Best Practice Series – The Essentiality of Leadership

This article continues the discussion of how to create high, sustained levels of engagement by those that comprise an organization.  Here, we discuss what true leadership is, the behaviors that comprise it, and how effective leadership is an essential, must-have, management Best Practice for a sustained, high-performance organization.  Topics include:

• Research validation of leadership
• The 6 leadership attributes of high performance companies.
• How a leader leads

Previous discussion of the essentiality of engagement for generating a Best Practice organization demonstrated its dependence on effective, true leadership.  So how does leadership generate engagement?  Are there specific aspects of varying leadership methods and styles that lead to high, sustained levels of engagement?

Research Validation of Leadership

The short answer is “yes.”  Among the most unambiguous research on the relationship between leadership, engagement and sustained high performance is work done over many years by the leading consulting firm, McKinsey & Company.  This research, discussed in two papers^{15, 16} clearly validates this powerful connection.  There are three critical management Best Practices validated by this research.  Each of these practices, on its own, leads to a clear outcome or result to enhance the effectiveness of the organization.

However, put together, each interacts, reinforces and strengthens the others in a synergistic way to substantially increase the power of their effect.  These three Best Practices are:

• Clear roles – this means that everyone, not just a few, but everyone has a very clear understanding of what they are working toward,  the vision that drives the whole organization, as well as its specific aspect in their work area.  They know what is expected of them – when they are making good progress and when not – and on their own, not by “checking with the boss” every five minutes.

In this context, a person knows what skills can be enhanced to good work result effect, and which may be irrelevant.  He/she can prioritize time allocations in a way that makes sense and supports high performance levels.

• Inspiring vision – in the presence of effective leadership, the key message of what the vision for the organization IS, not just from the ‘top” but throughout the organization, at every level, there is alignment between the vision’s details in their work areas, and what people are doing.  A powerful vision moves people beyond “motivation” and “incentives” to inspiration – activity that gives meaning to their life.  A compelling vision is a good answer to the question of “what are we giving our life for?”
• Open, trusting culture – people cannot function effectively if they have to constantly second-guess what they say and do, fearful for reprisals, insults, reprimands, or punishment.  If their co workers are scheming for their jobs, or there is withholding of information to strengthen personal power positions, there will be a severely blocked flow of information, communication and collaboration that is essential to high performance.

Put another way – an open, trusting work environment eliminates all of the thought, time and energy that has to be devoted to simply protecting one’s self, to second-guessing, gossiping, the grapevine (always vigorous in dysfunctional cultures), and jockeying for power.  This time and energy can then be devoted to the value-added tasks at hand, that advance the individual effort, work team, and organization towards its vision.  Other efforts simply go in a circle, in effect, degrading forward progress.

The 7 Attributes of Leadership

There are many ways to look at, describe, and otherwise convey the idea of leadership.  In the context of Best Practices, we can focus on those characteristics that have been found in research with hundreds of companies to be key factors in generating sustained, high levels of performance.

Leadership in politics, sports, religion or other areas have other aspects and characteristics in those contexts.  Here, we focus on behaviors by leaders at every level in these high-performance companies.  This research has identified and validated these attributes:

