» «

All NACDA Members
Opening Remarks and Keynote Address
(Monday, June 14, 8:15 - 10:00 a.m.)

Jim Livengood:

Good morning ladies and gentlemen. My name is Jim Livengood, the director of athletics at the University of Arizona and your current NACDA president. It's my pleasure to open this 34th annual Convention of NACDA and it's also my pleasure to welcome you here this morning to what I think will be the start of a great Convention.

I'm pleased to announce that this is the highest attended NACDA Convention and Workshop in our history. That's a tribute to you. In our three Workshops that have gone on over the last four days, we have over 2,200 of our members in attendance. Please give yourself a round of applause.

Beginning on Friday and running through Sunday, was the inaugural workshop of NACDA's newest association, NCLA. NCLA is the National Collegiate Licensing Association. On Saturday and Sunday, NACDA also hosted the eighth annual NACMA Workshop and sixth annual NAADD Workshop. All three of these had outstanding attendance. As many of you know, the National Association of Collegiate Marketing Administrators (NACMA) and the National Association of Athletic Development Directors (NAADD) and NCLA are administered by NACDA. If you ever want a challenge, try that in two sentences in that time frame. If you're responsible for marketing, fund development or any of those areas and you don't have people involved or members of those associations, please consider it. They are great.

Additionally, tonight we host the Honda Awards Dinner, which is the annual presentation of the Honda-Broderick Cup. It's the second time that NACDA has been part of this in regards to hosting it. We're very excited and hope to see many of you in attendance tonight at that great affair.

As in the past, many auxiliary groups will be holding meetings this year. A complete list is in your Convention program. We have an exceptional lineup of speakers for the Convention this year. The program includes many informative sessions for athletics administrators at every level. We also have breakout sessions and our traditional round table sessions. Hopefully, we'll be able to accommodate each and every one of your needs.

We're also pleased to announce that we have 180 exhibitors with us. They offer, we believe, the finest in goods and services and they're here to help and to serve you. Please go by and spend time and thank these people for being part of NACDA and our wonderful Convention. They're located in the Hilton pavilion. As most of you noticed, if you were at the reception last night, we tried something new and that is to have the reception in the exhibit area. We will also do that tonight and tomorrow night and we think that's been a nice addition. Hopefully, you will think the same in your evaluation.

The drawing for the grand prize will be held Wednesday morning during the Business Session. To qualify, you must drop your business card into each exhibitor's box. The exhibitor from which the grand prize will be chosen will be selected on Wednesday morning. This particular prize will consist of two round trip airfares, four nights lodging in Rio de Janeiro, Brazil. Our grand prize, again, is sponsored by International Sports, Inc. They are located at booth 207. Some of you have asked about that.

We'd like to thank our sponsors. Our sponsors have been a huge part of NACDA. It's through their generosity that all of this can happen. We have the fine social programs and the reception for the three nights and many of the things that you partake in are because of our exhibitors. I'd like to give a special thanks to our first vice president, Dave Hart, Jr.; second vice president, Debbie Yow; third vice president, Bill Bradshaw; secretary, Art Eason; our entire Executive Committee and NACDA staff for planning a first-rate Convention program. I'm sure you'll be pleased as we go through this.

I'd also like to add that it has been a sincere pleasure to serve as your president this year. It's been an honor, a pleasure, a lot of fun. A brief reminder and I know this causes some confusion, but tickets will be collected at the luncheons. I know we've said that in the past and sometimes they have and sometimes they haven't. Please take your tickets to the luncheons. For those of you who have registered for the 1999 NACDA golf outing, please check this morning at the golf registration table located in the Grand Ballroom Lobby. There are a few playing spots left and they will be filled on a first-come, first-served basis.

It's now my pleasure to introduce Dr. Joe Crowley, the president of the University of Nevada. As you know, Joe has been very involved in college athletics. In January 1995, he completed a two-year term as the president of the NCAA. Joe's been a great host to NACDA as we visit his wonderful city of Reno. He's assisted us in lining up speakers, some of whom you'll hear later this morning in the Gambling Education Session. He also has had his staff, along with a number of students at the university, help us in terms of our early, on-site preparations.

Additionally, on Saturday night, Joe hosted a dinner and tour of the University of Nevada's facilities for the Executive Committee. It was a great night. Joe and his staff did a great job. We appreciate everything Joe Crowley has done to help bring us and help us have an outstanding Convention. Please join me in welcoming Dr. Joe Crowley.

Joe Crowley:

Jim, thank you very much for those kind words. Ladies and gentlemen, good morning and welcome. Thanks for coming to spend a few days in our community. I had an opportunity on Saturday to welcome the folks from NAADD, NACMA and NCLA. I was able to talk to them briefly about our community and the fact that you all find us in a state of re-inventing ourselves and not for the first time.

I don't know how much you know about Reno or the Reno, Sparks and Washoe County area, but we're somewhere in the vacinity of 150 years old. It was started as a place where people could stop off for a cup of coffee on their way to the gold fields of California. Subsequently, it became a base of operations for the silver mining industry which was growing at a substantial rate in the Virginia City area and Comstock area, just about 20 miles south of here. It became a stop on the Transcontinental Railroad. Sparks, our neighboring community, is known as the rail city.

