Archive for the ‘leadership’ Category

Leaders’ actions speak far louder than their words

Monday, May 3rd, 2010

I read this story recently and found it very affecting. It is by Paul Anderson, former CEO of BHP Billiton:

After I spent about a year at BHP Billiton, …profitability was up, and our efficiency was up; we were getting great productivity. You could look at almost any measure, and it was positive. Except safety. Safety had actually gone down a little bit.

I was very vexed by this, and I kept asking the head of the safety group, “What is it? Why isn’t the organization embracing a safety culture, and why can’t we seem to improve our safety performance?”

After beating around the bush for a while, he finally blurted it out. He said, “Well, you’re the problem.”

I said, “I’m the problem? I’m a real proponent of safety; we’ve got it right in our charter; I can’t imagine a higher objective for the company; I can’t imagine anything going before it.”

He said, “Well, you’re a lousy role model – just look at what you’re doing.”

I replied, “Lousy role model – what do you mean?”

He said, “You know, people notice that when you come to work you jaywalk across the street; you don’t go to the corner. People notice that when you’re out visiting a plant, if you’re wearing dark safety glasses and you come inside, you take off the dark glasses even if you don’t have a pair of clear safety glasses to replace them with and you’re still in an area where you need them. They notice that when you go up and down steps you don’t hold onto the handrail, which is the standard practice we have here. They notice that you don’t park your car backward in a parking space which, again, is the safety standard that we have. You’re just basically a lousy role model.”

Of course, that took me a little aback. But he went on and said, “when you go to visit a manager, the first thing you ask is, ‘How are you doing against budget?’ You start asking financial questions; you don’t start with, ‘How is your safety program? What results have you had over the last year? What are your two or three safety issues that you have here?’ So, people assume you’re not particularly interested in safety. And in fact, they’re focusing on everything but safety because you haven’t really highlighted it.”

That really struck me. I had never been in a situation where I was so clearly scrutinized as a role model and where safety was so important, because this was primarily a mining operation and steel mills, and very much an industrial setting. I realized that not only was I being scrutinized on the job, but also I was being scrutinized off it, too. One of the things that the head of the safety group said was, “People know you don’t like to wear a helmet when you ride a motorcycle.” And I thought, “Well, what’s that got to do with anything?” But if you don’t display these values in your personal life, then you obviously don’t really embrace the values. It really drove home the point. Somebody once said, “Good leadership is doing the right thing, even when no one’s looking.” I realized that, actually, somebody is looking….

The key point I got out of that experience was that you are a role model 100 percent of the time. When you’re the CEO of a company, you can’t separate your personal life from your professional life. People learn what you do in your personal life; they follow what’s going on; they watch you in situations where you might even thing you’re not being watched. And if you don’t walk the talk, they pick that up in a heartbeat. They sense very quickly whether your words and your actions are tied together, and if you don’t match your words with your actions, the organization basically discards your words.

Reprinted by permission of Harvard Business Press. Excerpted from Lessons Learned: Straight Talk from the World’s Top Business Leaders–Communicating Clearly. Copyright (c) 2009 Fifty Lessons Limited; All Rights Reserved.

How to escape “The Acceleration Trap”

Tuesday, April 13th, 2010

Yesterday I posted on Heike Bruch’s and Jochen Menges’ article, “The Acceleration Trap,” in the April Harvard Business Review, which examines the effects on companies of a culture of constant change.

I left off before discussing what companies can do to get out of the trap. Before taking that up, I’d like to reflect for a moment on what creates the culture of constant change. As Bruch and Menges discuss, it often follows the success of an initial change program:

Most of the companies in our study landed in the trap after an exhilarating ride. A good example is the European conglomerate ABB. Founded in 1987 in a merger between the Swedish Asea Group and the Swiss Brown Boveri Group, ABB grew rapidly, buying 55 companies in its first two years. After eight years of strong growth, the company began to show signs of excessive acceleration. Acquisitions were no longer well integrated; different parts of the company were competing for the same customers.

I can sense the pressure that ABB’s CEO must have felt after the initial growth. Shareholders, board members, the press, must all have been asking, “Great start! What’s next?” And so the feeling is, not only must we sustain what we’ve started, we must do more. Keep going! Bonuses are at stake, as well as perhaps an even more intense motivation, the needs of the ego.