1. Driven by Leaders – There is usually an “unreasonable” aspect to goals and targets that are set by these highly effective, visionary leaders.  It is important to understand that these goals are not completely unreasonable.  They do require, though, real focus, real effort, and for everyone to grow themselves and the organization in the process.  The word “challenge” applies here.
2. If goals are perceived as unattainable, most of us give up before we even start.  So there is a delicate balance between pushing too far out, and not far enough to stretch for.
3. Vision Driven – these leaders consistently, repeatedly articulate a compelling vision of the future – what “there” looks like – around which strategies, tactics, improved management processes, systems and actions can be focused.
4. Highly performance-driven environment – these leaders create a strong, intensely focused, energized work environment – focused on results.  In this context, clear roles and high levels of accountability come into play.  People throughout the company work hard, focused on goals they stretch for, feel accountable for, and that involve some risk taking.  The result is growth – personal, work team/group, and for the company.
5. Simple structures and processes – if the path by which one’s efforts affect movement towards the vision is complex and convoluted, discernment of what and how to do things is harder.  Effective leaders simplify organization structures for clear communication and accountability.  Management processes must be understandable, workable, efficient and reliable to be effective.  Continuous improvements in this area are part of this pattern of high performance as they simplify and standardize processes that provide communication and direction at every level.
6. World-class skills – Effective leaders at these high-performance companies encourage their organizations to not only do many things well, but to become absolutely the best – world-class competence – in at least one major functional area.  There is a consistent focus over time on continuously improving, building skills and expertise at how the company is managed.  These skills and competencies are seen as an essential part of the company’s competitive edge.
7. Strong people systems – There is a clear, consistent focus on performance and motivation, not just assigning people to jobs.  It is understood that placing the best people in the most critical positions, then ensuring that they do well are essential to success.  As a result, there is considerable thought and care put into knowing who the organization’s people are, their strengths, weaknesses, beyond just each manager’s direct reports, but several levels down.  Everyone understands that building a “strong bench” is a top priority.

How a Leader Leads

Having established that having, and being an effective leader is essential for sustained high organization performance, and for engaging its people in the purposes and vision of the organization, the next question may well be “what does a leader do that makes him/her a leader?”  When is a leader leading, and when is he just “managing?”

The behaviors and actions of an effective leader, in the Best Practice generating context fall into two rough categories – personal behavior and communication:

Personal Behavior – Key attributes of effective leadership behavior include:

• Self-knowledge – displays a consistent alignment between what is said, the values articulated and demonstrated in behavior and principles – “Walks the Talk.”
• Takes responsibility – strong leaders step up and take responsibility decisively, displaying courage when things don’t go well or fall short.  Blaming others is a clear sign of weakness, and a lack of courage.
• Leads by example – understands the others “get” what is demonstrated, what is implicit in actual behavior and actions, not just words.  This may involve making a difficult decision in a crisis, or by actions as simple as just punctual, or following up when something is promised.  The leader is very aware that others are observing his/her actions and will pay more attention to the actions than words spoken.
• Integrity – effective leaders display and exemplify honesty and integrity, demand it of themselves and others, not only personally, but in official company actions.
• Creates more leaders – sets processes in motion to empower, strengthen and grow other leaders within the organization at every level.  This is a key measure of leadership effectiveness as it is the only real way to leverage a vision, and insure a sustained level of high performance.  Without it, a popular “leader” may be nothing more than charisma.
• Takes people risks – bets on growth, expansion in assigning people to key roles, and projects.  When a person is assigned a role that is more than they have previously done, there is an implicit statement of confidence that helps people grow and strengthen in their abilities.

Leadership Communication – The communications, the messages generated by a good, effective leader include these characteristics:

• Tells it like it is – realistic, factual, no “mushrooming” – important facts, including bad news, is not sugar-coated or withheld.  This produces a feeling that “we’re all in this boat together.”
• Makes change exciting – reinforces each win to create more wins. As this strength grows, setbacks and failures are easier to take, accept and move on.  A “spirit of adventure” energizes the whole process more exciting.  Key – all improvements are change.  There is no way to improve performance without becoming OK with regular change.

Honda has a somewhat famous annual celebration of the largest project failure during the previous year.  This is obviously occurring in a spirit of fun – generated by the company’s many wins.  Which makes more changes easier, which in turn allows more risk, which in turn….you get the idea.

• Compelling vision communication – this involves:
• Paints a picture – speaks in images, something people can visualize.
• Simple – no jargon.  Clear, unambiguous language is key.
• Repeat, repeat, repeat – the leader must consistently restate the vision message.  It is a thread that runs through every key communication.
• Deal with uncertainty and risk head-on – when risk and uncertainty are articulated up front, this activates the inspirational aspect of challenge in people.
• Uses all mediums of communication – meetings, emails, memos, personal interactions.  The same vision, consistently articulated and conveyed in personal statements in all contexts and situations spreads it throughout the organization.

