Focal Leadership

Leadership

3 ways organizations are investing in people not buildings

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Investing in people not buildings has never been more pertinent than the present fall-out of the Covid-19 pandemic. Not only have office buildings been less accessible due to shut-downs, travel restrictions, and hygiene concerns, but virtual working has proved more effective than many would have dared to anticipate. Very large companies, as well as many small to medium size ones, have chosen to extend some virtual working arrangements for employees indefinitely. Many are re-evaluating their commercial real estate portfolio and creating strategies which have a much greater component of virtual working. The main reasons for this being (a) virtual working can be effective, (b) technology has enabled more virtual working, and (c) virtual employees can obviously be located anywhere with reduced overheads.

The three examples below highlight how companies are investing in people not buildings:

  1. Build your talent pool

    The pandemic has resulted in significant job losses across the world. Not in every industry, but some sectors have been very badly hit. Taking decisions to rationalize the workforce, retaining those who have most potential to win back business, and investing in employee development for remote working, are all strategies that companies are investing in. Organizations should always have a lean employee population, all of whom add definable value to current and future successful performance.

    Corporations have had to make tough decisions about lay-offs and furloughs. While many of these decisions have accompanying stressful personal implications, they are primarily made with survival and organizational health in mind. With the increasing effectiveness of virtual working, the reduction in employees can be mirrored by a smart real estate strategy. This is sometimes not achievable swiftly, mainly because of lease clauses or just because disposing of real estate is very difficult in the current climate. But organizations can and should be shifting the balance of cost from real estate to value-adding employees wherever possible.

  2. Cost effective & flexible

    Not every role is possible to carry out remotely. But many are. The cost of engaging remote employees is more attractive than providing office space for them. I would add that managing remote employees requires a specific skillset that is different to office-based supervision. Managers need to be much more proactive in connecting with their team members, ensuring they have the right skills and training for remote working, establishing networks and collaborative opportunities, and proactively engaging employees who are experiencing remote working challenges in abundance.

    Hiring remote workers provides a great deal of flexibility in building the skill-base of any organization. Re-imagining compensation options for remote workers is also an opportunity to change things up, e.g. they do not need commuting assistance, or staff restaurants. But considering how remote employees access stationery, copying, and office furniture for home use, all provide an opportunity for HR departments to use their imagination. There is also the significant reduction in the cost of services (electricity, etc.) for organizations who reduce their real estate footprint.

  3. Fuel your strategy

    People strategy should never just be a short-term reaction to an external event. The opportunity for more strategic planning with an increasingly remote workforce means that a more inventive people strategy can be considered. The overheads of investing in buildings can be replaced by the investing in people. Not only from a skills perspective, but from a resource type and location perspective. Strategically, is it better to consider a more flexible mix of permanent, interim, contract, consulting, and on-shore/off-shore resources?

    The presence of global pandemics can only fuel the advance of AI and other forms of automated services/manufacturing. But some industries rely heavily on buildings in which to build products, hold inventory, or deliver services. For jobs that do not require presence in a building provided by the employer, remote working opens up many diverse strategic possibilities.

Investing in people not buildings is smart. But a world without buildings which house corporate employees is hard to imagine. I also do not know if the world-at-large is ready for the wholesale psychological impact of permanent remote working at scale. But if you are looking to buy or renovate a house, make sure you have a home office!

Values lived not just spoken or written

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Value

I cannot think of many organizations who do not aspire to the notion of values lived and not just spoken or written. In times of stress and economic pressure, the consistency of practicing organizational values is under severe pressure. Predominantly because leaders have to make choices, and this can result in taking decisions which at face value do not align with the organization’s values. Or decisions are taken which do not actually contradict the organization’s values, but the way they are implemented does.

Why do organizations have values statements? There may be many reasons. Perhaps the one that seems most obvious is the wish to characterize the culture and behavior that they aspire to. For some, organizational values can be part of the corporate wallpaper, i.e. organizations have them for decoration with little function other than to appear once a year as a reminder during the performance review cycle. Some organizations do make efforts to embed them in practices such as talent reviews and leadership selection. The differentiating question is, “do these values characterize every decision and mean more than tenure, influence, expertise, or financial return?” Application sometimes contradicts sentiment.

Just recently I heard a CEO describe how decisions had been made with the well-being of employees being paramount, knowing that this in itself would spin off into corporate value. But this is not universally the case. There are also leaders who make decisions based on financial, strategic, or geographical factors, with less concern about any adverse impact these decisions have on people. Even though regret is expressed, values get lost in action.

It is not just leadership teams who have conflict around values. Many individual leaders are also challenged in this respect. They know about the values statements, and they are proponents of them for measuring performance and managing talent. But bringing them to life with real application and demonstration is sometimes not as evident. Role modelling and holding themselves accountable for living the values is sometimes overlooked because it is not seen as having more importance than other performance measures.

