Focal Leadership

Leadership

Leadership and making great decisions

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decisionsInability to make decisions is one of the principal reasons executives fail. Deficiency in decision-making ranks much higher than lack of specific knowledge or technical know-how as an indicator of leadership failure. John C. Maxwell

Analyzing critical qualities of leaders often invokes much debate. Decision-making is arguably near the very top of the list.

There are many things that characterize good decision-making; timing, justification, judgement, and outcomes, to name but a few. There are also many elements that lead to good decision-making; experience, collaboration, insight, and analysis. The many qualities that result in excellent decision-making appear to contain some intangibles, e.g. wisdom as well as knowledge, and intuition as well as understanding. But it is essential to consider this leadership trait as a learned quality as well as an innate one.

A case study highlighting the implications of decision-making

In April 2010, the Deepwater Horizon oil spill disaster occurred in the Gulf of Mexico. In 2011, a White House commission blamed oil giant BP and its partners for a series of cost-cutting decisions and an inadequate safety system. In November 2012, BP plead guilty to the U.S. government on 11 counts of manslaughter, two misdemeanors and a felony count of lying to Congress. In July 2015, BP agreed to pay $18.7 billion in fines, the largest corporate settlement in U.S. history. The neglect and poor decisions that led to the eventual spill may have been prevented if the company hadn’t ignored the warning signs that something was going wrong on the rig and had evaluated critical data better.

This example shows how leadership decision-making is critical, not just at executive levels. It also illustrates that the consequences of decision-making are rarely limited to the immediate timeline and persons. The environmental, personal, and financial fall-out to this disaster were far-reaching.

Developing decision-making skills

Developing leaders to become better-decision makers is a major challenge. Some of the ways that this can be achieved are:
• Secondment – experience in diverse organizational roles, e.g. international assignments. This broadens the exposure of leaders to other environments thus expanding knowledge and understanding, leading to more informed decision-making
• Mentoring – access to a more senior leader who can guide, advise, and recommend a leader in decision-making
• Shadowing – working alongside another leader in an unfamiliar role which adds learning and understanding to facilitate more informed decision-making
• Case studies – practicing decision-making using a classroom scenario and receiving feedback from experts on the quality of decision-making
• Projects – Tackling a specific assignment that requires collaboration and action to develop decision-making behaviors
• Learning – Expanding the cognitive and emotional intelligence of leaders through formal and informal learning to provoke more informed decision-making
• Methodologies – Establishing formal methodologies such as project management, change management, and strategic planning can all lead to better, more collaborative decision-making

Leadership development initiatives need to incorporate elements of the above to be effective. It is important to evaluate any investment in developing leaders as a bottom-line impact arising from better decision-making. A McKinsey report of January 2014 titled Why Leadership Development Programs Fail, highlights the need for context, real work, considering mindsets, and measuring results, as the best environment for building such initiatives.

Helpful development tools

Apart from the “activity-based” initiatives above, it can also be helpful to consider techniques in developing better decision-making. Chip & Dan Heath provide a helpful pneumonic in their book Decisive – How to Make Better Choices in Life and Work (2013) …… WRAP.

• Widen Your Options – You encounter a choice. Narrow framing can make you miss options (unduly limiting the options considered)
• Reality-test Your Assumptions – You analyze your options. Confirmation bias can lead you to gather self-serving info (information that bolsters beliefs)
• Attain Distance Before Deciding – You make a choice. Short-term emotion can often tempt you to make the wrong one (being swayed by emotions that will fade)
• Prepare To Be Wrong – Live with it. You’ll often be over-confident about how the future will unfold (too much faith in our predictions)

Using a framework such as this to test decision-making can be a helpful exercise, especially as an objective balance to the instinctive or traditional ways decisions are made.

Benjamin Franklin had a model for decision-making which he called “Moral Algebra”:
• “Divide half a sheet of paper by a line into two columns, writing over the one Pro and over the other Con. Over the next three or four days, add factors to the two columns as they occur to you. Estimate the respective weights of each factor and where two, one on each side, appear equal – strike them both out. If a Pro equals two Cons, strike all three out – follow this pattern based on respective weights on either side. Find where the balance lies, and if nothing of further importance arises over the next day or two, come to a determination accordingly.”

Whilst Chip & Dan Heath’s model might appear broader in design, any model that enhances the quality of decision-making is helpful.

A leader’s ability to make empathetic, collaborative, and strategic decisions which positively impact their employees, organization, and all stakeholders, is one of the most critical qualities of great leadership. Investment in building this ability is time and money well spent!

Why character always matters in leadership

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characterCharacter is a much-debated aspect of leadership. There are many who consider exemplary character to be important for good leadership. There are also many who don’t care, as long as a leader is delivering results.

