How Do You Know When to Go With the Flow?

by Elisa Spain Comment Closed

Option 1 _ Sometimes, the best thing to do is to go with the flow and let things play out.

Option 2 _ Sometimes, the best thing to do is to choose a desired outcome and lead others toward that outcome.

How do you decide?

In my experience, business owners have the tendency to choose Option 2. Owners get to decide the outcome they want and when passionate about that outcome, they choose to lead others toward it.

Similarly, professional CEOs, especially those leading PE owned companies, generally choose Option 2. They have a clear mission from the PE board, have incentives that are aligned with the board, and therefore choose to lead others toward their desired outcome, leaving as little to chance as possible.

On the other hand, my experience with executives is, it varies. And, since executives have both their careers to think about and their business to think about, they have two situations for which this choice must be made.

Some executives are willing, and actually prefer, to go with the flow, letting their owners or their boards, or their CEO decide the direction. This works best when the decision makers are in fact choosing Option 2, i.e. they are clear about the desired outcome.

  • But, what happens when the decision maker and those charged with implementing the decision are simply going with the flow? Is there even a direction, or simply a flow?
  • And, what happens when going with the flow provides financial rewards, but not psychic rewards. What then?

Everyone needs a purpose, a “why”. Some of us are comfortable deriving that purpose from others. Some of us need to set our own course.

The challenge for each of us is becoming clear which choice works for us and then putting ourselves into situations where we can be aligned with our choice.

Why Vistage Works

Elisa K. Spain

 

Not Asking Has a Price Tag

by Elisa Spain Comment Closed

We Vistage chairs often talk about the importance of staying curious, of asking questions. Often as leaders we tell ourselves that the only “cost” of being directive vs. asking questions are soft costs. For example, we make assumptions that are wrong and have to start over when we learn we are headed in the wrong direction.

What about the hard costs of heading in the wrong direction?

What about when we as leaders, march into a new area, or start a new initiative, everyone follows, and we are headed in the wrong direction? Money is invested and then we have to start over. If only we had asked a few questions up front, we tell ourselves afterwards, the price tag associated with the failure might have been avoided.

This TED talk, titled simply, “If you want to help someone, shut up and listen!”, by Ernesto Sirolli, brings this point home in a global way. Ernesto Sirolli is a noted authority in the field of sustainable economic development and is the Founder of the Sirolli Institute, an international non-profit organization that teaches community leaders how to establish and maintain Enterprise Facilitation projects in their community.

What does this talk have to do with leadership? A lot.

What does it have to do with business? I’ll let you decide that.

Why Vistage Works

Elisa K. Spain

Quiet

by Elisa Spain Comment Closed

Quiet time, a luxury or a necessity? Call it meditation or simply call it quiet time. Taking time to clear the mind, we are told by our spiritual leaders, is the secret to awareness and peace. For years, perhaps centuries, we humans go to mediation classes, yogis, ashrams, the Dalai Lama, etc. in search of The Way.

More recently, our physicians have begun to tell us, meditation will lower your blood pressure, protect from cancer, manage pain and more. Mayo Clinic’s website contains this article on the health benefits of meditation.

And, in this powerful article, the author reminds us our businesses will benefit too. Because, when we think less, we think better.

Summer is a great time to experience quiet, to test this out and see if perhaps a few moments of quiet each day could add value to our lives.

 

Why Vistage Works

Elisa K. Spain

What If That’s Not How I See it?

by Elisa Spain Comment Closed

How often are we in situations where what we want and what others want are not aligned? We make assumptions daily, mostly about other people. These assumptions enable us to take shortcuts and at the same time, they cause disagreement that perhaps wasn’t there to begin with.

  • We assume a person attended or didn’t attend an event because…
  • We assume a person responded to us a certain way, because…
  • We assume a person took an action or didn’t take an action because…

What if instead of assuming, we paused and asked:

  • What is the reason you made this choice or took this action?
  • When your customer complains about “service”, do you probe to understand what is really going on?
  • When we see something, as the TSA reminds us, do we say something?
  • When an employee behaves a certain way, do we ask what is going on?

And when what we want seems far from what “they” want, what if we asked and explored the possibilities..

Why Vistage Works

Elisa K. Spain

As We Search For What Matters, Must We Choose?

by Elisa Spain Comment Closed

The Choice

The intellect of man is forced to choose
Perfection of the life, or of the work,
And if it take the second must refuse
A heavenly mansion, raging in the dark.
When all that story’s finished, what’s the news?
In luck or out the toil has left its mark:
That old perplexity an empty purse,
Or the day’s vanity, the night’s remorse. 

William Butler Yeats, 13 June 1865 – 28 January 1939

I came across this poem some time ago and was reminded of it in a recent discussion in my Vistage groups about “what matters”. Today we constantly talk about achieving balance; we perceive that it is the stress of modern times that creates this challenge. Yet this poem was written in the early 20th century. A reminder that this quest is the human condition, a daily challenge of choice. Here are the questions that come to mind:
  • Must we choose between success in life and work?
  • Or is it the search for perfection of one or the other that forces the choice? e.g. Albert Einstein was portrayed by his biographers as a poor husband and father. Was he, or was this the judgement of the biographers?
  • As we search for meaning in our lives, must we distinguish between what defines “life” and what defines “work” or is it possible to simply pursue what matters to us?
  • On this day devoted to mothers, what are you telling or demonstrating to your children about this question?