In the 1930s, when the state was in desperate state in the midst of the Depression, the city became the first place in the country to establish legalized gambling or, as we call it today, gaming. It grew as a gaming capital over the years. It has to take a back seat to other areas in states across the country, Las Vegas to the south of us and Atlantic City, the 40 or so Indian reservations across the mountains in California.

Given all that, we've had to take a look at what me might be in the future. That's the process of re-invention that we're going through. We're still a base of support for the mining industry. A lot of companies headquarter here because we've discovered a lot of gold in the state of Nevada. Indeed, Nevada is second only to the Soviet Union as a producer of gold, though that production is slowing down a bit, owing to the declining price of that valuable mineral.

We're also a warehousing city and becoming more so. High-tech industries are moving to this area. If you have an interest in seeing all of that at work, you can go north of here on 395, take a left and you'll be on McCarron Boulevard and that's the ring road. It goes around the city. You can see about everything you'd like to see in that process. I hope you'll glance to the left when you're on McCarron. You'll see the university. We're very much a part of that re-invention process and delighted to be so. We were able to give Jim and the Executive Committee a look at our institution on Saturday, particularly of our athletics facilities. I see our athletics director, Chris Ault, is in the audience. I'd ask him to stand, but if he did, you still wouldn't see him because he's only about 4' tall. Chris Ault will happy to show you our facilities. He would be particularly happy to show you Legacy Hall, which is his vision and his creation. It's a marvelous facility that serves as our Hall of Champions and our Hall of Fame.

Thanks very much for being with us. I'll see a lot more of you today, probably more than you would like, so I will rest on my laurels and sit down. Thanks very much. I'm glad to have an easy chair up here to do that.

Jim Livengood:

Joe Crowley, thank you very much for your great hospitality. It's now my pleasure to introduce our Keynote Speaker, Stephen Covey. It's amazing, the things this gentleman has down and we are very honored and pleased to have him here with NACDA. Stephen is the co-founder of the Franklin Covey Company, one of the largest management and leadership development organizations in the world. He's best known as the author of The 7 Habits of Highly Effective People, which is ranked as a number 1 best seller by the New York Times, having sold more than 12 million copies in 32 languages and 75 countries.

Other books co-authored by Stephen Covey include Principle Centered leadership, The 7 Habits of Highly Effective Families and First Things First.

Stephen has received numerous awards including the Thomas More College Medallion for continuing service to humanity. He was named the Sikh's 1998 International Man of Peace, the 1994 International Entrepreneur of the Year Award, Inc. magazine's Services Entrepreneur of the Year, and, in 1996, the National Entrepreneur of the Year Lifetime Achievement. He recently was recognized by Time Magazine's as one of the 25 most influential Americans and one of the Sales and Marketing Management's top 25 power brokers. Additionally, Stephen has been awarded four honorary doctorate degrees.

An undergraduate at the University of Utah, Stephen earned his MBA from Harvard University and his doctorate from Brigham Young University. He served as an assistant to the president and a professor of business management and organizational behavior at BYU. We are so proud to have him with us today. Please help me welcome Stephen Covey.

Stephen Covey:

Thank you Jim. It's tremendous to be with you. If you see me walking a little gingerly, I was in some kind of bike outing in Montana. I was going around the campground on a new bike that I borrowed and I interpreted the gear as the brake. It had a new braking system and I pulled it hard and wow, was thrown from the bike and tore my hamstring. I'm not in any pain, I just walk gingerly. I feel, in a sense, that I'm an ex-jock talking to a bunch of ex-jocks.

I'm going to use a number of slides in this presentation. If any of you want to see better, there are seats on this side. First of all, let me suggest a way of getting the very most of this conference. I've given this kind of encouragement as a keynoter at the beginning of many conferences and I can guarantee you it will double or triple the value of the conference experience. It comes from what's called a paradigm shift. You just simply see your role differently. You're not here as a learner, you're hear as a teacher with the intent to teach the key learnings of this whole experience to your associates and to others who might have an interest and, also, to your loved ones at home. The principles we talk about are as applicable at home as they are in your professional work.

If someone were to ask me, as an educator, what's the single most important thing you've ever learned, it's the key to get people to see their role as a teacher and to teach. When you teach, you literally will remember essentially most of that which you learn. It also creates a desire to apply it. Let me suggest a way of taking notes during these days of meetings. Take your paper and put a line down the center of it. On the left side, put the key learnings you really want to think about and contemplate. On the right side, put your key action steps you're going to take in terms of those learnings. At the end of the conference, go carefully back over this whole list. Teach your associates and others who would have an interest the left side and you act on the right side. If you will do that and really share what you're learning and what you're planning to do, you'll loosen up the process of change.

