Focal Leadership

Leadership

Interim leaders and the gig economy

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gig economy

As the world of work changes, the need for interim leaders is growing. “We’re at a unique moment in human history where power is dispersing from organizations to individuals,” notes Taylor Pearson in The End of Jobs. This insight, together with sound research and the voices of business leaders, clients, and interim leaders, adds weight to the argument for interim leaders. As the positive impact of interim leaders becomes more evident, and the familiarity with interim leadership grows, business leaders will look increasingly at these professional leaders as a significant resource to build their organizations.

Today’s workplace values skilled, independent contractors who work alongside full-time employees. This is an ideal environment for interim leaders as well as specialists and consultants. In fact, Diane Mulcahy’s observation about the future of work, described in The Gig Economy, is consistent with the world that interim leaders have already discovered. She predicts that by the time today’s kids grow up, becoming an employee and getting a full-time job will be the exception, not the rule. Interim leaders embrace this reality and already know that having a diverse portfolio of “good work”, as Mulcahy explains it, “will be the new normal, and being a full-time employee for a single employer the exception.” This shift to a “gig economy” is a fertile context for “gig leaders”—highly skilled interim leaders.

More than ever, the vacuum of immediately available expert leaders needs to be filled. Employers and leaders must increasingly exercise foresight and agility as they resource organizations. Mike Johnson observed in the 1998 Economist Intelligence Unit report, “There is a new phenomenon sweeping the global business world: a serious shortage of qualified people to meet the fast-growing needs of corporations.” This phenomenon is even more prevalent in today’s organizations.

Engaging an interim leader is an effective approach to leading and building organizations; it is also a mark of those who embrace change. Consider Charles Handy’s insights in The Second Curve: “. . .to move forward in many areas of life it is sometimes necessary to change radically, to start a new course that will be different from the existing one, often requiring a whole new way of looking at familiar problems. Those who have been in charge of the first curve have to begin to think differently about the future, or, more often, let others lead the way up the new curve.” Handy echoes Mulcahy’s predictions about the shift to a “gig economy” when he writes, “I have often wondered why more individuals with valuable specialist skills do not step outside the organization, selling their skills or intellectual property back into the organization instead of giving it away for a salary – it may only be a matter of time before the contractual organization becomes the norm.”

An interim leader is at the cutting edge of this change in the workplace. The conventional world of work with long-standing organizational job hierarchies and impregnable leadership cliques is ineffective for competitive organizations in the twenty-first century. In modern organizations, the paradigm of effective leadership is not something as simplistic as a stable, long-standing group of leaders who have been with the organization since college.

The world of work is changing. Corporations that have entertained or embraced an interim leader as part of the solution to growth and transformation almost unanimously celebrate this option as a success. Leaders who embrace diverse leadership models and look beyond the wall of familiar solutions will be at the front of the pack. As Giles Hutchins notes in Future Fit, “The times in which we live herald paradigmic and metamorphic shifts challenging what we do and the way we do it, calling into question our sense of purpose, and demanding wholly new ways of creating and delivering value.”

For more information, Rise of the Gig Leaders provides a detailed analysis of interim leadership. Please check-out the YouTube link as an introduction to the book https://youtu.be/iHMesdPFbro  

The interim leader – a compelling context

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interim leader

An interim leader is one of the most valuable, yet unexploited, resources for building organizational health in the modern era. Diane Mulcahy describes the context for interim leadership in The Gig Economy: “Companies are taking previous full-time jobs and breaking them down into smaller projects or tasks to be automated, outsourced, or contracted out. It’s cheaper, more flexible, and more efficient to do so.” This broad premise is the context for interim or gig leaders. Interim leaders do more than just fill “jobs”, they assume significant leadership roles in growing organizations worldwide.

During the 1990’s, authors Charles Handy and William Bridges predicted changes to the world of work that are especially relevant to the rise of gig leaders. Consider Handy’s analogy of a doughnut in The Empty Raincoat. The doughnut comprises a central core of key employees and an outside hole comprised of portfolio workers who provide the ultimate in flexibility and effectiveness. In Handy’s earlier book, The Age of Unreason, he predicted a “shamrock organization, based around a core of essential executives and workers supported by outside contractors and part-time resources.” In Job Shift William Bridges states, “Work will not be contained in the familiar envelopes we call jobs”. He even uses the term “gig” when postulating that “the terms of work have been reframed away from positions and towards assignments or even gigs.” These doughnuts, shamrocks, and gigs shape the context for the advent of interim leadership.