 

Why Vistage Works

Elisa K. Spain

Care, Attention, Competency

by Elisa Spain Comment Closed

Care, Attention and Competency (CAC), these are the watchwords of the client service model for one of my Vistage member’s business. This business is in the construction industry and as he explains, bottom line of what they deliver is service, not construction.

A couple of weeks ago I blogged about the progression (regression) from Better, Faster, Cheaper to simply faster and cheaper. So where does CAC come in? Perhaps as several of my readers responded, the bifurcation is already happening, certainly in the consumer world (think airlines premium seats/status vs. economy/discount seats), and beginning in the B2B world. If this is so, then in order to deliver better, CAC must become the standard.

What exactly does this mean? For me it means, we meet the customer where they are, we provide care, in the manner they want us to show it. We give them our attention when they ask, and not wait until they demand it. And, we remind ourselves that competency, while the baseline, isn’t enough. In fact, studies show that customers who receive care and attention are more tolerant of errors, because they trust we will resolve them.

In short, CAC begins with the Golden Rule, and reaches it’s full value with the Platinum Rule. The Golden Rule implies the basic assumption that other people would like to be treated the way that you would like to be treated. The alternative to the Golden Rule is the Platinum Rule: “Treat others the way they want to be treated.”

Here are the questions I leave you with:

  1. Assuming the bifurcation is happening, where is your business on the continuum?
  2. Are you focused on Faster/Cheaper or are you seeking to differentiate by offering Better?
  3. How might CAC apply, or not, to your service delivery? And are you delivering by the Golden Rule or the Platinum Rule?

 

Why Vistage Works

Elisa K. Spain

Leadership Quote: CEO’s Job…

by Elisa Spain Comment Closed

This month’s leadership quote:

“CEO’s job is to grow it, not run it.”

—Paul Orfalea, founder of Kinkos

Easy to say, hard to do.

Whether owner or professional CEO, the temptation is to run it, to make the important decisions, because after all, we know what to do. People often say that Steve Jobs was in the weeds, involved in every key decision. And, how could this be true if he built the largest company in the world? Not physically possible. To me, he focused on growing it, not running it. It’s just that coming up with the next big idea in his business was what it took to grow it; and to some this appeared as though he was too involved.

  • What does it take in your company to grow it?
  • Is this what you are spending your time doing?
  • If you are spending time doing something else, what changes are necessary?

Why Vistage Works

Elisa K. Spain

Better, Faster, Cheaper

by Elisa Spain Comment Closed

For many years, the adage was “do you want it right, on-time or cheap, pick two”. And then somewhere in the 80’s and 90’s, perhaps associated with the dot.com era, marginal costs moved close to zero in some industries. Because of this, we began to expect all three. In fact the new adage became “better, faster, cheaper”. And, some believed we had moved to an era where all three were in fact possible.

Or did we?

I wonder if instead, more and more businesses, driven by customer unwillingness to pay for quality, have simply picked two on our behalf, with the two being cheap and fast. We see this happening in B2B, B2C and B2Self (i.e. w/internal corporate customers) three examples:

  • Amazon delivers using their own drivers because they are cheap. Amazon made this choice because they believe what we consumers want from them is fast and free delivery and when quality of logistics suffers (packages left in strange places, in the rain, etc.), we are willing to accept that cost.
  • Airlines overbook and sometimes have to deny boarding to passengers or in a recent highly profiled United airlines case, remove passengers to accommodate crew. This recent scandal with United brought attention to the consequences of this (and while this particular situation captured on video was awful, we all know it isn’t just United Airlines that overbooks and removes passengers).
  • HR support and IT support is outsourced in many, perhaps most?, large corporations. Ask any employee or user of IT which 2 of the three choices they are getting?

In an article entitled “Why Flying in America Keeps Getting More Miserable” Matthew Yglesias of Vox news sums this up well when he says, decades’ worth of evidence suggests we prefer cheap and safe to pleasant. Pleasant, defined as available seats all the time combined with higher prices to cover the costs, is a price we pretty clearly could bear as a society if we chose to, but as consumers we have collectively and repeatedly chosen not to. Instead, wherever competition has reared its head in the industry, the mass market has aimed for low prices above all else, followed by a vigorous culture of collective complaining when something goes wrong.

Where will this take us in the future…

  • Will this trend toward faster and cheaper continue to drive most products and services?
  • If it does, will there be exceptions where quality is the driver? The obvious exception is medical products and medical care, or is it?
  • Will some markets bifurcate such that parallel services will develop where consumers are willing to pay for quality?

What are the implications for your business?

Why Vistage Works

Elisa K. Spain

 

What Does “Implement Dictatorially” Mean?

by Elisa Spain Comment Closed

A few weeks ago, I posted the following as the leadership quote for the month of March:

“Decide democratically, implement dictatorially.” —Peter Schutz, CEO of Porsche 1981-1986

One of my readers replied with the following comment:

“Schutz got the first part of that quote right. I however believe you implement collaboratively.”

In our conversation that followed his comment, I was reminded how everything is subject to interpretation. My reader heard Schutz say “command and control”.

What I hear in this quote is, gather input in the planning and then once the decision is made, get it done. It is incumbent upon a leader to hear input from those impacted by a decision. Two reasons for this:

  • to inform the decision, perhaps others see opportunities or risks that the leader does not
  • to allow those impacted to feel heard, to weigh in

And, it is incumbent upon a leader to move quickly once the decision is made. The time for feedback is over, it is time to execute and for all parties involved to move together toward implementation so as to maximize the benefits of the decision once it is made.

How do you see this question?

Why Vistage Works

Elisa K. Spain