Development initiative:  Advanced Leadership Program at SAFECO 

By Deborah L. Fine, Coordinator of Leadership Development, Diversity Marketing, and Balanced Scorecard, SAFECO Insurance Company 

[With 13,000 employees and revenues in 1999 of $6.7 billion, SAFECO offers a broad range of insurance and investment products.  Its St. Louis regional office is building a leadership development program.] 

We recognized that leadership can be developed in one of two ways:  (1) The “sink or swim” approach in which “the cream naturally rises to the top,” and (2) an interventionist approach in which the company fosters leadership.  We followed the latter course because we didn’t have time for the natural course – and in any case it may not have created the kind of leaders that SAFECO requires now. 

Some companies have built programs that trains large groups of managers, but we have chosen to focus on a few select individuals.  Their training, mentoring, and coaching over six to twelve months are intended to help them master the concepts of how leaders behave and then transforming those concepts into their actions.  Participating managers are directed to concentrate on eight critical learning areas:   

1.      The Foundation:  To lead we must be more than just managers.  We must recognize this both in the choices we make as well as in how we impart our vision in the future.  You should understand what we mean when we refer to “leadership,” recognize its importance, and understand how it relates to all the other core areas. 

2.      Emotional Intelligence:  As managers we must recognize that our employees are our number one resource.  We must deal with the human side of this resource to maximize the value, always keeping the ethical aspect in mind as well as creating a welcoming environment.  Emotional Intelligence “refers to the capacity for recognizing our own feelings and those of others, for motivating ourselves, and for managing emotions well.  It describes abilities distinctive from, but complimentary to, academic intelligence.  Many people who are book smart but lack emotional intelligence end up working for people who have lower IQ’s…but who excel in emotional intelligence skills.  It does not mean just being nice.  You don’t compete with products alone any more but how well you use your people.” – Working With Emotional Intelligence by Daniel Goleman. 

3.      Developing Others:  Your number one responsibility as a manager and leader is the development of others.  This is key to our success.  You must have an awareness of the differences in personalities, appreciate and understand learning styles and effectively teach or impart your knowledge.  To be successful in this, you must take the responsibility of connecting with your employees.  They should not have to try to interpret and understand you.  

4.      Decision Making Skills:  Leaders must make many difficult decisions with very little warning.  The ability to make the right decisions, whether financial, ethical or emotional,  and understanding their cause and effect can make or break an organization.  You must explore your courage to make decisions when it really counts.  You must also have the ability to learn from your mistakes and to reflect upon your decisions as a learning tool.  Leaders must always use a moral compass to navigate through the complexities of every decision.  Leadership should set a moral tone of the organization, by word and deed.  

5.      Teams:  Regardless of an individual’s knowledge and their ability to work very hard, by themselves individuals can achieve only minimal results.  Whether you are working on a team of two or a large team, the ability to work with others to achieve results is paramount.  The existing body of research regarding teams clearly indicates teams out-perform individuals.  “Common sense suggests that teams cannot succeed without a shared purpose; yet more teams than not in most organizations remain unclear (as a team) about what they want to accomplish and why.  We believe that the truly committed team is the most productive performance unit management has at its disposal – provided there are specific results for which the team is collectively responsible, and provided the performance ethic of the company demands those results.” – The Wisdom of Teams by Jon Katzenbach and Douglas Smith 

6.      Conflict Management:  You must accept conflict exists and be comfortable with it.  Know how to use and promote conflict to get different view points, recognizing and valuing the different personality types, and working towards win-win solutions.  

7.      SAFECO the Organization:  Our leaders must fully understand the many aspects of our organization and how to impart that information to peers and employees.  Understanding the organization’s vision is central to the ability of each employee to work towards a common goal, providing a sense of purpose and knowing how their contribution contributes to the greater whole.  Without this vision, an employee simply comes to work every day to perform a task.  

8.      The Insurance Industry:  As a leader, you must familiarize yourself and understand the industry as a whole.  An understanding is necessary in order to form a clear and proper vision.  We cannot lead if we do not know the direction of the industry and the competition.  When you lose sight of your competition, markets and technologies, they pass you by.  Leaders must not only understand the industry but must be able to communicate its impact to employees.  How do market conditions affect our daily operations?  Why does a growth focus or profit focus apply?  Can you communicate the significance of our return on equity?  

Note: Deborah Fine can be reached at <Finertys001@aol.com>.