Managing Risk: Priorities and Decisions
Managing Risk: Priorities and Decisions
Bob sat down at his desk and let out a huge sigh. He had just returned from lunch with one of the board members at his company. They were preparing for the current CEO to retire within the next 6 months and the board wanted to initiate a formal selection process to confirm Bob as a candidate to replace him. Bob had been with the company for 15 years and held the CFO role for 5 years. It was time to step up. He knew the inner workings of the company as well as challenges in the industry. He also knew that his chances of being selected were pretty good. But there was one nagging issue on his mind. He fundamentally felt that the strategy the current CEO and Board were pursuing wasn’t going to pay off the way they thought. He had shared his concerns in the past but given the politics didn’t feel he could push it too far. Now, if he were to be selected as CEO, he realized he couldn’t lead the organization forward with a strategy he didn’t believe in. He knew that two or three of the twelve board members might support his thinking, but that wasn’t sufficient to make the shift he felt was necessary. And if he declined consideration, he’d have to come up with a really good reason because telling them he didn’t believe in their strategy would call into question his role over the past several years. (more…)
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While many of us intellectually understand the importance of building trusting relationships, we don’t always demonstrate it.
Capital One has a frequently aired commercial with the tag line “What’s in your wallet?” It conveys the message that if you possess their credit card, you will have greater spending power and ability to acquire the things you want and need. But if it stays in your wallet, and you don’t use it, you won’t activate the power it holds. You need to not only have it, you need to use it.
Pat arrived at the office early. She hadn’t slept well the night before because she was wrestling with an important decision that needed to be made in her Executive Committee meeting that morning. They had been evaluating the development and launch of a new product for the past six months. Today they needed to make a final decision on whether they were going to move forward. The discussions had been thorough yet difficult with wide ranging opinions on what they should do. There was significant risk associated with the launch, but the potential reward could be a greatly improved market share. As CEO, she needed everyone to make a full commitment to the decision, and while the objective analysis appeared to lead the team to adopt it, a number of other issues had arisen, and there was a LOT of debate. 
A key requirement of good leadership is to ensure that the organization and its initiatives are sustainable, both during and beyond the leader’s tenure there. This means that the company’s values, beliefs, goals and objectives cannot be dependent upon a single or few people as the glue holding it together. Situations will inevitably occur where such individuals are no longer a part of the organization, and thus the glue fails.
As leaders we’re constantly communicating to our stakeholders with strategic intent. The question is whether our communication plan is effective or not. This may sound simple, but amazingly, many leaders miss excellent opportunities to communicate with employees in ways that develop them by enhancing their understanding of business priorities and engaging them in driving sustained business outcomes. When you’re communicating with others it’s important to think about your goal to ensure your methodology is properly aligned.
Leaders spend a great deal of time focusing on building strong teams, selecting the right people with critical skill sets, managing diversity of thought and matching complementary strengths. They structure their organizations based on the capabilities needed to accomplish organizational objectives and optimize opportunities to control as many variables as possible to ensure a cohesive team.
Imagine that you’ve just joined a new organization or department or been appointed to lead a significant new project. You’re excited about your new role and have been given a charge by your new leader regarding specific outcomes and metrics to achieve. You took some time to evaluate the challenge ahead and get to know the team, and you’re ready to make some “quick wins.” There are obvious areas for improvement that will impact organizational metrics favorably. As you meet with your colleagues and team members to introduce your plans, their responses are muted. They don’t seem to appreciate the value of these initiatives. You continue to meet with key people one-on-one to gain their support and probe for issues, but you keep hitting a wall filled with excuses, pushback and noncommitment. What’s wrong? You’ve entered a “no wake zone.” 
That’s the refrain from a number of my female (and some male) colleagues and friends who reluctantly admit a time when they were the target of unwanted and inappropriate attention from someone. These are accomplished, influential people who found themselves in a situation where a more powerful person demanded undeserved, intimate fulfillment. The demands may have come by way of improper or sexually themed text messages, a “gentle” but suggestive touch on the arm, a lewd remark at the bar, an expectation to continue a business conversation over drinks and dinner, an out of town meeting scheduled in a hotel suite where suddenly everyone else leaves the room, and the list goes on. 
Think about a time when you’ve been in the midst of an important challenge, working on a major project or slogging through solving a pervasive problem. Then you hit a wall. Your burst of energy and creativity has dissipated. Your initial accelerated progress has slowed to a snail’s pace. You and your team are stuck and find it difficult to break through to the next level of innovation and advancement. How do you move forward? You need a new perspective. You need to look at the challenge from a different angle, using a different lens, with a fresh set of eyes.