Shades of Leadership

A Time for Shift

The death of George Floyd has once again brought to light the topic of race, power, and bias in a nation whose strength has been built on peoples of difference. Although focus and protests are mostly around the institution of law enforcement, conversations for many have moved onto the general topic of inequity that continues to permeate all aspects of our society – families, neighborhoods, educational institutions, and business.

 

The greatest danger we have is that we fall back into what I call the “outrage-to-indifference” cycle that we have gotten to know all too well. When the protests subside, broken retail stores restock and reopen, social media profile pictures that were briefly turned to black return to selfies, and hashtags disappear, we once again slide into the status quo of our familiar lives and conversations. Those in power remain in power, and those who struggle find that nothing has changed.

 

That is the cycle that must be altered.

 

I have spent the past three weeks listening to individuals across my network – current and former colleagues, dear friends, and leaders in the business community representing the public, private, and not-for-profit sector, to inform my perspective on the topic of racism that continues to impact our society. I have been tremendously heartened to hear every leader speak of how things must change, and that they need to be part of that change.

 

In addition to the community, educational, governmental, and justice system institutions that need honest examination, business leaders have clearly stated they want to examine how it feels to work in their organization. Many are asking “What should I do?”, and genuinely want to shift the trajectory of an all too ossified curve that continues to favor one group over all others. Many are reflecting on what has been done in the past to engrain unconscious bias into systemic divides. Many are examining their own behaviors.

 

From these conversations I’ve gleaned some insights into what business leaders can do:

 

Communicate. Your employees are listening and hearing your words. They are also hearing your silence. In an environment of unrest and uncertainty, it is essential for leadership to double down on values and commitment to an equitable workforce culture. Many organizations have stated values that they espouse, but words are often hollow and not genuine. Messages need to represent authenticity and be founded in a commitment to grow and learn. The future must represent inclusion, not just diversity.

 

Provide a platform for dialogue. Create space for people to talk, and more importantly, to listen. Black employees need to speak and to be heard. They need to share how they are feeling, what they have experienced, and why they feel the way they do. This is vital to grow understanding and empathy. Listen to stories of injustice, prejudice, and what they have experienced. This is vital to defining a way forward. Most importantly, hear how it feels for them to work in your organization. Hear of the impact of having significantly more challenges and lack of mentors and role models. Hear whether they believe there is true opportunity for advancement and whether they feel support to learn and grow. Ask for stories. They tell the most.

 

Don’t broaden the topic. Don’t turn this dialogue into a conversation around inclusion of all groups. Just for now. Nothing is more irritating to an individual who needs to talk about one problem than to have it diluted by becoming part of a larger one. Focus on the topic of black America. Focus on what is distinctively different about what it feels to be black in your company. There is a difference. Of course it's a broader topic, and inclusion must include people of all demographics. But by broadening the topic, we make the conversation more comfortable, and we need to stay in discomfort in order for change to occur. By broadening the topic, we also become distracted by the bigger problem, and we miss out on addressing the things that are needed to change.

 

Examine internal processes and systems. In order to understand how bias plays into decisions of advancing or providing opportunities, leaders must investigate how these factors contribute to the lack of/stunted advancement of black employees in their organizations. In most companies, there is adequate representation at entry level positions, yet as we look at higher level jobs, representation diminishes tremendously. Selection processes designed for equity are most likely impacted by unconscious bias of selection committees.

 

Over the past 17 years, I’ve served as an independent director for 9 public companies. Across these boards, I’ve served with only one black director. This is tremendously unacceptable. In recent years, there has been an increase in women in boardrooms, but I’m not naive enough to think that would have happened as quickly without public attention, legislated requirements, and ultimately, investor pressure. The challenge of breaking the status quo is undoubtedly helped with policy reform. However, to achieve sustainable change, it is imperative that people in power understand the value of inclusion and involvement that originates from all sectors of our society.

 

We have a choice. We can choose to let this conversation wither over time, or we can choose to own part of the problem and make a difference in our own organizations. Waiting for society to fix all of the underlying problems in order for the solution to magically occur is an excuse to ignore. Business leaders are solely responsible for how it feels to work in your organization.

 

Business provides hope and opportunity to change lives for people in our communities. We are responsible for making sure that hope and opportunity exist for all.

 

 

Emerging from a Pandemic

The pandemic of 2020 will be remembered and studied for generations to come. Long after the political battles are fought and won, historians will study what went right, what went wrong, and who were the heroes and zeroes. As we begin to consider the “when” and “how” of emerging back into a normal world, we have a unique opportunity to reflect on what we’ve experienced during this pause. To what behaviors will we revert, how many new habits will we retain, and what opportunities are there to revisit how we interact with one another in our communities, and in our places of work?

It would be a shame if we behaved as a stretched rubber band and merely snapped back into the shape we were in before this crisis. As I recall, the pre-pandemic era wasn’t exactly utopian, filled with generosity and thoughtfulness.  It certainly wasn’t devoid of stress. By the time it’s all said and done, the pause will have been long enough to have significantly altered daily routine, helped us discover new technologies, and will have given many of us a chance to revisit practices that we had long forgotten, or perhaps had gone dormant in a busy and hectic life.

