LEADERSHIP OF COMPLEX ORGANIZATIONS

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LEADERSHIP OF COMPLEX ORGANIZATIONS BARRY R. McCAFFREY GENERAL, USA (RETIRED) 211 N. Union Street, Suite 100 Alexandria, VA 22314 brm@mccaffreyassociates.com 703-519-1250 1 of 10

BIOGRAPHY OF GENERAL BARRY R. McCAFFREY, USA (Ret.) Barry McCaffrey served in the United States Army for 32 years and retired as a four-star General. At retirement, he was the most highly decorated serving General, having been awarded three Purple Heart medals (wounded in combat three times), two Distinguished Service Crosses (the nation s second highest award for valor) and two Silver Stars for valor. For five years after leaving the military, General McCaffrey served as the Director of the White House Office of National Drug Control Policy (ONDCP). Upon leaving government service, he served as the Bradley Distinguished Professor of International Security Studies from 2001-2005; and an Adjunct Professor of International Security Studies from 2006-2010 at the United States Military Academy at West Point, NY. He served as an Associate Professor in the Department of Social Sciences from 1973-1976 teaching American Government and Comparative Politics. General McCaffrey is a member of the Council on Foreign Relations and an associate of the Inter-American Dialogue. He has served on the Board of Directors of several corporations in the engineering design, technology, healthcare and services sectors. He joined the Board of Directors of Excelitas Technologies Corp. and the Board of Directors of Beacon Health Options. He serves on the International Advisory Board of Fleishman Hillard, and he is proud to serve on South Carolina s SCRA Board of Advisors. General McCaffrey attended Phillips Academy, Andover, Mass.; and graduated from West Point with a Bachelor of Science degree. He earned a master's degree in American Government from American University and attended the Harvard University National Security Program as well as the Business School Executive Education Program. In 2015 he was selected for the Doughboy Award -- the highest honor the Chief of Infantry can bestow on any Infantryman -- for outstanding contribution to the United States Army Infantry. In 2007 he was inducted into the US Army Ranger Hall of Fame at the US Army Infantry Center, Ft. Benning, GA. In May 2010, he was honored as a Distinguished Graduate by the West Point Association of Graduates at the United States Military Academy. In 1992 he was awarded the State Department Superior Honor Award for the principal negotiation team for the START II Nuclear Arms Control Treaty. In 2004, Catholic University of America awarded him the James Cardinal Gibbons Medal (Highest Honor), to honor him for distinguished and meritorious service to the United States of America. General McCaffrey is married to Jill Ann McCaffrey. They have three married adult children and six grandchildren. Their son, Colonel Sean McCaffrey, just retired from the Armed Forces after his third combat tour. Currently, General McCaffrey is President of his own consulting firm based in Alexandria, Virginia. He also serves as a national security and terrorism analyst for NBC News. 2 of 10

LEADING DURING CRISIS AUTHORITY POWER. (Hire-Fire-Promote-Compensate) EXPERT POWER. (Judgment and Experience Produce Success) REFERENT POWER. (Does your team see you as a positive example) 3 of 10

THREE DIMENSIONS OF LEADERSHIP LEAD YOUR SUBORDINATES. CONNECT THE TEAM HORIZONTALLY. REINFORCE YOUR SENIOR LEADERSHIP. 4 of 10

FACTORS OF EFFECTIVE LEADERSHIP WHEN IN CHARGE TAKE CHARGE. DEVELOP A PLAN. MANAGE DOWN ONE LEVEL SEE DOWN TWO. DON T EVER BE SATISFIED. GO FIRST. 5 of 10

LEADERSHIP ASSUMPTIONS ABOUT PEOPLE THEORY X? (Pain Avoidance goal disconnect between mission and individual) THEORY Y? (Success drives individual pride links individual to mission) 6 of 10

ALL CHANGE BOTH GOOD AND BAD IS RESISTED WITH EQUAL INTENSITY COGNITIVE DISSONANCE AUDIENCE FILTERS OUT THE LEADER S MESSAGE. (Use the right language common values and link to the past) PREVENT AUDIENCE CHANGE OF PERCEPTION OF THE LEADER. (Sell the messenger and then the message) SELL THE REWARDS OF ACCEPTING CHANGE. (We are solving your problems not mine) 7 of 10

LEADERS ORGANIZE DON T THEORIZE FORGET THE MBA MODEL NOT NUMBERS BUT OUTCOMES. FOCUS ON THE CUSTOMERS. BACKWARD PLAN THE BUSINESS CONCEPT (PEOPLE, RESOURCES, PLAN, TIME) HOW DID WE GET TO THE OUTCOME? DON T DO PERFECT WORK ISSUE SIMPLE MISSION AND WARNING ORDERS TO YOUR SUBORDINATES IMMEDIATELY. DE-CENTRALIZE GIVE RESOURCES, AUTHORITY, AND ACCOUNTABILITY TO YOUR SUBORDINATE TEAM LEADERS. WHO IS IN CHARGE? 8 of 10

TAKE CARE OF YOURSELF! BE IN GOOD PHYSICAL SHAPE. (overweight, alcohol, tobacco, exercise) GET 3 1/2 HOURS OF SLEEP, EAT TWO MEALS, READ. REMEMBER YOUR HONOR. (What would your Mom say?) AT RETIREMENT HOW WILL YOU BE VIEWED BY YOUR FAMILY AND THE RISING LEADERSHIP? 9 of 10

A US CRISIS OF CONFIDENCE IN INSTITUTIONS US Military Police Religion 42% 52% 72% Medical System President Supreme Court Public Schools Banks Newspapers Television news Congress 8% 24% 21% 28% 37% 33% 32% 31% 0% 20% 40% 60% 80% **Source: The Gallup Organization, Poll dated June 2-7, 2015 10 of 10