Posts tagged 'Leadership':

Do You Have the SPACE to Do it?

March 27, 2012

Posted by in Blog, Thought Leadership with no comments

I’m often asked to give a plan of attack when taking on a new
assignment.  While there have been
thousands of books written on the subject, successful leadership requires an
organized and thoughtful approach from the start.  This approach can be concisely summarized in
an interview, but it takes up to a year to fully implement and ensure you’re on
the right track.  I call it the make SPACE
approach.

Strategy:  All organizations require a strategy so they
know where they’re going in the first place.
This includes a Vision, where the organization sees itself in the
future.  It also includes a Mission, how
the organization intends to get there or its purpose for existing.  The key components of speed, quality and cost
also come into play when putting together a strategic plan.  The organization must decide in which of
these areas will it strive to be “best in class” and in which areas is it sufficient
to be competitive.  Trying to be
everything to everyone can get a company in trouble, but failing at one of the
above to at least be competitive is also dangerous.

Process:  Organizations need a “road map” for employees
to function over time.  They must know
what they’re supposed to be doing and how they’re supposed to be doing it.  This includes systems and processes that it
takes to complete basic functions such as payroll, billing and accounts payable
for example.  And all company processes
need to be documented and employees must be doing what is documented.  Early stage companies are naturally in a
state of “flux”, but they also must invest time in this part… even if it
changes frequently.

Accountability:  The organization must establish measurable
and attainable goals for all to see and understand.  Those goals must clearly tie back to the
Vision and Mission.  More specifically, I’m
referring to an individual report card at all levels.  When things go well, celebrate it and when
things don’t meet expectations, corrective actions must be taken.  A company without this focus may have the
best and brightest employees, but if they’re all going in different directions,
they’ll have a much smaller chance of reaching the goals.

Continual Improvement:  All that we do can be improved or refined in
some way over time.  Without a continual
improvement approach to what the organization does, things will stagnate, people
will get bored and results will erode.  I
would say that one percent of your team has to have this as their only goals –
process, product or service improvement.
Some would use the techniques such as Lean or Six Sigma to accomplish
this and that’s fine.  It doesn’t matter
what you call it.  What matters is that a
culture of continually evolving to meet and beat the expectations of the
customer, internal or external, is required to continue to grow.  The most successful organizations have this
as component of their DNA.

Environment:  Last, but not least… if your organization has
people in it, this may be the most important part of the plan.  Good employees do well.  Willing employees do great.  And you’ll never know what the employees are capable
of until they are willing.  The environment
it takes to succeed long term is an environment where people are a key
component of the equation.  How does this
happen?  I know it seems like I’m
oversimplifying, but ask them.  That’s it.
Ok, you have to take some action on some of the things they have on
their mind.  You also have to be mindful
of the highly effective interpersonal habits – these can be found in countless
places.  They key to being successful in
this area is that you have to be willing to invest in them through building
trust, effectively listening, building a collaborative culture and respectfully
resolving conflict.

It’s as straightforward as can be, but you’d be surprised at the number of
organizations you’ve worked in that leave out key components.  For sure, all of these areas require
investment, but I’ve seen organizations fail that left out just one of
them.  Is there enough SPACE
in your schedule be successful?

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How Does Leadership Happen?

March 19, 2012

Posted by in Blog, Thought Leadership with no comments

Cindy McCauley from the Center for Creative Leadership hits the nail on the head
when we she answers the question “How does leadership happen?”  She has a way of simplifying the concept leadership
and the attributes that are apparent when leadership is present.  Without any of the three important outcomes
she speaks of below, leadership just ain’t gonna happen!

In some of my successful assignments in Latin America (Mexico and Puerto
Rico), I may not have realized it, but I was constantly trying to make things
happen.  I realized that we needed
purpose, consistency and commitment to succeed.
Cindy puts another and, I’ll admit, more concise way.  Read on and you’ll see what I mean.

The list of “what makes a good leader” is a long one. “It’s
as if we’ve taken every positive human quality and made it into a requirement
for effective leaders,” says Cindy McCauley.

“It’s time to step back and take a different approach,” McCauley
asserts in Making
Leadership Happen
, a new CCL white paper.

