Yesterday we looked at what our general leadership direction might be for 2009, given the economic chaos we've experienced with the closing of 2008. The premise was that we should not be inhibited by the unprecedented business failures, but rather take firm control of our leadership responsibilities. Today, let us take a look at building upon that with 2 more thoughts.
Resolution # 2: Let us be "Thoughtfully Fearless"
Our first reaction might be, "...isn't "thoughtfully" in congruent with "fearless"? Well, I vote no. To me, anyone who is blindly fearless, not wary of anything, and moves too quickly without knowledge, is foolish. Many of you who follow my blogs will recall that I play poker, and have been in the Main Event in the World Series. If I haven't learned it in business, I've learned it at the tables: aggressiveness can serve one well, but without knowledge, history, and analysis, it can mean a quick end.
So let's construe "thoughtfully fearless" to be one who does her homework, and also has the courage to take "calculated" risks when the upside exceeds the downside. We realistically look at things as they are (not as we wish them to be), gather & analyze the data, and then "pull the trigger". We do not fear the outcome, but rather, passionately anticipate the outcome & treat it as a learning experience. One of my favorite quotes is: "I need to teach my people to fail faster."
Resolution # 3: Admit Wrong Turns & Make Course Corrections
Having made a big issue of moving forward with courage, why should mistakes be brought up? Well, simply because I believe it takes MORE courage to admit when one is wrong than it does to make the decision in the first place. Our human nature is often the culprit. If we are in fact "thoughtfully fearless", we have put in a great deal of time and energy, not to mention expense & credibility, to convince ourselves and other to take a certain path. It is natural to defend a decision, and therefore want to stick with it.
What we must do instead is, take a step back, get sound inputs from others, and factually evaluate the outcome and new data as it presents itself. If we see clear evidence that the result is not what we anticipated, we may need to face the facts, and lead the effort to modify the program. Admitting mistakes is not a weakness unless we do not become better for the attempt. A confident, but realistically humble, leader is the one most likely to have the most loyal following.
This is my last posting before 2009; may God bless your New Year!
Tuesday, December 30, 2008
Monday, December 29, 2008
The Executive's List of New Year's Resolutions
As we approach 2009 as leaders of our organizations, it seems fitting that we look at our priorities for the New Year. When the economic challenges we now face, are coupled with more uncertainty than we've ever seen, our thoughtful consideration and commitment to action is needed more than ever.
As if the above is not enough motivation, there is another reality among Presidents & CEO's I see, that really seals the deal. It is far more insidious, and seems to be most compelling. It is a great reluctance to "pull the trigger" on change. It could be a high level personnel replacement, a large new piece of equipment, or rolling out a new product. Whatever the issue, it's like our shoes are stuck in cement.
What seems to have us back on our heels is that, for most of us, we have not seen in our lifetimes last quarter's financial chaos. There is much concern over what next year will look like, let alone next quarter. It can be paralyzing if we allow it.
Accordingly, let's make resolution #1 to be:
Take ownership, take charge, and take action.
When we commit ourselves to doing our homework, being involved, and involving others in a solution, good things happen. Why? Because when we take these steps, we learn & we lead. When we're tentative, our people see it and they become tentative too. When we work at it, are willing to listen and learn, so are they.
Another benefit of taking ownership is that when the unexpected happens, we're not in it alone. We will not be misinformed or behind the learning power curve. What results is an orderly action & a solution that is, not only endorsed by more of your people, but more often than not the appropriate one.
Finally, confidence is built across the board. Confidence, when it is found bottom up as well as top down, fosters courage not only in leadership, but in the rank and file as well. Confidence is a wonderful thing; it gives us the energy and intensity to be aggressive, if appropriate, and take control of our destiny. In this environment, control is good!
Tomorrow: Resolutions 2 and 3.
As if the above is not enough motivation, there is another reality among Presidents & CEO's I see, that really seals the deal. It is far more insidious, and seems to be most compelling. It is a great reluctance to "pull the trigger" on change. It could be a high level personnel replacement, a large new piece of equipment, or rolling out a new product. Whatever the issue, it's like our shoes are stuck in cement.
