Jim Naleid's - TEC Blog

Monday, February 25, 2013

YOUR LEADERSHIP LEGACY



"A name is better than good oil, and the day of death than the day of one’s being born... Better is the end afterward of a matter than its beginning. " (Eccl. 7: 1, 8; NWT)

A former colleague of mine, along with his aged father and siblings, put his mother to rest this morning. Yesterday afternoon a bright February sun splashed the Fellowship Hall with warmth as well-wishers and family friends displayed their love, concern and support for the family. Their mother fought off cancer for sixteen years and only in the most recent two did its debilitating effects extract the most from her. She led a bountiful life that fell shy of 87 years by just two weeks.

In many respects there isn't anything particularly special about this except for those she personally nurtured, influenced and served. You know and likely have lost wonderful people just like my dear friend's mother.

TURN, TURN, TURN

Many my age are very familiar with Solomon's words from those penned in the bible's book of Ecclesiastes, the third chapter. Pete Seeger's "Turn, Turn, Turn (To Everything There is A Season)" was popularized commercially by David Crosby and Roger McGuinn, the prominent two of the five that comprised The Byrds. Turn, Turn, Turn though written by Seeger in 1959 wasn't recorded until 1962 and, as a single, went to the top of the charts in 1965 after the Byrds recorded and released it on the Columbia label.

Setting that aside, less often than other popular biblical verses, those noted above from Ecclesiastes the seventh chapter have a certain application as we contemplate and celebrate one's life passing.

The reasons I decided to highlight this particular woman's life and death with the objective of raising the issue of one's "leadership legacy" are many. Like numerous others of her generation, the child of immigrants, she was born in the Midwest, schooled there, graduated from a small college in Minnesota and went to work to support her husband while he finished school after serving in World War II. Both eventually became educators with a desire to serve and teach young ones from Whitehall, WI to Tripoli, Libya and that they did. You and I know there is a substantial leadership legacy embodied here and it is safe to assume it has less to do with students who sat in her classrooms than it does the impact she had on some of their lives, forever.

APPETITE FOR LEADERSHIP

Leadership is a fascinating thing and of course today, we talk and write about constantly. There is obviously a great appetite for Leadership Lessons as evidenced by the plethora of books, seminars, blog posts and endless opportunities for business owners and executives to improve their lot by paying attention to and applying even a small share of what is available to them.

Thinking back on my business career and leadership positions I was privileged to serve in, I don't recall ever being asked about what I was doing to assure that my leadership legacy would include those things I considered important when I finished. I wish someone had.

The point Solomon was making, of course, was that at the beginning of life, as happy an occasion that is for most parents, the newborn has yet to contribute to the family and society as a whole. It is only at "the day of death" that someone who had the responsibility of leading any other single or collective group of humans beings can be lionized for the good or bad they undertook as leaders. It is my belief that those who accept and actively engage in leadership ought to think about and answer the question I was never asked.

THINKING AHEAD - YOUR LEADERSHIP LEGACY

You've heard or had the experience in one way or another when the theoretical question is asked, "If you were to write your own eulogy today, would you be satisfied with it?" Our tendency may be to cooperate with the facilitator of such an exercise but readily set the thought of it aside once we step away from it. The reality is that we must give thought to our leadership skills as it relates to a leading a "High Performing Company" just as we must seriously map out the direction we intend to take the company or enterprise we lead.

Business owners and CEOs have to be reminded that a well-executed exit strategy isn't something results from a happenstance notion to do so. Many do lose sight of the fact that often times the planning required for the "Exit" is far more important than the planning to begin. Not unlike the difference between birth and death and I say that in anything but morbid terms.

So then, what do you want your "leadership legacy" to include and if it is to be a true legacy, what impact would you care to leave on those you have the privilege to lead? The leaders that led me didn't resonate with me because of earned or inherent wealth created for themselves or financially invested stakeholders. That isn't to say some of them didn't achieve great financial success, but that happens to be the least of their qualities that comes to my mind.

Those that have a left their leadership legacy with me did so out of a generosity of spirit, firm but kind guidance, a sharing of well-timed wisdom and doors that were to be closed only if I pulled them shut before me. We could argue that certain people just have that ability and without much thought, gave their best. While that may be so, it is my contention that a leader who consciously does the same now will not be easily forgotten by those that benefit from that determination.

