There's a great article in Forbes that features new data on leadership succession. The article unveils research conducted by the Kellogg School of Management that states that when leaders leave their jobs organizations rush to replace them with people inside the company who are familiar with the original issue and former leader. Makes sense especially when you are in bad economic times and your desperately trying to hold onto the ship that’s caught in a horrible torrential monsoon.
As the research demonstrates, it leads to a huge problem which they call “escalation of commitment.” Essentially when you put someone in a job they shouldn’t be in. It’s when an organization decides to stick with a course of action they invested in and they continue to put more time, energy and money this way – even when it’s failing. You can put a fancy label on this, I call it a bad and potentially destructive business decision. Ram Charan, a leadership expert I deeply admire would say that this shows how an organization doesn’t invest in putting “know how’s” in the right job.
Why does this happen? Because surely the person replacing the leader has a tie to the person (e.g. share the same ideals, friends, close respected associates, etc). This not so seemingly clouded judgment at the time is the exact reason why someone on the inside may really be the wrong person to fill a “failed leader’s shoes.”
I’ve seen this paradox with clients I coach. Someone from the inside may be appointed who is not qualified for the job, may be the person’s best friend or is way too close to an initiative that’s going awry. Because of this personal connection, the new person is loathe to change course and even if they do, it’s often too late. Ford Motor Company appointed Alan Mulally from Boeing and Ed Whitacre from AT&T was appointed to chair General Motor’s new board. Perhaps organizations need to take a page out of this research and listen up.
“Organizations hoping to escape past failures need to balance their preference for the familiarity and knowledge that an insider affords against the entrapment an insider may suffer. Although outsiders undoubtedly take longer to understand a problem, our research suggests that once they do, their psychological independence can limit their tendency to throw good money after bad.”
Amen!
Wednesday, October 28, 2009
Wednesday, October 21, 2009
Biggest Leadership Missteps In Times of Change
Biggest Leadership Missteps In Times of Change
According to the Wall Street Journal, Cisco Systems Inc. recently posted a 46% drop in quarterly profit. While that news would make most managers faint, Chief Executive John Chambers took action and promised to get Cisco back to double-digit growth. His strategy involved moving the company into more businesses. The report states, “To manage all of these initiatives, he has decided to replace Cisco’s top-down decision making with committees of executives from across the company. Some teams provide strategic advice and evaluate the progress of these projects. In total, Cisco now has 59 internal standing committees.”
As Cisco expands the number of new businesses, it will increase the number of people who participate in the committees from 750 senior employees to about 3,000.
This innovative and radical shift in Cisco’s leadership model may prove to be the most brilliant plan ever devised or the most insane. Either way Chambers created the platform necessary for responsibility and change.
In 2008, the Conference Board CEO Challenge Survey asked hundreds of senior executives from around the world to identify their most significant management concerns. The top three challenges identified were: “excellence in execution, consistent execution of strategy by top management and speed flexibility and adaptability to change.”
No matter what you say about Cisco’s system, you can’t deny the fact that many companies are exploring alternative strategies that will enable them to operate more efficiently. Strong leaders know you must change your game in order to get ahead. When times are as tough as they are today, getting things done becomes a top priority. Here are some clear missteps to avoid…
• Waiting to change – If you are considering new paradigms to getting things done, you should implement those disruptive changes now. Organizations thrive through a ruthless process of pursuing and demanding change. The more uncomfortable the process the better. No great strides have ever been made by remaining idle. Create an environment where people of all ranks are given permission to engage in hearty and transparent dialogue; examine organizational and individual beliefs; inflame innovation; conceive a new future; negotiate and revise cultural norms; rekindle motivation; and ignite responsibility for team action. What you get: an organization focused on culture and people.
• Preventing employee involvement – When times are tough, it’s essential to pioneer unconditional responsibility. Claim your role in every action with humility and ensure others do the same. Align your words with your actions and make it clear what accountability measures you will take if your words and actions run out of alignment. The strength and character of your leadership and your definition of teamwork is tested by the degree of responsibility you take. You are solely responsible at the end of the day for everything you do. Innovation comes out of responsibility. What you get: leaders.