Leadership then, is clearly distinguished from management, with its emphasis on detailed direction, controls, punishments and reward systems.  The drive to achieve is something that comes from within each of us, and cannot be coerced very effectively.

Finally, while many of us have intuitively believed these ideas for a long time, we now have hard-nosed, empirical research which clearly and emphatically validates that effective leadership is a requirement for sustained high levels of engagement, and that high levels of engagement are a requirement for true, world-class, Best Practices high performance levels.

Best Practice Series – Engagement & Leadership

Summary: 

• Engagement – the “power source” for Best Practices
• Leadership & engagement – one insight source
• Questions to test engagement
• Gallup research linking engagement & high performance.
• Action steps you can take

The 4th Essential Factor on the Path to Best Practices is Leadership and Culture.  However, to understand why leadership is needed in a Best Practice culture one must first address the issue of how, and to what degree, people who comprise the company’s organization are engaged with its goals and objectives.

Here we present some research that clearly supports the close relationship between high levels of engagement and high levels of performance – an essential aspect of the Path to Best Practices.

Engagement – the Power Source

We continue to be amazed at the extent that otherwise sharp and knowledgeable managers of companies express the thought that “what does this have to do with our business?”  There are a group of similar or related thoughts which we hear such as:

• “Our people are engaged of course – if they aren’t they get fired!”
• “Morale – they have a job don’t they?  They should be grateful for it.”
• “Management has its prerogatives – to decide what, and how everyone’s job is to be performed.  It is part of each employee’s job to follow these directions.”
• “We don’t have time for all that airy-fairy stuff.  Our industry is too competitive to allow time for all that mushy junk.”
• “A real leader ‘kicks butt, takes names,’ to get important things done.”

Our favorite version of this line of thinking is “The beatings will continue until morale improves…”  The amazing thing about this attitude is that it reflects the belief in some kind of military-style “discipline” that even the US Army abandoned decades ago – the idea that the leader decides everything, and that it is the job of others to simply “follow orders.”  It assumes that people are so driven by fear that even if they are treated poorly, insulted, demeaned, left out of decisions that affect their lives – that these actions will have no affect on their behavior.

Effective Leadership – Modern Origins

First, let’s demolish the “military efficiency through discipline” notion.    During the Korean war, US Army leadership was faced with a very challenging, difficult combat situation, in the form of terrible weather, difficult terrain, and being simply outnumbered by enemy troops.  A series of studies were done during actual combat operations to try and find out how objectives were being taken, whenever they were.  The discoveries were amazing and illuminating, and included these findings:

• Almost all soldiers (80+%) simply tried to not get killed, just to stay alive, by taking cover, laying low, or even hiding, rather than aggressively pursue the enemy and attain the objective.
• Small groups of dedicated, professional soldiers in each group were actually responsible for taking the objective – be it a hill, fortified installation, or other objective.
• It was abundantly clear that motivation, at an individual level, was a critical problem among the troops.  The average soldier, in terms of our discussion here, was not engaged with the mission.

While it took the US Army a long, long time to fully ingest this information, revise training and thinking, it eventually did so.  First, the curriculum for leadership training was changed considerably.  Then, and only then, could the new thinking work its way into the actual leadership practices and culture (behavior).  By the time the of the Gulf War and Iraq War, the whole way the US Army and US Marine Corp operated had changed.

At the center of this new focus is insuring that each soldier is fully engaged, strongly motivated, even inspired – the very opposite of the “blind obedience to orders” mentality of the old order.

The result of this has been the creation of the most effective, on a man-for-man basis, combat force the world has ever seen.  Mission assignments are given only in general terms to field units, with local commanders and combat teams figuring out the rest as they go forward.  No more micro-managing from the rear headquarters.   And, in this spirit, at meals, the officers wait until the troops have eaten first.

Consider this – if effective leadership can get people to literally risk their lives for something, to risk being killed, wouldn’t it be equally effective or even more so in getting people to work in organizations together for sustained high performance?

