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Leadership
Last week, I worked with leaders at California State University, San Marcos to talk about trust. We started the day by reviewing a TEDx talk given by Simon Sinek called, “First why and then trust.”
In the talk, Sinek explains that when an organization first starts out, its what and its why are inextricably linked. The founders and the first few employees can usually get together physically – look one another in the eye – and connect on a human level about a shared passion. Their values and beliefs are in alignment.
The larger an organization becomes, the more its what continues to grow. “The problem is,” says Sinek, “the why starts to go fuzzy.” That’s a split that can spell danger.
As more and more people are added to the organization, bureaucracy starts to set in and passion begins to fade. The further the what and the why are from one another, the greater the trust gap. According to Sinek and a growing number of leadership gurus like Stephen M.R. Covey, the trust gap is the biggest single challenge any organization will face.
One of the secrets to closing the trust gap involves a monkey, an ice cream cone, and an Italian graduate student. In the late 1990’s neuroscientists in Parma, Italy, were studying cells in a monkey’s brain that fired only when the monkey raised its arm. One day, a research student walked into the lab with an ice cream cone. When he absentmindedly raised the cone to his mouth, the monkey’s brain cells for raising its own arm were triggered. Researchers have since found that the brain is filled with neurons that mirror not only the actions, but also the emotions, of those around us.
These mirror neurons operate as antennae, allowing us to pick up signals in our social world. When we detect the emotions of another person through their actions, our mirror neurons replicate those emotions. That’s the foundation of empathy, and the beginning of trust.
Now think about how we transact business today. We largely connect with others through technology. Emails have replaced eye-to-eye conversations. Texts have replaced heart-to-hearts. Electronic signatures have replaced handshakes. Technology has benefited human kind in numerous ways, and will continue to do so in ways that we cannot yet imagine. Yet, we cannot allow technology to co-opt concepts like friend and network.
As Sinek states, “These require human experience that help us learn about each others’ values and beliefs. Technology can’t replace that. Mirror neurons don’t light up when we are sending texts.”
Wherever your organization is along its growth trajectory, be mindful of the what and the why connection. If bureaucracy is on the rise, chances are that trust is fading. And when we lose trust, we lose the heartbeat that fuels our passion.
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The trust gap is repairable. If you detect a split between the what and the why in your organization, you can begin the work of closing it by taking the trust test. Then walk down the hall and ask someone to lunch.
Question: Do you detect a trust gap in your organization? Are you willing to take the first step to repair it?
Join me and Dr. Tony Baron April 27th in San Diego for The Re:Imagine Leadership Summit. Discover how to create a culture that can respond swiftly, communicate freely, encourage experimentation, and organize as a network of people motivated by a shared purpose to meet the demand of the 21st century business environment. To learn more or register, go to: executiveexcellence.com/reimagine
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Leadership
On a September morning in 1982, Johnson & Johnson CEO James Burke was flying high, both literally and figuratively. At a time when many other businesses were battered by the economy, the $5.4 billion J&J was growing at a steady clip. Earnings were up 16.7% in 1981, and 1982 was on a steady growth track. But all that was about to change.
As Burke was reviewing ambitious plans for global expansion while on a routine business flight, he had no way of knowing that his team at the company’s New Jersey headquarters was facing news that was anything but routine. The Cook County Medical Examiner’s Office had determined that three people had been killed as the result of ingesting cyanide in Tylenol capsules, Johnson & Johnson’s leading product.
The reactions by J&J’s executives while Burke was out of reach has become the gold standard of corporate crisis response. They did not stall. Instead, they flew into action. By the time Burke landed, they had already ordered the removal of every bottle of Tylenol capsules from store shelves across the nation. Their actions would result in a $100 million loss, and a plummet in stock price from $37 to $7 per share.
“Their decisions,” wrote Jerry Useem in a recent issue of Atlantic Monthly, “weren’t really decisions.” Instead, the executives were acting more or less instinctively in response to the company’s credo – to put the needs and well-being of people we serve first. When faced with the biggest crisis in the company’s 96-year history, it was J&J’s credo, not its concern for earnings, that moved its executives into action in the absence of their CEO.
The reason Burke’s team moved so quickly while their CEO was in mid-air was because he had prepared them to do so. As Useem writes, “Just three years before the Tylenol scandal broke, Burke threatened to destroy the company’s credo. Although it had been a fixture of the company since 1943, it was regarded as a historical a tool for modern decision making. ‘If we’re not going to live by it, let’s tear it off the wall,’ Burke told his team, using the weight of his office to force a debate. And that is what he got: a room full of managers debating the role of moral duties in daily business, and then choosing to resuscitate the credo as a living document.”
