Recently in Leadership Category

The Design of Business

| | Comments (0)

Imagine your dismay when this hypothetical product has all manner of dysfunctions that require endless workarounds to compensate for its bad design. Would you settle for that? Not likely. Odds are excellent that in short order you'd be on your way back to the store and standing at the returns desk.

If we won't tolerate badly designed products in our lives (MS Windows notwithstanding), why do we tolerate badly designed businesses? When you consider the relative importance in our lives of that from which we derive our livelihood, we should have far less tolerance for dysfunction at work than we do at home.

The problem is that dysfunctional organizational environments is mostly all we've ever known.

The great anthropologist Edward T. Hall in his classic book The Silent Language said that "culture is largely invisible to its participants." In our lifetimes there has been much research and education and popular awareness of corporate cultures. However, what has remained invisible is the culture of business.

For those who are not conversant with the concept, culture can be thought of as that set of beliefs and assumptions about reality that order all personal and social activities. In the culture of business, there are many assumptions which are never seriously questioned. An example would be how many direct reports a manager should have. The rule of thumb is six to eight. No one questions job costing as a legitimate accounting technique.

As a reality check, i personally know a CEO of a $600M company who has 500 direct reports and the people who invented job costing were very aware that it introduces very serious distortions into understanding how companies make money.

One of the great failings of Western culture is that we tend to fixate on symptoms when systems are dysfunctional (like our health) rather than striving to understand what the underlying causes are that are giving rise to the observable symptoms. Nowhere is this more true than in organizational life.

We have created a massive infrastructure of consultants, writers and thinkers who exhort us to have emotional intelligence, have fierce conversations, understand the five dysfunctions of a team, be one minute managers and remain calm when someone moves our cheese. This infrastructure virtually without exception if focused on treating symptoms and never really asks the hard question, "What is it about the way in which we have designed businesses, leadership and management that is giving rise the the many dysfunctions of which anyone who has spent any time in any kind of organization is intimately aware?"

Asking this question, brings to visibility, the heretofore invisible layer of business culture. It puts us in the uncomfortable position of having to question our most sacred assumptions, to bump off our sacred cows, to throw ourselves into the non-linear space of not knowing.

Most people do not find this a happy experience.

Sadly most of us are willing to accept the corrosive effects of chronic pain of living with dysfunction for the short spike of acute pain of working through the unknown and arriving at a new way of being and doing in which the dysfunctions have disappeared.

We know that organizations cannot remain static. The world is changing rapidly and organizations that fail to adapt and evolve become obsolete and incapable of delivering adequate value to their constituents to survive. The Quality disciplines (TQM, Six Sigma, Lean) are powerful tools and have had a huge impact on our ability to do more with less.

In recent years, the body of work that perhaps has come closest to challenging the norms of business culture has been Goldratt's Theory of Constraints. If you haven't read The Goal, It's Not Luck, and Critical Chain, you need to do so.

But the issue remains that from a design standpoint, if organizations were better designed, we would not have to deal with the incredible dysfunctions that organizations manifest and I would make the case that we cannot remotely afford the cost of these dysfunctions in what is rapidly becoming a just-in-time world.

How do we attack this problem? The starting point is to realize the assumptions that went into the design of what i call traditional management practice.

The inventors of management as we know it were 19th century intellectuals whose worldview was Newtonian, that is they understood the universe to be a cosmic machine. At some levels this understanding was accurate, but a long way from complete.

We now know the universe is self-organizing and that below it's more superficial machine-like qualities, creation is much more complex and unpredictable. The fact that Complexity Theory has shown us that all systems have a natural propensity to self-organize should help us begin to see how we need to attack the redesign of organizations, leadership and management.

The key elements are how we structure organizational relationships, how we compensate, how we provide feedback, how we educate, train and orient our employees.

If you look at traditional management practice from the point of view of Complexity Theory, it becomes apparent that much of traditional management is designed to prevent self-organization. Surely it makes more sense to design organizations which swim with the currents of how the universe appears to actually work rather than against them.