Jim Naleid is a Life-long Entrepreneur, Change-Agent and Thought Leader, Managing Director of Naleid & Associates and Regional TEC (“The Executive Committee”) Chair leading a group of executives to become Better Leaders, Making Better Decisions with Better Results. http://www.linkedin.com/in/jimnaleid

Tuesday, February 19, 2013

Leadership Lyrics



Songwriter's Lessons on Innovation, Creativity and Ingenuity


Whatever your preference of music happens to be; are you one that gives much thought to what it took to write and produce your favorites songs? My guess is that most of us don't.

COMMON THREADS

There is, however,  a leadership lesson to be taken from songwriters of all genres. To prove my assertion, pick up a copy of Paul Zollo's Songwriters on Songwriting (Expanded Edition; De Capo Press 1997). The book is a compilation of Zollo's interviews with the likes of  Pete Seeger, Willie Dixon, Livingston & Evans, Burt Bacharach, Hal David, Carole King, K.D. Lang and many, many more. All approach their craft in their own unique ways and all have written songs of untold numbers that have never been heard or popularized. The common thread is that they wrote, some often, some not so. At times the music came first and the lyrics followed or vice versa, but they wrote.

Willie Dixon, who died at 75 in 1990, and known by many as the "Father of the Blues" wrote thousands of songs. Like so many things, the 80/20 rule applied to Dixon's originals and the relatively few that produced royalties once well-known artists recorded them.

David Crosby on the other hand admits that songwriting hasn't always come easy and unlike his good friend Neil Young, Crosby's songs came few and far between. Zollo attributes Crosby's patience in the process  as the key that unlocked the likes of "Wooden Ships" and "Deja Vu,"  songs that catapulted Crosby, Stills and Nash to fame in the late 60s.

DIFFERENT PATHS

While Dixon and Crosby worked from opposite ends of the creativity process, both produced their results based upon personal experience while acknowledging that not everything that came to mind, heart or soul was going to meet with success.  Keep in mind that the floors of songwriter kitchens, basements or music rooms are littered with "failed" compositions.

CEOs and business leaders that come to the conclusion that innovation and great ideas can be nurtured through a disciplined process, in many ways, go about it as songwriter's do. Willie Dixon told Zollo that his "blues" were all based upon facts and contrary to the tendency for most to think of the "blues" as songs of woe and lamentation, Dixon's tunes were predominantly filled with joy and hope of better things to come.

Crosby, on the other hand, told Zollo, "I can't legislate a song into being, it just will not happen for me. I can make a space for it to happen, and sometimes it will come and fill the space." Innovation comes about this way as well. In the same interview Crosby went on to say, "I'm sure we don't really know how the creative process works...you know it comes every which way."

ONGOING CHALLENGE

Many leaders I've spoken to and work with struggle with innovation, creativity and ingenuity and yet all of them realize that without these, there may be little or no future to contemplate. Today an internet search of the word "innovation" brings back 80 million 400 thousand results. It's obviously an important topic that has provided fodder for an endless stream of how-to blogs, posts and white papers, not to mention complete MBA course offerings.

The fact is that we will continue to talk about the ongoing need to innovate, create and ingeniously bring new products and services to market and we will do so in many different ways. Business leaders that have yet to successfully unleash the creative, ingenious and innovative minds within their organizations should at a minimum, learn a thing or two from songwriters. Perhaps Crosby put it best when he said he couldn't "legislate (insert 'innovation, creativity or ingenuity') a song."  But, when he made a "space for it to happen," in time he'd find that space to be filled.

Quite simple, isn't it? Provide the space and buy out the time. Collaborate when necessary. Play it one way. Try it another. It doesn't matter how many attempts end up on the drawing room floor. What matters is that you and those with you are frequently writing new scores.

Jim Naleid is a Life-long Entrepreneur, Change-Agent and Thought Leader, Managing Director of Naleid & Associates and Regional TEC (“The Executive Committee”) Chair leading a group of executives to become Better Leaders, Making Better Decisions with Better Results. http://www.linkedin.com/in/jimnaleid

Monday, February 11, 2013

'Aay Leader Mon; Lively Up Yourself!


Bob Marley's Lesson for Leaders


When this 'pre-post' idea started rattling around my head on Friday, I had no idea that a 'Bob Marley Tribute' was on tap for the 55th Grammy Awards but the timing couldn't have been better.

Reggae, the colors of the Ethiopian flag, green yellow and red horizontal fields, the floppy knit 'Rasta' caps, the cannabis leaf, dreadlocks and Jamaica contribute to the known legacy of the devout Rastafarian Bob Marley evidently was.

