Driving profitable growth is at the top of every leader’s priority list. Yet, according to Bain and Company, only 10% succeed in achieving sustainable profitable growth.

While growth is the life-blood of every business, at some point, your company will experience the double edge sword of growth.

Either your company will grow faster than your internal capacity to handle it. Chaos, breakdowns and burnout are the result.

OR

Your company hits a wall and growth flattens. As a result, panic often sets in and leaders make rash decisions – either prolonging the stall or causing the company to spiral downward.

Unfortunately, there are no alarms to warn you of either impending challenge. Growth does not follow a linear path. It can be unpredictable and erratic. Growth walls often catch leaders by surprise.

Some companies don’t survive growth walls. They either go out of business or stay in “no man’s land.”

The focus of this article is to address the latter issue – ie., growth walls. While many leaders see growth walls as a revenues issue. The truth is that flat numbers are the byproduct — not the cause — of stalled growth.

The good news is that there are predictable pitfalls and signals that leaders need to heed to scale their companies. This article focuses on 7 of those growth pitfalls.

 7 Pitfalls That Stall Your Company Growth

1. Running After Growth in all the Wrong Places

Initially, growth is critical for survival. However, as your company scales, not all growth is healthy or good.

How, as a leader, do you distinguish between good and bad growth? Healthy vs. unhealthy growth? 

What % of your new business is coming from your core competencies? What % requires capabilities beyond your core?

Do all your new revenues provide healthy margins? If not, is it a market issue, a competitive issue, a behavioral issue or something else preventing you?

According to Bain, companies leave significant money on table because they are not fully leveraging their core.

Tim Cook (Apple’s CEO) says it best …”At Apple we say ‘no’ to great ideas every day in order to do one or two things very well.”

How much of your new growth focuses on what you do best?

2. Success Blind Spots 

Companies that hit a wall have experienced past successful growth.  They are meeting or exceeding revenue goals. Their leaders and employees are proud and rightfully so.

However, success often creates cognitive or psychological leadership blind spots.  Below are 2 examples how.

• Blind Optimism

You make unconscious assumptions that company growth will continue on the same trajectory if you keep on the path you have been. However, markets change and so must your path to future growth.

• Over-Confidence

Past success can exaggerate your ability to control events. And you over-estimate your company’s capabilities.

When over-confident, leaders tend to take on risky opportunities, not ask for help and believe they can handle it all.

Whose unbiased perspective can you access to right-size your decisions and perceptions?

3. Crashing into the Leadership Glass Ceiling

In my extensive experience with growth companies, the number one reason why companies hit the wall is because their leadership team has hit a wall.

Organically grown leaders don’t know what they need to know to get to the next level. As a result, they keep on doing what they have always done – only working harder — expecting a different result. Yes … that’s called insanity :))!

As a company scales, leadership roles also scale and change dramatically at each growth level. To avoid the leadership ceiling, CEOs must ask themselves —

Are you willing to make a major investment in growing your leadership team to the next level?

Does it serve the greater good of your company to be loyal to long time leaders whose roles have outgrown their capabilities and capacities? 

Is it time to hire outside seasoned passionate leaders who have been there and can help you grow?

Both options – ie., cultivating your leaders from within or hiring from the outside – have their upsides and downsides.

If your leadership team has hit a ceiling, get outside help in evaluating the options. Doing nothing will keep your company stuck at the wall.

4. External Oblivion

As a company scales, significant focus is spent on building internal infrastructure. As a result, leaders lose sight of changes in their external environment.

A once fringe competitor may now emerge as a looming threat to your company. Your customers’ needs may have changed without you realizing it.   New disruptive technologies may displace your products/services as alternative solutions to your markets.

Successful growth leaders who break through the wall anticipate the unexpected and turn the unexpected into the profitable.

Are you overly focused on internal superiority that you are missing the cues of external changes?

How are you proactively anticipating and responding to external changes?

5. Hiring for current skills, not long term capabilities

As a company grows, the tendency is to hire employees with current needed skills by your organization.   When small, hiring for the short term is necessary as your resource needs are not always clear.

Once a company hits the $10 – $20 million milestone, hiring people with capabilities to grow your company in next 2 – 3 years is crucial.

What capabilities do you need to hire today to achieve your desired growth for next 3 years?

6. Culture Meltdown

When a company has less than 20 employees, rarely is culture a dominant issue. As the company scales in size, structure and complexity, culture becomes the heart and soul of its growth success.

What causes a culture meltdown as a company scales?

It’s not one thing. It’s multitude of factors that amplify with scale, such as …

• Not Scaling Culture

Some leaders will argue that company culture cannot scale. I both agree and disagree :)).

Your company culture cannot scale if you perceive culture as fixed, unchangeable and static. However, the culture your company needs at $20 million will be different than the culture you need at $50 – $100 million

As you add new people to your organization, as well as your markets evolve, so must your culture evolve.

How are you adapting your culture to the changing needs of your organization and those of your customers?

• Core Values Without Success Measures

While your company’s culture may seem intangible and elusive at times, you can make the intangible tangible and measurable.

The key is to define an abstract value into an operational, measurable success outcome.

I have one client with a core value of excellent customer service. Their measure of success is a customer excellence rating of 25:1. For every 25 customers that rate their service as excellent, only 1 or less customers will rate it as non-excellent.

How do you measure success for each value?

• Healthy Values Gone Bad

Every positive value also has a dark, unhealthy side. However, most leaders are not aware when their values have crossed that line.

A value of excellence, in the extreme, can become perfectionism. Acceptance, at its extreme, can become (unhealthy) tolerance. Customer service, to the extreme, can cost you significant profits.

It’s good to set the bar high. At the other end, know when your values become your Achilles heel, especially as you scale.

7. Mediocrity Sets In

The final danger as companies scale is backsliding into complacency or mediocrity.

Success is a lousy teacher. Complacency often sets in as your company loses its drive and hunger. Nothing will kill growth faster than losing your sense of urgency.

High growth companies should celebrate success. If your company has hit a wall, however, it’s time to take stock.

Has your success morphed into over-comfort and contentment? 

If it has, it’s time to raise your bar, set new sights and refuel your organization’s fire.   Commit to scaling not only in size. Commit also to scaling big WHY and purpose.

Getting Back on the Growth Track: Initial Steps

• Educate yourself about your company’s growth life cycle and the common pitfalls at different growth stages.

• Get your leaders out of day to day operations.

By the time you hit $15 – $20 million in revenues, your leaders should spend about 80% time leading – building teams, delegating, creating strong culture, focusing on long term goals/projects, etc. – and only 20% on daily operations.

To prepare for the transition, ask yourself:

Do your leaders know how to think strategically?

Are their brains wired for big picture, future-orientation, goals/results thinking?

Do they have strong delegation skills to get out of the weeds?

Remember … not all leaders will be able to make the leap to the next level.

• Invest in infrastructure and systems that provide built-in capacity for growth.

• Get outside perspectives

An advisory board or board of directors … visits to “friendly” competitors to see how they do things … hiring a consultant with experience in growth companies. These are all ways to get beyond your blind spots and tap into expertise that may be missing in your organization.

• Invest in scaling your company culture

Continuously communicate your company’s vision and purpose. Entrench your values and behavior norms at all levels of organization. Change your culture as needed.

• Download our complimentary handout — Developing Leaders of Growth: 5 Critical Factors for Driving Double/Triple Digit Growth

The post 7 Leadership Pitfalls That Sabotage Company Growth appeared first on The Empowered Business.

Your company is growing and has gained recognition and success.  Your culture and employees are thriving and you are so proud of everyone’s accomplishments.

Yet …

you feel something is missing.  You can’t put your finger on what.  After all, it’s been a challenging journey.  In many ways, you and your organization have arrived at its desired destination.

How could something be missing?

Guess what?

You are not alone.

That gnawing feeling of something missing is a positive thing.  It’s a sign your soul is stirring …

To something greater than your role and your company.  To a grander purpose.

You are becoming an awakener.

In today’s ever increasing complexity and change, you are being called to operate at a new level of consciousness.  To transcend your mission statement, competition and engagement practices.

Are ready to make that leap?

What Is a Leadership Awakener?

I am not a teacher, but an awakener.

Robert Frost

Most leaders’ roles and identities evolve.  Let’s take a look at one natural progression of a leader’s role.  Every role is important.

1.   Coach

Traditional coaching focuses on behavior.  The goal of a leader as coach is to improve the behavior of his/her team.

When leaders assume the role of coach, they are observing and giving feedback.  For example – coaching someone how to communicate more respectfully to teammates.

2.   Teacher

Teaching focuses on cognitive skills and capabilities.

A leader wearing the hat of teacher focuses on building  competencies and thinking capabilities – such as how to read a P&L statement or presentation skills.

3.   Mentor

Coaches and teachers focus on the external aspects of performance.  Mentors, however, focus on the internal aspects – ie., employees’ beliefs and values.

