Leading in times of crisis.

Recent events in Paris and many other locations around the world remind us that we are living in unusual times.  Unusual for those of us in Western democracies; not so much for those in different regions.  Residents of the Middle East, parts of Africa and elsewhere deal with this climate of unrest on a daily basis.  But for most of us, these are uncertain times.

As a leader, what should your response be?  How do you instill some measure of sanity to events that seem insane?  How do you bring sense out of chaos?  How do you bring calm in the midst of the storm?

To begin you must acknowledge that the perceptions that are held, are legitimate.  It is true that 'perception is reality''; at least in the eye of the beholder.  You cannot simply dismiss the feelings that these events stir in people.

But acknowledging is not the same as standing in agreement with another.  In fact, as leader it is your responsibility to ensure that individual perceptions actually align with reality.  The fear which is paralyzing another person may, in fact, be a vicarious fear which has little or no likelihood of being played out in your circumstances. 

The truth dispels fear.  And in so doing the root of the crisis is crippled.  With a healthy and appropriate view of the situation, most people will be able to process the risks and consequences by themselves.  It is your responsibility to create an environment in which individuals are able to feel safe, trusted and valued.  In this they will find strength to face their fears.

I have frequently mentioned the need for a leader to be a person of integrity; honestly; and reliability.  While these characteristics are important on a daily basis they carry heightened importance when unanticipated crises enter our lives and the lives of those with whom we work.

Your staff may not be looking to you for this kind of leadership.  But they will be grateful if they find it!

The curse of the AD!

In every supervisory, management or leadership position there is a threefold understanding.  With the responsibility of the position one must also be given the necessary scope of authority to make decisions that impact the outcome.  When the individual accepts these parameters they also accept their counterpart...accountability.

It is like a three legged stool in which all three legs must fit.  If any one of the three is missing the stool will not stand.  Likewise, responsibility, authority and accountability must be implicit.  The absence of any renders this 'understanding' invalid. 

This equation is not new, nor is it rocket science.  Yet I am amazed how frequently it is not properly understood and deployed. 

I see responsibility without authority.  How can anyone be held accountable for the results?

I see authority without a clear definition of the responsibility to which it is attached.  This is a recipe for disaster because the expectations of the parties may be completely different.

And I see too many situations where responsibility and authority are granted but there is no accountability for the results.  In my view this is like playing the game but not keeping score.  That sounds like practice not competition!

In this discussion there is also a significant misunderstanding with respect to delegation of authority.  Too often the person delegating authority believes that they have also delegated the accountability.  NO SO!!!! 

You cannot evade the outcome that easily.  These people are quick to accept the acclaim when delegated authority produces a great result.  But they are equally adept at avoiding the fallout when things don`t go so well.  This person is the classic 'accountability deflector' and the more senior the person, the more adept many become at the game. 

As example, the CEO of a major Toronto corporation recently terminated two senior members of his staff because a project under their scope of responsibility had gone over budget  by some $400 million and was years late in completion.  I don't have a problem in principle with the terminations but in a classic case of 'accountability deflector' - the CEO - ought to be held to account as well. 

What was magic about $400 million and years late as a threshold for a decision.  Clearly if he was doing his job in an accountable fashion he should have been ringing the alarm bell when the project was over budget and late by any amount.  A project of this magnitude most certainly should have been on his radar and responded to in a much timelier manner.  And I hold the Board of Directors equally accountable for their failure to have safeguards in place to prevent this type of incompetence.

A surefire way to disengage your staff is by your abuse of this critical issue of accountability.  To deny it in difficult circumstances or to pilfer it in good have an equally negative impact on your credibility and on the commitment you can expect from others.

Leadership comes with much privilege...privilege which typically increases with the level of responsibility.  Failures happen at every level; perfection is only a goal that none of us ever reach. 

So step up and take the blows that come with being accountable.  It builds character; it builds respect; and to the attentive listener it teaches lessons that lead to future successes.
 

It starts with courage!

You sit alone; your mind is not on anything specific; in fact, the silence is almost overwhelming because your life is so full of activity.

You close your eyes and open your mind to the possibilities that lay before you.  And then, without warning, the question comes?

Would you work for yourself? 

Knowing your strengths and weaknesses; aware of your shortcomings and tendencies; acknowledging your moods;  your ambitions et al.  Would you work for you?

 

Before you dismiss the question out of hand, take a sip of truth serum and let it play out.  Then, with pen in hand, write out the pro's and con's that come to mind.  Nothing is too trivial to record.  Remember, no one can answer this as honestly and as comprehensively as you can!  Allow your mind to search all those back alleys; closed doors; and hidden spaces.  Recall your successes, your failures, your personal wish list.