Instead of focusing only on individual leaders and their capabilities, we
need to examine how the whole system is involved in making leadership happen.
We need to look at dynamics like the exchanges between managers and employees,
the interactions among team members, the quality of relationships throughout
the organization and the enactment of organizational processes.

How would you know if leadership is happening in a team, in a workgroup, on
a task force, or across the organization? Look for three important outcomes:
direction, alignment and commitment (DAC).

Direction is agreement on what the group is trying to achieve
together. Alignment is effective coordination and integration of the
different aspects of the work so that it fits together in service of the shared
direction. Commitment is when people are making the success of the
collective (not just their individual success) a personal priority.

“We think the only way to know if leadership has happened is to look
for the presence of these three outcomes,” McCauley explains.

So how do you, a manager, make leadership happen in your organization? Here
are three important strategies:

Pay attention to whether leadership is happening. Start
looking for evidence of DAC. By paying attention to outcomes, you will not only
begin to discern where more leadership is needed, but will also start to see
the kinds of processes and interactions that are producing the desired levels
of direction, alignment and commitment.

Make more leadership happen. First, when you notice that
there aren’t many leadership processes in place, create them. For example, do
you need to meet more regularly with your peers to prioritize work in a
matrixed organization (to create more alignment)?

Second, when there are useful leadership processes in place, make sure
people have the skills to participate in them effectively. When a new strategic
initiative is being launched, will your staff be able to take part in (not just
show up to) the town meetings the CEO is holding (to create more shared
direction)?

And finally, when existing leadership processes no longer seem to be
producing the needed direction, alignment and commitment, explore new ones.
Does a more diverse group of people need to be involved (to create more
direction)? Are more honest conversations about proposed changes needed (to
create more commitment)? Are clearer accountabilities needed (to create more
alignment)?

Improve your own ability to participate in the making of leadership.
Back to those long lists of leader capabilities. It is useful to continue to
deepen and broaden your individual skills and abilities. With a broader
repertoire of capabilities you’ll be able to participate more effectively in a
wide range of leadership processes. Often the difficult question is “Where
should I focus my development efforts?”

One lens for examining this question is DAC. If there was one place in your
organization where you would desperately like to see more DAC, where would that
be? Then what would you need to get better at so that more leadership happens
in that setting?

Finally, don’t undertake these three strategies alone! Talk to people about
where DAC is happening and where it’s not; enlist others in your experiments
with new leadership processes; seek input on how to improve your own
capabilities. Leadership is shared work – at the end of the day, you can only
make it happen with others.

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Coaching Others: Use Active Listening Skills

February 27, 2012

Posted by in Blog, Thought Leadership with no comments

Coaching others isn’t always easy. Daily pressures and demands often
overtake our work, leaving limited time and energy to focus on coaching direct
reports.  Listening, believe it or not,
is the most important part of the Coach’s job.
Without good listening skills, a leader loses the chance to help others
either get the message or drive willingly to accomplish the task at hand.  Try this.
Go through one day and listen as intently as you can to all that speak
to you – you’ll finish the day exhausted.
So, obviously we have to choose the best times to really “dial in” and actively
listen.

While formal coaching sessions may be few, you can fit in coaching
conversations and coaching moments. The Center for Creative Leadership defines
coaching as “formal or informal conversations between a leader coach (you)
and a learner (someone else) intended to produce positive changes in workplace
behaviors.”

To increase your opportunities for coaching, pay attention to the cues
others are sending. If someone is upset, not ready to talk or needing to vent,
then just hear them out. They need a safe place to air thoughts and emotions
but aren’t ready for a coaching conversation.

Coaches use active listening techniques when people are ready to identify
problems and find solutions. Cues that someone is open to coaching include,
“Can you help me think things through?” “I’d like to bounce some
ideas off of you.” “Could you give me a reality check?” “I
need some help.”

In these moments, seven active listening skills can help turn a typical
conversation into a coaching opportunity.

