Tag Archives: OrgDev

Delegating By Degrees is Effective Leadership

In advising private businesses, I am frequently trying to help owners delegate more effectively to their teams. It is hard to get the executives to give up making all the decisions. Making fewer decisions is part of the challenge; influencing less decisions is even harder.

Sergio Zyman, the former Chief Marketing Officer at Coca-Cola, in his book “The End of Marketing As We Know It,” wrote about the decision making process he used with his team, broken down into 5 levels:

  • Level 1 – His decision with no input from the team
  • Level 2 – His decision with input from the team
  • Level 3 – Consensus decision
  • Level 4 – A team member’s decision with his input
  • Level 5 – A team member’s decision with no input or influence from him

When other organizations have experimented with processes similar to Zyman’s, some employees found the five level decision making process difficult. Others perceived it as freeing because the knew in advance what was required to keep an initiative going.

Many organizations have a disproportionate number of Level 2 and Level 3 decisions. Level 5 is the least common. A critical success factor seems to be selectively choosing what to care about (not to be confused with apathy.) The evolution needs to be towards a focus on being involved personally only in decisions that are strategic in nature and require knowledge or experience unique to your role. What is likely to ensue is a new paradigm in which the executive’s willingness to let go creates unexpected, but still very positive outcomes. It may not look the way it would have with your hand print, but can still “work out.”

 

 

How To Grow Business All the Time

 

Whether your trade is producing software, computing tax liabilities, or manufacturing tangible goods, the success of your organization is going to be tied to strong sales (business development/ “bizdev”) performance over the long haul. Yet, few organizations are able to create a bizdev model that is sustainable and that constantly fuels the capital needs of the enterprise. Bizdev, however, is something that far too many senior executives (or, business owners in the SMB world) think must be acquired through osmosis or tenure. While I don’t actually believe that they think that, their actions would indicate otherwise.

Virtually everyone in North America has had a frustrating experience with bad sales execution. Either one has been on the end of trying to convince someone to buy, or the other end where we hate to be the recipient of “sales.” There’s much wrong with the selling models that are so pervasive that negative experiences abound on both sides of the equation.

Mahan Khalsa, who led the Sales Performance Group at FranklinCovey for a number of years, is one of my favorite authors on the subject of business development. His background included developing instruction for one of the old Big Eight CPA firms, then turning his attention to training almost 100,000 salespeople and consultants from all over the place in many different verticals.

Khalsa says, “Most professional sellers have good intent. They know manipulation and deceit hurt rather than build long-term sales success. They know that building trust is essential to both creating and capturing value. So they eliminate a lot of what would otherwise be dysfunctional—no surprise there. Yet most also consistently engage in actions that are not value adding–for them or for their customers. Even when great intent is present, there is a lot of room for improvement in eliminating dysfunctional behaviors.”

Both Khalsa and Neil Rackham find the tendency to jump to solutions before having completed the questioning process to be the bane of many folks involved in bizdev. I have observed noted rainmakers stumble in prospect meetings over this very subject. It’s as though the brain clicks into autopilot and, rather than seeking to understand, hubris takes over and the rainmaker is intent on being understood. Often, the solution that is recommended is premature–it doesn’t bear the wisdom of listening and consultative due diligence.

“Looking a little more holistically we could say the missing link is the ability to successfully blend excellent inquiry with excellent advocacy – to do a superb job of matching our story to the client’s story. Good inquiry is essential and most often the more undeveloped portion of the balance – and it is still only part of the equation. I’ve seen people get good at inquiry and still not be able to convert on advocacy.” (Khalsa)

When Khalsa left FranklinCovey, part of his intent was to transform the way business developers approach their work. He felt there was room for continuous improvement over an entire career. To that end, he began to wed together the twin concepts of business development and change management, with a sprinkling of performance measurement. In order to see strong long-term results, he argues, there must be an environment supportive of continuous improvement and a repeatable process that can be practiced and refined. 

Edward Deming once said, “It is not enough to do your best. You need to know what to do and then do your best.” So the quality of the practice and application is as important as the quantity of practice – and the quantity is essential. Khalsa subscribes to this concept as it relates to bizdev, stating “What I find liberating and motivating about the research is that everything, repeat everything, we need to do in order to get really good at sales is learnable – if we are willing to practice. It doesn’t have to do with our DNA, our native IQ, our personality type or social style, our years of experience. If we are willing to engage in a high number of repetitions of quality practice we can become as great as we want to be. That’s powerful.”

