GE CEO Jeff Immelt uses a checklist to stay sharp, based on a course he teaches at GE for emerging leaders called "Things Leaders Do." He says: "The most important thing I've learned since becoming CEO is context. It's how your company fits in with the world and how you respond to it."

"Context" is multi-dimensional, and can be explored in various depths. Here are some suggestions:

1. Determine what environment you want to co-create with and for the people you serve—then set it up consciously.

2. Establish and model ground rules that everyone accepts and agrees to uphold (not consensus, but acceptance and follow-through).

3. Influence staff with an attitude that you want them to have and to hold steady throughout a given project.

4. Consciously create a culture where the stories, rituals and images reflect who you are as a company and how you choose to serve the world.

5. Have the first words spoken in meetings, presentations, marketing ads and sales calls set the tone and reflect a consistent portrayal of who you are as a company.

6. Articulate and model values that prevail through changes.

7. Teach people, based on company values, the desired responses to the chaos, discord and upheaval that's bound to occur in any corporate setting.

Let's look at this through a fairly typical scenario. Before a colleague gets ready to discipline an employee who has been a star performer, ask: "What context are you setting for your discussion with Jason?" Chances are, his response will be something like: "What do you mean? He set the context by not showing up for the meeting with the customer. I'm going to tell him I expect better from him and that his behavior is unacceptable." Setting context in a purposeful and strategic manner is more often than not skipped entirely.

Let's follow this imaginary (though common) scenario to completion. Our leader has the disciplinary meeting with Jason, rebukes him for his unprofessional behavior, maybe even provides a description of future desired responses in a similar situation, and ends with a reasonably neutral message: "I know you can do better. That's what I expect going forward."

What's the impact on Jason? What kind of feeling is he left with? Where is he likely to spend his energy over the next few hours, maybe even days?

• He feels threatened, fearful about his job security, angry, demoralized.

• He didn't get a chance to speak his truth—he hasn't been heard.

• He feels a need to talk, and goes to a colleague to tell his story.

• He broods about "the whole company" negatively based on this one interaction with his boss.

In the larger picture, the leader takes into account what he wants to accomplish, his responsibility as a leader to influence and develop his staff, and what the company values. He asks and answers the tough questions and then establishes a safe and open environment for Jason.

"Jason, you've been one of my star performers over the years, and I've grown to depend on you for good decisions and follow through. That's why I was so surprised when you dropped the ball with the McKinney case. Your failure to show up at the meeting left several people scrambling to respond without much preparation, so our execution was less than stellar. McKinney postponed further contracts for the time being, which, at best, delays a financial win for us. You're important to me and to the company. We can work through whatever is troubling you, so tell me what caused your failure to follow through. Then let's discuss how we can prevent this in the future."

At this point, the leader listens. He set the context by defining Jason's usual high standard of delivery, stating the impact of his actions, reiterating company expectations, expressing care and concern, and planning to work together for improvement. In most cases, all that remains for the leader to do is summarize next steps and reaffirm their rapport at the end of the meeting.

In what state of being do we find Jason?

• He feels supported despite his mistake, inspired to improve, and eager to prove his value.

• He's complete with the interaction, far less likely to talk about it with others.

• He feels respect for his boss, confident that he has someone to turn to as needed in the future.

• He's ready and eager to get back to work and demonstrate his best.