  1. Be
    attentive.
    Convey a positive attitude to the learner (the
    “coachee”) and a willingness to talk through the situation. If timing
    is a problem, let the other person know you are interested and commit to a time
    for the two of you to have a focused conversation. During the conversation,
    remind yourself that your role is not to interrogate the coachee, jump to
    advice-giving or solve the problem yourself. Listen. Near the end of the
    conversation, you need to be able to accurately summarize the coachee’s main
    ideas, concerns and feelings. Allow “wait time” before responding.
    Don’t cut the coachee off, finish his or her sentences or start formulating
    your answer before he/she has finished. Be conscious of your body language.
  2. Ask
    open-ended questions.
    These encourage the coachee to do the work of
    self-reflection and problem-solving, rather than justifying or defending a
    position, or trying to guess the “right answer.” Examples include: What
    do you think about …? Tell me about …? Please further explain/describe …?
  3. Ask
    probing questions.
    Again, the emphasis is on asking, rather than
    telling. It invites a thoughtful response by the coachee and maintains the
    spirit of collaboration. You might say: “What are some of the specific
    things you’ve tried?” “Have you asked the team what their main
    concerns are?” “Does Emma agree that there are performance
    problems?” “Are there any issues in your own leadership style that
    might be contributing to the situation?” “How certain are you that you
    have the full picture of what’s going on?”
  4. Request
    clarification.
    Double check any issues that are ambiguous or unclear
    to you. Say something like, “Let me see if I’m clear. Are you talking
    about …?” or “Wait a minute. Try that again. I didn’t follow
    you.”
    if you have any doubt or confusion about what the coachee has
    said.
  5. Paraphrase.
    Recap the coachee’s key points periodically. Don’t assume that you understand
    correctly, or that the coachee knows you’ve heard. For example, your coachee
    might tell you, “Emma is so loyal and supportive of her people —
    they’d walk through fire for her. But, no matter how much I push, her team
    keeps missing deadlines.”
    To paraphrase, you could say, “So
    Emma’s people skills are great, but accountability is a problem.”
  6. Be
    attuned to and reflect feelings.
    Identify the feeling message that
    accompanies the content. This is an effective way to get to the core of the
    issue. When you hear, “I don’t know what else to do!” or “I’m
    tired of bailing the team out at the last minute,”
    try to help the
    coachee label his or her feelings: “Sounds like you’re feeling pretty
    frustrated and stuck.”
  7. Summarize.
    Give a brief restatement of core themes raised by the coachee: “Let me
    summarize to check my understanding. Emma was promoted to manager and her team
    loves her. But you don’t believe she holds them accountable, so mistakes are
    accepted and keep happening. You’ve tried everything you can think of and
    there’s no apparent impact. Did I get that right?”

Once the situation has been talked through in this way, both you and the coachee
have a good picture of where things stand. From this point, the conversation
can shift into problem-solving. What hasn’t been tried? What don’t we know?
What new approaches could be taken?

As the coach, continue to query, guide and offer, but don’t dictate a
solution. Your coachee will feel more confident and eager if he or she thinks
through the options and owns the solution.

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Great on the Job!

February 22, 2012

Posted by in Blog, Thought Leadership with no comments

Being “great on the job” has more to do with communication than just about anything
else.  Well, maybe a few engineers would
argue that point.  But I would say that
even an engineer has to state their case.
Technical prowess goes unnoticed unless the engineer can explain the
value of his work.  Great communication
can move things forward, heal the inevitable wounds and build an environment of
trust and confidence.  Take a look at the
below book summary and you’ll get the picture of how Jodi Gluckman sees the
importance communication in the work place.

Jodi Glickman, communications consultant and author of Great on
the Job
, once applied to Cornell’s Park Leadership
Fellowship program, a $72,000 two-year scholarship for Cornell’s Johnson
Graduate School of Management. Glickman was not
offered the scholarship. Undeterred, she phoned the director of the program to
lobby for the award; the next day the program director personally called her to
offer her the fellowship.

Glickman’s life story, which includes time spent as a Peace Corps Volunteer in Chile and as an investment banker for Goldman Sachs,
is filled with many remarkable triumphs of communication (including ranking
first out of more than 300 Goldman Sachs associates in communication). With
straightforward two- or three-step strategies, Glickman tries to share the
fundamental secrets of her extraordinary communication skills.