A university president just talked about re-invention. You can literally re-invent your life and the culture will sustain it. Right now, other people label all of us in a particular way. You can unfreeze labels that are had upon you if they see you as a re-inventing person, as a person who is growing and developing, who is learning. So, if you teach, you don't teach something that others should do. You teach what you are learning. That humility, that openness unfreezes labels and it enrolls other people as your support group to make your action plan work.

I cannot say enough about how this has been demonstrated and how I have seen this proven again and again. See yourself as a teacher of this material within two days of the finish of this conference.

Secondly, I commend you on your desire to focus upon leadership because most organizations are vastly under lead, requiring more and more management. The less you provide leadership, the more management you need to provide, the more you need to hover over, check up, follow-through, and supervise. The more you provide leadership, the less management you have to do because people will essentially manage themselves.

I'm going to attempt to talk about leadership. You will notice two words, urgent and important. Important, basically, means your central values, your purposes and your strategies. Urgent, basically, comes from the environment. When they overlap, you have what's called a crisis and you get into crisis management. That's quadrant one.

Here you're spending several days in quadrant two. This is really not urgent, but it is very important. This is the leadership quadrant. It is not a crisis management quadrant. Every hour spent here can significantly reduce quadrants one and three. Three is not important, but it is very urgent. Most people, like gambling addicts, often become addicted to the urgent, literally. They almost are guilt-tripped when they are not involved in something that is in quadrant one or three. Urgency drives them. They neglect quadrant two, leadership. By the way, quadrant four is, essentially, worthless. It's neither urgent, nor is it important. If someone says that's where he or she gets his or her relaxation, I'd say, is relaxation important? Is leisure important? You'd say, yes. Than that is quadrant two.

To define what is important, what matters most is the essence of leadership. To get the culture behind that definition and to agree upon it is the essence of cultural leadership. To get the structures and systems to support it is the essence of institutional leadership so that you have constant nuturance and reinforcement from the structures and systems of the organization itself.

Let me show you this data on the research on prize-winning organizations to see where the managers are spending their time. This is very significant profound data. D stands for the Demming award-winning companies. This is one of the most prestigious coveted awards. It's not just business; it's for any organization. Sixty-five to 80 percent of their time is spent in leadership. The highest component of management is leadership. Only 15 percent in quadrant three. The other organizations studied spent only 15 percent in quadrant two. You can see it's from 60 to 65 percent in quadrant three. If you add quadrants one and three, you come up with 75 to 90 percent of their time spent in management activity. Half of that is essentially unimportant.

That line between one and three is not even present with those people because urgency defines importance. In other words, if it is urgent, it is important. We found that half the report forms are never even studied. Half the meetings don't need to be held. The other half could be cut in half. How much time do you think you spend in quadrant three? Make a guess. Think carefully. You're working hard with many balls in the air all day long and the ball hardly moves forward. Tomorrow, you know it's going to be another day like it. What would you say? You put time logs on people for a period of one week. Most people acknowledge that over half their time is spent in quadrant three.

You're not neglecting quadrant one when you attend to quadrant two; you neglect quadrants three and four. That's why I commend this effort to focus on leadership during this conference. You'll also, I'm sure, deal with a lot of logistical and managerial issues, which are useful also, because you cannot neglect quadrant one. That's where the fires are and you have to put them out. You people have an unusual array of challenges and problems that are descending upon you constantly from all of the stakeholders you're attempting to serve and they're fickle and they're political and they constantly change. Your student-athlete group is constantly undergoing change. Ultimately, you're attempting to do what you can to develop them in their sports as well as future leaders and citizens of our country and of the world so that they contribute and really make a difference. You also have all of the other pressures from the administration and all of the political forces that are operating there. You have all of the needs and pressures of the coaching teams, your own associates, staff, donors, sponsors, media, press, fickleness of the public, all of the forces that play upon the public and the pressure put upon the institution.

I served for a number of years with the president of the university and saw the kinds of issues he had to constantly confront. I saw several athletics directors and what they have to deal with. It's very challenging. It takes its toll on you and on your mind, your body, your emotions and your family. I commend to you to make a commitment to quadrant two, to leadership. Reduce three and four. You can. You can decide, however, to put a line between quadrant one and quadrant three to decide what is it that is truly important is a very tough process. Even tougher, is to get the culture to buy into that to become part of it so that others also understand. One helpful technique is that every agenda you have, put next to the item, Q1, Q2, Q3 and 4.

If you have the presence of mind to start with quadrant two, you begin to educate your culture relationship building, empowering the leadership issues. If the fire is really burning, if there is really hemorrhaging taking place with the patient, of course, you must attend to quadrant one first. But, you'll find that one and three will dominate most organizations. Two gets neglected. Two is called other business and people never get to leadership. People don't even get to leadership on their own personal lives, on their family lives. There are a very few families that have ever developed a family mission statement. This is one of the most powerful and effective things you could ever do to get everyone on the same team in your family. To cultivate and nurture a culture that creates its own internal immune system so that problems strengthen the family because the immune system is there.

