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Doing Nothing – The Biggest Risk

September 1, 2016

Doing Nothing – The Biggest Risk

There’s a well-known parable about a wealthy CEO who took an extended business trip. He left his company in the hands of his three VPs, and gave each of them a portion of the net assets to manage in his absence. Based on what he knew of their capabilities, he gave the first one, we’ll call her Pat, $50 million. The next one, Chris, was given $20 million, and the last, Joe, was given $10 million. When the CEO returned, he asked for a report of their activities and earnings during his absence. Pat proudly showed him how she had doubled the assets entrusted to her, and now she had $100 million. Chris was pleased as well to show that she now had $40 million. Joe by now realized he had fallen far short of his CEO’s expectations. He was afraid to take a risk in losing his leader’s money, after all he couldn’t afford to pay it back, so he did absolutely nothing with it. Nothing. Joe didn’t even try to increase it, or put it in an interest bearing bank account. You can imagine what the CEO did with Joe after that. He likely didn’t have a job.

Now Pat and Chris could probably tell some interesting stories about their journey to doubling their assets; things they learned along the way both about themselves and their business strategies. They likely had some failures, but they were able to effectively manage through them.

Rut vs. Risk

Joe was afraid to take any type of risk with the valuable resources he had. He simply sat on them. Hopefully he had an idea of a business strategy he could try, something he wanted to do, but unfortunately he didn’t know how to do it or was afraid to take the risk. And by doing nothing, he effectively lost ground.

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Cracked Concrete – Is Your Business Foundation Sound?

August 5, 2016

Priscilla Archangel

Leadership

Cracked Concrete – Is Your Business Foundation Sound?

My husband and I recently realized that we would soon have to repair or replace the circular concrete driveway in
front of our home. We thought it would last a lot longer than this. Instead, after only 14 years, several concrete slabs are sinking; weeds are creeping up in the spaces between them; a large crack is running through one, courtesy of a heavy delivery truck; another slab is scaling; and the snow plows that are a staple of Michigan winters has left scrape marks on other parts.

We never thought this would happen because they look so strong and thick. We could wait another year or two, but the situation will only get worse. What we thought was a solid foundation with high structural integrity, wasn’t resilient enough to withstand a variety of above and below ground pressures. What if the quality or thickness of the concrete had been stronger? What if we had ensured that heavy vehicles didn’t pull into the driveway? What if we carefully used a walking snowplow each winter instead of hiring a heavy truck to plow it (not!). In hindsight it was hard to predict we’d be in this spot, but we now need to look at options to repair or replace all or a part of the driveway.

Fortune 500 Foundation

As I reflected on this disappointing situation, I happened to look at Fortune Magazine’s recently released list of the top 500 global companies. Their total revenue declined for the first time since 2010 by 11.5% to $31.2 trillion, and profits shrank by 11.2% to $1.48 trillion¹. Once strong sectors (such as Oil) and other stalwart corporations have stumbled, and are struggling to find their new footing. Companies that placed in the top 100 in the prior year, have now been displaced from the list.

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Who Owns You?

July 5, 2016

Priscilla Archangel

Character, Leadership, Priorities

Who Owns You?

CEOs and individuals in business leadership roles are frequently confronted with the dichotomy of making decisions to ensure the long term health of their companies, while maximizing short term profits. Their management roles compel them to lead the organization as if they are owners, but in reality, these organizations are owned by and at the mercy of investors and customers who determine the value of their products and services.

In a recent survey conducted by Fortune Magazine, 77% of CEOs said it would be easier to manage their companies if they were private¹. This feedback comes in a climate of increasing numbers of activist investors who purchase a significant amount of company stock, then proceed to make recommendations to the board and company leadership on how they should run it to increase value. To be fair, all such suggestions are not bad, and some have led to considerably positive results in the bottom line of these companies. But these CEO owners may find that their company’s mission and purpose are no longer aligned with where others want them to go.

Customers also have a powerful voice in shaping corporate strategies and decisions. Pepsi worked hard over several years to reformulate its diet cola to remove aspartame, thereby meeting the needs of people who wanted to move away from artificial sweeteners. However, many other diehard Diet Pepsi drinkers didn’t like the taste with the sucralose replacement, and complained loudly. So Pepsi recently announced that the old aspartame formula would return to the market, and they will sell both versions to meet the needs of all those customers. Oh, and did I mention that their sales volume slumped more than 10% during one of the quarters that the aspartame formula was off the market?
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Leadership Disciplines for Success

June 1, 2016

Priscilla Archangel

Leadership

Leadership Disciplines for Success

What disciplines do you practice to make your leadership successful?