For example, Glickman offers the following three-step strategy for managing
expectations:

Step one: Ask for timing/expectation. Get the details, ask for time to
think about it, then either confirm the assignment with the manager or move to
step two.

Step two: Be transparent about your workload. If the timing or
parameters aren’t doable, explain what’s on your plate and ask for time to come
up with an alternate timeline. Don’t accept an unrealistic deadline.

Step three: After serious consideration, present a detailed timeline and
action plan for completing the project.

Many of Glickman’s strategies include “example language” —
hypothetical conversations illustrating the strategy at work. For example, the
following dialogue illustrates the three strategies (shown in brackets) for
asking for time off at a particularly inopportune time:

Susan, I’d like to talk to
you about taking the weekend of
July 4th off. My closest friend is getting
married in
Maine. [Highlight the Issue]

I wanted to let you know
early so that we can plan accordingly. I will take care of everything I need to
in advance, and I’ll make sure that the team knows exactly where all of my
pages stand.
[Cover Your Bases]

Do you think that will be
a problem or can we make it work? Is there anything else you’d like me to take
care of in advance?
[Get Buy-in]

The G-I-F-T

Four themes run throughout the book that, according to Glickman, are key to
effective communication. These four themes are summarized in the acronym GIFT:

Generosity. Sharing information, sharing credit, and keeping others’
agendas and schedules in mind will go a long way toward smooth communication
and cooperation.

Initiative. Asking, “How can I help?” is not actually all that
helpful, Glickman argues. Give people choices so that they don’t have to dream
up answers on their own.

Forward Momentum. This is Glickman’s phrase for nurturing and
maintaining relationships that may prove to be vital in the future.

Transparency. More than just a question of honesty, transparency means
volunteering difficult information, whether it’s alerting people to problems
and mess-ups or acknowledging when you don’t know something, writes Glickman.

Be Strategically
Proactive

Transparency is key in many of the strategies in Great
on the Job
. It’s also vital to be strategically proactive,
Glickman writes. Excelling at the work you are given is not enough to advance.
Success depends on proactively learning new skills, assisting others and
knowing how to diplomatically redirect unwanted tasks (by accepting the task,
but emphasizing that you are interested in more challenging or valuable
assignments).

In the second part of the book, readers learn how to “move up the learning
curve” by managing expectations, and knowing how to ask for help and
feedback. “Stay out of Trouble” is the third part of the book, and
includes advice on how to raise a red flag and manage a crisis.

The final chapter is on selling yourself. And there is perhaps no better person
to give advice on selling yourself than an author who only needed a casual
conversation to vault over 10 competing classmates and land a prized
internship.

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INNOVATION SECRETS FOR EVERY EXECUTIVE

February 6, 2012

Posted by in Blog, Thought Leadership with no comments

This book outline reminds me of the premise behind continual improvement.  Continual improvement is the backdrop for
quality improvement and waste elimination techniques.  We’ve heard them all – from Quality Circles
and Just in Time in the 80s to Total Quality Management and Total Productive
Maintenance in the 90s to Six Sigma and Lean Manufacturing in the last decade.  The following book outlines the concept that
small discoveries may generate breakthroughs. To me, this describes continual
improvement.  Take steps to marginally
improve things and those will lead to breakthroughs not previously thought of.

According to Peter Sims, author of Little
Bets: How Breakthrough Ideas Emerge from Small Discoveries
,
there are two types of innovators: conceptual innovators who pursue bold new
ideas and often achieve their success early in life, and experimental
innovators who use slow, iterative, trial-and-error approaches that gradually
lead to breakthroughs. In Little Bets,
Sims illustrates the experimental process of innovation, accomplished through a
series of small bets.

