Shades of Leadership

Leadership for Grads

It’s graduation season! At most commencement ceremonies, famous notables are asked to speak and give advice to students who are venturing into the world. Being that I’m not someone who’s likely to be invited to speak anywhere, I use my blog to pass along some thoughts to the graduating class of 2013:

Celebrate success, but be a cheerleader for others

Congratulations! You’ve made it through another chapter in your life! The daily pressures you’ve been through in recent years are coming to an end, and you are excited about your next journey! In the next few years, you will likely experience personal success. Remember, however, that happiness is most enjoyed with shared with others. Be someone who brings the best out of those around you by providing the support and, at times, the shoulder that they need. Laugh with them, cry with them, but most importantly, be there to celebrate their success as well as your own.

Excel and what you do, and love your craft

Once you decide on what you want to do, go deep, do it well, and love it! Whether they are artists or scientists, philosophers or teachers, those who leave their mark in the world are people who are deeply passionate about what they do. If you love what you do, it’ll feel like a hobby, and you’ll naturally learn more and excel. You’re also more likely to innovate and create around a vocation if your head holds the interest and your heart feels the passion.

Keep growing your world

In order to achieve and maintain proper perspective, it’s vital to keep your world big. New places, new people, new technologies, and new experiences will keep you from growing stale (and boring!). Living in a big world also develops the empathy and compassion that will drive the right life decisions. Today’s world is becoming dangerously short of people with broad perspective, and that trait is essential for building a prosperous, peaceful and sustainable future.

Be grateful

When you came into the world, you were a gift. In your formative years, in addition to your family, people who were once strangers to a child invested in your life: Teachers, friends, and perhaps a worship community took the time to share, challenge and grow your experience. The lessons you learned from all of them make you who you are today. Regardless of your success, always be grateful for those who made a difference at every stage in your life, and take time to acknowledge their contribution. If you get into the habit of demonstrating gratitude, you will find an abundance of kindness in your life.

So that's the short commencement address I'd make if asked.  Off you go, graduating class of 2013 (which includes my youngest graduating from high school!)! The world is yours, and we all have faith that you will be amazing!

Leadership in Times of Difference

It’s Election Day today, and I have to say, I’m relieved.  My relief is not due to the fact that we’re going to know who the next set of leaders we’ll have in our nation, our state and local governments.  That happens with every election.  My relief actually comes from seeing an end to the level of bickering and arguing that seems to now permeate political dialog and debate.  It’s gotten worse. Much worse. And I can’t figure out why. 

Perhaps the wide use of social media now provides a forum for people to behave rudely.  Perhaps the state of the economy and imbalance in the world has created such discomfort that people feel a need to lash out at those who have different opinions.  Regardless of the reason, I’ve just noticed that the level of tolerance for different opinions has significantly shifted during this election season, and it’s something that doesn’t seem very productive.

Political differences have existed since the beginning of time.  People have always had different perspectives on how any organization should be run – be it a country, a church, a school or even a family.  Most of these differences are the result of our life experiences.  The hardships we’ve been through, the worlds we have witnessed, and the people who have influenced our lives all shape our opinions.  Political viewpoints are also greatly influenced by the stage of life we are in, as each life stage causes different things to seem important. 

The thing we must never fail to remember is that everyone’s life experiences are valid.  Those who have different perspectives have a right, in a democracy, to feel and voice their different opinions.  We must learn to listen, try and understand, and disagree with respect and class.  Friends from both the right and left of center have enriched my life; I have grown and seen the world through many different lenses.  Yes, I have strong opinions.  But I try my best not to insist that everyone should feel as I do, because I realize we all have different things that we think are important. 

The great news is that with the balance of power and the protections that our founding fathers designed into the US Constitution, the pendulum cannot easily swing from one extreme to another, in spite of what the alarmists have to say.  Change happens slowly for a reason in our country.  But as we seek to solve the problems that plague our nation and the world, we must behave with reason and respect for one another.

I'm looking forward to seeing what kind of leadership emerges in the next few years.  Opportunities will exist in government, education, corporations and community organizations.  Every sector of our society is threatened in some way.  This is when great leaders emerge.

More Female Board Leadership Needed

What does it take to convince leaders that having female representation on corporate boards will enhance their bottoms lines? My friend Stacie Berdan and I share our thoughts on why it’s important.

