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Leadership
In January 1988, author and management guru Peter Drucker made a bold prophecy. Writing for the Harvard Business Review, Drucker predicted that in 20 years organizations would cut layers of management in half and shrink their management staff by two-thirds.
Such has not been the case. In spite of the growth of alternative organizational systems like holacracy and the gig economy, management has, in fact, ballooned.
From 1983 to 2004, the number of managers, supervisors and support staff in the U.S. workforce grew by 90%, while employment in other occupations grew by less than 40%.
Some might argue that in an increasingly complex business environment, the growth of bureaucracy is inevitable. Yet, author and management expert Gary Hamel finds that excess management is costing U.S. companies $3 trillion per year. Hamel argues that bureaucracy imposes a heavy tax on today’s organizations in four considerable ways:
1. Managers add overhead. The average manager-to-employee ratio is 1:10. A small organization may have one manager and 10 employees. A company with 100,000 employees and the same 1:10 ratio will have 11,111 managers. That’s because they’ll add 1,111 managers to oversee the managers. Layers breed layers.
2. Bureaucracy distorts reality. The bigger the decision, those with authority to decide are at a greater distance from frontline realities. “Give someone monarch-like authority, and sooner or later there will be a royal screw up,” writes Hamel. All too often, decisions made on the top floor are unworkable on the ground.
3. Layers choke information. In a multi-layered management structure, communication gets bottlenecked, innovation stagnates, and silos grow. In their effort to prove their value, managers often impede, rather than expedite, decision making.
4. Hierarchy disenfranchises. Hamel argues, “As a consumer you have the freedom to spend $20,000 or more on a new car, but as an employee you probably don’t have the authority to requisition an office chair.” Treat an employee with distrust, and you shrink the incentive to dream, innovate and contribute.
Most managers are hardworking employees. But, research by Deloitte Economics finds that half of their time is spent on low-value, internal compliance processes.
The goal, of course, is not to fire all of the managers. Instead, redeploy their time from mind-numbing, non-value add work and into value-creating work. Sound impossible? It’s not. Just 25 people work at Berkshire Hathaway’s corporate headquarters. Morning Star, the world’s largest tomato processor, practices a management-less model in which employees are “self-managing professionals.”
Companies like these understand that bureaucracy is a drag — on creativity, on productivity, and on culture. What is the cost of bureaucracy at your organization?
Question: Is your hierarchy choking your productivity?
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CEE News is designed to help you with the challenges you face every day by sharing infographics, white papers, best practices, and spotlighting businesses that are getting it right. I hope you’ll subscribe to CEE News and it becomes a resource that continually adds value to your walk as a leader. If I can be of assistance in any way, please don’t hesitate to reach out!
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Leadership
Over the past 10 years, I have been honored to explore and debate the essence of power with Dr. Tony Baron. Specifically, how power impacts leadership, how leadership impacts culture, and, ultimately, how culture impacts performance.
With a double doctorate in psychology and theology and decades of executive coaching experience with Fortune 100 companies, you can imagine the depth and breadth that Tony adds to the subject. We are currently co-authoring a book that combines Tony’s scholarship and my straight talk about the challenges faced by today’s leaders. Meanwhile, I will be sharing guest posts by Tony over the next several months to give you a taste of what it’s like to have an amazing colleague and friend like Tony Baron. – Sheri Nasim
I have been fortunate to know many C-level leaders who have refused to trick, con, swindle, defraud, bamboozle, or dupe their employees and their customers. To them, a handshake meant something and their word was their bond. Aware that they have a responsibility to be a conscientious and competent steward within the company, they acknowledge their commitment to the public trust. Most of these leaders have never made the cover of Harvard Business Review, Time, or Newsweek but they have received the highest level of respect by their colleagues.
Yet, for many, their integrity came with a price. Some of these character-first leaders were fired, didn’t get promoted, harassed, smeared, or moved to another company prematurely because of their integrity.
I have also known a few executives who have cheated on their spouses, intimidated their employees, and intentionally deceived their customers for corporate profit and personal gain. Skilled in the art of positive public displays, those within the corporate inner circle knew the reality but feared for their jobs or bought into the illusion for their own gain. Some of these leaders were so good at covering their deceit that I too was fooled, sadly to say, for a while.
Yes, these leaders reach astounding heights and public admiration. But over time, their lack of integrity catches up with them. When it does, the costs are even higher. Ask Volkswagen. Last summer, Volkswagen made front page news by surpassing Toyota as the world’s largest auto maker. This June, Volkswagen agreed to pay up to $14.7 billion to settle a case of defrauding the public and the U.S. government for diesel emission tests. An additional $10 billion will be spent by the automaker to buy back or modify VW and Audi vehicles. The largest automaker settlement in United States history also added another $2.7 billion into a trust fund to assist with environmental and emission programs.
