Is Governance Leadership?

Is Governance Leadership?

by Elisa SpainNo Comments

Opt 3 July 13

This week begins a new series on the topic of governance in growing businesses.

Governance is not a term typically used by business owners and business leaders. Rather, we hear this term most often in the context of corporate boards, both public and private.

Yet, Wikipedia defines corporate governance as, “the system of structures, rights, duties, and obligations by which corporations are directed and controlled.

  • Governance provides the structure through which corporations set and pursue their objectives, while reflecting the context of the social, regulatory and market environment.
  • Governance is a mechanism for monitoring the actions, policies and decisions of corporations in alignment with the interests among the stakeholders.”

In short, governance is the DIME method that I have talked about previously. Design, Implement, Monitor and Evaluate.

Beginning with “D – Design”.  In my experience, businesses initially develop without much regard to design. And as Vistage speaker Jim Alampi reminds us, while bootstrapping works up to a point, as businesses reach critical milestones of growth, what we were doing up to now, doesn’t work anymore. At this point it is time to pause and ask two sets of questions:

First, the 5 key internally focused questions:

  1. What are our business objectives?
  2. What are the cultural implications of these goals?
  3. What are the financial implications of these goals, revenue, expense, cash and capital needs?
  4. What structure and infrastructure, i.e. key functions and processes are needed to achieve our objectives?
  5. Who on our team is qualified to fill the key roles? Who may not fit? Who will we add?

And, equally important are the 5 key externally focused questions:

  1. What is happening in our industry? Competition, innovation, regulation?
  2. What is happening amongst our customers? Growth, consolidation, innovation?
  3. What are the gaps that provide opportunities for us?
  4. What are the threats to our continued growth?
  5. What diversification opportunities exist?

 

Elisa K. Spain

Vistage CEO Confidence Index: Hiring Is A Top Concern in Q2 2014

Vistage CEO Confidence Index: Hiring Is A Top Concern in Q2 2014

by Elisa SpainNo Comments

q2 2014

The quarterly Vistage Confidence Index is now available.

The latest Vistage survey found that CEOs continued to feel confident about today’s economy, as the Vistage CEO Confidence Index was virtually unchanged from the levels recorded in the prior two quarters. The Vistage CEO Confidence Index was 101.0 in the 2nd quarter 2014 survey, nearly identical with the 101.3 in the 1st quarter and the 101.5 in the 4th quarter of 2013. This was the best three-quarter performance since 2005. The constancy of economic optimism is all the more surprising given the drop in GDP during the 1st quarter, indicating that CEOs discounted last quarter’s decline as an aberration due to the harsh winter.

Below are some key highlights from the Q2 2014 Vistage CEO Confidence Index (all members surveyed):

  • 73% of CEOs expect increased revenues over the next 12 months.
  • 57% of CEOs planned on expanding their payrolls, just below last quarter’s 58%, which was the highest level since the start of 2007.
  • 30% of CEOs report that hiring new staff is the top business issue that they now face.
  • 46% of CEOs plan increases in investments in new plant and equipment.

Elisa K. Spain

Leadership Quote: We Must Lose Sight Of The Shore…

Leadership Quote: We Must Lose Sight Of The Shore…

by Elisa SpainNo Comments

 

Opt 3 June 29This month’s leadership quote:

“We must lose sight of the shore,if we do in fact, hope to discover something new.“

-Gary Belmonti

Today’s quote came from one of my Vistage CEO group founding members. We have been on a transformation journey in this group and Gary is a member of the guiding team. Our group launched nearly eight years ago and most of us have been together for more than half of that time. In the early days, this group went through Bruce Tuckman’s Stages of Group Development and for several years was high performing.

Over the years, we learned that groups, like individuals, can become complacent and develop bad habits. To return to high performing, groups and teams must go through transformation and back through forming, storming, norming and performing.

And, as Gary reminds us, we have to let go of the shore, let go of what is familiar, if we are to discover something new. Transformation is not going back to what was; it is moving forward and discovering what high performing means today.

Elisa K. Spain

Growth Doesn't Have To Be A Lonely Path…

Growth Doesn't Have To Be A Lonely Path…

by Elisa SpainNo Comments

 

2014-06-01Join us on June 11th, to learn more…

All the economists are reporting steady growth and I see it in my Vistage groups. For the first time, in a long time, members are focused on expansion. And, they are cautious, the Great Recession is still fresh in our collective memories.

Here are some of the questions I am hearing:

  • How does a business expand without shouldering the capital burden alone?
  • Is it possible to continue to grow and  begin to diversify and take some money off the table?
  • My management team is in for the duration; how do they begin to put skin in the game?
  • As the business has grown, my partners and I have different personal goals, how do we resolve the financial challenges associated with this?
  • I want a sustainable enterprise that continues on beyond me; how do I finance my retirement and accomplish this goal?

With these questions in mind, I had a conversation with a friend of mine at Duff & Phelps and this led to an exciting seminar in Chicago on June 11 to answer these questions. Duff has assembled the top experts on private financing to address these questions in an interactive session with open dialog.

For those of you who will be in Chicago on June 11, here is a link to register. If you can’t make it and want the transcript, let me know.