(Photo: Reuters)
A similar scenario is being played out today. Apple is resisting the FBI’s request and a U.S. Magistrate’s Order to unlock the Apple 5c owned by Syed Rizwan Farook, one of the two killers in the San Bernardino mass shooting last December. Apple’s executives are keenly aware that lives have been lost, and that their decisions may result in a backlash including a boycott of Apple products. “Opposing this order is not something we take lightly,” wrote Apple CEO Tim Cook in a February 16 Open Letter to Our Customers.
Apple’s swift reaction stems in part from a deeply embedded core value of Apple – “We believe that we need to own and control the primary technologies behind the products we make.” Apple executives have made their core values part of the DNA of the company. Values they turn to when faced with a media firestorm, threats from angry consumers, and a hit to the balance sheet.
On the other side of this techno-political battle are the core values and priorities of the FBI. Specifically, its first priority, to “protect the United States from terrorist attacks.” The FBI’s actions are strongly supported by many, including Senator Diane Feinstein who stated, “I believe that as a government we have every responsibility and duty to see that Apple provides that information. And here we have the first court order of a phone owned by the county in which a terrorist act has taken place. And I believe very strongly that this — that Apple should voluntarily agree to it.”
But the former head of the U.S. National Security Agency and former Director of the CIA, General Michael Hayden, expressed his unwavering support for encryption. Speaking at a cybersecurity conference in Miami Beach, Hayden remarked, “I disagree with [FBI director] Jim Comey. I actually think end-to-end encryption is good for America.” This, despite Hayden’s role in the controversial surveillance of telephone communications between people in the U.S. and alleged foreign terrorist groups, and continued belief that the NSA has the “moral responsibility to use all of the authorities” it was given.
Whether Apple or the FBI stand on higher moral ground is not the purpose of this post. The purpose is to ask yourself where your team would turn in the face of a crisis. If the proverbial storm hit the fan tomorrow, do you have a credo, a set of values, a list of priorities that have been embedded into the DNA of your organization? Would your team instinctively know what to do – even if you were completely unreachable – even if it meant a potential hit to the balance sheet?
It’s not possible to have policies and procedures for every scenario that your organization might face. What is possible – what is imperative – is that your organization have a fundamental set of guiding principles. Those principles are not to be broken into in case of emergency, but to be used as a filter by which daily business decisions are made. That’s the only way to hardwire them into the DNA of the organization. Only then can you be certain that your organization can be prepared for any scenario whether or not the CEO is in the building. Have you prepared your team to pass the test?
Question: Does you team know how to respond to a crisis if you are unreachable?
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Join me and Dr. Tony Baron April 27th in San Diego for The Re:Imagine Leadership Summit. Discover how to create a culture that can respond swiftly, communicate freely, encourage experimentation, and organize as a network of people motivated by a shared purpose to meet the demand of the 21st century business environment. To learn more or register, go to: executiveexcellence.com/reimagine
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Leadership
This month, we saw the Broncos defeat the Panthers in Super Bowl 50. Ted Cruz and Hilary Clinton were on top in Iowa, then got trounced in New Hampshire by Donald Trump and Bernie Sanders just a week later. These wins and losses remind us that when we put ourselves out there – when we dare to go for our dreams – we’re not always going to come out on top. Sometimes we’re going to lose, and losing hurts.
But resilient leaders know that losing can be useful. It can remind us to keep our egos in check, and not, as Ann Landers wrote, “accept your dog’s admiration as conclusive evidence that you are wonderful.”
Today’s leaders face increasingly complex problems. No one person can have all of the answers. That’s why leaders of the 21st century must have the humility to collaborate. To step back and create space for others to contribute, and to learn from the contributions of others.
Harvard Business Review contributors John Dame and Jeffrey Gedmin called this “intellectual humility.”
Here are three principles of humility every developing leader should be taught:
1. Know what you don’t know. The higher you climb up the proverbial corporate ladder, the greater the temptation it is to believe that you are the smartest person in the room. But deep down, you know that you don’t have all of the answers. You may not even have all of the questions. Know when to defer and delegate.
2. Resist falling for your own publicity. Part of the leadership role is to maintain a positive outlook. Your confidence boosts that of your team and your customers. While it’s important to have a positive outlook, it’s just as important to correctly assess reality. Keep your spirits high, but your judgment at an even keel.
3. Never underestimate the competition. No matter how smart you are, how many hours you are willing to put in, or how creative your team is, do not allow a residue of hubris to set into your culture. There is always competition for your customer’s attention.
The first task of any leader is to assess reality correctly. You can’t do that without having the humility to know your own limits and be willing to step back and learn from the contributions of others.
Question: What specific actions are you taking to remain humble as a leader?
