Leadership Challenge on the Horizon

In the Monday, November 16th, WSJ there is an article entitled Businesses Mount Efforts to Retain Valued Employees. The gist of the article is that there is the potential for significant turnover and job-hopping in the labor market as the economy slowly recovers. Many employees have "stayed put," tied to their present company due to the severe economic downturn. In fact, the article states that fewer US workers quit their jobs since the DOL started tracking this data in 2000.



As the economy improves, it remains to be seen what the job outlook will be. Some economists have spoken of a "jobless recovery." Almost certainly, some hiring will begin to pick up in some sectors. As this happens, many employees are going to be enticed to test the waters in the job market.



Adversity can make individuals and organizations stronger -- depending upon how they handle it -- or it can take them down. To some degree, companies will be judged by how they treated their employees during adverse conditions. Employees that did not have options during the recession, but believe that their companies didn't sufficiently take care of them or keep them in the loop are going to "vote with their feet."



Communication is critical during difficult times and leaders need to be out in front of their people actively communicating and actively listening to their workforce. One company mentioned in the article scheduled employee breakfast sessions with senior leadership to open an effective dialogue.

Leaders of cash-strapped companies may look to alternatives to traditional compensation to demonstrate that they value their employees. Again, employees are watching and they will remember. Alternative work schedules, telework, career development planning, greater employee involvement in decision-making and recognition programs are all ways that leaders can build and maintain employee engagement.

Money is a basic need, but if a company can keep their compensation within the neighborhood of the going rates, leaders can use non-monetary tools to engage and retain their valued employees. While the WSJ article quotes a study that indicated workers care more about the cash and managers assume organizational culture and employee-boss relationships are paramount, I tend to believe that once a basic monetary threshold is met, culture and workplace climate are huge. When leaders build a culture that employees buy into and become passionate about, they look forward to coming to work and are proud to be part of something special. As Ray Davis plainly states, this passion starts at the top and it's the leader's job to infuse it throughout the organization.

When employees get energized and excited about their work - truly passionate - and they are given freedom within established boundaries, great things can happen. Again, it's the leader that sets the tone.

Companies that understand valuing employees is something that you practice every day down in the trenches and not just slogans that are chanted are in a good position to retain their top performers. For companies who, through their actions, have not valued their employees, it may be time to start ramping up their idle recruiting programs!

Execution

In The Leader of the Future 2, Joseph Maciariello speaks of a "spirit of performance" that focuses on doing the right thing and getting the right things done. Getting things done is about execution. Effective execution requires leaders to employ steadfastness, follow through, a sense of urgency, as well as the ability to make fine-tuning adjustments - appropriate course corrections - along the way.

In Winning, Jack Welch explains that you can have passion, energize others, make difficult decisions, have great people, but "the results stink." That is because effective execution is missing. Welch describes execution the ability to "put decisions into action and push them forward to completion, through resistence, chaos, or unexpected obstacles."

One of themes that seems to be in common with the Gerstner and Davis books is the importance of execution.

Lou Gerster, in Who Says Elephants Can't Dance, defines execution as "getting the task done, making it happen." He refers to execution as the most undervalued quality of leaders. He explains that most business strategies are not revolutionary or unique. What separates the best companies from the rest of the pack is their ability to execute the strategies. Gerstner asserts that execution is successfully played out day-in and day-out in the course of business activities. He also believes that what gets done is what gets measured or inspected - accountability.

Ray Davis says that one of the key attributes of successful growth companies is their ability to execute their strategies precisely. In Leading for Growth, he speaks of the necessity of discipline and that organizational discipline starts with the senior leader. Discipline allows the organization to aggressively pursue their strategy. Davis speaks of the messages that the leader must send and the cues that employees will take. If a leader has poor follow through on strategy and change initiatives, employees will become jaded and view such efforts as the latest "flavor of the month." Leaders that cause and reinforce a "this too shall pass" attitude are undermining their organization's effectiveness and potential.

In their book, Execution, Bossidy and Charan state that some leaders make the mistake of delegating execution. They argue that execution is not just a tactic, but a discipline that must be built into the organization's culture and the leader must be out in front leading the effort to instill execution in the organization's DNA. As Gerstner similarly explained, Bossidy and Charan believe that an execution culture enables the organization to have competitive advantage.

In thinking about execution in business, a sports analogy seems fitting: a football coach can draw up the most effective play ever created, but if his team cannot execute the play properly the team will not be able to put points on the scoreboard! It takes practice, discipline, learning, team focus, sychronized effort and dogged determination to execute the play successfully and push the ball across the goal line.