Leadership can be learned, but it requires discipline to be effective. It requires identifying and establishing a pattern or system of constructive behaviors, then repeating them, until they become habits that are ingrained into your routine.

Leadership disciplines are controlled behaviors designed to accomplish specific objectives. They are determined based on the individual leader’s personal style and skillsets, their roles and responsibilities, and the culture and needs of the organization where they function in a leadership capacity.

Leadership roles and responsibilities are all relative. The ability to effectively hold a leadership role in a Fortune 100 company, a family owned business, a mid-sized non-profit, city government or as an entrepreneur is different for each person. But the need for discipline is consistent across every setting.

Leadership is establishing a relationship with others, to influence behaviors, to accomplish a goal. Thus leadership discipline is important because no matter the size of the team, everyone is watching and to some degree imitating the leader. And because everyone is watching the leader, it’s important to model the right behaviors. These behaviors are determined by the results the leader wants to accomplish.

Building Discipline

Athletes provide a great example of the need for discipline. They come in all shapes and sizes, from little league superstars to multimillion dollar professionals. But each have to learn the disciplines of their respective sport in order to improve their skill level, and to be competitive. There are four key steps to this discipline. (more…)

Discovering You Leadership Purpose

May 6, 2016

Priscilla Archangel

Leadership, Priorities, Purpose, Results

Discovering Your Leadership Purpose

We frequently talk about purpose in the context of individuals or organizations, but there are other areas where identification and understanding of purpose is critical. One such instance is in the context of leadership, and Isadore Sharp, founder and Chairman of the iconic Four Seasons Hotel brand provides a great example.

Sharp finished college with an architecture degree and joined his father’s construction business in the Toronto area. After building several motor hotels, he recognized that his passion lay not in constructing and owning hotel buildings, but in providing a premier guest experience and level of customer service. He wanted to “welcome customers and treat them like guests coming into our home.” ¹ So Sharp shifted from being a hotel owner-operator into managing hotel properties. His priority is a commitment to the Golden Rule, where employees and guests alike are treated with respect. Along the way he had to examine the behavior of his senior leadership team and part company with those who couldn’t lead by example. As a result, with 96 properties in 41 countries and annual revenues in excess of $4B, both customer and employee retention is high, and they’ve been on the list of 100 Best Places to Work for 18 consecutive years.

Sharp understands that his leadership purpose was to provide a premier level of hospitality and service. And over time, he recognized the importance of building the right team around him, whose perfomance aligned with that purpose. He fulfills his purpose based on leadership strengths of treating guests with respect and sincerity, and providing the right location and environment for a first class stay. He consistently embeds it into every aspect of his organization’s processes, rewards and behaviors; and believes that a true leader influences not from a position of power, but from a position of respect.² His leadership purpose and strengths, then work together to accomplish his leadership goal of generating a reasonable profit that benefits the company, hotel owners, customers and employees.

Leadership purpose forms the “why” of your leadership. Are you seeking a leadership role simply because of the power, position, people or profits? Or are you leading because of the purpose, mission and vision that you are pursuing, no matter the size of the role? Leadership strengths are the capabilities and critical success factors necessary to operate in your purpose. And leadership goals are the results you accomplish in your work. (more…)

The World’s Most Admired Company Is…

March 30, 2016

Priscilla Archangel

Capability, Leadership

The World’s Most Admired Company Is…

According to Fortune’s 2016 report of The World’s Most Admired Companies, which surveyed over 4,000 executives, directors, analysts and business insiders; Apple again commands the top spot on their list, for the 9^th consecutive year! It’s followed closely by Alphabet (Google), and Amazon. With a track record like that, we’ve got to understand the ingredients to their success.

First, it’s important to know that the attributes used to determine this ranking include quality of products, quality of management, innovation, long term investment value, talent attraction, financial soundness, corporate asset use, social responsibility, and global business. A well rounded set of criteria that considers all facets of the business.

Apple CEO Tim Cook was interviewed by Adam Lashinsky to get his take on their phenomenal achievement, as well as how they’re handling criticism of recent fiscal first quarter performance, which was strong, but missed investors’ revenue expectations. His response provides several tips as a good reminder for leaders in any organization.

Block out the noise.