Handy and Bridges’ vision can be seen today in the rise of the “gig economy”. A 2017 report on U.S. employment from Upwork and the Freelancers Union reveals that more than ever, professionals are choosing to freelance; in fact, up to 35% of the total U.S. workforce in 2017 were contract, freelance workers. According to the research paper The Rise and Nature of Alternative Work Arrangements in the United States, 1995-2015 (March 29th, 2016) published by Lawrence F. Katz and Alan B. Krueger, “94% of net job growth in the past decade was in the alternative work category (non-permanent employment)”, and interim leaders are at the cutting edge of this trend in the world of work. In addition, human resource professionals observe a global shift over the last decade in demand for those who perform jobs focused on skills, rather than career paths. This is driven by organizational needs for speed and agility which fuel the increasing requirement to supplement the permanent workforce with other talented professionals. It is much faster, for example, to hire a contract worker than a permanent professional. In addition, new technologies and options for virtual work fuel these shifts in the workforce and the ways organizations and gig workers connect.

In Accelerate (XLR8), John Kotter paints a picture of the world of work: “The world is now changing at a rate at which the basic systems, structures, and cultures built over the past century cannot keep up with the demands being placed on them.” He discusses a constant organizational challenge related to this: “You find yourself going back again and again to the same small number of trusted people to lead key initiatives. That puts obvious limits on what can be done and at what speed.” One way in which Kotter suggests this challenge can be alleviated is to, “selectively hire people who see and appreciate the true turbulence you face.” This is an opportunity for interim leaders.

A 2017 Deloitte Human Capital Trends survey suggests, “As organizations become more digital, they face a growing imperative to redesign themselves to move faster, adapt more quickly, learn rapidly, and embrace dynamic career demands. Leading organizations are moving past the design phase to actively build this new organization.” Also, there is the impact of the attitude of millennials towards work that indicates a growing acceptance of the gig economy. Many millennials are confident about virtual employment, intent on making an impact throughout their careers, and eager to find an ideal work-life balance. As the twenty-first century progresses, the traditional working relationship between employer and employee is likely to keep transforming.

For more information, Rise of the Gig Leaders provides a detailed analysis of interim leadership. Please check-out the YouTube link as an introduction to the book https://youtu.be/iHMesdPFbro  

3 Dimensions of Savvy Leadership

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savvySavvy – shrewdness and practical knowledge; the ability to make good judgments

Defining great leadership is often less tangible than check marks against competency or value frameworks. The concept of savvy leaders is one that can be defined as simply, “leaders who get it”. Leaders who know how to navigate organizations, relationships, and cultures. Leaders whose decision making is sound and well-intentioned. Leaders who have a “je ne sais quoi” about them (a quality that cannot be easily described or defined).

 

Here are three dimensions of savvy leadership that make distinctive leaders:

Organizational
Organizations are complex and unique. They can be incredibly mature and have existed for more than 100 years, maybe metamorphosing on many occasions. Or they can be vibrant start-ups. Of course, there are variations in between.
Ronald Heifetz, Marty Linsky and Alexander Grashow discuss the subtleties of organizations in The Practice of Adaptive Leadership: “To identify adaptive challenges confronting an organization, look beyond what people are saying about them. Listen to the song beneath the words.”
Leaders who “listen to the song beneath the words” have a profound organizational savvy about them. These leaders detect the ebbs and flows of an organization. They understand the pulse, the rhythm, and the direction of an organization. In their leading they have a passion and belief in the organization – to grow or change it.

Relational
Relational savvy is critical in leadership. Navigating through relationships with skill, sensitivity and selectivity is a core leadership capability.
Emotional intelligence is the heartbeat of relational savvy. Knowing oneself profoundly, understanding others in a deep way, and having an intuitive antenna to read context, are all part of being emotionally intelligent. Often the best leader is one who draws from his or her maturity, insight, and foresight to ensure that relationships support the mission and goals at hand, rather than undermine or damage them.
Demonstrating a collaborative, engaging, and curious mindset is a great way to build a rapport that leads to trust. Trust is a commodity that lies at the root of relationship savvy. Inspiring, believing in, and empowering others are all ways to develop trust. There is also a very personal element to trust and relationship savvy – leaders who show vulnerability, personal interest, and intentional purpose have a solid foundation for strong and meaningful relationships.

Cultural
How does a leader “read” the culture of an organization? “How things get done around here”, is a useful definition of culture.
Edgar Schein describes culture in Organizational Culture and Leadership as operating at three levels: artefacts, espoused values, and the deepest level of basic assumptions. It is important to understand the impact of artefacts, values, and assumptions in the way an organization operates, relationships are built, and work gets done. Schein expands his definition of culture as, “a multidimensional, multifaceted phenomenon, not easily reduced to a few major dimensions.” Leaders who have cultural savvy are truly skillful, connected, and effective.
Reading, imbibing, and interpreting culture are essential for a leader to navigate the nuances of daily decision making and relationship management. Being in touch with organizational tapestry and patterns ensures intelligent and insightful leadership behavior.

Savvy leadership may not be easily assessed in scientific ways, but it is observable – hence the need for leadership assessment to be a continual process and not just an aberration of talent management.