So, what is to be done? Living values means holding a constant plumb line to decisions that are made and practices that are implemented. As well as having a Return On Investment (ROI) measure, organizations should also have a Return On Values (ROV) measure. As part of the review process for critical decisions which impact the organization and employees, an ROV step should measure not only whether the decision is consistent with the organization’s values, but also whether the implementation of this decision will embody these values. For example, performance review processes need to be designed, implemented, and communicated consistent with an organization’s values. Managing the day-to-day performance of these employees also needs to be consistent with these values.

Assessing leaders for fit and potential is a massive industry. There are some assessment tools that explore the values that a leader holds, and many others focus on competencies or behavioral traits. The greatest source of leadership impact and effectiveness over time is character. The Cambridge Dictionary defines character as the particular combination of qualities in a person that makes them different from others. This distinctiveness is often associated with moral values and not just personality traits or experiential prowess. The need for organizations and leaders to embrace moral values that champion the best of human behavior is much needed in an increasingly stressful world.

It is the choice of every leader to live by the highest values, not just to acknowledge them as written or spoken aspirations, but to apply them in practice every time.

Emotional Leadership

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Emotional leadership probably triggers many different images in your mind. Enthusiastic? Unhinged? Tears? Mood swings? Passionate? Oppressive? Authentic?

Reflecting on leaders in the public eye, there are many different emotional styles of leadership. There are leaders who do not display much emotion, those who are known for demonstrating a lot of emotion, and those who control the emotional content and style of their leadership.

Why consider emotional leadership as a topic in the broader consideration of leadership? There is already a lot of commentary on emotional intelligence, executive presence, and leadership impact.  Leaders with high or low emotional content in their leadership have an impact on others with varying degrees of significance. Emotions in leaders are critical as they are a major influence on the emotional response of those they lead.  And the importance of emotions is well noted – in addition to impacting mental health (commitment, stability, feelings), emotions also have a profound impact on the immune system. Scientists have found that negative emotions reduce antibody levels and lower the ability of the immune system to ward-off sickness and disease. Hence, poor leadership that invokes a negative emotional response results in lower engagement and lower employee well-being.

A leader who exhibits a lot of emotion as part of their leadership, either arising from their personality or convictions, should expect different reactions. Some people may be inspired, energized, and motivated. Others may be switched off, unimpressed, or unconvinced. But is there anything wrong with showing emotions as part of being an authentic leader? No! In an increasingly virtual world, connecting on an emotional level has never been more important. Engaging hearts as well as minds is so important. Having to lead through a laptop screen instead of in-person, is stretching leaders more than ever. People need to feel valued, inspired, and connected. When the laptop screen reverts back to an email or document following an interaction with a leader, what are employees meant to feel? If they are not self-motivated, they need regular emotional sustenance from their leaders to connect them with the wider world and infuse them with energy and purpose. Now more than ever leaders need to discover the power of emotions in leadership.

Building and maintaining positive emotions is like a drug for many – a supply needs to keep on coming. Leaders are in the floodlit zone of providing emotional sustenance. A leader who just turns up without consciously or sub-consciously doing a self-inventory of personal motivation and emotional health, needs to reflect on the impact they are having. Being indifferent to the emotional legacy a leader delivers is poor leadership. Turning up with a positive mindset, a buoyant attitude, and credit in your own emotional bank account will leave a positive legacy.

What about controlled emotional leadership? In my opinion, this can go two ways. First, a leader who knows how to control their emotions, how to accentuate them, and how to suppress them appropriately, is a skilled leader. A skilled leader knows how to use emotions to motivate, communicate, and liberate others. They know how to keep disappointment or frustration in check – sharing if it is appropriate, and with a sensitivity for how it might impact others. But leaders who control their emotions so much that they come across as void of feeling, empathy, or authenticity, need to understand the lack-luster impact they are having.

Emotional leadership does not mean over-the-top exhibition of random emotions. It is the appropriate demonstration of emotions as part of communicating, connecting, and changing. Emotional leadership is above all the mark of character in a leader – appreciating that people need an emotional connection as well as cognitive. It is an aspect of leadership that has never been more critical.

Decision-making – is timing everything?

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decision-making

Timing of decision-making and leadership are often wrapped up together. Right now, there are so many arguments raging about the timing of leadership decisions. Re-open the economy, deem services as ‘essential’, return to the office, reduce costs, go virtual, and so on. All of these topics require timely decisions. It seems as though more and more people see timing as right or wrong … predominantly when they are personally affected.

As a leader decision-making is something that comes naturally. Afterall, leadership is a responsibility invariably accepted by those who are comfortable with making decisions that impact other people. There are a minority of leaders who find decision-making onerous or who reluctantly don the mantle of responsibility – a topic for another article. But leaders who make decisions often have to accept that the timing and impact of these decisions will be seen subjectively by others.

How do you know whether a decision is right or wrong?

Some former Presidents of the United States of America had some interesting techniques:

Benjamin Franklin: wrote lists of pros and cons on a piece of paper; struck out items on both sides that seemed to have similar weights (or combined them to make weightings equal); waited a few days; the longest list determined the best decision.