One look at me and you'll conclude I'm obviously not a Rastaman and although I did inhale several decades ago, I cannot lay claim to doing so in the pursuit of finding the answers to deeply spiritual concerns.

Here's another thing; for most, cannabis is associated with being laid back, way back. Admittedly, Marley's music held deep meaning as he addressed social concerns, but his performances were not anything close to being laid back. High energy, soulful from the Island Heart is more like it.

DON'T BE NO DRAG

"Lively Up Yourself" is not among his most remembered, I've always liked it.

"You're gonna lively up yourself and 
Don't be no drag...
You rock so you rock so
Like you never did before..."

https://www.youtube.com/watch?v=bDnNqsy7rYE


Leading a company as an owner or Chief executive is also anything but a 'laid back' easy-as-you-go responsibility. Everyone that's been there or is currently doing so gets that. What some miss though is the need to "Lively Up Themselves" and avoid being "no drag" on the organization they lead but instead, to figure out how to "rock like they never did before."

The core competencies required of an executive are many and well documented and this isn't to discount any of them. It has been my experience that one key, one very important key or core competency to superior performance is lost in a leader's lack of 'liveliness' or more plainly, a sense of humor.

HUMOR AS AN EMOTIONAL COMPETENCY

David McClelland's study; "Identifying Competencies with Behavioral-Event Interviews,"[1] concluded that "Several of the emotional Intelligence (EI) competencies most strongly tied to humor were in the social awareness or relationship skill domain, as one might expect, since these are the most visible socially."  Further the author(s) noted, "... that for these gifted leaders the expression of many or most EI competencies often came via the artful use of humor - and that this was in itself a basis for their success as leaders."

Let this sink in. Goleman et al found that, "What's particularly telling, though, was that those successful leaders use of humor strongly correlated with the very emotional intelligence competencies we have found to be key to a leader's superior performance." (Underline, italics, mine.)

You've met enough leaders in your day to know the difference between one who understands the artful use of humor and one that doesn't. You've also worked with or alongside persons who, perhaps by default, are granted or assigned leadership roles that are a drag, personally and professionally. What is striking though is that many leaders, when away from their business responsibilities, possess a sense of humor but find it unthinkable to allow that to be enjoyed with their colleagues, direct reports, customers or whoever may benefit from it.

I've taken some liberty with equating "liveliness" with a sense of humor but, here's the deal; you may be a well-intentioned, skillful, competent and successful leader in your own right. You may even rank high on an Emotional Intelligence scale. The bad news is that if you don't have and don't believe you are able to acquire a sense of humor, you may just have to accept good results. Superior results may elude you.

For those who are recognized by friends or family for possessing this important asset, if it's not being utilized artfully within the scope of your work-a-day responsibilities, readjust your thinking. "Lively Up Yourself" for superior results.

Jim Naleid is a Life-long Entrepreneur, Change-Agent and Thought Leader, Managing Director of Naleid & Associates and Regional TEC (“The Executive Committee”) Chair leading a group of executives to become Better Leaders, Making Better Decisions with Better Results. http://www.linkedin.com/in/jimnaleid



[1] David C. McClelland, "Identifying Competencies with Behavioral Event interviews," Psychological Science 9 (1998): 331-339; cited in Primal Leadership; Daniel Goleman, Richard Boyatzis, Annie McKee; Chapter 3, pg  34; Harvard Business School Press

Monday, February 4, 2013

TEC LEADERSHIP and STAN MUSIAL



Baseball aficionados will be talking about Stan Musial for some time. The famed, life-time St. Louis Cardinal died at the age of 92 a few weeks ago. He spent his entire career in the same uniform. While he played during an era of some more notorious characters, like DiMaggio and others, Musial did something none of the others ever came close to. His career-high strikeouts during a season was 46. Think of that. Over 22 years he walked to the plate somewhere in the neighborhood of 11,000 times, hit the ball 3 out of ten times at bat, struck out one in ten times, and walked or got hit by pitches the others. There is good reason he was the National League Batting Champ seven times.

He was a  humble man. The fans loved him and he loved them back.

SOME HAVE IT, SOME DON"T

During the 1990s my wife would travel to Florida with me during baseball's spring training. My clients were young, professional baseball players already making millions or about to. While the vast majority of those I served were outstanding young men, there were those that were simply ingrates, spoiled by doting parents or lacking in social grace for one reason or another. Some of those I had the privilege of working with are still associated with the great game either in the front offices or the dugouts as coaches in the majors leagues. Many simply went back to a life that includes hard work and caring for their families. Others are broke, have been in jail or have sullied the game with their doping antics.