When was your last "ah-ha!" moment?

| | Comments (0)
When was the last time you had an "ah-ha!" moment?

Seems as though they come in two versions.  The first version is when your worldview shifts.  These ah-has are usually permanent.  Once things have shifted, they don't ever go back.  Discovering complexity theory was that for me, the notion that all systems have a natural tendency to self-organize.  Head slappers.

The other type is more ephemeral and usually an observation or insight on ourselves or our organizations.  These are at least as if not more important but have a tendency to slip away quickly.  If you've ever flown on a day with low overcast skies and as the plane takes off, at some point gets above the cloud deck into astonishing sunlight.  Sooner or later, however the plane begins its decent back into the murk.  So it is with these moments of insight.

How to somehow insure that these insights are not lost?  

1) Write them down.
2) Act on them.  Now.

That's what you can do in my experience.

I had one today.  And I'm acting on it by writing this blog.

The insight was this: The output of my work is not nearly as creative as the output of my brain.  

Anyone else ever share this reality?  (Raise your hand.) 

There is a reason for this, actually, but it is a problem that is amenable to process improvement.  Here's the issue:

Accomplishing anything involves two design problems:  the first is the design of what you would like to create.  The second design problem is how to execute the results of the first design problem.  What normally happens is one of two things:

1. We start trying to figure out the second design problem concurrent with the first design problem.  This turns the whole exercise into a fur ball and typically fatally compromises both the quality of the vision and the quality of execution.

2. We get so bogged down in the details of execution that the execution is late or never gets done at all and as a result we don't innovate at anything like the pace either of which we are conceptually capable or that we need to to maximize mining of our markets.

Solutions:

1. Never worry about execution during the creative design phase.

2. Build the organizational infrastructure for execution.  Hire an assistant, hire a project manager, contract with an agency, bring in a temp, set up an office space, put up a big bulletin board, do whatever you need to do to capture those ideas and get them executed quickly.

3. Engrave the following mantra in your brain: "The Key to Innovation is Miniaturization."  Execute all your ideas on a small scale.  They will execute much more quickly, you won't got bogged down with budget discussions, accountants and lawyers won't get involved (and no one can shut down execution faster than lawyers and accountants) and if the idea turns out to be a dud, so what?  The cost was relatively trivial.  If it actually works, then put more resources behind it and push.  Your worst enemy is your own organization.  

It's worth remembering that the fundamental imperative behind every organization is to make sure that absolutely nothing new ever happens.  To get something new happening you have to push people out of their comfort zones, or (if you're smart) pull people out of their comfort zones.  Bring a wild new idea to the table and everyone's brakes lock.  Bring a proven concept to the table and people will at least listen and chances are someone will get excited and pick up the ball and start to run.

Now I've got to go figure out how to apply this wisdom to my own life and business!

Is Your Business Making You Values Blind?

| | Comments (0) | TrackBacks (0)
I was having a conversation with a client the other day and we got to talking about one of the more insidious risks in business, creeping values blindness.  

The classic example is the tobacco industry.  One hundred years ago, tobacco was an honorable business to be in.  But as it grew and became a very valuable (financially) institution, and knowledge of the deleterious effects of tobacco became known, its members found themselves unable to make appropriate value judgments, such as saying, "We really should get out of this business because it's killing people."  Instead (as further discovery revealed) they began figuring out how to target women and children, develop additives that made cigarettes more addictive and generally compounded the felony of remaining in that business.  The ultimate expression of this was the spectacle of the nine CEOs of the largest tobacco companies on national television lying to Congress about their knowledge and activities.

As our knowledge and understanding evolve, we have to be very careful that our business doesn't stunt our growth.  The case for global warming is another example.  The only major country in which there is any serious debate about global warming is the US.  Why?  Because of a very carefully orchestrated disinformation campaign by the oil companies.  (For extensive documentation of this just Google "global warming disinformation".)  Given the potential impacts of climate change, how can the people involved justify these kinds of actions which by any standard of measure are immoral?  