Now, I want to talk about leadership in terms of four basic roles. I call these the four roles of leadership. I'll also relate them to how the seven habits apply to these four roles. You have a handout and you'll see anytime there is a number on the bottom of the slide that refers to the page in your handout. Does everyone have a handout? By the way, this can be a very useful tool to use when you go back and teach because people relate to these visuals if you can take time to explain them.

Without any peaking, everybody close your eyes and point north. Don't peak. Now, open your eyes and see where people are pointing. People are pointing in many directions. I don't have the foggiest notion where north is. Let's see who are the experts. Anyone, who is extremely confident about where north is, raise your hands. Now please stand up. The people standing up close your eyes and all of us watch them. Those of your whom are standing with your eyes closed, point north. Now look. This lady is pointing this way. The gentleman is pointing another way, etc. That's six people and there are only two that agree and they're experts. Thank you. Does it shake you at all to see him pointing differently than you? It does a little. Does it you? You're absolutely confident. I have a secret weapon here. Under my watch is a compass. North is that way. Every expert was wrong. How many got this one? That's about six people.

My helper will put up the overhead compass. The first role of leadership, which I think, is so self-evident it hardly needs to be mentioned, but it is so foundational. The first role of leadership is modeling trustworthy behavior. In other words, living by principles, by natural laws. Why? Until there is trust, you have no cement in the culture, no cement in building the building and trust is the missing ingredient in organizations. In spite of all the new initiatives that have been taken, trust is the one most neglected.

We did research with 54,000 people to ask what is the number one characteristic of leadership. Integrity was the answer. That is a huge sampling. Integrity means integrated around principles. Integrity is not honesty. Honesty is one of the principles. Integrity means integrated whole complete around principles' natural laws.

Put up the compass, if you please. You'll notice on this compass, there are two indicators, the one pointing north and then, the arrow. You'll see the one pointing north. This is called the direction of travel arrow. That represents people's behavior. The key is to align behavior with north or with principles. That's integrity. Show the alignment. Good. Show it miss-aligned. Personal alignment creates trustworthiness. Misalignment, inevitably, will create a loss of trust. Let me illustrate. Let's say, as an athletics director, you talk to your associates critically about other associates or about the administration or about some coaches or some student-athlete in a way you'd be ashamed to have that other person overhear. Now, it's not bad to talk critically of a person as long as the very spirit of it is so responsible and respectful of the other person that you would really not be ashamed to have them overhear, even though you would want to make sure the timing and the context is good. When you get in a spirit of negativity and really character assassination, you know you would not do that with that person. Do you realize the people you are with will know that you would do the same thing with them when they're not present? In other words, the very trust with the people you have around you seems to be cemented as you unitedly badmouth someone else or another organization. All it will take is pressure and circumstances and you'll find that it will weaken you relationship with them. The brick is flawed. If you stress the building, the brick can break.

I was coming across the boarder from Canada and saw a great deal on a leather coat, about half off. I talked to the proprietor who had two salesmen standing next to him. How much do you have to pay? He said, "Nothing, just wear it." The form requires that you list everything you bought. "Don't worry about it, Mr. Covey, just wear it. It's just personal effects. No one will question it." I said, "Yes, but you've signed a form that everything you said is truthful." He said, "Mr. Covey, listen honestly, in other words, trust me. It's okay." I said, "The thing that worries me is that the two gentlemen standing next to you must wonder how you manage their careers and their commission arrangements." All three of them just stood there. They knew they were manipulating each other. They were manipulating me to manipulate the government. Integrity is personal alignment toward principles in every situation. With this situation, the key to the loyalty of those who were present is to be loyal to those who are absent.

Apologize quickly, rapidly when you blow it. We all blow it. But to acknowledge clearly, I apologize, that was unkind of me. I cut you off and I didn't give you a chance to speak. You live in a culture where there is a lot of authoritarian behavior and the culture tends to nurture these strong dictates that can come from people who are up on high. Coaches often learn that. Consequently, it often destroys synergy. It's like a surgeon in that critical moment, authoritarian behavior may be necessary, but it cannot be the standard MO. Otherwise, it kills creativity. To learn to apologize is wonderful. In the Eastern expression, "if you bow, bow low." I suggest modeling trustworthy behavior. Put next to it the icon of an anchor.

Modeling, personal trustworthiness. Now put, if you would, the emotional bank account. Trustworthiness alone cultivates trust. Trust enables the other three roles, pathfinding, aligning and empowering to take place. Trust is the cement. We have studied what builds trust. I call it the bank account. It's a shorthand way of building a feeling of trust, dependability, predictability, because people know you are based on principles. When you blow it, you apologize, you acknowledge it. You try to make reconciliation. I wish we had time to go through that list. It's on page one of your handout. You have the list. Think about it.

About a couple of weeks ago, I was in Korea. I had the privilege of having a good hour session with the president of Korea one-on-one. Then, his cabinet came in. I asked him about his life. President Kim is not as well known as some, but he was recently elected after many years of tremendous persecution. He was imprisoned for several years. He is the Nelson Mandela of Asia. He literally gave amnesty to his enemies after he was elected president. They tried to assassinate him several times. One time, they ran him down with a truck. Another time, when he was exiled to Japan, they put him in a bag with rocks and put him in the China Sea. The CIA had been watching him for years and constantly following him. They were in helicopters watching this whole thing and pulled him out of the water with a hook. These are the experiences this man had.