The Growth Mindset

Success as an experimental innovator, Sims writes, depends on a
“growth” mindset, which sees failures and setbacks as learning
opportunities. People with a “fixed” mindset, in which skills,
abilities and intelligence are considered innate and present from the
beginning, are unable to accept and benefit from failures, since failure
challenges their self-worth. Growth mindset people, however, are not afraid to
fail, and are therefore constantly challenging themselves to innovate and
improve. Howard Schultz had a simple idea: bring the concept of the Italian
coffee house to the United States. However, his original shops — with their bow
tie wearing baristas (who hated the bow ties), menus written mostly in Italian
and non-stop opera music — were hardly well received. Learning from the chorus
of complaints from customers, Schultz slowly tweaked and changed his concept to
eventually create the ubiquitous Starbucks coffeeshop now present on nearly
every street corner.

The Affordable Loss
Principle

Innovators using the small bets approach, writes Sims, tend to operate under
the “affordable loss principle” — in other words, focusing on what
they can afford to lose rather than calculating expected gains. When first
purchased by Steve Jobs, for example, Pixar was at once a hardware business,
software business and a digitally animated TV advertising company. The future
of the company, it seemed to Jobs and others, was in the Pixar Image Computer
that helped people visualize complex images. Jobs dedicated only a small
fraction of his investment toward the digital animation section of the company,
but didn’t expect to ever see a return on that money. As Sims explains, had
Jobs based his decisions not on what he could afford to lose, but rather, as someone with
a different mindset might have done, on what he expected to gain from digital
animation, he might have shut down the group early on.

Sufiya and the
Professor

The story of Muhammad Yunus and the birth of micro-lending illustrates another
principle of experimental innovation: the importance of immersion. “One of
the best ways to identify creative insights and develop ideas is to throw out
the theory and experience things first-hand,” Sims writes. Yunus was an
economics professor in Bangladesh theorizing, he
told the author, “about sums in the millions of dollars.” Then he
started wandering through nearby villages and discovered craftspeople such as
Sufiya, all but enslaved to local middlemen because she could not afford 22
cents for bamboo. Outraged, Yunus lent her and others the miniscule sums they
needed, and the world-famous Grameen Bank was born.

Using examples from a variety of disciplines, from architecture to stand-up
comedy, Sims has provided a learned and entertaining how-to guide to
innovation.

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Better Under Pressure!

January 30, 2012

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I was told by a manager at Nortel
Networks in the 1980s that when times were tough, true character in leaders was
revealed.  I couldn’t have agreed more…
especially in a politically charged climate for a company approaching $30
Billion in sales.  That insight stayed
with me for assignments to follow and it paid off when I focused on being calm
during the storms.  The stress of the
situation was always tough enough without adding my own “manufactured” stress
in the moment.  The following book summary rings true for me and articulates advice for leaders who find themselves under constant pressure.

According to Justin Menkes, consultant for the executive search firm Spencer Stuart and
author of the best-seller Executive Intelligence, the best leaders are
those who have the ability to realize their potential and the potential of
those they lead — in other words, to perform to the best of their ability and
to get the best out of their people. In his new book, Better Under Pressure,
Menkes presents three specific “catalysts” for realizing potential:realistic
optimism
, subservience to purpose and finding order in chaos.

How to Be Optimistic Without Losing Your Head

Realistic optimism is self-confidence without self-delusion or irrationality,
writes Menkes. People who have this trait are not afraid to attack audacious
goals, but are also fully realistic about the challenges and difficulties that
lay before them. To be realistically optimistic, Menkes explains, leaders must
have both “an awareness of actual circumstance” — the ability to see
the world as it is, both positive and negative — and a “sense of
agency” — the deep belief in one’s capabilities to change circumstances or
situations.

Menkes illustrates the ability to see the world as it is through the story of
“Randy,” an insurance company executive interviewed for the top
position at one of America’s leading insurers (Menkes disguised his name for the
sake of privacy). The interview took place soon after the collapse of AIG,
which was in large part due to the company’s involvement with high-risk credit
default swaps. Randy was intrigued by the credit default swaps, but remained
cautious. It seemed to him that there were serious risk issues that his
competitors did not seem to notice. As a result, according to Menkes, Randy set
up “a separate subsidiary unconnected to the rest of the corporation that
did a small trade in these products.” In retrospect, the move might seem
like genius, but for Randy it was simply of matter of “weighing risk and
reward,” Menkes writes. Randy was realistic about both the upside and
downside of credit default swaps. And he also had the humility to admit that he
wasn’t sure where this new market might go. His approach to credit default
swaps reflected realistic optimism — he was willing to give the new product a
try, but didn’t buy into the unsupported enthusiasm in which other companies
indulged, to their eventual regret.