According to James Robert Liang, Volkwagen’s former Leader of Diesel Competence (yes, that was his title), they knew about the deception from the very beginning and their efforts were focused on improving the devices so the deception could continue. The lack of integrity has cost Liang his career as he pled guilty to wire fraud, violating the Clean Air Act, and defrauding the government. He will soon be sentenced for up to five years plus pay a potential fine of $250,000. In addition, Liang’s testimony could lead to indictments of a much broader swath of VW engineers and management.
The hard fact is that, if you want to be a leader with integrity, there is always a cost. Most of the corporate world is busy acquiring and protecting power and using people as instruments. When you choose not to sacrifice your integrity within that system, there will be a price to pay. But, it will never cost you guilt, shame, or remorse.
Transformative leaders know that building a high-trust organization starts by looking in the mirror. Organizations in which leaders have personal integrity are those that build trusted interpersonal relationships. Rather than personal profit and public adoration, they focus on making a sustainable and significant impact on the lives and livelihood of others.
Dr. Tony Baron is Distinguished Scholar-In-Residence at Center for Executive Excellence and an internationally recognized speaker, writer, corporate consultant, professor and the San Diego Director of Azusa Pacific University Graduate School of Theology.
Dr. Baron is the author of six books, including The Art of Servant Leadership and a workbook manual co-written with noted author and business leader Ken Blanchard. Throughout his career, he has worked with hundreds of companies including Ford Motor Company, Coca Cola Company, Warner Brothers Studios, and Boeing, among many others.
Driven by the premise that excellence is the result of aligning people, purpose and performance, Center for Executive Excellence facilitates training in leading self, leading teams and leading organizations. To learn more, visit us today at www.executiveexcellence.com or subscribe to receive CEE News!
Join us April 27, 2017 for our Annual Re:Imagine Leadership Summit! Learn how your organization can meet the demands of rapid change by creating a culture that can respond swiftly, communicate freely, encourage experimentation, and organize as a network of people motivated by a shared purpose! To be added to our registration list, please email info@executiveexcellence.com
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Leadership
The CEO’s eyes were filled with tears. I was sitting across from him in his office, bracing myself for the news he was struggling to share. “I just made a deal to sell the company, and most of my team will be replaced” he said. “They’re going to take this very hard. I feel like I’ve let everyone down.”
After a brief pause, I said, “The decision you made will certainly have an impact on your team. You’ve set a big wave into motion. But how each person responds to that wave is up to them. Some will let it wash over them and they will spin out of control for a while. But others will catch the wave and ride it to new heights. How each person reacts to that wave is ultimately up to them.”
In our years of research and consulting work, we’ve met executives who have been fired, laid off, or passed over for promotion. We’ve ridden with them through mergers, restructurings, and competition for top jobs. Regardless of how the wave was put into motion, we’ve found that one lesson is pretty universal: Even a dramatic career setback can become a springboard to success if you respond in the right way.
Here are three steps to help you rebound from a setback:
Step 1: Move from denial to acceptance
No matter how resilient they are, most executives process news like this by working through the five stages of grief. They start with denial that turns into anger. Next, they bargain over their fate, then fall into a period of depression. For many, it can take years to make it to the acceptance stage.
That’s partly because high achievers tend to have attribution bias. That is, they take too much credit for their successes and assign too much external blame for their failures. It’s a survival mechanism that helps to protect their self-esteem. Unfortunately, it also prevents learning and growth. The next time you suffer a setback, don’t get stuck in the grief cycle. Take action to explore how you contributed to what went wrong. Gather honest feedback from others and critically evaluate if you were culpable in the derailment.
Step 2: Look for meaning in your setback
When you’ve accepted reality, you’ll be ready to turn your loss into a win. Take advantage of the opportunity to do some deep thinking about who you are and what you want. Chances are, you’ve been climbing the career ladder for so long that you’ve gotten really good at doing something you don’t even like.
Many people fall into careers because of parental pressure or because they needed a job to pay off student debts. The Bureau of Labor Statistics finds that Americans spend over 37% of our lives at work. Over a working lifetime, that adds up to 99,117 hours. Use the power of the pause to allow yourself to look for work that has meaning beyond a paycheck.
Step 3: Move forward with confidence
After you identify possible next steps, it’s time to pick one. Admittedly, this can be a little frightening, especially if you’re venturing into unknown career territory. Reimagining your professional identity is one thing; bringing it to life is another. Remember, though, that you haven’t left your skills and experience behind with your last job, and you’ll also bring with you the lessons learned from the setback. You may also have revised your definition of success.
