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Noel M. Tichy
The Leadership Engine: 
How Winning Companies Build Leaders 
at Every Level

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Business Nugget 
by Robert Morris

There are many books that discuss “leadership.” The Leadership Engine, written by Noel M. Tichy (with Eli Cohen) and published by HarperBusiness is one of the best. The subtitle suggests the book’s objective: To explain “How Winning Companies Build Leaders at Every Level.” According to Tichy, there are certain “fundamentals” common to winning organizations: “First, leaders with a proven track record of success take direct responsibility for the development of other leaders. Second, leaders who develop other leaders have teachable points of view in the specific areas of ideas, values, and something I call E-cubed -- emotional energy and edge... Third, leaders embody their teachable points of view in living stories... Finally, because winning leaders invest considerable time developing other leaders, they have well-defined methodologies and coaching and teaching techniques.” Together, these “fundamentals” create the central metaphor in Tichy’s book: a machine.

As a “machine”, an organization consists of separate but interdependent parts; requires lubrication and fuel as well as constant maintenance; and functions best when utilized to serve the specific purposes for which it has been designed. The Leadership Engine consists of ten chapters:

  • The Leader-Driven Organization
  • Why Are Leaders Important?
  • Leadership and the Teachable Point of View
  • Past as Prologue -- Learning from Experience
  • The Heart of Leadership -- It Starts with Ideas
  • Values -- Speaking with Words and Actions
  • Making It Happen -- Getting Energy Out of Everyone
  • Edge -- The Courage to See Reality and Act on It
  • Tying It All Together -- Writing your Leadership Story
  • Conclusion -- Leading into the Future
The emphasis is on HOW: How various “winning organizations” have build leaders at every level, and, how any other organization can do so. Tichy provides key points at the beginning of each chapter, which indicate what the focus of each chapter will be. Throughout the book, he examines a wide range of quite different “winning organizations”, all of which illustrate his basic assertion that leadership can and should be developed at ALL levels.
  • Leaders have ideas, values, energy and edge; 
  • leaders manage through times of change; 
  • leaders make things happen; 
  • leaders are revolutionaries; 
  • winning leaders are great teachers, make teaching a personal priority and have a “teachable point of view”; 
  • winning leaders draw from their past with stories which reveal teachable points of view; 
  • winning organizations are built on clear ideas which, leaders make certain, are current and appropriate, developed within a framework for action at all levels; 
  • winning organizations have strong values whose leaders live those values, making effective use of them as a key competitive tool; 
  • winning leaders are high-energy people who create energy in others, especially during periods of transition which create “teachable moments”; 
  • winning leaders never take the easy way out, preferring to be at the “edge” when pursuing new (perhaps perilous) opportunities, joined by other risk-takers who are also not paralyzed by a fear of failure; 
  • winning leaders view and portray the future as an unfolding drama, creating scenarios for success while providing “stories” which are dynamic and motivating; 
  • winning leaders create the future, driven by a passion to develop other leaders, and know when “it’s time [for them] to leave.”
Do such “winning leaders” exist in the contemporary business world? Of course: Bossidy, Buffett, Dell, Enrico, Gates, Kelleher, Malone, Pfeiffer, and Welch to cite but a few. However, with all due respect to these as well as other great leaders whom Tichy discusses, the single most important point in The Leadership Engine is that, in any winning organization (be it corporate, political, athletic, military, or whatever), leadership must be developed at ALL levels. In the corporate world, for example, at the front desk where visitors are greeted, in the accounting office where accounts payable and receivable are processed, in the factory where goods are manufactured, and in the field where sales personnel nourish relationships with customers. Any “leadership engine” consists of separate but interdependent parts. All are important. Indeed essential. Some organizations and their leaders understand this concept and make a total commitment to developing such leadership. They “win.” Other organizations and their senior-management do not. They “lose.” So be it.

One final point. Almost half of The Leadership Engine consists of a “Handbook for Leaders Developing Leaders.” In it, Tichy provides a cohesive and comprehensive answer to the question “How to Create a Leadership Engine?” One useful approach to the “Handbook” is to think of it as a “super” hardware store and you have an empty toolbox. Examine everything available. Select only what is most appropriate for your own organization.

Then work with others to assemble the “machine” your organization needs. In doing so, you and they are providing leadership. And your shared obligation is to involve as many others as possible, helping them to become leaders also. If help is needed along the way, it will be reassuring to know that Tichy has created the equivalent of an operator’s manual to help ensure maximum performance of your organization’s “leadership engine.” 

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