CNNMoney.com recently reported the results of a surprising survey: Year-to-date CEO departures are up almost 10% from 2005.
Up almost 10%. That’s a big increase.
Ford Motor Company, HP (God, what a mess!), Viacom… all these are high profile organziations with recent chief executive changes; the truth is, however, that many of the almost-1,000 CEOs that left their jobs this year were from companies much like yours. Not necessarily a newsworthy event to CNNMoney.com, but significant nonetheless.
Why are these CEOs leaving, I wonder? The CEO job is, purportedly, the pinnacle — the crowning achievement of a management professional. Why, then, the departures? Is it disappointment? Apathy? Lack of motivation? Excessive oversight?
Hard to say, since it’s likely all this and still more. The attention on the CEO’s office has never been greater; the penalty for failures, even short term ‘blips,’ can be painful. New SEC oversight for publicly-traded companies has supported short-term positions in leadership — an unintended consequence of recent legislation.
During a recent CEO search, most candidates are sizing up my opportunity much more closely than I’ve ever seen in the past. they want details on the predecessor’s successes and failures, reasons for leaving, and detailed background on Boards of Directors. All this is good, of course, as it increases the likelihood of a solid match. It also, however, points out that the CEO position is no longer this “holy grail” of an opportunity; people are evaluating it much more for personal fit and likelihood of success, regardless of short-term financial value.
Regardless, it’s an issue we must contend with. Short-term results begats short-term leadership… no way around that. Should our focus really be so close-in, or should we create, manage, and lead our organizations for the longer haul??
Can we do that with frequent changes at the CEO chair?
2018 is in the can, finished. Stick a fork in it, it’s done.
A new day has dawned. 2019 is here, we’re over a week into it already. Soon, we’ll be discussing how fast January flew by, then Q1.
Have you made plans? Personal goals are great. Business objectives are super. But do you have specific plans to “do” leadership better in 2019? No? Why not?
Many of us create detailed plans for the new year. We spreadsheet various categories like personal, family, business, spiritual, health, etc. But we need to add one: Leadership. What can you do differently this year to improve your leadership impact? “Get better at it” sounds great but is woefully unactionable. (more…)
In her book Fierce Conversations, Susan Scott writes, “The fundamental outcome of most communication is misunderstanding.” That’s never been truer than in today’s multi-generational, multi-cultural workplace. It’s a subject that is as old as the Tower of Babel itself, but a couple of recent miscommunications reminded me that I am not the Great Communicator Ronald Reagan was. (more…)
Did you get the things accomplished that you set out to do at the beginning of the year? Most of them? Some of them? Any of them??
If so, great. If not, why not? Now–right now–is the best time to answer the following questions:
Regarding those things successful last year, what made them so? Was it because of me and my leadership, or in spite of? For those I lead, have I appropriately recognized their successes?
If we failed to accomplish some of our plans, goals, or objectives… why? Was it because we failed to do something we could have done, or were there really—really–circumstances beyond our control (honesty is important on this one)? For those I lead who performed less than satisfactorily, am I addressing that performance appropriately?
While you’re asking questions, how have you performed as a leader? Have you asked anyone… like those you lead? If not, now’s the perfect time. And I don’t mean just “hey, Jane, how am I doing as a leader?” Strangely enough, that might not actually elicit a meaningful response.
Consider a 360 survey if you haven’t had one, or haven’t had one recently. I’ve had lots of clients asking for them of late, so something good must be in the water.
Alternatively, you can DIY with something simple, like Start, Stop, Continue.
Sit down, one on one, with those you lead directly. Tell them you want—need–their feedback to improve, and to make their jobs better (and likely easier). Tell them you’ll be asking three questions, and you would like at least one input or response for each question. Then ask…
What should I Start doing that I’m not doing now?
What should I Stop doing that doesn’t seem to help you or others?
What should I Continue doing that you feel is positive?
Ask the questions, then shut up while they answer. No defensive drilling down, no “but what about…?” comments, nothing but “thank you for that input.”
If you’d like a simple worksheet for this, you can download by clicking on the image to the left.
And don’t forget to follow up with them in a few months to see how you’re doing with their inputs.
Speaking with a potential client, she asked about the process to “rebuild” their culture. The ensuing chat was interesting (I would call it “great!,” but the client hasn’t signed on yet…!)
First, culture isn’t actually “rebuilt.” It exists — in complete form — in every organization.
You may not LIKE the culture, may want to CHANGE the culture, but remember: It’s a change management effort, and has all the corresponding efforts and challenges of any organizational change process.
A specific culture can START anywhere within an organization, though it can only really be DRIVEN by the top. The top controls processes, most extrinsic motivations, environments, and sets values and acceptable behavior (the whole ‘lead by example’ thingy).
To change culture, all levers must be congruent… policies must match behaviors; values must be supported by procedures and accepted norms; compensation must match desired behaviors, actions, and results.
They’ve all got to work together, and when changing a culture (vs. maintaining), you really can’t afford even small inconsistencies.Without over-stressing my keyboarding skills, desired culture change will never take place via “programs,” off-sites, workshops or other isolated events.
It’s gotta be the whole enchilada. It must have complete support of the senior-most staff, and necessarily reinforced (in part) via performance management.
Investment in training is growing faster than any other human capital or HR-related expenditure. That’s according to Mercer, a ridiculously large consulting firm connected to Marsh.
Their recent survey showed that 51% of profitable firms (there’s a criteria for you) were planning on increasing their investment in Leadership and Career development in 2008. That’s more than for cash-incentives, base salary increases, and even health care.
If you’ve been waiting for leadership development to become really popular; to make the investment decision a near no-brainer, then now’s the time. In other words, everyone is doing it.
Besides just generally good for business, there’s other reasons to develop your managers and leaders:
1. You’re working with another small compensation increase for 2008 (see article on my website). You simply cannot afford to “buy” productivity and effectiveness. Alas, we must manage…
2. Better managers and leaders allow you to succeed in multiple areas of the business; more spending on training and less on base pay to attract, retain, and even engage a competent workforce.
3. Better management is a differentiator, higher pay is not.
4. Promotion and development opportunities are frequently cited as one of the top 3 reasons that high performers leave organizations.
So, your business will be better, key employees will stay longer, and base pay budgets don’t get blown out of whack — and we still can’t understand the significance of leadership development…?
The ensuing chat was interesting (I would call it “great!,” but the client hasn’t signed on yet…!)
To change culture, all levers must be congruent… policies must match behaviors; values must be supported by procedures and accepted norms; compensation must match desired behaviors, actions, and results.