Economic Uncertainty… What To Do, What To Do?

Economic Uncertainty… What To Do, What To Do?

by Elisa SpainNo Comments

As summer winds down and attention focuses back on business, the subject on the minds of business people continues to be economic uncertainty. We lived in a world of prosperity for such a long time, prior to 2008, that many of us forgot that the economy moves in cycles.

The Vistage economists, Brian and Alan Beaulieu from the Institute for Trend Research tell us the next recession is not until Q3 or Q4 2013 and yet, any softness in the economy is read by the general press as a beginning of a recession. In some cases, the perception exists that the recession of 2008 continues, despite results that prove otherwise.

So what’s my point?

While macro-economic factors will impact all businesses, what matters most is what we do each day. One of my Vistage CEO members who owns a commercial construction business said it well. When asked the reason for his success during the real-estate debacle, his answer was simply, “While we are one of the largest privately held businesses in our industry, we do business nationally. We are a small % of the overall construction business in the country and therefore there is and was plenty of business out there for us. Our team recognizes this opportunity. And every day, we deliver world class service to our current customers and continually focus on acquiring new ones.”

  • What is your story of prosperity?
  • How are you benefiting from the current economic uncertainty to gain an unfair advantage in your business?

Elisa K. Spain

 

Leadership Quote: Giving People Permission To Fail…

Leadership Quote: Giving People Permission To Fail…

by Elisa SpainNo Comments

This month’s leadership quote: Giving people permission to fail is more important than giving them the tools to succeed.

In my experience as a leadership coach, many, if not most leaders, struggle with this one. We often know the answer and are quick to give it. Or, even step in when we see the situation “going south”.

And, we become frustrated when our staff chooses the safe choice rather than the best choice.

Is there perhaps a correlation here? What if instead we explicitly give people permission to fail and let them, what might the outcome be?

Please share your stories.

Elisa K. Spain

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

 

Consensus Equals Beige

Consensus Equals Beige

by Elisa Spain2 Comments

When a leader asks for input and then makes a decision, the result is vivid color, i.e. a better decision. It is a better decision for lots of reasons.

First and foremost, your team feels valued when they are asked to participate in the decision process.

Second, there is value in the wisdom of crowds, many times the group will surface ideas that the leader hasn’t thought about. As a Vistage Chair and leadership coach, I see this happen each month during the executive sessions  I lead  with CEOs and Key Executives.  This, of course, is why 15,000 people around the world are members of Vistage – because we know the value of seeking input from others.

Where it all goes awry, is when we seek consensus either from our team or from our Vistage group (or our family, friends, book club, etc).  With consensus all the colors get mixed together, resulting in a dull beige, i.e. a mediocre, watered down decision.

Next time you are asking for input, ask yourself  if what you want is color. And, if it is color you want, don’t settle for beige.  Make the final decision yourself.

Elisa K. Spain

 

Leadership Habit: Because That's The Way We've Always Done It….

Leadership Habit: Because That's The Way We've Always Done It….

by Elisa SpainNo Comments

Several years ago, I was working with a key executive who had been in his position for many years. We were discussing the way things were done in his department and every time I asked him the reason why they did something a particular way, his answer was “because that’s the way we’ve always done it”.  Over time, this answer became a private joke between the two of us as we worked together to modernize his department.

One of my favorite examples of this habit is the seat belt announcement on airplanes.  Once, I heard a flight attendant put it this way “for those of you who have never been in a car…” Clearly at least this one flight attendant shared the same humor as my key executive friend and me.  And yet, this announcement continues on every airline.

Perhaps it is time for someone (FAA, Airlines?) to pause and ask, “What should our safety message be?” And, for each of us to ask,  has “that’s the way we have always done it” become a leadership habit at my company?

If so, is it time for to pause and begin asking:

  • Why are we doing “that” this way?
  • What is the goal of doing “that”?
  • Is doing it “this way” getting you the results you want?

Elisa K. Spain

Leading Change, When Is Enough, Enough?

Leading Change, When Is Enough, Enough?

by Elisa SpainNo Comments

Leaders drive change in their businesses for a variety of reasons; the two primary reasons are:

  • When the leader sees opportunities the current structure does not support
  • When industry changes threaten the current business model

Both of these scenarios create a sense of urgency on the part of most leaders and much has been written about how to lead change. Pundits will say, it is important to have confidence in yourself and stay the course. Moreover, it is important for the leader to overcome objections as it is human nature to resist change.

We are living in a world of constant change – and the pace continues to increase. We tell ourselves and our teams that we must adjust to this pace or we will be left behind.

And, how do you know when enough is enough? How do you know when your team truly can’t keep up?

If you are driving change in your organization and  have been at it for awhile, here are some questions for you:

  • Are you seeing signs of change fatigue?
  • Are you noticing some people who are “off their game”?
  • Are others becoming ill?
  • Are the people you counted on in the past to lead with a positive and supportive attitude no longer playing that role?

If the answer to any of these questions is yes, is it time to check in with your team and perhaps re-calibrate the pace?

Elisa K. Spain

 

When Is It The Leader's Job To Build Creative Confidence?

When Is It The Leader's Job To Build Creative Confidence?

by Elisa SpainNo Comments

Do you divide your team  into “creatives” and ” practical” people? If so, are you  missing out on the creative ideas of the other half?