Co-authored with Stacie Nevadomski Berdan, this piece originally appeared in the Huffington Post.

More women on corporate boards? The question is not why but why not.  As organizations adapt and prepare for success in the global marketplace, they need the best and the brightest at the helm to overcome obstacles, create opportunities and contribute to the development of a sustainable future for the planet. Women in the boardroom provide a competitive advantage for businesses’ bottom lines by providing input from diverse backgrounds.

Yet despite the public commitments made by many U.S. companies for greater diversity and female representation, there has been very limited progress made in moving women to the top ranks in recent years. As a result, the lack of available senior women has a direct impact on the available pool of women for boards of directors for US companies.

According to a new report, Fulfilling the Promise: How More Women on Corporate Boards Would Make America and American Companies More Competitive, produced by the business-led Committee for Economic Development (CED), U.S.-based companies are failing to meet the career needs of half their available highly skilled labor. By not providing the opportunity for more women to succeed at all levels of the company, including the board, companies are falling behind international competitors that are taking aggressive action to increase the number of women on their boards. In fact, over the past decade, the percentage of women on boards of US companies has remained stagnant at 12.1-12.3 percent, and for Fortune 500 companies it remains at only 15-16%. At this rate of no growth, the number of women directors will never represent the percentage of women in the workforce.

Unfortunately, stagnation seems to be readily accepted in some industries. Some, such as petroleum, heavy-capital goods or technology, believe their industries are just not naturally attractive to females. Others blame the lack of women in the pipeline with senior management experience. Regardless of the excuse, it is obvious that without a significant intervention, the status quo is destined to remain unchanged

Some countries, such as Norway and France are mandating a percentage of board positions to be held by females by a specified date.  However, doing this could be tricky as it may lead to a feeling that the bar is being lowered just to bring more women on boards. The solution lies in “enlightened leadership” at the Board Chair and Nominating Committee – people who recognize that without women at the table, the business will suffer.

What does it take to convince leaders that having female representation on boards will enhance their bottoms lines? Here are a few good reasons:

Women make up the vast majority of global consumers. The power of women as global producers and consumers has been compared to that of China and India because, over the next decade, the impact of women the world over will be at least as significant as that of those two growing global powerhouses. Women make more than 80% of consumer purchase decisions, and control 65% of global spending today. Yet surveys consistently find that women feel underserved and patronized by many of the companies trying to sell to them. Companies must understand and meet the needs of these 1 billion women around the world because researchers estimate that by 2014 women worldwide will control $28 trillion in consumer spending, up from $20 trillion in 2009.

Women lead with a different style. Many studies have outlined the qualities associated with feminine leadership, some of which are flexibility, collaboration and good communication and relationship-building skills. According to a recent survey published in the Harvard Business Review, women are considered better leaders by employees, peers and supervisors on 15 out of 16 traits – and sometimes by 10 percentage points higher. Boardrooms that are under pressure to address difficult topics such as compensation, governance and complex strategic planning require diverse yet collaborative thinkers.

Women’s issues are global issues. Lack of education, maternal health and childcare, violence against women and girls, and health, wellness and nutrition are just a few of the global issues that are women’s issues. Women are committed to advancing the rights of women and girls around the world. In a recent study by the nonprofit research firm Catalyst, organizations with three or more women sitting as members of their board of directors donated an average of 28 times more than corporations with no female board members.

Women are more risk averse. A study conducted by the Credit Suisse Research Institute suggested that mixing genders has the potential to help boards rethink or even reduce risky investment moves and increase return on equity. The study established that companies with women on their boards performed better in challenging markets than those with all-male boards. Companies with women on boards outperformed when the global financial crisis began in 2008.

Women raise the issue of diversity by simply being in the room. When a company has a woman on the Board, she is more likely to ask the question, “Where are the women in this company?” Female board members will more likely put the topic of diversity on the board agenda relative to succession planning and leadership development.

Corporate boards must broaden their understanding of who makes a good board candidate. The objective of any nominating committee should be to have candidates with a wide range of experiences and perspectives sitting around the board table. Entrepreneurs, small business owners, those with international experience, as well as management and line experience all add tremendous value and go beyond gender and race. Diverse thinking is required to take companies forward today.