The Planet

There have been obvious impacts on our natural environment. As parts of the world shut down, we witnessed the improvement of air quality. We’ve seen pictures of large metropolitan cities in China and the U.S. with clear blue skies. Fish can be spotted in the canals of Venice due to reduced water traffic, and mountain ranges in the Himalayas are visible for the first time in decades. As economies reopen, much of this might disappear, but it’s nice to know that nature can recover, and we can influence our environment in a short period of time. How much does this realization fortify our positions around the energy transition and how we behave in our daily lives?

Our Home Life

In our neighborhoods and at home, pastimes like bike-riding, after dinner strolls around the neighborhood, and old-fashioned phone calls with friends have been rediscovered. Families are sharing regular meals together again. With children schooling from home, parents telecommuting, and restaurant dining facilities closed, the practice of home-cooking re-emerged out of necessity. We are sharing recipes over the internet, planting “Victory Gardens”, and watching viral YouTube videos for at-home haircoloring and haircutting. Perhaps as we “return to normal”, we will be able to capture and retain many of these wonderful old, yet new, traditions.

Business Observations

As a business leader, I am particularly interested in how this pandemic has influenced the private sector – both the short-term consequences as well as long-term implications. An unexpected/unknowable event, known as a “Black Swan”, creates unprecedented challenges for a generation of executives. Keeping business afloat, preserving supply chains, retaining employees, and calming stakeholders are some of the greatest challenges we face, yet the situation also offers an incredible platform for leadership and inspiration.

Generosity and Agility

Not surprisingly, as in most crisis situations, this pandemic has revealed incredible levels of generosity and agility in support of the greater good. In the midst of plummeting market values, companies shifted manufacturing lines to make medical equipment. Pharmaceutical firms abandoned projects of great financial incentive and focused on creating virus tests. CEOs and executives took massive pay cuts to avoid layoffs and furloughs. Rents and mortgages were forgiven, and insurance premiums were cut. As companies examine these decisions, there is no doubt a disconnect between what is “right” and what is “rewarded”. In times of crisis, “right” easily wins out. This prompts questions of structure and incentive. How can supply chains be modified to create more agility in turbulent circumstances? How do we make doing what’s “right” part of the performance equation against which companies are valued by investors? Can it be defined and measured through the impact of an Environmental, Social, and Governance strategy?

Supply Chain

During the pandemic those who had flexibility in their supply chain found themselves at a competitive advantage as options narrowed quickly. In the push for maximizing cash and working capital positions, many companies have learned that reducing supply chain optionality too greatly proved to be a significant constraint. As we emerge back into a more normal cadence of business, it will be interesting to see if supply chain flexibility becomes more important than supply chain efficiency. Do you want to have all your eggs in one or two baskets? What are the implications of geographic sourcing? Are there countries that should be considered higher risk based on how they behaved during this crisis? Should you consider lack of flexibility as an enterprise risk?

IT Investment

The pandemic pushed many out of their comfort zones. Executives who once depended on IT specialists and administrative assistants to cue up their computers for conference calls had to figure out how to download software on laptops and mobile devices to access Zoom, Bluejeans, and WebEx platforms at home. (It’s evidently never too late to learn, even for mature executives.) As technology played a huge role in how businesses adjusted to the sudden change, it was clear which companies invested in IT infrastructure, and which ones ignored that inevitability for too long. How will companies assess their business resilience going forward? How will companies prepare their systems for the next pandemic or crisis?

Travel and Commuting

The curtailment of normal business activity yielded changes to routine that we seemed to follow in lemming-like aimlessness. Air travel came to a standstill as countries were shut down and offices closed. Daily commuting via trains, buses, and automobiles came to a virtual stop. In the period of two weeks, business was being conducted over video and conference calls. It begs a thorough examination of the resources spent on travel and meetings. Do we really need to travel by plane as much as we did before? For groups that meet quarterly, can they consider that one of two of those meetings a year be covered virtually – saving time and resources for both planners and attendees? What impact does this have on industries that count on the volume of business travel that might significantly decline?

Telecommuting

Many managers who place importance on “face time” and doubted the effectiveness of telecommuting have been proven wrong. Most new telecommuters feel that rather than be distracted by household chores (although it sure is nice to be caught up on laundry), they have never worked longer hours or harder than they have during the COVID-19 crisis. As a result of the pandemic, many companies have now invested in IT infrastructure and security measures that allow efficient and secure telecommuting. In addition to potential commercial real estate expenditure savings and efficiency to be gained, there is the collateral benefit of more flexibility for which many have pushed in the struggle to balance demands between work and home. Can the work-from-home phenomenon be more commonplace than exception? How do organizations create a strong culture, team orientation, and talent development with highly flexible work arrangements?

Moving Forward

The difficult decision of how and when we open our markets and countries must be made by government officials, informed by scientists and medical experts. However, the conversation WE can all influence is how we want to define the world in which we raise future generations. As human beings, we are social animals, and we’ve missed being together. The ability to pass the time with family and friends, dine in our favorite restaurants, and attend performances and sporting events were activities we perhaps took for granted.

