Tag Archives: culture

Candor

The most straightforward piece I’ve read on candor comes from Jack Welch’s book, Winning. In Chapter Two, he refers to candor as, “the biggest dirty little secret in business,” but more specifically as people not expressing themselves in a straightforward way and withholding their comments and criticism; usually in an effort to avoid conflict.

Welch summarizes the positive effects of candor on an organization as:

  1. Create better outcomes: get more people in the conversation which leads to more minds and more ideas.
  2. Speed things up using the process: surface, debate, improve, decide.
  3. Cut costs: replace boring meetings, pointless updates, and presentations with real conversations about the core issues.

Why aren’t we candid: we’re taught not to be at a young age. Sensitive or awkward issues are softened or avoided. Our parents scolded us for pointing out something that we thought was obvious but “wasn’t a nice thing to point out.” But the main reason we’re not candid is simple, it’s easier not to be.

So how do we reverse the trend and our learned childhood behaviours to create candor in our companies? Reward the behaviours you’d like to see more of and lead by example, no matter where you are in the hierarchy (although it is easier the higher up you are).

What steps do you take within your organization to promote and reward candor?

Business in Vancouver: Boardroom Strategy (Aug 4-10th)

Mike

Boardroom Strategy: Mike Desjardins

Friday, 07 August 2009

Ten tips for leading businesses in turbulent times

There’s no denying these are turbulent times. But there are things that you can do to lead your team and your company to success against the odds.

Here are the top 10 things that you can start doing today to adapt past approaches and lead through to success.

Simplify the strategic message. The easier your strategy is to understand and communicate, the greater the likelihood that it will be executed successfully. The idea is to have people understand what the top three to five goals are for the year. Stephen Covey took this idea one step further in his book The Eighth Habit, in which he describes the concept of a “Wildly Important Goal” – the most important goal for the company this year, which everyone in the company must be able to understand, feel compelled by and repeat. Simplify to make the message easy to spread.

Use a reverse one-, three-, five-year approach. Short-term thinking can drive organizations to make decisions that are not in the best interest of stakeholders long term. This situation is exacerbated in turbulent times. View decisions from three unique perspectives: one, three, five years in the future. Ask your (future) self what decisions you wish you would have made. What do you regret? What advice do you have for yourself?
Drive revenue, reduce costs and monitor cash flow tightly. Drive revenue by getting in front of the market while your competitors are inwardly focused. Reduce costs by looking at each major expenditure in its own light, not based on a sweeping percentage. Educate your top people on how to monitor cash flow. Cash is like oxygen to a business; without it, it’s game over. It astounds me how many executives are able to rise through to the senior ranks without understanding cash flow.

Stand out while everyone else is standing down. One thing that you can count on in turbulent times is a decline in ad sales.

Not only does this mean less clutter and a higher probability of reaching your audience, but when ad sales go down marketing mediums get hungry and drop prices. Lock in long-term contracts now at the lower rates.

“Confront the brutal facts but move forward with healthy optimism anyway.” In Good to Great, Jim Collins writes about being realistic about where you’re at, while at the same time putting together a positive plan to move forward.

Think of it as realistic optimism with three steps:

•be clear about what the situation is today – pretending things are better than they are is ludicrous;

•explain what the changing conditions mean for the organization or for your division; and

•share what the strategy is to move the company forward in the right direction and what each person can do to contribute to the plan’s success.

Operate based on a one-page strategic plan. Distil your strategic plan into one page that encompasses values, goals, relevant financial data, key performance indicators and actions for three to five years, one year and the next quarter.

This is far easier for people to digest than a 50-page diatribe. (For a sample format visit my blog at www.mikedesjardins.com).

Keep your strategic plan dynamic. The most successful companies we work with review, evaluate and revise their strategic plans each quarter.

Adapting your strategic plan to meet changes in the market, industry or company creates a document from which decisions can be made rather than another dusty binder for your shelf.

Be candid and speak authentically. Whether things are good or bad, the rumour mill has a way of spinning them into whatever is easy to pass on. By focusing on the candid facts and how people are being affected by what’s happening, a sense of community and camaraderie can be built around finding a solution.

Cut fast and cut early: Multistage layoffs are far more damaging to corporate culture than one large downsizing. The death of a thousand cuts leaves people constantly realigning priorities each time there’s a layoff and wondering if they’re next. Lead people back to engagement and productivity by listening to what they’re experiencing and helping them regain focus.

Start doing, stop doing, keep doing. When fear sets into an organization it can lead people to the point of inaction or what we call “analysis paralysis.” Have people ask and answer three simple questions: What should I start doing? Stop doing? Keep doing?