It’s going to take a lot of work to push for more women on boards. Thankfully the advocates are growing. The not-for-profit group “2020 20% Women on Boards by 2020” created a national campaign in 2010 advocating to increase the number of women on boards to 20%. The group pressured Facebook to name a woman to its board using social media prior to the IPO and celebrated when it did. The group serves as a watchdog of sorts as it recently launched its 2020 Gender Diversity Directory, which quantifies companies by the percentage of women on their boards and rates them.

Business schools recognize the need to step in and assume a leadership role at this critical time. The George Washington University School of Business has partnered with International Women’s Forum, announcing the creation of OnBoard, an innovative, one-year long program to advance women’s leadership on corporate boards. The fellowship program aspires to expand women’s participation on corporate boards globally while also creating a positive change in the lives of women leaders. Program participants receive advance training in board-level leadership knowledge coupled with strong mentoring and coaching.

More women need to be elected to corporate boards. Successful companies embrace board diversity by drawing on a wide range of viewpoints and backgrounds and are much better positioned for future success. Understanding the different ways in which women lead, think and participate is key to convincing US boards that things should be different.  By doing so, they will realize the pool of qualified candidates is actually not as small as they think…..and that the conversation can be enriched quickly by including some different voices at the table.

A word about my wonderful co-author:

Stacie Nevadomski Berdan is an expert on international careers and the award-winning author of her first book, "Get Ahead By Going Abroad: A Woman's Guide to Fast-Track Career Success." Her latest book, "GO GLOBAL! Launching an International Career Here or Abroad" can be found as an eBook on Amazon, B&N.com and iTunes for only $5, as well as LULU.com in paperback for $12. Stacie also speaks on campuses, to organizations and at many conferences, as well as advises companies on the value of global, cross-cultural teams. You can reach her at stacie@stacieberdan.com

 

Leadership Lesson from Penn State

It’s hard to let the whole Penn State nightmare sink in.  It’s almost too painful to think that over many years, lives were destroyed because an organization thought it more important to build the reputation of a college football program. As someone who studies the role of leadership in all aspects of life, I see failure here at an epic proportion.

But if you think the story is only about Penn State, you’ve missed the lesson. 

The most important lesson that comes out of the Freeh Report is recognizing the variables that allowed it to happen, and that those variables exist today in many places.  Joe Paterno didn’t start his career intending to create a safe haven for a pedophile.  My guess is that his goal at the start of his career was to create a great university football program.  He built his reputation on the importance of team – even taking pride in the fact that player names didn’t appear on jerseys because it was the team that mattered. His players had the highest graduation rate, and America touted him as a role model.  It all sounded good, didn’t it?  But somewhere along the way, Penn State football became so important that even a group of janitors didn’t think they should report an incident about a kid getting sexually abused. 

It’s all about culture.

One of the most powerful tools that leaders seek to create is a strong culture.  A set of norms, behaviors, values and beliefs that drive an organization – with a common language, a shared goal, and causes for celebration and reward.  Supplementing an organization’s written policies, strong cultures prescribe unwritten rules of how to act, how not to act, and when it’s appropriate to challenge and question.  There is a high level of trust, because behavior is predictable.  Leaders are admired, respected and sometimes even revered. 

It can be great to work in a place with a strong culture.  It’s easy to feel a sense of belonging, and in many cases, it feels like a family.  But those who have experienced them realize that strong cultures hold both a positive and negative side.  Anyone who has ever joined an organization with a strong culture has heard phrases like, “That’s not how we do it here”, and “We operate like a family”.  Both of these phrases indicate an atmosphere of familiarity and belongingness…and both contain a dangerous dark side. Inferred in comments such as these is a sense of exclusion and risk in rocking the boat.  In fact, among the myriads of published articles about what happened at Penn State is a telling story of how one outsider, Vicky Triponey, was received.  The more leadership is entrenched in an organization, the greater the likelihood of finding organizational blinders that are opaque if not impenetrable. 

The key to success is retaining the positive aspects of a strong culture without allowing the negative side to take over.  How can leadership create a sense of team and belonging without getting so insulated that the organization becomes reluctant or even afraid to deliver bad news?  The answer lies in maintaining “space” to allow for objectivity and honesty, and frankly, not letting people get too comfortable.