In my writing on self-management, I've made the case that people's behavior is a product of the ecosystem in which they work.  It's not difficult to see how people get locked into a system where there is way too much peer pressure for individuals who have qualms to be able to change the system.  The system has way too much inertia to allow for a voice of sanity to be heard.  Meanwhile, the participants in the system are stuck in a moral dead end.  The knowledge of the inappropriateness of what they are doing is there, but they are unable to respond so they have no choice but to resolve this cognitive dissonance by conjuring up some justification for their behavior.  Taken to its extreme, this can have serious legal implications (e.g. tobacco).  For the entrepreneur, the issue is more one of developing a case of values blindness which stunts our spiritual growth.

Our understanding of what is healthy and in alignment with nature is growing by leaps and bounds.  Is your business built around an obsolete model?  If your business has to do with food, large energy consumption, large percentage of cost or value in throw-away packaging, or is of little intrinsic value (e.g. impulse purchases), this would be a good time to think long and hard about how to transform your business.

Would there be a cost?  Sure.  Would there be dislocation?  Sure.  But think of it this way, someone out there without the liability of the organizational and market inertia you have is laying awake at night trying to figure out how to displace you with products and services that make yours either irrelevant or unappealing to generations of consumers who are looking at what they buy in very different ways than has historically been the case.  

Ultimately the issue is that in times of great change, the status quo is the most dangerous strategy.  Not only does it bring a significant business risk, but values blindness is a significant personal risk as well. 

The Five Most Dangerous Words in Business

| | Comments (0)
The great anthropologist Edward T Hall said in his classic book The Silent Language, culture is largely invisible to its participants.  Culture, of course can be defined as those assumptions and beliefs about the nature of reality that never get questioned.  There has been much said and written about corporate cultures over the years and a quick search on amazon for "the culture of business" brings up many books on doing business in other countries.  But what assumptions do we make in how we organize, compensate, provide feedback, educate and orient our employees?  There are many assumptions and beliefs that never get scrutinized.  

And they cause big trouble.

Let's be honest, American businesses (and probably all businesses) are filled with all kinds of dysfunctions that create stress, inefficiencies, loss of productivity, waste, and stunt the development of the talent for which we pay so dearly.  The assumption that is the most deadly to business today can be summarized in the five most dangerous words in business:

That's just how it is.

It's almost if instead of the ten commandments, Moses came down the mountain with the blueprint for the modern organization.  An act of God determines how we do things and the dysfunctions we deal with, well, that's just how it is.

Except it isn't.

Organization design, management practices and processes are human artifacts, not holy relics.  They are the product of human design processes.  And anything humans design, humans can redesign.

How is it that we have fallen into the trap of assuming that when things go wrong that someone must be responsible?  Why is it that when there is a lack of trust among employees (or worse, leaders) that the people are the problem?  The facts are:

1) The people are uncaring, negligent, incompetent, and indifferent or
2) The people are caring, attentive, competent and committed, but are responding to the pressures and rewards of the ecosystem in which they work and to which they pay very close attention, and the dysfunctional behavior is symptomatic of the system in which they work.

What other options are there?

If you believe your people are caring and committed, then the only place to look is the system.

As Sherlock Holmes once said, "When all other alternatives are eliminated, whatever is left, no matter how improbable, must be the truth."

We do not have the luxury of putting up with the wasted efforts of people working at cross purposes in our companies.  We have to reinvent business around a different model.  We need to study the culture of business and realize the trap we've fallen into is that we have gotten so used to our organizational dysfunctions we assume that, "That's just how it is."

The good news is that nature is showing us the way.  More on this over the next few weeks.  

Meanwhile, the next time you let out a sign of exasperation about the dysfunctions in your organization and hear those five most dangerous words wander through your mind, I hope all your alarms go off.  The right response is, "We created this mess, and by God we can fix it." 

Technology and Strategy

| | Comments (0)
I did an interview yesterday for a podcast on webteks.com that will be up in a week or two but the subject was important enough that it deserves some comment and that is the relationship between technology and strategy.  