Engagement Questions

Now, having read this little story – consider the environment in the companies where you have worked during your career?  A few questions to consider:

• Am I working towards expectations I understand?
• Do I have the resources I need to do a great job?  Or am I handicapped by inadequacies of equipment, materials, or other support?
• Do I have a feeling of excellence?
• Am I acknowledged, recognized or praised when I do well?
• Do I have times when I feel like I just don’t matter here?  Do I sometimes feel like a “cog” in a machine?
• Is anyone interested in my personal and professional growth at work?
• Am I able to express my opinions – and do they contribute or count?
• Is quality work important to my coworkers?

If you are a manager, and have negative answers to these questions, consider the effect you are having on those who you are leading – by your example.  However, if you do, you are not alone.

Engagement & Performance Linked – Research

In a remarkable piece of research, Markus Buckingham at the Gallup organization studied engagement, using question like these, among 8,000 managers at 400 companies, described in First, Break All The Rules. (Marcus Buckingham & Curt Coffman, Simon & Schuster, 1999).  The findings?

• 26% – Engaged – actively working for, support, advance company’s goals.
• 55% – Not engaged – Just coasting; not enrolled, don’t know what is wanted of them.
• 19% – Dis-engaged – Actively working against company’s goals.

What’s going on here?  What are all of these otherwise intelligent, experienced managers missing?  What are their managers missing?

People working what they consider to be well run, successful companies are usually jarred by these numbers – often rejecting them outright – “we’re much better than that.  People here really care about their work.”

But is there a solid, objective basis for these thoughts, or are they wishful thinking?  If no independent, anonymous study has been performed, then the correct answer is “we don’t know; we have no facts on the extent of the actual engagement of our people.”

One of the companies studied was Best Buy.  Its stores are virtual clones of each other, with identical procedures, processes, job descriptions, products, training and assignments.  A few stores in the study dramatically outperformed others.   The connection?  An unusually high degrees of engagement among managers and staff-level employees.  Further investigation uncovered all kinds of small innovations to notice, celebrate and acknowledge people even for small “wins.”  The difference was real, personal-level leadership in every case.

Looping back to our initial observation, it would seem to be a fair statement that the managers of all of the other Best Buy stores probably felt like they were doing a decent job.  But the facts are what they are.  Most, it turns out, are mediocre – even though the organization as a whole does relatively well, thanks to its strategy, systems, training, products and other macro-factors.  But what if ALL of their stores did as well as the best led ones?

Our message here is that the issue of engagement leads to the question of leadership because without effective leadership the level of engagement is low, sometimes very low, as we saw in this research.  (“Leadership” here as distinct from “management.”)  And if the engagement level is low, the probability of a Best Practice culture is equally low.

Action Steps

We suggest that as you return to your work situation, that you consider the research here, questions asked, as they apply to yourself, and to others, and pay attention to the insights that come to you.  Think about how you, and your coworkers might, in this context, feel about making changes in how things are done that might endanger their sense of security (or yours).

If your sense is that “changes are difficult here,” then you are on the right track to understanding what to do to change this pivotal issue – where do we have to start to create a climate where improvements, i.e., Best Practices that will help your company perform better – to become something we consciously and competently pursue and successfully implement.

In other articles we will expand on the essential role that leadership plays in creating a Best Practice culture – one where innovation and continuous improvements have a permanent place, and where your people can effectively use information about how things might be done, so your company can increase its level of control over its long-term survival and generate sustained, high-levels of performance.

Best Practice Series – Path to Best Practices

What IS a “Best Practice?” The most common definition is that these are the practices used by the most admired, most successful, or most profitable corporations. Another is that a given Best Practice is the “best way” that has been developed thus far to do something.

There are various limitations with each of these and other similar definitions, we have long since found.

Our view is the answer to the question of “what do we need to do to insure sustained, consistent high performance levels” – regardless of market or other external forces.

How do we fix things so we are assured of “being in the driver’s seat” of the company, not just a passenger in the boat, subject to forces beyond our effective control?

