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3 Ways to Improve Your Strategic Thinking

You may have heard the story of the truck that was immovably stuck under a bridge and how the solution came from an unlikely source. If you don’t know it, I’ll share it at the end of this newsletter.

I was thinking about this story when recalling a professional meeting where the topic was developing a global mindset. One of the speakers was talking about their company’s research showing that experiencing another culture has a significant impact on one’s strategic thinking. “Experiencing” didn’t mean going there on a vacation. It was an immersive, longer-term experience, like ex pat assignments or managing a global team where you had to travel to work within their culture somewhat regularly.

The speaker noted that these assignments have this profound impact because they challenge your perceptions and perspectives of the world. These different perspectives allow you to be more nuanced in your thinking about how different parts of a whole interact, the variables that impact it, and the resulting implications. Your competitors are increasingly global, not just national or local. Therefore, such experiences help you to think more like (and outthink) your competitors, to anticipate trends, and to consider solutions and strategies from a broader array of possibilities.

How, then, can you stretch your perspectives to help develop your strategic thinking when working globally isn’t a possibility (or, at least, not yet)?

  • Regularly interact with people in a different function or area of the company. Marketers and engineers don’t think alike. Operations people think differently than researchers. See how someone different from you may experience the same issues or the organization itself.
  • Interact with those outside your industry.  For years, benchmarking was the buzzword when you wanted to get a more strategic perspective and to gain some competitive advantage. Benchmarking is often practiced with a closed-system approach. Life science companies benchmark other life science companies. Tech firms benchmark other tech firms. That’s important, but it’s also somewhat limiting, especially in a world where industries and disciplines are bleeding together like never before. The perspective of someone in a different industry about your issue or situation will cause you to think about the variables and interactions more broadly, more strategically. One of the things that made Steve Jobs so successful at product design was that he included perspectives he gained from things as diverse as digital animation, calligraphy and architecture.

When we hire people who are mostly like ourselves we multiply our strengths… but also our weaknesses and blind spots.

  • Hire people who are different from you. We’re all familiar with research which shows that diverse organizations are generally more successful. In addition to the typical diversity categories we’re used to thinking about (gender, race, age, etc.) we should look for diversity of thought, experience, and education, among many other factors. When we hire people who are mostly like ourselves, we multiply our strengths… but also our weaknesses and blind spots. Make sure to regularly ask those you’ve hired for their perspective and input on the business issues you are working to address.

Thinking about your daily business interactions expansively will help you develop the broader perspective needed for strategic thinking.

So, the story of the truck goes like this. The top of the truck was wedged against the underside of a bridge, and it could go neither forward nor backward. It just wouldn’t budge. Traffic was backed up and police and tow trucks were trying to figure out how to get it out. A little boy walked up and asked what was going on.  The police officer explained the dilemma. The little boy looked at him and said, “let the air out of the tires.”

Alignment + Agility = Competitive Advantage

Our previous two articles talked about creating alignment for success in 2021. First, your organization (and your teams) need a clearly articulated North Star and strategic clarity. Second, it is imperative to build a culture that reinforces alignment between how you work and what you aim to achieve. Alignment is essential for success. However, agility – in addition to alignment – will lead to competitive advantage.

Alignment without agility is stagnation.

Agility without alignment is chaos.

Over the past year, rapid response and breakneck adaptation have been watchwords for successful businesses in the COVID environment. The pace of that agile response has left people exhausted and organizations risking burnout among their teams. Some organizations have been changing so quickly that they have prioritized adaptation too highly. They are no longer aligned with or certain about their business strategy. And some feel they no longer recognize their culture. In a deep and dire emergency, business survival trumps culture.  Nevertheless, it has its negative consequences.

On the other hand, some of my clients are already worried that, as we approach a post-pandemic world, the desire for a sense of “normalcy” and decompression will result in a temporary, but dangerous stagnation. It could be very tempting to feed the longing for some stability, and focus too heavily on alignment, deprioritizing agility.

