

Care: Build Understanding and Trust

Organize: Get People Playing as a Team

Align: Unite People around a Common Vision

Challenge: Summon People's Best

Help: Solve Problems and Celebrate Success

Coaching at the Right Altitude

Your Leadership Style

Emerging Leader: Robert Reffkin

Bill's Take: Applying the COACH Framework

Idea in Brief: The Leader as Coach

Part Four: Navigate Today's Challenges

11 INCLUSIVE LEADERSHIP

Ursula Burns: Where You Are Is Not Who You Are

George Floyd's Murder Ripped the Bandage Off

Diversity Is Necessary but Not Sufficient

Emerging Leader Profile: Murisiku Raifu

Bill's Take: Time to Act against Discrimination

Idea in Brief: Inclusive Leadership

12 LEADING IN CRISIS

Indra Nooyi: Performance with Purpose

Leading through Crises

Emerging Leader: Jenn Hyman

Bill's Take: Crisis Is the Real Test for Leaders

Idea in Brief: Leading in Crisis

13 THE MORAL LEADER

Chip Bergh: Levi's Moral Leader

The New Stakeholder Capitalism

When Should Leaders Take on Public Issues?

Bill's Take: Your Leadership Makes the Difference

Idea in Brief: The Moral Leader

References

Introduction

Chapter 1

Chapter 2

Chapter 3

Chapter 4

Chapter 5

Chapter 6

Chapter 7

Chapter 8

Chapter 9

Chapter 10

Chapter 11

Chapter 12

Chapter 13

About the Authors

Acknowledgments

Index

End User License Agreement

List of Illustrations

Introduction

Figure I.1 Differences in 20th‐ and 21st‐Century Leaders

Figure I.2 Book Map: Part I, Part II, Part III, Part IV

Chapter 1

Figure 1.1 A Sketch of Bill's Leadership Journey

Chapter 3

Figure 3.1 Five Archetypes of Derailing

Chapter 4

Figure 4.1 Gaining Self‐Awareness

Figure 4.2 Peeling Your Onion

Figure 4.3 The Johari Window

Chapter 5

Figure 5.1 Defining True North, Values, Leadership Principles, Moral Courage...

Chapter 6

Figure 6.1 Extrinsic and Intrinsic Motivations

Figure 6.2 Finding Your Sweet Spot

Figure 6.3 Operating in Your Sweet Spot

Chapter 7

Figure 7.1 Integrating Your Life

Chapter 8

Figure 8.1 I versus We Leaders

Chapter 9

Figure 9.1 Hubert Joly's Career Lifeline

Figure 9.2 How Leaders Align Their North Star and Their Work

Chapter 10

Figure 10.1 The Leader as Coach

Figure 10.2 Levels of Involvement

Chapter 11

Figure 11.1 What You Are vs. Who You Are

Chapter 12

Figure 12.1 VUCA and VUCA 2.0

Figure 12.2 7 Lessons for Leading in Crisis

Chapter 13

Figure 13.1 Sustaining Growth and Performance

Part 2

Figure II.1 A Compass for the Journey

Figure II.2 Key Challenges of Leadership

Guide

Cover Page

Title Page

Copyright

Dedication

True North Series

Foreword

Table of Contents

Begin Reading

References

About the Authors

Acknowledgments

Index

Wiley End User License Agreement

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Foreword by David Gergen

BILL GEORGE AND ZACH CLAYTON

TRUE NORTH EMERGING LEADER EDITION

Leading Authentically in Today's Workplace

 

Copyright © 2022 by William George. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey.

Published simultaneously in Canada.

No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per‐copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, (978) 750‐8400, fax (978) 646‐8600, or on the Web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748‐6011, fax (201) 748‐6008, or online at http://www.wiley.com/go/permissions.

Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Further, readers should be aware that websites listed in this work may have changed or disappeared between when this work was written and when it is read. Neither the publisher nor authors shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

For general information on our other products and services or for technical support, please contact our Customer Care Department within the United States at (800) 762‐2974, outside the United States at (317) 572‐3993 or fax (317) 572‐4002.

Wiley publishes in a variety of print and electronic formats and by print‐on‐demand. Some material included with standard print versions of this book may not be included in e‐books or in print‐on‐demand. If this book refers to media such as a CD or DVD that is not included in the version you purchased, you may download this material at http://booksupport.wiley.com. For more information about Wiley products, visit www.wiley.com.

Library of Congress Cataloging‐in‐Publication Data is Available:

ISBN 9781119886105 (Hardback)

ISBN 9781119886129 (ePDF)

ISBN 9781119886112 (ePub)

Cover Design and Illustration: Wiley

Bill's Dedication

This book is dedicated to my family. First to my wife, Penny, whose love, passion for life, and wisdom have brought me great joy and made it all possible. To our sons, Jeff and Jon, and our daughters‐in‐law, Renee and Jeannette, who are making such important contributions to the world as emerging leaders. And finally, to our grandchildren, Dylan, Freeman, Stella, and Jade—future leaders who will make the world better for everyone.