Transformational Small Business Leadership

I came across an interesting article the other day while surfacing the internet. Although it's a couple of years old, I found it to be very thought-provoking.

In the September 2007 article on americanexecutive.com entitled Creative Office Environments: The Future of Work, Bob Delille made some comments about his company that I found really interesting and very insightful.

I know Bob Delille, as he is a former basketball and tennis buddy. While I don't know him in a work setting, I do know of his character and his competitive nature. He likes to win (with class). Louis Gerstner's comments in Elephants about beating the competition and wanting to win remind me of Bob.

Back to the article -- Bob had an outside firm survey Creative's customers to find out their perceptions of Creative Office Environments. The survey found that customers believed that Creative was a great provider of products and services. For many leaders, they would be quite satisfied with these results. Bob was dismayed. He believed that being perceived as a great provider of products and services was a sure-fire way to be "commoditized right out of business."

Bob went on to say that his vision for Creative was to be viewed as a creative problem solver in meeting customers' office furnishing needs. At that point, Bob decided to build his company's business around creativity and innovation believing that intellectual capital was his long-term competitive advantage. I found this to be so cool and indicative of the principled, visionary leader that I believe Bob Delille to be. To successfully make this strategic shift in focus requires a change in how you view your employees' talents, how you develop them and how you set their expectations and how you motivate them - all requiring leadership from the top.

The article also speaks of a strategic shift in focus for the company that builds on Creative employees' ability to integrate technology and furnishings for comprehensive workplace solutions. To me, this was almost reminiscent of Gerstner's recognition that IBM had a unique capability to provide IT integration services. Creative employees are no longer narrowly viewed as salespersons or installers - they are innovators, integrators and problem solvers. The company is re-branding to be seen as experts in the "future of work."

At Creative, Bob led changes in their workplace and organizational culture to support his vision for the company. The article is a great example of a small business leader who has led his company through transformational change.

As listed on the company's web site, the organizational values are:

• Family
• Being the Best
• Hard Work
• Passion
• Trust/Relationships
• Growth

Having known Bob, I know that these values are his values and I absolutely know that he walks the talk. It's not an accident that "family" is at the top of the list. I also note the presence of "passion" on the list - the attribute that Gerstner spoke of in Elephants as being so important to success as a leader.

Great stuff and the insight of needing to move from a great provider of products to a provider of innovative solutions (capabilities-based business) strikes a cord with me.

Creative Office Environments article:

http://www.americanexecutive.com/index.php?option=com_content&task=view&id=5964

Creative's web site:

http://www.creative-va.com/

Leadership in a Chaotic Marketplace

In the October 21 Wall Street Journal, there were a number of articles centered around the dynamic environment in the information technology industry. In an industry where innovations and change can occur at break neck speed, many companies are struggling to stay ahead of the power curve and trying to figure out products, financial models and pricing structures that will prove successful in the future.

Yahoo Inc's Chief Executive, Carol Bartz has struggled with reduced ad revenue and has focused on cutting costs across the board in an effort to stabilize the company. The WSJ article spoke of Bartz leading Yahoo through change such as implementing a home page on one technology platform. (for the record, I had Yahoo as my home page for years, but I can't stand the look, feel and intrusiveness of Yahoo's new page, so I moved to MSN recently).

In the same WSJ edition, there is an article about a desire among some internet service providers to move to a pricing structure that charges customers based on usage as opposed to the current flat rate model.

Yet another article speaks of Sun Microsystems problems and planned layoff of up to 3,000 workers. The article talks of a potential takeover by Larry Ellison and Oracle Corporation. On the technology innovation side, an article speaks of Barnes & Noble's release of a new electronic book reader. In another recent WSJ article, the financial troubles of the print newspaper industry was detailed - driven largely by the real-time availability of news and information a point and click away on the internet. And of course e-business has exploded.

All these articles underscore the volatile and dynamic environment of the information technology industry and the rapid pace of change. The challenge for CEOs and other senior leaders is how they can get their companies out in front of the power curve to lead the innovation and change rather than be steam-rolled by it. To stay in front, leaders need to form a vision of the future and be willing to take calculated risks. Only the agile will survive.

