11

5

THE LAW OF THE INNER CIRCLE

A Leader’s Potential Is Determined by Those Closest to Him

When we see any incredibly gifted person, it’s always tempting to believe that talent alone made him successful. To think that is to buy into a lie. Nobody does anything great alone. Leaders do not succeed alone. A leader’s potential is determined by those closest to him. What makes the difference is the leader’s inner circle.

UNBELIEVABLE TALENT

Lance Armstrong is one of the most talented athletes on the planet. Because of his physical gifts, he has been called a freak of nature. His sport, cycling, is perhaps the most grueling. The Tour de France, which he has won an astounding seven times in a row, has been compared to running twenty marathons on twenty consecutive days. Racers cover approximately two thousand miles of often mountainous terrain in a three-week period. On peak race days, they consume as many as ten thousand calories to provide the energy they need.

Armstrong has become a legend as the conqueror of the Tour de France. Writer Michael Specter provides perspective on Armstrong’s ability:

Three types of riders succeed in long stage races like the Tour de France: those who excel at climbing but are only adequate in time trials, in which a cyclist races alone against the clock; those who can win time trials but struggle in the mountains; and cyclists who are moderately good at both. Now there appears to be a fourth group: Armstrong. He has be-come the best climber in the world . . . And there is no cyclist better at time trials.1

Clearly, Armstrong is in a class that few others can approach. His determination is unquestionable. His training regimen is unmatched. His talent is extraordinary. Yet without a team, he would not have won a single Tour title.

UNBELIEVABLE TEAM

Cycling is truly a team sport, though it may not seem that way to the casual observer. During his Tour de France run, Armstrong had an incredible team. Anchoring the team were Chris Carmichael, his coach; and Johan Bruyneel, an ex-cyclist who functioned as the team’s sports director and master tactician. Both men were indispensable, since Armstrong tended at first to follow his own less efficient training regimen and execute his own tactics, causing him to lose badly. But once those two inner circle members were in place, Armstrong began to maximize his gift.

Taking the team approach even further, Armstrong’s sponsors and equipment suppliers—Trek, Nike, AMD, Bontrager, Shimano, and Oakley—were asked to work together as a group rather than merely contributing as individuals without knowing what the others were doing. It was revolutionary at the time and helped raise the entire team to a higher level. It is now standard practice in professional cycling.

And then, of course, there were the other cyclists who rode with him each year. In 2005, Armstrong’s last year, they included José Azevedo of Portugal; Manuel Beltrán, Benjamin Noval, and José Luis Rubiera of Spain; Pavel Padmos of the Czech Republic; Yaroslav Popovych of Ukraine; Paolo Savoldelli of Italy; and George Hincapie of the United States. “I wanted an experienced team for Lance’s last Tour and that was the determining factor,” explained Bruyneel.2 Each person brought unique skills to the team.

“I think we have fielded our strongest team ever with this formation,” said Armstrong. “It has many consistent elements from years past, like the Spanish armada for the climbs, strong guys like George, Pavel and Benjamin, the Giro winner in Savoldelli plus a guy like Popo (Popovych) with a very bright future. I look forward to leading this team and attempting to give the great folks at Discovery a yellow jersey.”

“Lance is the first to say he would never have won the Tour de France without the help of his teammates,” explains the Team Discovery Web site. “Every other rider sacrifices individual glory at the race in order to work for one rider, Lance, which says a lot considering what’s at stake. Yet, over the years, Lance delivered every single time following the work of his team, so it goes hand in hand. If the team sacrificed itself and Lance didn’t have what it took to come through in the end, we would have had to rethink the plan.”3

Leaders have to deliver. There is no substitute for performance. But without a good team, they often don’t get the opportunity. Their potential is determined by those closest to them. That is the Law of the Inner Circle.

WHY YOU AND I NEED A TEAM

In recent years, people in the business world have rediscovered the significance of teams. In the 1980s, the buzzword in business circles was management. Then in the 1990s, the emphasis was on leadership. Now in the twenty-first century, the emphasis is on team leadership. Why? Because nobody does everything well.