Zach's Dedication

To my wife, Katie—who has brought greater joy, meaning, and love to my life than I ever dreamed—and to our wonderful children, Jack, Kent, Charlie, and Mary Katherine. We hope they will live authentically and find purpose in their lives through service to others.

TRUE NORTH SERIES

Authentic Leadership: Rediscovering the Secrets to Creating Lasting Value (2003)

True North: Discover Your Authentic Leadership with Peter Sims (2007)

Finding Your True North: A Personal Guide with Nick Craig and Andrew McLean (2008)

7 Lessons for Leading in Crisis (2009)

True North Groups with Doug Baker (2011)

Discover Your True North: Becoming an Authentic Leader (2015)

The Discover Your True North Fieldbook with Nick Craig and Scott Snook (2015)

Emerging Leader Edition of True North: Leading Authentically in Today’s Workplace

Bill George and Zach Clayton (2022)

Emerging Leader's Guide to True North with Josh Hall and Lauren Schwenk (2022)

Foreword

When Peter Drucker was in his prime, CEOs often traveled across the country to California to seek his counsel on how to lead and manage their companies. He was an iconic figure in the business world, the father of management studies, whose 30 books were highly influential in shaping modern global companies. As I found in conversation late in his life, he had a wisdom about him that was spellbinding.

Upon his death 10 years ago, people naturally asked, “Who will carry on Peter's work?” Soon it became apparent that the most obvious candidate was Warren Bennis, and once again, CEOs made the trek to California to meet quietly with one of the sweetest, wisest men I have been blessed to know. Warren was the father of leadership studies in American universities, the man who gave them academic legitimacy through his two dozen books, and the best mentor and friend one could possibly have.

Upon his death a year ago, the question naturally arose again: “Well, who will now carry on Warren's work?” With the publication of his most important book, the Emerging Leader Edition of True North, we may well have our candidate: Bill George. There are obvious differences: Bill himself would modestly point out that both Drucker and Bennis were lifelong scholars deeply schooled in theory; by contrast, Bill first made his mark as a highly successful CEO of a large company before becoming a major thought leader. Yet all three have been at the forefront in shaping leadership and management practices of successive generations.

By chance, Warren introduced me to Bill at the World Economic Forum in 2001. Bill was coming off his years as CEO of Medtronic and was beginning to pull together his thoughts and experiences about leadership so that he could share them with younger business leaders.

Soon Bill published his first book, essentially a memoir, titled Authentic Leadership, and it was quickly a best seller. Without realizing it, he had launched an entirely new career, one with even greater impact than his first. In reading the Emerging Leader Edition of True North, you will find not only a distillation of his ideas about leadership but also revealing portraits of a galaxy of more diverse leaders and what they have learned on their own journeys toward True North. This Emerging Leader Edition of True North bids to be a classic, standing alongside The Effective Executive by Peter Drucker and On Becoming a Leader by Warren Bennis. I am proud to call Bill a friend and trusted adviser—and to salute him on the completion of his best book.

Here's what is essential for a reader to understand: Most books that come from the academy are intended for a small audience of specialized scholars. That is the way advances in knowledge are often made. But non‐scholars wonder how they apply to them. Bill's ideas work well in practice and apply across the board, helping not only business leaders but those in the civic and public sectors as well.

Bill George's work—like Warren's and Peter's—intentionally crosses the bridge between the academy and practice. Through writing, teaching, and mentoring, he is helping leaders become better at leading themselves and, in turn, their organizations. At present more than two dozen CEOs of major global companies are calling on him regularly for counsel and advice.

The evidence shows that leaders from across the world are hungry to discover their True North and lead toward their North Star. At the Harvard Business School, Bill introduced his course, Authentic Leadership Development, as a second‐year elective in 2005. Students embraced it with growing enthusiasm, such that it has become one of the most popular courses at the school and attracts a growing number in executive education.

Bill's course has migrated to the Harvard Kennedy School (HKS), where I am a professor of practice and co‐director of our Center for Public Leadership. Dana Born, a retired air force general and the first woman in any military branch to gain flag rank while at a military academy, has just started teaching it, and once again students are responding with gusto. Moreover, Bill has introduced True North to an annual training program at the HKS for Young Global Leaders chosen by the World Economic Forum. They love it, especially the deep‐dive, small‐group conversations every morning over breakfast.

Altogether, some 10,000 men and women have now been trained at Harvard alone in Bill's ideas about authentic leadership. Longitudinal studies are not yet possible on how much it may have shaped lives and leadership, but anecdotal evidence points to encouraging results.

One group that has had lots of exposure to Bill and his work is students who have pursued joint degrees at HBS and HKS and in their third year have received scholarships from Bill and Penny George. These George Fellows, typically in their late 20s, have a home at our Center for Public Leadership and meet frequently, often with Bill and Penny. Bill generously mentors a number of them and remains close long after they have graduated. Altogether, the George Fellowship now has 100 alumni.