I’ve sometimes been hard on senior management, but I have to say I can sympathize with the CEO caught in the acceleration trap. And while Bruch and Menges offer prescriptions to help extricate companies from the trap, they don’t provide any easy answers to that harried CEO. Instead, they challenge her to short-circuit employees’ instincts to respond to constant change with frenetic activity and project proliferation:

  1. Stop the action. Ask employees what to stop doing.
  2. Be clear about strategy – especially in terms of what not to do.
  3. Decide how to make decisions – create and adhere to a process to select which projects to do, and which not to do.
  4. Declare the turmoil over – make a pronouncement to employees that the crisis has passed.

Tough medicine? Yes. Try explaining to your board that you have declared a moratorium on new projects for six months so your employees can recharge their batteries. But the alternative may be a culture that has a large list of brilliant initiatives but little in the way of results.

Related posts:
What’s the cost of “change is the only constant”?
Why “Undercover Boss”’s drama is a bad sign for business
Are CEOs powerless to lead?

“The Right Fight” shows that workplace conflict is essential for success

Wednesday, April 7th, 2010

right fightWhen I got out of engineering school, it was natural to take the competitive, intellectually show-offy mindset we all had in college into the workplace. I was developing software, and so there were constant battles to discuss how to design a certain piece of code or construct a test scenario. I remember these times fondly. The arguments were loud but respectful, and it seemed most of the time the right answer came out of them.

Then I got into management, and gradually it seemed that the competitive mindset that had worked so well for me as a technician wasn’t as useful. Arguments got bound up in power dynamics, and I ran into countless examples of unproductive rivalry among groups in the same company. “If only we fought the competition with the intensity we use to fight amongst ourselves…”

So I began to value collegiality, consensus, and getting along. It seemed if you were a senior leader you had a duty to be a team player. Of course conflicts played out, but they were behind the scenes, not discussed in the meeting but in the “meeting after the meeting.” Looking back on it, though the pay was good, it wasn’t nearly as much fun as arguing with John Cooper in front of a white board over a payment-assessment algorithm.

So when I read “The Right Fight: How Great Leaders Use Healthy Conflict to Drive Performance, Innovation, and Value,” by Saj-nicole Joli and Damon Beyer, it made me wish it had come out ten years earlier. Far from seeing conflict as vice and consensus as virtue, Joli and Beyer make the strong case that without conflict organizations cannot thrive and, furthermore, that management can create the right conditions for productive conflict.

One reason to shy away from conflict is the cost of being on the losing end of the battle. Joli and Beyer maintain that effective leaders create fairly-judged fights where misbehavior is punished and losers are given seats at the table and appreciated for their efforts. Most importantly, perhaps, the fights need to be about issues vital to the firm. The authors boil these ideas down into six principles:

Picking the Right Fights:
1. Make It Material
2. Focus on the Future, not the Past
3. Pursue a Noble Purpose

Right Fight Discipline:
4. Make It Sport, not War
5, Structure Formally, Work Informally
6. Turn Pain into Gain

It’s an important book on an overlooked (you might say “out of favor”) topic. But that’s what makes it worth reading right now. If all our company’s alignment and consensus is still leaving us underperforming, perhaps it’s time to start scrapping again.

Related post:
On “Senior Leadership Teams”

Why “Undercover Boss” is dramatic, and why that’s a bad thing for business

Thursday, February 25th, 2010

7-11 undercover bossI finally got a chance to check out “Undercover Boss” this week, after being curious about it since first hearing about it at the Super Bowl. It follows many reality show conventions, including dramatic music, montages and strategic repetition (I heard, “Those items are supposed to be going to charity!” at least three times).

Why, though, is “Undercover Boss” dramatic? In short, it’s based on an assumption that big-company CEOs are completely disconnected from the front lines of their businesses. Only by the CEOs being out of touch can these shows create the surprise and drama they depend on. Seeing Joe DePinto, CEO of 7-11, struggling to make coffee is funny, but it’s also telling. Selling coffee is how 7-11 makes money. According to DePinto, the store he works in serves 2500 cups per day. DePinto spends his days attending meetings and reading reports, not making coffee, and it shows.

