Building Business Value | Corporate Management Strategies

The Psycho-path to Success?

One of my favorite Warren Buffet quotes is "In looking for people to hire, you look for three qualities: integrity, intelligence, and energy. And if they don't have the first, the other two will kill you."  This quote was the first thing I thought of after reading Kevin Voigt’s article in CNN International’s Business section titled “Bad bosses:  The psycho-path to success.”  Beyond a terrific title, the article forces us to think about the values our company enforces when making hires and promotions.

Fortunately, I’ve only had on psycho-path boss and I’ve never had a psycho-path client but according to the data, some of you probably have.  Dr. Robert Hare, a Canadian psychologist who is co-author of the book "Snakes in Suits: When Psychopaths Go To Work” suggests about 4% of senior managers displayed psychopathic tendencies, up from the 1% that researchers say could normally be found in society.

Many companies, maybe yours, identify and print their corporate values.  They are almost always “apple pie” sort of values, as you would imagine they would be. I don’t think I’ve ever seen any company list cunning, manipulative and psychotic as their most admired values.

We can all have fun with this discussion, but the serious question I’d like you to answer is “have the last five promotions you’ve made been given to people that eat, sleep and breath your company values?”  Is performance more important than your stated values?  It is easy to say no, but go back and check your hires and promotions to settle the question once and for all.

Making Change Stick Through Broad-Based Action

Consider your last successful change effort.  Chances are you got everyone excited about the change and folks were able to make an emotional connection.  I’m guessing one of the next things you did was to empower a broad base of action. That means people are going to be asked to do specific things and you're going to seed those actions with your guiding team. Specific actions to empower people and get them involved.

It's one thing that they're emotionally connected. They made the emotional connection initially, but now they need to turn that emotion into action. Specific actions. It can be very simple actions. It doesn't have to be earth shattering. Just a very specific action you want them to take.

Then you’ll want to generate short-term wins. You may even create those short-term wins. You want to create an environment where you can generate a positive result. As a leader, you may have been quite certain of the results.  Perhaps the result was in your back pocket all the time. You’ll want to create some momentum through a series of short term wins.

Think of the flywheel. We've got this thing going and we want a little bit more juice to keep it going. And then it just takes off and it moves on its own for a while. You want to create enough momentum, small and even repeatable wins, that you can get people excited about it. Because if you don't have any early short-term wins – that broad based team will loose heart and the change will not happen.

Stocking Stuffer Ideas – 20 Classic Leadership Books

One of my favorite Christmas gifts to give or receive is a book.  It is the ultimate gift that keeps on giving.  Here is a list of my top 20 leadership books.  Some are academic, other are anecdotal in nature, while a few are written in a business fable format.

Buy one for yourself and one for the colleague you most relied on in 2011.   Merry Christmas.

1. Lincoln on Leadership, Phillips, Warner Books
2. The Servant Leader, Neushel, Visions
3. Leadership Jazz, DePree, Currency Doubleday
4. The Leadership Challenge, Kouzes Posner, Jossey-Bass
5. Christian Reflections on the Leadership Challenge, Kouzes Posner, Jossey-Bass
6. The Leader in You, Levine & Crom, Simon & Schuster
7. Enlightened Leadership, Oakley & Krug, Simon & Schuster
8. Leading Change, Kotter, HBS Press
9. Reinventing Leadership, Bennis & Townsend, Morrow
10. The Leadership Engine, Tichy, Harper Business
11. Virtual Leadership, Kostner, Warner Books
12. The Heart of a Leader, Blanchard, HB
13. Only the Paranoid Survive, Grove, Currency Doubleday
14. The Leader of the Future, Drucker Foundation, Jossey-Bass
15. On Becoming a Servant Leader, Greenleaf, Jossey-Bass
16. Leaders, Bennis & Nanus, Morow
17. The Five Temptations of a CEO, Lencioni, Josey Bass
18. The Leaders Guide to StoryTelling, Denning, Josey Bass
19. Trusted Advisor, Maister, Free Press
20. Empowerment Takes More Than A Minute, Blanchard, Carlos, Randolph, BK

Does a Hand Shake Mean Anything to You?

In a recent discussion with a client on the topic of joint ventures, partnerships and teaming arrangements, the concepts of doing a deal on a handshake came up.  We discussed business arrangements that deal with two companies sharing ideas or resources and working together with the ultimate goal of a shared benefit.