In "Who Says Elephants Can't Dance," Lou Gerstner showed that an IT executive does not have to necessarily be a super technologist to be a successful leader. Foremost, Gerstner was a superior businessman, decisive and customer-centered. Secondly, he surrounded himself with a select number of very bright, capable people who could help him lead the necessary change. He was willing to make difficult decisions that would be hard for some stakeholders to accept but that were ultimately what was best for IBM. One very "slick" risk that Gerstner took was the decision to sell IBM's component technology, even to competitors. He reasoning, in part, was that by having other companies incorporate IBM components into their products, IBM could ultimately influence future industry standards (to IBM's benefit). This was a very smart way to shape the future and get ahead of the curve.

Today's leaders in the information technology industry must be especially good at recognizing the evolution of technology, the possibilities it presents, and assessing consumers' and business's openness to accepting the cascading of new products and capabilities. This is a challenge because many do not want to be in a constant state of "upgrade mode."

Today's environment, in my opinion, provides many opportunities for creative partnerships and leaders must be open to such arrangements. Probably most importantly, IT leaders must create organizational cultures that embrace and value the rapid pace of change. Additionally, continuous learning and support of risk-taking are critical. This is not an industry where the recipe for Campbell's Tomato Soup can endure for decades upon decades unchanged!

Cultural Chaos?

I read with passing interest a recent article in the Wall Street Journal regarding the Chrysler Group LLC preparing for bad news about its September sales (Chrysler Faces Chilly Autumn, September 15th).

I didn't think much about the article at first, truthfully. Yes, Chrysler is in extremis and needed US government help to navigate through a bankruptcy that was filed on April 30, 2009. Yes, America's number three car-maker has been struggling for some time and it's leaders are now fighting for the company's survival.

I re-read the article and it dawned on me an additional daunting leadership challenge Chrysler faces - one related to organizational culture. Chrysler was recently purchased by Fiat of Italy and is now led by Italian CEO Sergio Marchionne. It struck me how dramatic the changes have been at Chrysler over the past several decades - changes that undoubtedly have had major impacts on the culture of the company.

Chrysler has a long history going back to its founding in 1925. Everyone knows of the turnaround Chrysler made under Lee Iacocca in the 1980's.

From 1998 to 2007, the company was part of the German firm DaimlerChrysler AG. And now in 2009, it is part of an Italian ownership team. When you think about it, these dramatic changes almost certainly have to generate significant changes in the organizational culture of Chrysler. Beyond the typical cultural changes inherent in a changing of CEO's, the added dynamic of differing country cultures is at play. This company, in crisis, has gone from the leadership of an American icon, to leadership from a German company to now an Italian company. These changes couldn't have come easily.

Senior leaders must be skilled at change management and establishing a vision for the new company, absolutely. I would submit that senior leaders must exhibit cultural intelligence to understand the differences between the American and Italian cultures. Perhaps Chrysler workforce has become used to such changes and is very adaptable. From another article in the WSJ, it appears that the new CEO is finding out that his engineering and management talent has been thinned out due to attrition over the past several years. Instead, perhaps, many of Chrysler's employees have decided to get off the merry-go-round.

Chrysler's web site does speak to the existence of a "Global Diversity Council" comprised of senior leaders, so the company may in fact be actively working the cultural challenges.

As the world becomes a smaller place and companies become increasingly global - in reach and in leadership composition - cultural intelligence and a keen understanding of diversity are critical skills that senior leaders of the future must possess. Without the proper leadership and insight, country cultures and ways of doing business will clash. Good leaders recognize these challenges, build upon the strengths and differences of country cultures. With their hands on the steering wheel, they can navigate their companies through the obstacle course that cultural diversity can sometimes seemingly present.

Chrysler LLC:

http://www.chryslergroupllc.com/en/about_us/our_team/?name=

Leadership in Academia

The Richmond Times-Dispatch had an interesting article in the October 4th Commentary Section. The article, entitled "University Presidents Need Integrity, Passion and Endurance," speaks of the leadership traits that are desirable for college presidents. It is written by Charles F. Bryan, Jr., who recently aided the search committee for the Hampden-Sydney College president vacancy.

Bryan suggests the following key traits:

• Integrity


• Self-confidence without arrogance


• Listening and learning skills


• Decision-making ability


• Passion for the job


• Endurance


• Effective communication skills

It is interesting to note that the first trait that Bryan lists is integrity. Honesty was identified in the research by Kouzes and Posner as the characteristic people most admire in their leaders. Integrity and honesty are related but not one in the same. John Wooden argued in one of his books that the difference was clear - bank robbers could be honest (tell the truth) but that doesn't mean they have integrity!