In reality, most companies are not in full control of their destiny. This is why they are eventually merged, absorbed, or otherwise disappear from the landscape. Meanwhile, there seem to be some companies that overcome all odds against them, and continue to survive, thrive and grow consistently over long periods of time. Why? How?

Merely having everyone involved in “improvement” programs along doesn’t do it either.

Example – A large Litton division (remember them?) had gotten everyone so involved in all kinds of improvement projects that they lost control of several major contracts, and as a result, of the business as a whole, which was acquired by Northrop Grumman. Lots of meetings, documents, but no substantial, measurable performance improvements.

More recently, witness the simultaneous reports  a couple of years ago (before GM’s bankruptcy – any connection…?) – “GM reports $9 Billion loss” and “Toyota reports $9 Billion profit.”

Consider that 30 years ago Toyota’s US sales were the rounding error in GM’s financial statements, they were so small. Then there is Honda, which 35 years ago didn’t even make cars at all, yet is now competition for even Toyota.

It is not so much the “what do they do” that we have come to regard as Best Practices, although this is vitally important also, but “how do they think” that is so critical. Obviously, these companies, and others, just look at things differently, set different processes in motion inside their companies than most others.

So what is this difference? How can the “rest of us” get moving towards this goal of sustained, high level performance?   How can we get to where we are confident that we can always, always find & generate 1% in measureable (in cash, how else?) improvements each month, every month, without end, as Toyota and others have as work standards?

We have identified four essential factors that MUST be present in a highly effective way to generate sustained, consistent high performance levels. These are:

• Leadership and culture
• Enterprise systems and processes
• Continuous improvement process
• Education and training

These we call the “Path to Best Practices” – which is the path to consistently improving performance in every area of the business, without end, indefinitely, never stopping.

Our first point here is that in order to improve something you must first know what it is. Stated in business terms, this means that:

• All processes must be documented adequately. This is the “DNA” of the company and keeps everyone from re-solving problems previously solved.
• Within a given area, such as sales management, everyone must follow the established process. Results can then, and only then, be consistently and objectively measured without ambiguity. If everyone is doing their own thing, no meaningful information is possible.
• With a consistently followed, documented process, it now becomes possible, and is an imperative, to continuously improve that process over time – without end. There is no “there” there, so to speak. It is not a place one arrives at more than temporarily.

In the meantime, though, one has, in that area, a Best Practice – for now.

So, in conclusion, it is the relentless search for better methods that creates a Best Practice for an industry, somewhere within some company. The question is, how can we improve our own companies, starting from where we are now?

Best Practice Series – Leadership – THE Source of Improvements

Summary:

• Leadership – the foundation element
• Improvement is change
• engagement drives improvements
• Action steps you can take now

Leadership – the Foundation Element

This nebulous behavioral trait, “leadership” is receiving more attention lately than in the past, or so it seems.  We were fortunate, in that we received some real education and training in the leadership arena long ago.  At the time, we didn’t realize fully, just how powerful it was.

In addition, as our career moved forward, it became increasingly clear that the ability of an organization to continually improve, to renew, adapt and change itself is perhaps the critical success factor over the long run. So the question becomes “how to we enable this process?”

Who would have believed it if someone asserted in 1975, that Toyota, which up to that point, had made pretty junky cars and had failed to establish a “beachhead” in the US market, would eventually become the largest car manufacturer in the world?

And there are others.  Remember Westinghouse?  Bendix?  General Electric’s culture has, over the long haul, enabled it to become a globally dominant player in many markets, whereas the others, which were not dramatically different 75 years ago, are either gone, or are mere shadows of their former success.

It is leadership that is the primary differentiator.  These effective organizational cultures are successful, are effective primarily because of the solid foundation of real, effective leadership.  Not just from a few charismatic “leaders” but everyday, down-to earth, walk-the-talk examples at every level.  This is coupled with a management awareness of the personal nature of all work and that it is in their best interest to make working at their company as inspiring and meaningful as possible.