In addition to individual responsibility for maintaining this balance, best organizations recognize that institutional leadership is needed to keep personalities in check.  In addition to those who have responsibilities for the day-to-day operations, it’s essential for those who have governance and oversight (including administration and boards of directors and trustees) to understand not only what results are being achieved, but also how it is happening.  This takes time and attention that might seem unnecessary when things appear to be in order, but in the case of Penn State, a closer look into the aspects of the football program culture by someone in an oversight capacity would have set off alarm bells that might have prevented some of the tragedies.

Here are some “red flags” that organizations should consider on a regular basis to diminish the negative aspects of a strong culture:

• What’s the tenure of our leadership team?  Have they all “grown up” together? 
• When’s the last time someone new (from the outside) joined?  How were they received?
• Are decisions always made by the same handful of people despite what the organizational chart dictates? 
• Does any one person’s opinion always weigh more heavily than others?
• How do we get bad news?  How are whistleblowers treated? 
• What are our follow up procedures for complaints that are filed?  How do we "close the loop"?
• How do lower parts of the organization behave around leadership?  Are people comfortable speaking their minds or do they seem only interested to please?
• Is there an individual leader who acts as though they should be “left alone” to handle problems and considers others who get involved to be meddlers?
• If key leadership were to leave, what would change?

In a letter he wrote to Bishop Mandell Creighteon in 1887, John Acton stated famously, “Power tends to corrupt, and absolute power corrupts absolutely.  Great men are almost always bad men.”   It is a statement that many others have paraphrased, but few ever internalize.  In the quest for power, men and women throughout history have demonstrated an inability to keep priorities clear, and the Penn State story is just another textbook case study.

In the aftermath of this nightmare, every organization, be it a school, church, company or club, should be asking itself the question, “Could this possibly happen here?”  This wasn’t a story about a football team, a coach, or even a university.  This was a story about a blatant lack of leadership to preserve a culture of entitlement for those on the inside.  If we pick apart contributing factors, the value sets and behaviors might be more familiar than we care to admit.

 

 

 

 

Corporate Leadership for a Different Future

At the KIN Global event this year held in Evanston, Illinois May 30 – June 1, I was asked to participate on a panel whose topic was “Transforming the Future”.  Members of the panel included me, Betsy Holden, former CEO Kraft Foods, Howard Tullman, founder/CEO of Tribeca Flashpoint Academy, and Julio Ottino, the Dean of the McCormick School of Engineering at Northwestern University.  The four of us were asked to give our thoughts on how business leaders should lead their organizations into a future world vastly different than today’s.

With the advent of technological advances made in the late 20^th century, the future is coming at us at a lightning pace.  In addition to technology, changes in age demographics, the shift of world population centers, the rise of the middle class, and movements in the geopolitical fault lines call for corporate leadership to not only embrace, but drive change in their organizations.  However, history tells us that in 25 years the corporate landscape will be dramatically different with many of today’s household corporate names falling off the radar, displaced by companies yet unknown. 

In order to be one of the successful survivors, corporate leaders must go beyond just knowing how the world is going to be different.  There are behavior changes that need to take place – most of them very uncomfortable, which is why large and successful companies often fall by the wayside.  The reality is that with size and scale comes entrenchment of behaviors.  Policies initially designed to ensure performance and stability end up creating cultures that are immune to change and unfriendly toward innovation. 

Large corporations live in very small worlds.  The problem is  that there is too much similarity in people who run large global corporations.  They are educated in similar institutions, follow well-trodden career paths, advised by the same handful of consultants, and spend their time reading the same publications.  They attend industry events that feel more like a reunion than a place to meet new people. Driven by Wall Street demands, most meeting agendas are about quarterly performance against well-established metrics and less so about changing dynamic of the marketplace or emergence of new competitors.

So if you find yourself on the leadership team of one of these corporations, here are some things you might consider doing to increase the likelihood that your organization is prepared to meet the very different world approaching:

Skip the industry conference, and go to something different this year.  Trust me…. they might miss you, but they won’t forget you’re there.  Instead of spending two days with people you see every year talking about the things that you could talk about any day if you picked up the phone and called them, spend three days attending a totally different conference meeting people you’ve never met before.  Rather than simply making a keynote address and then leaving, I’m suggesting that you immerse yourself with a totally different group of people who are thinking about different things.  Don’t worry about the relevance – you’ll find it.

Talk to and learn from people between the ages of 25 and 35.  The older you get, the more foreign this will seem.  But if you want to know about the future, realize that they have a much greater vested interest in it than you do.  Understand their motivations, how they live, how they purchase.  You don’t need to agree with it, but failure to understand will result in the ultimate failure of your company.