A key factor in effective bizdev is the ability to build a trusted relationship with the other party. Khalsa firmly believes that trust can be built intentionally and that it is tied strongly to value and information flow. In fact, he would argue that anyone who has two can obtain the third. Fundamentally, a rainmaker will have to become consistently better at doing what is promised and establishing a culture where the other party feels safe to share meaningful information.

 

Resilient Leadership Anticipates Challenge

Leadership is full of challenges. It’s not so much whether problems will crop up, but how the leader responds. The ability to push through and come out on top is a hallmark of a resilient leader. Claudio Morelli, Superintendent/CEO of the Burnaby School District in British Columbia, thinks the ability to maintain resiliency is defined by elasticity, bend, stretch and not “breaking” during challenging situations:

All organizations encounter challenges, issues and difficulties everyday including financial shortfalls, downsizing, increased workloads, and succession issues. These challenges force the organization to turn inward and look at itself and its effectiveness. It is a time to regroup and assess where the organization stands.

If the organization embeds and nurtures a culture based on mutual trust and where all members of the organization strive to be trustworthy and treat one another with respect and caring, then you have a solid foundation to deal with the challenges and issues you face. But where do you begin? It begins with a focus on people and building/enhancing positive relationships.

Most people want to be part of the solution. They would like to have a sense that their ideas are heard, not necessarily accepted, but considered with some action taken. They want to be part of the team, participating, engaging and solving some of the challenges.

Inclusive leadership involves followers and teams. It engages the hearts, minds, and wills so that resiliency is imparted into the work group. 

Morelli’s 6 Steps to Lead When Facing Challenges

  • Make personal connections
  • Build important relationships
  • Interact face to face when possible
  • Be open, transparent and authentic
  • Model integrity with the right intent
  • Act on feedback and deliver results

When a leader takes the time to connect on a personal basis with followers, it demonstrates care and concern in something more than the task at hand. The investment of time in getting to know others pays off in multiple ways, not the least of which is learning about talents and interests that may lie beneath the surface. In the realm of human resources, the term “high potential” is used to identify those who strategically merit the attention of an organization’s leaders. Talent management is not the only reason to build strategic relationships…clients, key vendors, referral partners all are worth the effort to go deeper, beyond superficial workplace conversations.

The types and frequency of interactions are important in preparing a support structure to succeed in the face of challenge. Whenever possible, open up to those with whom you are working to build strategic relationships. Become more vulnerable, let them know what concerns you have, admit when you don’t have a solution and elicit the help of others.

Getting into the habit of acting with complete integrity is helpful in setting a good example, establishing an expectation, and creating a culture of trust. When others within the organization (or strategic relationships outside it) offer constructive input, be gracious. Listen, then act on what has been shared and communicate back the outcome(s) of implementing the advised course of action.

These leadership practices will enable your organization to withstand challenges through better collaboration and increased resiliency.

Add Value to Your Privately Owned Business

Most corporate governance articles, presentations, and conferences are focused on publicly owned businesses. With corporate and executive scandals galore occurring over the past few years, there have been outcries for better controls, systems, and oversight guidelines. Yet, the same emphasis and attention is grossly lacking in the privately owned business community. One of the areas in which governance best practices could be applied is in the realm of mergers and acquisitions. Nick Miller of Clayton Utz law firm in Australia offers some insights below for this unique situation:

Increasing the level of formal governance can assist in reducing risk, identifying issues that might emerge upon a sale and generally enhancing the credibility with which the business presents itself to potential buyers. Perhaps even more powerfully, governance is a means by which, both in fact and in perception, a business can present as less dependent on the involvement of its founders than it would without governance. This can add very significantly to value.

Many private business owners think that the absence of governance procedures makes them more flexible, more adaptable and more opportunistic. That may be so, but the benefits of that should be weighed against the benefits of formal governance when planning a sale. 