Use a setback as an opportunity to do some serious discovery work, then act with renewed conviction. Move out of the grief cycle and onto a path that will allow you to thrive.
Question: How have you taken advantage of a setback as a setup for a comeback?
Do you need guidance formulating a strategy for how you can rebound from a setback? Check out our Executive Coaching services or email me at snasim@executiveexcellence.com directly to set-up a free 30 minute consultation.
![4 Ways Management is a Drag on Your Bottom Line]()
Leadership
Over the past 10 years, I have been honored to explore and debate the essence of power with Dr. Tony Baron. Specifically, how power impacts leadership, how leadership impacts culture, and, ultimately, how culture impacts performance.
With a double doctorate in psychology and theology and decades of executive coaching experience with Fortune 100 companies, you can imagine the depth and breadth that Tony adds to the subject. We are currently co-authoring a book that combines Tony’s scholarship and my straight talk about the challenges faced by today’s leaders. Meanwhile, I will be sharing guest posts by Tony over the next several months to give you a taste of what it’s like to have an amazing colleague and friend like Tony Baron. – Sheri Nasim
Most of our seminal leadership theories have been developed around three significant streams: psychology, philosophy, and economics.
Sigmund Freud, the father of psychoanalytical theories on personality, focused on explaining human behavior around the concept of pleasure. Although he sexualized many of his theories, the business community recognized that the consuming public could be enticed to buy simply because of the pleasure that comes with instant gratification.
Friedrich Nietzsche, a German philosopher in the 18th century, stressed that pleasure is most enjoyed in a position of power within a social context. According to his famous work, The Will to Power, Nietzche’s thesis is that every action toward another person stems from a psychological desire to bring that person under one’s power. Nietzche’s formative theories on the social context of power are reflected by today’s leadership gurus and academics alike. Author John Maxwell asserts that “leadership is simply influence.” UC Berkeley professor Dacher Keltner maintains that “power is about altering the states of others.”
Milton Friedman, a brilliant scholar and Nobel Prize winner, understood business from a results-driven perspective when he advocated that “the social responsibility of business is to increase profits.” Friedman understood that human beings and, subsequently, organizations are pleasure-seeking and power-driven.
These thought leaders have tapped into our insatiable desire for pleasure, and how power is the ultimate pleasure-delivery system. Unfortunately, what brings personal pleasure to a leader can often have devastating results on the workforce and the public. We all know leaders who focus first on personal pleasure, protect their power at all costs, and treat employees like tools to achieve bottom line results.
The result? A workforce with meaningless vocations and a culture of learned helplessness. Gallup research shows that 68% of the U.S. workforce is disengaged, and the Edelman Trust Barometer finds that nearly 30% of employees don’t trust their employer, and more than two-thirds feel that CEOs are too focused on short-term performance.
One way to test where you derive pleasure as a leader is to ask yourself a simple question: Am I driven to lead or am I called to influence? Consider these differences between the characteristics of leaders who are power-driven and those who are called to lead.
Characteristics of a Power-Driven Leader
1. Lacks empathy for others and the amount of work placed on them to achieve often unreasonable goals.
2. Often reacts impulsively and demonstrates polarizing bouts of intense anger and personal but temporary happiness.
3. Feels they are the exception to the rule and are specially endowed because of their gifts to lead the organization.
4. Takes great pride in increasing and protecting their power through fear-based tactics.
Perhaps, instead, you feel a unique selection, or are called, to the role you are serving. A leader who feels a calling honors his or her responsibility as a steward over a task or organization.
Characteristics of a Called Leader
1. Creates personal margins in their life for reflection on the greater good.
2. Has an accountability group comprised of people who challenge their position and offer diverse opinions.
3. Learns the importance of self-regulation in how they speak, think, and act toward others.
4. Continuously grows to improve their competency and develop their character.
A called leader manifests a non-anxious presence and a determined perseverance to do the right thing, in the right way, with the right people.
Freud, Nietzche, and Friedman have provided us with an understanding of the unfettered drive for pleasure through power. Power-driven leaders may achieve short-term results, but invariably do so by violating character, values, and vision. We can be better. In fact, we can be called.
Dr. Tony Baron is Distinguished Scholar-In-Residence at Center for Executive Excellence and an internationally recognized speaker, writer, corporate consultant, professor and the San Diego Director of Azusa Pacific University Graduate School of Theology.
Dr. Baron is the author of six books, including The Art of Servant Leadershipand a workbook manual co-written with noted author and business leader Ken Blanchard. Throughout his career, he has worked with hundreds of companies including Ford Motor Company, Coca Cola Company, Warner Brothers Studios, and Boeing, among many others.
Driven by the premise that excellence is the result of aligning people, purpose and performance, Center for Executive Excellence facilitates training in leading self, leading teams and leading organizations. To learn more, visit us today at www.executiveexcellence.com or subscribe to receive CEE News!