As we shift toward a post-pandemic world, we will strive to regain those experiences in a safe and deliberate manner. However, how can we adopt some of our “new practices” as we redefine interactions in our cities, communities, and workplaces? Can the kindness and generosity we have witnessed during this pandemic be retained in our families and communities? Can the flexibility and compassion our companies have exhibited be measured and rewarded in our organizations? Do we take this collective global pause as a lesson in humanity or merely an inconvenience in a world model that was certainly not utopian?

It seems there’s a huge opportunity to do so.

Implications of Social Distancing on Leadership

In the midst of the unsettling world of COVID-19, people are finding themselves in unchartered territory. Restaurants are shuttered, schools are closed, sports and performing arts events have been canceled, and routines once defined by daily human interaction now rely upon technology to stay connected. The term “social distancing” is now a part of our collective lexicon, and “quarantine” is used to connote both protection and prevention. The vast majority of the population is practicing behavior for the collective good; reducing our contact with other humans mitigates risk, particularly for those most vulnerable to the disease, and gives our health care system the greater ability to treat those affected.

 

As I spend my days in virtual board meetings, we discuss topics of business continuity, community outreach, employee/contractor assistance, and safety in the workplace. In spite of a collective concern about world markets for an unknown period of time, I’m heartened to hear compassion and integrity from CEOs, executives, and board directors focused on doing what’s right. But while I listen to these productive conversations, I can’t help but think about new challenges that are emerging in our connected-but-isolated world.

 

The novelty of a “shelter-in-place” environment creates a new reality with immediate upsides. Air quality is better, Venetian canals are clear enough to see fish, and we aren’t spending as much money on commuting or eating out. But as the novelty wears off, leaders both in their workplaces and in our communities will face a different set of challenges brought about by the lack of eyeball-to-eyeball interaction, and the impact of leadership will become more important.

 

Inside our Organizations - Creating and Sustaining a Healthy Work Culture

 

The work-from-home (WFH) phenomenon is new to many. Those who grew up with a model valuing “face time” may find it difficult to imagine that any real work can get done outside of the office. They may be aggravated to hear the dog barking in the background of a conference call or roll their eyes to see a toddler running into mom’s or dad’s office during a video conference, but they are in the minority. Most people are not only fine with this business approach but perhaps saying, “It took a pandemic for my boss to trust that I can get my work completed while a load of laundry is also getting done”. In some ways this could be a bit of a welcome break. With a reduction in long commutes, and increased time with family at home, “work-life balance” is becoming more manageable as the two entities blend together. Meetings are more efficient with people less likely to pontificate on a conference call, and experienced telecommuters know that socializing only happens if you dial in five minutes early.  

 

One thing that may suffer, however, is organizational culture. Culture defines how people act, how they resolve conflict, whom they trust, and to whom they turn when challenges arise. Strong cultures are built when people have shared context, form relationships, solve problems, and learn acceptable ways to react to both verbal and nonverbal cues. In great organizational cultures people show they care, take time to listen, and reach out to one another in times of personal stress.

 

This is tough to sustain over a long period of social distancing. How will people stay connected to one another? Will they still feel part of a team if they don’t see one another regularly? How will they know the financial health of the organization? Will they worry about their jobs? During a time of crisis, leaders spend a great deal of time with their boards and executives keeping business on track and taking measures to mitigate risk. However, as the period of uncertainty continues, they and their teams must be able to take the pulse of the wider organization.

 

Things to do:

 

• Provide context. Hold virtual town halls. People need to see their leaders during times of uncertainty! Providing people with information about what the company is doing to stay safe, work with customers, and help in their communities will keep employees engaged and connected. If possible, open up to Q&A, allowing employees to ask questions in real time. By using technology, there is safety in the anonymity of questions being asked during difficult times.

• Communicate your actions. You are doing things in a crisis. You may need to tighten controls, reduce variability, manage your brand. People may not understand until you let them know why, and your actions can easily be misconstrued when you alone are privy to information. Take time to share and bring the team along.

• Look in on employees who are new to the company or to a job. Nothing is worse than joining a company, or being sent on a new assignment, and then not being able to integrate. Check in with those who are still learning the ropes and make sure they feel looked after.

• Create virtual social get-togethers. Many organizations are holding virtual happy hours, celebrating milestones, and recognition events. Share how your organization is working with the community during these times. The importance of social interaction is part of a healthy culture and breeds trust and familiarity and can spur innovation.

 

Outside in our Communities – Looking out for the Isolated

 

In our wider community, social distancing exacerbates the isolation of many segments of our population. Nothing can be more frightening than living through uncertainty alone. Whether they are young adults living alone away from families, single parents bearing the weight of raising kids on their own, or seniors living in isolated communities, this is a time of great stress and loneliness. In spite of the availability of television shows, podcasts, and social media, a world without positive human contact can be debilitating. In the interest of preserving physical health, we run the risk of creating a mental illness pandemic.