If this is a topic that you are interested to know more about, visit this link for a recorded webinar that goes into more detail and examples: www.virtusinc.com/webinars. •

Mike Desjardins is the Driver (CEO) at ViRTUS, an organizational development consulting firm with expertise in strategic planning and implementation, leadership development, change management and succession planning for medium to large organizations.

This article from Business in Vancouver August 4-10, 2009; issue 1032

Why most leadership development initiatives fail.

Over the past ten years we’ve had the opportunity to work with well 1,000+ executives and CEOs, focused on helping them becoming better leaders, strategists, and visionaries. In that time I’ve seen the aftermath of many failed leadership development initiatives, that we’ve been called in to fix or replace, and they seem to carry a number of similarities. If you’re a CEO, VP HR, or Director of Leadership Development, I think you’ll find this helpful.  Here is a list of the reasons that most leadership development (LD) initiatives fail:

  1. They ignore reality. Good, bad, or ugly, there is a style of leadership that is accepted in your company right now. It’s been woven in to the fabric of the organization until it became the unwritten rule of “how you lead here.” Ignoring the fact that most people don’t look down the organization for tips on leadership they look up, and hoping that by training the “up and comers” below the exec team to behave differently than the exec team does simply doesn’t work. People turn off the volume and watch the video: how are leaders acting in this company so I know how to act like them so one day I can become an exec too. We call it the Video Test. If the senior team doesn’t understand, promote, and clearly demonstrate the behaviours that you are hoping to teach your up and coming high potentials (hi-po’s) then it’s really just paying lip service to leadership.
  2. There’s no connection to the business. Teaching leaders how to lead without showing them the direct connection to the actual situations and circumstances that they are going to run into in your business is leaving out a very crucial step. Making the connection from behaviour to situation to outcome to success based on actual circumstances that occur today in the business or occur frequently in their day-to-day roles is one of the most effective ways to ingrain an approach.
  3. We’ll do it in-house “through HR.” Most HR departments are not equipped to handle facilitation of leadership development programs in-house. It’s not their expertise, they are usually understaffed, and this is the core capability of the company. The most effective way (yes, I know, I’m biased, tough – it’s true), to implement a proper program is to work with an external leadership development partner who is willing to take the time and energy to understand what success looks like for you and the business, and design something that fits your situation (run away fast if they have the solution already built – your business is unique, you deserve a unique solution).
  4. It’s event driven. Holding an annual leadership retreat or semi-annual “learning event” means that for about one month after the event you’ll see some faint signs (usually in the form of terminology from the event) leaking out. After that it’s back to business as usual. The only way adults can actually their behaviour is to: see a model of what world-class behaviour in this area looks like, immerse themselves in learning in a practical way how to change their behaviour, and have the opportunity to revisit the learning on a frequent basis.
  5. Stick it in the LMS (Learning Management System). Right and magically everyone will find it since they spent the majority of their day surfing your corporate intranet looking for learning opportunities (is the sarcasm too light?). Leadership development is something that people need to be invited to participate in in a tangile way. Whether it’s live, on a webinar, a coaching call, whatever, the point is you engage them, not the other way around.
  6. They used an elementary school approach. Remember when you were in elementary school and your teacher was the expert and she told you how to do stuff that you weren’t sure you’d ever use again and that’s how you learned.  Well that’s called pedagogy. There are some things missing from that experience for adults: no control over the learning, no feedback to the person helping me learn, no connection to my reality, and no practical application right now. Adults require interactive, experiential learning where the “teacher” is really facilitating the learning process by bringing forward new concepts in a way that allows the learners to try them out.

If you’re not sure where to get started but you know you need to do something about developing stronger culture of leadership in your business here’s the best ways to begin:

  1. Write a list of all of the leadership behaviours that you don’t like that are going on in your company today.
  2. Take that list and write what the opposite, positive behaviour would look like.
  3. Think one year down the road and ask yourself this question, “what would substantial progress look like for us?”
  4. Interview your executive team and ask them one question, “what are the core leadership abilities that we need to foster in this organization to help us compete in the business over the next 1-5 years?”

The CEOs Top 5: Leading Through Turbulent Times

hurricane_500It’s during turbulent times, whether it be the current global economic situation or in times of industry or organization crisis, that CEOs have a tremendous opportunity to pull the people in their organization together towards a common goal.  As Francois De La Rochefoucauld said, “there is no stronger bond of friendship than a mutual enemy.”