Early Bird Rates through March 1 (Save $50 off regular rate):
Join me and Dr. Tony Baron April 27th in San Diego for The Re:Imagine Leadership Summit. Discover how to create a culture that can respond swiftly, communicate freely, encourage experimentation, and organize as a network of people motivated by a shared purpose to meet the demand of the 21st century business environment. To learn more or register, go to:
executiveexcellence.com/reimagine
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Leadership
When it comes to leadership roles in publicly traded companies, it’s still a man’s world. That’s the not so surprising takeaway from a report released yesterday by Peterson Institute for International Economics. What is surprising is the finding that organizations with 30% female leaders could add up to 6 percentage points to their net margin.
So what’s the correlation between women leaders and profitability? According to Betsy Berkhemer-Credaire, author of The Board Game: How Smart Women Become Corporate Directors, one of the key reasons is risk aversion. “Companies with women on their boards tend to be a little more risk averse and have, on average, less debt,” Berkhemer-Credaire cites from a 2012 Credit Suisse report. The study showed that the net-debt-to-equity ratio at companies with at least one female director was 48%, compared with 50% at all male boards. Businesses with women on the board also reduced debt faster following the 2008 economic downturn.
“The Credit Suisse research,” says Berkhemer-Credaire, “shows an incontrovertible correlation between significantly better business performance and gender diversity on boards of directors.” The author finds that a convergence of seven global factors has set the stage for a significant increase in women on Fortune 500 boards:
- Regulatory requirements. The financial crises that rocked the last decade resulted in the Sarbanes-Oxley (SOX) and Dodd-Frank Acts. Compliance with these regulations requires, among other things, that companies appoint outside, independent board members to ensure objective oversight.
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- Quotas in Europe. The simple truth is that U.S. companies lag behind in board diversity. A 40% quota for women on boards was mandated in six European countries over a decade ago. Though quotas are not likely to be legislated in the U.S., the shift toward gender balance in Europe puts substantial pressure to respond in kind.
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- Women in government. The number of female world leaders has more than doubled since 2005. According to the United Nations, there are currently 12 female heads of government and 11 elected female heads of state. Their achievements on the international stage show that women have the capability and public endorsement to lead effectively.
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- Expanded expertise. Globalization and technology trends require companies to seek a diversity of knowledge and experience. Corporate boards are actively looking for candidates with global human resources backgrounds and technology expertise.
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- Investor demand. Institutional investors increasingly push for diverse boards – ones that can bring a variety of perspectives and ideas to handle complex challenges faced by today’s leaders. In California, CalPERS and CalSTRS manage billions of dollars in retirement investments. Trustees of these funds partner with gender diversity groups to create 3D (Diverse Director DataSource) a centralized database of viable female board candidates.
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- Demographic shifts. According to Berkhemer-Credaire, “the retirement age for most corporate directors is 72- to 75-years old.” Although most companies do not impose mandatory retirement or term limits, a number of forward-thinking companies are working on succession plans to create a diverse bench of board members.
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- Advocacy efforts. Across America, organizations are supporting women who are board ready. Some, like the Corporate Board Resource, offer a database of viable candidates for members only. Others, like the one created by Women’s Forum of New York, offer the database free to nominating committees and search firms.
The bottom line is that women in leadership can improve your bottom line. If your board is looking male, pale, and stale, it may be time to consider whether it truly represents the constituencies it serves.
Question: Is your board improving your bottom line? If not, have your considered gender diversity?
Join me and Dr. Tony Baron April 27th in San Diego for The Re:Imagine Leadership Summit. Discover how to create a culture that can respond swiftly, communicate freely, encourage experimentation, and organize as a network of people motivated by a shared purpose to meet the demand of the 21st century business environment. To learn more or register, go to:executiveexcellence.com/reimagine
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Leadership
All successful leaders have one thing in common: they are naturally curious people who are lifelong learners and satisfy their need for knowledge through reading. Whether you read a book a month like Bill Gates, or take your time to savor the text, reading can help you sharpen your leadership skills and keep current in an ever-changing 21st century business environment. Yet, from the 15,974 leadership books published in 2015 and offered on Amazon.com this year, what’s worth picking up?
We’ve gathered the most compelling titles from provocative thought leaders, and offer our top picks from 2015 that are well worth the turn of the page:
1. Team of Teams: New Rules of Engagement for a Complex World by Gen. Stanley McChrystal, Chris Fussell, Tantum Collins, David Silverman
What it’s about: Gen. McChrystal parallels how the military adapted to fighting a decentralized terrorist network and simulates today’s fast-changing competitive threats in the business world.
Why pick it up: If military leaders can drop their command-and-control leadership style, it’s time for business leaders to do the same.
2. Act Like a Leader, Think Like a Leader, by Herminia Ibarra
What it’s about: Counted among the world’s top leadership thinkers, INSEAD Professor Herminia Ibarra helps you decide how to best invest your time and to value what she calls “outsight” — the critical perspective we gain from external experiences.
