Leadership Quote: The Rate Of Change…

 

This month’s leadership quote:

“If the rate of change on the outside exceeds the rate of change on the inside, the end is near.”

-Jack Welch

When things are going well, it’s easy to become complacent, even arrogant. We become married to a point of view. After all, we built our business based on these beliefs and it has worked. Often it is our own people who tell us that the old way may not be appropriate today. Their message, as Jack reminds us, is the rate of change outside might dictate the need for more change inside.

The question is, “are we listening?”

 

Elisa K. Spain

Vision Is Not Enough…

 

Successful leaders have both vision and execution.

Lots of people have great ideas, and in my experience, it’s execution that creates success.  Why ‘Big Picture Only’ Leaders Fail.

And, what exactly defines execution? Last week, I began a conversation about one of the key components of execution – Capacity: Is It Capacity Or Is It Making Choices?

Continuing that theme, equally important to execution is Focus.

Successful leaders know they must set a vision – so there is a destination that their team can rally around. Once the vision is defined, they work with their team to set a business strategy to achieve the vision and then, they and their teams….

Focus, Focus, Focus on what needs to happen to get from here to there.

Successful leaders are able to tune out distractions and focus on moving forward. They have the ability to differentiate between a distraction and important new information and act accordingly. They know what needs to get done, how to do it and, they have the ability to inspire their teams to stay focused and avoid fatigue when things don’t move at the pace they want.

More on execution in coming weeks.

Elisa K. Spain

 

Vistage CEO Confidence Index: Concern Due To Economic Slowdown In Q2 2015

 

The quarterly Vistage Confidence Index is now available.

CEOs concerned by slowdown in economic growth.ci-q215

The 1,434 U.S. CEOs surveyed from June 8-17, 2015 in the Q2 2015 Vistage CEO Confidence Index expressed greater concern about the dismal pace of 1st quarter growth in the economy, and more importantly, did not anticipate the same strong rebound as occurred last year. The Vistage Confidence Index was 99.0 in the 2nd quarter of 2015, below the 1st quarter’s 105.8 and last year’s 101.0. The recent economic weakness was due to temporary factors, including a harsh winter, a port strike, and a surging dollar.

Even though most CEOs anticipate continued economic growth, there is a widespread sense that the economy is still vulnerable.  The recent decision by the Fed to hold interest rates near zero also reflected that same potential vulnerability. As a result, firms anticipated slightly less growth in their sales revenues and profits, and planned on adding slightly fewer workers to their payrolls and marginally reducing the pace of their capital investments. CEOs can be best described as cautiously optimistic.

Below are some key highlights from the Q2 2015 Vistage CEO Confidence Index (all members surveyed):

  • 46% of CEOs reported that the economy had improved, down from 61% in the 1st quarter.
  • 35% of CEOs anticipate an improving economy in the year ahead, down from 45% in the 1st quarter.
  • 35% of CEOs said that locating, hiring, training, and retaining staff was their most
    important task, cited twice as frequently as any other issue.
  • 46% of CEOs plan to increase investments in new plant and equipment, barely below last quarter’s 48%. Investment plans were on average more favorable during the past six quarters than any other time since the peak years of 2004-05.

Elisa K. Spain

Is It Capacity Or Is It Making Choices?

 

Working with CEOs over the last dozen or so years, I observed several common traits in those who successfully grow their businesses. I have written in the past about the importance of having a vision, having the right people, and having strong execution. Another more subtle characteristic shared by successful leaders… They seem to have an incredible “capacity”.

Webster defines capacity as…

  • the potential or suitability for holding, storing, or accommodating 
  • an individual’s mental or physical ability
  • the faculty or potential for treating, experiencing, or appreciating
  • the facility or power to produce, perform, or deploy:  maximum output

It’s this facility for maximum output that I am referring to. The ability to take on more, to handle more stress, to be present regardless of outside circumstances, to simply do more. It’s more than ability, it’s well, capacity.

And, here’s what I observe… while it appears that these leaders can simply handle more and do more than others, it is also their ability to choose. To make a choice and accept that when they choose, they may disappoint someone. And, they allow themselves to be okay with that.

Elisa K. Spain