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...