To be sure, many had transformative experiences that strengthened their leadership before they became George Fellows. Even so, their recent achievements have been impressive. Here are a few whom Bill continues to mentor:

Seth Moulton is the U.S. representative for Massachusetts 6th congressional district where he has served since 2015.

Maura Sullivan is vice president of operations for Ginkgo Bioworks, making COVID‐19 tests accessible to kids across America.

Jonathan Lee Kelly is founder at Asymmetric Holdings, a firm focused on delivering meaningful customer experiences in the restaurant industry.

Rye Barcott is cofounder and CEO of With Honor, a nonprofit dedicated to promoting veteran leadership to public service, and is author of

It Happened on the Way to War

.

John Coleman is managing partner at Sovereign's Capital and coauthor of

Passion & Purpose

.

Peter Brooks is cofounder and CEO of Sylmar Group, a water and wastewater company that protects public health and the environment.

Nate Fick is general manager of security for Elastic, an enterprise security company, and author of

One Bullet Away

, a

New York Times

best‐seller.

Brian Elliott is founder of FriendFactor, advocacy platform for LGBTQ+ rights, and InReach Capital, a real estate investment firm.

Stephen Chan is chief of staff for Northeastern University and former vice president of strategy and operations at The Boston Foundation.

Claude Burton is cofounder and partner at SkyKnight Capital, a private equity company investing in market‐leading businesses.

Can there be any doubt that the ideas here apply to emerging leaders from every sector of life and across national boundaries?

As this Emerging Leader Edition is being published, the world faces a leadership crisis. Authoritarians have consolidated greater global power. Polarization defines our U.S. politics. Inequality threatens our economy and capitalism itself. Racial progress has stalled. The pandemic made apparent deep cleavages in society. For people everywhere, life becomes ever more volatile and unpredictable. Instead of putting a firm hand on the wheel, many leaders seem unable to steer toward safe ports in the storm. A 2021 Global Leadership Forecast survey from DDI found that only 11 percent of surveyed organizations reported having a “strong” or “very strong” leadership bench, the lowest rating in the past 10 years.

This book can help us find our way. If individual leaders can recognize when they have drifted away from True North and make successful course corrections, as Bill George argues, nations can as well. Surely, authentic leadership beats what we have now.

David Gergen, Cambridge, Massachusetts

IntroductionA Clarion Call to Emerging Leaders

Crises are hitting us from all directions. It is increasingly clear we need an infusion of strong, new leaders to help us navigate safely.

—David Gergen, Hearts Touched with Fire

The first two decades of the 21st century have careened from one crisis to the next. It started with the September 11, 2001, attack on the World Trade Center, followed by the bankruptcies of Enron and WorldCom, and many other unethical firms and the 2008 global financial meltdown. The second decade featured the demise of General Electric (GE), Boeing's mishandling of the 737 MAX crashes, the COVID‐19 pandemic, George Floyd's murder, the devastation of climate change, and, most recently, Russia's invasion of Ukraine.

At their core, these tragic events can all be traced to failed leadership.

The Emerging Leader Edition of True North is not an analysis of these crises or the leaders who caused them. Rather, this is a calling to you as emerging leaders of the next generations—Gen X, Millennials, and Gen Z—to step up and lead authentically by discovering your True North and following your North Star to make this world a better place.

In this book, we feature numerous stories of emerging leaders who are already making a difference, like Kabir Barday, Abby Falik, Tracy Britt Cool, and Rye Barcott, along with pioneers from the Baby Boomer generation, like Indra Nooyi, Ken Frazier, Mary Barra, Satya Nadella, Ursula Burns, John Donahoe, and Chip Bergh.

We are confident your cohort of emerging leaders will create a better world. We wrote this book to enable you to realize your full potential as an authentic leader who has a positive impact on others through your life and work. This book will challenge you to reflect on your leadership, your humanity, your values, and your purpose in life.

Wherever you live, whatever you do, this is your calling:

Make a positive impact on the world as an authentic leader:Discover your True North, and follow your North Star.

Your True North and North Star

Your True North is the moral compass that guides your actions, derived from your most deeply held beliefs, your values, and the principles you lead by. It is your internal compass, unique to you, that represents who you are at your deepest level.

Just as a compass points toward a magnetic pole, your True North points toward your North Star. Your North Star is the purpose that you pursue to make this world better for everyone.

When you discover your True North, you know yourself at the deepest level and can be authentic. When you have found your North Star, you are ready to pursue your purpose as your calling. This inner journey of knowing yourself is a prerequisite to the great outer journey of leading others. We challenge you to make this journey, both achieving your full potential and having a lasting positive impact on society.

The hardest person you will ever have to lead is yourself.