What seems to have us back on our heels is that, for most of us, we have not seen in our lifetimes last quarter's financial chaos. There is much concern over what next year will look like, let alone next quarter. It can be paralyzing if we allow it.
Accordingly, let's make resolution #1 to be:
Take ownership, take charge, and take action.
When we commit ourselves to doing our homework, being involved, and involving others in a solution, good things happen. Why? Because when we take these steps, we learn & we lead. When we're tentative, our people see it and they become tentative too. When we work at it, are willing to listen and learn, so are they.
Another benefit of taking ownership is that when the unexpected happens, we're not in it alone. We will not be misinformed or behind the learning power curve. What results is an orderly action & a solution that is, not only endorsed by more of your people, but more often than not the appropriate one.
Finally, confidence is built across the board. Confidence, when it is found bottom up as well as top down, fosters courage not only in leadership, but in the rank and file as well. Confidence is a wonderful thing; it gives us the energy and intensity to be aggressive, if appropriate, and take control of our destiny. In this environment, control is good!
Tomorrow: Resolutions 2 and 3.
Friday, December 5, 2008
Ethics, Trust, and the Meaning of Christmas
AS we further immerse ourselves in the Holiday Season, it seemed fitting to me to reflect on WHO we are as business people, and HOW we go about communicating, performing, and leading in our organizations.
Whether we are Atheists, Jewish, Christian, Muslim, or another faith, who would our God say we are? Or, who would our mother say we are? Jesus said, "Let your yes be yes, and your no be no." Seems simple enough, but further scrutiny and our pride can complicate the matter.
As I was reading about communication the other day, the point was made that it all starts with trust. Think about it, without trust, can there be good communication? The answer is no. If we cannot trust what is being said, then all the eloquent wording in the world is not going to do any good. Conversely, with a great level of trust, much less can be said.
It would follow then that we should build trust to foster and prepare for good communication. I think we can agree, or at least understand the concept. Does it happen overnight? No; it takes time. The next question is when trust exists, what can undermine it? How about lies, or misrepresentations? How many does it take? Just one. It doesn't seeem fair, but that's the way it is.
Communications experts say that six different messages can be given when we speak: 1) What I actually say 2) What I mean to say 3) What you hear 4) What you think you hear 5) What you say about what I said 6) What I think about what you said about what I said. This may seem confusing at first, but when you study it, you'll find it's true.
What really will complicate it for you is, what do you think happens when I mix in even a little dishonesty into something that is already difficult? It becomes a total mess. Is there any wonder that stress and hard feelings result?
To avoid eroding that trust that we've worked so hard to build, we need to clean up four familiar weaknesses we all exhibit:
1) Telling lies. One way or another, we all have lied. It can be white or black, but we all have at least misrepresented or mistated something to avoid embarassment or criticism.
2) Broken promises. We all have failed to follow through with doing what we said we would, even if unintended or forgotten.
3) Patronization We also flatter people to get their support, avoid conflict, or to seem better in their eyes.
4) Failing to speak up. Finally, failing to speak up at critical times to either support someone when appropriate, or exhibit courage in disagreeing, is something all have blundered through.
Ethics wraps itself around all of these issues. To me, my ethics are HOW I deliver on matters of trust. Do I take the easy way out because I'm afraid of criticism, losing a raise, being admired by my co-workers, or not getting the order? We only need to look at the financial mess our great Country is in now to see how communication and trust were shattered.
We must choose to rebuild trust. This can only be accomplished by committing to the truth over time. It's hard work, sometimes embarassing or at least unpleasant, but we must commit to letting our yes be yes, and our no be no. This doesn't mean we are not sensitive to feelings, but that we are SO sensitive to others that we gift them with the truth.
What can you accomplish with statements like:
Yes, I care about what you do No, I can't accept what you're doing
No, I wasn't listening to you Yes, I'll work through this with you.
Yes, we will reward the team No, you have not earned a raise
And the final yes is: Yes it will make your God, or your mom (or both) proud!