We began swapping stories of the work we’d conducted on a handshake.  He shared a recent deal he struck with another CEO based on a very preliminary meeting, but supported by history and reputation.  I shared a similar story of a real estate transaction I once agreed to with a handshake.  In both instances, the legal paper work never caught up to the handshake.  In fact in both instances, the deal had come and gone before the lawyers got involved.

I’ll contrast those anecdotes with another from a large company CFO that felt that most people would engage in shady, fraudulent, nefarious, or negligent behavior if given enough leeway.  He was a very strong advocate of very tight corporate controls and governance.

Now I’m not advocating we toss all contract lawyers into the Chesapeake Bay (there is probably a joke in there somewhere), but I’d like to pose a question for you to consider.

Under what conditions will you say yes to a business deal with only a handshake to support the conditions and consequences?  Under what conditions can those in your organization make the same decisions?

If you are ever wondering about the principals and values of your company, they’ll quickly be spelled out once you answer those two questions.

4 Pitfalls to Watch For in Your New Year’s Strategy

You’ve come up with your three top transformational initiatives for 2012.  Like most leaders, you’re jazzed about the new beginning, the new year.  Here a four pitfalls you may run into as you work to implement you new year’s strategy.

1. Complacency Think about any major transformation you’ve made in your life.  Whether it was loosing weight, climbing a mountain or becoming a certified diver.  There was always an exciting, emotional reason behind what you were doing.  Far too many corporate initiatives are supported by spread-sheets and board room logic.  These are important, but they don’t inspire people to act.  Find a way to make an emotional connection to the change and loose the complacency.

2. Lack of a Broad-based Implementation Team.  You may be the leader but you’re not going to be able to accomplish big changes without a coalition behind you. The coalition needs to be broad at the beginning of the change and deep at the end or completion of the change.  In other words, find evangelists to support the change throughout the organization and then build depth as you go.

3. The Changes are Poorly Communicated.  You have a vision for the new year.  It is crystal clear in your mind’s eye.  The most important question is not whether you have a vision, but does everyone in the organization know the vision.  Posters, emails, tweets, paycheck stuffers, blogs, notices on portals, anything to get the word out.  Everyone has to know about the change initiatives and then they need to understand what they can do to support the change.

4. Waiting for the Bang.  The Big Bang corollary in strategic planning theory is that you declare a big, hairy, audacious goal and you wait for it to happen.  I’m a fan of the Flywheel Approach rather than the Big Bang.  In other words, your business is constantly moving and every gain is incremental!  You may roll out a new product or fire a top exec and that may bring about a big change, but to make change stick, you have to constantly consolidate short-term wins.

What Might Matthew Kelly Say About Urban Meyer?

Off Balance: Getting Beyond the Work-Life Balance Myth to Personal
and Professional Satisfaction

by Matthew Kelly

Matthew Kelly gets it! After listening to Urban Meyer, the new Ohio State football coach talk about his lack of balance during his tenure at the University of Florida, I was reminded of how Matthew Kelly's new book, "Off Balance" blows up the myth of work-life balance. Kelly asks us to dig deep and consider what really satisfies us. Be prepared to ask yourself tough cultural questions. Am I overly concerned about "what's in it for me"? Do I confuse pleasure with happiness? Do I even know the difference? Do I do the minimum amount of work to just get by? I especially like how Kelly addresses life. It's not segmented into work, family, sports, fitness, spiritual, financial, etc .... life is life. The more we learn how to get beyond the balance myth, the better off, and more satisfying, our lives will be. "Off Balance" is a great book to add to your 2012 reading list!

The Tyranny of Small Decisions

A classic example of the tyranny of small decisions is the tragedy of the commons, described by Garrett Hardin in 1968 as a situation where a number of herders graze cows on common land. The herders act independently in what they perceive to be their own rational self-interest, ultimately depleting their limited shared resource, even though it is clear that it is not in any herder’s long-term interest for this to happen.

Leaders of business units, division vice presidents, and program managers making decisions of self-interest with little regard for the health of the larger organization can turn a series of small, poor business decisions into a corporate death spiral.  Leaders and decision makers must understand the fundamental and strategic assumptions underlying the operating model as well as or better than the CEO does. Midlevel executives must understand the way the company makes money and the major cost drivers of the operating model. It is the responsibility of the company’s leadership to provide this education.