A leader wearing the hat of mentor focuses on influencing a person’s beliefs and values in a positive way – such as, believing in him/herself.

4.   Awakener

While awakening is definitely not a common term within organizations, leaders who operate at a high level of consciousness and being are the awakeners in the business world.

A leader as an awakener operates at the level of spirit or Higher Self.   Such leaders have the capacity to transcend their own mental maps (beliefs, values, identity) and connect with a greater Force within themselves and others.

Leadership Awakeners are the Game Changers of the World.

Are you ready to make the leap?

Leadership awakeners think differently. Perceive differently.  Decide differently.  Here are 3 (among many) distinctions.

As an awakener …

You View the Organization as a Hologram

What the heck is a hologram?!

A hologram is a 3 dimensional representation created with the use of a laser using a process called holography.

The fascinating property of holograms is that you can cut it up in tiny pieces and actually create the whole from a single part.

Not only does the whole contain all the parts.  Every part contains information about the whole.

WOW!!  Isn’t that mind blowing?!

The implications to an organization are huge!   The concept of a hologram says that every function … every product/service … every employee contains within it information about your entire company.

Nelson Mandela used this principle in transforming South Africa. He knew that the greatest chance of unifying the country was not through a top-down approach of sweeping changes.

Rather, that unity (the whole) would come from his relentless support of the country’s all white rugby team (a part) in the World Cup.  He rightly assumed that victory would unify the country.  The rest is history.

Applying the holographic property can accelerate success within your company.  Let’s look at 2 examples.

If you are like most leaders, you use a top-down approach in planning or envisioning your future.  That is, you take the whole and you break it into parts.  That approach has merit in certain contexts.

What if … with your next strategic plan, you instead take a bottoms up approach, using the holographic principle?

What if … you were to improve the weakest link in your organization (eg., competencies or efficiencies) and made that the focus of your strategic plan?

How would that one small change impact the performance of the entire organization?

How about applying the holographic principle to problem-solving?

What if … the next time your team solves a customer service or process problem, you focus on solving the bigger organizational issue – such as lack of cohesive teams? 

What would that do to your profitability, productivity and quality?

You See Competition as an Illusion

In our Western culture, we obsess about beating our competition and becoming the best.

That obsession shows in our love for “Best ____” lists and awards.  Fortune’s Top 100 Companies, 50 Best Places to Work for, Inc. 500/5000 and Top 40 Under 40 to name a few.

While competition can be a blessing, fueling higher standards and innovation.   It can equally be a curse.

It conditions you to think in terms of winning and losing or a zero sum game.  Those leaders who operate from a win/lose paradigm can’t see another way.

The truth is …

Competition is an illusion.

You will never win long term with this paradigm.  However, there is a more optimal paradigm from which leaders can operate.

John Nash –- behavioral economist and Nobel Prize recipient – is best known for advancing game theory and the equilibrium principle.

In simple terms, his work showed that …

the best result comes when everyone in a group (team, market, etc.) does what’s best for themselves and for the group.

His findings say that when your company works TOGETHER with — not against – your “competitors,” you ALL will be better off than if you worked at cross-purposes with each other.

Example:  Toyota and BMW have collaborated to create an environmentally friendly luxury car.  They shared costs and knowledge for electric car battery research.  BMW supplied diesel engines to Toyota.  Everybody won, especially the customer.

How might collaborating with a competitor reduce delivery times and costs, open up new markets or strengthen your position rather than weaken it?

Below are additional resources and examples to delve further about collaborating with competitors.

Collaborate with Your Competitors … and Win, 

Friendly Competition:  Competitors Collaborate  (video)

You Know That Perceived Limitations Are Wake-Up Calls

Stop for a moment.  Take inventory of ways you and/or your organization …

·      Struggle or effort

·      Feel fear when your customers or the economy slow down

·      Have hit a ceiling in growth, profits or performance

·      Don’t have money or time for critical projects

Your perceived limitations are your own creation.  Not consciously though.  You are stuck in the limiting confines of your own thinking.

Attribution: Canstock.com

When you hit such limits, you tend to panic at the edge between the known and unknown.  You fight for certainty and control.  Yet more knowledge, analyses and busyness are NOT the answer.

To transcend these limitations, you must awaken to another reality.  The world of Potentiality.  The world of unbounded possibilities.

In this new awakened state, you tap into a greater Force within yourself and beyond yourself.  You fear no challenge.  You are immune to criticism.  Self-power – or knowledge of Self — becomes your true source of power.

The question is … how do you awaken that part?

Here are 2 ways:

1.  Practice “not knowing”

Exploring the unknown opens the door to unlimited creativity and possibilities.

Start with a question or concern.  Let go of all knowledge, assumptions and ready answers.  Adopt a beginner’s mind.  Openness, curiosity, inquiry, reflection and learning are essential.  Take time to explore what you don’t know.  What new possibilities emerge from “not knowing?”

When practicing “not knowing,” you transcend fear of the unknown and engage in new possibilities.  You are excited about opportunities the unknown presents.

2.  Transcend your own mental maps

Your mental map are unconscious filters – beliefs, values, identity, etc. – that drive focus and perception.  These maps ARE the boundary conditions of your thinking.

When I work with leaders, my first goal is to uncover their mental maps.  Then change them to expand possibilities within themselves and then within others.  Because there is no set procedure, there are no steps I can give you for that change.

However, even if it is for a few brief moments initially, you can learn to transcend your mental maps.

Get quiet.   Go to that place within yourself where there are no fears.   No limiting beliefs.  No internal conflicts.  Trust your higher Self to take you there.  You will know you are there because you feel a sense of peace and ultimately pure silence.  It’s from that place new possibilities emerge.

Summary

The ultimate calling of a leader is to awaken the grander purpose and possibilities within themselves and then their employees.

Becoming a leadership awakener is the highest level of consciousness from which you can lead.  You transcend the mental maps, knowledge and expertise that limit your potential.  You lead from a level of spirit that knows no boundaries.

Life and work take on new meaning.  Struggles become a thing of the past.  You are at peace even in the midst of turmoil.

The question is …

Are ready to make that leap?

The post Real Leaders Become Awakeners appeared first on The Empowered Business.

I know this statement may sound harsh at first.  I ask you to hold your judgment until after you’ve finished the article to understand why.

For example, when a company is stuck or has plateaued, I often hear reasons like …

• Our company did not grow because of the economy.
• We need more knowledge or technology to beat our competition.
• We have to seize every revenue opportunity as it comes our way or we won’t survive.
• The marketplace is an unfriendly place.

Do any of these sound familiar in your company?

The GRAND illusion is … those outside factors are NEVER the reason.   As soon as you justify outside factors for lack of growth, profitability and/or performance, you are lying to yourself.  You are buying into your own story.

That is not to dismiss the importance of knowledge, systems, the timing of opportunities and other factors that leaders believe with all their hearts are the reasons for their success or failure.

The Real Problem Is Your Leadership “Map.”

I don’t mean the kind of map you stick in the glove box of your car or get from your GPS system.  I am talking about a different kind of map.

In the 1930’s, Alford Korzybski, in his book “Science and Sanity,” made a profound statement about human nature.  A statement still widely used in many contexts, including management.  That is …

The map is not the territory.

This statement says it all … how and why your mind plays “dirty” tricks on you.  That is, your perception of reality is never reality itself.  Rather it is your version or internal representation of reality (or mental map).

100% of your experience of the world is being generated by your mind, not outside events.

Due to your brain’s limited processing capabilities, your mental maps filter out over 99% of external information coming from your five senses.  Your mind attempts to fill in the massive information gap with its own “spin,” story or interpretation about what it perceives.

Not only is your conscious awareness limited.  You also filter every experience through your own learned behaviors, experiences, beliefs, values, interests and states.  As a result, this filtering process distorts, deletes and generalizes your sense of reality.

How Can Your Mental Maps Cause BIG Trouble to Your Organization?

The distortion in thinking and perceptions –based on mental maps – creates over 80% of the problems at a leadership and organizational level.  While your leadership mental maps can actually create many problems in your organization, let’s look at 2 common examples.

Mind Trick #1:  You rationalize away outside circumstances (or your perceptions of those circumstances) as the reason for your organizational failures or lack of results.

Projecting outside circumstances (eg., the economy) as the cause for companies’ lack of results is so rampant in today’s business world.  Yet this one mistake alone is costing companies billions in lost revenues, profits and new opportunities … and leaders don’t even realize it!

The truth is … you either fight for reasons OR you fight for results.  Your brain is not capable of holding two opposing thoughts at the same time.

You can’t fight for growth and fight for the reasons for lack of growth at the same time.  When you focus on the latter, you are reinforcing in your brain why you can’t have growth.

Doing so has a domino effect.  On your attitudes, you become a victim.  On your beliefs, you convince yourself again that “outside circumstances drive your fate.”  On your behaviors, you focus your actions on survival, and ultimately, all this drives results or more lack of growth

Do you see how your perceptions of reality (your mental maps) determine your outcomes?

