Leadership View #8: Merging Two Organizations…

Leadership View #8: Merging Two Organizations…

by Elisa SpainNo Comments


2013 06-02 iStock_000003052514XSmall TeamworkLeadership View #8:

Merging two organizations gives a leader an opportunity to form a new culture / leadership team / operating style.  A common mistake is to adopt one or the other, thereby creating winners and losers.  

This leadership view is actually a continuation of Leadership View #7 where I talked about getting buy-in during a merger. Once we have that buy-in from the early majority, the next question to answer is:  what will be the culture, leadership and operating style of the combined group?

Remembering that a “merger” can mean combining two companies, two groups, or simply adding a significant number of new team members.

In my experience the culture bends. Last year, I added several new members to my Vistage CEO group and most of these new members came from other CEO groups where they had been members for some time. The groups they came from had their own culture, operating style and formal and informal leadership.

Here is what I learned from that experience.

First, the integration must be intentional. The people that were there first, feel a sense of ownership of the group. The new people want to add value. The challenge is creating situations that allow for both. The following steps worked for us:

-We form workgroups including members with various tenure and personality styles – sometimes the official leader was from the new group, sometimes from the old.

-New members were given the opportunity to showcase their expertise in a way that helped the group.

-We recognized that groups follow Bruce Tuckman’s model of forming, storming, norming, performing and they do it continuously. The merged group naturally moved through this process at it’s own pace.

The result: The group today is an integrated group with many of the same values as before, yet with updated norms and a new culture, well on its way to high performing.

 

Elisa K. Spain

 

Leadership Quote: Most People Need Repetition

by Elisa Spain2 Comments

2013 05-26 Ribbon on Finger Stock_000013061976XSmall (1)Once again, I am taking a brief pause from the Leadership Series for the monthly quote. The series will return next week with Leadership View #8.

This month’s leadership quote: 

Most people need repetition more than instruction.

I had a clear reminder of the importance of repetition last month. One of my Vistage members noticed we were neglecting some of the tenants of our group’s Operating Agreement and called it out in a meeting. His noticing led to a rich discussion amongst members of that group, and one of the members said it well: “Just like diet and exercise, we know what to do and sometimes we need a reminder”.

In our busy lives, we are mostly focused on the urgent (hopefully it is the urgent and important). If we want to pay attention to the Important, Non-Urgent issues in our lives, we need reminders. Whether it is our Vision, our Mission or Operating Agreements that we share with our teams, or the commitments that we make to our spouses, life partners or family; we all need that repetition to keep us focused.

As a reminder,

Most people need repetition more than instruction.

What do each of us need reminding of today?

Elisa K. Spain

Leadership View #6: Some Problems Can’t Be “Solved”

Leadership View #6: Some Problems Can’t Be “Solved”

by Elisa SpainNo Comments

2013 05-12 Fresh PerspectiveiStock_000019408214XSmall Leadership View #6:

Some problems can’t be “solved” (and, hopefully, made to go away) – they must be managed and may require the leader’s repetitive attention and time.

As leaders and managers, we have been taught to find the root cause and fix the problem. This Leadership View seems to fly in the face of that.

What do you mean “some problems can’t be solved”?

For me the key word here is repetition. For anything to be sustainable, it must be repeated. We humans get distracted, forget what we learned and have to be reminded. This is what Vistage is all about. Our members hear from a speaker 8 times a year. Do you really think each speaker brings something new to the table? Rather, they often are reinforcing a similar message. And, we hear the message differently depending on where we are in our lives and our businesses at the time. An entrepreneur leading a start-up will hear a leadership message differently 10 years later when he or she is challenged with building a leadership team that will lead to a sustainable enterprise.

I asked one of our long term Vistage members recently if he had ever considered leaving Vistage. His answer was “never, I learn something at every meeting, every one-to-one.” He leads a highly successful, high growth business. My belief is he learns something new each time, because he comes with different ears each time.

The same is true for the people that work for us. Some problems can’t be solved, because things happen. Life isn’t static and our businesses and our processes aren’t static. Last year in a post entitled “Is Your Leadership Team Your Co-Advisor“, I talked about the DIME Method: Design, Implement, Monitor, Evaluate. For me the repetition speaks to the Monitor and Evaluate part of the continuum. As problems get solved and things change, we must monitor, evaluate and then design again.