Create partnerships with entrepreneurs.  The source of most innovation comes from these people.  By definition, entrepreneurs are in business because they believe there is unmet demand.  They are agile, willing to take risk, and often driven by a personal mission.  They are not constrained by organizational structure or policies.  They are everything corporate leaders are generally not.  They will force you to think and act differently.

You get my drift.  In an earlier blog, I wrote about the importance of getting out of your comfort zone.  This is more of the same message, but driven by a specific purpose.  Failure to do so will result in an inability to meet a future that feels vastly different than your next Monday morning.

 

Team Leadership

I used to hate group projects in school.  Because there was always someone who wouldn’t do their part, and everyone else had to pick up the slack.  On the other hand, I find very few things more rewarding than working with a high-performing team. So what are the characteristics that distinguish dysfunctional groups from high-performing teams?  The answer lies in leadership that creates an environment where everyone is willing to pull more than his weight toward a goal of shared success.

This past weekend I was involved in a project in our school district that was a wonderful lesson in what it takes to lead and be part of a team.  The project included administrators, teachers, students, and volunteers (both students and parents) – each being required to do a share of the work.  Here are some observations I made leading up to the event, and as I watched the two days unfold.  The lessons in leadership were innumerable, and the ramifications evident: 

• Aptitude
  • Capabilities:  A great leader ensures that everyone on the team is able to do his job.  This sounds simple, but in a team situation, it’s easy to assume that good players will carry those who are mediocre. When a deficiency exists, leaders must make sure people have access to resources to improve their skills.
  • Organization:  It is essential in a team activity that there is a clear process for how the project is to be accomplished.  When more than three people are involved, it’s easy to assume that someone else is handling a task.  A clear understanding of “who does what by when” is needed to minimize unexpected surprises.  Periodic checks along the way ensure that the project is on track.

• Attitude
  • A greater purpose:  A great leader creates a feeling of purpose larger than the team itself.  Pro-football teams win a championship for a city, not just the team. Academic achievements benefit the entire university’s reputation, not just one department.  Every organization has a greater population for which its success is a reflection.  Until that is understood and shared, motivations remain selfish.
  • Individual gain:  As a corollary to the previous point, a great leader also communicates that success for the team translates to success for each individual. If a leader doesn’t create a line of sight connecting the individual’s gain to the success of the group, the assignment becomes something they are doing for someone else – rather than including a component for personal growth -- always a huge motivational factor.  In fact, if it’s dangerously construed that only the leader can benefit from a group’s success, feelings of resentment and animosity are born, which leads to complacency in the least, and sabotage in the worst scenario. 

• Support
  • Tangible Support:  A leader must provide the resources necessary to get the job done.  Sometimes this is monetary, but it often goes beyond just writing a check to include other resources – equipment, manpower, and facilities.  A leader’s highest level of tangible support is visible presence.  Nothing beats seeing a leader roll up his shirtsleeves and carry part of the load. 
  • Intangible Support:  A leader’s intangible support is often even more important than that which can be measured.  Conveying a personal level of dedication and support for success is vital to motivate a team to get the job done.  In the absence of being physically present, which isn’t always possible, a good leader makes it clear that success is expected and will be rewarded. 

We had great examples of leadership this weekend during our project.  Given very little guidance, a group of student and parent volunteers improvised, carried out both assigned and unassigned duties, and provided one another with support in spite of unexpected challenges.  This group of people experienced satisfaction of getting a job done, deepened friendships and made new ones, and will likely remember the weekend more for the positive outcomes while chuckling about the hiccups along the way. 

On the other hand, we also witnessed ramifications of poor leadership from people who obviously didn’t have a vested interested in creating a successful event.  They performed (or didn’t perform) their duties with long faces, seemed stressed out because they were ill-prepared, and will likely remember the weekend event as something they had to do, rather than something they wanted to do.  Interestingly enough, I doubt any of them made a single new friend, and certainly failed to positively deepen any relationships with which they started the weekend.

We are often asked to lead projects – sometimes by a boss, sometimes by a group of volunteers, and sometimes it just happens to fall in our laps because no one else is around to do it.  The difference between whether it becomes a positive or negative experience is determined by how we lead.  Providing a qualified group of people with needed resources and a shared understanding of purpose can make the event one of their most memorable and one from which all involved can grow and learn. 