If you are brave enough, ask a confidante to honestly critique your evaluations.  You want to ensure that you have been neither too harsh nor too glowing in your assessment.  Then, once you have settled on an accurate assessment, answer the question.

Would YOU work for YOU?

Candidly, the answer does not matter.  The issue is not 'yes' or 'no' but rather one of greater significance.  What you have is a point of reference that indicates what you need to do to become a better person, and by extension, a better leader.

Assuming that you have been honest, you can evaluate if the strengths you record are actually the ones that you believe are the best to achieve your personal objectives.  Are these foundational strengths that will uphold you regardless of circumstance. Are they sufficient while you add to them?  You may have identified skills; they may be  characteristics.  Regardless, are they sufficient or simply building blocks.

Likewise, are your shortcomings grievous or something that can be forgiven when you assert to change them.  They may not be a hindrance to you now - at least in your opinion.  But if you have identified them then you have acknowledged an issue that can be improved and in so doing you may turn a weakness into a strength.

Clearly this is a difficult inventory to take.  The leader who truly wants to improve will appreciate that this is always a dynamic list and activity.  As we build strengths, especially as we move a weakness to a strength, we become more effective.  Often this allows us to uncover other weaknesses as we build the courage and resolve to clean out all the closets.

Great leaders are great strategists.  They are constantly assessing the strengths of their team and looking for vulnerabilities in the competition.  Why would you not be doing the same assessment on yourself if you truly desire to move from good to great and from great to outstanding. 

Your impact as a leader will not improve until...and unless...you do!



 

Are we any closer to normal?

A couple of years ago I wrote here about the New Normal.  See http://leadersthatinspire.blogspot.ca/2013/11/the-new-normalthis-is-as-good-as-it-gets.html

Two years on, what has changed?

On the bright side, the US economy shows signs of recovery and unemployment is low.  But the historically low interest rates continue and the number of people actively looking for work is low thereby artificially lowering the unemployment rate.  How much of the recovery is real and how much is illusion?

China continues its march towards a consumer driven economy.  But those at the helm don't seem to know which economic levels to pull resulting in a slowing of their economic output.  This is entirely new territory for them and we can expect a 'trial and error' approach for some time.

The price of oil has collapsed which has added dollars to everyone's wallet while creating a void in their pension plans.

Europe continues to slowly recover only to be over-run with refugees from the Middle East and a corporate melt down at the world's largest auto maker.

Japan continues to wallow in tepid growth (since the late 80's) and no amount of quantitative easing seems to make much of an impact.

Christine Legarde's comments seem more and more true.  We are in a lost decade.  We are 7 years on from the beginning of the Great Recession and nothing really seems all that different.  We have put lipstick on a pig and think that things are rosy.

As a leader, how are you coping? How are you reacting?  How are you planning?

If you are not sticking to the fundamentals of business, frankly you are at risk.  Cash flow and profit are not dirty words; they are essentials to a sound business.  Planning and executing strategically are crucial factors to your success and sustainability.  This is not the time for ill-considered expansion or acquisitions.  Fire sales usually indicate that a fire is occurring and you don't need to spend resources putting it out.

There is no early end to our current predicament. We have already played most of the cards in the deck and have not found the winning hand.  Be committed to delivering excellence in all aspects of your enterprise and you will be one of those who emerges from the other side of this worm hole.  You will achieve this through some simple and basic principles:

1. Attract and retain the best people in your industry.
2. Develop an achievable and sustainable strategy that is well communicated and understood throughout your company.
3. Provide regular, honest feedback on the company's performance.
4. Look for input from all sources and consider all suggestions.  Often the people on the front lines have the keenest insight on opportunities to improve.
5. If you are a small to mid-sized company, find a mentor who has demonstrated success.  Network with like competitors in other regions to share experiences, both positive and negative.  Be open to the fact that you cannot know everything. 
6. Plan with the anticipation that the current business climate is here for the foreseeable future and that you must expect the unexpected.  You will need to be creative, flexible, adaptable and reactive.  In uncertain and troubled times you cannot always be pro-active. What defines your success it is your ability to respond to issues rather than your ability to predict them.

Leadership is not always a comfortable mantle to endure.  These are the times that will separate the authentic leader from the rest of the crowd!  Choose this day, how you will be recognized.

Boxes

How often have you heard it?  A company is in need of a transformation and so everyone is encouraged to:

 '...think outside the box...'