I didn't know Stan Musial personally. I did watch him on a black and white TV screen as a kid and was among many who pretended to be 'Stan the Man' in our empty-lot pickup games. One of those spring evenings we dined in a  St. Petersburg Beach restaurant.  I was 'blown away' when I realized we were sitting just a few tables away from this living legend and his wife who were enjoying a quiet evening of their own. No one was bothering 'The Man.'

A ONE TIME, UNFORGETTABLE EXPERIENCE

When we finished eating and were making our way to the door, my wife interrupted my astonished rambling, "That was Stan Musial, can you believe it Hon, that was Stan Musial;" with, "You're not likely to ever have this opportunity again, just go say hello and tell him how you feel."

Overcoming my own apprehension, and really, a respect for his privacy, I went back. He smiled and extended his hand. I apologized and he reassured me not to worry. He asked my name and pulled out one of his famous, printed cards and wrote the brief note you see above. We spent less than a minute and I'll never forget it. There are boxes of signed caps and balls in my basement but none as precious as this.

Shortly after Musial's death, Mike Leuchtfeld of Red Bud, IL who is a notable collector of baseball memorabilia, said that,"Because Musial was so approachable and willing to sign just about anything placed in front of him, the higher volume of autographed items will hold down prices in the collectibles market."

THE IRONY OF MISPLACED VALUE

Reading between the lines, if a celebrity of any profession were unapproachable, unfriendly or just too full of themselves to readily scribble their signature on a piece of anything, it will be more prized. Isn't that an odd reality?

Put some of this in a leadership context. Now, mind you I didn't do exhaustive research for this post and can't say what kind of a leader Mr. Musial was as a player in the club-house, on the field or in his post-playing days. From my experience though, I can tell you that the athletes I met who were the antithesis of 'Stan the Man' were not liked by their teammates, didn't consider the value of their supporters and showed little gratitude to other professionals in their hire.

The leadership qualities Stan Musial displayed, however, were plain as day and statistically unshakable.

A 'MUSIAL' KIND OF LEADER

Leaders of his ilk are dependable, loyal, grateful, generous and firm but kind. They don't need to strike out in ratios like Babe Ruth did to make a lasting mark on their craft. They influence others with a quiet competence that becomes emblazoned in the legacy of timeless leadership. It is a leader who can readily place their signature where it has lasting meaning that deserves to be included in an elite group of men and women known as genuine leaders - the kind we like to work for and that like us equally well for working with them.

Jim Naleid is a Life-long Entrepreneur, Change-Agent and Thought Leader, Managing Director of Naleid & Associates and Regional TEC (“The Executive Committee”) Chair leading a group of executives to become Better Leaders, Making Better Decisions with Better Results. http://www.linkedin.com/in/jimnaleid

Monday, January 28, 2013

TRUST is A Leadership Must




“It’s time to stop talking about trust and start doing something about it...”[1] wrote +Barbara Kimmel, Executive Director, Trust Across America as an introduction to +Frank Sonnenberg's Managing with a Conscience: How to Improve Performance Through Integrity, Trust, and Commitment (2nd edition). It's no wonder in that Sonnenberg refers to the quality 100 times in his book. [Don't mistake the following for a review, however, I will highlight a few additional points Sonnenberg makes.]

"Trust" shows up on everything from US currency to who knows how many corporate mission statements and untold number of leadership-themed books, not to mention endless philosophical and moral relationship treatises.

Willing to make an uneducated guess, it may be that 80-90% of CEOs and business owners give lip-service to trust and may even believe in their heart-of-hearts that they both trust their employees and can be trusted themselves. If that appears to be hyperbole to you, forgive me.

This topic of trust, particularly as it relates to business governance and leadership, is important enough to talk about often. As a TEC Chair, I work with a terrific bunch of business owners and CEOs and all are challenged when it comes to trust. On the flip-side of what I stated above, many owners and CEOs find themselves vulnerable because deep down inside they may actually distrust some of their colleagues. We could go round and round on that but for the leader who actually does trust his direct reports and senior managers, that leader must make it absolutely clear that's the case.

A real-life example that comes to mind is that of a CEO who, for several months, was having misgivings about one of his senior managers. The problem arose from the sense that this manager didn't seem to bring much "to the table." The manager had been on board prior to this CEO's tenure and as far as she was concerned, she was performing every bit as well as she had always been. Neither knew what the other was thinking.