I saw a terribly sad example of the “undercover boss” last week while watching “The Hurt Locker.” One of the soldiers meets with a psychologist colonel who is counseling him for his stress-related illness, caused by his daily encounters with IEDs and their carnage. The soldier teases the colonel that he doesn’t know what it’s like out on the streets. The colonel replies that he’s been out on the front lines earlier in his career. One morning, surprisingly, the colonel shows up and offers to accompany the group on their daily missions. The tragic ending of this amazing scene really struck me and pointed up in an extreme way the costs of the out-of-touch boss. How can one lead when he has no idea what it’s like where the rubber meets the road?

Related posts:
Business Book Hall of Fame: War & Peace
Time to start listening to front-line employees
A method for gathering and using insight from front-line staff

September 2009 Carnival of Trust: Nine ways of looking at trust

Monday, September 14th, 2009

This post is part of Charles Green’s Carnival of Trust, a monthly review of blog entries discussing elements of trust in relationships among people and companies. Thanks to Charlie for inviting me to host this month’s Carnival.

What is trust? Or, more directly, what are the conditions for trust to be present, between a customer and a company or between two companies? This was a theme of several great blog entries this month. To Ron Ashkenas in the Harvard Business Publishing Conversation Starter, simplicity creates trust. He writes: “When you create complicated explanations of products, services, and contracts, customers often feel that you aren’t being truthful about what’s being offered.”

In a selling situation, a salesperson’s knowledge and insight are essential to creating trust, according to Dave Brock. “If the customer doesn’t know, immediately, that you can contribute to what they are doing, they will be reluctant to engage in any kind of discussion with you.”

Roger Dooley of the Neuromarketing blog writes that fairness and transparency are essential to trusting and effective relationships between partners and that engaging in those behaviors (which are rare indeed in many business dealings) can yield better profits than every-man-for-himself negotiation.

Another dimension of trust is allowing autonomy – the ability to loosen the leash a bit and allow employees to make their own decisions rather than the system deciding for them. For example, deciding what material they need to access, even if it’s outside their everyday needs. Bruce Schneier discusses the ineffectiveness of “role-based access control” and argues for a system that sets employees’ access rights but allows them to override these controls when they decide it’s necessary. These escalations are closely audited and inappropriate accesses are penalized. In a world where companies are logging keystrokes to “ensure” remote workers’ productivity, Schneier’s proposal is welcome indeed.

A warning to companies reinventing themselves: merely acting differently can impact the trust their customers have in them, according to Lewis Green in his post, “Social Strategies Grow Out of the Culture, Not the Tactics.” Writes Green, “When customer service is outsourced overseas and customers perceive a decline in their experience, people conclude that efficiency and cutting costs are more important than customers.”

Being able to balance a corporate strategy with the need and perceptions of customers is necessary for trust, as well. So writes Bob Sutton about the dust-up caused by Wal-Mart creating an imitation Girl Scout cookie for sale in its stores. (I posted earlier on Sutton’s post, here.)

Wally Bock talks about the unique and rare breed of trust between an employee and his/her boss (”How Do I Trust Thee?“). To Bock, a boss must be willing to stand up to his own management and defend/protect the employees who work for him. Without this, trust is nonexistent. This post made me think of my management experiences: how often did I stand up for my employee, and how often did I find it easier to agree with my boss about things the employee should do better?

Indirect means of building trust are necessary when your product is intangible – when you’re “selling the invisible,” writes Jorge Lazaro Diaz. Doctors, for example, can build trust in patients by listening to them, showing care and concern, and running an organized office. Patients see these behaviors as proxies for what they’re really in the market to buy, but what’s hard to measure in advance – curing what ails them.

And to wrap up, remaining on the subject of doctors, Scott Eblin mines a New York Times article about a palliative care specialist for leadership lessons. Dr. Sean O’Mahony talks to patients who are dying. He is honest, clear, caring, and curious about his patients’ feelings. He also keeps a level of detachment, preserving his emotional reserves for other patients and his own needs. In this case, passion does not promote trust, it can damage it.

(Thanks to Ian Welsh for collecting an excellent batch of posts to choose from.)

To motivate front-line employees: don’t just thank them, use their insights

Wednesday, August 5th, 2009

Sylvia Ann Hewlett blogged at Harvard Business Review that leaders need to inspire lower-level employees. She writes:

…No one succeeds alone, which is why all leaders must find a way to pollinate the workforce with their values, ideas and enthusiasm. This is what keeps businesses humming, especially during a downturn.

