Develop a Tolerance for Risk

March 30, 2010

When trying to manage change, leaders often make a huge mistake by not telegraphing a tolerance for risk. This article digs into the issue of risk in making changes and suggests an antidote to this common problem.

It is a common statement that the only thing that is constant is change. Perhaps that is an over statement, or you may believe it is literally true. For sure, we are living in times where the level of change is increasing at an exponential pace. The reason for this is that worldwide technology uncovers new ways to do things every minute of every day. If you doubt that, just to try to buy the most advanced cell phone. It is impossible. Before you have swiped your credit card, another model has been introduced somewhere that has more capability than the one you just purchased.

Organizations change in order to keep pace with customer needs and to survive the competitive landscape. The global marketplace has made stability of internal processes impossible. We need to reinvent ourselves just about every day in some ways.

I once heard the great Ken Blanchard describe an instance he had with a Motor Vehicle bureau in California. He had been procrastinating about getting his license renewed due to past memories of standing in long lines only to be told when he got to the teller that he was in the wrong line. We have all experienced this type of bureaucratic bumbling, and no one would blame Ken for not wanting to go.

When he finally could put it off no longer, he scheduled the better part of a day to get his license renewed. He went in and was blown away with the level of service. He was completely done with the transaction (which included a new picture) in 9 minutes. He was so astounded that before leaving he approached the manager to congratulate him and ask how he changed things so drastically. The manager told him it was his job to reorganize the operation on a minute by minute basis to match what the customers needed. With that attitude, the whole focus of the operation became a game of how well employees could serve the public, and productivity skyrocketed.

When managers describe the need for change, they often make a critical error by saying something like this. “We have to go from A to B in less than 3 weeks. This is going to be extremely difficult, but it is critical we not make blunders along the way. Think hard about what you are going to do before doing it. We can get there quickly, but we cannot afford to make mistakes.”

The impact of a speech like that is to paralyze the people who need to be creative in order to actually get from A to B in 3 weeks. They will fail with this strategy.

An alternative way to challenge the group would be for the manager to say, “We need to get from A to B in three weeks. That is a huge task, and it will require us to do some very creative things. I recognize this will mean taking some risk. I want you all to know I will not shoot anyone if something does not work out. We need to break the mold to accomplish our goal. Let’s be sure not to make the same mistakes over and over, but let’s realize there will be some setbacks along the way. My job is to support you in your efforts to achieve the goal.”

With a speech like that, people will be more empowered to use their brains and figure out the pathway to success. In the first case, the manager petrified the workers, in the second case the manager turned them loose to solve their challenge.


Blind Spots

March 22, 2010

For many years, I have been intrigued that it is nearly impossible to see one’s self as others do. I focus on this conundrum from the standpoint of a leader, since leadership training is the center of my business. Many leaders are often not aware that they are deceiving themselves with ideas about how others are reacting to them.

Several years ago, Daniel Goleman (father of Emotional Intelligence) observed that leaders who are most deficient in Emotional Intelligence usually have the most significant blind spots.

I pondered the validity of Goleman’s observation for several years. Typically, when I asked leaders or students of leadership, whether Goleman’s observation is consistent with what they see in their environment, they enthusiastically agree, once they understand what Goleman was actually saying.

The idea is that leaders cannot know how others see them. Therefore, leaders with low Emotional Intelligence usually are unaware that they have this problem. They believe people at work are enthusiastically behind them and have complete respect in them as their leader. Of course, when you talk to the people being led, the exact opposite observation is closer to the truth. They typically observe the leader is simply clueless.

Why is it that leaders are often blind to their own incompetence? Is it hubris? Is it ego? Is it overdrive? Is it stupidity? I believe the truth is that all of these things are in play. For many leaders, the lack of humility is one of the most significant impediments to accurately see themselves.

In my work, I teach that the ability to build trust between people in an organization allows a leader to see him or herself more accurately than ever before. The reason is, when trust is high people are not afraid to tell the leader when he or she is acting like a jerk. In fact, people understand they will be rewarded for pointing out leader foibles when they occur. That means leaders who are able to accomplish an environment of high trust have a major advantage. Trust is like the surface of the mirror that allows leaders to be able to see themselves accurately.

If you want to understand how you are coming across as a leader, your best bet is to work on building an environment of higher trust. In my book, I describe reinforcing candor as a key method for doing this. I believe if people feel it is safe to bring up scary stuff, they will be more inclined to share their truth on a daily basis. When leaders reinforce people for speaking out, it allows trust to grow and gives them the opportunity to be able to view themselves as they never have in the past.


Leaders and Managers

March 16, 2010

There is a lot of information on the contrast between leaders and managers. Typically we see a side by side comparison with items such as:

“Managers do things right” while

“Leaders do the right things.”

I like to take a different slant on describing the differences because I believe a pure manager comes to work with an entirely different mindset from a pure leader. Of course, there really is no such thing as a pure manager or leader, it is always some kind of a combination of the two concepts. Here is how I describe the differences.