Why pick it up: Self-reflection is important, but too much introspection anchors us in the past and amplifies our blinders.
3. Elon Musk: Tesla, SpaceX, and the Quest for a Fantastic Future by Ashlee Vance
What it’s about: Elon Musk has been described as Steve Jobs, John D. Rockefeller, and Howard Hughes rolled into one. This biography offers compelling ideas about innovation, managing people, and taking risks from one of the most iconoclastic figures in business today.
Why pick it up: To arouse your intellectual curiosity, gain insight from an innovative thinker, and keep an open mind when faced with new circumstances.
4. A Curious Mind by Brian Grazer and Charles Fishman
What it’s about: Brian Grazer, the producer behind “Apollo 13,” “Arrested Development” and “A Beautiful Mind,” schedules weekly curiosity conversations with big achievers: scientists, spies, CEOs and anyone else who sparks his interest and is willing to spend a few hours with him. In this book, Grazer and business journalist Charles Fishman explore the power of curiosity and its ability to inspire us.
Why pick it up: It’s human nature to surround ourselves with people who think like we do. Stepping outside of our circle expands our paradigm and illuminates our blind spots.
5. Yes, And by Kelly Leonard and Tom Yorton
What it’s about: The authors of Yes, And are executives at The Second City, the improv group where comedians like Tina Fey and Stephen Colbert got their start. This book offers techniques for in-the-moment acting that stimulates creativity and builds empathy.
Why pick it up: “But” stops the bus. “Yes, And” gives your team a safe space to generate unique ideas, then combine those ideas into the best result.
6. Work Rules! by Laszlo Bock
What it’s about: An exploration of new ways of thinking about and behaving at work from the longtime head of Google’s ‘People Operations.’ The result is a manifesto on how to approach work differently in order to attract and grow the best talent – and, in the process, for leaders to grow themselves.
Why pick it up: You don’t have to be the smartest person in the room any more. Create a workplace that brings in amazing people, then give them the space to do awesome things that helps everyone grow.
7. The Awakened Company by Catherine Bell
What it’s about: The bipolar boom-bust business model is failing. Leaders need to be mindful that business must exist to serve our inter-connectedness as much as to make a profit.
Why pick it up: It will remind you that work isn’t separate from life, and the metrics for success in business extend far beyond the balance sheet.
8. Team Genius by Rich Karlgaard and Michael Malone
What it’s about: Too much emphasis has been placed on individual performance. Team performance is fundamental to compete effectively in the global economy.
Why pick it up: Helps you tap into the collective intelligence of fluid teams to solve fluid challenges.
Some of these books are roadmaps. Others are toolkits. They’ll all help you shift your leadership paradigm. Enjoy!
Question: What was the last leadership book you read that challenged your thinking?
Interested in receiving some one-on-one leadership coaching?
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Join me and Dr. Tony Baron at our next Re:Imagine Leadership Summit April 27 in San Diego! Success doesn’t happen by luck. It’s intentional. Without a leadership roadmap, your team will wander aimlessly through shifting priorities leaving them confused about the purpose of their jobs. Come to a one-day immersion in transformative leadership crafted to inspire and engage you.
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Leadership
Last week, I had the privilege of giving a keynote at The Future of Work Conference in Boston. It’s the ultimate conference for transforming the world of work through inspired leadership.
HR professionals and thought leaders at the forefront of transformation shared how to drive business forward in the 21st century. It was a thought provoking and exhilarating two days.
Over the weekend, I selected one quote or concept from my fellow speakers to share with you.
If you’d like to see a collection of all tweets under the #FutureWork2015, you can find them here.
- Mark Edgar, HR Director of RSA Canada: “In 75% of organizations, HR is responsible for the future of work strategy, but it can only play this critical role if it has credibility.”
- Santiago Jaramillo, CEO and Founder of Bluebridge: “The annual employee survey is dead. If you’re still polling your employees once a year just to check a box, you’re missing out on what true feedback is all about.”
- Gary Keil, Director of Growth Leaders Network: “Talk about being blissfully unaware. Humans have access to a total sensory input of 13,000,000 bits per second. Yet, we are aware of only 15-20 bits per second.”
- Kerry Brown, Evangelist and Thought Leader at SAP: “Cutting organizational complexity in half would free up 447 million hours per year in US alone. Complexity drives resources – search for simplicity.”
The Future of Work conference was one of the top five events I have ever attended. I think this tweet from Kerry Brown put it best, “Why I love my job – wicked smart people and fascinating conversations.” If you’re interested in staying on top of the conversation, you might want to join the Future of Work Community. Check it out here.
Question: Who is responsible for the future of work in your organization?
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