 

 

 

Leadership and Dealing With Success

With the passing of Whitney Houston, the world loses another individual whose capacity for greatness was only exceeded by the inability of being able to handle it.  Few entertainers showed as much initial promise in their early years, and fewer still managed to lose it from their grasp so quickly.

As parents, we spend a great deal of time protecting our children from getting hurt in their early years.  As they get older and experience inevitable setbacks, we invest time talking with them about the important lessons that come from not getting what they want, and teach them to look for the silver lining when things don’t go their way.   But perhaps the lessons that come from stories like Whitney Houston are evidence that as importantly, we need to prepare our children for the challenges that often accompany success.

Too often the focus is only on winning and becoming successful.  We hail the victors of sports contests and celebrate the accomplishments of entertaining sensations. We applaud the Nobel laureates and idolize pop culture icons.  But with each success story, a parallel universe exists to exploit our “heroes” and tempt them into a life that is not sustainable.  Often these individuals are poorly equipped to handle the success, because everyone around them is so excited about the rewards that no one warns them about the landmines.

Public success results in three outcomes that have both a positive and negative side:  Money, fame, and people.  Money that comes too quickly is hard to correlate and value.  Too much fame may cause one to think they’re infallible.  And of course, success can attract a population of people who prey on the vulnerabilities of newly made stars.  The extent to which an individual is prepared to manage these three variables is critical to whether they can create a lifestyle guided by values and humility, and see beyond the superficial trappings of stardom.

So what advice can we give to our children so that they are as prepared for success as they are for setbacks?  Here are some suggestions for starters:

• Keep it real. Sometimes you win because you’ve worked hard; sometimes because you’re lucky.  Most often, it’s a combination of both.  Don’t lose sight of what factors contributed to your success, and the people who helped make it possible.
• Know your friends.  New “friends” are bound to come out of the woodwork, and it’s not to say they’re all opportunists, but keep your eyes open for whether they’re genuine.  If your best old friends don’t return your phone calls, do a reality check on whether you’re keeping it real.  Surround yourself with people who will tell you the truth, not what they think you want to hear.
• Be prepared for things to go wrong.  And when they do, don’t resort to quick and artificial fixes.  For someone with money, there are endless ways to anesthetize one from pain and discouragement.  But none of those make you stronger.  Deal with disappointment straight on, and move through the difficult times.
• Hold fast to your values and manners.  You know…the ones you were taught when you were about six.  The difference between right and wrong, and remembering to say “thank you”.  Always listen for your mother’s voice in the background.
• Instill the sense of a wider community.  Success is best when it’s shared, and when it provides others opportunities to realize their dreams.  Remember that it’s not just a matter of whether you succeed, but whether the world’s a better place because of it.

The landscape is littered with names like Whitney Houston, who rocketed to stardom at an early age. Very few achieved the incredible success that she did so quickly.  Somewhere along the way, she and those around her lost sight of how to make the right decisions.  Albert Einstein once said, “Try not to become a man of success, but a man of value”.  When success early in life is not managed properly, and an incredible life is cut short,  the world can never truly realize the value of what an individual can bring.  

 

 

 

Strategic Importance of Diverse Leadership

First Hostess, then Kodak.  Two of my childhood brands declare bankruptcy in the same week.  As a consumer of their products, I never imagined either of those two companies going away.  But as one who spends time examining how businesses are led, I realize the importance of strategic challenge – an agenda topic that both of these companies missed.

No one can argue that the landscape changed for both of these firms.  For Hostess, the push for nutritional foods and the focus on childhood obesity has certainly affected their business.  Although Hostess publicly states a commitment to responsible advertising and health and nutrition (eliminating trans fats), their website reports that top sellers are still the sweet snacks that we all knew from our childhood.  The customer base was shrinking, and no one did enough to identify and capture growth markets.

For Kodak, the digital age undoubtedly changed their business model.  I can’t remember how long it’s been since I bought a roll of film.  Although Kodak modified their product line and business around the changes in how memories are recorded, they’re really only known for one component of that “Kodak moment” – the film – and it was the one component that was going away.  The competitive set for that “moment” expanded beyond the traditional cast of characters (Fujitsu, Samsung) to the wider digital world of Apple and Sony.