Many people do not know who they are. They are so focused on trying to impress others that they let the world shape them rather than shaping themselves into the kind of leaders they want to be. When you follow your True North, your leadership will be authentic and people will naturally want to associate with you.

As philosopher William James wrote a century ago,

The best way to define a man's character is to seek out the particular mental or moral attitude in which he felt himself most deeply and intensely alive. At such moments there is a voice inside which says, “This is the real me!”

Can you recall a time when you felt most intensely alive and could say with confidence, “This is the real me”? I had that feeling from the first time I walked into Medtronic and joined a group of talented people dedicated to the mission to “alleviate pain, restore health, and extend life.” I felt I could be myself and be appreciated for who I was and what I could contribute. I sensed immediately that my values aligned with the organization's values.

Whether you are leading a small team or a large organization, you will inevitably face pressure from external forces that challenge your values or attempt to seduce you with rewards. These pressures and seductions may pull you away from your True North. When you get too far off course, your moral compass tells you something is wrong. That's when you need to reorient yourself, which requires resolve to resist the constant pressures and expectations confronting you. As you are tested in the world, you yearn to look in the mirror and respect the person you see and the life you are leading.

This is not to say that authentic leaders are perfect. Far from it. All leaders have weaknesses, make mistakes, and are subject to human frailties. By acknowledging their shortcomings and admitting their errors, the humanity and vulnerability of authentic leaders comes through, and they connect with and inspire others to reach their full potential.

The End of Command‐and‐Control

In the 20th century, business schools instructed managers to build competencies such as leadership style and communication skills. Some authors took these ideas to the extreme, writing nonsense such as “strike a power pose when presenting” or “fake it until you make it.” What the competency‐based models missed is the importance of character. While your title makes you a manager, your character makes you a leader.

Most Baby Boomers accepted the rules of hierarchy, waiting their turn for senior leadership positions. They valued a company's financial stability, and their net worth grew as the postwar American economy soared. This era was particularly hard for professional women, since they often faced higher standards with little flexibility or acknowledgment of their lives outside the workplace.

In business, the 1980s and 1990s were typified by Jack Welch, the mastermind who made GE the most valuable company in the world and the epitome of 20th‐century leadership. Jack was passionate, competitive, financially driven, and highly successful. He spawned countless imitators who sought to copy his style. Search firms aggressively recruited GE managers to transform organizations, although many GE alumni who became chief executive officers (CEOs) ultimately failed.

When I was CEO of Medtronic, I felt at odds with many of my fellow CEOs who seemed to be more interested in their stock price and the amount of money they were making. As I concluded my term as CEO in 2001, I felt the predominant model of leadership was deeply flawed, as the media primarily judged leaders based on their charisma, leadership style, stock price, and compensation packages.

In 2008, public trust of business leaders fell to a 50‐year low following the global financial collapse. The harm the financial community caused for so many woke us up to the need to rethink capitalism—not just as a vehicle to make financiers wealthy but also as a way to create value for all stakeholders.

These crises taught emerging leaders lessons on what not to do. They watched as those in control chased money, fame, and power instead of serving others. They learned the perils of putting self‐interest ahead of the best interests of the institutions they led.

Authenticity: The Gold Standard for Leaders

When I wrote Authentic Leadership in 2003, I was surprised how often people asked, “What do you mean by authenticity?” In that era of charismatic leaders, many people were fearful of being themselves. The reality is that no one can be authentic by trying to be like someone else. You can learn from others' experiences, but you cannot be successful trying to be like them. People will trust you only when you are genuine and authentic.

The crises of the early 21st century led to a rethinking of leadership. By 2015, the Harvard Business Review heralded, “Authenticity has become the gold standard for today's leaders.” Now the hierarchical, directive leadership style so prevalent in the past century has been replaced by empowerment, collaboration, and authenticity. The old notion of leaders being the smartest guys in the room, as typified by Enron CEO Jeff Skilling, has been superseded by leaders with high levels of self‐awareness and emotional intelligence, such as Microsoft's Satya Nadella.

No longer is leadership about developing charisma, emulating other leaders, looking good externally, and acting in your self‐interest. Nor should you conflate leading with your leadership style, managerial skills, or competencies. These capabilities are but the outward manifestation of who you are. If you create a false persona or hide behind a mask, people will quickly see through you.

Authentic leaders are true to themselves and their beliefs. They engender trust and develop genuine connections, which enables them to motivate people to achieve high levels of performance. Rather than letting the expectations of others guide them, they are their own person and go their own way. As servant leaders, they are more concerned about helping others succeed than about their own success or recognition.

The rise of authentic leadership coincides with the arrival of emerging leaders. Gen X (born 1965–1980), Millennials (born 1981–1996), and Gen Z (born 1997–2012) expect different things from work and have different values, such as greater transparency and increased diversity. Whereas previous generations hesitated to openly discuss their personal lives or mental health in the workplace, emerging leaders cannot imagine closing off these parts of themselves.

