[Editor's note: This is part two of a two-part series. Part one ran Jan. 1.]
In Part 1 of this series I explained that many aspiring executives want a senior leadership position or even the “CEO” title.
Here is a key challenge to success: the CEO/president’s leadership style as it affects company culture. There are many CEOs who feel they must be THE dominant, erudite, micromanaging leader able to provide explicit direction and defining clear, fact-based tasks. The senior management team members become a collection of dispatchers following orders. Sometimes this works well (Steve Jobs) or more often, not.
Sometimes, the CEO’s actions may deteriorate into a political morass where he acts on rumor, gossip or incomplete assumptions trying to prove he was right. Information is carefully controlled and used to support positions dug too deep to consider viable options. Efforts at being transparent to employees with openness are terminated with concerns about revealing too much to people who don’t need to know.
Often there is an honest difference of opinion on how to proceed with the direction of the business. Unfortunately, being right does not always mean success.
In my experience, several CEOs lost their jobs when an arrogance and self-centered focus became obvious upward to the board of directors and outward to advisers and customers.
It is still all too common that some CEOs do not appreciate that many employees do not have the same aligned incentives as the CEO, especially compensation and equity or stock ownership. Regardless, the CEO develops resentment towards his staff that his vision is not being realized and that they are the problem, that they are not as committed as he.
After all, the CEO is always working hard, working smart and working long hours. He may consider himself the brains of the organization and all is dependent on him.
Somehow, the concept of “teamwork” is lost to one-dimensional task masters.
Where I have seen real success (when stakeholders become millionaires), there are common threads that are worth noting.
Primarily, it is about relationships. Not just for sales executives to promote with prospects, customers and partners, but for an organizational culture that values the development and nurturing of effective collaborative, cross-functional relationships among workers, customers and other key stakeholders. Easily said, not easily implemented.
Some CEOs spend too much time managing the board (especially as they are investors with a vested, parochial interest) to commit to deep relationships with those who can help change the business positively.
The positive power of such relationships which encourages open, candid and free conversations (not personalized and threatening) is very powerful. Yes, we have the exceptional example of Steve Jobs at Apple who was considered by many a creative, brilliant “tyrant,” but we also have so many others who recognize that in their career, real satisfaction will not come just by getting money and power, but by the sense of what the CEO has done for the lives of his employees and their families and solutions that are valued by customers.
Sounds too benevolent? I sure hope not.
Complementing a high IQ, a high-performing CEO should have a high EQ or emotional intelligence with the ability to perceive, control, empathize and evaluate emotions of his or her team members. Armed with such insight, guidance and timely recognition for successful personnel, it promotes sincere encouragement and generates high team energy and enthusiasm. It creates an environment that is electric.
This will transform a company by attaining high velocity activity: by personnel, in product fulfillment, in revenue management and sustaining a culture of over-achievement.
In the sales function, the compensation plan is critical. That plan must be aligned with the business goals and offer commensurate rewards. Too often, salespeople are viewed as overpaid when things are going well. For a CEO to treat sales executives as coin-operated mercenaries is a very bad sign.
Businesses need a focused business plan that can gain traction in the marketplace by delivering high value with a differentiated offering that solves real problems. The fastest path to that aim can only happened with a positive, imaginative, engaged workforce working together as a team consolidating their collective intellects and not as individuals working on assigned tasks.
The culture will drive success with energy and enthusiasm. Leadership defines the culture.
Critical, too, is the need to embrace change, constantly examine actions and reactions, and seek internal and independent opinions as the search for the right formula is not easy. When a problem presents itself, share information freely without recrimination (something very hard, if not impossible, for many CEOs to do) and rely on the team to hash out the options and consider the possibilities.
Managing change is aided with a leadership style that promotes “predictability.” The more comfortable managers are with taking action they feel will be supported by the CEO, the stronger the incentive to take timely initiatives at every level. When the CEO is not predictable, people will naturally reduce risk and delay taking initiatives to seek approval from the CEO before doing anything. This creates bureaucratic attitudes, fear and stifles progress.
The force multiplier is greatest when the “team” helps create the action plans. They become true believers who are vested in the joint action plan. Rather than feeling pressured by management or instilling fear to get results, their own motivation will drive them to succeed.
I believe strongly that most employees really do want to succeed. They are motivated and desire to express loyalty, commitment and honorable intentions. Situational or multi-dimensional leadership can guide leaders on the right path for all to succeed.
When a CEO respects and enables employees to take risks without recrimination, to show imagination without mockery, to demonstrate innovation without intolerance, he can prove his value to all stakeholders while retaining the brass ring he or she covets.
John Shoemaker of Natick is an experienced executive in the high-tech industry, providing automatic data capture and management solutions across many industries. He can be reached at shoerfid@yahoo.com.