 

Particular groups at risk:

 

• Senior citizens. Those who are living alone in their homes or in senior care facilities are likely experiencing the greatest level of loneliness in their lives. Many senior care centers are no longer holding meals in common areas, and having people dine in their rooms. With visitors not allowed, they are effectively confined prisoners in facilities. The added complication of dementia in the senior population creates even more confusion and misunderstanding on the part of residents, and frustration and stress for their caregivers and facility workers.

• Caregivers. Whether they are taking care of special needs children, an ailing spouse, or elderly parents or friends, they will be particularly stressed. The ability to find respite in the current environment is virtually impossible as change to regular routines of eating out, visiting activity centers, or going to the gym have all been disrupted. Offering to run to the store or have a meal delivered can go a long way to provide support and friendship.

• Children. Regardless of how much kids enjoy time off from school, the sustained change to that familiarity and routine is unsettling. As much as kids pick up cues from their parents, there is likely a degree of stress and fear that they are not expressing. Spend time allaying their fears and find projects to help others.

 

For leaders, this surreal temporary world brings new challenges to organizations and our wider society in the coming weeks and perhaps months. As social distancing impacts a cohesive work culture, it also impacts those who find themselves living in isolated environments, experiencing tremendous stress and loneliness. As medical experts seek resolution to the virus, great leaders in organizations and in our communities need to think about how to combat these social challenges. As we create distance for physical health, we must remember that isolation threatens the very thing that makes us uniquely human – the ability to interact with one another through friendship, empathy, and compassion.

 

 

 

Leadership in Innovation and Humanity

Last month, I completed an incredible week of brain stretching. On September 17-19, we held the annual TWIN Global conference in Chicago, a carefully curated event of 300+ top leaders representing corporations, entrepreneurs, nonprofits, academics, military, and the arts. We gather annually to explore, debate, and dialogue about how to achieve global prosperity through the exchange of ideas, and forging unlikely collaborations. When that concluded, I flew to Washington D.C. to attend the annual NACD Summit, a gathering of over 1,500 board directors who discuss and improve our knowledge about board governance, and challenges that face leadership in public, private, and nonprofit organizations. At the end of the week, my brain felt as though it was going to explode. At both events, a terrific lineup of topics, presented by engaged speakers and attendees, perturbed and challenged my paradigms. It was a healthy dose of innovative thinking as I consider my role in board leadership and business in the coming years.

 

The topic that was common throughout both conferences was the pace of change and disruption that we will undoubtedly experience in the next decade.  As we consider innovations in technology, data collection and management through AI, speeds of communication through 5G, automation through robotics and drones, and increasing technological advancements in bioengineering and medical breakthroughs, the potential of progress is tremendously exciting. However, we also took sobering stock of a global backdrop of geopolitical conflict, heightened religious fractioning, an increased disparity of wealth, growing distrust of establishment, and a continued shift in the climate of our planet.  These factors contribute toward a significant increase in discord and conflict.

 

In many instances, the elements of innovation that excite me seem to be the very topics that cause concern. Technological progress is inevitable, but will we be able to handle it properly? Underpinning my consternation is the belief that unless we share a strong set of values in our collective humanity, we are headed for a future we won’t want to see.

 

• Collection of data can be tremendously positive when used to compare research results in fighting diseases such as cancer and Alzheimer’s. However, Facebook and Cambridge Analytica taught us that misuse of data collection results in biased actions and infringement on personal privacy.

 

• 3D printing can enable efficient delivery of products in real-time environments, eliminating cost and time constraints of production and shipping. However, it can also be used to print weapons to avoid required registration, or products that fail to meet quality standards.

 

• Robotics promises to take the place of humans performing repetitive and dangerous jobs, and in places that are difficult to access. However, they could displace significant sectors of the population, creating large groups of unemployed workers who are not adequately trained for other jobs.

 

• AI technology holds the promise of improved forecasting of natural disasters, enhanced automation, and elimination of human errors. However, misuse of AI can also facilitate creation of more deep fake videos, and dangerously biased AI modeling.

 

 

In all industries, technology can be the basis for improving our world. In consumer-facing industries, we’ve already seen the impact that it has had on the retail, communications, and home entertainment worlds. Amazon, Apple, and Netflix have redefined many of our day-to-day habits, and have created more opportunities for people to access products and services previously out of reach. In the industrial segment, technology will increase use of data and reduce cycle time as well as the need for humans to perform dangerous tasks. However, in a society void of fairness, compassion, and respect for differences, the malicious use of technology can be destructive in the hands of those focused on furthering positions of power, politics, and greed.

 

The importance of continuing to build fairness, compassion, and empathy in our educational system, mentoring efforts, and in our private and public sectors takes on an elevated level of importance as we move forward in this world of unprecedented change. Leadership becomes even more important as we balance the progress of technology against the backdrop of humanity that makes our species so special.

 

 

 

 

 

 

S&P Milestone

It was announced this week that the last of the S&P 500 companies that had an all-male board named its first female director.  Although this news might seem ridiculously mundane prompting an “it’s about time” reaction, to many of us who have been pushing for the advancement of women in the executive suite and boardrooms, it seems like someone, somewhere, should be ringing a bell. 