And therein lies the conundrum. Organizations that build and maintain competitive advantage create a balance between two competing elements: alignment and agility. It can be convincingly argued that the benefits of agility are only achieved within the context of ongoing alignment with strategy and culture. It is also a fact that change and alignment are, at their core, competing forces that require constant attention.

How can you create alignment and agility within your team?

  • Clearly focus on only a handful of strategic imperatives. And don’t assume clarity. Revisit those imperatives regularly with your team and discuss how the team’s work contributes to them. Use them as your guardrails.
  • Help strategy bubble up from the bottom.  People in the organization who are closer to the customers, operations and technologies often see opportunities and threats more quickly than executives do. In my HBR article, “5 Behaviors of Leaders Who Embrace Change”, I shared these two ideas for building this capability in your team:
    • Make opportunity-seeking part of the regular conversation. Simply asking questions like “What are our customers talking about? What do you think they will want a year or two from now? What new trends do you think will impact us?” sends the message that looking ahead is important. And that you value their input.
    • Advertise successes. Nothing breeds success like success. Tell the stories at company events and recognize team members who are looking ahead and identifying opportunities. Demonstrate that the status quo is not enough anymore.
  • Encourage experimentation and learn from failure:  Too often, traditional organizations’ first response to a risk is to ask, “Why?” Change agility requires leaders to ask “why not?” and to establish opportunities for pilots, prototypes, and experimentation. Experimentation is an integral part of R&D. While an overall strategy informs the researchers’ focus, any R&D scientist will tell you that there are sometimes dozens of experiments that don’t get results and that, without those failures, they wouldn’t have been able to find the successes.
  • Reallocate resources with discipline.  As Sulls’ and Homkes research found, organizations tend to move too slowly or move quickly but lose sight of the strategy. I consulted to an organization a few years ago where moving too quickly without discipline was hampering their ability to achieve results. The CEO had started the company and was the classic early-stage entrepreneur; extremely responsive to market needs, ready and willing to change strategy, and endlessly shifting resources. However, the company was not early stage anymore and this nearly sole focus on agility led to a complete lack of follow-through, very little alignment and was seriously impacting results. The board removed him and named a new CEO who added a new level of discipline to resource allocation through a combination of centralized oversight and distributed decision-making.

Start 2021 with the ideas we’ve discussed in these three articles – defining your North Star, creating strategic clarity, building a strong culture and creating aligned agility – and you will have improved your ability to thrive.

Re-frame Your Feedback

I have a leadership challenge for you. You will need to execute this challenge at the most foundational level of the leadership experience — in the one-on-one relationships you have with individuals on your team or in the company. The challenge relates to feedback.

I’ve found over the years that giving feedback is often not the favorite part of the leadership conversation. I believe this is true because for many of us feedback means hearing something negative. We only think about giving feedback when it’s about what someone is not doing well or about a mistake that person made or about what that person needs to do to improve. For the next week, my challenge to you is to make

Feedback = Positive

One of the things research has proven over and over again. but hasn’t seemed to make it into leaders’ thinking is the power of positive feedback. Several years ago The Corporate Leadership Council did research on the impact of one-hundred-plus performance management practices on bottom-line results and employee satisfaction. Positive feedback was one of seven practices that had significant impact on both results and satisfaction, and the impact was far greater than feedback that was focused on the negative. The ratio of positive feedback and developmental feedback that seems to have the biggest impact is about 4:1 (i.e., 4 positive, 1 negative).

So, your challenge is to catch people doing something right this week. Focus on a couple of team members and try to get close to the 4:1 ratio.

When you provide your positive feedback, remember a couple of guidelines:

  • The feedback should be specific and situational. Tell them the specific situation you are talking about.
  • It should focus on behavior. What did they do or say that created a positive result?
  • It should describe the impact of their behavior. What was the positive impact they created? How did it affect you or the team or the company or the customer.
  • Avoid vague feedback like “great job” or “way to go.” One of the reasons to give positive feedback is to help someone replicate the behavior and results in the future. If he’s not sure what you’re talking about, it’s harder for him to make it happen again.