At one time, they offered him the presidency, but he knew it would be a puppet thing with this military dictatorship, so he refused to cooperate. They threatened his life to kill him. They hesitated to do this because they knew he had a high emotional bank account, tremendous social capital, and moral authority inside the wider culture. He said to them, "Go ahead and take my life. I will only die once. If I cooperate with you, I will die 100 times every day for the rest of my life." He told me about the support of his family and he teared up when he told us, not just his immediate family, but his extended family, how not one deserted him. He said to me, "Unless you're prepared to die for your principles, you are not principle-centered." I had given him the Principle Centered book to him. Ultimately, you must be prepared to make the complete sacrifice if you are truly principle centered.

The key to change is to have something that does not change, that is steady and that you can depend upon and that gives you your primary source of life and security. It gives you wisdom and power. It gives you moral authority and social courage. The first role I suggest is alignment toward principles. I call it modeling, trustworthy behavior.

The second role is the pathfinding. We did this pointing exercise a moment ago. I'll ask you to do two little tests and see what happens. When you go back home, go to your immediate associates and say, "In a sentence, what is our purpose?" Have them then write exactly what each person says. Go to them individually and do this. Then say, "In a sentence, what is our strategy to accomplish that purpose." See, that's mission and strategy. I'll guarantee you what you'll find because I've done this many times including with some of the largest and most well renowned organizations in the world. They'll point in every direction. You'll be amazed. You'll even have your mission statement on the wall and say, "Well, look at this." Do people often know that was rushed, it was announced and then it was ignored and forgotten? It became some kind of sideshow vision workshop. It wasn't a main tent development of common cultural criteria, which governed every decision. Pathfinding was not done. That's getting the cultural commitment to the mission and to the strategy.

How many of you have ever done jigsaw puzzles? How important is it that you have the final scene in mind? What would you say? On a 10-point scale, how important is it that everyone who is doing that jigsaw puzzle has the same final scene in mind? It's like a 12. Can you imagine trying to do a jigsaw puzzle with everyone having a different image in their mind as to what they're trying to create? That is so common. Because it is so common, because the leadership activity is so neglected, this is why there is so much management and so much quadrant one and three crisis. They're not on the same song sheet. There isn't this common image. This is habit two, begin with the end in mind.

The essence of the first one is Habit One. Be proactive means that you have the power to choose your response to change and to that which does not change. You have that power. Those are the three constants of life -- change, changeless principles and choice. Habit Two is how you're exercising this choice. What is our mission? What are our values? You do not change your mission and your values; you change your strategy, your structures and your systems because you have to reflect the change in realities of your environment.

To do strategic thinking and to have your group participate in it is significant and to teach this, also, with your coaches and their coaching assistants and I believe with players, the more there is involvement, the more there will be commitment. You get constant violation of the so-called rules because people haven't emotionally bought into them and there is no social reinforcement. Without involvement, there is no commitment. That takes a mind set, particularly in an environment and a culture where you're not even allowed to be involved in a lot of the decisions that affect you. You're running or swimming up stream against a very powerful cultural current. I find that when people are put to the ultimate test, the practice of their style tends to drive their whole style in every range of life, like a surgeon, a coach and a military person commanding the approach.

In fact, the whole situation of leadership requires commitment, not compliance, not a kind of malicious obedience, but real internal, emotional, mental commitment. That's the pathfinding role. That's the development of the definition of what matters most. That's the line between quadrants one and three. That is the fruit of trustworthiness and the creation of a trust culture so people are open and honest with each other. You'll find agreement will come particularly around the values.

Enough people, fully informed, interacted freely and synergistically in an environment of high trust. We have our international conferences and it makes no difference what the nature of the organization is, what the culture is, what nationality, what religion, what ethnic group and we have found that if these four criteria are met, guess what? They all come to the same value system everywhere. I just left Asia, India, the Middle East, Africa, Europe, all through North America, South America and we find the same basic, underlying moral sense. It's like T.S. Elliott said, "We must never cease from exploring and the end of all of our exploring will be to arrive where we began and to know the place for the first time." These principles are not mine. I didn't invent them at all. These belong to everybody.

The greatest gift you can give to another person is themself. The affirmation of that which they already deeply know in their heart of hearts, those values. You know what they lie in? Four areas. One, we must simply survive the value of economic physical survival; two, our relationship to each other, how we treat each other with love and respect; three, how people grow and develop and use their talents, and; four, they use their talents to something that adds value, that contributes, physical, social, mental, spiritual to live, to love, to learn to leave a legacy. Those are the four areas, always. It's very interesting. In spite of situational ethics, when you meet those four criteria, they always come to you. You may use different words and they're manifested in different practices based on the culture, but the underlying sense to live, to love, to learn, to leave a legacy.