How is it that at times you become prisoner to your own reasons (and don’t realize it)?  What are the telltale signs?

Level of believability:  Your reasons seem plausible. 

So much so, you perceive your reasons or beliefs as true … as facts.  Those reasons then drive your focus and preclude you from seeing other possibilities.

Because blaming the economy for company failures or lack of results is a common rationalization, let’s use that as an example. 

You speak that rationalization, think it, believe it, feel it, and act consistently with it and then have evidence to back it up that it’s true. You are so identified with your mental map or mind that to you it is not your mind at all, it is the unvarnished truth.  In this case, you believe that the economy is the reason.

Consensus:  Your team, industry peers, the media, etc. all validate your reason. 

They buy into the same reason.  “Of course, the economy is to blame.”   Consensus grows and resignation becomes contagious within your company and industry.  This meme  …. aka thought virus … becomes the norm and goes viral.  Your thinking is infected and you can’t see causes within your control or other possibilities for a different outcome.

That one thought (or mental map) is the real cause for lack of results, not the economy.

That’s not to negate that economic downturns exist and can impact how a company operates and grows.   Your response to a down economy is completely within your control however.

It’s within your control to look for market segments or industries still in a growth mode.  It’s within your control to identify new strategies for seizing opportunities. It’s within your control to focus on your most profitable offerings during downturns.

You get to choose.  Are you going to fight for reasons or fight for results?

Mind Trick  #2:  You believe/assume that your plans and strategies, as long as followed,  (“the map”) will take your company to its desired destination (“the territory”).

Developing strategies and plans is a healthy practice for leaders to do.

However …. and this is a BIG “however” … it is often assumed that if you follow your strategies and plans (“the map”), you will successfully navigate the path (“the territory”) to get to your company’s destination.

There’s something to be said about staying the course and sticking to your strategies.  Yet your strategies often create blind spots that underestimate the impact of external changes on your business.

The issue is not about the content of your strategies and plans.  The issue is the unconscious belief or assumption that you have the right roadmap.  That one belief will cause you to filter critical external information and cues that may be signaling you have the wrong roadmap or you need to change it.

Example: A common blind spot is to overestimate your company’s strengths and capabilities.  If you perceive customer service as a strength, you are apt to assume that “strength” as the basis of your strategy and your differentiator.  That blind spot, however, may cause you to miss other emerging competitors who are better able to service your customers and are threatening your business.

• Where are you missing critical external cues that your strategies (maps) need to be changed?  
• Where are you over-estimating your business capabilities and strengths?  
• To what extent are you attached to your own strategies as being correct that you cannot perceive better ways of reaching your destination?

The above are 2 manifestations of the grand leadership illusion that can sink organizations and performance.  Your mental maps are driving your outcomes, not external circumstances.  The more you understand as a leader how your mind works, the less trapped you will be by your own thoughts and mental paradigms.

Changing Your Leadership “Maps” Can Change Your Results & Performance … At Lightning Speed.

Let’s take a moment to summarize what you need to remember from this article.

Key Points Summary

• The map is not the territory.
• Your mental maps of reality are NOT 100% accurate.  Your mental maps distort reality through your brain processing and filtering systems.
• We react to our own mental maps, not reality. Our maps are affected by our own interpretation about what is happening.  Your negative interpretation of the same event can be another person’s optimism.
• Your territory is constantly changing, so don’t overlay today’s experiences with what happened yesterday. After all, the surroundings were different.  Just because sales slowed or profit margins declined last month does not mean your growth or profitability can’t be stellar this month.
• No two maps are the same. Everyone creates their own maps, each is unique and no two are the same. (Your map is not the same as other leaders on your team.  In fact your maps may be opposite of each other.)

The good news is … your mental maps can be changed.  New mental maps can catalyze your company to its next level of success, just as much as the old ones can keep you stuck in molasses.

The first step to change is to question everything.  Challenge every thought, assumption, belief (disguised as fact) and point of view with which you currently identify.  Especially the ones you believe are right :)).

In future articles, I will be addressing the concept of constrictive minds and their impact on your leadership and organizational performance.  To be notified of those and other articles, sign up for our monthly newsletter and free report at Wired to Win BIG.

The post The One GRAND Leadership Illusion That Sinks Organizations appeared first on The Empowered Business.

At the end of every year, I take a personal private retreat to clear my mind, take inventory of the past year and create a new vision for the new year.  Knowing the power of questions, at the start of each retreat, I ask myself …

What are the 10 most important questions to ask myself in this retreat to take my business (and life) to a more meaningful, impactful and prospering level in the new year?

For 3-4 days, I spend time by the ocean simply reflecting, letting go of any goals, plans or expectations.  I simply allow myself to just be.   To be a blank canvass upon which new insights, penetrating questions and inner promptings begin to emerge.

Every year I walk away with powerful questions that, simply by asking them, transform my thinking, direction and excitement for the future.

I share that with you for one reason only.  To embrace and utilize the power of questions within yourself and your organization on a daily basis.

“The one who asks questions doesn’t lose his way.”   African Proverb

Why Focus on Questions, NOT Answers? 

Our greatest shifts and changes in business and in life come NOT from answers, rather from powerful provocative questions.  Questions have the power to:

• Transform
• Open up conversations
• Solve problems creatively
• Shake up your thinking
• Build critical thinking
• Shift your focus
• Inspire new direction
• Shatter your assumptions
• Unleash potential
• Keep you aligned with your sense of identity, purpose and vision

… and much more.

In keeping with this month’s theme of building your strategic thinking muscle, below are 12 provocative strategic questions to create a new future for you and your company.

12 Provocative Strategic Thinking Questions You Need to Be Asking

Vision, Goals and Strategies

• As you envision where you want your company to be in 10 years, what BHAGs (big hairy audacious goals) do you see your company achieving?
• In order to achieve your BHAGs, what innovative ideas and strategies did you have to come up with?
• What “enemies” (external or internal) will you have to defeat along the way to achieve your BHAGs?

Markets, Competitors and Customers

• Imagine it’s 5 years from now.  What are your competitors envying the most about your company?
• What do your competitors respect the most about your company?
• What do you envision the future needs of our customers to be in 5– 10 years and how do you expect to meet them?
• What is your company the “best of” in your field or industry?
• When it comes to customers, how is your organization shifting from a “how many” to “who is our most profitable customer” focus?
• How are you staying on top of changing global, competitive, market, economic and technology trends to uncover hidden opportunities?

Changing the Inner Game 

• How are you breaking down big change in your organization into pieces too inconsequential to fail?
• How would you change if you HAD TO get 10x better/ bigger in the next 12 months?
• What do you have to do less of, to achieve more in your company?

Bonus Question

“For true success ask yourself these four questions:

Why?

Why not?

Why not me?

Why not now?”

James Allen

By no means are the above questions exhaustive.  In fact, they barely scratch the surface.

What provocative questions can you ask within your organization to build stronger strategic thinking capacity?

Share your own provocative strategic thinking questions and we will add them to this list with your name.

The post 12 Strategic Thinking Questions That Yield Big Results. appeared first on The Empowered Business.

As a leader, how often do you find yourself …

• 

  Thinking Behind Strategic Thinking

  Overwhelmed by an overload of demands, not knowing what to respond to first?

• Continually fighting for certainty, paralyzed by fear of the unknown?
• Blind sighted by unforseen events that jeopardize your company’s stability and bottomline?

I’m guessing what you really want is to stop your perpetual busyness.  You want to focus on the critical few.   You want to navigate your company, amidst constant change, to its ultimate destination.

In my decades of working with leaders, I have found that the above are symptoms that a leader lacks the capacity to think strategically.  Let’s look at how to turn those symptoms around.

The 3 Most Important Things You Need to Know About Strategic Thinking:  What It Is AND Is Not

1. Strategic thinking is an exercise of the brain muscle, not the wrist muscle.

Despite what many leaders believe, strategic thinking is NOT quantitative analysis – eg, generating sales forecasts – nor quantitative goals – eg,  $100 million in revenues.

While numbers are important in planning, true strategic thinking is qualitative.  It is about HOW you think as a leader, and less about the contents of your thinking.

 2. Strategic thinking is NOT the same thing as strategic planning.  In fact, many strategic plans have little strategic thinking behind them.

For most companies, strategic planning focuses on breaking down a goal into action steps and connecting those steps to resources, timelines and budgets.

While strategic planning is an important activity for implementation, a plan, without strategic thinking preceding it, has little chance of success.  While strategic planning defines the steps to move up the ladder, strategic thinking (in the words of Covey) defines whether your ladder is against the right wall.

 3. Strategic thinking is more about the structure of one’s thinking, NOT the content of one’s thinking.

While most strategy development efforts focus on content – or what one thinks, strategic thinking is driven by how one thinks – ie., the thinking behind the thinking.   We call this metacognition.

