Another View On Co-Accountability?

by Elisa SpainNo Comments

2014-11-07

Last week, one of the members of my CEO group sent this Facebook post to the group. And, much like the comments on the actual post, there was a mix of “isn’t this cool?” to the cynical, “what if the person has never done anything positive?”

The discussion caused me to pause. Vistage speaker, Michel Allosso, talks about giving a person TSP: Truthful, Specific, Positive feedback. Do it enough, he says, to earn the right to give constructive feedback. While Vistage Speaker, Balaji Krishnamurthy, teaches us co-accountability: The key to a successful organization is when members of our team have expectations of each other and hold each other accountable for meeting them.

What this Facebook post says to me is, perhaps the answer is to combine the two. I wonder if in the story I told last week, the reason Southwest Airlines has both a collegial and a co-accountable culture is because they combine both TSP and co-accountability…

  • Imagine what would happen in your organization if you had both?
  • What one action step might you take today to begin a journey down this path?

Elisa K. Spain

 

 

The Emperor's New Clothes

by Elisa SpainNo Comments

 

I have come to realize, duh… that the fairy tales we read as children were intended to prepare us for our adult lives. (Robert Fulghum was right, All I Really Need to Know, I Learned in Kindergarten).

A couple of weeks ago I wrote about The Other Side of Success, when confidence becomes hubris. The Emperor’s New Clothes is, in my view, the ultimate risk of this hubris.

The Emperor’s New Clothes is a short tale by Hans Christian Andersen about two weavers who promise an Emperor a new suit of clothes that is invisible to those unfit for their positions, stupid, or incompetent. When the Emperor parades before his subjects in his new clothes, a child cries out, “But he isn’t wearing anything at all!”

The emperor is so vain, he believes the tale. The adults are afraid to tell him the truth for fear the outcome may have consequences for them. Only a child tells the truth; he is too young to realize he is taking a risk by doing so.

To be a successful leader, one must be confident, have the courage to move forward even when questioned. And at the same time, the successful leaders I know also ask for feedback. They are constantly in touch with their constituents – customers, employees, vendors, advisors, family (after all it was a child that told the emperor the truth).

Recently I heard a new CEO talk about the changes he had made since assuming his position. He was proud of those changes and went on to say, “things are better because of these changes”. Yet, he hadn’t ever asked his users (customers, employees, vendors, etc.) what they thought. He believed it to be true, just like the emperor. I later had the opportunity to hear from some of his constituents, and they had a different perspective. For them, the changes had made their work more challenging. Which is true? I don’t know. What I do know is most of his stakeholders are telling the CEO what he wants to hear, not what they truly feel and believe.

Years ago, I saw the effect of this first hand. I was working in the investment business and several of the large institutions, like ours, decided to install a new software system for managing trust accounts. The system was built by a small company and it turned out they were better at marketing than at software development. Our largest competitor at the time was the first to “go live” with the new system. It was a disaster, such a disaster that they ultimately exited the trust business. I remember saying to my colleagues at the time “someone, probably several people, at that bank knew this was going to fail and they were afraid to speak up”.

I leave you with these questions:

  • What are you doing to solicit honest feedback in your organization?
  • What are you doing to foster an environment where your customers, employees, vendors and other stakeholders feel they can provide feedback without fear of consequences?
  • Do you have a “child” in your company and your life who is willing to tell you that you are naked?

Elisa K. Spain

 

What Happens When Steady-Growth Companies Stomp On The Gas Pedal?

by Elisa SpainNo Comments

Opt 3 Sept 14

When steady-growth companies decide to stomp on the gas pedal, especially with new leaders, it is convenient to assume the “old timers” are just fine and will take care of themselves while all else goes to growth. Be wary of unintended consequences…

When a company is young – it is all about growth – and everyone is in the same place. It is all about hunting (in the hunter/farmer view of sales). When a company is in steady growth, there is a mix of hunters & farmers, with an emphasis on farmers.

 

Then when there is a shift to fast growth, frequently with a new leader and/or new ownership with a new approach to governance, the focus shifts back to hunting, as with a start-up.

 

Except, it isn’t a start-up. There still are these established relationships between account managers and their clients. The needs of the tenured account managers and their tenured clients are different from the hunters bringing on new clients. Similarly, long tenured employees in operations, and other support areas, are particularly impacted by the refocus on growth.

 

It is convenient for leaders to assume the “old timers” are just fine and will adapt, while all else goes to growth. Not true. We all want to feel valued and important.

 

So the question for the leadership of any established company on a fast growth path is, “How do you engage, (i.e. win the hearts, not just signatures on legal documents) of high performers and key clients?”