Newer generations won't conform to a conventional work schedule: 9 of 10 Millennials say they prioritize work‐life balance. COVID‐19 only accelerated this trend, particularly with regards to increasing flexibility. In the post‐pandemic world, people insist on working for leaders who focus on their employees' well‐being, addressing such vital subjects as employee engagement, work‐life integration, mental health, workplace flexibility, and the social impact of their work.

Purdue researchers summarize the desires of the emerging generations:

They want companies to act more human. To have a greater purpose that speaks to connection and support. Meet their expectations for flexible working, better health care, but most importantly, help them keep the personal energy they need to survive and thrive when times get tough.

Dov Seidman, author of How and founder of LRN and The HOW Institute for Society, describes why these changes are necessary. He says leadership has morphed in recent centuries from “hands to heads to hearts.” In the industrial revolution, companies strove to maximize the output of people using their hands. In the past 50 years, the information revolution shifted the focus to data analysis, maximizing people's use of their heads. In the era that's developing, we are focusing on using our hearts.

Artificial intelligence will supplement the way we use our heads, but it will never take the place of essential leadership qualities of the heart such as empathy, passion, courage, values, intuition, and purpose. As leaders we must develop our hearts to grapple with complex challenges and dilemmas. Do you have these qualities of the heart? You need to cultivate them throughout your lifetime to be an authentic leader in today's world.

Ralph Lauren CEO Patrice Louvet summarizes the distinction between 20th‐ and 21st‐century leaders:

We have gone from leaders who expect everyone to serve them to servant leaders who see their role as serving the people they lead and represent. Our job as leaders is to create the conditions for our people to thrive and realize their full potential. Twentieth‐century leaders felt they had all the answers and knew exactly what to do. Twenty‐first‐century leaders are constantly learning, even if they have been on top for many years.

The big shift is from “command‐and‐control” to “empowerment with personal accountability.” The emerging generations won't tolerate the command‐and‐control model anymore. We drive the decisions down as close as possible to the customer and then hold people accountable for outcomes.

Figure I.1 clarifies the differences between 20th‐ and 21st‐century leaders.

To summarize the differences in a word—it's authenticity. Authentic leaders are characterized by truth‐telling, transparency, and trust.

Truth‐telling

. Of all the qualities required for authentic leaders, the one indispensable value is integrity: telling the truth. Without truth between people, there can be no authentic relationships. Organizations cannot function without integrity and the common basis that truth provides. Without honesty, organizations devolve into political jungles where charisma takes precedence over character—a guaranteed route to failure.

Characteristics

20th‐Century Leaders

21st‐Century Leaders

Philosophy

Command‐and‐control

Authentic leadership

Organizational approach

Hierarchical management

Empowering leadership

Image

Charismatic

Purpose‐driven

Motivation

Self‐interest

Institution's best interest

Experience

Perfect resume

Learning through crucibles

Time frame

Short‐term

Long‐term

Greatest strength

IQ

EQ

Personal measurement

External validation

Intrinsic contribution

Figure I.1 Differences in 20th‐ and 21st‐Century Leaders

Transparency

. In the 20th century, senior leaders often shared with their teams on a need‐to‐know basis. The internet and social media have completely changed people's access to information and expectations of transparency. No longer can leaders keep important information away from their stakeholders, as everything tends to come out eventually. To have an effective organization, information must flow freely—up, down, and sideways. Authentic leaders share the complete picture with colleagues. They don't expect perfection; they insist on openness.

Trust

. Trust emanates from truth‐telling and transparency as well as admitting your mistakes and exposing your vulnerabilities. Author Stephen M. R. Covey says high‐trust organizations earn a “trust dividend” because when people trust each other they make decisions and reach alignment faster. An essential part of your job as a leader is to build the trust of your employees and your customers in the quality of your products and services. Trust is not created by your words alone, but by your actions. To use the cliché, you must “walk the talk.”

By developing these three qualities—telling the whole truth, being fully transparent, and building trust with all your stakeholders—you gain credibility as an authentic leader.

Navigating the Emerging Leader Edition

To write the Emerging Leader Edition of True North, my coauthor Zach and I interviewed 50 leaders with an emphasis on the new generation of leaders. These interviews are in addition to the 172 leaders we spoke with for previous versions of the book. In our total of 222 interviews, we tapped into a collective wisdom about the art of leading people.

In this book, we describe leadership principles I learned during my career, starting as an individual contributor, then growing into a leader, and eventually rising to CEO of Medtronic. For the last 2 decades, I have been teaching leadership to executives and MBA students, coaching and mentoring leaders, and serving on corporate boards—experiences that have given me a deeper appreciation for authentic leaders in all walks of life. Zach, a 37‐year‐old Millennial, has spent the last 12 years in a different phase of his career—creating a digital media startup and growing it into a successful company with several hundred employees.

As a note, I'll use the pronoun “I” when sharing personal stories or reflections. “We” reflects the points that Zach and I believe are essential to your development.