People are suddenly given permission to be creative; to think on their own; to explore possibilities; to use the God-given talents that they brought when joining the company.

Isn't it sad?  We develop work environments that discourage any expression that challenges the status quo.  We wait until things are dire.  And then insist that the thought process ought to be that which we have should have promoted all along.

We built walls and obstacles; we put land mines in the way of anyone who might wander off the path of  least resistance.  And we wonder what went wrong.

Why are our best people leaving?

 

Why are those who remain, so disengaged?

 

Why are strategies so ineffective?

 

 

 

Shouldn't the issue really be

 

'...why do we even have a box...'

 

Leaders need to discard the chains of control and unleash the power that lies within the teams that they have assembled.  I understand that there must be some rules; some processes that guide the day to day operations.  These things provide structure and prevent chaos.  But they cannot limit the potential of the people.

The best leaders are able to function with blurred lines.  Through experience and intuition, they recognize that different people need different limits.  These leaders are willing to own the consequences when things go less well than anticipated.

Every successful company makes mistakes.  But they became successful because they accepted the risks and worked through them; not because they limited the creative talents inherent in their staff. 

Have you the courage of your convictions to think outside the box...

Real power!

My wife owns a small fabric shop.  In the past year it has grown from a start up to a move to a larger location as demand for the products and services that she offers has ramped up beyond our expectations.

On occasion I am called into duty.  I know little about fabric and make no pretenses either.  Were I to even try, my basic ignorance of the subject would 'out' me in a heartbeat.  Fortunately the store has a tendency to sell itself as her keen eye for fabric and the extent of selection is drawing clients from a wide radius.  This, combined with sound business practices, is creating a viable enterprise.

That said, the most powerful tool that we have employed is one that should be fundamental to all businesses, but sadly is frequently ignored. 

It is simple gratitude.

We ensure that every person entering the store is greeted personally and with thanks for taking time to visit us.  Whether they are a buyer or a looker, 'thank you' is expressed sincerely. It really is a sad commentary when so many of them are pleasantly surprised that their mere presence is appreciated. They feel valued...and feeling valued prompts a desire to reciprocate.

Our shop is small; so I am not losing my voice thanking people.  In your larger companies there are many more opportunities.  And not simply clients that you sometimes speak to...

 

Staff members, regardless of their role

All clients, regardless of the size of the sale

All suppliers, regardless of the value of your order

Advisors, anyone whose input has made you better

 

Candidly, there is no one that comes under your sphere of influence who should not be thanked for the contributions that they make to your life and to your success.   It costs you nothing to recognize others and yet it pays such dividends.  Furthermore, it is easy and provides immediate gratification for everyone.

 

 

We live in a time and space where entitlement is the operative word.  As a result, our expectations, when met, are not considered worthy of thanks.  The reality is that none of us succeeds alone.  So take time to thank those who make a difference in your world.  It is a powerful tool when used with sincerity.



All that glitters...

It comes as no surprise when I state that we are in a long term period of low growth.  Since the economic collapse in 2008, companies around the world have had to deal with an entirely different paradigm, something that is often referred to as the 'new normal'.  Whereas companies would routinely expect double digit growth, many are now content with maintaining their status while providing stable and secure employment opportunities for their valued staff members.

This is not to suggest that there have not been those who have grown and prospered despite the turmoil of the day.  Clearly many have, as the digital age brings us many new options.  But for those who have been in business for more than the past 5-7 years in 'traditional' bricks and mortar enterprises, growth and profitability have certainly been a challenge.  In most instances the pie has not grown even in inflationary terms.  The pressure is on all leaders in these companies to find the engine for sustainability.  And here is the real issue...what is gold and what is simply glitter?

As the leader you have no greater responsibility than to ensure the long term viability of the company.  That may seem to most to be self evident.  But in the rush to improve short term earnings or growth, it is disconcerting to know how many fail this test. They have been unable to distinguish  the gold from the glitter.  In their rush to find the new 'thing' they fail to exercise due diligence and in so doing they put the whole enterprise at risk.

If sustainability is an issue, first look internally.  Have you optimized your processes?  Have you addressed productivity issues?  Are your cost centres well controlled?  Can you improve margins without impacting sales?  More often than not, you will be able to find aspects of your current operations that do not meet 'best in class' standards.  Fixing that which is fixable will generate more profits and ultimately deliver better results for your clients.  Begin your search for growth at home before looking for afield.  The best leaders have learned that all that glitters is not gold.

(I will be off for the summer and returning in September with more 'bon mots' on Inspirational Leadership.  Enjoy your holidays!)