An integrated leadership development strategy

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integratedDesigning a leadership develop strategy is a great step forward in proactive stewardship of organizational talent. Integrating it into the operational and strategic infrastructure is a more intricate but essential task.
Developing leaders is never an isolated activity. Lying at the root of initiatives and programs is the “why”. This might seem obvious, but many organizations invest heavily in development, without following through with the multiple value-added essentials.
Probably the most obvious reason for leadership development is to enhance the capability of leaders to inspire, engage, and mobilize employees. Doing this better should enhance the performance and potential of the organization through its employee base. Sometimes the need to retain and attract good leaders is also a reason for providing development opportunities.
These reasons alone do not maximize the value of a leadership development strategy, no matter how well thought out and leading-edge it is.
There is the “so what” to consider when designing a leadership development strategy.
For example, do better developed leaders impact the organizational succession plan? They should do. A return on investment for developing leaders should be individuals who are accelerated and better-positioned to take on alternative, higher-value roles. Without integrating the outcomes of leadership development into succession management and talent management, a golden opportunity is missed to deliver rationale for the investment.
Integrating a leadership development strategy into the business strategy is also essential to gain maximum value. This means keeping the focus of the strategy relevant and current to the direction and values of the business. Many organizations simply get into a rut of repeating the same leadership programs repeatedly, without revitalizing them to be 100% relevant to the trajectory and priorities of the business. Investing in the design of leadership development programs is significant, allowing them to become detached from the business strategy and culture is irresponsible.
Another way in which a leadership development strategy can be integrated is to tie it to organizational design and development. As the design of the organization is adjusted to accommodate the business climate, strategic direction, and operational efficiencies, so the leadership development strategy needs to evolve accordingly. Rather than just responding to change, leadership development professionals can take a lead in the design of strategy by working with business strategists and planners to drive change. Flagship leadership development programs can be at the forefront of cultural and directional strategy.
Another aspect of integration is related to the content of the strategy. External SME’s, leaders as teachers, immersions, projects, coaching, off-sites, and personal learning, are all helpful elements for leadership development programs. Integrating these types of stimulating development activities ensures that learning is vibrant and impactful – provided the content and facilitation is first class!
Integrating a leadership development strategy into the organizational is more than just providing programs for leadership transitions or to address specific initiatives. It needs to be integrated by design and intention, with a constant focus on value and the future. Leadership development strategists prove their value by ensuring the development of leaders is core to an integrated business strategy.

Culture change is more than an event!

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dnaChanging an organizational culture is never achieved by only designing a creative event or workshop to inspire leadership of the desired change.

For some, the temptation of designing a culture change workshop and hoping that this carries momentum, is too enticing to resist. Effort is placed into designing innovative and high-impact activities that it is hoped will bring about transformation. Only too often, these high-cost and high-profile events deliver hype and not culture change.

In essence there is nothing wrong with culture change workshops, but these need to be considered as part of an integrated program that impacts the DNA of the organization for change to be lasting.

The model of changing culture provided by Connors and Smith in Change the Culture shows the deeply embedded activities that need to be considered, i.e. results, actions, beliefs, experiences.

When planning a culture change program, attention needs to be given to all parts of the organization. These include leadership, processes, and day-to-day practices. Starting from the top is always the most appropriate first step, given that leaders are ultimately accountable for the culture of the organization.

Leaders need to know “why” the culture needs to change. Without this beacon of purpose, culture change lacks meaning and impact. Embracing the reason for culture change is often triggered by the need for greater competitiveness, differentiation, diversification, or integration. Sometimes this occurs post-merger, or frequently to build cohesion following numerous acquisitions. It can be instigated to achieve business advantage or sometimes to address a high attrition rate. Whatever the reason, leaders need to have a passionate and authentic story to tell the organization and every stakeholder. Just to embark on a culture change program because it’s what many organizations are doing, is no reason to invest in this type of initiative.

Conducting assessments and reviewing organizational analytics are often part of a culture change program. These activities can be very helpful in understanding the data that lies at the root of why changes are necessary. They are possibly the easiest part of a culture change program. It’s not hard to inspect data. It is however much more challenging knowing what to do about it.

Leaders often need to change the way they communicate and lead in general. Most of all, leaders need to coach and engage employees in a manner that gains their trust, discretionary effort, and belief. When leaders lead well, employees are engaged. When employees are valued, rewarded, and empowered, the energy in an organization is palpable.

The best culture change programs are well thought out initiatives that span the whole organization and which also address the processes that underpin the operating model. The best laid plans need to be defined from the get-go, not incrementally defined as the process gathers momentum. Engaging employees from the inception of a culture change program, communicating openly, and investing in actions that do indeed speak louder than words, is a great combination for achieving culture change.

Culture is often defined as “the set of shared attitudes, values, goals, and practices that characterizes an institution or organization”. The emphasis of “shared” sets the tone for an integrated culture change program where everyone is involved, impacted, and inspired.