Abraham Lincoln: surrounded himself with great people (often his enemies) who were not afraid to table the best information; considered all points of view and then decided.

Theodore Roosevelt: “In any moment of decision, the best thing you can do is the right thing, the next best thing is the wrong thing, and the worst thing you can do is nothing.”

There are some leaders who consider decision-making to be their responsibility and those who will be impacted by their decisions are just waiting for them to decide. They have ultimate wisdom, insight, and authority. Consultation is not considered because it could come across as a weakness or lack of leadership. In my opinion, this type of leader is missing some of the fundamentals of leadership; humility, empathy, and listening.

Of course, a leader who does not make decisions and prevaricates, vacillates, and hesitates, is not someone who is easily followed. People are looking for leaders who have courage, foresight, and good judgment. Making decisions with these three qualities is characteristic of a confident leader.

The best leaders are those who know how to make the best decisions at the best time in the best way. By definition, this means that decision-making has different guises. Decisions that are urgent often require leadership experience, instinct, and courage. Decisions that impact many people, if not critically urgent, often benefit from consultation, considering options and outcomes, and more careful communication.

So, when is the time right for a decision? If I knew the answer to this question every time, I would be as wise as King Solomon. But there are conditions leaders can consider that influence the timeliness of decision-making. These include implications, risk, urgency, impact, and cost. A single person does not often hold absolute wisdom to be able to make the best decisions every time. That is why great leaders are those who know how to lean on great people. What I might think to be a good decision, may indeed prove to be right. But then again, it may not be the best decision. Being able to consider different points of view, weigh up outcomes, be mindful of all affected parties, and take external forces into account, often requires a collective view rather than a singular opinion.

The timing of decision-making may or may not be critical, but the carefulness and precision in which a decision is crafted can often make or break a leader.

Leading Change in Yourself

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Leading Change is a hot topic. Given the present pandemic, change is not an option. One of the biggest challenges is leading change in yourself. The pandemic has thrown so many curve balls that require us to change, but how about the changes that require personal leadership and not just a response?

What do I mean by this? Some people are pre-disposed to adapting and flexing without any discomfort. Others struggle. Some people are ok being led through change and others enjoy the challenge of leading others. But a lot of stress is caused when people feel that they are constantly reacting to the circumstances around them. Being able to lead yourself through change is a disposition that many are experiencing, yearning for, or simply bereft of. Anticipating that change is a constant, developing chameleon-like behaviors, and retaining serene mindfulness, are adaptive ways of leading change in yourself.

When I first learned to drive, I remember being told by a policeman friend of mine, “steer into the apex of the bend and accelerate out of it”. This driving technique seems to make sense to me. In the same way, if you can intentionally anticipate the upcoming changes of direction, position yourself appropriately, and purposefully invest your energy in the new direction, this seems to be a great way of leading change in yourself. Let us take these one at a time:

Anticipate the upcoming changes of direction

Anticipation can be a quick reflex, or it can be a deliberate plan. Leading yourself requires more of the latter and less of the former. If we are always playing catch up, then we are being led by change rather than leading ourselves through it. If, however, we reflect, research, and resolve to meet the upcoming changes with a positive mindset, we get ahead of the need to just react. Anticipation is an acceptance of the inevitable differences to the status quo. Getting prepared, planning for new solutions, and learning adaptive behaviors, will help you anticipate change. You have heard the phrase “being able to see round corners” … well how about “being the change that lies around the corner”.

Position yourself appropriately

If you do not position your car on the outside of your lane before you steer into the curve, then the curve will be much more difficult to steer around … and you will have to slow down much more. But if you anticipate what is ahead of you, your efficiency and trajectory will be much better. So, positioning yourself for the changes that life, business, and society hold in this current environment will determine how effectively you lead yourself through change. Positioning yourself appropriately implies a change. Communicate differently, work differently, and ideate differently, are all essential to lead through change. You must shift your alignment to the change – be its master, be in control, be ready for it.

Purposefully invest your energy in the new direction

Some people have a victim complex. They are the afflicted ones. Whereas those who lead change in themselves are the opportunists and optimists. Around the corner of our current predicament is a different life. It is hard to imagine that this is the last pandemic we will ever face – and I am trying not to be a doomsday prophet. New opportunities are presenting themselves, the seedbed for innovation has never been more fertile, and the future beckons. When you emerge from the apex of the curve, a new horizon presents itself. Clear vision is restored. We will get through the current pandemic crisis, and there will no doubt be many that have suffered along the way. There will also be those who feel a sense of excitement. Not only of old things returning to normal, but of new vistas. History teaches us that disasters are painful, and they are also accelerants for change. Leading change in yourself will allow you to reflect on the hardships we are all experiencing and also to be authentic in hope.

As we all journey through this time of immense challenge and turmoil, leading change in yourself is an opportunity to build strength, succor, and sustainability to our world.