Improvement IS Change

We have worked, in detail with literally dozens of companies, over 60, and have seen, time and again, how hard management works to get people to change something.  While everyone says they are all for improvements, often they really mean “as long as we don’t change anything here.”  We realize there is a “duh” factor here, but perhaps it needs to be re-emphasized that improvement IS change.  Otherwise, we are back to the old definition of insanity – “expecting different results from the same actions.”

Struggle, resistance, sometimes real battles, political alliances, testosterone contests and the like go with it, or so it seems.  It is an axiom at most companies that “people resist change.”

Fortunately, it is very easy to show how untrue this is and illuminate what is really going on.  Ask you self some test questions:

• Pay increases – this is a change.  Does anyone NOT want this change?
• More job security – this is also a change.  Does anyone want more job insecurity?
• Easier, more productive work – many gripes about work have to do with difficulties people experience in simply having things go well, without a struggle or conflict with others.  Who wouldn’t want things to go smoother, less effort, with a greater feeling of reward, contribution, of being useful?  These are also changes, of course.

So, it is easy to see that people do like, even embrace changes that are positive, which enhance their lives in some way.  So what is this ”resistance” stuff about?  Let’s cut to the chase:

Insecurity – anything that increases one’s insecurity will be opposed, often vigorously.  The inner thoughts behind this include:

•  “I’m afraid that I’ll be abruptly laid off.”
• “I no longer will know where I stand.”
• “I don’t know if I can do the new system or process.”
• “They might find out that I don’t really know as much as they (now) think I do.”

In short, people oppose “change” because it puts them in a place of risk, of feeling out of control in their lives –  i.e., insecure.  Remember, most of the people working for you live paycheck to paycheck, with little cushion.  Superficially everyone acts “cool” – like he/she “has it under control, all together.”

However, beneath the veneer of daily interactions and social skills, life is essentially an insecure game.  Most management styles which seem to emphasize threats, fear, and various actions that demean, discount and in general make people feel that they don’t matter much to managers.

Historically, it has been these traditional, heavy-handed management styles, which are usually completely oblivious to these insecurities, or worse, actually hostile to them, that has caused the aggressive labor unions that so many companies had (many of these companies are now gone – wonder why?)

Early study missions to Japan, in the late 1970’s and early 1980’s often resulted in the Japanese managers asking their American visitors “how does this (a management method) affect the morale of the workforce?”  The American visitors frequently were completely baffled.  “What does that have to do with anything?” was a common response.

Thus, all efforts to make improvements must, to some degree, explicitly address this security/insecurity issue.

To be clear:  it is not about “touchy-feely” stuff, about “self-esteem,” being morally correct, ethical, etc.  It is about what works, what produces results in the form of increased sales, greater profits, market share, etc.  Look inside these globally dominant companies, which have risen to power over decades, and without exception you’ll find that this issue has been addressed well and clearly.

Once people’s security and dignity has been reasonably assured, they will then be in a psychological and emotional place where they can become involved in changes that lead to improved results.  But until then…. managers seeking sustained, continuous improvements are truly dreaming.

Engagement Drives Improvements

The next step, assuming you have assured your people that their involvement in changes that lead to improved results will not put them on the street without notice or help, is to understand what it takes to get them fully engaged in their work, and so that “everyone can work for the company” (number 8 of W. Edwards Deming’s 14 points).

In our Engagement and Leadership article, we reviewed excellent research by Marcus Buckingham on engagement.  We recommend a re-read of this one.

Summary of this research – it is the presence of effective leadership, behavioral styles by managers, that causes line people in companies, including middle and first-line mangers and supervisors especially, to care about the company and its goals.

At Best Buy stores, for example. Otherwise identical stores produced dramatically, and we mean dramatically better performance where this was the only variable, compared to other similar stores.  This statistical observation was confirmed by on site, in-the-store observation of how store managers led and inspired their people, rather than directed and controlled.

Once the combination is present in an organization’s culture of reasonable security and respect for individuals, the next critical step is to add the “secret sauce” of awareness of the need to improve.  This can come from an air of crisis, of seeing the company as being in a very competitive market, or from the desire to excel, to become the best there is at what they do.