A news article said that earlier in the year, the Washington Post singled out Copart for being the last company in the stock market index to be gender-homogenous. At the time of that call-out, Copart indicated that it was planning to add a “highly qualified, accomplished woman” this year. I’m so glad they made this clear because I’m sure the company’s shareholders would be tremendously upset if they felt that “any woman would do”.

The often-made comment that women who are being sought for board service need to be “highly qualified” is an indication of a bias (and I won’t even call it unconscious) that in order to increase diversity and to be more inclusive, a bar might need to be lowered to get that done. 

There is nothing that can be further from the truth.

It also assumes that every man sitting around the table is there because he is “highly qualified and accomplished”.

I have witnessed a few exceptions to that assumption.

In over fifteen years of board service on public companies, I have worked with incredible men and women dedicated to organizational oversight and stewardship. Most boards are made up of individuals who bring unique skills and backgrounds that gives them a perspective that is valuable to the company's strategic challenges. On some boards, there is sometimes a person who shows up, rarely says a word, and whose voice is only heard when a motion needs to be made or seconded. I’m never quite sure why they are there, and hope that perhaps in between board meetings, they are somehow adding value and helpful counsel to the CEO and leadership in another capacity. Short of doing that, I think of these as “taking up space” directors who need to be removed through good governance and strong board leadership.

I can honestly say that I have never seen this trait with female directors. The women with whom I serve on boards have always “hit the ground running” making a substantial contribution from the first day they are at the table. In large part, this is due to the hurdles we had to overcome on the way to becoming “highly qualified and accomplished” during our executive careers.  Regardless of the industry from which we hail, we had to learn to be heard, overcome significant biases, and achieve results in spite of many odds and very few role models. For this first generation of women who are joining corporate boards, there is no doubt that by the time they pass the tribulations of their careers, scrutiny of executive recruiters, and interviews of nominating and governance committees, they will pass the test of being “highly qualified and accomplished”.

Hurray for the Copart decision, and for the S&P milestone that was achieved this week. May we always govern in a way that causes us to never doubt the qualifications of any public company directors – be they male or female – as the world continues to become more complex and challenging for public corporations. And may we eliminate the term “highly qualified and accomplished” from our lexicon in only describing board candidates who look different from the norm.

 

 

 

CES - Implications for Board Leadership

At a recent Texas TriCities NACD peer-to-peer dinner, hosted by Grant Thornton, a group of directors gathered to hear about and reflect on the impact of the 2019 Consumer Electronics Show. At this year’s event, Grant Thornton organized a curated experience of the massive conference, to help streamline and focus the experience of board directors faced with over 4,500 booths of technological innovations.

We learned about things that were coming: 5G connectivity (potential for instant simultaneous translation), 8K televisions (imagine watching sports), flying cars, armor-protected drones that can stop bullets, and various applications of AI and block chain.

We could have spent all evening speaking about all the fascinating gizmos and technologies that are being developed, but reined the conversation back quickly to the implications for us, as directors, relative to how we guide strategic dialogue in the boardroom. Three primary takeaways: (1) Creation of new business models, (2) How do existing companies recognize disruptive technology, and (3) The importance of being directors who are engaged in digital transformation.

New business models

There is no doubt that with the exponential growth of new technology applications, there will be new business models that emerge. Whether it’s travel/entertainment, retail, healthcare, or financial services, the applications of the likes of AI, 3D printing, and 5G will undoubtedly create opportunities for more companies such as Uber/Lyft, AirBnB, Apple, and Tesla to redefine how we go about our day-to-day lives. To grasp the pace of change, one only has to consider today’s definition of what a “phone” does to what one did a generation ago. Learning today takes place not only in classrooms, but in the circuits of machines that will be accessible through applications such as “Google Mind”. Augmented reality may today be thought of as a helmet worn over our heads for gaming, but as we consider its applications around human exoskeletons, it has implications for workplace health and safety yet undefined. Understanding the possibilities of new business models is crucial if we are to guide companies through this exciting next chapter of innovation.

Challenges for established companies

The fact that most business disruption happens from outside mainstream companies suggests that most large organizations miss many strategic shifts. This is mostly likely due to the past success of organizations that might have been yesterday’s disruptors. Countless case studies are written with the “how did they miss it” narrative, as though long-established, innovative companies (cue Sears, Kodak, Blockbuster) should have seen the advent of disruptors that wiped them out. It’s as though hindsight is a missing leadership skill. The difficulties are numerous; how to deliver of continued performance results in an existing business model whilst giving permission and space for innovation to create a wholesale shift, the ability to attract different sets of investors, and how to build a new skill base in the workforce to move from “old” to “new” economy. The emergence of corporate venture capital groups, creation of internal innovation hubs, and collaboration with start-up incubators are just a few examples of how established organizations are trying to create pockets of innovation that might end up sun-setting the very characteristics that define success today.