Whether we are Atheists, Jewish, Christian, Muslim, or another faith, who would our God say we are? Or, who would our mother say we are? Jesus said, "Let your yes be yes, and your no be no." Seems simple enough, but further scrutiny and our pride can complicate the matter.
As I was reading about communication the other day, the point was made that it all starts with trust. Think about it, without trust, can there be good communication? The answer is no. If we cannot trust what is being said, then all the eloquent wording in the world is not going to do any good. Conversely, with a great level of trust, much less can be said.
It would follow then that we should build trust to foster and prepare for good communication. I think we can agree, or at least understand the concept. Does it happen overnight? No; it takes time. The next question is when trust exists, what can undermine it? How about lies, or misrepresentations? How many does it take? Just one. It doesn't seeem fair, but that's the way it is.
Communications experts say that six different messages can be given when we speak: 1) What I actually say 2) What I mean to say 3) What you hear 4) What you think you hear 5) What you say about what I said 6) What I think about what you said about what I said. This may seem confusing at first, but when you study it, you'll find it's true.
What really will complicate it for you is, what do you think happens when I mix in even a little dishonesty into something that is already difficult? It becomes a total mess. Is there any wonder that stress and hard feelings result?
To avoid eroding that trust that we've worked so hard to build, we need to clean up four familiar weaknesses we all exhibit:
1) Telling lies. One way or another, we all have lied. It can be white or black, but we all have at least misrepresented or mistated something to avoid embarassment or criticism.
2) Broken promises. We all have failed to follow through with doing what we said we would, even if unintended or forgotten.
3) Patronization We also flatter people to get their support, avoid conflict, or to seem better in their eyes.
4) Failing to speak up. Finally, failing to speak up at critical times to either support someone when appropriate, or exhibit courage in disagreeing, is something all have blundered through.
Ethics wraps itself around all of these issues. To me, my ethics are HOW I deliver on matters of trust. Do I take the easy way out because I'm afraid of criticism, losing a raise, being admired by my co-workers, or not getting the order? We only need to look at the financial mess our great Country is in now to see how communication and trust were shattered.
We must choose to rebuild trust. This can only be accomplished by committing to the truth over time. It's hard work, sometimes embarassing or at least unpleasant, but we must commit to letting our yes be yes, and our no be no. This doesn't mean we are not sensitive to feelings, but that we are SO sensitive to others that we gift them with the truth.
What can you accomplish with statements like:
Yes, I care about what you do No, I can't accept what you're doing
No, I wasn't listening to you Yes, I'll work through this with you.
Yes, we will reward the team No, you have not earned a raise
And the final yes is: Yes it will make your God, or your mom (or both) proud!
Navigating Trhough The Perfect Storm - A Counterintuitive Approach Can Strengthen Your Emergence
The Milwaukee Small Business Times recently published (11/21) this blog, regarding actions that can be taken in tough times, such as we are experiencing now. The idea is to emerge even stronger while meeting the challenges. It's truly amazing how some of our deepest struggles can create a much stronger "us".
A few years ago, Sebastian Junger wrote the best selling novel, "The Perfect Storm", which became so popular the title is now synonymous with any incredibly harsh occurrence. I believe our current financial/economic situation qualifies.
So does Jack Welch. Referring to "Seizing the Storm", he recently wrote an article on what strategies we as executives need now to consider. Meanwhile, because I believe that some of our best opportunities are found inside of challenges, I had put together some thoughts with a similar theme.
Some of what follows is counterintuitive, but embracing at least some of the the ideas will add to your arsenal of management tools for tough times.
Increase Spending in Critical Areas:
Reducing costs is not only recommended, it is almost always mandatory. However, so many of us get caught up in cost cutting, that opportunities are lost. For example, marketing budgets, new equipment acquisition, and customer service are almost always reduced in slower times, along with everything else. These are examples of areas that can add revenue, in both the long & short run. Here, we spend money to make it.