Interested in learning how you can live out the characteristics of a Called leader? Check out our Executive Coaching services or email me at tbaron@executiveexcellence.com directly to set-up a free 30 minute consultation.
CEE News is designed to help you with the challenges you face every day by sharing infographics, white papers, best practices, and spotlighting businesses that are getting it right. I hope you’ll subscribe to CEE News and it becomes a resource that continually adds value to your walk as a leader.
![4 Ways Management is a Drag on Your Bottom Line]()
Leadership
Success is a powerful motivator. It can dictate how we spend our time, energy, and resources. It can influence relationships, schedules, and families. It may even become an all-consuming passion that leaves broken people and morality in its wake.
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Yet, success is not the highest calling that we have as leaders. In fact, compared to significance, it fades pretty quickly.
Consider these differences between success and significance:
- Success ebbs and flows. Significance always lasts.
- Success ends on the day you die. Significance carries on.
- Success is never enough. Significance satisfies the soul.
Unfortunately, many leaders spend their careers chasing success. And while some achieve more than others, almost all find it unfulfilling in the end.
Instead, think of success as a stepping stone to significance. You have to experience a certain amount of success before you can take the step to significance. You know you’re ready to start down the path if you’ve asked yourself what lies beyond professional and monetary success.
Here are five practical ways to begin:
1. Realize that your career won’t last forever. It’s never too early to start thinking about your legacy. How do you want to be remembered? Make a list and post it somewhere. It will help you make long-term, positive choices each day.
2. Be a leader worth imitating. In my post, “Leadership by Imitation,” I noted that you are a living example of what it takes to get to the next level. While no one is perfect, strive to model character, integrity, and morality every day. It will be noticed.
3. Focus on people. Not dollars. Begin to transfer the value of your work from your income to the people around you. Rather than pouring over how to squeeze another 0.01% point of profit, spend that energy focusing on your team. Find ways to inspire and equip them in their roles.
4. Start with one solitary person. Find one person who needs you today. Start there. Significance takes as little time as it does to have one cup of coffee, or be as simple as one heartfelt question. If you are unsure where to start, try this, “No, how are you really doing?”
5. Add biographies to your reading list. The next time you’re looking for something to read, try Team of Rivals or Long Walk to Freedom to consider how Abraham Lincoln and Nelson Mandela sought significance over success. Their stories will inspire you to think about ways to create meaning that lasts.
Rarely do people look back on their lives and savor their professional achievements. Instead, they celebrate the impact they have had in the lives of others. Give yourself much to look back on and celebrate. Stop chasing success. Start seeking significance.
Question: Where are you along the path to significance? Please leave your comment below.
Interested in receiving guidance on how you can move along the path to significance? Check out our Executive Coaching services or email me at snasim@executiveexcellence.com directly to set-up a free 30 minute consultation.
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Leadership
We’ve all come across them. Those leaders who people naturally gravitate toward. Though it seems counterintuitive, the magnetic effect these leaders have on people is not because of how people feel about the leader. It’s because of how the leader makes people feel about themselves.
These leaders have mastered the embodiment of two basic facts about people:
Fact 1: Every person matters.
Fact 2: Every person wants to feel valued.
By keeping these facts in mind, you can master the skills necessary to achieve leadership excellence. Here are three skills that will have the highest impact:
1. Help People Connect the Dots. In my post, “A Pharaoh Walks Into a Bar,” I illustrate why team members need to understand how their daily jobs fit into the big picture. It is your responsibility as a leader to help your team connect the dots. You may use formal tools like strategy maps, or pull up to your nearest whiteboard. Regardless of your delivery method, take the time to sit with your team members to help them visualize their role in the success of the organization.
2. Help People Grow. I know a CEO who likes to joke that, “The only thing worse than training your people and then they leave is not training your people and they stay!” All joking aside, one of the main reasons people give for leaving companies is that they stop growing. Growth brings energy, vitality, life, and challenge. Without growth, we’re just going through the motions. Create a culture of learning and growth to maximize the collective talent of your team.
3. Give People Sincere Appreciation. People who don’t feel appreciated are often the first to burn out or jump ship. It only takes a minute to recognize a team member for making a positive contribution. But, doing it right requires more than the occasional “Attagirl!” Give timely and specific praise to show your team members how you value their contribution. Here’s a quick demo to show you how.
One final secret to mastering leadership excellence – you can’t fake it. Leaders who genuinely care about their team members will invest the time to help each one feel valued. Be committed to helping them connect the dots, helping them grow, and giving them sincere appreciation. Every day is an opportunity to help people see the best in themselves and achieve their highest potential.