 

And the question for a board of directors is, “What responsibility do you have to steward the growth strategy in a manner that does not result in unintended consequences to the culture?”

What Makes A Successful Business?

by Elisa Spain1 Comment

Opt 6 Sept 7

What makes a successful business? Is it vision; is it strategy, or ??

Geoff Smart and Randy Street, authors of the book Who, make a compelling case for the value of management talent as the #1 determinant of business success. In their interviews of 400 CEOs and business leaders, they found that 52% rated talent as #1, followed by 20% for execution, 17% for strategy and the good news, only 11% for external factors.

Additionally, in the research they did with the University of Chicago in 2007, they found that the CEOs who make money for investors are those that have both high EQ (Lambs) and work hard, are persistent, set high standards and hold people accountable (Cheetahs). And surprisingly to some and somewhat controversially, those that accentuate their Cheetah skills were successful 100% of the time.

So, does this mean that we, as leaders, should abandon vision and strategy altogether, hire great people, set high standards, hold them accountable and we are done?

Not so simple in my experience. What I observe is great people want to work for great companies. And, great companies not only have high standards and hold people accountable, i.e. operational excellence, they also can answer Simon Sinek’s, “Why?”.

So, yes, hire great people, and give them and your customers a reason to want to work for you and do business with you.

 

Elisa K. Spain

 

 

Here's To The Crazy Ones…

Here's To The Crazy Ones…

by Elisa SpainNo Comments

Opt 7 Jump

As my regular readers know, I collect quotes, share them here and on my website. Typically I publish one quote a month, but this month you get a bonus quote.

The last few weeks I have been on the theme about leading change. The quote below from Steve Jobs is a wonderful reminder that ideas only come and change only happens, when someone has the courage to disrupt the status quo.

“Here’s to the crazy ones. The misfits. The rebels. The troublemakers. The round pegs in the square holes. The ones who see things differently. They’re not fond of rules. And they have no respect for the status quo. You can quote them, disagree with them, glorify or vilify them. About the only thing you can’t do is ignore them. Because they change things. They push the human race forward. And while some may see them as the crazy ones, we see genius. Because the people who are crazy enough to think they can change the world, are the ones who do.”

Steve Jobs

Here’s to the crazy ones! I hope you are one of them and if you aren’t, that you at least have one of them working for you.

 

Elisa K. Spain

The Other Side Of Change

The Other Side Of Change

by Elisa Spain1 Comment

7 May 4 imagesF7X46U34

 

As leaders, we are frequently driving change. Lots has been written on how to do it effectively. Two weeks ago, I published a blog about the challenges and opportunities associated with changing, or bending an organization’s culture.

And, while change can be good for an organization, tinkering sometimes may not. We all know the leader who loves change for change sake, whether it’s a new award system, a new comp plan, a new training program, a new sales structure, the key word is new. Change, for change sake. Harmless, perhaps. And perhaps not.

My experience is those of us who say we like change, are thinking “we like driving change”. I have yet to meet a person who says “I love having change thrust upon me”.

With this in mind, next time you are thinking about making a change in your organization, pause and ask yourself, “what is driving this desire for change”?

Is something not working or is something going on with me, perhaps I am bored? And if it ain’t broke, perhaps the best thing to do is to pause, before setting out to fix it.

 

Elisa K. Spain

Culture Doesn't Change, But It Can Bend

Culture Doesn't Change, But It Can Bend

by Elisa SpainNo Comments

Opt 1 2014-04-20 Blog

 

It is often said that culture change is the most challenging change one can attempt in an organization. In fact, Edgar Papke, Vistage Speaker and author of True Alignment, says that culture can only change when you change the majority of the people at the same time.

Hmm, does that mean if we aren’t willing to fire 1/2 of our team, we may as well not bother?

I say no. While I agree with Edgar that complete change will only happen with a complete change in players, culture does bend.

It’s hard; it takes a long time and can sometimes (often) be frustrating. Yet, the results can be worth it. Here is an eight step process (synthesized from John Kotter’s landmark book, Leading Change) that can serve as a template toward bending the culture.

  1. Create a Sense of Urgency
  2. Pull Together a Guiding Team – choose a powerful group with leadership skills, credibility, authority and a sense of urgency
  3. Develop a Simply Stated Vision for Change – paint the picture of how the future will be different
  4. Communicate – create a surprising, compelling and visual experience – strive to change feeling, rather than thinking
  5. Empower Others to Act – remove barriers, including people that are barriers
  6. Produce Short Term Wins – find them and celebrate them
  7. Don’t Let Up – press harder and faster after first successes
  8. Institutionalize the New Approaches/Behaviors – continually reinforce

Elisa K. Spain

 

 

 

 

When Was The Last Time You Went On A Date?