Then, you have internal motivation. That means people manage themselves. You have empowered people. What does that mean? You have unleashed that which is already in them. You don't motivate them; the motivation comes from within. You distort one of those and it will have a domino negative effect upon the other three.

The reason why you people are willing to undergo the tremendous challenges and stresses of your lives and pressures and conflicting cross winds and political forces that play upon your lives is because you are leaving a legacy. You are impacting kids' lives. That's what gives all your activity meaning. Most jobs are 50 percent frustration and 50 percent exhilaration. That exhilaration helps make up for the other 50 percent. You are really developing the future leaders of tomorrow and you know that. These people are learning teamwork, discipline, interdependency, initiative-seeking, creativity, pay the price, where they often don't learn it in academic subjects, like I didn't.

I learned to figure out the system and how to beat it. Many people have learned to do that. When it comes to forming and competitive athletics, you teach such powerful character strengths. In my judgement, I've had all my kids strong in athletics activities, particularly team sports where they learned interdependency, as well as independence. I would be hard-pressed if you were to ask me which I value most, their academic or their athletics training. I'm serious. When you get into the world of business and action, you need that understanding of interdependency of teamwork, of discipline. My doctorate took me eight years partly because I had to go back and get an undergraduate. I didn't actually get another undergraduate degree, but I took those classes again. Why? I took the shortcut before. I learned how to beat the system. I never was an athlete because I had crutches during my junior high and high school periods. I had to pay the price that I saw my kids pay. Many have criticized me because I don't have my boys out working. I say, "They are working so hard on these athletics teams and that is so valuable." I would rather have them do that any day than go out and work. Every one of them now is like a workaholic, which is not good either. It's the discipline.

What a legacy you leave. That's what gives your life meaning. All four are so necessary. Pathfinding is the strategic planning. The next one is the aligning. Put under pathfinding the map of a ship going across the sea. This ship knows the destination and it's going there. It may be off track, but the destination was reached. What if there was no sense of destination and no common understanding of leadership work? You have to supervise, check up. I opened the family book with the statement, "good families are off-track 90 percent of the time. So what. They know their destination. Why? They have a clear sense of their purpose and their values. They keep coming back to that. Vision is the breakfast of champions, feed back the lunch and self-correction, the dinner. Start always with vision, strategic planning.

What does alignment mean? This is what institutionalizes these principles. This is what makes people independent of you. Just imagine, in the House of Representatives the President of the United States was impeached. The next day, the President of the United States received 28 standing ovations in the same house, the very next day. Why? Institutionalization of moral authority, through the Constitution. It's been institutionalized. We are not dependent upon the strengths and weaknesses of one person. There's too much bench strength in this country that has enabled us to survive the major traumas to it's national life. Vietnam, Watergate, World War II, World War I, the Great Depression, the present crisis in the world, why? Why is this the envy of the entire world? We have a system based upon principles called the Declaration of Independence and the Constitution that does not change. Only 26 amendments in more than 200 years. Two-thirds of the legislature behind three-fourths of the legislature have to make change. You just don't make changes. Some things do not change; you can depend upon it.

So, you're not that vulnerable. Sadaam Hussein promised his two sons-in-laws, come back to the prism of the family and we'll give you amnesty. He shot them both that afternoon. Why? He was the constitution. He was the law. Here, we have the rule of law.

How do you do it inside your own organizations? You build the criteria of pathfinding, mission, values, strategy, etc., into the structures and systems so there's accountability, even with you, that no one is exempt. Even the President of the United States is subject to the rule of laws. He was tried and convicted in one of the Houses. This is what institutionalizes; otherwise, you're subject to the vague reason, political whims of everything that changes. There's no continuity. It nurtures a politicized low trust culture with no steadiness, with an agreed upon set of principles and values of the pathfind stage. Our whole country is illustrative of this.

Do you know that until about 1950, six percent of the population of the world produced one half the productivity? Why? The system. To break with the divine right of kings, the old system of Europe, and to set up a system based upon principles, "We Hold These Truths to be self-evident." All men are created or endowed by the Creator with certain inalienable rights and among these are life, liberty and the pursuit of happiness." Then, the first 10 amendments, the Constitution. No wonder we're so hung up on who gets on the Supreme Court. We know they will interpret the criteria that will govern all statutes, all laws. Those criteria are based on principles, the power of this magnificent country. Nothing like it in the world. It is the standard. Most of these new constitutions are fashioned on them, even the Russian. Russia has no moral authority. It has no personal moral authority in its leaders. It has no institutionalized moral authority.

I just left Ireland. I've lived in Ireland for years. I was involved in helping train the people having to do with the peace process. Magnificent peace agreement, really. They want to institutionalize the principles, but the extreme groups on both sides tried to derail it because there are economic benefits to both sides in doing so, plus the hatreds are so deep they can feed on them. They can dichotomize the entire culture. I lived where the bomb went off and 28 people were killed. They're trying to derail it.