“You can do what I cannot do. I can do what you cannot do.Together we can do great things.”
—MOTHER TERESA

As I began teaching the laws of leadership years ago, I could tell that many people were daunted by the idea of 21 Laws. I understood their feelings. I am a great believer in making things as simple as possible. I’ve always contended that good communicators take something complicated and make it simple. I would have loved to compile fewer than 21 Laws of Leadership. But when I boil leadership down to its essence, I still see 21 things a leader must do well to lead effectively. However, at the same time I also recognize that no single leader can do all 21 things well. That’s why every leader needs a team of people. As Mother Teresa observed, “You can do what I cannot do. I can do what you cannot do. Together we can do great things.” That is the power of the Law of the Inner Circle.

There are no Lone Ranger leaders. Think about it: if you’re alone, you’re not leading anybody, are you?

NO LEADER RIDES ALONE

Not everyone recognizes that those closest to you will make or break you. There are still leaders who hold up the Lone Ranger as their model for leadership. One of the best illustrations of how unrealistic that ideal of leadership really is can be found in American Spirit by Lawrence Miller:

Problems are always solved in the same way. The Lone Ranger and his faithful Indian companion . . . come riding into town. The Lone Ranger, with his mask and mysterious identity, background, and lifestyle, never becomes intimate with those whom he will help. His power is partly in his mystique. Within ten minutes the Lone Ranger has understood the problem, identified who the bad guys are, and has set out to catch them. He quickly outwits the bad guys, draws his gun, and has them behind bars. And then there was always that wonderful scene at the end [where] the helpless victims are standing in front of their ranch or in the town square marveling at how wonderful it is now that they have been saved.4

What baloney! There are no Lone Ranger leaders. Think about it: if you’re alone, you’re not leading anybody, are you?

Leadership expert Warren Bennis was right when he maintained, “The leader finds greatness in the group, and he or she helps the members find it in themselves.”5 Think of any highly effective leader, and you will find someone who surrounded himself with a strong inner circle. My friend Joseph Fisher reminded me of that as he talked about the impact of evangelist Billy Graham. His success has come as the result of a fantastic inner circle: Ruth Bell Graham, Grady Wilson, Cliff Barrows, and George Beverly Shea. They made him better than he ever would have been alone. You can see it in business, ministry, sports, and even family relationships. Those closest to you determine your level of success.

WHO ARE YOU DRAWING INTO YOUR INNER CIRCLE?

Most people create an inner circle of people. However, they are usually not strategic in doing so. We naturally tend to surround ourselves with either people we like or people with whom we are comfortable. Few people give enough thought to how those closest to them impact their effectiveness or leadership potential. You see it all the time with certain athletes who transsit ion to the professional ranks and entertainers who achieve success professionally. Some self-destruct and never reach their potential, and it can often be attributed to the kind of people they spend their time with.

Only if you reach your potential as a leader do your people have a chance to reach their potential.

To practice the Law of the Inner Circle, you must be intentional in your relationship building. You must give thought to the accomplishment of your mission and the success of the people who follow you. Only if you reach your potential as a leader do your people have a chance to reach their potential.

As you consider whether individuals should be in your inner circle, ask yourself the following questions. If you can answer yes to these questions, then they are excellent candidates for your inner circle:

1. DO THEY HAVE HIGH INFLUENCE WITH OTHERS?

One key to successful leadership is the ability to influence the people who influence others. How do you do that? By drawing influencers into your inner circle. That was what I did with Jim at the church in Lancaster, Ohio, whom I wrote about in the Law of Connection. Jim was the single most influential person in the organization when I arrived. By building a relationship with Jim and taking him into my inner circle, I was doing two things. First, I was exerting my influence on him—sharing my values, vision, and philosophy of leadership with him. I wanted him to be a carrier of the vision to other people in the organization. Second, I was finding out what he thought. If he had questions or objections to what I wanted to do, I was able to find out about it immediately and work through it with him. And because he had so many years of experience with the people in the organization, he often helped me to navigate around potential landmines I knew nothing about.

2. DO THEY BRING A COMPLEMENTARY GIFT TO THE TABLE?

Because of my leadership gifting, I naturally attract leaders. And I am also highly attracted to leaders. It’s said of great baseball hitters that when they get together with other good hitters, all they talk about is hitting. It’s similar with good leaders. When they get together, they share their experiences, ask each other questions, and test ideas. But one of the best things I have done in my leadership career is to bring a few key people into my inner circle who possess strengths in my areas of weakness.