As you mull over this idea that problems can’t be solved, I encourage you to ask yourself the following questions:

  • When was the last time we monitored or evaluated the systems we have in place?
  • Are we doing things, “because that’s the way we have always done it”?
  • What is the root cause of the problems that exist in my company today? Which of these require my repetitive time and attention?

Elisa K. Spain

 

A 45 Year View Of Leadership

A 45 Year View Of Leadership

by Elisa Spain2 Comments

Flowers purple crocus in the snow, spring landscapeThis past Thursday was the first day of spring and while here in Chicago it still feels like winter, I did see a crocus today. Spring, for me, represents new beginnings.

With that in mind, I am launching a 15 week series entitled “A 45 Year View of Leadership“, honoring my friend, Marshall Carter. Marsh is the current Chairman of the New York Stock Exchange, and retired Chairman and CEO of State Street Bank. In addition to his corporate leadership roles, Marsh was a military leader and received the Navy Cross and a Purple Heart.

The last time I saw Marsh, he shared that he is a regular reader of this blog and he gave me a document entitled, “A 45 Year View of Leadership“.  He said “do whatever you want with this”. The document is a list of 15 points. Although I wanted to write a book of his stories, this wasn’t something he wanted. So we agreed that I would write this blog series, honoring him instead with my stories that support his words.

Marsh Carter’s Leadership View #1:

Be cautious about applying your own, or someone else’s, successful leadership traits and techniques to different levels of organizations and/or different cultures.

Marissa Mayer, CEO of Yahoo’s recent pronouncement that all employees must come to the office, is a perfect place to start the discussion about applying your own, or in this case, someone else’s successful leadership techniques. While I have no idea whether this is the right thing for Yahoo or not, what I do know is it may or may not apply to other companies. Yet, because Marissa is CEO of Yahoo, and visible in the press, the CEOs I work with are all asking themselves if they should follow suit.

Which brings us to Leadership View #1, and its key word, culture. What works in one culture may not apply in another. Organizations have a style just like individuals. Some organizations and individuals are more collaborative; other organizations and individuals are more effective with individual contributors. In fact, Susan Cain, author of Quiet: The Power of Introverts in a World that Can’t Stop Talking, discovered in her research that pure introverts whose contributions to an organization are individual, e.g. programmers, are actually more productive when they work from home or in a private office. Studies show their productivity goes down when they are forced to work in shared spaces.

Before we rush into following Ms. Mayer’s leadership techniques, or perhaps our own from a previous situation, I encourage us to pause and follow Marsh’s sage advice in View #1, and ask:

Am I cautious about applying leadership lessons from one situation to another?

I would love to hear your thoughts.

 Elisa K. Spain

Diversity Or Integration, What's The Difference, Why Bother?

Diversity Or Integration, What's The Difference, Why Bother?

by Elisa Spain1 Comment

2013 03-10 DiversityStock_000014186302XSmallLately I have had a number of conversations with the leaders I work with about the challenges of adding diversity to their organizations. Diversity comes in several flavors. There are the traditional forms of diversity – gender, race, ethnicity and sexual preference. It also comes when someone from the outside joins an existing culture.

Some organizations handle this “integration” well and some don’t. Why?  My sense is the answer lies in how intentional the leader is about both the spoken and unspoken characteristics of their culture.

The word integration is rarely used today. It harkens back to the 1970’s when schools were being “integrated”. Fights broke out, learning became challenging and it was largely viewed in retrospect as an experiment that failed. And, this “experiment” for me provides learning for leaders who want to diversify their organizations.

Integrating- Merriam Webster “to form, coordinate, or blend into a functioning or unified whole”

Isn’t this exactly what we are wanting to do when we diversify? And…Diverse teams are hard…they are harder to build, are unlikely to come to consensus and are more likely to have conflict.

So, why bother?  Because… they are harder to build, are unlikely to come to consensus and are more likely to have conflict, they make better decisions. Research studies prove this.

What to do?
Diversity is not always the best approach. Homogeneous groups are easier. Because of their similar backgrounds, preferences and styles they are likely to agree and move forward quickly.
  • If the goal is getting more of what you already have, then a homogeneous group may be the way to go.
  • If the goal is innovation and critical thinking, you are more likely to get there with a diverse group.