The key is to get the critical mass and critical mass is only 20 percent of committed people. It's not 60 percent. If they can get the critical mass to break down, they can keep the troubles going forever. If the critical mass will not lose its will, because it's social will that drives political will, if there is a steadiness toward the peace agreement, you have institutionalization. Ghandi fought for institutionalization. He knew there had to be a new constitution, a new country formed, not under the control of India. It took his personal moral authority to develop it, but he was never elected. He never ran for an election, but he was the soul of India and everyone knew it. Eventually, he brought about the liberation of 350 million Indians. He was the George Washington of his country.

I'm often asked by media, "who do you respect the most of all people in the last 1,000 years?" I say to them, the founding fathers of this country. Why? The new system, the new experiment, the standard by which the whole world has had to look at what has unleashed this tremendous creative talent and capacity. Why is it that the higher education system is without peer in the world? You represent that system and are a significant part of the development of these young people.

Why? System institutionalization. It won't happen without institutionalization. Otherwise, you're going to be subject to the political beggaries of each new person that comes in and the systems that reflect their style. When people constantly live with that, they find their satisfactions elsewhere, the fire goes out, and they press for more money and less time. The culture becomes dichotomous, it starts to fight the formal organization, and you set up social morays and norms that will not sustain the law.

That's what happened in East Los Angeles after the Rodney King verdict came down. There was no order, no law, no sustaining. When morays are sufficient, laws are unnecessary. When morays are insufficient, laws are unenforceable. There was no law, no order, no civilization and there was no mercy. After about two days, the rule of law was established.

In Russia today, they can hardly collect taxes, they can hardly pay the army, and there's no central command. There is total confusion, chaos when under communism. Talk about devastation, no moral authority. Democracy takes tremendous independence to choose to be interdependent. It takes tremendous maturity. President Kim is trying to bring about the unification of North and South Korea. He's got tremendous moral authority in the north and the military dictatorship there knows that. If he were to lose his moral authority by violating the first of these roles, they would love that. Almost like Thomas Moore in the Middle Ages, when Henry VIII tried to pressure him to give in on his principles and put him in the Tower of London. Why? Because his moral authority bellowed up and down Europe and undermined the whole British Empire and Henry VIII knew it. He tried to do everything he could to break that man. He would not. He eventually sent his wife, daughter and son-in-law to him in the jail. They pled with him to take the oath and come home with us. He said, "If I do this thing, I would lose myself. You hold your own life in your own hands like water. If you open your fingers, you'll never find your life again." And, then, he said, "They're going to take my life. Leave the country. Go now. I will not do this thing." Here I am quoting him, which brought about his beheading. No one quotes him. He lived a few years longer, but what a legacy. This kind of moral authority needs to be institutionalized so that it perpetuates itself.

The first three roles are the condition to the fourth role. Modeling, pathfinding and aligning unleashes human potential. For aligning you see a wheel so that when you turn that wheel, the whole ship moves and the icon for empowerment is the wholly masted sailing ship handling winds, bad weather, rough seas because of the power, everything being aligned together and it reaches its destination.

Empowering is a process of overlapping the four needs of the organization and the four needs of the individual to live, to love, to learn, to leave a legacy. Here are the four needs of people and here are the same four needs of organizations. Every organization has to survive. You people, more than anyone else in the university and college settings, are accountable to more of a business requirement of producing your own living. Some may be subsidized from the wider budget, but most of you have to pay your own way. There's no safe harbor. You are vulnerable to the marketplace, to the public, what the public wants, ultimately, the support. You have to live, to have a culture based on love, respect and kindness to help people grow and to develop. Every dollar put into solid training returns 20 times, but if you have a think paradigm rather than a people paradigm, you look on training as expense, not investment. Most training is wasted because it's not put inside a context. It's just sideshow. It's not training toward the criteria of that which is most important and which is institutionally reinforced continuously. Now, when you blend these together, the four needs of people and the four needs of organizations come together.

Put up the seven habits please. Notice four, five and six. You people are in the constant process of negotiation with everyone that you interact with constantly. You're trying to raise money. You're trying to get people to cooperate. You're trying to get student-athletes to be part of a team. These are the most powerful principles. Habit four, always think, win/win. Most people have been so inculterated toward win/lose, they've come out of so much competition in so many venues, they cannot think outside of it. They even compete with their spouses. When their kids take them on, they take them on back, literally. Competition in the basketball arena is one thing, but at home and with your own team? Always think win/win. Think win/win. It only takes one person to think win/win. It doesn't take two people, only one. Again, it only takes one.

What's habit five? Always seek first his interest. I want to understand your four needs. What are your interests, your purposes and your values until I get his confidence and trust, then to be understood? All I had to say to you was, why don't we both win? Synergy, which is the releasing of a new option, a new alternative, better than compromise, better than defensiveness, better than a win/lose behavior, where I win and you comply. Synergy is the commitment of us both, fast and easy. You can do that at home, with anyone. Just remember, the first thing is to think win win. Only one person, not two. The next thing is to seek first to understand. Until trust comes, the number one item on the deposit was seek first to understand.