This book does not contain “six easy steps” or other simple formulas. Rather, discovering your True North requires introspection, support, and feedback from family, friends, and colleagues. Ultimately, you must take responsibility for your own development. Like musicians or athletes born with great abilities, you must devote yourself to a lifetime of intentional practice to realize your full potential.

Part I: Discover Yourself focuses on your journey through life. It begins with deep exploration of your life story, which is more powerful than any set of leadership skills or characteristics. By exploring your crucibles, you learn how to turn your challenges into inspiration to accomplish extraordinary things. During their journey many leaders lose their way. To understand how you could derail, we analyze five types of leaders who were caught in the trap of leading without their True North to chase money, fame, and power.

Part II: Develop Yourself outlines the four elements of your personal development that comprise your internal compass: developing self‐awareness, living your values, finding your sweet spot, and leading an integrated life. These elements enable you to develop as an authentic leader, and cultivate the ability to stay true to who you are as you confront challenges in the world around you.

Part III: Lead People describes your transformation from an I leader focused on yourself to a We leader focused on serving others. Only then will you be ready to discover your North Star—the purpose of your leadership. Purpose‐driven leaders COACH their teammates to achieve their full potential by Caring, Organizing, Aligning, Challenging, and Helping.

Part IV: Navigate Today's Challenges guides you on leading through today's challenges. We examine the importance of creating inclusive cultures. We explore how to lead through crises. Finally, we challenge you to be moral leaders serving society by committing to solving the world's most difficult problems (Figure I.2).

Each chapter begins with the life story of a featured leader who exemplifies the key points of that chapter. Then we introduce leadership principles and frameworks that help you apply the concept, illustrating them through the deep insights of the leaders we interviewed. At the end of each chapter, we profile an emerging leader as well as my take on these ideas. Each Idea in Brief section recaps the chapter's main points, offers specific actions for you to implement, and poses probing, introspective questions to ask yourself in your leadership development process. We encourage you to spend time journaling your answers. Even better, purchase the Emerging Leader’s Guide to True North, which provides additional exercises for deeper reflection.

The Emerging Leader Edition of True North enables you to embark on the most exciting journey of your life by discovering your True North and following your North Star.

My coauthor, Zach, adds: When I began working with Bill as a 24‐year‐old student, I didn't fully understand how much I would draw on his wisdom during all the twists and turns of my journey ahead. So let me share a message for other emerging leaders reading this book:

True North

contains a lifetime of wisdom that can unlock your success.

Figure I.2 Book Map: Part I, Part II, Part III, Part IV

It provides a road map for figuring out who you are and what you are meant to do.

The self‐knowledge you gain and mindset you develop will positively change your relationships.

The inner journey of understanding and developing yourself will prepare you for the outer journey of making your most meaningful contribution to the world.

Understanding these concepts and applying them is an ongoing process. Through my work with Bill, I kept coming back to these ideas and encountering them from a different place as my journey progressed. I encourage you to do the same. While reading this book, don't just flip through the pages—journal, discuss the concepts, do the exercises. Come back to the book a year later and do it all again. Engaging with Bill's wisdom has changed my life, and it can change yours as well.

As you embark on your journey, remember:

You do not have to be born with characteristics or traits of a leader.

You do not have to be at the top of an organization.

You can step up and lead today.

You can discover your True North right now.

Part OneDiscover Yourself

In our interviews with leaders about their development, the most striking commonality was the way their life stories influenced their leadership. Your life story is your foundation. It shapes how you see the world, and it can propel you forward or hold you back.

In Part I, we examine three topics:

How you frame your life story

. Your journey through life will take you through many peaks and valleys as you face the world's trials, rewards, and seductions. Reflection and introspection will help you understand your life experiences and, in some cases, reframe them.

The role crucibles play in shaping your leadership

. The way you deal with your greatest adversities will shape your character far more than the adversities themselves. Much like iron is forged by heat, your most significant challenges and your most painful experiences present the greatest opportunities for your personal growth.

The risk of losing your way

. Everyone experiences pressures and difficulties in life, and all of us deal with fears and uncertainties. In your life journey, you will be confronted with seductions that threaten to pull you off course from your True North. We examine five archetypes that can cause you to lose your way.

As you gain greater clarity and insight about your life's journey, you will discover the focus of your True North.

1YOUR LIFE STORY

The reservoir of all my life experiences shaped me as a person and a leader.

—Howard Schultz, CEO, Starbucks

The journey to authentic leadership begins with understanding yourself: your life stories and crucibles. The life stories of the 222 leaders we interviewed cover the full spectrum of experiences, including the impact of parents, teachers, coaches, and mentors; support of their communities; and leadership in team sports, scouting, student government, and early employment. Many leaders were influenced by difficult experiences, such as personal illness or illness of a family member; death of a loved one; or being discriminated against by peers.

These leaders found their passion to lead through their unique life stories:

None

were born as leaders.

None

had innate characteristics, traits, or styles of a leader.

