Leadership: in a world of lies and uncertainty

published: 2012-01-30

The developed world is mired in debt. In 2008, it was on corporate balance sheets. Today it’s in the hands of governments. And that’s a critical shift. As Dan McCrum of the Financial Times points out*, businesses are “incentivised by laws and penalties to tell the truth” in their quarterly and other reporting. But, “politicians won’t”! For him, this makes the immediate future dangerous – and investors should prepare to “minimise losses in a variety of extreme events.” For me, this advice applies equally to leaders. So, here are seven actions for you to consider. ... read more

Leadership: what's your cool quotient?

published: 2011-08-22

London’s Financial Times commented as follows after Apple briefly overtook Exxon as the world’s most highly-capitalised business. “A cool company run by a cool executive (briefly) ruled the corporate world.” That it “ousted an unhip energy company only made it cooler.” An academic adds that cool comes in two sub-types - what I’ll call “together cool” and “far-out cool”. Perhaps, Rupert Murdoch and Warren Buffett exemplify the first - the older, quieter, more assured version. And, Richard Branson and Larry Ellison the second - more maverick and exhibitionist. The FT recommends* mixing both approaches - but gets sidetracked on style. So, let’s explore what leadership actions might give you “combo cool”. ... read more

Leadership: a warning for control freaks

published: 2011-08-08

What did you learn from the “unexpected” GFC? Or, should you learn from the equally “unexpected” North African Spring? Nassim Taleb (the “Black Swan” guy) and Mark Blyth have answered with clarity and insight*. “What the world has been witnessing in Tunisia, Egypt and Libya is … what happens when highly constrained systems explode. Seeking to restrict variability seems to be good policy.” But as Greenspan (and the rest of us!) found out “suppression of volatility in the name of stability … makes complex (financial) systems … extremely fragile.” Prone to explode “unexpectedly”. So, here are seven things you can do to avoid civil unrest in your organisation – and being unceremoniously thrown out of office. ... read more

Leadership: when the stakes are really high

published: 2011-06-06

Let’s think of some really big challenges. For a nation, it might be fighting a war. Putting citizens’ lives and the state itself at risk. For a business, it might be a takeover. Thus jeopardising the interests of all stakeholders. For an individual, it might be taking leadership of a failing project. Or, of something bigger than they’ve previously experienced. So, which was your notable challenge that succeeded – where you and others were at risk? And, which was the messy failure? Below are five factors needed for success in any project – whether national or personal. But, the last seems particularly critical when things get really tough. Particularly if you’re competing from a weak position. So, let me know what you think. ... read more

Leadership: how healthy is your business?

published: 2011-02-28

If you’re feeling off-colour, a doctor checks your “vital signs” of temperature, blood (both pulse and pressure) plus breathing. A leader working in the healthcare industry asked me what might be comparable vital signs for a business. It’s probably foolhardy to draw parallels between people and businesses. People are singular but substantially similar bio-organisms. Companies, though, are hugely more diverse: in nature, scale and organisation. But, foolhardy I am! So below, I’ve listed three tests plus a fourth for good measure – my four “Cs”. As a leader, what does each tell you about your business today? More importantly, which is tracking least well? And, what leadership medicine are you administering? ... read more

Leadership: have you tested yours lately?

published: 2011-02-21

Phil Rozenzweig, a professor at IMD in Switzerland, swims against the current. When asked “What’s the next new thing in strategy”, he replied “That’s the wrong question. There’s always new stuff … and most of it’s not very good.” His advice … “Seek what’s true, not new!” This quote leads an article in a recent McKinsey Quarterly that offers ten tests for your company’s strategy. My list below is identical except I’ve inserted “leadership” instead of “strategy” in each test. Check them out and see how you rate. ... read more

LEADERSHIP: WHAT PRICE ARE YOU PAYING FOR SILENCE?

published: 2011-01-31

Who said the following? “We are forecasting a $17 billion loss and no one has any problems!” Alan Mulally, after the first meeting with his senior team on arriving to turn around Ford in 2006. For the Mafia, omerta or “the code of silence” hides crimes. At Ford, as in many other companies, silence is the crime – destroying value and eventually viability. Do facts and faults get talked through in your business; or is bad news stifled? What would your people say? Here are some actions Mulally took and others I’ve picked up over the years. ... read more

Leadership: Steve Jobs and nose jobs

published: 2010-11-15

Steve Jobs is a revolutionary. Few upend as many industries. Not just computing but also music and publishing. A Gutenberg of our era. A Black-Swans breeder, who takes home the prizes. But, what about you and me? Perhaps renewal (rather than revolution) is more our thing. In my case, I’ve just released a new VECTOR Leadership site. With more functionality and product – and much better looking. But, interestingly, it has a small Black Swan nestling inside (a Black Cygnet, perhaps) waiting to waddle from the nest. Leadership Action Planning remains undiscovered by many. Most leaders are still stuck with self-reflective profiles or backward-looking evaluations. More of that later. But, in terms of your business and leadership, what’s needed: revolution or renewal? ... read more

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. ... read more

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? ... read more

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. ... read more

LEADERSHIP: INNOVATE - BUT CAREFULLY

published: 2009-05-25

Check out these quotes!  "Your planning process is superb."  It's "excellent ... a very simple but very effective management tool."  And, the resource material is "the best stuff I've seen."  Yes, I'm showing off.  These three recent comments refer to our online Leadership-Action-Planning tool.  And, they're from: the CEO of a web-based business; the local head of a global investment bank; and, the CEO of a specialist insurance business.  Sounds good.  But, we're still struggling for uptake.  So, how's your own (product and process) innovation?  In tough times, innovation's key.  But, it comes with challenges.  So, let's review the lessons. ... read more

LEADERSHIP: THE BLACK SWAN STRATEGY

published: 2008-01-14

Black swans don’t exist; only white ones. Or, that was the belief until European explorers found some swimming happily in Australia, that land of strange animals and even stranger people! John Stuart Mill picked up the conceptual possibilities in such evidence: the non-existent actually existing. And, Nassim Nicholas Taleb is the latest to popularise the implications of an unknown unknown coming to be known. And, one hopes Donald Rumsfeld has bought a copy of his book, The Black Swan. It might have helped. ... read more