Set Targets, and Then Allow Your Managers to Hit Them:
Leaders will be much more effective if they will simply state what is needed instead of mandating specifics. Examples might be, "Take $150,000 out of your budget", rather than "Lay off 5 FTE's"; OR "That line has to generate $50,000 more in gross profit over the next 6 months" rather than "Cancel the upgrades for the equipment". You tell them the what and the why; they tell you the how. They are so much closer to it than you, and they almost always will surprise you with their creativity.
Cut Costs, Not Good People:
I once had a CEO that at the first sign of a downturn would call an Executive Committee Meeting and mandate staff cuts. Not only did we lose good people on occasion, we also found ourselves short staffed when business picked up. The business was hurt instead of helped. Fortunately, we often were able to talk to him in terms of efficiency savings, training, or better equipment, rather than just staff reductions.
Aggressively Recruit the Best People in Your Marketplace:
Since your competitors may make the mistake of laying off competent & motivated employees, you may find good hires available only in poorer economic times. We only need to remember back three years, right here in Southeastern Wisconsin, when we had an acute shortage of even marginally competent persons. Accordingly, go get them now when they are most available. Your money will be well spent, and serve you especially well when demand rebounds.
Talk to Prospective Customers That Have Never Listened to You Before:
Customers are most receptive during challenging periods. They are more apt to respond to e-mails, phone calls, sales calls, and proposals than ever. It's in precisely these times that contracts change, efficiencies are welcomed, and relationships are cultivated. Spend time, money, and people to reach prospects.
As Jack Welch says, we must, in these periods, take our classic defensive posture, but we need to go on the offense as well. Do this and you'll weather the Perfect Storm!
A few years ago, Sebastian Junger wrote the best selling novel, "The Perfect Storm", which became so popular the title is now synonymous with any incredibly harsh occurrence. I believe our current financial/economic situation qualifies.
So does Jack Welch. Referring to "Seizing the Storm", he recently wrote an article on what strategies we as executives need now to consider. Meanwhile, because I believe that some of our best opportunities are found inside of challenges, I had put together some thoughts with a similar theme.
Some of what follows is counterintuitive, but embracing at least some of the the ideas will add to your arsenal of management tools for tough times.
Increase Spending in Critical Areas:
Reducing costs is not only recommended, it is almost always mandatory. However, so many of us get caught up in cost cutting, that opportunities are lost. For example, marketing budgets, new equipment acquisition, and customer service are almost always reduced in slower times, along with everything else. These are examples of areas that can add revenue, in both the long & short run. Here, we spend money to make it.
Set Targets, and Then Allow Your Managers to Hit Them:
Leaders will be much more effective if they will simply state what is needed instead of mandating specifics. Examples might be, "Take $150,000 out of your budget", rather than "Lay off 5 FTE's"; OR "That line has to generate $50,000 more in gross profit over the next 6 months" rather than "Cancel the upgrades for the equipment". You tell them the what and the why; they tell you the how. They are so much closer to it than you, and they almost always will surprise you with their creativity.
Cut Costs, Not Good People:
I once had a CEO that at the first sign of a downturn would call an Executive Committee Meeting and mandate staff cuts. Not only did we lose good people on occasion, we also found ourselves short staffed when business picked up. The business was hurt instead of helped. Fortunately, we often were able to talk to him in terms of efficiency savings, training, or better equipment, rather than just staff reductions.
Aggressively Recruit the Best People in Your Marketplace:
Since your competitors may make the mistake of laying off competent & motivated employees, you may find good hires available only in poorer economic times. We only need to remember back three years, right here in Southeastern Wisconsin, when we had an acute shortage of even marginally competent persons. Accordingly, go get them now when they are most available. Your money will be well spent, and serve you especially well when demand rebounds.
Talk to Prospective Customers That Have Never Listened to You Before:
Customers are most receptive during challenging periods. They are more apt to respond to e-mails, phone calls, sales calls, and proposals than ever. It's in precisely these times that contracts change, efficiencies are welcomed, and relationships are cultivated. Spend time, money, and people to reach prospects.
As Jack Welch says, we must, in these periods, take our classic defensive posture, but we need to go on the offense as well. Do this and you'll weather the Perfect Storm!
Subscribe to:
Posts (Atom)