The Role of Directors

The role that independent directors play in understanding how technology can impact the business is crucial. As individuals who are not mired in the daily exercise of customer capture, cost control, and personnel matters, directors are uniquely positioned to help the executive team explore options and consider implications on the existing business. They should challenge executives to push the boundaries of “what could happen” that would wreak havoc to the revenue stream, and what skills are needed to answer future strategic imperatives. This requires a constant quest for learning and gathering external input, and participating in events such as CES, forcing us to consider a business horizon that goes far beyond our board tenures. Of the many memorable quotes from the evening, one that stood out was, “You can’t read a label from inside the jar.” Perhaps the greatest enemy of progress is a board that is too comfortable with what it knows and understands.

The most important characteristic of a world-class organization is that it consists of individuals – in both the executive suite and boardroom – energized by learning. The board processes must then allow that information to be integrated into regular, deep strategic dialogue. CES provides an incredible backdrop for a conversation around what “could be” that will undoubtedly, eventually morph into the “what is”.

International Women's Day

On the eve of  International Women's Day, I had the opportunity to speak to the inaugural gathering of HollyFrontier Corporation's WiE event (Women in Energy) at its corporate headquarters in Dallas. A local gathering of over 100 employees, combined with satellite offices connected via technology, resulted in 800+ members of the HFC family who tuned in for a conversation about Diversity and Inclusion.

 

The great thing about this event was that it wasn't just women who attended. Men and women, from all levels of the organization, representing different ethnic and national backgrounds, from across the company's North American footprint (and possibly the Netherlands if recent Sonneborn acquisition members joined) engaged in listening, learning, and participating in a dialogue about Unconscious Bias -- a topic which is critical to understand if we are ever to make progress in the D&I arena.

 

The presence of Unconscious Bias is the result of two primary forces that make us who we are; (1) How we are raised (including our environment and family structure) as well as (2) Our life experiences (education, religion, travel, work environment, interactions). Understanding how these factors contribute to the manner in which our brains store and organize our thoughts is critical to mitigating the personal impact of biases we bring to the workplace every day. We are unable to go back in time and change how we are raised, but we can certainly create life experiences that expose us to different people, places, and perspectives to help us raise our game of inclusivity.

 

Talking through examples of Affirmation Bias, Confirmation Bias, and Attribution Bias gave the audience context for many of the behaviors that we experience every day.  These biases can often explain why some people seem to have greater fortune in their careers than others. Our propensity to identify with those who share demographic makeup, agree with our political viewpoints, or resemble those who we are accustomed to seeing in various roles all play into the absence of true meritocracy in the workplace. Further discussion about Likeability Bias and Maternal Bias brought focus on some disadvantages that women, in particular, have on the job -- the tradeoff between being "competent" and being "nice", and the assumptions that are made regarding women who are mothers or in childbearing years.

 

Holding an event that involves participation of a wide cross-section of an organization broadens the conversation about Diversity and Inclusion, and truly addresses the primary goal of any such endeavor; that of building talent in a company. I am witnessing a new chapter in the D&I journey. It's no longer just about senior management commitment to D&I. The past 30 years and subsequent lack of progress demonstrates that showcasing companies and CEOs who say the right things doesn't move the needle in the corporate world. The new movement is grassroots. It recognizes that change can only occur if the ownership of meritocracy belongs to the entire organization. Identifying examples of Unconscious Bias and holding one another -- all colleagues -- accountable for its presence and impact is key to creating a truly inclusive workforce.

Lessons from Herb Kelleher

I read yesterday that Herb Kelleher passed away. He was founder/leader of Southwest Airlines, and touted as one who redefined the airline industry. He was someone whose leadership style was simple, authentic, and seldom replicated in a world confused by multiple stakeholders, media priorities, and political agendas.

 

Many years ago when I was a mid-level executive with Amoco Oil Company, I held a job titled, Manager - Customer Focus. In that role, I explored best practices of different companies in different industries, studied the then-popular topic of TQM (Total Quality Management), and brought ideas and suggestions back to the company. It was one of the best jobs I ever had because I worked for a great boss, had a ton of freedom (no one ever had the job before me), and got to meet a lot of external people -- something you seldom get to do when you work in a large corporation. Southwest Airlines was one of the companies I studied. I was so impressed that the culture Herb set at the top of the firm permeated the entire organization. Wherever he was, there was a buzz...and when he left, the buzz never stopped. 

 

My favorite Southwest Airlines story happened during that assignment, when I was actually flying a Southwest flight between Kansas City and Chicago. I boarded the flight based on my boarding pass number (they didn't have boarding groups then...just numbers based on when you physically arrived at the airport check-in counter). I got to choose my seat, and sat next to the window a few rows into the plane. A young man sat next to me, and over the duration of the flight, we struck up a conversation. As it turns out he was a Southwest Airlines employee -- worked as a baggage handler in Kansas City, and was going to Chicago to visit a girlfriend. What struck me was how he served as an incredible ambassador for his company. He spoke highly of his boss, the people he worked with, the things the company did to make people feel good, the pay, benefits, and why he enjoyed working there -- because it made people smile when he spoke about his company. I have used this as a story when I make presentations about culture and leadership even today. I've never forgotten the sparkle in that young man's eyes when he spoke about his company.