For example, assessing a competitor’s strengths focuses on content.    While the structure of your thinking may view competition at a higher elevation, such as the changing forces in one’s industry and impact on the competitive landscape.

How Great Strategic Thinkers Think:  The 6 Core Characteristics

Essentially, strategic thinking is a mindset.  It is the art of making the right decisions for attaining future success in a complex, uncertain world.   

Although there are many books about strategic thinking, my focus for this article is on the structure of strategic thinking … the Core 6 characteristics.

To uncover a leader’s strategic thinking capacity, I utilize a tool called the Inventory of Workplace Attitude and Motivations (IWAM) to assess a leader’s strength in the Core 6, as well as dominant mental patterns blocking a leader from thinking strategically.

Below are my Core 6 characteristics of strategic thinking.

Global (or Holistic) Thinking

Global or holistic thinking combines the cognitive abilities of:

• Big picture thinking (ie, seeing the overall landscape from a 10,000 foot level … such as your organization or industry. 
• Systems thinking (ie., ability to see the interrelationships between elements … such as, how decisions made in engineering impact other functions)
• Patterns recognition (ie., seeing cause and effect patterns within your environment, peoples’ behaviors and even within yourself  … such as “when I take 5 minutes to plan daily, I have a more productive, focused day.”)

The purpose of holistic thinking is not to accumulate knowledge, but to create new mental maps that unleash greater thinking possibilities for the future.

Example of Holistic Thinking:  Bill Gates and Paul Allen did not invent anything to start Microsoft. The personal computer revolution was started by putting together existing technologies in a way never done before. They could see from a 10,000 foot elevation how seemingly unrelated technology trends intersected, eventually disrupting the computer industry in a completely new direction.

Future Oriented

Strategic thinking leaders view their company’s past and present through the eyes of the future.  Strategic thinking requires strategic foresight and asking such questions as …

• What new emerging trends will shape our company’s future?
• What new possibilities may exist 10 years from now that don’t exist today?
• What unmet needs will our customers have in the future, not even visible on their radar screen today?

Strategic thinking requires a mindset that anticipates rather than reacts.  A strategic minded leader is seeking out opportunities through a “future” lens rather than merely responding to today’s problems and customer needs.

Example of Future-oriented Thinking:  According to Dr. W. Edwards Deming, management expert, the “principle of anticipation and innovation — driven by the producer, not the customer — is the ultimate competitive advantage.”

Henry Ford, a leader with great strategic foresight, understood that principle.  He said if he had asked his customers what they wanted, they would’ve asked for a faster horse.

Options Thinking

Options thinking is nothing new.  Our whole lives consist of endless options –  what will we eat for dinner, where will we invest our money and so on. The same is true for organizations.

To achieve strategic success, leaders must develop their options thinking capabilities on two levels:

1. Defining multiple options for reaching goals and choosing the “best”;
2. Identifying a wide range of possible future states (aka environmental scenarios) to uncover and exploit emerging opportunities.

To understand why, imagine, if you picked a random path up a mountain – rather than finding the easiest among multiple alternatives.  Or that you did not consider various conditions in your climb – like snow, dangerous animals or equipment failure.  What would be your chances of success?

In a similar fashion, many strategic plans fail within organizations due to lack of options thinking.

Example of Options Thinking:  In 2006, Mike Jackson, CEO, AutoNation, challenged industry assumptions by asking “what if buyers replaced cars every 5 years, not 3 years?”  By looking at a low probability, high consequence event, AutoNation experienced profitability and positive cash flow, while many dealers went out of business.  That’s the advantage of options-thinking.

Differences–Oriented

When a leader is a high differences-thinking person, it tells me two things:

1.  His/her brain is wired to sort for differences. These leaders are innovators.  They love to change the rules of the game.  Think Steve Jobs as a “high differences-oriented” leader.
2. They thrive on change.  Not only can these individuals respond easily to change.  They can “see” possible changes in the future that others may dismiss or think impossible.

Such leaders have the ability to see and capitalize on hidden opportunities that others don’t have the thinking capacity to spot.

Example of Differences-Thinking:  Billy Beane, General Manager, Oakland A’s, shattered conventional baseball beliefs that big payrolls translate into big wins. His unconventional use of statistics in identifying undervalued players led the A’s — one of the worst teams in baseball with one of the lowest payrolls — to three American League West division titles.  This is hallmark of a differences-oriented thinker.

Achievement/Success Thinking

An achievement-thinking leader is an individual who is motivated by success and by being the best.  Achievement-thinking leaders choose strategies that exploit an advantage. Their only goal is to win.

To develop this thinking muscle, leaders must address fundamental achievement-oriented questions, such as …

• What defines success?
• What are the factors that drive success?
• How will we measure success?

Example of Achievement-Thinking:  Olympic athletes are the quintessence of achievement-oriented thinkers.  Their whole focus is on winning the gold medal.  For many, even a silver or bronze medal is considered failure.  They seek every possible strategy to get the advantage: the choice of a coach, equipment, mastering the fine points of technique, etc.

Proactive Balanced with Reflection

Most leaders by nature are highly proactive and take little time for reflecting.  Yet, to solve the increasing unfamiliar problems facing businesses today, a leader must learn to balance (proactive) action with reflection for new insights to problems with no precedence.

This balance requires leaders to take regular time for reflection and cultivate a sense of right timing for action guided by one’s own intuition.

True reflection is not about thinking hard, but rather a presence of mind.  A state of mind in which you view a situation from not knowing … a beginner’s mind.  (see Strategic Intuition, William Duggan)

Example of Proactive Balanced With Reflection:  Napolean was a master at strategic insight.  What he lacked in size of army, he made up in precision and reaction rate. Napoleon said it best: “Take time to deliberate, but when the time for action comes, stop thinking and go in.”

Building your own strategic thinking muscle

A small amount of consistent time and practice is all it takes to build your own strategic thinking muscle.  For example …

1. Learn chess.  It is one of the best ways to develop the strategic thinking characteristics described above.
2. Subscribe to the Futurist magazine published by the World Future Society.
3. Track the BIG, new things the smartest people & organizations (regardless of industry) are doing.  Then adapt them in your company.

If that seems too much now, just remember …

Do less.  Reflect more.

Problems less.  Possibilities more.

“Play not to lose” less.  “Play to win” more.

The post How Great Strategic Thinking Leaders Think. appeared first on The Empowered Business.

“Leading From Guts” drives extraordinary organizations and a company’s distinctive edge in the marketplace.

The inspiration for this article was the movie “The Rosa Parks Story” – a story about a simple seamstress and civil rights activist with unwavering toughness of character that, in 1955, changed the course of history and segregation in the U.S.

Her unwillingness to relinquish her seat on a segregated bus to a white person set in motion a whole chain of catalyzing events – including imprisonment, a boycott of the Montgomery Bus, a new civil rights organization led by Dr. Martin Luther King, Jr. and a repealing of the segregation law on buses in Montgomery.

This movie – and Rosa Park’s story in general — brought to light the power of “leading from guts,” regardless of one’s role or circumstances in business.

Leading From Guts:  The One Thing That Can Change Everything in Your Organization

For the purposes of this article, I deliberately chose the title Leading From Guts  (rather than Lead With Guts) for a reason.

Leading From Guts implies you already possess the traits and mindset of having guts.  Those traits and mindset make up the core of who you are and how you define yourself as a leader.

Leading With Guts implies that courage is secondary to your leadership role rather than the driving force of how you lead.  While it may sound like a subtle difference, to your employees who seek to follow gutsy leaders, it makes every difference.

Rosa Parks did not lead with guts, she led from guts.  Guts defined how she lived life.  Regardless of the threats on her life, loss of work resulting in lifelong hardship, the ongoing tensions in her marriage, etc., her unstoppable fight for civil rights defined her legacy and her leadership ability to create a movement that altered history.

While your cause may be different as a business leader, the underlying characteristics of leading from guts are the same.  Let’s take a look at those underlying characteristics.

Leaders Who Lead From  Guts …

1.     Are game-changers.  They thrive on doing the “seemingly” impossible.

Rosa Parks fought for a cause no one else thought possible. Even top civil rights activists (including Martin Luther King, Jr.) sought to achieve their goals the “safe” way … to play along with the established segregation rules in Montgomery at the time.  Rosa Parks was not willing to play that game.

Gutsy leaders in today’s business world embody the same spirit as Rosa Parks.  They provoke change by going against outdated norms that prevent them from playing a bigger game and realizing their cause.

• What small thinking in your company do you need to challenge to change the game in your organization?
• When was the last time you attempted to do something that seemed impossible?  
• How will doing so change the game you are playing?

2.     Are crusaders.  They are passionate about their cause and have the guts to act according to their convictions.

With all the injustices that Rosa Parks encountered due to her convictions, she never ran way from conflict, criticism nor condescension.  She stood her ground with composure, sensitivity and a fighting spirit to her cause of civil rights.  Her tenacity to lead from guts resulted in a history-altering movement.

