LEADERSHIP: AVOIDING BLACK-SWAN DISEASE

published: 2010-07-26

Nassim Nicholas Taleb, the best-selling economist and author of The Black Swan, is famous for his arresting insights. His recent postscript to The Black Swan is no exception: presenting ten lessons from the Global Financial Crisis. Above all, he recommends learning from “Mother Nature” – by making our global financial system more robust via a series of simple but dramatic changes to our thinking and policies. However, his lessons apply way beyond finance and I’m going to apply some of them to leadership. How do you think colleagues would rate you on the issues below?

LEADERSHIP: FOR SUCCESS – AND HAPPINESS

published: 2010-07-19

Like Professor Clayton Christensen, I’ve faced a life threatening cancer and found it a crucible for clarifying my thinking about what’s important. The day after the operation, my wife asked me to step down from chairing a major fund-raising appeal for my daughter’s school. This seemed reasonable and I agreed. Overnight, however, I came to a different view: what was the point of being alive if I turned my back on this type of activity? We all face such decisions but, as Christensen points out in the July-August edition of the Harvard Business Review (2010), we must be proactive in formulating our life strategy. Are you clear about what you’re doing to ensure you are successful, have a happy family life and live by rules of which you can be proud? Below are Professor Christensen’s three strategic questions.

LEADERSHIP: TRAINING AND DEVELOPMENT - BUT HOW?

published: 2010-07-13

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Langdon - VECTOR Technical Manager

Google returns 16 million responses for leadership training and 29 million for leadership development. But this begs the question of what is the best approach to either – and a deeper question: do current practices work? From my experience, much of what businesses spend is sub-optimal or wasted. Let me explain.

LEADERSHIP: THAT ONE KEY LESSON

published: 2010-07-07

How do you rate yourself on the following five actions? Showing self-awareness?. Demonstrating authenticity, integrity and compassion? Understanding and engaging people as individuals? Showing self-leadership and adaptability? Communicating, particularly listening well – and widely? These are my phrases but, taken together, they encapsulate nearly 80% of the responses to a recent online survey that asked “if you could teach one thing to a young leader, what would it be?” From my decades of working with leaders (and being one), I can’t fault any of these suggestions. Even though, at times and to my cost, I’ve ignored some! But, notwithstanding their importance, they’re less than the full picture. Let me explain why – and suggest what else might be needed.

LEADERSHIP: TESTING YOUR GUT INSTINCTS

published: 2010-07-05

What do these four statements have in common: I always exclude my own interests from business decisions; I exercise a strong sense of objectivity; I’ve learnt to proceed slowly and not rush decisions; unsurprisingly, the record shows I make good ones? The first link is lack of self-awareness – assuming I believe them. More importantly, as the authors of a recent article argue, there’s need for psychological checks to keep us honest – and out of trouble. Here’s how.

LEADERSHIP: ARE YOU DRIVEN BY VISION OR VENGEANCE?

published: 2010-06-28

Kevin Rudd resigned his Prime Ministership rather than face being voted out by his own party colleagues. What transformed a resounding electoral win in December 2007 into this current humiliation? More importantly, as leaders, how can you or I avoid such outcomes? And, what are the warning signs? Here are half a dozen.

LEADERSHIP: SPREZZATURA – DO YOU HAVE IT?

published: 2010-06-21

I quoted Seth Godin recently and would like to again. He’s a world-famous blogger and, as quite often, the following is quirky. “Sprezzatura … is Italian for being able to do your craft without a lot of visible effort. It’s a combination of élan and grace and class … the opposite of loud grunts while you play tennis or a lot of whining and fuss when you help out a customer*.” As a leader, do you have sprezzatura? Or do you draw attention to yourself?

LEADERSHIP: WHAT’S YOUR SOVEREIGN RISK RATING?

published: 2010-06-15

Daily papers and serious journals are currently full of articles about sovereign risk. The possibility Greece or other European countries (particularly those fringing the Mediterranean) will default or reschedule their debt. This could undermine the standing and even the survival of the euro. Wikipedia defines it thus: the risk of a government becoming unwilling or unable to meet its loan obligations, or reneging on loans it guarantees. What is the leadership equivalent – and how do people rate you as a risk? Let’s explore some ways to reduce that.

LEADERSHIP: GOING BACK TO GO FORWARD

published: 2010-06-07

Australia’s Prime Minister, Treasurer and hapless Government have locked themselves in a citadel of denial. They’re defending a resources super-profits tax, that’s been ill-conceived and badly introduced. The local media are full of it – as are key overseas financial reports. In Australia, not only mining people but also ex Labor Ministers, retired public servants, industry analysts and “friends” of Labor are trying to make the Government see sense. The tax, as proposed, is a national risk. Other countries are welcoming it as reducing Australia’s competitiveness in both attracting investment and exporting minerals. This same week, I’ve had a client CEO attempt a similar denial. Here are some thoughts on getting free.

LEADERSHIP: WHEN IN DOUBT, DISAGGREGATE

published: 2010-05-31

Seth Godin is part blogger, part public intellectual. Some days, he really nails a topic. Here’s an abbreviated introduction to a recent posting*.

“The typical American buys precisely one book a year … (but) when it comes to books, there is no typical American. There are a lot of Americans who buy zero books … and then there are people like me who buy 400. The average is irrelevant.”

It’s the old warning of the non-swimmer, who drowned in a river of one-metre average depth. So, what’s the equivalent for your leadership? Are you just taking “average” one-size-fits-all actions? Here’s a three-step alternative.