• No talking or talking without significance - Talk is cheap, meaningful words are priceless. Create venues for unconditional honesty; demand dialogue; use language that demonstrates transparency; ask provocative questions that probe and evoke curiosity; and share information with velocity. Settle for nothing less. What you get: merciless merging of strategic plan with market/economy, also competitive analysis, proficient people and dramatic results.
• Flaky actions, plans and priorities - Connect all meaningful actions with strategic plans and larger organizational priorities. Make everything clear. Ensure that there’s a common approach and common language. The strength and clarity of the link will determine who, how and when it all gets done. Re-examine with vigor. What you get: harmonized people, priorities and results.
• Keeping people in their seats – It does no one any good to let poor performers languish. Create “score cards” for each employee. Provide hands on mentoring, coaching and training within a timeframe. If your employees don’t improve quickly, either move them out of the company or out of the department. What you get: performers in each role and a rigorous examination of progress.
In such dynamic times, it’s easy to go with the flow, but in reality, careful examination and investment is critical to your progress. Although Cisco’s system does not necessarily require that everyone takes responsibility, requesting that employees show up and allow their voices to be heard powerfully places ownership on the people and enables them to shape their future. With open communication and a fierce directive for change, Cisco’s system may prove to be a keen example of extreme innovation in management strategy. Time for us all to stay tuned...
According to the Wall Street Journal, Cisco Systems Inc. recently posted a 46% drop in quarterly profit. While that news would make most managers faint, Chief Executive John Chambers took action and promised to get Cisco back to double-digit growth. His strategy involved moving the company into more businesses. The report states, “To manage all of these initiatives, he has decided to replace Cisco’s top-down decision making with committees of executives from across the company. Some teams provide strategic advice and evaluate the progress of these projects. In total, Cisco now has 59 internal standing committees.”
As Cisco expands the number of new businesses, it will increase the number of people who participate in the committees from 750 senior employees to about 3,000.
This innovative and radical shift in Cisco’s leadership model may prove to be the most brilliant plan ever devised or the most insane. Either way Chambers created the platform necessary for responsibility and change.
In 2008, the Conference Board CEO Challenge Survey asked hundreds of senior executives from around the world to identify their most significant management concerns. The top three challenges identified were: “excellence in execution, consistent execution of strategy by top management and speed flexibility and adaptability to change.”
No matter what you say about Cisco’s system, you can’t deny the fact that many companies are exploring alternative strategies that will enable them to operate more efficiently. Strong leaders know you must change your game in order to get ahead. When times are as tough as they are today, getting things done becomes a top priority. Here are some clear missteps to avoid…
• Waiting to change – If you are considering new paradigms to getting things done, you should implement those disruptive changes now. Organizations thrive through a ruthless process of pursuing and demanding change. The more uncomfortable the process the better. No great strides have ever been made by remaining idle. Create an environment where people of all ranks are given permission to engage in hearty and transparent dialogue; examine organizational and individual beliefs; inflame innovation; conceive a new future; negotiate and revise cultural norms; rekindle motivation; and ignite responsibility for team action. What you get: an organization focused on culture and people.
• Preventing employee involvement – When times are tough, it’s essential to pioneer unconditional responsibility. Claim your role in every action with humility and ensure others do the same. Align your words with your actions and make it clear what accountability measures you will take if your words and actions run out of alignment. The strength and character of your leadership and your definition of teamwork is tested by the degree of responsibility you take. You are solely responsible at the end of the day for everything you do. Innovation comes out of responsibility. What you get: leaders.
• No talking or talking without significance - Talk is cheap, meaningful words are priceless. Create venues for unconditional honesty; demand dialogue; use language that demonstrates transparency; ask provocative questions that probe and evoke curiosity; and share information with velocity. Settle for nothing less. What you get: merciless merging of strategic plan with market/economy, also competitive analysis, proficient people and dramatic results.
• Flaky actions, plans and priorities - Connect all meaningful actions with strategic plans and larger organizational priorities. Make everything clear. Ensure that there’s a common approach and common language. The strength and clarity of the link will determine who, how and when it all gets done. Re-examine with vigor. What you get: harmonized people, priorities and results.
• Keeping people in their seats – It does no one any good to let poor performers languish. Create “score cards” for each employee. Provide hands on mentoring, coaching and training within a timeframe. If your employees don’t improve quickly, either move them out of the company or out of the department. What you get: performers in each role and a rigorous examination of progress.