There are a range of ways to adopt some greater formality in governance:

  • without changing the make up of the board of a company, the company could implement a more structured system of monthly meetings. These may or may not be formal board meetings, but should nonetheless involve the directors and those who report into the CEO;
  • a company can set up one or more committees. These can be formal board committees or more informal, but they are set up to address areas of need, to bring in expertise and focus on how risk management can be improved and issues for the business addressed. Examples are an audit and risk committee, a brand development committee and an employee policies committee, to assist in developing those aspects of the business in readiness for sale. These committees might have outsiders on them and they might not, depending upon the need and the expertise available in the business;
  • an advisory board could be established. Properly structured, members of an advisory board will not carry director duties and liabilities and this can be a sensible stepping stone towards a more fully independent board;
  • one or more outsiders can be brought onto the board. This can be very beneficial, but it needs to be right for the business; and
  • governance can also be improved by developing appropriate governance policies and procedures.

Corporate buyers and private equity see many poorly organised privately‑owned businesses. They will take the opportunity to highlight the possible risks to them in undertaking an acquisition of a poorly organized or more risky business. Some investment in governance can dispel most of these apprehensions, and allow private business owners to defend the level of risk in the business and so achieve higher value for a seller. Nonetheless, formal governance should be introduced carefully, to ensure the owner’s ability to drive and control the business is not unduly impeded.

In summary, shareholder value is enhanced in privately owned businesses through better corporate governance. Opinions of value are enhanced by checks and balances, independent processes, and a decreased dependence on the founder(s). Make the necessary adjustments to your business. You will make better decisions, increase the market value of the business, and create an environment wherein others can grow in their roles and responsibilities.

 

It’s the Emotions, Stupid!

 

Have you ever seen a scenario like the following play out? Someone new joins the company. After the newness wears off, the new hire finds someone with whom he can identify and begins “sharing” concerns about the workplace. The things he brings up, purportedly, are meant to help. After a while, the observations being offered shift from seemingly inane to almost accusatory about other members of the team. Eventually, the newbie may feel emboldened to make suggestions about hiring, firing, and everything in between as though having the authority and credibility to make such changes.

Over time, the positive culture in your department or broader category begins to turn negative at times. Other staff members come to you as a manager and let you know that they, too, have been approached by the newbie with complaints.  At this point, it is not uncommon for us to feel embarrassed, frustrated, or angry about what’s happening. We can become justifiably fearful that one person is poisoning many others. Like a contagious disease, negativity can soon permeate an organization if unchecked.

Even when organizational performance is sky high, a pervasive negative attitude can sap your group of the energy needed to sustain success. Emotions are an important part of the workplace–on both good and bad ways. Many of us have been victims of horrid customer service from employees of organizations who clearly do not enjoy what they do for a living. Contrastingly, we all hopefully have had the experience of a “Ritz Carlton” type experience where the employee loves serving customers.

Tony Schwartz, writing for the Harvard Business Review Blog Network, decided to let go of (just such a) negative executive, “both because he’d lost the trust of our team, and because I didn’t believe he was capable of changing. The day I made the move, it was as if a cloud had lifted and the sun came back out.”

Lessons Schwartz took away from this experience:

  • The emotions people bring to work are as important as their cognitive skills, and especially so for leaders.
  • Because it’s not possible to check our emotions at the door when we get to work — even when that’s expected — it pays to be aware of what we’re feeling in any given moment. You can’t change what you don’t notice.
  • Negative emotions spread fast and they’re highly toxic. The problem with the executive we let go was not that he was critical, but rather that he was so singularly focused on what was wrong that he lost sight of the bigger picture, including his own negative impact on others.
  • Authenticity matters because you can’t fake positivity for long. It is possible to put on a “game face” — to say you’re feeling one way when you’re actually feeling another — but the truth will ultimately reveal itself in your facial, vocal, and postural cues. We must learn to monitor and manage our moods.
  • The key to balancing realism and optimism is to embrace the paradox of realistic optimism. Practically, that means having the faith to tell the most hopeful and empowering story possible in any given situation, but also the willingness to confront difficult facts as they arise and deal with them directly.

In working with organizations on development issues and advising them on strategy, I have found that emotions are often the elephant in the room, undiscussed but omnipresent. For this reason, I often lead workshops on the topic of emotional intelligence (EQ).  When it comes to high potential leaders, EQ mentoring can help change behaviors and create a more healthy environment in which better decisions are likely to be made.