When Was The Last Time You Went On A Date?

by Elisa SpainNo Comments

Let´s get together

 

You are probably wondering why I am asking this question and what dating possibly has to do with a leadership blog…

Actually, this topic comes up frequently in my coaching sessions. Business it seems, is a lot like dating…

So, here are some dating and business best practices I’ve learned along the way:

  • Be authentic.
  • Be respectful.
  • Be clear on what you are looking for in a partner, a customer, an employee or a vendor.
  • Be clear what it is you bring to the table and be realistic. That high powered CFO may be great in a Fortune 500 company, but is she really what your $30mm company needs?
  • Put yourself in situations to meet new people that fit. No matter what anyone tells you, it’s not a game of numbers, it’s all about defining and measuring fit.
  • That wild guy or gal you wouldn’t bring home to Mom, is probably not going to be your SO or your best customer, no matter what he is willing to pay.
  • As soon as you meet “Mr. or Ms. right”, go out with someone else (when we get fixated on winning one partner, customer, employee, we can appear desperate. As Vistage speaker, Tom Searcy says, “play like you have nothing to lose.”
  • Go on a date with anyone once (okay, not someone you know is an ax murderer).
  • Go on a second date, if there was a spark of interest.
  • When she says she needs some time alone, or the prospect doesn’t get back to us right away, its not the time to call a day later and suggest coffee.
  • Once you have made a commitment, be committed.  Give your customer, employee, vendor a chance to right a wrong.
  • And.. when a relationship fails (or the service is consistently poor), don’t drag out the exit. End it, learn from your mistakes, decide what to look for next round and start the cycle again.

For an amusing, albeit somewhat crass, perspective on the subject:

http://www.buzzfeed.com/kristinchirico/ways-building-a-startup-is-just-like-dating

Elisa K. Spain

All That Matters Is Culture

All That Matters Is Culture

by Elisa SpainNo Comments

http://www.dreamstime.com/stock-photo-strategy-structure-culture-image26561510The theme in my Vistage CEO and Key Executive Groups for 2014 is “All That Matters is Culture”. Each meeting, the host shares a bit about how this applies in their company. Here are some of the comments I have heard so far…

  • We have a “can-do culture”. When I interview prospective employees, I ask questions that tell me how the person has demonstrated this in previous jobs.
  • Our core values reflect our culture. I have articulated ours to each employee and I am asking employees to tell stories about actions that have been taken that demonstrate how these core values resonate for them. For example, we have a value of integrity, I want to hear stories about how employees have made choices that reflect the integrity choice. I publish these stories so other employees see them.
  • We have a lot of temporary employees. When it comes to culture, I treat them the same as the full-time employees. I want them to know our culture and feel good about working for our company.
  • We share our core values and our culture with our customers. The more they know about us, the more effectively we can serve them. Similarly with our suppliers, when we share common values with our suppliers, we deliver a better product.
  • In the past, I had some talented people who didn’t fit our culture. It was difficult to make the decision that these people had to go. And, once I made this decision, the performance of the rest of team improved exponentially.

I will add to this list later in the year. Meantime if you have stories to add, please click on comments.

Elisa K. Spain

 

The Queen (Or King) Of Denial

The Queen (Or King) Of Denial

by Elisa SpainNo Comments

opt 8 Internet LLD-Queen-of-the-Nile-01001918There is a country music song entitled Cleopatra, Queen of Denial, recorded in 1993 by Pam Tillis. While the lyrics talk about a love relationship gone wrong (are there any country songs that don’t?), the title stayed with me because it reminds me sometimes of what I see in business.

What I observe is that both kings and queens of denial sometimes confuse optimism with denial. For example:

  • “Yes we are losing money and if we get that next deal, we will turn things around for good.”
  • “I know, Joe or Jane employee is not up to the challenge now that our company has grown, but I can make it work anyway.”
  • “We have always done it this way, if we continue to do things this same way, things will change.”
  • “Our business has grown about 4% YOY the last 10 years and this year, we will grow 20%, without any new capital.”
  • “I know the industry has matured, and prices have fallen as a result, but if we keep offering customized services, we will be able to command a higher price.”

I am sure you can think of others. And, my further observation is that denial is a powerful drug. As with most other drugs, the user won’t stop using until he or she is ready. No one can tell us we are in denial, we must see it for ourselves. One benefit Vistage members have is their chair and their fellow members will keep holding up that mirror until one day, we do.

 

Elisa K. Spain