the largest bankruptcy in U.S. history when it was filed in 2001.
● A coterie of CEOs at General Motors, who consistently blamed the economy and outside pressures for the automaker's failure and reorganization in 2009.
None of these leaders cited poor management or a corrupt culture as reasons for their companies' downfalls, but as Leverty notes, their highly deficient decision-making skills were to blame. “We found that managers of failed firms are less skilled than their peers, and the consequences of their incompetence are economically significant.” Dr. Leverty and his coauthor studied 12,000 insurance companies to determine how the decisions of their chief executives over a 12-month period affected firm performance. They asked: Were costs minimized? Were revenues maximized? Did the company operate efficiently? Did the company use technology effectively? How did the quality of leadership affect solvency? Ultimately, “inefficiency is a manager's fault,” Leverty notes. Leaders are charged with identifying and remedying every problem area.
Finger-Pointing
Manny was shipping manager for a regional delivery company…and he was not respected by his peers. He was quick to point fingers when shipments fell below plan, blaming his problems on others.
This situation persisted for years because Manny had the ear of the company founder. Unfortunately for Manny, the founder died and his son, who succeeded him, didn't appreciate Manny's finger-pointing. He fired him.
Hands-On Advice: Failing to take responsibility for the performance of your job is a losing proposition. Face your own problems and correct them.
It's easy to unconsciously slip into the routine of blaming others when things go wrong. And it may work for a time, but eventually you will be exposed. In the meantime, you risk alienating the people whose cooperation you rely on. Not a smart move.
Leading in Uncertain Times
The role of leaders in uncertain times transcends managing the bottom line. It requires remembering that their first priority is employees. Great leaders never forget that their employees are the keys to success.
As an executive coach, consultant, and former CEO, I've worked with hundreds of leaders who perpetuate the growth of their companies, departments, or teams. I find that successful leaders practice four simple leadership skills, all based on developing people. Implementing these skills keeps people focused, reduces anxieties and fears, reduces turnover, and makes employees feel loyal and positive about the company.
1. Communication. The late Sam Walton, founder of Walmart, said, “Communicate everything to your associates; the more they know the more they care. Once they care, there is no stopping them.” Because of the downturn in the economy, people feel vulnerable and overwhelmed. They are also worried about cutbacks and layoffs. Communicate everything to them by letting them know what is happening in your company, team, or department. Open the lines of communication with everyone and let them know that you care not only about their involvement in the workplace, but in their personal lives as well. A leader places a high value on human capital.
2. Praise. When you praise people you inspire loyalty and encourage them to perform great work. Praising also creates positive energy in companies when people are continually being praised for doing good work. Great leaders go out of their way to praise people; they catch people doing something right! When praising people, do it in a timely fashion, make it specific, and try to do it in front of their peer group. Use such statements as: Thanks for getting that report in so quickly. You handled that situation nicely. That was an interesting point you brought up. We couldn't have done it without your help. I can see you're improving in that area; keep up the good work. Your contribution is making a difference on this project. Praising your people will keep them motivated, inspired, and full of positive energy.
3. Empowerment. Great leaders know that they need to create more leaders at all levels. Empower your people; nurture their development as leaders. Don't just delegate work; delegate decision-making powers to people. When people have the authority to make important decisions, they feel part of the organization, and they're more likely to remain part of it. By empowering your people, you enable them to reach their potential. When you fail to empower people, barriers are created that people can't overcome. If these barriers remain long enough people give up and leave. Many of those people go on to become great leaders at other organizations.
4. Coaching. Coaching boosts productivity, builds teamwork, motivates employees to elevate performance levels, and helps people overcome obstacles to their success. A great leader spends time working with individuals to see the blocks in their performance. A successful leader and effective coach are one in the same. People won't change until they see the need to. Good coaches listen to people to find ways to break down the barriers that keep people from reaching their full potential. They then work with their people to outline a plan of action that clearly states the goals for improvement and accountability. Coaching helps people learn, grow, and change. It provides a powerful structure through which people can focus on specific outcomes, become more effective, and stay on track.
Uncertainty calls for strong leaders who guide people through troubling and turbulent times. Inspire and motivate your people to help them adjust and be productive employees. By utilizing these four leadership skills, you can change attitudes and create a positive and nurturing environment.
Helen Gets It Right
When the board of directors of a failing company appointed Helen as CEO she brought with her all the requisite skills from her previous position with a competitor. She practiced the four techniques just described: communication, praise, empowerment, and coaching. Those skills enabled her to turn around the company.
Hands-On Advice: Bear this in mind – you can succeed where others have failed if you do the right things, have faith in yourself, and have the courage to persevere.
Helen did it as thousands of others have before her, and at all levels of the organization. It's not easy, but it can be done, and it is those character traits that separate thriving leaders from mediocre performers.
Takeaway from Chapter 1
Define the traits, duties, and competencies of highly effective leaders you have known. Compare them to highly ineffective leaders you may have had the good fortune to work with. I say good fortune because watching leaders fail enables you to evaluate why they failed. Now contrast them with leaders who have had great success and determine why they succeeded.
I suggest you write this information, listing the traits, duties, and competencies in the left-hand column, and the names of the contrasting managers in the next two columns, then evaluate them one attribute at a time. In the third column, write your name, and have a coach or mentor evaluate you compared with the other two leaders, attribute by attribute.
Why write it? Because the act of writing assures that you won't skim over the information but instead give each of the traits, duties, and competencies the thought they deserve. This method will also help guide your thinking, organizing how you analyze an issue (whatever that issue might be), then let you come to rational conclusions in a systematic way.
There is no better school than this. Use the takeaway from this chapter, and each succeeding chapter, to improve your leadership qualities.
2
Who Said It Would Be Easy?
Scope of the Leader's Job
Leadership is a tough job, one that places you in difficult positions, facing vexing dilemmas. Regardless