This is a huge subject but the critical point here is that one can no longer think about business strategy without technology being integral to both the vision of where a company should go and the strategy of how to get it there.  Technology is now inseparable from both vision and strategy.  

An example:  Anyone who has been to Bentonville, Arkansas has seen the windowless concrete cube that must be seven stories on a side.  That is Wal*Mart's data center although data bunker might be a more apt description.  If you are a vendor and subscribe to their service, you can watch your products going over the scanners in every store in their system in real time.  Could Wal*Mart exist without technology?  How could mere human beings keep track of $300+ billion worth of goods and the payroll details of over a million employees without technology?  Not remotely possible.

Marketing (webinars, email campaigns, social networking), administration (workflow, document management), sales (CRM, videoconferencing), operations (GPS, ERP, RFID), finance (accounting, electronic banking, EDI), HR (online recruiting, learning management, human resources information systems, intranets), purchasing (extranets, EDI) are just a few of the ways that technology is infiltrating and transforming everything we do in business.

But here's the challenge.  Most of the leaders of our companies can remember a time when they didn't have a PC on their desk.  Many grew up at time when typing was something secretaries did, certainly not executives.  The personal computer was something that got bolted on to their lives and careers, not built in.  In many cases they don't have an intuitive grasp of technology.  It's worth remembering that many of the younger entrepreneurs among us (and perhaps your competitors) cannot remember a time when there wasn't a PC in the house.

Another reality is that technology is a tool.  Some people get tools and some don't.  It is some kind of brain thing.  You can watch someone who gets tools pick up any tool and just see how they are processing its capabilities and applications just by studying it's form.  No judgement implied here.  In his ground-breaking book Frames of Mind, Harvard professor and MacArthur Fellow Howard Gardner postulated at least six types of intelligence.  So lack of instinct for tools only means that other types of intelligence are likely to be present.  However, in a technological world, the ability to grasp the strategic importance and potential applications of technology cannot be overstated.  

It is critical that business leaders do a rigorous self-assessment.  If technology is not your strong suit, then you must find people to team with who really get both technology and business.  If you have internal IT people, in too many cases they will not be strong business or strategic thinkers.  Even if you do have strategic level people who get technology, it will behoove you to team up with an outside firm that is relatively product agnostic to offer a second opinion.  Technology is like anything else, people have their tastes, biases and experience that shapes their opinions, not always objectively.

If you do have an interest in and aptitude for technology, as a business leader, you need to:

  1. Stay current with the technology press.  Subscribe to E-Week, Information Week or InfoWorld.  They are likely to seem more geeky than might be desirable, but it will give you a feel for what is going on.  You will also get a very visceral feel for how fast it's all moving.
  2. When going to your trade association or other conferences, seek out the technology workshops and vendors and grill them for what the bleeding edge people are doing.  You may not want to be taking on bleeding edge projects until the technology has proved itself, but you need to know where people are pushing the envelope.
  3. Pay attention to technology in the popular press.  It is difficult to know how Web 2.0 will wind up affecting business (and if you don't know what Web 2.0 is then you've got some homework to do) but when you consider that MySpace gets more clicks per day than Google, that there are multiplayer role playing games out there with 110 million members worldwide, these are numbers way to big to ignore.  
Every leader's job is to be constantly enriching the tapestry that is his/her worldview.  We can't always know the implication of any individual thread in that tapestry.  But with things changing as fast as they are in today's world, the risk of winding up in an evolutionary dead end is just too great not to be pulling in information from every dimension of life. 

Technology is a challenge conceptually, culturally and economically.  Management luminary Peter Drucker once chastised business for being too dependent on computers.  What even he failed to grasp is the real power of computer technology is that technology creates the ability to do things that cannot be done any other way.  This is the real power of technology.  Ironically, it is the people in the system who are slowing down the process.  Technology is fundamentally changing the game.  Humans as a whole just can't wrap our brains around and adapt to change as fast as technology is capable of creating new opportunities.   

Therein lies both the challenge and opportunity for business leaders.