Gutsy leaders know and commit to the driving “cause” of their organization.  For these leaders, their cause transcends goals and plans.  It is visceral.  Their cause becomes an unwavering heroic crusade.  What follows is a evangelistic movement within their organization.

• What’s the crusade your organization stands for?
• How do you help your employees see how their work as “heroic” and connected to your greater cause?

3.     Are fearless, despite being fearful. 

Fearless does not mean without fear (despite the dictionary’s definition). In fact, it’s impossible for any human being to be 100% without fear, as our brains are wired for fear for a reason.

Rosa Parks had fears, just as any other human being.  Yet, she transcended those fears because she was so committed to her cause.

Those leaders who lead from guts have the same scary moments and concerns as you do.  Yet they handle fear differently than other leaders.

They recognize that fear presents them with a choice.  Either they can step up to the opportunity or they can back down and let the fear run them.  As leaders choose the former, so will their employees.

• What gives you the guts as a leader to move beyond your fears?  A well-thought out plan?  Support?  Minimizing risks?
• If fear were not an option, what new bold actions would you take next?

4.     Are rule-breakers and challenge the status quo. 

Rosa Parks deliberately broke the law, despite knowing she would be arrested for not giving her seat to a white male.  Rosa challenged the status quo, not as an end in itself, but rather to make a statement – in her case, for justice.

In the business world, gutsy leaders are motivated to challenge “business as usual.”   They thrive on operating on the fringes and go against the tide because they know the edge is where breakthroughs reside.

As innovators of their industry, their courage and passion to try new things ignites the spark in others to think big and act boldly.  It takes GUTS and thick skin in a business world of followers to take the road less travelled.

• As a leader, what can you do to disrupt status quo thinking and encourage new ideas in your organization?  In your industry? 
• What rules in your organization are obsolete and holding you back?  
• How can you go against your own tide to breakthrough the barriers of what’s possible?

5.     Are movers and shakers.  They “stir up the pot” intentionally to create a revolution in thinking.

Just from one simple act of not giving her bus seat to a white person, Rosa Parks stirred up the pot in a complacent, compliant Afro-American community.  Her willingness to risk her life “stirred up the emotional pot” and one by one the community stood united in boycotting the Montgomery busses for an entire year.

Gutsy leaders agitate the thinking in their organizations and industries on purpose.  They know that complacency, routine and mediocrity are deadly to any company’s future growth and innovation.

They stir the pot to reinvigorate creative thinking, raise the bar and prime their organization for serious growth and market leadership.

• To what extent has complacency, routine and/or mediocrity stagnated the innovation and growth of your organization? 
• How can you intentionally stir up thinking by focusing on opportunity-driven change rather than merely putting out the fires?

6.     Are warriors.  They go the distance no matter what.

Despite her quiet voice and modest manners, Rosa Parks had the moral toughness and mental courage of a true warrior – a human rights warrior.  Her rebellious spirit and dissatisfaction with the Southern way of life sparked a movement for change in the U.S. and beyond.

Those who lead from guts have a will to win for the sake of their cause.  They don’t just want to win; they fight for it.  Yet they understand that change threatens those who value safety at all costs.

A leader’s warrior spirit must overcome the resistance and inertia amongst the troops within their organization – their employees.  Not by force, but through their own belief, passion and confidence backed by actions.

• As a leader, are you willing to fight for your convictions no matter what?
• What resistance must you overcome along the way within yourself?  Within your employees?
• What inner resources must you tap into, to strengthen your will to win?

7.     Are sure-fire decision-makers.  They put their stake in the ground and charge forward with confidence.

Rosa Parks made tough steadfast decisions, even when challenged by authority figures, friends/families and community leaders.  Yet it was her decisiveness that eventually won over others to her cause.

When it comes to decision making, gutsy leaders are a rare breed.  They have developed the chops to make real-time tough decisions with imperfect information and confidently move forward as though their decisions will prove to be correct.

Many business leaders falter in this area.  They fear putting their stake in the ground and keep waiting for more information, without realizing that delay is costly to their organization.

• In your own decision making, how much information is enough  to put your stake in the ground and move on?
• How do you sort for the most important data and filter out the rest to strengthen your decision making muscle?
• What lessons have you learned from past decisions to be better in the future?

Leading from guts starts with believing that you can make a difference, then having the guts to take action based on that conviction.

Even an ordinary individual, like Rosa Parks, demonstrated that courage, tenacity and conviction inspires others to boldly step up and become a part of your bigger cause.  Her life reminds us that a single person can make a profound difference of unimaginable magnitude and change the course of events forever.

What choice will you make?  Will you lead from guts or will you let fear lead you?

Other Related Links

How To Rise To the Top of Your Leadership Game Through Emotional Mastery

Be Rigorous About Your Fears … Otherwise They Will Drive Your Company into the Ground

___________________________________

Denise Corcoran – CEO, The Empowered Business^TM – helps growth-seeking companies develop game-changing leadership teams and organizations that drive and sustain profitable growth by design.   Denise can be reached at denise@empoweredbusiness.com or www.empoweredbusiness.com.

The post Leading From Guts Builds Gutsy Organizations appeared first on The Empowered Business.

Has the obsession to create a happy, engaged workforce gone toxic in your company?

Is over-emphasizing positive thinking in your company’s culture, actually creating negativity without you even knowing it?

Is having 0% employee turnover actually a good thing to sing high praises about, or is it overshadowing another truth?

These are just a few examples of how companies, even with great cultures, can go to the dark side.

The REAL Truth About Your Company Culture & Its Hidden Shadow Side

Most great cultures are driven by handful of sacred values.  They have the clarity, discipline and consistency to make those values deeply embedded into their organizations, often outperforming in growth and profitability by  as much as 150%.

Yet many great cultures have also gone toxic AND the leaders don’t even realize it.  The factors that drive a company’s greatness – when taken to an extreme or at the expense of other factors – can actually become the organization’s hidden “shadow” side.  When that shadow is not brought to light, it can actually lead to the downward spiral or a company’s demise.

A past client company with a strong people-oriented culture – one that I deeply admired when I first started working with them – is one such example.  That strong people culture ignited rapid growth and became their competitive advantage in a high commodity industry.  However, when the recession hit, financial fear took over, its once strong culture went toxic and revenues and profits plummeted.

How is it possible for a great culture, like that, to go to the dark side and not realize it?

7 Blindspots That Can and Will Drive Your Company’s Culture to the Dark Side

Below are 7 blind spots and clues that your organization’s culture – no matter how successful in the past – is possibly headed in the wrong direction.  Be rigorously honest how these blind spots are relevant to your organization.  Otherwise, your company’s future could be in jeopardy.

Blindspot 1:  You fight for your espoused values at all costs, without realizing the unintended consequences on your organization and business results.

Any value taken to an extreme actually becomes a company liability.  A good example is the obsession with positive thinking within organizations.

Don’t get me wrong.  I am in favor of developing a mindset and culture that focuses on positivity, as long as it is authentic.

Yet being in blissful denial of the “real” emotional climate, politics or stress levels within your organization only creates a culture that hides its deepest worries and avoids the cold hard truth that can cost your company dearly.  Excessive positive thinking also results in artificial company behaviors and attitudes, triggering employee resentment, resistance and frustration.

Remember … any value – even the seemingly positive – taken to an extreme in your organization becomes your liability and “shadow” side.

Blindspot 2:  You focus mostly on the overt, tangible aspects of culture, while ignoring the covert drivers of your culture.

A company’s culture consists of overt and covert factors.   Overt factors involve what is tangible and observable – such as, strategic processes and behaviors within an organization.  Overt aspects of culture often utilize the reasoning, intellectual parts of our brain — the dominant focus of today’s leadership teams.

Covert aspects relate to the intangible, unconscious (ie., below your ordinary awareness) assumptions, social, emotional and political patterns, organizational taboos, etc.  Every organization has covert aspects driving its culture – such as, fears, insecurities, friendships, trust, jealousy, ambition and many more.

These hidden aspects of your company’s culture are driven by the emotional parts of our brain – that is, the underlying motivations, beliefs and “actual” values — determining your actual culture.

For example, one of my company clients has a strong “respect” value — an asset in many work relationships.  Taken it to an extreme, however, prevented them from speaking their truth and having honest conversations about critical organizational problems.

Their covert “agreed upon” behaviors for respect were translated into a belief that conflict or disagreement were to be avoided at all costs.  This covert aspect of their culture drove unintended behavioral consequences for which they paid a high price, till we eliminated the unhealthy aspects of this value.

Blindspot 3:  As a leader, you have a strong internal bias how well your culture is doing that does not match reality.

It has been found in behavior-related studies, that human beings think they are better than they really are.  This phenomenon is called in psychology a “self-serving bias.”

The same is true in the world of leadership and culture.  My term for this is “cultural inflation.”  There are many ways this self serving bias can blind you into thinking your culture is doing better than it is.