LEADERSHIP: THINK BIG BUT ALSO SMALL

published: 2010-05-24

Successful leaders offer both an uplifting goal and the steps to get there. The secret’s in the balance. If you’re only visionary, your legacy may well be just that: a high-potential but unrealised dream. People love it, but nothing happens. Equally, if you’re only focused on action and implementation, your people may be busy as hell but going nowhere. On long flights, I sometimes cook up an idea and enjoy the experience of what the outcome might look like – truly the view from 30,000 feet. But later, back at my desk, I have to think about how we’ll get there and my interest wanes. Too much hard work. Which would your people say you are: the dreamer or the detailer? Test yourself: which of the following two statements is more your home territory?

LEADERSHIP: FOR BETTER CSR

published: 2010-05-17

It’s unusual to read something balanced and practical about CSR. Activists want business to carry the wrap for everything. Apologists limit it to immediate operating activities and what the law requires. True, the primary responsibility is to sell sound products that people want, employ and reward fairly and act honesty and responsibly. But, the authors of a recent HBR article offer an insightful approach to the boundary issue of what is and isn’t a company’s responsibility? They make this erstwhile no-man’s land a fertile ground for corporate creative thinking and commercial good sense.

LEADERSHIP: PHYSICIAN HEAL THYSELF

published: 2010-05-10

The author of this article opens with an unbeatable leadership confession. He states that “The problem with health care is people like me.” He’s a doctor but the article equally applies if “doctor” is replaced by engineer (my training), actuary, lawyer or any other profession. By definition, leaders start with some specialisation – technical, social or commercial. And the better we perform, the more likely someone will appoint us to lead others – first in the same area and later across others. And the rot starts there – unless, like Thomas Lee, we recognise that changing roles requires changing priorities. Leadership is another profession. But we often fail to see that or we come to it after starting to lose our flexibility of thinking and behaviour. How well would your people say you’ve transitioned? High, medium or low?

LEADERSHIP: ARE YOU CONVENIENCE OR QUALITY?

published: 2010-05-03

Kevin Maney has created a strategic-choice continuum. At one end, businesses position themselves to offer quality (or what he calls fidelity). High-priced stuff, which customers buy for its market-standing and their personal-image enhancement. A Louis Vuitton bag says I’ve got taste – and money. At the other end is convenience. Discount flights and meals cost little but do nothing for your self-belief or mystique. If you applied this thinking to your leadership, where on the Maney Continuum would you fall? Nearer to quality or convenience? Let’s check that out.

LEADERSHIP: WHY WAS GOLDMAN SACHS SO STUPID?

published: 2010-04-19

There have been two volcanoes in the news recently: one spewing ash into the air over Iceland and much of Europe; the other igniting a potential fire-storm of banking regulation and litigation in the US and elsewhere. The first warns of nature’s unparalleled power; the second of man’s repetitive stupidity. The Goldman case is commercially extreme – in scale and implications. However, as leaders, we daily face moral questions: does this customer deserve her money back – regardless of the fine print? Given what I know, must I retrench my biggest-selling salesman? Are the representations I’m making about this product true? By a career of such decisions, we build our image and brand – as a company and as a leader. If I polled your staff and customers, how would they rate you on honesty and integrity? For some of us, particularly a few of the very, very smart, this is the biggest (and most dangerous) blind spot of all. Let’s explore this a bit further.

LEADERSHIP: OLD LESSONS, NEW SETTINGS

published: 2010-04-12

I wrote recently about the Roman statesman, Cicero, highlighting his focus on principles, communication, courage and succession*. I've reflected further and identified five leadership lessons from the political world in which he lived (106-43 BC). The first resonates strongly with more recent events in the Iraq. Importantly, each has implications for business leadership today. So, if I interviewed your peers and staff, how would they rate you on each of the lessons? High, medium or low? What do you need to do to improve on each one?

LEADERSHIP: THE WISDOM OF CICERO

published: 2010-04-06

In Rome of the first century BC, most leading politicians were soldiers as well as statesmen. For example, Caesar, Mark Anthony and Brutus. But, one key contemporary was not: Cicero was primarily a thinker, orator and writer. He had huge influence during the final turbulent decades prior to the fall of the Roman Republic and appointment of the first Emperor, Augustus, in 27 BC. John Adams (the second US president) said of him that the world has not produced "a greater statesman and philosopher combined". As leaders, what can we learn from Cicero? Here are four must-haves I've taken from a biography* I read recently.

LEADERSHIP: FUTURE-FIGHTING, NOT FIRE-FIGHTING

published: 2010-03-29

"Harmony has tremendous appeal. Yet a good leader still asks how the business can do better. And, a great leader fights for what he or she believes in." This edited quote from a recent HBR article* urges us all to strive for what's game-defining, not what's marginal. Where do you and your team spend time: on operational fights with few serious implications; or, strategic challenges that can transform the business? The authors offer three checks of fight-worthiness - outlined below.

LEADERSHIP: BEWARE OF YOUR STRENGTHS

published: 2010-03-22

Twenty years ago, I was shocked to hear that some of the reasons my wife had originally been attracted to me were now driving us apart. My decisiveness and energy were leaving no decision-room for her. It's often the same in business. Our natural attributes, which are powerful and value-adding, can go to extreme and undermine effectiveness. If I asked your colleagues, which two of your strengths would they say are most causing them trouble? Here's a checklist that might help.

LEADERSHIP: FROM MARS AND ALSO FROM VENUS

published: 2010-03-15

Discussing the percentage of women in senior roles is a quick way to start an argument. Some people, including some men, argue for gender equality – or a specific level of improvement. Others, including also women, argue that merit is all that counts. Less contentiously, as leaders, I believe we need both hard and soft skills – often categorised as male or female characteristics. IQ and EQ. Numeracy and literacy. Toughness and fairness. If you asked your colleagues, what would they say about your balance – and what might that mean? Here are some thought-starters.