Some leaders inspire the masses via the grand motivational speech. Others via one-on-one conversations. At Time Warner, CEO Jeffrey L. Bewkes held a series of skip-level lunches with ten to twelve high performers that typically had little or no access to him. He spent two unscripted hours talking about his vision and answering their questions. Employees who attended Bewkes’ lunches reported feeling more “confident in the company” and developed a new affinity for their chief.

Whatever vehicle leaders choose to use to reach out and inspire employees at local levels, their talk must have teeth. Don’t spout hyperbole — “Great job” or “we can do it!” Instead, serve up concrete, achievable goals. Listen to people’s problems and offer real solutions. Mentor by sharing your own lessons learned, celebrate teams’ efforts and reward tangible achievements. Even a simple “thanks” goes a long way when delivered from on high.

Each week at furniture designer Knoll, president and COO Lynn Utter emails four senior managers and asks them for the name of one person on their team who has been exemplary. Utter then calls each person to thank and congratulate him or her for a specific accomplishment. Utter is as time-constrained as the rest of us but says that if she cannot make four phone calls a week to acknowledge people’s good work, then she is not doing her job

Hewlett is right–inspiring the troops is an important leadership task, especially in tough times. But my reaction on reading this prescription was, “Ugh, more top-down thinking.” In other words, everything’s up to the leader–that “affinity for the chief” and thanking employees makes a company better.

How about this idea instead? Let’s forget about CEO Bewkes for a moment, and focus on making the work more fun and rewarding for the 87,000 people who work for Time Warner.

Gary Hamel discussed this idea in his recent book “The Future of Management.” In it he pointed out how Toyota is able to leverage the creative thinking of all its 300,000 employees through means like the Toyota Production System. This benefits the company by ensuring a constant stream of innovation, and the employees by making the workplace a more rewarding place to spend time.

I am focused on one particular group of employees–those who interact directly with customers. This includes customer-service reps, retail clerks, bank tellers and account support staff. It is a group with tremendous insight, and a group that’s held in low esteem in companies I’m familiar with. To borrow a phrase from my friend Matthew Achak, “Nobody listens to the reps.”

They sometimes are not even allowed internet access.

This is just wrong. These groups occupy a unique position in the company. They hear the unvarnished truth from customers. Their stories, rather than being ignored, should be nurtured and collected. Everyone else in the company should read them and absorb the lessons (especially the leadership). They should be primary inputs to strategy, marketing and product development. The best stories and best storytellers should be acknowledged and promoted.

Companies should focus on something like this, instead of sending their CEOs around on motivational tours or making four calls per week to exemplary employees.

Increasing employees’ sense of meaning and personal value in their work. Now that’s leadership.

Related posts:
Time to start listening to customer-facing employees
On “The Future of Management”

A Taking-Good-Care-Of-Employees Story

Friday, March 13th, 2009

I thought this would be a nice item to post on a Friday the 13th. Amid the news of layoffs, downsizing, Chapter 11, Ponzi schemes, etc., there are stories of companies working hard to take care of their employees. (It may not be surprising that these tend to be smaller companies.)

This company is A & L Doors out of Columbia, PA. Its General Manager & “Chief Health Officer” is Mary Loreto (disclosure: Mary and I used to work together). In the latest edition of the Lancaster County Chamber of Commerce newsletter, Mary outlines the steps her company is taking to see its employees through these stressful times, in part:

It is our intent to keep our employees positive in a negative economy and one way we are attempting to do this is to promote healthier living and focus our efforts on employee physical and mental health.

We kicked off our year of healthy lifestyles with our very own A&L version of “The Biggest Loser.”

Twenty-six out of our 40+ employees (and some spouses) took the challenge to lose weight and live a better life…. Each week the “biggest loser” is rewarded with a healthy living prize to help build and maintain momentum. The contest will run for 12 weeks and the follow-up maintenance program is already planned.

We have a “gym” set up in the back of one of the warehouses housing many different machines, free weights and cardio equipment. This gives our employees easy access at no cost to add the important aspect of exercise to their weight loss plan. We also provide daily healthy updates and menu ideas…

We are committed to not only “growing our business strong” but to keeping our valued employees healthy and happy so they can participate in the lives of their families and in the community, and bring good strong positive attitudes to their jobs and our customers.