One of those people is Linda Eggers, my assistant. I advise young executives that their first and most important hire should be their assistant. In Linda, I have an absolute gem! She has been working with me for twenty years. She has an incredible mind for details, she is tireless, and like “Radar” O’Reilly from MASH, she has the ability to anticipate what I need before I realize it. What’s more, she now knows me so well that she can speak to others on my behalf, knowing how I would answer questions at least 90 percent of the time.

3. DO THEY HOLD A STRATEGIC POSITION IN THE ORGANIZATION?

Some people belong in your inner circle because of their importance to the organization. If you and they are not working on the same page, the entire organization is in trouble. John Hull certainly fits that description in my life. The two organizations he leads for me, EQUIP and ISS, cannot function without his leadership. Some of the most significant and effective things I’m doing are being accomplished through EQUIP. The organization has already trained more than a million leaders around the globe and is gearing up to train even more.

If something were to happen at EQUIP that took it in the wrong direction, many things in my life would come to a grinding halt. That’s why I have John, who is an outstanding leader, heading up the organization—and why he remains close to me in my inner circle.

4. DO THEY ADD VALUE TO ME AND TO THE ORGANIZATION?

I discussed in the Law of Addition how people add, subtract, multiply, or divide when it comes to others. The people in your inner circle must be adders or multipliers. They should have a proven track record as assets to the organization. There is a poem by Ella Wheeler Wilcox that my mother used to recite to me when I was growing up:

There are two kinds of people on earth today,
Just two kinds of people, no more, I say.
Not the good and the bad, for ’tis well understood
That the good are half-bad and the bad are half-good.
No! The two kinds of people on earth I mean
Are the people who lift and the people who lean.
There are two kinds of people on earth to-day;
Just two kinds of people, no more, I say.
Not the sinner and saint, for it’s well understood,
The good are half bad, and the bad are half good . . .
No; the two kinds of people on earth I mean,
Are the people who lift, and the people who lean.

Look only for lifters for your inner circle.

Inner circle members should also add value to you personally. That’s not selfish. If they have a negative effect, they will hinder your ability to lead well, and that can hurt your people and the organization.

Someone once told me, “It’s lonely at the top, so you had better know why you’re there.” It’s true that leaders carry heavy loads. When you’re out front, you can be an easy target. That’s why I say, “It’s lonely at the top, so you’d better take someone with you.” Who could be a better companion than someone who lifts you up, not as a yes-man but as a solid supporter and friend? Solomon of ancient Israel recognized this truth: “As iron sharpens iron, friends sharpen the minds of each other.”6 Seek for your inner circle people who help you improve.

It’s lonely at the top, so you’d better take someone with you.

5. DO THEY POSITIVELY IMPACT OTHER INNER CIRCLE MEMBERS?

I’m a big believer in team chemistry, and if your inner circle is going to work together and function as a team, then you need to take into account how members interact. First, you want them to have a good fit with one another. Just as members of a championship basketball team have complementary skills and compatible roles, you want each inner circle member to have a place in your life where he contributes without stepping on the others’ toes.

Second, you want inner circle members to make one another better, to raise one another’s game. Sometimes that comes because they encourage one another. Sometimes it happens when they help one another by sharing information and wisdom. And sometimes it comes from friendly competition. No matter how it happens, if they improve the ability of other team members, they also improve your leaders.

IDENTIFY . . . CULTIVATE . . . RECRUIT

There is one more question you need to ask about potential inner circle members. I did not list it as one of the five questions, because a yes in answer to the question does not automatically mean they should be in your inner circle. However, a no would definitely mean they should not. The question is this: do they display excellence, maturity, and good character in everything they do?

You will be able to answer that question only once you’ve gotten to know them fairly well, which means you will probably be selecting inner circle members from within your organization. In fact, in most cases you will also need to develop them before they are ready to take their place in that circle. As you look for people and work with them, take the advice of longtime executive and retired president, CEO, and chairman of Agilent Technologies, Ned Barnholt. He believes there are three kinds of people in an organization when it comes to leadership: (1) those who get it almost immediately and they’re off and running with it; (2) those who are skeptical and not sure what to do with it; and (3) another third who start out negative and hope it will go away. “I used to spend most of my time with those who were the most negative,” says Barnholt, “trying to convince them to change. Now I spend my time with the people in the first [group]. I’m investing in my best assets.”7

NEVER STOP IMPROVING YOUR INNER CIRCLE

I have to admit that I am blessed with an incredible inner circle, made up of family members, longtime employees, admired colleagues, and personal mentors. All of them add value to me and help me have an impact beyond what I can personally touch and do. I’m always on the lookout for people to come into this circle, because I’ve know since I was forty that you can go only so far on your own. Once you’ve reached your capacity in time and energy, the only way you can increase your impact is through others. Every person in my inner circle is a high performer and either extends my influence beyond my reach or helps me to grow and become a better leader.