I don't know what your four needs are until I understand you. I don't know what's important to you, the student-athlete, coach and administrator. I need to understand. Help me understand. One of the most powerful things to say is help me to understand. Then, to be understood. It releases creative energy. I did this on the Oprah Show one time. I said, "Oprah, why don't we both win?" She said, "No way." I said, "Why not, Oprah?" "I was raised on the street and there was no way I'd give in to them." I said, "Fair enough, Oprah. Just let you win again. We'll come up and we'll go down. Here's another dollar. I know how bad you need that Oprah." We go up and down until we got confidence and trust, then you get synergy.

Essentially, the first role is Habit One. The second role is Habit Two. The third role is alignment. The fourth role of empowerment is Habits Four, Five and Six. The Seventh Habit, renewal, constantly attends to the same four needs at the personal and organizational levels so that you keep all principles contained within those habits going. What does the compass stand for? Principles. What about the anchor? Modeling. What about the map? Pathfinding. The wheel, aligning. The sailing ship is empowering, full release of the human talent and energy. I want to show you a video on these four roles. Now, I want to show you a video of a coach and the four roles of this coach. This is a soccer team in Uganda. The coach was not formally appointed. He was requested to help young men who are languishing without any skills that could be marketed and who were into drugs and gangs, who were pick pocketing for a life. The reason they wanted him to be their coach is that he had such moral authority. He was so well known as a fine person and a great soccer player. The big Europeans clubs were looking at him where the big money was. He had someone intentionally hit him in such a way that it blew out his knee, ending his career. He could have languished in self-pity, a quicksand of vindictiveness and anger, but he didn't. He chose a different path. He chose to leave a legacy. Our company just sent him 200 soccer balls. We do this every six months because he sets up these soccer teams all over Uganda on a regular basis. Notice, the four roles, the modeling, the pathfinding, starting with soccer, then helping these young men develop some kind of a craft or a marketable skill in preparation of becoming contributing citizens and fathers, aligning resources and skills to make them independent of him and then they are empowered which is the fruit of the other three roles. Watch this. It's a very inspiring story. (Video)

Really work hard to develop and focus on that which you have influence over. Get your head out of the weaknesses of other people. Get your head out of the weaknesses of your institutions or of the system. You'll notice another symbol up there right next to the anchor. It's a trintab. The trintab is the small rudder that moves the big rudder. The big rudder moves the whole ship. You need to have more leverage to move the big rudder. If you're a trintab person, even though it's a small circle of influence, I'll guarantee you that the social capital, the emotional bank account, will get larger. You will start to develop a larger moral authority.

I saw it in my own university. The number two person became a trintab and he was not number two for a long period of time. Eventually, a whole award was given around his name because even the president would not make significant moves without this man's blessing because he had so much moral authority. Your circle of influence will simply get larger and larger and larger.

Involve your team in developing a mission statement. Involve your family in developing a mission statement. Our family took eight months; about 30 words long that have so much meaning that is impacted. Now, all of my married kids have mission statements. Everyone of them wants to make a difference. Everyone is focused on contribution, not making a living. It's important to live, but to leave a legacy is the reason for the life. Develop mission statements, work with mission statements and then with the strategic planning that flows from it.

For aligning, I suggest you double the time you spend on quadrant two. Examine everything against quadrant two. Is it important? Does it contribute to that mission? Let everything fight for it's life, every practice, every report form, every meeting. Does it focus upon the mission and the strategy? Double the time you spend in quadrant two and then in 30 days, double it again. You'll be amazed the productivity that comes from it.

With regard to empowerment, I suggest you rebuild one broken relationship that you care a lot about, that's precious to you. Do what it takes to rebuild it. Think win/win. Seek to understand, apologize and let it go. Don't be wounded by the injustices of others. It isn't the poisonous snake that bites you that does the serious damage; it's chasing that snake that drives the poison to the heart. It's always our chosen reponse to what happened to us that hurts us. Let it go. Rebuild it. It may be a top administrator that you have an ego battle going on with, it may your spouse, a teenage kid that's giving you a fit, rebuild one broken relationship. You do those kinds of fundamental things; you'd be practicing personal and organizational leadership.

This last two-minute trailer, we're putting into theatres all over this country. We have them in about 5,000 now, just to create an effective sense about the four needs of all people. This is called To Live, To Love, To Learn, To Leave a Legacy. (Video)

I want to express appreciation for the intensity of your listening this morning, the privilege of participating. I also want to tell you how much I admire the tremendous work you do in blessing the lives of all of these young people, these student-athletes. It's tremendous what you're about. I admire the way you attempt to come together to discuss the major issues of your profession. I also would encourage you to really practice this effort, to see yourself as a teacher during this next period of time so that you reflect. Otherwise, you could find yourself in just a few days going back to business as usual and this whole experience can be lost to you.

I admire your organization and, again, thank you.

Jim Livengood:

Stephen, thank you. On behalf of NACDA, let me present you with a token of our appreciation. Ladies and gentlemen, we'll take a short break and return for our next session on gambling education at about 10:15 a.m. Thank you.