Fighting Back

Subservience to purpose, the second of the three catalysts, means a total
dedication to a goal. “Leaders who demonstrate subservience to purpose put
a particular pursuit — such as their company’s mission — ahead of their own
comfort,” Menkes explains. “Quite simply, great leaders equate
progress toward this goal with emotional satisfaction. They are, ultimately,
servants to their company’s most noble purpose.”

The third catalyst for leaders is to find order in chaos, Menkes writes. This
is the unique ability to cut through multiple or multi-dimensional problems to
find the solutions and resolutions that others cannot see. Maintaining clear
thinking and having the drive to solve puzzles are the two key attributes in
leaders who are able to find order in chaos.

Menkes conducted in-depth interviews with 60 of the best CEOs in America and
draws on research of 200 other CEOs and leaders. The result is a clear
explanation of three core personality attributes that separate the leaders who
can face up to any challenge from the leaders who crumble or are weakened by
adversity. Better Under Pressure
is a valuable book for both experienced and emerging leaders.

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A Revolution in Customer Service

January 23, 2012

Posted by in Blog, Thought Leadership with no comments

Now here’s
a story of how to “wow” the customer.
Rarely as providers do we put ourselves in the shoes of our customers to
find ways to meet needs they’re not even aware of.

In The Amazement
Revolution
, an engaging new book on customer service,
author Shep Hyken tells the story of a Web hosting company named Contegix that
proactively uncovered and prevented an impending disaster for a client while
the client itself was unaware of what was happening. One weekend, the Contegix
director of key accounts was monitoring social media mentions of all his
clients’ companies when he noticed a disturbing trend involving one of those
clients, an online ticket agency. A promotion had led to a tidal wave of demand
for free tickets that threatened to crash the client’s Web site. When efforts
to reach the client for a server upgrade authorization were unsuccessful, the
director of key accounts preemptively called in his engineers, who rushed to
install the additional servers that kept the client’s site functioning. On Monday, Contegix informed the client what had
happened during the weekend, and said that the client could pay for the new
servers or refuse them. Contegix also said the rush installation and
engineering over the weekend would be offered at no cost.

The Contegix story is one of the many case studies that exemplify what Hyken
calls “amazing” customer service — customer service that is
consistently and predictably above average. While a number of the ideas in The Amazement Revolution
may be familiar to readers of customer service books, Hyken (whose previous
book was the best-selling The
Cult of the Customer
) offers a framework that translates the key
issues of customer service into seven actionable strategies, supported by more
than 100 specific takeaways (with typical flair, Hyken calls them ARTs or
Amazing Revolution Takeaways).

The Power of
Partnership and FUN

The Contegix case study is a powerful illustration of Hyken’s third strategy:
to cultivate a partnership
with customers that goes beyond the traditional ongoing service relationship.
The monitoring of the client’s social media mentions alone was beyond the duty
of a standard Web hosting arrangement. Most Web-hosting companies would not
even have learned of the problem until after the client itself noticed the
issue — which would have been that Monday morning
after the site had crashed over the weekend.

Another of Hyken’s seven strategies is for companies to “have serious
FUN.” The acronym stands for employees who are motivated in their
interactions with customers by a personal sense of Fulfillment and of being appreciated for
their Unique
needs and skill, and the anticipation of the Next
challenge.

As Hyken explains, if you engage your employees, they will engage your
customers. Hyken’s other strategies include:

Provide Membership: Treat the people served by a company as members with
an elite status rather than customers.

Hire Right: Hire the people whose personalities will best support the
customer service experience. The key is to hire for attitude first, then worry
about developing the right skills.

Create a Memorable After-Experience: Create a memorable, positive and
even unexpected experience for customers after they have done business with
you.

Build Community: Create a community of evangelists by listening to,
supporting and respecting your most loyal customers.

Walk the Walk: Make sure every employee at every level of the
organization consistently and without exception supports your commitment to
customer service.