Analysts, media, shareholders, and others will always have some comment or critique about your products or services, but be selective about who you’re listening to. You can’t react to every question or criticism. You can’t be all things to all people. A prime example is their recent issue with the U.S. government on providing access to encrypted information on an iPhone. Whether you agree with Apple’s position in this situation or not, overall, you must evaluate every option and potential product or service based on the next point.

Focus on your mission and vision.

Cook talked about staying focused on “making the best products that really help people enrich their lives in some way.” So do your mission and vision inspire and excite employees and customers? Does your product or service continue to align with your purpose and the areas where you’ve been successful? Or does your company get distracted by what I like to call shiny objects alongside the road. You know, getting caught up in the latest trend, trying to do what other companies are doing, or letting financial goals be the primary driver to all decisions. Which leads to point three.

Identify balanced metrics

Cook says he’s driven by the data that shows his customers are happy. And while recent sales didn’t meet analysts’ expectations, they still sold 74 million iPhones at a profit of $18 billion. The temptation to chase profits is HUGE, but most businesses need to take the long view and invest in their future, build a strong internal and external brand, and be known for the quality of their products and services; along with maximizing performance in the immediate term. What metrics best reflect your organization’s goals, market positioning, customer and employee needs?

Explore the possibilities

Apple has a primary focus on innovation and is widely rumored to be working on a car project. While Cook would neither confirm nor deny that, he did admit that the DNA of the company includes curiosity around a variety of product options that align with their mission, and deliberately selecting a few to pursue. Their cash position makes this easy of course. But they approach it from a perspective of exploring technologies and different ways to use them to align with the focus on making great products that help people.

How Can You Become Most Admired?

So your company or team may not be quite as big as the 1,500 that were considered for this top 50 list. But you can still be greatly admired by colleagues in your industry, geography, or organization. Consider the following questions.

What are you doing to ensure you are a great place to work, and have the best talent for an organization of your size, geography and industry?
Do you have the right management team to lead you to the next level, or are you prioritizing loyalty, mediocrity, or family members above talent?
How are you ensuring high quality products and services?
How does your organization leverage its head, hands, and heart to support social causes?
What is the global impact of your products and services?
How are you innovating? What are you exploring that will make a substantial difference in your business or its operations?
Are you making decisions that will ensure the financial stability of your organization?
How are you managing and maximizing your corporate assets?
What are you doing that would make others want to invest in you and your organization?

Addressing the items on this list may be a challenge for some organizations, but doing so is a reflection of implementing a level of organizational discipline necessary for success. And success is what is most admired.

***

Korn Ferry was Fortune’s survey partner for this project.

To read the interview of Tim Cook, go to http://fortune.com/tim-cook-apple-q-and-a/

The Most Admired Global Leadership Trait Is….

March 11, 2016

Priscilla Archangel

Inspiration, Leadership

The Most Admired Global Leadership Trait Is…

What is the leadership trait that is most admired by others, most desired by leaders themselves, and most required by senior executives for their teams? Its importance applies not only for current, but for future success. It transcends geographies, cultures, and generations. Its meaning has global significance, but may vary in its local application.

This most admired global leadership trait is Inspiration.

In 2014-15, over 2700 business professionals from 122 countries were asked about the traits that they most admire in leaders both today, and the ones that are necessary to be successful in the future. In all cases, no matter how the data was analyzed, Inspiration ranked first.(1)

In 2013, IBM released the results of a survey of 1700 global executives in 64 countries who were asked what top executives want from their leaders. The ability to Inspire was among the top 3 responses.(2)

Why does Inspiration rate so highly as a desirable trait?

Each of us should be able to think of a leader with whom we’ve worked who we would define as Inspirational. In many cases, being around such a person made us perform better, stretched our creative abilities, and encouraged us to do something we would not have otherwise attempted. These leaders attracted others to them, and sparked thought provoking conversations. Their styles probably varied, but their authentic approach to leadership made a meaningful difference.

Too often, leaders are focused primarily on themselves or their tasks. They become caught up in their power, their position, or business problems to be solved. They expect employees to independently be self-motivated, results focused, and to understand the purpose of their work.

Instead, Inspiring leaders focus on others. They cast a vision of the future, connect people with it, and coach them to high performance. Inspiring leaders elicit a positive emotional response from those they interact with, that draws others to them. People want to join their team, and become a part of their successes. They truly believe that people development is the key to organizational success.