In discussing "listening and learning skills," the RTD article quotes one university president who suggests the university leader is an "anthropologist learning the tribal customs." I thought this was a great comment given the article in "Leaders of the Future 2" by Schein where he suggests that leaders need to "think like an anthropologist" because of their responsibility to create and manage the culture of their organization.

Bryan quotes the UR president, Ed Ayers, as saying "universities are all about learning and those who head them should never stop learning." Indeed, all leaders should seek to increase their tool kits and broaden their perspectives. Our readings in HRM 638U make it clear that organizations must foster cultures of learning as a business necessity and survival strategy. I absolutely believe this. As a personal goal, I am going to try to reflect at the end of each work week on the question "what did I learn this week."

The trait of endurance also resonated with me. The article makes the point that university presidents must have the endurance of an athlete because of the long hours and demanding schedule. While the article doesn't make this point, I would say that endurance is also important in terms of the staying power and steadfastness that leaders need to see critical long term goals through to fruition - this is not typically done with a "sprint race."

Communication skills come into play with the vision and the article speaks to the need to inspire and motivate others to get behind the vision.

Managing/leading diversity is not mentioned anywhere in the article. I believe this is a necessary skill for any leader. Business Acumin is different than fund-raising and I could see where all university presidents must have significant business skill in order to lead a multi-million dollar enterprise.

The author of the RTD article states that fund-raising ability was purposely left off the list because if the president possesses the other attributes he will be able to successfully carry out the fund-raising duties. I am not sure I totally buy that. To turn it around, I wonder how often universities go after a particular candidate because of their superior fund-raising experience without paying attention to all of the qualities that made the list above. Bet it happens!

Attributes a few college search committees have identified:

http://www.austincollege.edu/NewsDetail.asp?NewsID=1506&ItemID=6318

http://www.iue.edu/chancellorsearch/description.php

Leadership in the Community

One of the neat things about the blog assignment is that it causes you to widen your view on stellar leadership examples in business, government, the community and elsewhere. We're on the lookout!!

In The Leader of the Future 2 (great book by the way), Brian O'Connell writes that Peter Drucker said that religious leaders were among the very best leaders in the U.S. In the same book, John Mroz talks about the imbedded leaders that are all around us.

I was struck by a video interview with Calvin Duncan, a religious leader in the Richmond area. Duncan is a former guard with the VCU Rams who is in the VCU Hall of Fame. I would call him an "imbedded leader." Duncan was orphined at an early age and was raised by his grandmother in a rough area in New Jersey. As a basketball player, he was a top 50 high school senior. He later was captain of the VCU team that finished the season ranked 11th in the nation in 1985 and knocked off an excellent Northeastern team in the NCAA tourny led by Reggie Lewis. He earned his degree and was subsequently chosen as a third round pick of the Chicago Bulls, but chose a different path than the NBA.

I was at VCU during Duncan's tenure. It was not unusual to see him around campus and he always had an entourage. The guy had charisma. At the time, I thought he carried himself with class and it's really neat to see the leadership role he now has in the community.

Here is the video:

http://www.vcuramnation.com/2009/10/ram-nation-sits-down-with-vcu-hall-of-famer-calvin-duncan/

(it is well worth the 9 1/2 minute time investment)

A couple of comments that Duncan made really resonated with me. I don't know if they are original to him, but they are thought-provoking nonetheless. Here they are:

"Your attitude will determine your altitude."

Paraphrasing: A "successful person" - the focus is on self - individual accomplishments. A "significant person" - is marked by the impact he/she has on others.

When I reflect on these statements, I think that they speak volumes to the potential leaders have with their constituents, whether it be in corporate America or the community. How often do we observe leaders who are self-absorbed and proud of their individual accomplishments? Yet the true mark of a leader is the impact he or she makes on others. And the attitude part of the equation should not be underestimated. As a leader, your attitude drives your behavior and employees in the workplace are absolutely attuned to the leader's attitude.

Significant leaders do the following:

• carry out their activities with character and integrity
• truly care about their employees'/constituents' well-being
• support individuals' personal and professional development
• help individual's achieve their potential

Duncan could have become intoxicated with fame and fortune, but the guy is incredibly grounded. There is much to learn from this community leader. There are too few Calvin Duncan's in this world. One can't listen to the video clip without coming away with an admiration for his attitude, conviction and leadership qualities.

Duncan's current ministry: http://www.faithandfamilychurch.org/pastorbios.html