Words of Wisdom

| | Comments (0)
If you're not familiar with the name John W. Gardner click on the link to get a run down on his remarkable career.  In 1990, he published the best book on leadership I have run across in my career, appropriately entitled On Leadership.  I read it years ago and had reason to pull it off the shelf the other day to find a quote that I had remembered that I wanted to pass on to a client.  I think the quote is worth passing on to my readers as well:


To exercise leadership today, leaders must institutionalize their leadership.  The issues are too technical and the pace of change too swift to expect that a leader, no matter how gifted, will be able to solve personally the major problems facing the system over which he or she presides.  So we design an institutional system--a government agency, a corporation--to solve the problems, and then we select a leader who has the capacity to preside over and strengthen the system.  Some leaders may be quite gifted in solving problems personally, but if they fail to institutionalize the process, their departure leaves the system crippled.  They must create or strengthen systems that will survive them. 

John W. Gardner
from, 
On Leadership  


The Workload Paradox

| | Comments (0)
Productivity is at the heart of business.  We measure it at a macroeconomic level. Managers worry about it.  Employees are often measured on it.  Most people work at or near the practical maximum production capacity (Figure One).  This is not to say that their activities are necessarily effective, but people tend to stay busy.  productivity1.jpg

Most people would agree, their lives (work and personal) tend to hover around their maximum capacity, sometimes in overload, sometimes a bit less than their maximum.

On the surface, this looks like the optimum scenario, the content of what we are doing notwithstanding which I'll touch on in a bit.

It appears we are making the most efficient use of our time and talents. But, as usual, there is a fly in the ointment.

Figure Two shows us the fly.

productivity2.jpg
As soon as we are confronted with any change, any surge in workload we immediately go into overload.  I think everyone would agree that overload is not our best gig.  Tempers get short, stress increases, work hours cut into family time, sleep deprivation starts to impact our effectiveness.

Granted, there are those who would say they do their best work under pressure.  I'm one of them actually and there is some basis of truth to this.  However, over the long haul, the cost in physical, emotional, relational well being, clarity of thought and action belies the notion that this is a desirable scenario in any way.  

The quality disciplines for example demonstrate conclusively that it is the consistency of throughput that yields the highest quality work and that spikes and slack times undercut quality.
productivity3.jpg

This brings us to the workload paradox. 

What if we throttled our activities back to something that looked like Figure Three?

Well, the first complaint is that we're not being as efficient as possible.  At one level, clearly this is true.  But let's look at it from another point of view.  What production manager ever born does his/her production planning based on the assumption of 100% uptime of production machinery?  

None.

Murphy lurks on every factory floor.  Machines break, machines require preventative maintenance.  Smart 
productivity4.jpg
production people conduct predictive maintenance.  All this downtime has to be factored into any and all production expectations.  

Why do we consider this principles not applicable to human beings (ourselves as well as our employees)?  Imagine the overload scenario in Figure Two taking place in the context of the workload of Figure Three.  The result is shown in Figure Four.  

In this scenario, we have surge capacity.  We can assimilate changes in our world.  We can deal calmly and effectively with crises.  

Here's the real kicker.  

"I really should train Bob/Sue to take this responsibility off my plate but I'm just too busy to take the time.  It's quicker to just do it myself."

Anyone out there in blog land ever had that conversation with themselves?  It's OK.  We've all done it.  This is called being trapped and it is a byproduct of working at your maximum practical capacity.  If you don't have time to leverage yourself, you're trapped.  If you don't have time to work yourself out of a job, you're trapped.  Whether you're an employee or the CEO it doesn't matter, you're still trapped.  Ironically, trapped in a prison of your own making.

As a leader of a company, division, or workgroup or even just yourself, getting out of this trap requires voluntarily driving yourself into overload for some period of time.  You have to do more before you can do less.  What are the steps?

1) Identify the least strategic, important, or skilled activities you spend your time doing.
2) Identify who you can offload them to.  If you don't have anyone to offload them to, ask yourself the question, "What would happen if I just didn't do them?"  You'll be surprised at how often nothing of importance would happen if you just quit doing some of the activities you do routinely.  
3) Be prepared to defend your lower level of activity.  You will be bucking the trend of the people around you (and above you).  
4) Demonstrate the value of your new level of productivity by taking on new, more important activities or assignments, being sure to push an equivalent amount of your least important work down to others.