Why Engagement Isn’t Just About Soft Stuff

Employee Engagement

If you’re serious about improving performance and driving growth, focus on how happy and engaged your people are. That may seem mamby pamby, but there is growing evidence that it’s not such soft stuff.

Here are a couple of Gallup statistics to consider:

  • Actively disengaged employees erode an organization’s bottom line.  Within the U.S. workforce, Gallup estimates this cost to be more than $300 billion in lost productivity alone.
  • Engaged work groups show higher productivity, fewer safety incidents, lower absenteeism and are more profitable than disengaged work groups.  Their research shows that engaged organizations have 3.9 times the earnings per share (EPS) growth rate compared to organizations with lower engagement in the same industry. (Gallop statistics)

Now the question is. “What really drives engagement?” Teresa Amabile, a Harvard Business School professor, and Steven Kramer researched that question. What they determined is that of all the events that engage people at work, the single most important is simply making progress doing meaningful work. In a September 4, 2011, New York Times article, Amabile and Kramer note, “As long as workers experience their labor as meaningful, progress is often followed by joy and excitement about work.” Interestingly, this positive “’inner work life“ (as the researchers call it) has a profound impact on creativity, productivity, commitment, and collegiality.

The leader’s role, then, is to help people make progress — remove obstacles, provide support, recognize progress, and provide feedback on what’s not working. Unfortunately, almost all managers don’t see making progress as a compelling motivator. When Amabile and Kramer asked 669 managers from around the world to rank five employee motivators, they ranked “supporting progress” dead last. Ninety-five percent of these leaders failed to recognize that progress in meaningful work is a far more important motivator than raises and bonuses.

When was the last time you talked about any of this with your people? Probably not recently. Conversations with our teams are usually about financial results, how many deals are about to close, or where someone is in a project.

Next time you are trying to create motivating environment, don’t automatically think about traditional rewards. Think about whether your people feel like they are moving up the trail or if they feel like their pushing a boulder up a mountain only to have it roll back down on them.

Then ask yourself how you can bring more of of a sense of progress to the work and the workplace.

Make Your Team Smarter

Executive Team

Executives  and managers are an action-oriented group. That’s usually one of the characteristics that has made them successful. They see something that needs to be done and make sure it gets done. Unfortunately, when they’re working as a team, that drive for action makes the team do dumb things.

 

The dumb thing they do is jump right into solving the problem — identifying courses of action, recommending solutions, pushing to make a deadline.  But, wait, isn’t that what they’re supposed to do?  Well, yes, but there is a better way to do it. You see by just jumping into solution-mode, the team often plunges into conflict because they never agreed on what the issue was they were trying to solve, never spent a few minutes setting up a process, and haven’t really vetted the reasonableness or effectiveness of a solution.  Then, it’s  well into the conflict before they realize that the reason for the conflict is that they are not all on the same page. Don’t get me wrong, I’m a big proponent of constructive conflict in teams. However, this type of conflict is an unnecessary time waster.

 

The drive for action often makes people feel like they’re ‘wasting time’ by spending time making sure everyone is on the same page about what the issue is, have criteria for successful solutions, and have put at least a small amount of structure around how we’re going to drive to solution. Actually, the exact opposite is true.  By doing some initial level-setting and planning early on, the likelihood that a team will come to the best solution and be able to implement it quickly is greatly increased.

 

Stepping back to move forward leverages everyone’s best thinking.  It makes the team smarter.

Push and Pull

Push and Pull

Over the past year, I’ve been working with an amazing business coach who has been helping me take my thinking to the next level. One of the biggest take-aways for me has been thinking about the balance of push and pull energy.

Push energy is what you do when you are advocating, telling, putting your opinion or expertise out there first. Pull energy is about asking, inquiring, allowing the other person to bring what they need to into the conversation.

