CEO Panel 2009
Managing Change, Maximizing People
Concepts from leading CEOs
Driving Force #1: Remain strategic
"I have plans for revenue growth, not cost reduction. As soon as you open the door to thinking you can`t grow revenue - it`s over."
- Stay the course in challenging economic times; stick with strategies while adjusting tactics.
- There is "opportunity in crisis" to examine revenue and expenses with more clarity.
- Continually redefine and reallocate resources, looking for efficiencies and growth opportunities.
- Shore up your company by making strategic hires, putting the right people in key roles.
- Leaders are focusing less on day-to-day activities and forcing themselves to plan for tomorrow.
There are two basic facts about business:
- Whether large or small, they exist to deliver goods and/or services and to deliver a return to their shareholders in the form of profit or not incur a loss in the case of a non-profit.
- Leaders are responsible for the strategic direction of these organizations during good and bad times.
So it seems logical during these seemingly challenging economic times, the leaders of thriving, growing organizations are developing innovative ways to go to market, gain new customers and market share, or deliver improved services. By acting offensively or advancing forward by reacting to what is happening, strategic leaders are planning for growth opportunities and allocating resources today to do so.
How do you know whether you are acting offensively or defensively? Offensive leadership with a company is very proactive, working around problems. Leveraging talent to gain customers is front of mind and investing in key contributors happens no matter what condition the company is in. A defensive or reactive leader will make decisions after economic climate changes affect business results, then determining the reasons behind the loss of clients after the fact. Our successful client leaders are training their teams to their maximum potentials to mitigate potential problems and continue advancing their business.
Although most of our clients don`t see the need to change their overall strategies, they see the need to review their tactics to reposition themselves based on the climate changes. Many are changing their tactics on a quarterly basis, especially if the changes in the past year have altered their customer base or the way they deliver services or products. Review your strategy and consider the following:
- Are your long term strategies viable for at least another year?
- Look at your processes, people and customers for opportunities to improve or gain new sectors of the market
- Create specific tactical changes, obtaining buy-in with your team
- Assign responsibilities and timing to each tactic
- Communicate the changes in roles to affected employees
- Monitor progress
Based on new tactics, we suggest looking for leaders that are key to success and investing in those people and their areas of the business. Successful companies continue to hire and develop talent that will enable them to achieve long term goals. Not to do so would suggest that when the economy improves they will be no better off tomorrow than they are today.
Driving Force # 2: Lead positively
"We have unanimously decided not to participate in the recession."
- Leadership isn`t just about making money. Financial results vary; leadership characteristics do not.
- Keep communication open and simple: "I have a road map and here is my plan for success."
- Be careful how you communicate to employees during a crisis — don`t do anything out of character, it sends the wrong message. Don`t filter information too much - strive for transparency.
- Go out of your way for clients. "We have our arms around all of our customers. We even meet with them on Sunday afternoons; it`s powerful and clients are grateful."
An effective leader is constantly reevaluating how to best lead and grow his or her business, and currently leaders are navigating through unknown territory, dealing with more anxiety in the media and possibly within the industry or region. The approach to anxiety that was successful a few years ago may not be applicable to the current environment, and taking a unique, positive leadership stance might be most effective. The key is to assure that your executive team is experienced and possesses the skills, abilities and behaviors to help drive the organization. They must be positive with purpose and direction—now is the time to demonstrate confidence. More than ever, their energy and effort should be focused on improving performance of the organization through motivated individuals with a common purpose.
We`ve seen our clients with more positive leadership reap the dividends of a more engaged and productive workforce that will go out of the way to serve the client or customer. Positive leadership is contagious and cascades throughout an organization to customers, vendors and strategic partners. This style looks and sounds different from other leadership groups that take an authoritative or passive stance. Communication sent by those who exhibit positive leadership explains how goals can be accomplished instead of the obstacles that stand in the way. Employees understand there is a clear plan in place and concentrate energy to achieving success instead of tallying their misfortune. The following information lists characteristics demonstrated by leaders who promote a culture based on positive leadership:
- Communication—Convey a consistent and optimistic message throughout your company. Focus on presenting opportunities for success instead of challenges that face the organization. Tailor your communication style to meet the needs of your employees.
- Recognition—Reinforce employees' value to the organization by making an effort to recognize their strengths and achievements. Recognition is important even if goals aren't reached because of outside influences
- Trust—Allow people to use their strengths and abilities to drive the organization. Resist the urge to control their actions or limit their authority. Allow them to do the job they were hired to do.
- Action—Execute an offensive strategy. Use the team's strengths to identify and take advantage of new opportunities. Take an interest in new ideas and support your team by actively participating and in the success of new programs.
Companies depend on the full engagement of their people despite concerns about the future. By encouraging an environment that demonstrates positive leadership, your organization will be positioned for success, even when the economic or financial data looks daunting. An optimistic approach to communication, management and operations is the key to harnessing employees' energy when their productivity is more crucial than ever.
Driving Force # 3: Resist being overly cautious
"Gorillas are what you need."
- You may encounter less volatility, but there are greater risks associated with taking a conservative approach.
- Look for aggressive leadership in this economy. "With brute force, gorillas will tear limbs, keep driving and won`t accept "no" for an answer. In other words, you want someone who will creatively navigate roadblocks."
- Stay focused on a sharply defined business agenda in which everyone participates. "Set expectations high and don`t waver on budgeting."
While taking risks is a fundamental part of leadership, we see a wide range in "risk taking behavior." On one end of the continuum are leaders who require large amounts of details, deep analysis, long periods of thought and multiple conversations before making a critical business decision. Their comfort and confidence comes from knowing they have gathered every available bit of information, envisioned all possible things that could go wrong and received the input of team members before approving action on an issue.
On the other end of the continuum are leaders that serve as those "gorillas" who will steam ahead, only needing to know the key goal, the importance of the opportunity at hand and a basic understanding of the details involved. 24 months ago, when unemployment was low, access to credit was easy and GDP was steadily growing, taking a conservative, steady and cautious approach to leadership may have been effective. But the realities of today's business climate and the uncertainty of tomorrow are best served by aggressive leaders, willing to take more risks.
Even those that are naturally proactive, decision leaders are finding it hard to move ahead and are in a "holding pattern" with regard to change. Now is the time, however, to exploit and leverage ideas and be bold. In our work with hundreds of corporations across multiple industries we have seen that important revenue and operational goals can be reached by:
- Trading "certainty" for speed. The enemy of done is perfection. Firms that take more risks recognize that their results may not be perfect... but that they will get results!
- Reducing (if only somewhat temporarily) collaboration and team think with individual decisiveness. Leaders sometimes need to use the authority that comes with their roles to make independent decisions, even ones that may not be popular.
- Accepting greater degrees of tension, conflict and some "discomfort." Muscle only grows when it is worked to near failure. Recognize that tension, if only for short periods of time, can and will produce important results.
- Acknowledging that mistakes will happen. To benefit from the rewards of risk taking, leaders recognize that reaching the goal at hand may not always look "pretty," but that reaching your outcomes is vital.
- Staying focused on your strategy, avoiding distractions from your plan. Don't make drastic cuts and don't let propaganda about the economy get in your way. Instead, concentrate on your clients, employees and achieving your goals.
Top companies are been built by leaders who are not afraid of failure, thinkers who are not afraid of progress and dreamers who are not afraid of action. It may be time for you to unleash the "gorillas" in your organization.