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Dare to Be Different: 5 Ways to Add Value to Others

January 29, 2016

Priscilla Archangel

Capability, Leadership

Dare to be Different: 5 Ways to Add Value to Others

Dares are common among children at play. They dare each other to do something outlandish or out of the norm. But these same children may grow up and lose the nerve to take on some dares, because the societal repercussions are significantly greater as an adult.

Differences are necessary in providing complementary traits to create a fully functioning system. The human body is comprised of many different internal and external parts, each with their own specific purpose, that follow the brain to perform smoothly. A symphony is comprised of many different sounding instruments, some with significant parts and others with smaller parts, each eliciting a beautiful sound, when properly following the conductor and the music.

In the same way, each of us bring differences to our teams and organizations. We each may function in seemingly important ways, or in miniscule and replaceable ways, but nonetheless are each vital to the overall success of a team. Failure to share your full value with the team, may result in missing an opportunity for innovation, inability to meet clients’ needs, or overlooking costly design flaws. As leaders, it’s important to prioritize the growth and development of each team member’s differences to draw out their value to the broader organization.

I had a stark reminder of this while watching a recently released movie, Concussion, starring Will Smith, which followed the true story of Dr. Bennet Omalu, a forensic pathologist who discovered a neurological deterioration similar to Alzheimer’s disease in the brains of deceased pro-football players. He named this chronic traumatic encephalopathy (CTE) and published it in a medical journal. Faced with public denial of his findings, he worked to raise consciousness about the long term risks of football-related head trauma.

Five DARES (more…)

Invest in Yourself a New Year Commitment

January 8, 2016

Priscilla Archangel

Capability, Education, Priorities, Results

Invest in Yourself: A New Year’s Commitment

Many years ago there was a leader and queen of the country of Sheba. As the ruler, she had many people and resources under her command. But rather than simply take pleasure in her obvious wealth, she pondered how to better lead her people, and how to handle the challenges of her country. Someone told her about another leader named Solomon who was the king of Israel. Solomon was known to be very wise and might be able to help her figure out how to manage some of the problems she was dealing with.

She must have been very concerned, frustrated, maybe even desperate to find a better approach to her leadership issues, because she planned a major trip to visit him and talk about it. Sheba gathered the currency of her country (many camels carrying spices, gold and precious stones), and along with numerous servants, traveled to meet with Solomon.

When she arrived and sat down to talk with him, the understanding she gained was overwhelming. The advance reports of his wisdom didn’t even come close to matching her actual experience. Solomon not only understood her issues, he answered every question she had. His perspective and wisdom were so very great that he became a valuable consulting resource for her. She observed his leadership style and capabilities, the engagement of his employees, his organizational culture, and the mission and focus of his team. Solomon’s perceptiveness was so helpful to her in leading her country more effectively that she gave him an abundance of the expensive gifts that she had brought.

While it’s difficult to measure her gifts in the context of her overall wealth, we do know that it was the best of her country’s resources, because no one else ever gave him such costly spices in so great a volume as she did. And in return, Solomon gave her all that she asked for.

Here was a leader, someone already accomplished enough to lead a large organization, but who recognized the need and opportunity to learn more. She knew that she had to continually improve her competencies to more effectively build relationships to influence her team, and accomplish her organization’s goals and objectives. She yearned to talk with someone else who understood leadership challenges and would support her in her initiatives. The queen’s perspective on the resources she devoted to this was not about cost, but about making an investment in her own growth, that would pay off in many ways in the long run. (more…)

10 Key Questions for Leaders – Part 2

December 18, 2015

Priscilla Archangel

Leadership, Priorities

10 Key Questions for Leaders – Part 2

Leaders are faced with a myriad of issues each day, but one of their most critical responsibilities is to step back from the urgent and focus on the important. They must achieve a balance between the reactionary crisis mode and the proactive planning mode. This means pausing and reflecting on how they’re influencing behaviors to ensure the right outcomes. To accomplish that, there are 10 key important questions that, properly addressed, will strengthen both their leadership and their organizational effectiveness.