Let us consider the trajectory of each argument:

• Important: Leadership with an integral moral code based on integrity, honesty and transparency will develop a culture that reflects this. In fact, the whole argument concerning the importance of character is about outcomes. Leadership with these character traits requires followers to consider values, standards, and behavior as significant in the way results are achieved.

• Not important: Leadership that considers a good and upright character as optional, will encourage followers who regard the end as always justifying the means. Values, morals, or methods do not matter. By definition, this type of leadership will develop an “anything goes” type of culture.

An interesting case study is the recent scandal consuming the Australian cricket team. Leaders decided that cheating is ok in the pursuit of success. A culture of spitefulness, abuse, and aggression develops in that sort of environment, or maybe this culture spawned cheating as an acceptable strategy. Not that all other national teams are paragons of virtue – far from it! Has the need to win at all costs resulted in the death of good sporting behavior? Thankfully there are still leaders in the sporting world who maintain a virtuous character.

Politics is a murky world that I’d rather not delve into too much. But leaders who lie, deceive, and besmirch, rather than show a passion for truth, integrity, and praise, do not endear themselves to many. Maybe that’s why voting often seems to be either, (a) the lesser of evils, or (b) policy regardless of leader.

In the business world, the character of leaders has the potential to impact many. Not only members of the leadership team, but all employees, customers, and suppliers. Leaders of good character will encourage a good culture. These leaders develop a way of working and relating that has a moral foundation. Those who interact with these leaders get to know and understand their basis of operating. Recruitment of new employees requires a standard based on good character, not just competence.

Character isn’t just a moral consideration. Character is also defined by how people serve, speak, and show-up. Character can be described as personality, pedigree, or practice. It is the “whole person”, not just what a leader does or achieves. Character is rarely aligned with charisma but is often associated with caliber.

There are many examples of leadership character being excused when results are good. It takes a lot of courage to challenge character even when results are outstanding. Thankfully, there are also examples of organizations where character is paramount in the way results are achieved.

Bringing the spotlight onto character cannot simply be achieved by adopting a competency model or defining a set of organizational values. Although both are excellent. When leaders of character are promoted, honored, and rewarded, organizations and everyone connected with them benefit. Keeping the focus on character will ensure high caliber leaders in the 21st century.

Disruptive leadership of the interim kind

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disruptiveMarshall Goldsmith famously authored a book titled, What Got You Here Won’t Get You There, and disruptive leadership is a worthy application of this sentiment. The need to bring disruption to the supply, application, and performance of leadership has never been greater. Organizations need to consider who is leading, what they are leading, and how they are leading. Along with these considerations, they need to look at options for engaging the best leaders.

Why is it that many organizations still only rely on permanent leaders or consulting firms to lead major transformations? Permanent leaders are known resources, and they know the organization well – so it makes sense for them to lead. But, as John Kotter discusses in his book Accelerate, maybe a dual operating system with hierarchies and networks should be considered when considering leadership of organizational change. This is a proposed remedy to leading change and business as usual in parallel and tackling the limited supply of good change leaders. Consulting firms certainly have talented resources to help organizations through change. They also have overheads, proprietary methodologies, and scale, which may or may not be advantageous to the client. Serious consideration of interim leaders is way over due in the USA.

If the term “interim leader” is used in a conversation with many recruiters these days, it is rarely understood. It is either interpreted as a temporary job filled with a holding resource until someone good enough can be found for a permanent role. Or it is interpreted as a mere contract job or a short-term consultancy position.

Interim leaders are serious players in facilitating and leading organizational change. Hiring an interim leader is like engaging Nick Foles as a quarter back to lead the Philadelphia Eagles on a Super Bowl quest when your franchise quarter back is sidelined for the rest of the season through injury. And we know how that one turned out …! An interim leader has proven leadership skills, outstanding technical and strategic capability, a tested personality, and a focused mindset.

It’s time for recruiters to consider the option of an interim leader way more seriously. They need to get educated on what an interim leader is so that they can lead the discussion about what’s best for the organization. Recruiters need to become familiar with interim leader skillsets and capabilities. Maybe reading a few case studies of what interim leaders can deliver would be a good start. They certainly need to know how to source interim leaders.

Disrupting the way that organizational change leadership is resourced is a game changer. Hiring an interim leader can liberate the permanent leadership, inspire the workforce, and accelerate strategic goals. Hiring an interim leader to provide strategic change leadership through a major transformation, or to deliver significant projects, is a contemporary way to get the best out of the best. In Kotter’s model of hierarchy plus network, the occasional interim leader is a major asset.

Focal Leadership is now offering a 1-day workshop for senior business, HR leaders, and recruiters. This workshop is based on the upcoming book, Rise of the Gig Leaders, which defines the business case for interim leadership. If you would like to know more, please use the contact form on the Focal Leadership website www.focalleadership.com.