So the question remains, are you providing your next generation leaders with the skills, knowledge and abilities to avoid a tyranny of small decisions?

The Failure of Process and Procedures

Many managers, when faced with declining performance, make the mistake of relying on processes and procedures to fix the situation. Conventional wisdom says businesses should develop new policies, procedures, and processes to control growth and manage profitability. But conventional wisdom, in this case, is dead.

This mentality is a product of a bygone era and no longer works in the knowledge era. Indeed, growth and profitability have never come from new processes alone. So why do so many managers fall back on such traditional constructs when faced with performance problems? Why do so many executives rely solely on their monthly and quarterly management tools rather than proactively coaching and mentoring their next generation of leaders?  In short, it is much easier to rely on traditional business constructs than take the time to teach employees how the company makes money.

In large and small companies alike, employees still must understand their need and ability to impact the financial performance of the organization. It’s a fate shared by both company and employee. Whole Foods, for example, has a gain-sharing program that allows teams to manage their labor budget (a huge percentage of their expenses), and a portion of the surplus is sent back to the teams in form of an incentive.  They’ve drawn a direct line of sight between daily operations and corporate financial performance.

Are there failed processes and procedures in your organization that you are clinging too?

Sgt. Andy Brown Road

On this Veteran’s Day, many of us remember fallen family members, friends or co-workers.  It seems we all know of at least one family who recently lost a son or daughter while serving their country.

In my case it was my nephew, Sgt Andy Brown.  Andy died October 8, 2004 serving his country during Operation Iraqi Freedom.  He was assigned to the 1st Battalion, 509th Infantry, Fort Polk, LA, and died in Baghdad of injuries sustained on October 1st when his patrol vehicle was struck by an improvised explosive device.

His family and friends will certainly never forget Andy and neither has his community.  Andy and I grew up in the same little Pennsylvania hamlet, although our experiences were separated by 25 years.  What I remember about Pleasant Mount, PA was the sense of community and taking care of one another.  Well in this case, times have not changed.

Pleasant Mount honored Andy’s memory when they added his name to the local American Legion Post.  To further pay tribute to Andy’s memory, the community recently named a road in his honor.  Fathers and mothers will now remind their children about the medal winning American Hero with roots in their home town every time they pass the sign that proudly says, Sgt Andy Brown Road.

I know I will.

Day is done,
Gone the sun,
From the lake, from the hill, from the sky.

All is well, safely rest.
God is nigh.

UMBC on "60 Minutes"

As a 19xx graduate of the University of Maryland, College Park (do you really need to know the date?), I used to have a bias against our sister campus 20 miles to the north.  But over the last 10 years, I have become involved in a number of educational and economic development efforts at UMBC and I’ve seen the light!  I’ve taught a few Entrepreneurship Classes through the engineering department, served as the Entrepreneur in Residence for a period of time and sat on both the Technology Center and Cyber Incubator advisory boards.  On every corner and at every turn, I continue to run into education professionals who care deeply about the students, the region, the University and have the skills and competency for making UMBC a fabulous educational institution.

Perhaps the folks at CBS News have uncovered the same bit of commitment.  A piece of exciting news for the University community is that UMBC is scheduled to be on "60 Minutes” this Sunday (Nov. 13, 2011).   After many months of filming on campus, “60 Minutes” plans to feature UMBC on one of it’s news documentary segments.  The news show is looking at how we, the United States, is lagging behind in the graduation of students, particularly minority, in science, technology, engineering, and math. The good news is that “60 Minutes” focuses on UMBC as a place that gets it right!

I can anecdotally attest to this first hand in that in my entrepreneurship classes, most of the students had a science major and many were minority.  That can translate into eager young minds solving tough technical problems and finding ways to take their solutions to market.  Sitting on the Tech Center and Cyber advisory board, I see the potential for enlightened minds coming up with new ways to secure the web or solving some medical challenge facing our society.

From the student body to regional economic development, UMBC, under the inspiring leadership of Dr. Freeman Hrabowski, just seems to get it.  So set your DVR for Sunday night and re-discover one of America’s best-kept educational secrets.