Of course, no leader starts out with a strong inner circle. When leaders take on new positions, they often have to build their inner circle from scratch. That was the case for me in 1981 when I accepted the offer to lead Skyline Church in the San Diego, California, area. The church had a great history and nationally recognized reputation. It had been founded in the 1950s by Orval Butcher, a wonderful man, who was retiring after serving there for twenty-seven years. Dr. Butcher had touched the lives of thou-sands of people with his leadership. It was a good church, but it did have one problem. It had not grown in years.

One of the first things I did after taking the job was to meet with each staff member to assess individual abilities. Almost immediately I discovered why the church had flatlined. The staff members were good people, but they were not strong leaders. No matter what I did with them, they would never be able to take the organization to the place we needed to go. In a church of that size, the staff is the leader’s inner circle. If the staff is strong, then the leader can make a huge impact. If the staff is weak, he can’t. That is the Law of the Inner Circle.

A leader’s potential is determined by the people closest to him.

The task that lay ahead of me was clear. I needed to remove the weak leaders and bring in better ones. That was the only way I would be able to turn the situation around. Mentally, I divided the people into three groups according to their ability to lead and deliver results. The bottom third I dis-missed right away and began replacing them with the best people I could find. Then I began working on the middle third and the top third. The organization immediately began growing. By the end of three years, all but two on the original staff had been replaced by better leaders. Because the inner circle had gone to a new level, the organization was able to go to a new level. Over the years, we tripled in size from 1,000 to more than 3,300 weekly attenders.

The growth and success we experienced at Skyline were due to the Law of the Inner Circle. When we had the right staff, our potential skyrocketed.

And in 1995 when I left, other leaders from around the country sought to hire my key staff members for their organizations. They recognized the power of the Law of the Inner Circle and wanted to hire the very best they could find to boost their potential.

Lee Iacocca says that success comes not from what you know but from who you know and how you present yourself to each of those people. There is a lot of truth in that. If you want to increase your capacity and maximize your potential as a leader, your first step is always to become the best leader you can. The next is to surround yourself with the best leaders you can find. Never forget that a leader’s potential is determined by those closest to him. That’s the Law of the Inner Circle. That’s the only way you can reach the highest level possible.

Hire the best staff you can find, develop them as much as you can, and hand off everything you possibly can to them.

5

Applying
THE LAW OF THE INNER CIRCLE
To Your Life

1. Do you know who your inner circle members are? They are the people you seek out for advice, turn to for support, and rely on to help you get things done. If you lead a small staff, all of those employees are also part of your inner circle.

List the names of your inner circle members. Next to each name write what that person contributes. If they do not have a clear role or function, then write what you believe they have the potential to contribute. Look for holes and duplications. Then begin looking for people to fill the holes and consider how you might eliminate redundancies. And be prepared to challenge current members with potential to rise to your expectations.

2. Great inner circles do not come together by accident. Effective leaders are continually developing current and future inner circle members. How do they do it?

Bullet They spend extra time with them strategically to mentor them and to develop relationships.

Bullet They give them extra responsibility and place higher expectations on them.

Bullet They give them more credit when things go well and hold them accountable when they don’t.

Examine your list of inner circle members to determine whether you are taking these steps with them. If not, make changes. In addition, be sure to use this development strategy with a pool of new potential inner circle members.

3. If you lead a larger staff, then not everyone who works for you will be part of your inner circle. When should you transition to a smaller inner circle, a sort of team within the team?

Bullet When your immediate staff numbers more than seven

Bullet When you can no longer directly lead everyone

Bullet In the volunteer world, when others besides paid staff should be in the inner circle

If this describes your situation, then begin thinking in terms of creating a smaller inner circle group using the same development strategy listed above.