The Manager

The manager wants everything to go smoothly. He or she wants every process to run the way it should and get the maximum productivity. There should be no waste. The manager wants everyone to follow all the rules and be there every day motivated to do good work. In essence, the manager wants to stabilize things and clone everything to be exactly right. The manager is all about doing things right, and is most closely associated with the mission of the organization (what they are trying to accomplish). The manager works with the process, the equipment, the schedule, and the people in terms of what they should be doing. Managers are now oriented.

The Leader

The leader is often a destabilizing force. He or she is most interested in where the organization is going rather than just optimizing today’s processes. That may mean making people unhappy for some time in order for the greater good. If people are too complacent and do not see the dangers, the leader is there to create a burning platform. Leaders are sometimes very unpopular. The idea is to do the right things, which may mean some pretty difficult decisions. The leader is all about the vision of the organization (where they are trying to go). The leader works with the balance sheet, the strategic plan, the product line, and the people in terms of what they can become. Leaders are future oriented.

The Leader/Manager

This person is able to combine the best of both worlds and act in both roles. All of us act as leaders and managers at times, but each of us favors one mode or the other. A good balance between the two extremes is the best place to be. In general, the world has far more competent managers than competent leaders, so if you have leadership tendencies, that is a good thing to have.

Really great leaders do not mind being average managers. They recognize their weakness and surround themselves with outstanding managers to handle the details.


Life is a Mirror

March 10, 2010

We are all familiar with individuals at work, who constantly complain about the attitudes of other people. These depressing people can be a cancer in any organization, because they consistently lower the morale of other individuals. Of course, the irony is that these people are observing negativity in others, but really, it is just a reflection of their own negative thoughts and actions. They go around spreading gloom about others, when in fact, they are the perpetrators of the problem more than the other people.

I think it is fascinating to observe this phenomenon, and then ponder whether I am sometimes guilty of the same problem myself. When I get fed up with other people being negative, is it really just a reflection of something going on within me subconsciously? In other words, how can I determine if I am blameless? In fact, I am just as guilty as anyone else of observing negativity in others. It makes an interesting conundrum that appears to have no solution.

My challenge to you is to pause before observing negativity in other people long enough to ask yourself the question of whether it may be originating with you. That takes a lot of maturity, because it really is a lot easier to just complain about others.

We all know certain individuals who are world-class negative thinkers regardless of who they are with. I am not referring to the one-of-a-kind rotten apple in the barrel that everyone knows comes up on the negative side of things. Rather, I’m talking about a more generalized malaise where individuals observe most other people in a negative light.

It might be a healthy attitude when observing several people being negative to mentally say something like “I must be putting out a lot of negative energy today, because that’s what I observe coming at me from others. Let me test the validity of that by putting on a more cheerful demeanor and see if it has a positive impact on the current environment.” Who knows, you just might enjoy the benefit of seeing a lot more love and affection coming into your day.


Keeping People In the Loop

March 4, 2010

If you go into any organization and do a survey about what leaders are doing well and poorly, the vast majority of groups will put “communication” at the top of the list of things to improve. This is true even though most leaders are nearly consumed trying to keep people in the loop on a daily basis. Why is there such a disconnect between needs and performance?

There are numerous reasons for the gap. First, the magnitude of information that needs to be shared is growing exponentially. With the global markets and worldwide scope of most operations, the complexity is dozens of times more daunting than it was just a decade ago. The ubiquitous access to all kinds of information and misinformation on the internet means that leaders need to unscramble a plate of informational spaghetti on a daily basis. What used to be cells of gossip and rumors quickly becomes a rats nest of damage control when a horde of titillated bloggers or twitterers swings into action.

Corporate communications can no longer be a matter of having a quarterly Town Hall Meeting. Information needs to be disseminated on a continuous basis, and misinformation needs to be beaten down almost hourly. Is it any wonder key executives get bogged down and withdraw to let the “communications officer” handle the mess. Yet when a CEO unplugs from the communication process, this is how people get the idea he is hiding something or he just does not care about telling them the truth. That creates a significant trust problem.

Whew, is there an antidote to this malaise? I think there is. It is a simple remedy that has been known for centuries. It is called “walking the deck,” or if you are a politician, “pressing the flesh.” The trick is for top executives not only to practice the art of interfacing with people, they need to insist that all middle and lower managers do the same thing. This is particularly true when times are tough.

If there is a crisis or emergency, most managers and leaders like to retreat to the safety of their office and communicate electronically. Unfortunately, spewing out long explanations of current realities may seem like progress, but consider how many of the people are reading or understanding these tomes. My advice to leaders is to at least double their shop floor time when times are tough.

If top leaders insist on a culture of talking with workers directly often and insist that all managers in the chain do this routinely then the crushing load of communication can become more manageable. The side benefit is that the workers will not be besieged with a flood of electronic drivel to digest daily.


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