 

Companies pour large amounts of money into building their brand through advertising, social media, and PR. They spend hundreds of thousands of dollars hiring consultants to improve culture and measure satisfaction. The one lesson Herb Kelleher taught me is the one that is most important: “Your employees come first. And if you treat your employees right, guess what? Your customers come back, and that makes your shareholders happy. Start with employees and the rest follows from that.” It's really all so simple.Le

Shortcuts to Board Leadership

As a board director for over half of my professional career, I often get called for advice on how to get on a public board. “Can you introduce me to your recruiter friends?” “Which networks should I join to meet the right people?” “Would you look at my resume and tell me what you think?” As willing as I always am to speak, meet, and introduce them to people I know, I shake my head when I realize that in many of these cases, people are looking for a shortcut. They contact a recruiter, send a resume with a cover letter, and then wait for the call. They attend some networking events, pass out a load of business cards, and then wait for the call. I meet up with them again in a few months, and they wonder why they’re having such a hard time. They believe that because it’s a game of “who you know” that merely by meeting the right people, they will have an inside track onto a public board.

It doesn’t work that way.

There are no shortcuts.

Contrary to popular belief, it’s not about networking. It’s not about being at the right place at the right time, or attending the right conference or giving your card to the top board recruiter in every recruiting firm. There are countless business cards that have been passed out, resumes sent, and cover letters written. That’s the problem; there are countless. Cutting through the ocean of names that want to be put on boards is the real key.

As a result, I’ve spent some time recently reflecting on which recommendations I’ve made that have yielded success...and which have not.

To be recommended for a board position, you need two things: (1) A good narrative, and (2) Being top-of-mind. They sound simple, but both of these require personal investment and effort over an extended period of time, and in an ideal situation, the effort begins to happen long before you want to get on a board.

Your narrative

To get on a board, a strong advocate has to relay a compelling narrative, or story, on your behalf. It’s your reputation, your personal brand. In a short conversation or paragraph, in addition to your professional resume, every interaction you have with that advocate up until that moment becomes part of that narrative. The more they know you, the better the story can be. A strong narrative consists of the WHAT and the HOW of your story: What you know best, and how you are to work with.

The headline of the narrative is about your WHAT -- those skills that make you unique and valuable. The best boards are made up of individuals who not only represent the interests of the stakeholders, but who serve as advisors to the executive team for any issue that a company might face.

• Do you have particular skills/experience for the standing committees a board needs to fill: Financial, Compensation or Governance? If so, boards often look to add to the bench strength in these areas.
• If the company is going through a merger or acquisition, have you been through one? If so, what was your role? Having had M&A and integration experience is a great asset to a boardroom.
• Is a company in an old industry that is getting disrupted by an outsider? Have you experienced this or have you started your own business? Expertise in innovation and disruption is critical in boardroom strategic conversations.
• Is a company expanding into new global markets? Have you had experience running a business in a different country? Expertise in emerging markets can be invaluable.
• Is the company looking for industry or operational expertise? Have you faced many of the issues that the executive team is looking at? Having industry (or similar) operational experience can be critical in examining strategic choices and operational performance.
• Are you well versed in the digital world? Increasing focus on cybersecurity and 24/7 communications is becoming an important component in enterprise risk management.

In addition to the examples cited above, there are many other skills that, based on a company’s strategic focus, are desired in the boardroom. It is imperative that you craft what that headline is. Think about the career choices you've made, the risks you've taken. What gives you a different perspective than anyone else in the room? It’s like giving yourself a professional Rorschach test – what are the attributes that immediately come to mind when people hear your name? It’s a 30-second answer to the question, “What makes you uniquely qualified to be a board director?”

The second thing your narrative reveals is the HOW – what are you like to work with? This part of the story usually includes how the person knows you; whether you worked together, someone introduced you, or whether you met in another professional setting. Are you friendly? Genuine? Trustworthy? Boards only meet 4-6 times a year, so they need people who can hit the ground running, and be a full contributor from day one. Many board relationships evolve into strong friendships, primarily as a result of open dialogue, debate, and mutual respect.

Being top-of-mind

Whether your name surfaces through an existing board member or an executive recruiter, it’s essential that you’re top-of-mind when a board opening presents itself. This means going beyond just giving your card or sending a resume to someone, and calling them up every few months. Being top-of-mind means that when an opportunity comes up, you have created a strong enough impression in their mind that you’re the first, second, or maybe third person they think of. You’ve become the “no-brainer” and “easy sell” to a company looking to fill a board seat.

If you’re a sitting or former public company CEO or CFO, it’s easier. You’ve held a position that people believe qualifies you to sit in a boardroom, because you’ve already done it. Unless you’re someone who nobody likes being around, your path to a board career is much simpler. You need to call on a few people who are on boards or doing board placement, and let them know you’re available. You still need to differentiate yourself (see above regarding narrative), but the sacrifices/investment you have made in your career is certainly an advantage.