This is a rare story in this time of bleak news from all fronts. Thanks for sharing it, Mary, and good luck with the contest and your business.

(Photo from dplanet via Flickr creative commons)

One of the world’s most dangerous jobs: change agent

Friday, January 30th, 2009

This article from Booz & Co’s “Strategy and Business” will send a chill up your spine. The article, “Stand by Your Change Agent,” by Stratford Sherman and Marisa Faccio, describes the results of a survey of 84 change initiatives between 1995 and 2005.

The initiatives themselves were successful, in the main: 85% met or exceeded the goals set out for them.

The leaders, though, didn’t fare as well. Sherman and Faccio write: “Some 70% of the executives who led these major transformations went unrewarded, or were sidelined, fired, or spurred to leave.”

The authors go on to describe types of companies at different levels of performance and how the change agent role is very risky in all but the very strongest companies. My take: large-scale changes disrupt the organization, stir up resistance, much of which gets focused on the change leader. If the change fails, the consequences are self-evident. If it succeeds, however, the pain endured in achieving it takes a toll on the person running the initiative.

If you’re considering taking this role on, do it for the experience, the resume fodder, and the feeling of accomplishment if you’re successful. Don’t do it, however, for the recognition of your peers and leaders. Chances are, that won’t be coming your way.

Getting out the stories of Burmese prisoners–an heroic feat

Thursday, November 13th, 2008

George Packer’s Interesting Times blog from The New Yorker yesterday discussed Human Rights Watch’s honoring of a Burmese hero, Bo Kyi. Mr. Kyi had been held as a prisoner by the Burmese government, enduring the brutalities of that unique brand of confinement. Upon his release, Mr. Kyi moved across the border to Thailand and founded an organization, Assistance Association for Political Prisoners in Burma, the mission of which includes “report[ing] on the military regime’s oppression of political prisoners who are presently detained in various prisons.”

My Kyi’s remarks on accepting his award were powerful, and are excerpted in Packer’s post. I found this passage particularly striking:

We have a way to communicate with the prisoners and get their stories out. I cannot tell you how we do this. I do not want the Burmese regime to find out. But I can tell you that these stories fill the pages of our reports and those of Human Rights Watch.

The media use these stories. So do political leaders around the world. Over time, the stories of these prisoners generate pressure on the international community to take a stand.

Burmese dissidents are outgunned and outmanned. But they have ideas and stories on their side. Who doubts they will win someday?

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"Sesame Street simple" communication with a story

Wednesday, November 12th, 2008

My first reaction to this Bob Sutton post–”Sesame Street Simple: A.G. Lafley’s Leadership Philosophy“–was a slight recoil. Perhaps because I thought we had tapped out on learning from A.G. Lafley (can’t we let the man run his company in peace?). But also because my natural communication style is not “Sesame Street simple.” Unsure of that? Read this blog for a while.

But, after letting it sit a few weeks, I’m starting to get what Sutton is saying. He’s onto something important about communicating with and influencing large numbers of people:

…although executives who talk about many ideas and complex ideas will be viewed as smarter — wiser and more effective executives pick just a few simple messages and repeat them over and over again until people throughout the organization internalize them and use them to guide action. Constantly changing messages lead to the “flavor of the month problem” where people don’t act on the current message because they have learned that, if they wait a few months (or days) the message will change (managers in such organizations become very skilled at talking as if they are acting on the flavor of the month, but not actually doing the thing that senior executives are pushing at the moment.) And making things overly complicated may make the senior executives seem smart and feel smart , but if a message is too complicated to understand, it is also means that the implications for action are impossible to understand as well.

Managers “talking as if they are acting…but not actually doing” recalls the damaging “false urgency” that inflicts many companies, as John Kotter discusses in his new book.

There’s a way to do “Sesame Street simple” in a way that provides powerful insight and direction. Telling a story. Stories can be understood by everyone. They can be retold and honed for a particular group (”what’s our ‘the consumer is boss‘ story?”). They can convey complex lessons and spawn deep discussions about meaning.

That’s a “Sesame Street simple” approach even I can understand.

(Photo: Hokey Pokey Elmo from Toys R Us)

Related Posts:
On John Kotter’s “A Sense of Urgency”
More on “A Sense of Urgency”
A.G. Lafley: “The Consumer Is Boss”

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