1. The Law of the Lid ◦ “leadership ability is the lid that determines a person’s level of effectiveness ◦ The McDonald brothers’ genius was in customer service and kitchen organization. That talent led to the creation of a new system of food and beverage service. But in 1952, when they tried marketing the McDonald’s concept, their effort was a dismal failure. The reason was simple. They lacked the leadership necessary to make a larger enterprise effective. Dick and Maurice were good single-restaurant owners. They understood how to run a business, make their systems efficient, cut costs, and increase profits. They were efficient managers. But they were not leaders. Their thinking patterns clamped a lid down on what they could do and become. At the height of their success, Dick and Maurice found themselves smack-dab against the Law of the Lid. ◦ In 1954, the brothers hooked up with a man named Ray Kroc. As soon as he visited the store, he had a vision for its potential. In his mind he could see the restaurant going nationwide in hundreds of markets. He soon struck a deal with Dick and Maurice, and in 1955, he formed McDonald’s Systems, Inc. (later called the McDonald’s Corporation). ◦ And the leadership lid in Ray Kroc’s life was sky high. Between 1955 and 1959, Kroc succeeded in opening 100 restaurants. Four years after that, there were 500 McDonald’s. In 1961 for the sum of $2.7 million, Kroc bought the exclusive rights to McDonald’s from the brothers, and he proceeded to turn it into an American institution and global entity. 2. The Law of Influence • “The True Measure of Leadership is Influence-Nothing More, Nothing Less” • Maxwell explains the correlation of influence and leadership. If you lack the ability to influence others, it is nearly impossible to lead. ◦ I have learned that you can lead and have influence from any position in an organization. You can build influence through your character, your relationships, your knowledge, your intuition, and your experience. But the most critical method for building your influence is through what you can do for others. ◦ It is not about you, it is about them. If you focus on adding value to others, and adding value to your organization with no expectations of reciprocity, then you will shorten the time required to gain influence. People need to know you care before they are interested in what you know. 3. The Law of Process • “Leadership Develops Daily, Not in a Day” • Leadership is learned over time. And it can be learned. People skills, emotional strength, vision, momentum, and timing are all areas that can and should be learned. Leaders are always learners. • If you don't grow as a person today, you won't be able to lead tomorrow. ◦ You can become a leader by following the process. Becoming a leader is a process that takes time and investment. The process entails: Learning, application, adjustment ◦ These three steps are typically followed in the process by growth… followed by more learning, more application, more adjusting and more growing. This process never really ends, it’s a life long journey. Leaders are not born leaders, they followed a process to become leaders. 4.The Law of Navigation • “Any One Can Steer a Ship, but It Takes a Leader to Chart the Course” • A navigator (leader) listens – he finds out about grassroots level reactions. Navigators balance optimism with realism. Preparation is the key to good navigation. “It’s not the size of the project, it’s the size of the leader that counts.” 5.The Law of E. F. Hutton ◦ Hutton was America’s most influential stock market analyst. When he spoke, everyone listened. When real leaders speak, people automatically listen. Factors involved in being accepted as a new real leader include character, building key relationships, information, intuition, experience, past success. and ability. 6.The Law of Solid Ground • “Trust Is the Foundation of Leadership” • Trust is the foundation for all effective leadership. When it comes to leadership, there are no shortcuts. Building trust requires competence, connection and character. ◦ NO ONE WILL FOLLOW A LEADER THEY DON’T TRUST. THE LAW OF SOLID GROUND IS ALL ABOUT TRUST-BASED LEADERSHIP. ◦ Leaders cannot repeatedly break their employees’ trust and still hope to influence them. As Maxwell says, “trust is like coins in a leader’s pocket.” When you make a good leadership decision, you gain more change. Poor decisions cost you change. There’s only a certain amount of “change” you have as a leader before people stop following you altogether. 7.The Law of Respect • “People Naturally Follow Leaders Stronger Than Themselves”
• People naturally follow people stronger
than themselves. Even natural leaders tend to fall in behind those who they sense have a higher “leadership quotient” than themselves. 8.The Law of Intuition • “Leaders Evaluate Everything with a Leadership Bias” • Leaders see trends, resources and problems, and can read people. ◦ When writing about the Law of Intuition, John Maxwell acknowledges that it’s tougher than other laws to explain because it’s not as concrete. As he describes it, “The Law of Intuition is based on facts plus instinct plus other intangible factors, such as employee morale, organizational momentum, and relational dynamics.” 9.The Law of Magnetism • “Who You Are Is Who You Attract” • Leaders attract people like themselves. Who you are is who you attract. If you only attract followers, your organisation will be weak. Work to attract leaders rather than followers if you want to build a truly strong organisation. • People tend to gravitate toward others who are similar. You might notice this in your friend groups, and it’s true of employees as well. • few key areas that people tend to focus on: age, attitude, background, values, energy, giftedness, and leadership ability. 