The results will be that you will do less and accomplish more.  You will be clearer minded.  You will be better rested.  Your family will be happier.  Your employees will grow and progress faster which will attract the best talent in your organization.  You will be doing increasingly more strategic and important work which will be rewarding to your career, be you entrepreneur or employee.  You will be having more fun and be happier.  Others will enjoy your company more.  In other words, you will have created a self-reinforcing updraft.

Will you be less efficient?  Yes.  Will you be more effective?  Also yes.  

In one of his early books, Peter Drucker, the great management thinking and writer once said (and I'm paraphrasing), efficiency isn't necessary to create success, it's necessary to sustain it.  To create success we have to be effective.  He characterized the difference between the two by saying efficiency is doing things right.  Effectiveness is doing the right things.

Doing the right things is the key to resetting your workload to a lower but more effective level.    

Don't Bring Me Problems, Bring Me Solutions

| | Comments (0) | TrackBacks (0)
How many times have we heard this fundamental axiom of management?

Here's an alternative approach:

1. Give me a heads up about the problem so i can be thinking about it.
2. Bring some possible suggestions for solutions.  You probably won't have all the data so don't get too attached to any one solution.
3. I'll come up with some ideas, but I probably won't have all the data either so
4. Let's meet and share our ideas and craft a solution together which is much more likely to be more powerful and effective than anything either of us could have come up with alone.

There are two principles at work in this suggestion.

1. One of the fundamental principles of the quality disciplines is that all employees work in a system that they don't own and don't control.  The employees are intimately familiar with the limitations of that system but they are largely powerless to effect any changes.  Managers, who have the authority to change the system, don't work in it and therefore have little visibility into the problems or any visceral sense of the cost or impact of the problems.  It is only through the collaboration of managers and employees that process improvement can take place.  Managers must acknowledge that employees have the information and then work with employees to make the process and systemic changes that produce real improvement.

2. In their excellent and classic little book Getting To Yes Roger Fisher and William Ury show elegantly how two minds together are far more likely to create a more creative outcome than either mind alone, no matter how talented.  By coming together with ideas rather than solutions, a collaborative dynamic is created which will be much more likely to lead to a mutually satisfying outcome.  As soon as one party brings a "solution", a very different dynamic is created in which the manager is much more likely to take a black and white position in response, which often is "That won't work."  End of conversation.  Employee is demotivated, problem is likely to persist.  

Discuss this shift in approach at your next staff meeting.  See what happens.


The Fallacy of Leading by Example

| | Comments (0)
Ask a room full of CEOs if they believe in the principle of "leading by example" and almost every hand will go up.

This is a terrible way to lead.

Let me explain.  Leading by example would be great if the CEO's job was the same as everyone else's.  But it's not.

To illustrate the point, in my speeches to CEOs, I commonly pose the following question: "Let's say you were to write down everything you do at work hour by hour over a two week period. At the end of that period were you to go through that list applying the following two criteria,
  • I am the only person in the company for whom it is legally, morally, or ethically appropriate to do this task
  • I am the only person in the company who is qualified to do this task,
what percentage of the items on the list would meet these criteria."

The responses average out to about 10%.

Think for a moment about the implications of this number.  First, it means there is a potential 900% increase in your production capacity as CEO doing the work that only the CEO can do sitting on the table.  This is huge.  It's almost an order of magnitude.  If you were to apply even half that capacity to moving your business forward strategically, would it transform you business?  If you were to apply the other half to your family and personal pursuits would it transform your life?

I doesn't take a rocket scientist to see that the answer to both questions is a resounding "yes".  

But no, most CEOs are too busy doing things that other people could and should be doing to transform either.  Why?  Among other things, the legacy of lead by example.  