Elisa K. Spain

 

Leadership Quote: Tell Me And I'll Forget…

Leadership Quote: Tell Me And I'll Forget…

by Elisa SpainNo Comments

Opt 7 May 25This month’s leadership quote:

“Tell me and I’ll forget; show me and I may remember; involve me and I’ll understand.“

-Chinese Proverb

We are often reminded that the key to successful leadership is successful delegation. And yet, many of us struggle with making delegation stick. I hear responses, like

  • It takes too long; I may as well do it myself
  • I can’t get my team to take ownership
  • When I delegate, it doesn’t get done right

While there may be other reasons for these results, I wonder if one might be, we are too often telling and showing? And, if we changed that ratio to more involving, if we might see different results?

Elisa K. Spain

Leadership Quote: You Can Tell Whether A Person Is Clever…

Leadership Quote: You Can Tell Whether A Person Is Clever…

by Elisa Spain1 Comment

3d man holding question mark and exclamation pointThis month’s leadership quote:

“You can tell whether a person is clever by his/her answers. You can tell whether a person is wise by his/her questions.“

-Naguib Mahfouz

In Vistage we chairs encourage our members to stay in a questioning mode. This is probably the most important ingredient in effectively getting to the resolution of an issue and the most difficult to do.

Those of us in leadership roles are accustomed to having the answers. After all, it’s having the answers that got us where we are; we solve problems. So… when we hear  a problem, we want to shout out our answers and help the other person (or is it we want them and everyone else to hear how smart we are? Perhaps if we are honest with ourselves, it is a little of both).

Here’s the thing, I think I am smart too. When I bring an issue to the table, first I am a bit uncomfortable, because I am being vulnerable. Second, when you give me answers, I immediately go into objection mode.

If on the other hand, you ask me questions, I can get to the answer myself. Does it take longer than just giving me the answer? Sure for you. Sometimes you can help me by making observations, but don’t solve it for me. That may help you, but it doesn’t help me.

So, as our Vistage speaker, Amy K says, “strive for the better question”. Easy to say, hard to do. Here are a couple of tips I have picked up from Amy that can aid the process:

  • Write down your question before asking it.
  • Write down 11 questions, and then pick your best to ask. The act of writing down so many, helps you push for the better question.

And in the moment, when writing the question isn’t practical, listen to yourself. When I catch myself making a statement, instead of asking a question, I will pause and say, “wait, let me rephrase that as a question”.

The Socratic method after all was named for the man viewed as the wisest in the land because of the questions he asked.

Elisa K. Spain

Vistage Confidence Index: Optimism Remains High In Q1 2014

Vistage Confidence Index: Optimism Remains High In Q1 2014

by Elisa SpainNo Comments

2014-04-06 Confidence Index Q1 2014The quarterly Vistage Confidence Index is now available.

CEOs in the latest Vistage survey maintained their economic optimism at the same high level as in late 2013, despite the negative impact from the harsh winter. The Vistage CEO Confidence Index was 101.3 in the 1st quarter 2014 survey, virtually identical to the 101.5 in the 4th quarter of 2013, but well above the 96.6 in last year’s 1st quarter. The past two surveys set the highest average six-month level of confidence in three years. The harsh winter was reflected in more negative evaluations of current economic conditions, but firms reported increases in employment and investment intentions compared to either last quarter and last year.

Below are some key highlights from the Q1 2014 Vistage CEO Confidence Index (all members surveyed):

  • 58% of CEOs plan on increasing the number of employees in the years ahead, the highest level recorded since the start of 2007.
  • 76% of all CEOs reporting using management training and leadership development programs, with 47% of all CEOs intending to increase their investment in such training.anticipated higher sales revenues in the next year.
  • 56% of CEOs provide retirement savings programs to eligible employees.
  • 74% of CEOs expect to increase revenue in the next year.
  • 57% anticipated higher profits in the next year.

Elisa K. Spain

Leadership Quote: It Is Only As We Develop Others…

Leadership Quote: It Is Only As We Develop Others…

by Elisa SpainNo Comments

Opt 6 Mar 30 2014This month’s leadership quote:

“It is only as we develop others that we permanently succeed.”

-Harvey S. Firestone

As leaders, we truly have only one job: to develop others. The success of our organizations rests entirely in the hands of the people who build our products and deliver the service to our customers. So, we have two choices, we build the products and deliver the service ourselves or… we develop the leaders who work for us, and they, in turn, develop their teams.  

When we choose the latter, we permanently succeed because we have built a sustainable enterprise.

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

 

Leadership Quote: Be Like Water..

Leadership Quote: Be Like Water..

by Elisa Spain2 Comments

opt 8 Feb 23 blog                This month’s leadership quote:

“Don’t get set into one form, adapt it and build your own, and let it grow, be like water.”

-Bruce Lee

When I read this quote at my Vistage Key Executive meeting this month, we had a lively conversation about “what does it mean to be like water?” Here is what we came up with.

Water is infinitely adaptable, when it encounters a boulder, a rock or a dam, it moves around it. Water takes different forms, sometimes, hard and solid, like ice, sometimes fluid, sometimes cold, sometimes warm, sometimes boiling.

If we as humans can be like water, we will know when to simply move around the boulder and find another path; when to be fluid and when to hold firm; when to accept and when to respond; when to boil and when to be warm. In short, be like water and adapt to what life presents us with.

Elisa K. Spain