If you decide you want to build a diverse team, first begin by defining what you are looking to accomplish with the diversity. Then ask yourself the following questions as you begin to form, coordinate, or blend into a functioning or unified whole:

  • Do I know the backgrounds, preferences, and styles of current team members?
  • What actions do I need to take to learn this information about my current team?
  • Have we defined our culture? And, even if we have, what are the unspoken characteristics of our culture?
  • What actions do I need to take to learn this information about my culture?
  • What on-boarding actions do I need to take to achieve integration?

Elisa K. Spain

 

Disappearing Jobs, Does It Matter?

Disappearing Jobs, Does It Matter?

by Elisa Spain2 Comments

Sign dollar and the books on scales. 3D image.Last month I attended the Vistage International Conference during which Michael Milkin presented the Milkin Institute research on the changing U.S. demographics.  I was struck by the data change in the number of unskilled jobs. In 1950 there were 3 unskilled jobs for every 1 skilled job. Today, there are 4 unskilled jobs for every 1 skilled.

Michael postulates that this is the reason why the American dream is dead – it used to be you work hard and you get ahead. Today while hard work still matters, education and skills come first.

In my opinion, this also explains the sticky unemployment numbers.  At the same time, my Vistage members tell me  finding talented people continues to be challenging. In short there is a war for talent, while millions remain unemployed.

You might ask, so what is the leadership question? Isn’t this a global problem, not a leadership topic?

Here are my leadership related wonderings:

  • At what point does it become cost effective for companies to create their own educational programs?
  • When and how will it become cost effective for small/mid-sized companies to provide training via entry level unskilled jobs?
  • As robots continue to replace workers, what will be the impact on small/mid-sized companies capital requirements?
  • As the mismatch between job opportunities and qualified employees grows, how might this impact both immigration and emigration?
  • As the world becomes less dependent on geography, how might employers match their jobs with qualified individuals worldwide?

 

Elisa K. Spain

 

Is It Possible To Be Too Lean?

Is It Possible To Be Too Lean?

by Elisa Spain4 Comments

2013 02-17 Frustrated Office Worker iStock_000015900242XSmallWhen the “great recession” began, companies got lean and they went there quickly. This worked, for employers, owners and employees.  Now 3+ years into recovery, lean continues while sales have grown. The result is increased profits.  So….what’s the issue?

I have been hearing a troubling refrain lately. I began hearing this from middle managers in large public companies I work with; and I am now hearing it from small and midsize companies.

Middle Managers say it like this:  “My team is exhausted and the workload continues to increase. I am struggling with how to become more efficient than we are and I am seeing signs that we are becoming less effective”.

High Performing employees put it this way: “The saying used to be, the best thing you can do for a high performing employee was terminate a low performing employee. I don’t feel this way anymore. In fact, quite the opposite. When anyone leaves, I groan. I groan, because I know there is going to be more work for me and I am struggling to get the work I already have done”.

As business leaders and owners, I encourage you to ask:

  • Are my middle managers and high performing employees saying similar things?
  • Am I listening?
  • Am I perhaps too lean? What are the risks to production, client servicing, morale and ultimately profitability if I am?

Elisa K. Spain

 

Do Titles Matter?

Do Titles Matter?

by Elisa SpainNo Comments

Last week I had the chance to listen to Vistage speaker and futurist David Houle. David talked about coming changes, many of which are driven not only by technology, but by Millennials entering the workforce. We are already seeing flattening organizations and a move away from hierarchy and titles and offices and cubicles and all the stuff Baby Boomers and Generation Xers are comfortable with. In entrepreneurial companies, which make up the majority of our Vistage groups, hierarchies never existed. These companies pride themselves on being nimble and quick to respond to marketplace demands. The result is a competitive advantage, now more than ever, because these are the companies able to attract and retain Millennials. As Vistage companies grow, we Chairs encourage owners to build a leadership team so they can build a sustainable enterprise. Owners want experienced leaders to do this – In walks the boomers and Xers, accustomed to structure and ready to create that sustainable enterprise, and with their ability to create processes to support a sustainable enterprise, comes their comfort and desire for hierarchy, titles, offices, etc.