Enthusiastic
Practicality

The cover of The Amazement Revolution
features a stylized rendering of fireworks, effectively underscoring the
celebration of great customer service in these pages. Some readers may see the
cover illustration as cheerleader pom poms, which would be equally appropriate
given the palpable energy and enthusiasm in this book.

The power of the book, however, goes beyond Hyken’s engaging vocabulary and
style. The detailed organization and structure of the book offers readers easy
access to scores of practical strategies, tactics and ideas, supported by 50
real-world examples.

Managers and employees don’t need sizzle, they need steak, and Hyken delivers.

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Leading in the Public Eye

January 9, 2012

Posted by in Blog, Thought Leadership with no comments

From news media to social media, every
organization, every leader, every decision is open to public scrutiny as never before.

Imagine if every time you named
employees to a team or task force or made a job assignment, you were blasted by
opinions and counter-opinions. Imagine if every decision had to be explained
(sometimes defended) to multiple constituencies. Also imagine if the measures
of success for you and your organization were moving targets.  This is the reality for leaders of today.

How do successful leaders navigate
leading in the public context?

Look out for collateral damage. Don’t underestimate the consequences of your actions and
decisions. You must be thoughtful on a moment-by-moment basis. Ask yourself: Am
I really clear about this situation or decision? Do I need more data, more
input, more time? What if I get this wrong? Do I need to change my
decision-making processes?

While taking more time slows you
down on the front end, it may save you hours or weeks of time and resources in
dealing with the fallout of a preventable problem.  Of course, there is always an element of risk
and uncertainty. If you get a decision right for person A, you automatically
get it wrong for person B, and person C is unhappy either way. You need to
learn to live in this reality.

Learn to span boundaries. Leaders must interact with many people and meet the
wide-ranging needs of numerous constituencies. Even in the context of a single company,
a leader is responsible to a huge number of communities that span geographic,
cultural, language, socioeconomic and educational boundaries — as well as ages,
interests and values.  Be empathetic when
interacting with anyone about anything.
It seems to be broad, but is critical in this day and age of social media.

Consider your legacy.  Leaders are often in
a specific position for just a few years. While they personally move on, the
best leaders leave their employees more energized, more capable and
well-prepared to come back and lead tomorrow, next month, next year. A leader’s
job is to buffer the employees from anything that pulls their focus off of
results, and to invest in them for the future.
As a business leader, what are you doing to ensure your people are
focused on what matters most — for now and for the long-term health of your
organization?

Consider how successful leaders
navigate the challenges that the “public eye” present.  Doing so will ensure you’re spending time on
the things that count the most.

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Profit Goals Can be Unprofitable?

December 23, 2011

Posted by in Blog, Thought Leadership with no comments

Most companies are in it for the money.  And
why shouldn’t they be?  After all,
without profits, how would the company survive?
Well, I believe that profits come as a result of providing a needed
product or service.  Providing it with
high quality, on time and at a competitive cost improves the chances of making
a profit.  Now I know that sounds simplistic,
but profits come as a result of meeting a need or doing something.  We don’t just create corporations or LLCs and
expect to be profitable.  Read on for a
great example to help prove my point.

In the decades after World War II, Boeing had one overriding purpose: to make the
best, most advanced planes. In the words of Bill Allen, Boeing CEO from 1946 to
1968, the purpose of Boeing was to “eat, breathe and sleep the world of
aeronautics.” By the early 1990s, Boeing was the world’s dominant civil
aviation company. Under new CEO Phil Condit, however, the goal of the company
changed dramatically. Success was now defined in terms of profits, not
aviation. “We are going into a value based environment where unit cost,
return on investment, shareholder return are the measures by which you’ll be
judged,” Condit explained. “That’s a big shift.”

In the years that followed, Boeing lost its lead in civil aviation to rival
Airbus, the stock market turned sour on the company and, in 2003, Condit was
forced out. Boeing returned to aeronautics and aviation goals, and, with the
success of the new 777 and with the groundbreaking Dreamliner on the horizon,
the company was soon putting itself once again in position to dominate the
world aviation industry.

In short, when Boeing focused on aviation, it was a profitable and successful
company. When it focused solely on financial measures, its bottom line
suffered.