Industry leaders are rarely the ones who change the game

Successful companies know that one of the greatest business risks is to have someone come in and re-write the strategic landscape. Notwithstanding that, you can take a look at just about any changed industry, and trace the interloper to an unexpected entrant.  Sears and Montgomery Ward paid no heed to a retailer named Walmart that was building stores in markets that didn’t seem to matter. American car companies were thrown off balance by an unlikely Japanese auto industry that redefined what quality was to the automotive consumer.  And Amazon, a company that realized we never needed to touch the book before we bought it, put large bookstore chains out of business. 

In hindsight, every company in trouble can go back and see where the adjustments should have been made.  So what is it that causes good companies to miss that important conversation? 

Conversations can only be as informed as the level of life experience around the table. 

I say “life experience” because it’s exactly that.  Our professional resumes state what jobs we’ve had, but don’t really reflect our values, our biases, and all of our experiences.  But when we contribute, we bring all of those variables to the table – which is the fundamental reason why diversity is important.  A quick look at the executive makeup of both Kodak and Hostess shows that the lack of diversity could have contributed to a limited perspective in strategic conversation.  There is little age, gender, and ethnic diversity in their board or leadership makeup.  You’d think a company that sells products to families would have a woman on the leadership team.  You’d also think a global company would have extensive international makeup at the board level.  I’m not saying that diversity is the sole answer.  But based on my experience, now sitting on four public boards, the conversation is far richer when there are different experiences around the table.  There’s less likely to be a common blind spot, and it’s more likely that someone sitting at the table has gone through any possible business scenario.

One of the most important roles that business leaders have is to challenge and pressure test the business strategy.  But we can only challenge and test to the extent of our experience.  It’s even more difficult if a company has a heritage of success.  Kodak and Hostess both had enviable competitive positions at one point.  But those around the table lacked the wisdom to measure a familiar trajectory against a different horizon.  

 

Leading in unpopular times

One of the most difficult roles that leaders have to play is to lead in spite of someone else’s poor decision.  As leaders, we work in organizations that are impacted by a multitude of people.  Sometimes it’s another supervisor, sometimes it’s a factor totally out of our control (government regulations or new organizational policies).  In these situations, the organization often looks to us to “fix” the problem, or make it go away.  Sometimes they even expect us to look the other way so that the rule can be broken.  But as leaders, we know that one of our greatest responsibilities is to maintain a productive organization, and keep the peace.  Great leaders manage in spite of these circumstances, and draw upon a set of tools they’ve picked up along the way to inspire others to move forward.

Don’t blame.  The worst thing a leader can do in this situation is to take the side of the organization, and badmouth the decision-maker.  Although this might feel easiest to do (and might actually reflect your own opinion about the decision), leaders who do this are weakened.  Not only does it alienate the person who made the bad decision, but also more importantly, it diminishes your stature in the eyes of the organization.  By doing so you no longer distinguish yourself as different from the others – you’ve joined the ranks.

Learn and provide context.  When the fury wears off, find an opportunity to share context with the organization.  Unless the decision is totally ridiculous (in which case you should be taking other steps to have the person removed from the position), there was probably information that person had that caused the decision to be made.  If you don’t understand the rationale, get it.  Ask the person who made the decision what factors contributed to his/her choice.  Learning the background can help inform how you communicate it to the wider audience. You will have a better understanding of why the decision was made, and better able to support it.

Find others who share your dilemma.  In most situations, you’re not the only person who is faced with this uncomfortable role.  There are often other officers in the group, or other volunteers who share your concern.  Use one another as a sounding board and planning group.  It’s important to have a “safe” group of people with whom to vent, commiserate, and then formulate a plan to move forward.  One thing to note is that the higher you move in an organization, the tougher it is to find people who share your dilemma.  Sometimes you have to find a “support group” outside of your organization with people who have gone through similar circumstances.

We all know that leadership is not about popularity.  Nor is it about making easy decisions.  True leaders understand that in spite of misguided or poorly executed decisions made by other people, we have to continue to keep the organization from breaking down.  The trick is to think bigger than the individual – and our own opinions – and do the best thing for the wider group.