Often, the leaders I work with struggle with this balance. Too often, they rely on push energy — focusing on telling others what needs to be done, building and selling a business case, pushing to get a change accepted. Don’t get me wrong. These are things that all need to be done and should be a part of what leaders do. It’s what people look for at certain times from their leaders. But, when we rely too heavily on the push, we are often met with indifference, resistance and compliance rather than engagement, enthusiasm and interest. When we rely too heavily on pull, people can sometimes feel like they don’t get our input or perspective. They are sometimes thinking, ‘just tell me what you want!’

Over the next several days, notice how often you are relying on your push energy to get things done and how often you are using pull energy. Take notice of the balance. If the balance is too much in one direction or the other, how can you shift your behavior to reset the balance?

Building an Accountability Culture

Building an Accountability CultureOne of the most difficult skills for many leaders to master is to artfully and effectively build accountability into the culture. They need to walk the line between creating a punitive culture, where people are afraid to be innovative, take responsibility or drive change because of the fear of failure and its ramifications. On the other extreme is the leader who wants to create such a feel-good culture that they let things slide and pretty soon people aren’t clear what, if anything is important and they adopt Scarlett O’Hara’s approach to dealing with adversity:  “Tomorrow is another day.”

In an accountability culture, each person takes ownership for achieving results.

Too often we think about accountability only when something goes wrong. Until then, we figure that people know what needs to get done and will do it. It’s what I call a rear view mirror exercise. A more powerful approach is to be mindful of creating a culture of accountability by using the ACAR model.

  • Align: To create a culture of accountability, you need to start by aligning goals, people and process. The first step is to ensure that individual or team goals are aligned with the larger corporate, group and department goals. People will give more importance to what they are doing when they understand how what they do fits into the bigger picture. Even better, explain the larger goals to them and then engage them in setting their own goals. Second, ask yourself if the work people are doing is aligned with their strengths — their talent– and with the goals you are asking them to achieve? The ability to use our strengths at work makes it much more likely that we will complete tasks and create results. Third, align the goal with what the individual finds motivating. When an individual is able to see how the work they are doing helps fulfill a personal need or aspiration, they will own the work. Finally, do we have enough processes in place for someone to achieve what needs to get done? If not, have you given them the capacity to create it?
  • Communicate Expectations: Do your expectations focus on activity or results? Am I accountable for the activities I engage in or the results they produce? Often it’s both. For example, we may have expectations for how someone works with other members of the team in order to achieve their results. Where accountability falls apart is when we focus solely on one or the other. We’ll reward the person who achieves the best results even though everyone knows their behavior flies in the face of what we say we value, leading to a toxic culture. Other times, we are so focused on people getting the activities right that we will give them an “A for effort”. We lose sight of the ultimate goal because we are so focused on the process that we create a situation where nothing seems to get done. Communicate what your expectations are — both behavior and results.
  • Acknowledge. We usually think of holding people accountable when someone is not making the deadline, when quality isn’t what it should be or when results aren’t achieved. Often, we are looking for where to assign blame. Turn that thinking on its head. Focus on those people who are doing what they are supposed to do and achieving results. Recognize them, point it out to others. Watch the impact it has. People will recognize that achieving results is noticed and makes a difference.
  • Redirect and Re-engage. Even after aligning, communicating and acknowledging, there will still be performance issues from time to time. You’ll still need to have the hard conversations. You will need to tell people that part of their performance is not where it needs to be. You will need to share your disappointment or describe the impact it had on the team. Most importantly, you then need to redirect and re-engage. You need to engage the individual in a conversation about how to improve performance. You need to recheck the alignment, the communication and the acknowledgement. The conversation should build a partnership in which the individual takes ownership of the work that needs to be done.

 

What Makes a Great Leader?

great leadersTwo different and interesting takes on leadership jumped out at me recently. They provide completely different views on effective leaderships.