None

succeeded by emulating other leaders.

Rather, by being their authentic selves, they became great leaders, using their gifts to help others. This could happen only if they first understood themselves and their life stories.

All great myths pay tribute to the winding journey of the human condition. For instance, Homer's Odysseus spends a decade traversing the world before he comes to know himself. Though each journey is unique, the patterns are similar. Life involves suffering and hardship. We learn as we struggle and stumble along the way. Through these encounters, our character is formed. We gain wisdom, and we find clues about how we can fulfill our purpose in the world.

As former secretary of health and human services John Gardner once said, “I guess I had certain leadership qualities that life was just waiting to pull out of me.” Have you examined what leadership qualities life wants to pull out of you? As you read the following stories, think about the ways your life story inspires you and defines your leadership.

Kabir Barday: A Phoenix Arises from a Hospital Bed

Kabir Barday's parents immigrated from India to Atlanta, Georgia, before he was born. Despite facing harassment and discrimination after 9/11, they believed in the American dream and instilled that dream in Kabir. Indeed, the feeling of a destiny of greatness burned so strong in him that Kabir, a brilliant student, was surprised when Stanford University and Massachusetts Institute of Technology (MIT) rejected his college applications. Upon graduating from Georgia Institute of Technology (Georgia Tech), he faced additional rejections when Google and Facebook passed over his job applications. “I was very used to getting exactly what I wanted,” he says. “That feeling of rejection was unfamiliar to me.”

At first, this rejection inspired Kabir to work intensely, perhaps too much so. After working several years as a software consultant, Kabir founded OneTrust, an enterprise software platform that helps companies do good for people and the planet by managing privacy, ethics, ESG, and security. To jump‐start the business, he flew 500,000 miles a year to meet with customers internationally. Often, the only familiar meals when arriving late evening in an unfamiliar city would be Starbucks and McDonald's. Kabir saw his fiancée just about 30 days that first year. He says, “I alienated my friends and personal relationships. I didn't show up at two of my closest friends' bachelor parties or weddings.”

On Thanksgiving, Kabir traveled to London to keep working because the British did not celebrate the holiday. While in London, Kabir spent an evening lying in bed in excruciating pain. The next day he saw a doctor who told him, “Your lymph nodes are fully inflamed, which usually means cancer.” The doctor recommended immediately checking into a hospital, but instead Kabir traveled to Brussels for his next meeting. Arriving in Brussels, he faced overwhelming pain and was forced to find a hospital in the middle of the night.

Kabir ultimately spent two months at the Mayo Clinic where, given the complexity and severity of his symptoms, even after 300 tests, doctors could not precisely diagnose his issue. The prognosis seemed grim, as he had no platelets in his blood with extremely low hemoglobin and received blood transfusions almost daily. Against all odds, he began to improve.

The doctors still don't know what it was, but they suspect an autoimmune related issue. For a few years following the initial hospitalization, a number of additional auto‐immune related issues would surface and remind me your health is something that needs to be constantly respected.

Kabir's crucible could have been devastating, but instead it cracked him open to a new phase in his life.

Today, he meditates to reduce stress and cherishes spending time with his wife and children. “What no medical practice has mastered,” he says, “is the connection between stress, diet, the exposome, and the importance of these things working together. Just like you manage your goals in business, you must manage your well‐being.”

This is a dream job and so much fun, but I never admitted the impact of the stress of being switched on all the time. Looking back, was it all worth it? The company flourished and we dominated the market, but at what cost? I was young enough to rebuild those relationships and prioritize those parts of my life, but the ultimate sacrifice was myself.

Kabir's experiences as a self‐described “intense leader” early in his career gave way to a more integrated approach. He learned that “self‐forgiveness is the ultimate skill that somebody in my position needs to develop.” His life experience also prepared him to lead through the turbulence of 2020, including the COVID‐19 pandemic and racial unrest that gripped the country. He explains,

As brutal as the last 2 years have been, everything has made me a better leader. Going through my own health crisis, I now realize that everyone faces some challenge. Our Black, Latinx, and Asian employees walked me through the experiences they had growing up. Their stories were so powerful that they changed me as a leader.

Today Kabir is achieving even greater success because he is focused on living a more grounded, balanced, and integrated life. Only 6 years old and already valued at more than $5 billion, OneTrust has experienced a staggering 48,337 percent 3‐year growth rate and was ranked as the fastest‐growing startup in the country by Inc. magazine. Kabir reflects, “The only successful way to run a company today is people first with empathy and authenticity.”

Reframing Your Life Story

Kabir Barday, as well as all the leaders we interviewed, found inspiration to lead through their life stories. By understanding the formative experiences of their early lives, they reframed their life stories to shape their leadership around fulfilling their passions and following their True North.