Engagement. How do you engage your team in what you’re trying to accomplish? Engagement is based on an emotional connection that energizes those involved to work toward a common goal. Competitive rowing teams, known as “sculling in crew” require all rowers to move in exact cadence with the leader for an efficient stroke. The leader is responsible for steering the boat, encouraging the crew and monitoring the rate of progress. Everyone knows their role and knows who to follow, and engagement is an important key to winning. Contrast this with a scenario where everyone is rowing at their own pace. They’re working at it, and they’ll make progress, but not nearly as fast because their behaviors aren’t aligned. Similarly, as the leader you must ensure that your team clearly understands the goal and that their efforts are coordinated, collaborative, and complimentary. This means making sure they buy into why the goal is important, and contribute their ideas on how to best accomplish it.
Innovation. Are you creating an environment that encourages new thinking? Innovation involves taking existing ideas, processes or products and combining them in new and different ways to meet customer or market needs. For example, electric vehicles are innovative. Some companies have innovation labs, or innovation hours (i.e. hackathons), but this approach ultimately needs to be embedded in the culture of the organization. New ideas must be nurtured and encouraged. Carl Winans, Co-Founder of Mega Tiny Corporation asked a good question at a conference I attended recently. “Are you creating or merely consuming?” In other words, do you just take in information and knowledge and use it, or do you integrate it to provide new and different output that is beneficial to others? Leaders’ interactions with employees should incorporate discussions on innovative topics, soliciting ideas, encouraging them to investigate the potential for success, and when appropriate, giving them a leadership role in operationalizing their ideas. This rewards innovation and reinforces the skills requisite for success.
Power. Do people follow you because of your power and position, or because you empower them? If you were no longer CEO, VP, or holding your current leadership position, who among your team would still want to follow you? John Maxwell’s book The 5 Levels of Leadership explains that at level 1, people follow you because they have to. But as you move to level 5, people follow you because of who you are and what you represent. You only have power over others to the extent that they grant it to you, whether through an employment relationship, or because you meet a financial, emotional, social, psychological or physical need. Once you cease to fulfill that need, or they find someone else to fulfill it, you become effectively powerless. On the other hand, as a leader you can empower others, or give power to them, by providing them with responsibility, enabling them to do something, or equipping them to accomplish a challenge. Giving power to others generates a virtuous cycle of enabling, growth, commitment and engagement.
Performance. What is the correlation between your effort and your outcomes? This is a sensitive issue, because all leaders like to believe that they’re exceeding the expectations of the individuals or groups to whom they’re accountable (and we’re all accountable to someone). But there are enough situations where no matter how intellectually capable or strategic the leader, their best efforts don’t move the needle forward as much as is needed or expected. Is their skillset incomplete? Is the internal business challenge too great? Are there insurmountable external economic or market forces that can’t be overcome? Marissa Mayer joined Yahoo in 2012 amid great fanfare about how she could turn the struggling company around. Three years later, the company has had to scrap its plans to spin off its extremely valuable stake in Alibaba Group Holding, and the market is currently valuing Yahoo’s core business at less than its cash on hand. While Mayer has upgraded content and worked to boost mobile revenues, some are publicly wondering how much longer the 6^th CEO in 8 years will last. Opinions vary on how to return Yahoo to success, but the performance question is one that every leader grapples with at some point. And if the effort is not producing the right outcomes, it may be time to find a new opportunity where the leader’s contributions will align with strong results.
Change Leadership. Are you leading your organization to be nimble, flexible and open to change? Change doesn’t happen unless the leader makes it a priority. Nikesh Arora, formerly responsible for all of Google’s revenue ($29B), and currently CEO-in-waiting at SoftBank Group of Japan, demonstrated this when he was first hired to run Google’s European operations in 2004. He doubled his initial 5-year revenue projection for the region, and created the analytical tools that were eventually implemented to track the financial condition of the global business. He’s known not to suffer fools, but his enemies respect him. Instead of changing his leadership style to fit into the company, Arora shrewdly changed the leadership perspective to mirror his own. He tells entrepreneurs “Anytime you can predict your trajectory, you should change it.” Change leaders don’t wait for external forces to drive internal business strategies. They anticipate the market, technologies, economy and customer needs; develop a flexible framework and goals for the future; then ensure that the right processes, strategies, technologies, and tools are in place to get there. Change leaders hold their organization accountable for results.

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Doing Nothing – The Biggest Risk

Cracked Concrete – Is Your Business Foundation Sound?

Who Owns You?

Leadership Disciplines for Success

Discovering Your Leadership Purpose

The World’s Most Admired Company Is…

The Most Admired Global Leadership Trait Is…

Dare to be Different: 5 Ways to Add Value to Others

Invest in Yourself: A New Year’s Commitment

10 Key Questions for Leaders – Part 2

Leadership Tips