CLASH  

Perhaps as David says, as the Millennials become leaders, this will all even out. In the meantime, here are my questions for Boomer and Generation X leaders and followers:

  • Is it time to pause and ask, how much of what I expect in terms of hierarchy, paying dues, etc. matters?
  • What recognition is truly important for me to feel successful in my organization?
  • When joining a new organization or taking on an assignment, what behaviors, rather than titles and trappings, should I be asking for from my leader that will set me up to succeed?

Elisa K. Spain

Are You A Bad Boss? Are You Sure You Aren't?

Are You A Bad Boss? Are You Sure You Aren't?

by Elisa SpainNo Comments

Most of us think of a bad boss as one who explodes, intimidates and otherwise behaves badly. The reality is this type of bad boss represents less than 20% of the behavior that actually defines the worst bosses (based on research conducted by Jack Zenger and Joseph Folkman). For the full results of Zenger and Folkman’s findings, click here.

The more common “bad boss” shows up in one the following ways (in order of most to least fatal):

  1. Failure to inspire.
  2. Acceptance of mediocre performance.
  3. Lack of clear vision and direction.
  4. An inability to collaborate.
  5. Failure to walk the talk.
  6. Failure to improve and learn from mistakes.
  7. Inability to lead change or innovate owing to a resistance to new ideas.
  8. Failure to develop others.
  9. Inept interpersonal skills.
  10. Bad judgement – leading to poor decision.
In short, even if we are kind and soft spoken; if we aren’t demonstrating leadership, we are not good bosses.
Vistage members know this and that is why they join. As you read through the list and the accompanying article, I encourage you to ask yourself:
  • Which qualities on the list do I excel at?
  • How might I become a better boss by focusing on #6?

 

 

Is Your Leadership Team Your Co-Advisor Or ?

Is Your Leadership Team Your Co-Advisor Or ?

by Elisa SpainNo Comments


Businesses are assets, right? What might happen if we followed the best practices of investment management in running them?

When we hire an advisor to manage our traditional portfolio of stocks and bonds, the first thing they want to know is the answer to the following  two questions:

  1. Will you delegate full responsibility for managing your portfolio to me? or
  2. Will the account be co-advised, meaning, before I make a purchase or sale in your portfolio,  I must consult with you?

When the owner of the portfolio chooses #1,  the client and the advisor work together to design a portfolio that meets the risk tolerance of the client, the advisor constructs the portfolio and typically the advisor provides reports, usually monthly or quarterly, that inform the owner of the status of their portfolio. Additionally, the advisor’s reports include a comparison of their performance to that of their peer group.

The full process is based on the DIME method (coined by my friend Scott Morgan, author of an out-of-print book by the same title).  DIME: Design, Implement, Monitor, Evaluate.

Sometimes, the owner of the portfolio chooses #1, but instead of delegating authority, monitoring the performance of the portfolio, and periodically evaluating the portfolio manager; the owner abdicates, i.e. moves on to other things and ignores the portfolio manager.

I heard a sad story from a friend recently who chose option #1, neglected the monitor and evaluate part, and didn’t discover the result until he needed the money and discovered it was gone. The advisor was not dishonest, he simply made poor investment choices.

Ok, so what does this have to do with leadership and running a business? Here is what I have learned as a Vistage Chair and leadership coach.

The “portfolio managers” of our business are our leadership team, our key executives.  Each business owner has a risk tolerance that leads them to be more or less involved in activities in their businesses. The result sometimes is key executives either feel micromanaged or business owners abdicate  instead of delegate, only to jump back in when things are not going as they expected (but didn’t verbalize).

This seesaw drives both owners and key executives crazy and leads to outcomes neither wants. What if instead owners and key executives sat down together and asked the investment manager questions. These questions might include some of the following:

  • What decisions will I have full responsibility for?
  • Which decisions do you want to co-advise?
  • What risks are you most concerned about?
  • What kind of reporting works best for you? Written, verbal?
  • What do you want to monitor, and on what frequency?
  • How will my performance be evaluated?

And finally the most important question,

What is our agreement as to how to give each other feedback when the outcomes or the process didn’t go as we expected?

Elisa K. Spain