You may be asking, “Doesn't everyone have a life story? What makes leaders' stories different?” Many people with painful stories see themselves as victims, feeling the world has dealt them a bad hand. Some get so caught up in chasing the world's esteem to fill a wound that they never reflect on what they want. Others lack the introspection to connect the dots between their life experiences and the goals they are pursuing, which can lead to repeating their mistakes.

The difference with authentic leaders lies in the way they interpret their life stories. Their stories provide context for their desire to have a positive impact in the world. By reflecting on their stories, leaders understand how important events and interactions with people have shaped their approach to the world. Discerning our stories, and then reframing them as necessary, enables us to recognize that we are not victims but people shaped by experiences that provide the impetus for us to become leaders.

Novelist John Barth once said, “The story of your life is not your life. It is your story.” In other words, it is how you understand yourself through your story that matters, not the facts of your life. You must actively process your life story to gain meaning and inspiration from it.

Can you connect the dots between your past and your future to find your inspiration to lead authentically? What people or experiences have shaped you? What have been the key turning points in your life? How does your past inspire you or hold you back? Where in your story do you find your passion to lead? How can you leverage your gifts and life story to make a difference?

Howard Schultz: Building a People‐Based Business

When Howard Schultz was 7, his father fell on ice and lost his job and the family's health care. With no savings to fall back on and his mother 7 months pregnant, Howard realized the trap that working‐ class people were facing. He vowed he would do things differently, dreaming of building “a company my father would be proud to work at” that treated employees well and provided healthcare benefits. Little did he realize that one day his company would have more than 380,000 employees working in 32,000 stores worldwide.

Howard's life experiences provided the motivation to build Starbucks into the world's leading coffeehouse. “My inspiration comes from seeing my father broken from 30 terrible blue‐collar jobs, where an uneducated person didn't have a shot,” Howard says. These memories led Howard to provide health coverage for everyone, even part‐time employees.

That event is directly linked to the culture and values of Starbucks. I wanted to build a company where you would be valued and respected, no matter where you came from, your skin color, or education. Offering health care was a transforming event that created unbelievable trust with our people. We wanted to build a company that linked shareholder value to the Starbucks culture.

Howard is proud of his roots. He credits his life story with giving him the motivation to create one of the great business successes of our lifetime. But understanding the meaning of his story took deep thought because, like nearly everyone, he had to confront fears and ghosts from his past.

Born in the Bayview Housing projects in Brooklyn, Howard never forgets where he came from or lets his wealth go to his head: “I was surrounded by people who felt there was no hope, and just couldn't get a break.”

That's something that never leaves you—never. From my earliest memories, I remember my mother saying I could do anything I wanted in America. In contrast, I watched my father break down while complaining bitterly about not having opportunities or respect. What drives me is fear of failure. I know all too well the face of self‐defeat.

Howard first encountered Starbucks Coffee in 1982 while making a sales call in Seattle's Pike Place Market. Learning he could acquire Starbucks from its founders, Howard rounded up financing from private investors despite 200 rejections. Then his largest investor proposed to buy the company himself, telling him, “If you don't go along with my deal, you'll never work in this town again. You'll be dog meat.” Leaving the meeting, Howard broke into tears. Eventually, he raised $3.8 million and staved off the investor.

The saddest day of Howard's life came when his father died. Instead of seeing him as a failure, he realized his father had been crushed by the system. Then Howard channeled his drive into building a company where his father would have been proud to work.

Among Howard's greatest talents is his ability to connect with people from diverse backgrounds. He says, “Starbucks gave me the canvas to paint on.”

Starbucks is the quintessential people‐based business, where everything we do is about humanity. The culture and values of the company are its signature and its competitive difference. People are hungry for human connection and authenticity, and coffee is the catalyst for that connection.

Recently, when two Black men were arrested for “loitering” at Starbucks in Philadelphia, Howard immediately flew there, apologized to the men, compensated them financially, and spoke openly to the media about the shame and disgust he felt. “This was contrary to everything Starbucks stands for,” he says.

Sally Jewell: Advocating for the Environment

Sally Jewell says her favorite proverb, “We don't inherit the earth from our ancestors, we borrow it from our children” inspires her passion for nature and the environment.

As a young child, Sally moved from England to Seattle when her father was offered a medical fellowship at the University of Washington. Asking colleagues what people did in Seattle, her father was told, “They camp, hike, and join this little co‐op called REI above the Green Apple Pie Market on Pike Street downtown.” Sally says,

My introduction to the outdoors—and REI for that matter—came because my parents asked, “What do people do around here?” Seattle is a beautiful place. It's a place where we were able to enjoy the outdoors.

Sally studied engineering at the University of Washington, where she was one of only a few women in her class. Upon graduation, she received 15 job offers, choosing Mobil Oil. Sally's passion for the outdoors influenced this decision, as the job eventually moved her to Denver where she could spend more time skiing and hiking. Those were challenging days for women in the oil fields. She describes regular meetings in men's offices with Hustler centerfolds pinned to the walls, and men who told female colleagues, “I love it when you wear tight sweaters to work.”