For example, when a company grows and changes, it is not unusual for its culture to erode at the bottom levels of the organization.   The leadership team is no longer involved lower levels and often becomes oblivious to the atrophy now monopolizing its culture.

Even when a leadership team recognizes issues within their culture, such leaders often don’t see themselves as “part of the problem.”  They don’t recognize that their actual behaviors, decision-making, communications, etc. are a major contributing factor to the dysfunctionality in their culture.

Blindspot 4:  Your strategy and culture are working at cross purposes with each other.

A common issue at a leadership level is not understanding the interplay between strategy and organizational culture.   As a company, you cannot sustain growth, profitability and your competitive edge without harmony and alignment between business strategy and culture.

So many companies fall short in their goals because they overemphasize strategy with little/no attention to the cultural aspects that drive it.  The most ingenious strategy in the world will never come to fruition without creating the right culture to drive it.

Strategy can be imitated by your competitors.  Your unique, well-entrenched culture cannot.

Blindspot 5:  You put too much weight on the strength of your company’s culture, not its fit.

There is the mistaken notion that great company cultures are the byproduct of its strength.  That is, the more entrenched an organization’s core values, the greater the culture.

While there are advantages to strong cultures over weak ones, the danger is assuming that it is the “right” culture, given your organization’s environment. 

The best cultures are those that continuously adapt to succeed in their market and competitive environments.

A manufacturing company in a price competitive environment may do best with an efficiency-based culture.  While a service business may do best with a people-oriented or customer service driven culture.

On the other hand, as your company’s environment experiences disruptive change, your culture must change accordingly to succeed.  When a company’s culture does not fit and/or adapt itself to its own environment, employees will have a hard time knowing how to respond to and serve the needs of its marketplace.

Ignoring the importance of culture fit and adaptability is one of the biggest reasons why great cultures go bad.

Blindspot 6:  Your organization is plagued with double binds, conflicting values and competing demands.

A hidden threat to great cultures are unresolved double binds and conflicting values.  A double bind, by definition, is an unresolved dilemma where the victim feels trapped, no matter the course of action.  That is, the victim deems the situation as lose-lose.

For example, a leader may be put into a double bind situation about the future status of a loyal, although under-performing, employee.  If he/she fires the employee, the leader is giving an unspoken message that loyalty is not valued.  If he/she keeps the employee, the unspoken message is that underperformance is tolerated, which impacts morale and demotivates your best performing employees.

Conflicting values are 2 or more values in conflict – perceived or real — with each other.  That is, either-or thinking. For example, growth driven companies often over-emphasize growth at the expense of other critical  factors, such as profitability.  A company will never be able to sustain growth until the underlying values and assumption conflicts are identified and resolved.

When either double binds or conflicting values go unresolved, the end result is paralysis, a polarized culture, victim thinking and compromised performance.

Blindspot 7:  You fail to assess the health and fit of your current culture and any possible signs of erosion or dysfunctionality … from the outside.

Because so many aspects of a company’s culture exist “below the radar screen,” it’s easy for business leaders to have a skewed perception about the health of their actual company culture.

Or they rely on their own internal assessment of culture which can be just as misleading.  In my experience of assessing company culture, employees rarely tell all for fear of consequences, so the real truth never fully comes out.

What are the alternatives?

• Use an outside culture assessment tested for high validity and significance … AND only use it as a starting point, not the end all.

• Find an outside consultant that can facilitate open-ended interviews and discovery processes to uncover a leadership team’s understanding of culture, its relationship to strategy and how well the two are aligned.  It is also important for the outside expert to observe your “culture in action” in meetings, everyday activities and through casual interaction with employees to uncover your actual culture.

Why such an indepth assessment?  Because company cultures, even the best, can become lulled by their past success and ignore the warning signs of a culture gone bad.  Some of the most once admired companies in history – Enron, Worldcomm and Arthur Andersen just to name a few – have been unfortunate proof that even purported great cultures can go to the dark side.

For low cost tools to assess your actual culture landscape, click here.

The key is not to fear or avoid the shadow or dark side of your company’s culture.  Rather to learn from it. Your culture’s shadow side actually holds the gift of transformation for your organization’s future growth, success and distinctive advantage in the marketplace.

What warning signs or blindspots do you need to heed from your culture’s shadow side?  What will it cost your organization if you don’t?

___________________________________

Denise Corcoran – CEO, The Empowered Business^TM – helps growth-seeking companies develop game-changing leadership teams and organizations that drive and sustain profitable growth by design.   Denise can be reached at denise@empoweredbusiness.com or www.empoweredbusiness.com.

The post When Great Company Cultures Go to the Dark Side appeared first on The Empowered Business.

It’s that time of the year!  Most business leaders are preparing for an executive off-site to define their company’s future direction for the new year.

Yet, in my 30 years experience of working with leadership teams and companies, the terms “vision,” “mission” and “values” are THE most overused, misunderstood and abused words in the business community today.

Vision statements, mission statements and strategic plans in many companies reduce to mere academic exercises with no real value in driving an organization forward.  Why?  Let’s take a look.

Why Most Company Visions Get an “F”:  The Big 3

1. Your company’s vision lacks the necessary specificity and inspiration to pull your company forward.That is, your vision lacks intentionality, concreteness and emotional teeth on a gut level in what you really want to achieve and who you need to become in the process.Powerful visions grab and motivate people toward your desired future. Weak visions are meaningless superlatives or vague language that have no energy and fall flat on your organization.  How would you rate your vision?
2. Your vision lacks commitment and “ownership.”There is a big difference between wanting vs. deciding a desired future.One is built on hope and maybe’s. The other is backed by 100% commitment to the outcome.The word decide in its Latin root form means to cut off all other possibilities.  While none of us can guarantee our future, owning your future will make it a reality.  Have you chosen to go the distance, no matter the obstacles?
3. Your vision lacks the necessary leadership capacity and infrastructure to drive that vision into everyday activities.While passion, specificity and commitment are all prerequisites for a successful vision, your leadership and organizational capabilities must be at the necessary level to drive it.In the words of Thoreau, “For things to change, we must change.”   The leader and organization you are today cannot take you to where you want to be tomorrow. This often missed piece is why most companies’ visions fail.

Examples of Poorly Designed Company Visions  —  Can you guess the company?

 Before we address the essential ingredients to a well-designed vision, let’s first look at examples of what not to do.

 Example 1:  “To be the most successful computer company in the world at delivering the best customer experience in markets we serve.”

This vision is generic, lacks specificity, is loaded with meaningless puff words, that it could be any company in the computer industry.

Who is this mystery company?    Dell Computers.

Example 2:  “Undisputed Marketplace Leadership.”

Yes, a well known company has adopted this vision statement to drive its future direction.   While it may sound nice as a tagline, it gets the award for pointless generic buzzwords that really say nothing.  The company?  Hershey.

Both of these visions are sadly bland and generic that they could have been thought of by high school students as a homework exercise for their economics project.  It is not what you would expect from experienced senior leaders of well known companies. 

The “Secret Sauce” to Highly Successful Visions:  7 Essential Ingredients How

A company’s vision is like a beautiful work of art.  It’s personal and it connects with you and everyone in your organization deeply. 

The capability to create such a vision is THE single most important responsibility of a leader and a leadership team. 

For your company’s vision to succeed, however, it requires more than a good feeling.  What you need in addition is:

Secret 1:  A compelling vision that wins the hearts and minds of employees, resulting in buy-in and commitment.

According to the dictionary, the word compelling means urgently requiring attention; arousing interest in an irresistible manner.

Compelling visions move employees to action with a sense of urgency, change their behaviors, give meaning to their work and inspire them to reach new levels in their own potential.

Secret 2:  A clear vision that ignites your senses – ie., a vision you can see, hear and feel – to internalize and make it real.


A clear vision should ignite the imagination.  Generating passion about your company’s vision is a right brain activity, igniting the emotional center of your brain.

Most companies’ visions are defined in intellectual, abstract and/or quantifiable terms   While quantifiable outcomes are important later, they don’t motivate people to action.

In order for your vision to excite employees and pull your company forward, it must be described in clear sensory language.  The question to ask yourself is …

As you imagine your company’s new future, what do you see, hear and feel in your mind’s eye that tells you that new future has been realized?

Secret 3:  A big vision that challenges you to bold heights.

Big, bold goals are actually easier, more fulfilling and a heck more exciting to achieve than small goals.

Yet most business leaders get stuck in small thinking because:

• They lack confidence.
• They focus on today and what’s not working, rather than on the future and what can be.
• They have no experience with big and can’t even imagine how to conceive a big bold vision.
• They are overwhelmed with short term demands at the expense of long term possibilities.

The reasons why big visions are easier?  Because they challenge status quo thinking.  They force you to go beyond your comfort zone.  They stir passions and motivations.  Bold visions also catalyze new creative thinking.  And, most importantly, thinking big actually eliminates impossibilities.