In Praise of the SOB Leader: In this article, Marc Effron discusses research that looks at the impact of execution-related capabilities and people-related capabilities on performance. The execution-related capabilities — things like being persistent, organized, proactive, setting high standards and holding people accountable — have a positive impact. People-related skills like teamwork, listening, etc. do not. My question is, does focusing on the execution-related capabilities really mean that you have to be an SOB or can you display those capabilities in a way that honors the other person.

9 Surprising Traits of Truly Phenomenal Bosses: Inc.’s Jeff Haden shares 9 traits that your boss has that aren’t obvious because of what they do but because of what they don’t do. t’s these traits that he argues are what differentiates a truly terrific boss. The traits include things like forgiving and, more importantly, forgetting and allowing people to learn their own lessons.

Take a look at the articles. think you’ll find a couple of really good nuggets in both of them.

Spring Cleaning Your Priorities

Happy Spring CollageSpring is that time of year when everything is new again. The winter cold and drab is finally receding. It’s a good time to think about what needs some sprucing up in your company.

Take a look back at the achievements and new opportunities presented in the first months of the year. What’s been achieved? How are you progressing? What new opportunities are presenting themselves in your market? What’s going on with your people – what talent do you have and what talent do you need? Are development plans moving forward?

It’s also a good time to clean things up. What’s no longer relevant? How have priorities shifted? What can fall off of your (or someone else’s) plate? What processes just aren’t working anymore and need to be revamped? What talent is not working out and may need to be reallocated inside or outside the company?

Don’t just save spring cleaning for the yard or your home. Do some spring cleaning at work, too.

Five Capabilities Mid-Level Leaders Need to Forge the Future

Mid-Level LeadersMid-Level Leaders — Senior Managers, Directors, Senior Directors — are the linchpin for creating results in most of our organizations. Their task is to interpret the company’s vision and strategy, create a localized vision and strategy for their organization, and then create the capacity for execution and results. The role of bridging the strategic and operational, vision and execution future needs with today’s pressing demands, and the expectations of senior leaders and the front line has always been challenging. In today’s environment of multi-generational workplaces, rapidly changing technology, increasing competition and an ambiguous economic climate it is even more so.

                  Our recent research has identified 5 critical capabilities
                 Mid-Level Leaders need to help their organizations forge the future:

Drive collaboration and break down silos. Creating an environment in which collaboration across work groups, departments, time zones and geographies occurs easily is essential for Mid-Level Leaders to succeed. Previous barriers to collaboration are quickly falling away thanks to the collaborative tools and technologies that seem to change daily. Mid-Level leaders should make creating a culture of collaboration and investments in technologies to facilitate collaboration a priority.

Manage talent. No one has a better view to the young talent in the organization than the Mid-Level Leader. Mid-Level Leaders should conduct talent reviews to create a broader understanding of the talent in the organization and to develop key talent early in their careers.

Drive performance and create a culture of accountability. In a workplace where more and more people collaborate and where talent is valued, differences in performance expectations come more clearly into focus for everyone. The Mid-Level Leader needs to establish standards for performance and create accountability for meeting those standards. Nothing destroys the desire to collaborate or the desire for strong performers to make an impact, than the knowledge that people aren’t held accountable for their performance, or perceptions of favoritism, or lack of equity.

Make Effective Decisions. Effective, efficient decision-making is a key role for Mid-Level leader, especially in an environment of collaboration and cross-functional integration. Mid-Level leaders need to think about how they can establish approaches that allow them to get broad input efficiently, weigh and balance that input, and use it to make decisions that drive the organization forward.

Engage and Retain Talent. Innovation, creativity, and excellence are what will propel success for American companies as global competition increases. Mid-Level Leaders need to truly embrace the thinking that “people are our greatest asset” and focus on engaging and retaining talent broadly. More often than not people come to work wanting to perform well and make a contribution. The more the environment engages their hearts and minds, the better that performance will be.