Here is a list of the top five things CEOs must keep in mind while leading through turbulent times:

  1. Simplify the strategic message. The easier the strategy is to understand and communicate the more likely it is to be understood and passed on through the entire organization.  The Top 3-5 goals for the year is really what people will remember.  Stephen Covey takes it one step further in his book, The Eighth Habit, when he describes the concept of a Wildly Important Goal (WIG) – the most important goal for the company for the year, as the single overarching objective that everyone in the company must be able to understand, feel compelled by, and be able to repeat and pass-on.  A simple catch phrase that rallies support, the WIG is something that politicians have used to their advantage for years.  Side note: Premier Gordon Campbell knows this well.  At the BC Leadership Lunch last week he summed up the importance of forestry to British Columbia by saying, “wood is good.”  Now I’m sure the double-entendre was intentional and I guarantee that his message was passed on.
  2. As Jim Collins said, Good to Great, confront the brutal facts but move forward with healthy optimism anyway.  Be clear about what the situation is today, what that means for the organization, what the strategy is to move us is the right direction, and what each person can do to contribute to the success of the plan.
  3. Be candid and speak authentically about the reality of the situtation.  Jack Welch, in chapter 2 of his book Winning, speaks about candor,  or as he calls it, “the biggest little dirty secret in business.”  Jack says that he felt the biggest turning point in success at GE happened when they brought all the executives together and agreed to put true candor into place in the organization.  That chapter is one of the best pieces I’ve read on the value of candor in organizations.
  4. Keep your strategic plan dynamic. The most successful companies we work with at ViRTUS, are the ones that review, evaluate, and revise their strategic plans on a quarterly basis.  Adapting the plan to changes in the market, economy, industry, company, or direct competition creates a document which decision can be made by instead of another binder on the shelf (I swear a shelf manufacturer came up with the concept of putting binders on shelves to sell more shelves.).
  5. Be consistent in your communications to all stakeholders. In board meetings, executive meetings, press releases, articles, newsletters, speeches, blog postings, hallway/cafeteria adhoc conversations, etc., the message must be the same.

Hear’s where the rant starts:  and STOP blaming everything on the “global economic situation.”  Not all of the risks you take as a CEO, even as calculated as they might seem at the time, are going to pan out.  Own up to the mistakes that were made and move on.  You’ll make more later so now’s the time to focus on the path forward.

ViRTUS’ 10 year anniversary!

10year_logoThis year marks ViRTUS’ 10 year anniversary.  It’s been an amazing journey so far marked by some fantastic milestones:

  • growing to 160 Exchange Members in Vancouver (CEOs and Executives)
  • working with a range of companies from $1M – $9B in revenue in leadership development, team development, strategic planning, strategic implementation, peer advisory groups (Exchange), mentoring, and coaching
  • working with some of the top 100 public and private companies in BC (the list goes on for pages)
  • working with 1,000+ CEOs, Executives, and senior managers
  • being recognized by BIV with a Top 40 Under 40 award
  • building truly the most amazing, talented, intelligent, empathetic, and experienced team in our industry
  • partnering with Peter Thomas and LifePilot
  • being selected to build the content for the Accelerator Program (global program for entrepreneurs run by EO and sponsored by Mercedes Benz Financial)
  • taking over the leadership practice from Caliber Leadership in Vancouver
  • expanding to do business across Canada and into the US
  • teaching the leadership component of the residency for the Royal Roads University MBA Program for 3 years
  • collaborating with UBC Executive Education to deliver the Leaders’ Windows to key executives in the Lower Mainland (now Performance Based Leadership)
  • moving our office from Pender & Thurlow in 2005 to 1085 Cambie Street in Yaletown into a space which truly fits our culture
  • revamping our website this winter to truly speak to who we are and what we do for growing companies
  • launching this blog to help share the intellectual property we’ve amassed over the past 10 years and are continually creating and discovering

How are you celebrating the important milestones in your business?

Results-focused CEOs outperform high EI CEOs

Brad Smart, co-author of the book Topgrading, has written a fascinating blog post that references two new studies which seem to somewhat contradict what the HR community has been saying with respect to results-focused CEOs and high emotional intelligence CEOs and the connection to company performance: “University of Chicago researchers studied 225 CEOs assessed with Topgrading methods, and found that CEOs who were extremely results-oriented delivered much better financial results than CEOs high in Emotional Intelligence.”

Apparently the results point to a “disproportionate emphasis” on EI vs results orientation in the hiring process.

The CEOs we’ve worked with over the past 10 years at ViRTUS who have the highest performance and the lowest senior rank turnover consistently show a blend of results focus and strong emotional intelligence (which they are consciously developing).

What has your experience been with your CEO?

Why Zappos Pays New Employees to Quit

An interview with Bill Taylor, Game Changer blogger for HarvardBusiness.org. Zappos knows that they can’t deliver great customer service unless their employees are committed to the values of the company.They attempt to bride new employees to quit during the initial training.

more about “Why Zappos Pays New Employees to Quit“, posted with vodpod

Holiday Poll