In such dynamic times, it’s easy to go with the flow, but in reality, careful examination and investment is critical to your progress. Although Cisco’s system does not necessarily require that everyone takes responsibility, requesting that employees show up and allow their voices to be heard powerfully places ownership on the people and enables them to shape their future. With open communication and a fierce directive for change, Cisco’s system may prove to be a keen example of extreme innovation in management strategy. Time for us all to stay tuned...
Thursday, October 1, 2009
Steps to Being An Influential Leader
As a leader, influencing is critical and developing those skills so you can more effectively get things done is key. So how do you do it?
Here’s a simple formula, however the execution of it will take time, diligence, dedication and support. I call it the Influential Communicator Formula or the I.C. Formula…
1. Know thyself
2. Know your value
3. Know your audience
Let’s go through each one…
Know thyself:
I haven’t been so great at knowing myself over the years – what are my strengths, areas of challenge, behaviors and values. It took some mining of my own skills and asking others to reveal to me what I couldn’t see.
Firstly was to identify what are my behaviors and values. You may work at an organization that already administers these assessments. Either way, people fall into one of four buckets when it comes to behaviors:
Respond to issues and confrontations (extroverted) ⇒ Assertive
Persuade others to opinions/ideas (extroverted) ⇒ Persuasive
Respond to the pace of your surroundings (introverted) ⇒ Stable
React to systems, policies and procedures (introverted) ⇒ Analytical
Additionally, we all have two core values that drive everything we do; two that show up every once in a while; and two that don’t really affect you. Here are the six:
• Knowledge: passion for analysis and systems and thirst for knowledge
• ROI: passion for ROI in all areas – time, money, relationships
• Balance: passion to have balance and harmony
• Service: passion to help others, leave a legacy, team player
• Power: passion to achieve leadership, power, control and position
• Codebook: passion for living through a personally defined system of living
As a way to know yourself:
1. List your core strengths
2. Areas of potential challenge
3. Hone in on your one core behavior and two core values.
As you begin to learn what you are really good at, start doing more of it. When you identify areas of challenge, delegate it because this will be someone else’s strength and why spend time doing what you aren’t good at? As you learn your core behaviors and values, see if you can also figure out those around you. Begin communicating from their behaviors and values and watch the impact of your communication grow.
Next blog we’ll focus on knowing your value and knowing your audience.
Until then!
Here’s a simple formula, however the execution of it will take time, diligence, dedication and support. I call it the Influential Communicator Formula or the I.C. Formula…
1. Know thyself
2. Know your value
3. Know your audience
Let’s go through each one…
Know thyself:
I haven’t been so great at knowing myself over the years – what are my strengths, areas of challenge, behaviors and values. It took some mining of my own skills and asking others to reveal to me what I couldn’t see.
Firstly was to identify what are my behaviors and values. You may work at an organization that already administers these assessments. Either way, people fall into one of four buckets when it comes to behaviors:
Respond to issues and confrontations (extroverted) ⇒ Assertive
Persuade others to opinions/ideas (extroverted) ⇒ Persuasive
Respond to the pace of your surroundings (introverted) ⇒ Stable
React to systems, policies and procedures (introverted) ⇒ Analytical
Additionally, we all have two core values that drive everything we do; two that show up every once in a while; and two that don’t really affect you. Here are the six:
• Knowledge: passion for analysis and systems and thirst for knowledge
• ROI: passion for ROI in all areas – time, money, relationships
• Balance: passion to have balance and harmony
• Service: passion to help others, leave a legacy, team player
• Power: passion to achieve leadership, power, control and position
• Codebook: passion for living through a personally defined system of living
As a way to know yourself:
1. List your core strengths
2. Areas of potential challenge
3. Hone in on your one core behavior and two core values.
As you begin to learn what you are really good at, start doing more of it. When you identify areas of challenge, delegate it because this will be someone else’s strength and why spend time doing what you aren’t good at? As you learn your core behaviors and values, see if you can also figure out those around you. Begin communicating from their behaviors and values and watch the impact of your communication grow.
Next blog we’ll focus on knowing your value and knowing your audience.
Until then!
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