6 leadership essentials in a CV

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leader resumeA CV is often the first introduction to the leadership quality of a man or woman and their reputation, career history, qualifications, and achievements. Sometimes through networking, a conference, or a recruiter introduction, an alternative introduction is provided. When companies are looking to add talent to their ranks, provide a framework for development, or fill succession plans, what are the 6 essential attributes to look for? Note – these may not be captured by an electronic screening tool, a 9-box grid, or an associate tasked with providing a shortlist!

1. Track-record of success
This may not necessarily be equivalent to long duration in corporate roles! Measured successes, tangible results, and notable transformational achievements, are all critical to knowing whether the individual can deliver. A CV that paints a picture of achievement over a 10-year career in the same company, may not be as impressive as one that shows significant achievements in 4 companies over the same time-period. A lot depends on what the company is looking for – most don’t necessarily want a slow burner, but neither do they want a firecracker.

2. Agility
A leader who has been with the same organization for 20-30 years may demonstrate commitment, application, and an ability to assimilate. But this may also demonstrate a degree of comfort, homogeneity, and myopia. The company may value stability and long-term application, but this may not provide differentiation in change, pace, and agility? This last attribute is often argued as one of the most sought after in leaders, and it is frequently learned through experiences that expand, challenge, and discomfort them. These can be found in multiple CV references, either in the same company or in many.

3. Diversity
Companies undoubtedly benefit from diverse leadership – it brings a broad range of perspectives, applications, and experiences. It is also vital that leaders develop diversity within themselves – working in different industries, geographies, and possibly careers. Continual learning is a mark of an exceptional leader, and a CV that demonstrates this will bring the benefits of diversity to the role.

4. Distinctiveness
Any good leader needs to know what he or she is good at. And a CV should demonstrate a theme throughout of how the leader’s qualifications, experience, and ambitions, have brought value to companies and individuals. A leader should be able to articulate very clearly what core skills they excel in, and how these have been developed throughout their career.

5. Gravitas
A leader’s CV should show an outstanding list of qualifications, connections, and accolades. Some of the latter might be contained in references or letters of recommendation, but they should be forthcoming regardless. Credible companies worked for with significant roles and responsibilities held, are baseline requirements for a leader’s CV.

6. A story
Reading a CV should create some intrigue and fascination as well as being statistically impressive. It’s always more beneficial to have interesting leaders with stories to tell, than it is to have a dry personality who has just delivered objectives asked of them. Leaders lead people, and people respond positively to a leader with stories.

Focal Leadership (www.focalleadership.com) has helped clients to appoint, develop, and promote leaders within the context of an overall leadership development architecture which is informed by the 6 elements above.

The man or woman behind a leader

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leader shadowThe term ‘leader’, can sometimes get in the way of understanding the man or woman behind that title or designation. Just because someone is called a leader shouldn’t define them inconsistently from the man or woman that they are.

For example, being called ‘the leader of the free world’ is a very big accolade and responsibility. But the man or woman behind that title is more important than the title itself. Having a title without a nature and disposition to match it opens a person to ridicule and mistrust.

Being called a leader at work is a privilege and carries significant expectations. He or she needs to set an example, be an inspiration, communicate a vision, know how to mobilize others, and be respected for their achievements. People who are called ‘leaders’ and who do none of these things should do some serious naval gazing. There are some people who realize their short-comings, chew on humility, get some development, and apply themselves to be better. There are also some who can’t recognize their deficiencies and need others to coach and steer them towards improvement. And there are still others who just don’t care that their personality and performance doesn’t match the title, regardless of how many screaming voices, disconnected colleagues, and associated carnage lie in their wake.

The minute a person’s negative personality traits detract from effective leadership is the time for action, especially for those subject to that leadership. Say something! Rise above the negative and be your best! Work hard at trying to turn the tide! If all else fails – move on! (Don’t be a victim!)

Every person is unique, and every man or woman can bring something unique to good leadership. It may be compassion, ambition, influence, understanding, drive, or eloquence. The list of leadership virtues is long. For any leader, the important thing is to know their differentiators and allow these to flourish. The existence of leadership competency models can be helpful to promote certain behaviors, but they can also squeeze the individuality and uniqueness out of leaders. For a leader to be authentic and compelling, he or she needs to be themselves. The transparency and vitality of a leader is often what makes them attractive and effective – not their conformity to a model.

Consider the Wikipedia description of “The Emperor’s New Clothes” – a short tale written by Danish author Hans Christian Andersen, about two weavers who promise an emperor a new suit of clothes that they say is invisible to those who are unfit for their positions, stupid, or incompetent. When the emperor parades before his subjects in his new clothes, no one dares to say that they do not see any suit of clothes on him for fear that they will be seen as “unfit for their positions, stupid, or incompetent”. Finally, a child cries out, “But he isn’t wearing anything at all!” There are many leaders who find themselves in a similar position – they think that the title of ‘leader’ defines them, but everyone sees the man or woman behind the clothes of that title. For some leaders this is not a pretty sight, for others they truly are arrayed in a suit that befits the title.