 

 

Leadership and Integrity at Penn State

Recent media attention focused on Penn State University allegations, resulting in the dismissal of long-time coach Joe Paterno, draws attention to the topic of integrity in its deepest sense.  As leaders, there are few things that matter more than the expectations that others have of leaders to “do what’s right”. The incomprehensible levels of complacency and minimal reporting in this situation leads me to wonder what contributed to misguided decisions made by those in leadership positions that impacted the lives of so many young people.

Joe Paterno’s legacy up until the last two weeks seemed to be one of near fairy-tale perfection.  Not only was he the football coach with the highest ever winning record, but his personal brand of decency and integrity seemed to serve as a role model for so many young students who had the privilege of his tutelage.  The halo effect of Joe Pa’s reputation on the institution undoubtedly drew countless number of students to the campus as well as secured the loyalty of many alumni who chose to continue to contribute to the Penn State’s financial strength.

I fully support the decision of Penn State’s board of trustees to dismiss the coach.  The public face that he carried, the almost synonymous connection between the Paterno and Penn State names, and the impact that continued delay would have in this matter was far too great.  In his position of leadership, the absence of purposeful action is inexcusable.  However, what saddens me most is that there were so many people along the way who either covered up for the alleged perpetrator, or chose not to learn more about rumors that were undoubtedly whispered.

Parents of kids who were aware of inappropriate behavior didn’t go to the police.  Was the lure of meeting celebrities too great to give up?  Members of “The Second Mile” board and leadership were aware that Sandusky had showered with boys.  They didn’t go to the police.  Were those leaders too concerned with fundraising to worry about what the reputation of one of the founders would have on the organization’s mission?  When Penn State officials were told about the allegations, they merely “took his keys away”.  Really.

At what point do you say “enough”, and just to do the right thing?

The one thing that makes human beings different from other living creatures is our gift of conscience.  We are taught at a very young age that there is a difference between right and wrong. But too often we allow life’s other priorities create interference.  We allow policies and delegations of authority to drive our only actions. 

Leaders must remember that integrity cannot be outsourced, and values cannot be delegated.  If one person along the line had blown the whistle on this alleged animal, perhaps Penn State wouldn’t be looking for a new football coach ahead of schedule.

 

Leadership and Education of the Arts

Last night I attended a performance of “The Barber of Seville”, the opening night of Houston Grand Opera’s 2011-2012 season. As I flipped through the pages of the program, I read an article on the opera’s composer, Gioacchino Rossini, and learned that he composed the opera I was about to experience before he reached the age of 25.  A young Rossini, who was accepted into a conservatory at the age of 13, went on to become one of the most prolific and successful composers in musical history.  The thing that strikes me is that had Rossini been born in the last 50 years, I might not have been able to enjoy the genius of his work…because he would have been more “educated” by the modern day definition. 

I often wonder about the system we use to educate our children today, and whether it actually recognizes and nurtures the gifts that children possess from the moment they are born.  Don’t get me wrong…I’m a proponent of having quality education available to all children.  But I wonder if through our structure of standardized testing and curriculums that we fail to identify the Rossini-types of today?  Sir Ken Robinson, an internationally recognized leader in the field of education and innovation, gives a compelling argument in his 2007 TED Talk that education in fact kills creativity. 

The disadvantage of creating an education system designed for the masses is that it easily caters to the average.  In an effort to not leave too many students behind, we often fail to provide an environment to those who truly excel in fields of their natural talent.   A mathematical genius is held back because some kids in class have trouble mastering long division.  The aspiring poet has to spend hours annotating in the margins of historical fiction. A promising composer might be measured by whether he can master an instrument, march in a band or sing in a choir.  There is little time given outside of the classroom to explore with innovative mentors. 

I’m not sure what the answer is.  But I know that as is true with many conundrums in our lives, the solution lies somewhere in the realm of leadership.  As parents, educators and political leaders, we must find a way to provide education to the masses, while not glossing over the likes of Rossini who live among us.   We need to allow natural talent to flourish because it builds children who are confident in their abilities, and willing to stretch their minds.  We need to be mentors to those who need guidance and support to achieve the potential of their natural talents.

I have no idea if a young Rossini was good in social studies class.  If he had been forced to go through today’s modern education system, he might have graduated from a wonderful European university, been able to recite more facts about world history, or manipulate algebraic formulas as well as the average 25-year old.  But frankly, I’m far more grateful that he learned how to shape musical phrases, resolve the flowing runs of a coloratura soprano, and synchronize centuries of the human heartbeat to the rhythm of an orchestra.