If your resume does not have “CEO/CFO” listed as a job you’ve held, you have more work to do. Your willingness to invest in relationships is what will make a difference. People need to be convinced that you are board-worthy, and that your experience is something that boardrooms are desperately seeking. Non-CEO/CFO directors often are some of the most valuable members on a board because of the different perspectives they bring to the conversation. However, becoming “top of mind” is imperative, and far more dependent on how strong a personal narrative you've developed, and how much you invest in professional relationships.

The more time you invest in a relationship with a potential advocate, the more comfortable he/she will be in telling your story. Handing out a business card to me has never yielded a recommendation. Sending a strong resume increases the likelihood. Having firsthand experience in seeing you go through a few years in your professional life gives me a narrative worth sharing. Good advocates are great storytellers. You need to provide a good story to tell.

Getting on a public board is not, and should not be, an easy feat. Corporations are increasingly scrutinized not only on their performance, but also on their behaviors and contributions to society. Correspondingly, director accountability and workload continues to increase.

Securing a position on a board requires significant commitment to self-improvement and investing in relationships. Investing effort in improving your narrative and deepening relationships with professional advocates is what makes the difference. As with everything else, in our professional and personal lives, the investment that we put into our endeavors is directly related to the outcome.

 

Unconscious Bias -- The Real Culprit Behind the Glass Ceiling

When I recently prepared to speak to a group of female entrepreneurs on the topic of women in business, I found myself once again pulling out presentations I’ve given over the past 25 years on the topic. Unfortunately, the slides and comments didn’t take long to update as data over the years hasn’t changed all that much. Women today earn the majority of bachelor’s degrees (57%), master’s degrees (62%), and most advanced degrees of PhD, medical and law (53%). We enter the workforce on equal footing with male counterparts in practically every industry. Nevertheless, the percentage of women in organizations decreases significantly as you move up the organization’s managerial ladder, until at the board level, the percentage is consistently at or below 15%. The results for women of color are even more abysmal.

I have always held that most acts of gender and racial bias in the workplace are not done out of malice. There are very few men (maybe just a few) who wake up in the morning thinking, “I’m going to make it especially difficult for women and minorities today.” Instead, most people go through the day exhibiting behaviors that have made them successful, and they have little reason or motivation to change. To the extent that the workplace is made up of a homogenous group of people, it’s a strong likelihood that a dominant behavior permeates, and the majority are oblivious that anyone is left out.

The problem is that when this hardwired behavior exists, decisions that take place in selection committees – where lists of names are considered for job opportunities – can be seriously flawed. In addition to the formal process of examining job descriptions and background of candidates who are qualified, two considerations are often made. The first is one of visualization, or “Whom can I picture in this job?” The answer to that question is usually pictured as someone who has performed the job in the past (or a younger version of themselves). This bias works against not only women, but also minorities who are underrepresented in management ranks. To the extent these jobs have been skewed towards white males, this becomes the first instance of unconscious bias.

The second consideration is subtler. It consists of assumptions often made by men, about women.

Societal biases toward traditional roles underpin assumptions about what women’s preferences regarding our lives. As a result, women are often denied job critical job opportunities based on these assumptions. The following are actual assumptions I have witnessed (or heard about secondhand) regarding women during their careers, and subsequent outcomes that limit their progression:

• Assumption: Women don’t want to relocate if it means their husbands would have to find a new job. Outcome: Women get fewer opportunities for promotions as well as fewer overseas assignments.

• Assumption: Women prefer jobs that have consistent hours; they like to know when they can be home. Outcome: Women end up holding more functional roles than P&L roles, which limits chances of         attaining C-suite jobs.

• Assumption: Women don’t like working in plants. Outcome: Women hold in more functional than operational roles in manufacturing industries, with less opportunity for important lateral development or promotions.

• Assumption: Women all have a difficult time returning from maternity leave. Outcome: There is a reluctance to give women big responsibilities during childbearing years.

• Assumption: Women become even less committed to their careers after they have two children. Outcome: There is reluctance to invest in training/development for women during critical years ages 25-40.

As a result, women are found most often in companies holding functional roles – HR, IR, PR, Marketing, and Finance. Of these functional roles, the only one that consistently can lead to the job of a CEO is the role of CFO. Most CEO tracks go through the line organization; most executives come up through the profit/loss positions.

Assumptions like the examples given above become more difficult to voice when there is even one woman present in the room. In that instance, people (including men) become more sensitized, and are quicker to offer alternative views. As a result, I’m an advocate for the idea that selection committees – those discussing the slate of names being considered for a job – should be diverse. People are better at keeping biases in check when they are sitting amongst people who come from different backgrounds.

The significance of unconscious bias is far greater than the attention it is given. When it comes to the topic of diversity, people are often looking for behavior out of malice and overt prejudice. However, in spite of countless programs installed, quotas established, and diversity training implemented, the needle has barely moved. Examining and mitigating unconscious bias is key to shifting the outcome.

(This post appears as a guest blog entry for 1871 Chicago).