Secret 4:  A shared vision that creates synergies, buy-in and cohesion.


Failed visions are usually created by a few leaders at the top.  A successful vision represents the entire voice of your company.  Your employees want to participate in a bigger cause and be involved in the creation and execution process.

The big challenge for business leaders is to create a vision that incorporates the wants, needs and aspirations of those who will be tasked with achieving it — your employees.  Your company’s vision must articulate … what’s in it for them?

Despite what many leaders think, the collaborative process of envisioning with your employees is more important than the actual vision product.  If you hear your employees saying “That’s my vision too” or at least feel like they influenced it, only then do you have a shared vision. 

Secret 5: A concrete vision aligned with your values and purpose.


Your vision is only one stepping stone to a new future.  Your values are your compass of how to get there.  Your purpose articulates the bigger cause or why your business exist.

While having a vision, purpose and clearly articulated values are the first step, the alignment of these 3 foundational elements is what determines success or failure of your vision.

 As best selling author, Jim Collins, notes: There is a big difference between being an organization with a vision statement and being a truly visionary company.

The difference lies in alignment.  The best use of an executive retreat at this time of the year is to look at alignment issues and your plan for eliminating them.

Secret 6: A concrete vision with “feet.”


Strong visions must also be strategically sound.  They must be concrete, tangible and have a clear proof of success.

When I work with executive teams in formulating their vision, I ask them to address critical strategic questions as part of their vision to give it “feet.”  Such as …

• What obstacles and challenges did your company have to overcome to achieve your vision?  What did you have to do extraordinarily well?
• What “enemies” (external or internal) did you have to defeat along the way?
• What do your competitors now envy the most about you?
• What new boundaries … ie, what you said ‘yes’ and what you said ‘no’ … did you need to have in place?

Secret 7:  A memorable vision that tells a story.

To create a powerful vision, you must articulate it as an unfolding story – both about the destination and the journey.

Why a story, not a statement?  Most visioning and vision statements miss the pathos element, or emotional connection. If I got $5 each time a company’s vision declared becoming the employer of choice or a talent magnet, I would have retired a long time ago :).

Vision stories, however, unite, create trust, are easy to remember and are transformative.  Great vision stories reveal the hero within us all. 

What is the future vision story that your leadership team will write that ignites the energy and the emotion to sustain action  on days even when nothing seems worth it?

Contact me for specific resources to get started on your memorable vision story.

As your leadership team gets ready for 2014, may you get started writing your magnum opus company’s future story.  May your visions allow you and your company to become larger than what you ever thought was possible.  Happy 2014!

___________________________________

Denise Corcoran – CEO, The Empowered Business^TM – helps growth-seeking companies develop game-changing leadership teams and organizations that drive and sustain profitable growth by design.   Denise can be reached at denise@empoweredbusiness.com or www.empoweredbusiness.com.

The post Creating a Vision That Pulls Your Company Forward appeared first on The Empowered Business.

Most leaders’ looming questions during this time are …

•    Where do we go from here?
•    What can we do to get to the next level?
•    What are we not being that we need to be?
•    What are we not doing that we need to do?

While there are many classic leadership books that are still relevant today – like Good to Great and 7 Habits of Highly Effective People – and a flooded market of other business books, I wanted to share …. My Top 12 Favorite, Hidden Book Gems that are a “must read” for every leader for 2014.

Drum roll please …

LEADING YOURSELF … LEADING OTHERS

1.  Synchronicity: The Inner Path of Leadership

Synchronicity is an inspirational guide to developing the most essential leadership capacity: how we can collectively shape our future.  Through his own life story, Jaworski posits that a real leader sets the stage on which “predictable miracles, ” seemingly synchronistic in nature, can – and do – occur.

He speaks of proper timing — that situations unfold at their own pace that is impossible to rush. He shows that this capacity has more to do with our being and consciousness, than with what we do.

2.  Quiet Leadership: Six Steps to Transforming Performance at Work

I recommend this book for any leader who wants a better understanding of what makes himself/herself tick, as well as the same for their employees.

As David Rock points out, improving human performance involves one of the hardest challenges in the known universe: changing the way people think.

In this book, he outlines the 6 Steps to Transforming Performance by utilizing a discovery, question-based coaching approach in simple, yet powerful, 30 minute lessons to becoming a better leader.  A must read for leaders who want to take their coaching capabilities to the next level.

3.  The 60 Second Leader: Everything You Need to Know About Leadership, in 60 Second Bites

I love this book!  Sometimes books make leadership so complex.  No wonder leaders feel overwhelmed with so many leadership approaches, philosophies and “how to’s.”

This book is the distillation of 30 essential elements of leadership into 60 second digestible chapters. There are also 30 true 60 Second Leader Tales in between the chapters to help bring the leader learning points to life.

Stuck with a challenge or want a leadership focus for the day?  Pick a lesson at random or do one lesson per day for a month.  This book makes growing as a leader an enjoyable process.

4.  100 Ways to Motivate Others: How Great Leaders Can Produce Insane Results Without Driving People Crazy

Another book gem comprised of 100 short, yet powerful leadership ideas for inspiring the best from others.

Sample of topics include:

•    Be the Cause, not the Effect (a core focus of my work)
•    Refuse to Buy their Limitations
•    Get some Coaching Yourself
•    Come from the Future

GROWING YOUR COMPANY

5.  No Man’s Land: Where Growing Companies Fail

If starting a company is difficult, leading a company once the business has caught fire is infinitely more so. It’s what I call “the double edge sword of growth.”

Thousands of emerging and mid-size companies each year approach the dangerous transition that Doug Tatum calls “No Man’s Land” … when they are too big too be considered small but still too small to be considered big.

Tatum discusses the 5 critical success factors for managing, driving and sustaining growth, along with case studies of companies that succeeded or failed during No Man’s Land.

6.  Mastering the Rockefeller Habits: What You Must Do to Increase the Value of Your Growing Firm

What are the underlying handful of fundamentals that haven’t changed for over a hundred years?  Harnish outlines eight practical actions you can take to grow your company and strengthen your culture, based on best practices adapted from best-run firms on the planet.

It’s an easy read.  Because there are so many valuable insights and best practices that have worked in other companies, this is a book you want to read over and over again.

7.  Guts!: Companies that Blow the Doors Off Business-As-Usual

Kevin and Jackie Freiberg’s previous book, Nuts!: Southwest Airline’s Crazy Recipe for Business and Personal Success, described the unconventional leadership that made Southwest an airline industry dynamo. In GUTS!, the Freibergs look at twenty-five extraordinarily successful businesses and introduce the chief executives who are creating a new corporate ethos that blows the doors off business-as-usual.

The leaders in the book share a common vision: They see business as a heroic cause and understand that good leadership isn’t a matter of position, but of influence. Unconventional wisdom for unconventional times.

EXECUTING YOUR PLAN & ACHIEVING RESULTS

8.  Execution: The Discipline of Getting Things Done (2011 edition)

A book that shows how to get the job done and deliver results . . . whether you’re running an entire company or in your first management job.

Larry Bossidy is an acclaimed CEO with few peers who have a track record for delivering results as he has. Ram Charan is an advisor to senior executives with insight into why some companies are successful and others not. Together they’ve pooled their knowledge and experience into one book on how to close the gap between results promised and results delivered that every business needs today.

9.  Ruthless Execution: What Business Leaders Do When Their Companies Hit the Wall

Success can be blind, even for the best companies. Such companies will eventually hit a performance wall … in some cases, many times.  To survive this phenomenon, today’s business leaders must know how to manage through adversity while preparing their companies for a new rebirth of success.

In Ruthless Execution, Amir Hartman identifies the central ingredients that help certain companies to get beyond the wall and thrive.

You will learn when and how to recalibrate the balance between performance and growth; how to define a coherent, tightly-drawn business philosophy that maps to specific actions; new ways to promote accountability and alignment; and how to use performance metrics without burying people in meaningless trivia.

ACHIEVING THE IMPOSSIBLE BY UNLEASHING THE POWER OF YOUR MIND

10.  E-Squared: Nine Do-It-Yourself Energy Experiments That Prove Your Thoughts Create Your Reality

Funny, uplifting and profound …

E-Squared is a “do it yourself” manual with simple experiments to prove once and for all that reality is malleable, that consciousness trumps matter, and that you shape your life with your mind. Rather than take it on faith, you get to prove for yourself, through nine short experiments, how the power of intention can change yourself, your world and your outcomes.  Yes, you read that right. It says prove.

A must read for anyone who wants to experience powerful breakthroughs in 2014 … with less effort and in less time.

11.  Theory U: Leading from the Future as It Emerges

In this ground-breaking book, C. Otto Scharmer invites us to see the world in new ways.  What we pay attention to, and how we pay attention, is the key to what we create.

What often prevents us from ‘being present, ‘ is what Scharmer calls our blind spot, the inner place from which each of us operates. Becoming aware of our blind spot is critical to bringing forth the profound systemic changes so needed in business today.