Toyota, for example, is famous for its ability to maintain an atmosphere of crisis within the company, of intense urgency, all the time, even in the face of remarkable operating results.  Top Toyota executives make statements about all the problems and challenges facing the company and otherwise never, ever brook any talk that even sounds like over-confidence, let along anything arrogant.

Our personal favorite of all time in the “arrogance” category is the public statement made in 1994 by then-Chairman of Chrysler, Robert Eaton, that “they had completely implemented the Toyota production system and had nothing more to learn from Toyota” (emphasis mine). A follow up visit, 6 months later, by another Chrysler executive to the major plant in question resulted in the finding and report that “we have learned nothing.”

Action Steps You Can Take Now

Your organization is somewhere along the continuum of inspiration-driven actions by everyone that are the hallmark of excellent leadership at one end, and the “hunt-‘em down and punish ‘em” culture of the worst of the direct and control management style at the other.  The objective, clearly, is to move toward the inspiration end of the spectrum.  Recommendations:

• Assess your status – frankly and honestly.  Involve others.  The only truly meaningful assessments, in our opinion, are the 360 degree type.  Take the “sacred cows” out of the dark.  Discuss the company’s challenges and problems opening.  Solicit input, then involvement from others.  When in doubt take responsibility for things yourself.  Blaming is not effective as a leadership style.  Period.
• Assess your own leadership style (or where it is lacking) – using some of this 360 degree information, or an assessment of the type that PROACTION can provide, become aware of where you are on this spectrum.  With this information, you’ll know where to begin, what to work on.
• Articulate your vision – for yourself and for the company.  If you have trouble here, this is the place to start.  Without a clear vision, leadership is impossible.
• Create vision alignment – work with others in your organization to bring everyone into alignment, and agreement with the vision for where the organization is going, and their individual lives.  Some individuals may decide they don’t want to “go there.”  This is fine.  Accept it.  Find new roles for them, making sure that people in key roles are in alignment.
• Bring in a leadership coach – until the leadership skills become a deeply imbedded habit at all levels, the most successful companies we’ve worked with in this context, have all used an external facilitator, team-builder, executive coach, or similar outside person to support, educate, train and otherwise powerfully assist the organization in developing and reinforcing these habits of effective leadership.  It is hard to “forget the old ways” as many of found.  Remember – all world-class performers, athletes, and the like have a coach, a mentor – someone to consistently remind them of where they need to focus and what to work on.  No one, absolutely no one, can do it alone.
• Education and training – leadership principles, styles and methods need to be included in your on-going education and training program.  If you don’t have an education and training program, well….. you know what to do!
• Start at the top – if you have a senior executive role, this is an excellent place to implement the improvement process.  There are, of course, activities that only senior leadership can do – such as vision articulation, strategic planning, investor relations, etc.  Examine how these are done and start a continuous improvement process for these.

Finally – seek the path of leadership.  Become conscious of your own leadership style (or where it needs improvement).  Realize that becoming a good leader is somewhat like achieving high integrity.  It is a paradox of sorts.   One achieves high integrity be constantly struggling with areas where one lacks integrity.  It is similar with leadership.  One achieves capable leadership by constantly working on the areas in one’s behavior where it is lacking or weak.  Study the principles of effective leadership.  Internalize them, work on them with the goal of mastering them.  The rewards are truly enormous!

TMA / UCLA Team Case Presentation

In today’s uncertain business climate, the threat of insolvency or bankruptcy may seem close. The Turnaround Management Association (TMA) strives to provide education to fill these gaps.  On October 26, 2010, a TMA team gave a case presentation at the UCLA Anderson School of Management involving a real company.

I was honored to participate with the team doing this presentation, which was both informative, thought provoking and fun.  About 40 students and local business professionals attended.

The case used a real-world Chapter 11 bankruptcy filing and successful exit, the Accuride Corporation.  At the time of the filing it was doing about $600 million/yr in volume.  The company is a supplier to the automotive and heavy truck industry, which is very cyclical, a major factor in its difficulties.

You can download the presentation we used by clicking on this link.