If you ask David Kelley, founder of IDEO, and winner of countless innovation awards including Fast Company’s Top 25 Most Innovative companies, he will say yes.

David maintains that human beings are naturally creative and it is fear of judgement that stifles creativity in most of us. He asks, what might happen if we were to overcome that fear of judgement and unleash our creativity? Perhaps the secret lies in what psychologist Albert Bandura calls guided mastery – a process whereby we  identify a fear or phobia and by forcing ourselves to overcome that fear, we release our creative abilities.

How might you as a leader create an environment that enables your employees to build their creative confidence? Perhaps a simple starting place is with more legitimate brainstorming – following the brainstorming rules – no idea is a bad idea!

If you want to take this further, are you willing to expose your team to guided mastery? Sound too touchy-feely for you?

Before jumping to judgement, take a look at this 12 minute TED Video where David tells stories from his legendary design career and his own life, and offers ways to build the confidence to create.

Elisa K. Spain

Another View On Leadership, Is Boring Better??

Another View On Leadership, Is Boring Better??

by Elisa SpainNo Comments

When discussing the  characteristics of great leaders – words  like inspirational, charismatic, brilliant, innovative often come up.

Boring, on the other hand, is not typically a descriptor of great leaders. Which is why when I saw this article by Joel Stein, entitled Boringness: The Secret to Great Leadership, I paused…

While Joel writes a humor column for TIME Magazine, and therefore one might take his comments to be tongue-in-cheek, he makes some points worth considering.

Here’s a summary of Joel’s observations while preparing for his latest book.

The best leaders tended to be quiet listeners who let others make the decisions. They weren’t particularly charismatic, or funny. They weren’t the toughest guys.  They weren’t driven by a need to be liked or single-mindedly focused with intensity. In short, a bit boring.

On the other hand, the best leaders in Stein’s research were humble, calm, reflective and self-confident. They were passionate about only one thing, the mission of the team. The boring leaders in Stein’s research spent their time helping their teams achieve the mission and giving them feedback on their progress.

Here’s a quote from the article that sums this up well:

“Everyone at Captain Buzz Smith’s  firehouse knows they are doing things exactly right. And that seems to make them both proud and assured. They would do anything for Capt. Smith. Not because they love him — I’m not entirely sure that outside of the firehouse he could inspire them even to switch TV channels — but because his deep belief in his mission makes them also believe in that mission.”

What do you think, is it possible to be a boring leader and a great leader?

Elisa K. Spain

 

Does A Business Have To Grow?

Does A Business Have To Grow?

by Elisa SpainNo Comments

This is a topic often discussed amongst my Vistage members. Some want to grow, others like the idea of maintaining a controllable size. There is no one-size-fits-all answer. What I do know is that businesses are organic, and therefore static is not sustainable. We’ve all seen businesses disappear over time when the owner was not engaged, unaware of changes in the industry, lost a key employee, a new competitor entered the market with a game changing idea, etc.

If you accept that static is not sustainable, what to do?

If you find that you like the entrepreneur culture, with everyone playing a part in the business, be intentional about it. While you may not want fast growth or a large company, a business has no choice but to continue to evolve and grow, even if it is at a steady pace. If you are in this place, here are my questions for you:

  • Do you have a diversified client base?
  • If not, what steps are you taking to diversify and reduce this risk?
  • Where is your business and your product(s) in the business life cycle? If you are in a mature industry, with mature products, what is your “digital camera” and what are you doing about it? see March 11, 2012 blog, Innovation vs Discipline: Kodak vs Fuji 

If, on the other hand, you have the opportunity to scale and want to, be intentional about that as well. The challenge for many entrepreneurs who want to grow is making that transformation from an “entrepreneur culture” to a professionally managed culture. If you are an owner with a growth plan, here are your questions:

  • Do you want to be the CEO of a professionally managed company? Does the thought give you energy and play to your genius?
  • If you would rather leave the management to someone else, is there someone on your team that could be your COO?
  • Are you open to accepting that your business is going to change and some of the people will have to change as well?
  • Are you willing to invest the time and the money to get there?

Whichever path you choose, make it an intentional one.

Elisa K. Spain

Leadership Quote: The Key Is Not To Prioritize What Is On Your Schedule..

Leadership Quote: The Key Is Not To Prioritize What Is On Your Schedule..

by Elisa SpainNo Comments

This month’s leadership quote:  The key is not to prioritize what’s on your schedule, but to schedule your priorities. – Stephen Covey

We often hear time management tips about taking time to plan your schedule. What we often hear is to prioritize what is on the schedule. What Stephen Covey reminds us with this quote, is to pause, choose our priorities and then schedule them.

As a leadership coach, I recommend the following 5 step approach to my Vistage members and coaching clients:

  1. Start with the wheel of life, what are my “spokes”?
  2. What do I need to feel in balance with each of the spokes on my wheel? Remembering that balance is different for each person, see 2/5/12 blog: The Ever Elusive Search for Work/Life Balance
  3. What are my 3 or 5 year goals for each spoke?
  4. What actions do I want (need) to take this year to move me toward those goals?
  5. Each day, when planning the day, ask this question: How do I want to spend the 16 hours I am not sleeping so that I complete the actions I set for myself this year?