We are taught as we come up in business that if we aren't being busy, busy, busy, our employees will get the message that it's OK to slack off.  Actually, like most myths, there is some truth to this.  Leaders live in a fishbowl.  However, there are a number of assumptions embedded in this belief system which need to be scrutinized on order to validate it's truthfulness.  

The most important assumption is the unstated "Absent any other systems of feedback, compensation, communication, and organization designed to align employee self-interest and organizational interests..." then lead by example is about all you have left.  Let's say, for a moment that you did have some of those things.  Let's say you have open books, a robust profit sharing plan, an internal customer feedback system, and active process improvement program in place.  If you did, employees wouldn't need a CEO shooting around like an unguided missile in order to feel like they needed to stay busy and productive.  In fact, all the above are far more effective aligners of employee interest than making them feel like they have to keep up the pace set by the CEO.

This brings us back to the point that the CEOs job is different than everyone else's.  I've often posed the question to CEOs, "When was the last time you walked into your office, put your feet up on your desk and spent two hours with your nose in a good business book?"  The usual answer is a blank look like I'm speaking in tongues.  

The traditional model of leading by example not only robs the leader of time to enrich his/her life and family relationships, robs the business of the strategic momentum the leader could and should be bringing, but it stunts the growth of every employee who should be doing the tasks the CEO is doing.  This robs the organization of leverage now, and the experience the employee does not gain will cost the organization lost dividends and opportunities for all time. 

Max Depree, former chairman of Herman Miller, wrote a wonderful little book called, Leadership is an Art.  He starts his story by saying "The first responsibility of a leader is to define reality.  The last is to say thank you." 

Who else but the CEO is empowered to define reality?  Is the assistant mail room clerk going to come into your office with a detailed strategic vision for the company for the next ten years?  Is this something you can slap together between a staff meeting with marketing, returning six phone calls, answering 32 emails and your meeting with the bank in ten minutes?

No.  Defining reality takes time, it takes thought.  It takes a steady stream of information about how the world is changing around you.  What are the implications of social media on your business?  Myspace gets more daily traffic now than Google.  There are online multiplayer games with 110 million members worldwide.  This may be relevant to your business or it may not, but it is data you can't ignore if you expect to have a handle on the business landscape.  Do you understand where technology is headed, do you have a feel for what's happing in education and training, do you understand how marketing and advertising are being transformed by Web 2.0?  These are just a few of the broadest examples of fundamental sea changes that are happening in the business ecosystem as we speak.  It's virtually a given there are equivalent changes afoot in your industry and marketplace.  If that isn't enough, the very fundamentals of leadership and management as we have known it are undergoing profound change.    

The CEO's job is to be the over-the-horizon radar for the company, to be looking for strategic opportunities, making sure your people, organization and resource base are ready to adapt quickly to changes in the economy, the marketplace, your industry.  The great English banker Baron Rothschild once said, "The time to invest is when blood is running in the streets."  When the world is changing as fast as ours, it is running in the streets somewhere.  Those streets may be yours.  Right now, entire new industries are hatching, others are on the downslope to oblivion.  If you are staying busy, busy, busy doing things that other people could and should be doing, your corner of the forest may be on fire and you may not even realize it, buried in the trees as you likely are.

If you have built an effective organization, your employees will want you to be reading, meeting with industry experts, going to conferences, gazing into your crystal ball, getting educated, exploring new technologies.  Their ability to make their house payments depends on it.  It will take some time to bring your people up to speed so you can offload your non-essential responsibilities on to them.  It will take some communication with and explanation to help your employees understand this shift in your behavior.  Once they understand, the odds are excellent that they will be enthusiastically supportive, particularly if you keep them informed about what you are seeing and learning.  You'll have lots of material for your blog on your company intranet.  Don't have an intranet yet?  Don't have a blog yet?  

I rest my case.
Lanny Goodman, CEO
Management
Technologies Inc.

414 1/2 Central Ave SE
Suite 4
Albuquerque NM 87102
(505) 884-7300

About this Archive

This page is a archive of recent entries in the Leadership category.

Innovation is the previous category.

Management is the next category.

Find recent content on the main index or look in the archives to find all content.

Pages