Why are companies who have the No. 1 goal of making profits often unprofitable?
And why, paradoxically, are companies who have different, more qualitative
goals often quite profitable? The answer, writes London
School of Economics professor John Kay in his new book, Obliquity,
is simply stated: broadly defined or complex goals are best achieved indirectly
— a phenomenon that Kay terms “obliquity.”

For example, in the same way that the most profitable companies are not those
whose goal is to pursue profit, the wealthiest individuals are mostly those who
are less interested in pursuing wealth. Their wealth is a byproduct of a
different mission. Henry Ford was passionate about cars and bringing cars to a
mass market. Sam Walton wanted to build the world’s best retail company. Bill
Gates was fascinated by the potential of computing to change people’s lives.
Their No. 1 mission was not to become rich — although they all amassed
fortunes.

Adapting and Learning

Obliquity is not an argument that goals are useless — that you never reach what
you strive for. Instead, Kay explains, obliquity is the recognition that we
cannot plan and control every step of a path toward a complex goal.

Broad, complex objectives are achieved through a process of risk-taking,
experimentation and discovery, a continuous circle of learning and adaptation.

The direct approach doesn’t work, Kay writes, for a variety of reasons. One
reason is what he terms “pluralism.” There is often more than one
answer to a problem. Also, most real-life, high-level objectives problems are
broadly defined and can’t be broken down in advance into specific goals or
actions. There are many paths to building a successful business or even
becoming financially secure. A third issue with the pre-planned, direct
approach is the unpredictability of interactions with others. Will others react
as we plan for them to react? Probably not.

In the final section of the book, Kay lays out some of the ways we can use the
concept of obliquity to make better decisions and to solve problems more
effectively. For example, make a determined commitment to overall high-level
objectives, but do not stubbornly cling to specific intermediate or basic goals
or actions. Franklin D. Roosevelt achieved two
major objectives: preparing for and leading his country to victory in World War
II, and securing the survival of American capitalism through the New Deal. He
achieved those high-level objectives, Kay writes, “through pragmatic
improvisions in the face of circumstances that neither he nor his outstanding
advisers could predict or control.”

Another application of the concept of obliquity is to admit that we cannot know
everything about a situation. Both Warren
Buffett and George Soros are legendary investors, but both acknowledge that
they cannot plan for investment success. “In many industries,” writes
Buffett, “I cannot be sure if we are dealing with a ‘pet rock’ or a
‘Barbie.’”

Intellectually stimulating and filled with vivid, pertinent examples, Obliquity is a
thoughtful analysis of how the world truly operates.  It brings home reality.

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Is Creativity a Learned Behavior?

December 13, 2011

Posted by in Blog, Thought Leadership with no comments

I think creativity
can be learned.  One thing we can do is
to think about creativity on an everyday basis. In other words, it’s just like
cramming for a test. If you’re up against a deadline and you haven’t cracked
the book, it’s hard to do well on the test. If studying is part of your regular
life, then it makes it much easier. What I encourage people to do is to be on
the lookout for creativity along the way. There are some exercises we talk
about in the book to inject creativity as part of an everyday pattern. So then
when you’re on a deadline, you’re not under some crazy burden to produce
something out of nothing, you’ve been creating all along.

I’ve always encouraged my teams to take the Five Percent Challenge. If you work
a 40-hour workweek, five percent of 40 hours is two hours per week. Taking a
Five Percent Challenge is taking two hours per week and instead of working on
your to-do list and transactional type work, you’re going to close the laptop, get
out of the office and just reflect. You’re going to use that as thinking time.
It’s time for imagination and exploration. The other 38 hours, you can do your
to-do list.

What I’ve found is that when organizations try this, every single time there is
a zero percent drop in productivity. In other words, magically people are able
to get their 40 hours of work done in 38 hours. Then, more importantly, that
two hours becomes a gift. It becomes a gift to the organization because now
it’s filled with new, fresh thinking, and it’s a gift to the individual.
Creativity is truly one of the most important sources of human
fulfillment.  I believe we all have this
capability to an extent.  We just have to
commit to use it.

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