By moving through the “U” process we learn to connect to our essential Self in the realm of ‘presencing’ – a term coined by Scharmer. When ‘presencing,’ we are able to see our own blind spot and pay attention in a way that allows us to experience the opening to new possibilities — and realizing them.

12.  Biology of Belief:  Unleashing the Power of Consciousness, Matter & Miracles

Now you may be wondering … what the heck does a book written by a renowned cell biologist and former medical school professor have to do with leadership and business?

This is one of my favorite books about the science of how our thoughts control our life.  Bruce Lipton, through his own scientific experiments, shakes up conventional medical thinking with his findings that genes and our DNA do not determine our biology (or disposition to certain diseases).  Rather our DNA is controlled by signals outside the cell, including our positive and negative thoughts.

Through simple language, humor and everyday illustrations, his findings have revolutionized our understanding of the link between mind and matter and the profound implications to our lives.

The implications are equally important to organizations where the focus is primarily on the tangible, yet it is the intangible  (eg., our collective thoughts, emotions and beliefs) that drive your company’s outcomes.

Enjoy the holidays and happy reading!

P.S.  Share your favorite leadership and business books in our comments section!  We’d love to hear from you.

_______________________________________________

Denise Corcoran – CEO, The Empowered Business^TM – helps growth-seeking companies develop game-changing leadership teams and organizations that drive and sustain profitable growth by design.   Denise can be reached at denise@empoweredbusiness.com or www.empoweredbusiness.com.

The post My 12 “Must Read” Best Leadership Books for 2014 appeared first on The Empowered Business.

Photo Credit: David Niblack

This final part of our accountable leader series addresses my top 10 leadership and culture practices for a strong accountability organization.

Keep in mind that the 6 internal drivers, addressed in parts 1 and parts 2, account for as much as 90% of your performance and results, including accountability.  Practices by themselves, can’t drive accountability.  They can only reinforce and support a healthy accountability mindset.

From Accountability to High Performance: Top 10 Leadership and Culture Practices To Make That Giant Leap

To build a high performance organization, a strong accountability mindset and practices must be embedded into your company’s DNA.  The two combined catalyze your organization to move from struggle to thriving, from crises to momentum, from inertia to growth.

Below are my top 10 most important leadership and culture practices necessary to make that leap.

1.  Set goals that truly motivate and excite your employees.The first step to a strong accountability culture is to set goals across the entire organization. However, nice sounding goals on paper does not guarantee achieving them.  Most leaders overlook the missing ingredient that drives achievement — MOTIVATION. Employees must be motivated to “want” to achieve their goals.

Below are a few ways to help your employees set goals that they want to achieve.

• Establish goals that challenge them.  Studies have shown that difficult goals result in higher levels of performance than easy goals.

• Elicit each employee’s personal goals and find a way to help them achieve personal aspirations in conjunction with their workplace goals.

• Help employees identify their jobs’ essence – ie: the higher purpose of why that role exists – to appeal to their fulfillment needs.
  

2.  Define outcome or results-based job descriptions that align with company goals.

‘Old style’ skills and competencies job descriptions are poor predictors (or motivators) of future success.  To truly drive results though your people, every leader and employee should have a results-driven job description that identifies their top 3 -5 outcomes, along with clearly defined success measures to be tracked throughout the year.

I also include a more comprehensive set of important factors, when working with leaders, such as: critical success factors; connection to company goals, resources needed; shared vs. sole responsibility; action plan; and what factors could derail achieving the outcomes.

3.  Hire for attitude and motivation; teach the skills.

A recent study showed that almost 50% of new hires left in the first 18 months.  Of those, 89% left because of ‘attitude fit’ issues, while only 11% left because of lack of skills.

The below table illustrates the tradeoff of hiring for motivations vs. competencies and the level of performance you can expect. Hiring for motivation and attitudes over skills is critical to build strong accountability and high performance.

                                         From Under-Performing to Top Performing:

                                         The Motivation vs. Competency Relationship

4.  Make sure your employees have the necessary skills/competencies, tools and resources to succeed in their role.

While the predominant drive of performance is motivation, having the necessary competencies and tools are essential for an employee to act on his/her motivation.

If a role is “too big” for an employee – ie: they lack the skills to succeed, then it is essential to teach, coach and train your employee so they can achieve their goals.

In your employee’s outcome based job description, identify the skills to succeed, where the gaps are and a development plan to eliminate those gaps.

5.   Set clear expectations that your employees understand and agree to.

While leaders often understand the need for clear expectations, many overrate their ability to deliver on the level of clarity needed.  Because of differences in perceptions, language and the meaning given to it, too often a leader’s intended communication is not received or interpreted by their employees in the same way. This is the #1 reason for unmet expectations.

To avoid such a breakdown, at a minimum,

• Communicate expectations in concrete terms – ie: answer all calls within 3 rings.

• Ask employees to repeat back what expectations they heard.

6.  Elicit employee’s emotional buy-in for trust and commitment.

For many leaders, developing a strong accountability organization can be harder than it seems.  The common blind spot is not getting your employees’ emotional buy-in about the importance of accountability.

Buy-in involves capturing the hearts and minds of your employees to take ownership of their roles AND to take ownership of company results.

According to a study done by Partners in Leadership, executives reported that …

…only 10% of their employees fell into the “Buy-in” category, while 84% were seen as either “Comply and concede” or “Exempt and excuse” in terms of owning organizational results.

When employees buy-in, they act as though your company is their company.  They go beyond the expectations of their role and do whatever it takes for the company to succeed.

How many of your employees would fall into the “Buy-in” category and take ownership of your company’s results?

7.  Reward your employees — on their terms — to increase motivation, drive and commitment.

There are 2 kinds of motivation – intrinsic and extrinsic.  Most companies attempt to motivate employees extrinsically – ie: compensation, bonuses and benefits.

Yet Herzberg – top motivation theory expert – found that extrinsic motivators fall into the category of “hygiene” factors and can only eliminate employee dissatisfaction.  They don’t increase motivation.

On the other hand, intrinsic motivators – such as, achievement, meaningful work and recognition – cost little and have the greatest impact on employee commitment.

As a leader, do you know what the intrinsic motivators for each of your employees are?  How much time do you focus on increasing those motivators?

8.   Be firm and let go of consistent under-performers. 

Consistent under-performers lower the entire organization’s performance. They become a de-motivating factor to other employees.  They consume more of a leader’s/manager’s time when it can be better spent on your high potentials and future leaders.

The first step to improving this situation is to realize that you, as a leader, are part of the problem by avoiding the truth. Do what you can for a defined period of time to coach your under-performers to achieve success.

If improvement is not achieved, the second step is to help the employee to transition to a better suited role or another employer.

9.  Create a daily environment and culture of self-responsibility, self leadership and self-learning.

Self-responsibility is the ultimate trait of a high performing organization.  You can’t have a strong accountability culture without every leader and employee taking responsibility for themselves, behaviors and outcomes.

Self-responsible people are the do-ers of the world, not the “done to.” They refuse to see themselves as victims. They believe that they are in charge of their own destiny.  They are the creators of opportunity, rather than believing they are entitled to it.

While it is beyond the scope of this article to go into “how,” to create a culture of self-responsibility, the 4 mindset and behavioral traits essential for self-responsibility are:

• Commitment – a willingness to do whatever it takes to succeed.

• Ownership — taking ownership for all your results.

• Resilience – ability to bounce back and rise above adversity, crises and failures

• Continuous learning – learning from past experiences and mistakes, always seeking to grow and evolve.

10.  Expand your internal locus of control to drive bigger and better outcomes.

A person has either an internal or external locus of control, depending on to whom or what they assign responsibility for what happens.

External locus equates to a “victim” mindset.  Such people believe that everything happens to them.  They are masters of blame, helplessness and low self esteem.  Nothing is their fault.

Internal locus equates to “the accountable person.”  Such people believe they can control or influence the outcomes in their lives.  Even when events are beyond their control, they know they have options how to respond to such events.  They have self-confidence and a learning mindset.

To increase your internal locus, recognize the fact you always have choice.  Brainstorm other options, take small actions and, most importantly, pay attention to and change your negative self talk.

Summary: 

The goal of this 3 part series is to increase your awareness about the one thing.  In this crazy busy world of business, I know the one thing that makes the biggest difference in you and your organization is the level of your game.

Becoming an accountable leader is the catalyst for transforming your untapped potential into hard-core business results. You can only change the level of your game if you are rigorously honest with yourself about the strength (or lack) of accountability, within your organization.

Use the principles and practices in this series to get started. For more personal feedback about building a strong accountability culture, request our complimentary Leadership Strategy Session to define next steps, given your goals and challenges.  However you proceed, take the next step now!

The post The Accountable Leader: Developing the Right Practices That Ignite Performance (Part 3) appeared first on The Empowered Business.