10.The Law of Connection • “Leaders Touch a Heart Before They Ask for a Hand” ◦ Maxwell states that the best way to connect with employees is one at a time. He lists eight steps for achieving this goal with each and every employee: • CONNECT WITH YOURSELF. • COMMUNICATE WITH OPENNESS. • KNOW YOUR AUDIENCE. • LIVE YOUR MESSAGE. • MEET THEM WHERE THEY ARE. • FOCUS ON THEM. • BELIEVE IN THEM. • OFFER DIRECTION AND HOPE. 11.The Law of Inner Circle • “A Leader’s Potential Is Determined by Those Closest to Him” • A leader’s potential is determined by those closest to him. “The leader finds greatness in the group, and helps the members find it in themselves. ◦ John Maxwell is the first to admit that no one person can excel at all 21 of his Laws of Leadership. This is why every leader needs a team. Successful leaders have a strong inner circle of people who collectively make that leader better than they would be on their own. 12.The Law of Empowerment • “Only Secure Leaders Give Power to Others” • Only secure leaders give power to others. Mark Twain said, “Great things can happen when you don’t care who gets the credit.” “Great leaders gain authority by giving it away.” ◦ Using the analogy of personal finance, let’s look at what’s missing from the lives of insecure leaders. This will help us better understand where security comes from and why it matters. ◦ Paupers, debtors, and hoarders lack the real or perceived financial security necessary to give generously to others. 13.The Law of Reproduction • “It takes one to know one, to show one, to grow one.” • It takes a leader to raise up a leader. The potential of an organisation depends on the growth of its leadership. ◦ An environment where leadership is valued and tough becomes an asset to a leadership mentor. It not only attracts “eagles”, but it also helps them learn to fly. An eagle environment is one where the leaders casts a vision, offers incentives, encourages creativity, allows risks, and provides accountability. Do that long enough, and you will develop a leadership culture where eagles begin to flock. 14.The Law of Buy-In • “People Buy into the Leader, Then the Vision” ◦ “Every message that people receive is filtered through the messenger who delivers it. If you consider the messenger to be credible, then you believe the message has value.” This is why celebrity endorsements are so successful—if people trust the celebrity, they’ll buy what they are selling. 15.The Law of Victory
• “Leaders Find a Way for the
Team to Win” • Leaders find a way for the team to win. “You can’t win WITHOUT good athletes, but you CAN lose with them.” p162). Unity of vision, diversity of skills plus a leader are needed for a win. 16.The Law of Momentum
• “Momentum Is a Leader’s Best Friend”
• You can’t steer a ship that isn’t moving forward. It takes a leader to create forward motion. 1.Momentum is the great exaggerator. 2.Momentum makes leaders look better than they are. 3.Momentum helps followers perform better than they are. 4.Momentum is more natural to steer than to start. 5.Momentum is the most potent change agent. . 6.Momentum is the leader’s responsibility. 7.Momentum begins inside the leader. 17.The Law of Priorities • “Leaders Understand That Activity Is Not Necessarily Accomplishment” • Activity is not necessarily accomplishment. We need to learn the difference. “A leader is the one who climbs the tallest tree, surveys the entire situation, and yells “Wrong Jungle!” ◦ The Law of Priorities means you might need to completely change up your way of doing things around the office: if you’re used to involving yourself in every aspect of running your business, for example, you’ll need to learn to delegate so that you can focus on your top 20%. ◦ This will be uncomfortable at first, but as Maxwell writes, “leadership has nothing to do with comfort and everything to do with progress.” 18.The Law of Sacrifice • “A Leader Must Give Up to Go Up” • A leader must give up to go up. Successful leaders must maintain an attitude of sacrifice to turn around an organisation. One sacrifice seldom brings success. ”When you become a leader, you lose the right to think about yourself.” • The first question you need to ask yourself as a leader is this: how much are you willing to sacrifice for your company? If you’re not willing to work more than 40 hours a week, take a pay cut, or give up your vacation time, that’s fine, but you need to accept that you’re limited in how far you can advance on the leadership ladder. 19.The Law of Timing • “When to Lead Is As Important As What to Do and Where to Go” • When to lead is as important as what to do and where to go. Only the right action at the right time will bring success. ◦ “Reading a situation and knowing what to do are not enough to make you succeed in leadership. If you want your organization, department, or team to move forward, you must pay attention to timing.” ◦ Think about it: you might have an idea to launch a new product as a holiday gift. However, to make enough sales, you need to take into consideration the fact that many people do their holiday shopping long before December. Launching at the wrong time could severely limit your selling potential. 20.The Law of Explosive Growth • “To Add Growth, Lead Followers – To Multiply, Lead Leaders” • “It is my job to build the people who are going to build the company.” • If you develop yourself, you can experience personal success. If you grow a team, your organization can experience growth. And if you develop leaders, your organization can achieve explosive growth. • Your company will fall apart if you’re the only engine powering your business. If you spend time developing other influential leaders to carry the weight, your company will have longevity. 21.The Law of Legacy • “A Leader’s lasting Value Is Measured by Succession” • A leader’s lasting value is measured by succession. “Leadership is the one thing you can’t delegate. You either exercise it – or abdicate (ail to fulfil or undertake) it.” • The natural progression of leadership, according to Maxwell, is as follows: achievement comes when you do great things by yourself, success comes when you empower your employees to do great things for you, significance comes from developing leaders to do great things with you, and legacy comes when you put leaders in a position to do great things without you.