Monday, December 6, 2010

Common Sense---a (business) notion that has been around for a long time...

Ben Franklin often spoke of common sense with such notable quotes as "If you would be wealthy, think about saving as well as getting” and “Creditors have better memories than debtors." 

Ben’s practical approach to life was admired by many and certainly has much to teach us about executive leadership.

In business, complexity is the enemy of common sense. When business ideas are allowed to flourish in the form of highly complicated and confusing concepts, common sense is often a casualty. Complexity hides basic truths and we don’t have to look very far to find examples

Senior executives must constantly be on guard for ideas that are too hard to explain, are expressed with emotion rather than logic, and are pitched with certainty, often by individuals convinced of their superior intellect.  “Trust me on this one, I completely understand the issues.”   To ensure common sense prevails you should:
 
o     Ask pointed questions and listen carefully.  Questions are almost always more useful than statements.  Poor listening is behind many bad decisions.

o     Encourage aggressive debate and give your team permission to engage in conflict when considering important decisions.  Let them know it is okay to “get into it”, notwithstanding personal attacks.

o    Seek input from diverse sources both within and external to your organization. Check out your thinking with those you trust to tell you the unvarnished truth. 

o    Recognize the natural role your emotions play in decision making. Emotions can override judgment; learn to question your emotions.

In business, common sense is an important litmus test for good decision making.  By asking questions like, “Does the idea pass the reasonableness test?"  

Would I do this with my own money?  
Can the idea be expressed simply?  
Is it supported by facts? 

These are the kind of questions Ben would likely ask.  

We would all do well to heed his wisdom; it is as relevant today as it was 250 years ago.

Tuesday, November 30, 2010

Comfort Zones

“Past performance is no guarantee of future results.” This disclaimer is no doubt familiar to anyone who has ever invested in a mutual fund. When I saw this disclaimer the other day, I thought about my clients and the discussion we often have about Comfort Zones. I've also written an article* devoted to this important concept published in the November (2010) issue of the Supply Chain Quarterly Magazine.

You likely arrived in your current position on the back of some real assets, like your ability to get into the details or make quick, effective judgments. Now let’s assume your responsibilities significantly increase. Perhaps you’ve become the CEO of a much larger company or the president of a global division with international range and scope. Will doing what you’ve always done, in the same way be a successful strategy now? Most likely, the answer is no. You need to avoid the trap of falling back into your comfort zones. To do this, you must be self aware and willing to adjust your approach.

As responsibilities increase with your changing role, it’s easy to confuse a strength with a liability. This is especially true under pressure. Behavior that may have served you well in the past may not be appropriate in your new higher level position. When you lead from the top you must work through a team of senior leaders who represent you, extend your reach and give you leverage. The behavior you want to rely upon to lead senior officers is different (in important ways) from the leadership behavior you used when you were one of those senior officers. This is probably the number one cause of CEO failure and there are examples of this in the business press every day.

This “Comfort Zone Trap” is not just a bad habit. It can be a fatal flaw. As you evaluate your own leadership style, you might look for this trap as a real opportunity to improve. 

*Read my article:  Are Supply Chain Leaders Ready for the Top?

Tuesday, November 16, 2010

In Business, You Get What You Expect

Clients sometimes say to me, “this organization is just too political.” At times it gets more specific, “that guy is a political animal."   With some folks there is resignation:  “I’m no good at politics; I need to get out of here!”  Politics are considered frustrating and counter-productive, which is often true.

In the business context, the word “politics” certainly has its negative connotations.  It stirs up images of the “yes man” (or woman), the “back stabber” (driven out of control by ambition), and the individual that says one thing and does another.  Why does anyone put up with this?  

The answer is simple:  You can’t avoid it. 

Anyone with kids has seen this play out from the earliest years.  Our twins were keeping score when they we two years old.  If you complimented one, you were neglecting the other.  At two they were competing for power in very simple and effective ways.

A business leader is expected to bring in the best talent, create a high performing organization, and hit the numbers.  In the “thrust and parry” of competition, there will be winners and losers.  No matter what, politics will be hovering around. 
  
So what should a leader do?  It is all about keeping it simple and clearly communicating your values.

People will model your behavior.  If want to minimize the impact of politics, be clear about what’s important.

Here is a simple exercise.  

Write down on a sheet of paper a single word you associate with a “political” organization. It should reflect behavior you have seen with your people.  Then come up with its opposite.

For example:

Negative                     Positive

BS                                Straight Talk

Showboat                    Team Player

Blame                          Accountability

Following this example you would simply, concisely, and frequently communicate to your organization that you value and expect: Straight Talk, Team work, and Accountability. In every interaction, you would consciously model these behaviors.  With the passage of time, the values will become second nature; most employees will be able to name and describe them. 

With all of the management theory and programs available regarding “culture change,” it's easy to forget the simple fact that really do you get what you expect!  If you want to minimize the negative effects of Politics, be clear about your values. Your folks will appreciate it.