I listened to this through several meetings. Influenced by what was being shared, the only normal thing to do was to ask, "Why?" Why hadn't something been done about this? Why hasn't this been discussed specifically with the manager? Why are you allowing this concern to affect the team? Why don't you just get rid of this problem? Quit procrastinating!

Then one day, something very important occurred.   A vendor was visiting the company to discuss a significant matter that involved this manager's department and was worthy of including our CEO. During the course of the presentation and ensuing exchange, the manager noticed that our CEO had little to add to the conversation.  Call it insecurity or whatever you'd like, but during the next one-to-one meeting between them, the manager shared that she had grown very uncomfortable during the meeting and suggested the CEO had chosen to remain silent in an effort to allow her to just "hang out there;" play the fool, so to speak.

Our CEO wasn't sure how to respond but was smart enough to share the experience with his wife who brought up the issue of trust.

It became clear to our leader that a genuine conversation with this manager needed to take place. Clarity of expectations and the groundwork for trust had to be established. You see, he didn't question the skill and the ability of the manger and actually trusted her expertise and judgment. He had not bothered to communicate that but mistakenly assumed she knew it was so.

Soon thereafter another meeting was scheduled and the CEO humbly requested an opportunity to set matters straight. With care and forethought, he expressed that, indeed, he did trust this manager. His silence during the vendor meeting was due to his sense that he just didn't have anything to add and, in fact, he was a bit sheepish due to the reality that he hadn't spent enough time educating himself on the subject. He apologized for that.

He also took the opportunity to 'reset' with the manager. They discussed their mutual expectations of each other and both agreed to work at improving their communications.

Sonnenberg wrote, "Employees have the right to know that their employers have confidence in them and in their abilities. People do not like being second-guessed or micromanaged. They want to know that management trusts and respects them to do a responsible job. This leads to superior employee performance. "[2]

You guessed it. There was no need to replace this manager.

This is just one simple example. Our pursuit of  high-performance leadership must include trust and a forum that provides opportunity for the leader to teach, to coach, mentor and express his or her confidence in the team chosen. The CEO must allow for and demand the same of his direct reports and their direct reports all the way downstream.

It may be easier said than done for many but let me share one more piece of sage advice from Sonnenberg's book;

"Changing to a more open and trusting environment requires letting go, unlearning many management practices of the past. That is not easy and does not happen quickly. It requires managers to leave behind many skills, sources of status and power, and implicit assumptions about the workplace that were formulated during past experiences."[3]

Barbara Kimmel couldn't have been more right and if you, as a leader, haven't given this some serious thought lately, revisit the subject. Chances are, your performance and theirs', will greatly improve.

Jim Naleid is a Life-long Entrepreneur, Change-Agent and Thought Leader, Managing Director of Naleid & Associates and Regional TEC (“The Executive Committee”) Chair leading a group of executives to become Better Leaders, Making Better Decisions with Better Results. http://www.linkedin.com/in/jimnaleid






[1] Sonnenberg, Frank K. (2011-12-22). Managing with a Conscience: How to Improve Performance Through Integrity, Trust, and Commitment (2nd edition) (Kindle Locations 9-11).  . Kindle Edition.

[2] Sonnenberg, Frank K. (2011-12-22). Managing with a Conscience: How to Improve Performance Through Integrity, Trust, and Commitment (2nd edition) (Kindle Locations 648-652).  . Kindle Edition.

[3] Sonnenberg, Frank K. (2011-12-22). Managing with a Conscience: How to Improve Performance Through Integrity, Trust, and Commitment (2nd edition) (Kindle Locations 2456-2458).  . Kindle Edition.

Monday, January 21, 2013

The "Combative CEO" Model ...Not for Our Purposes


It's an interesting day in the United States. Martin Luther King Day is being commemorated across governmental institutions, finance and  banking systems. Politically motivated combatants are debating the real meaning of King's message.

Yesterday afternoon the CEO of the free world was administered the oath of office during a quiet family and close-friends ceremony in the White House. Today, maybe a million or so will gather along the parade route and in the grand stands erected for the observance of the public inauguration of Barack Obama in the nation's capitol.

At our home yesterday morning, for the first time in many weeks, we tuned into the Sunday morning talk shows. In the past we even DVR'd one or two and would watch them after returning home from Sunday services. Several months ago we concluded there were just too many more important things to do...Green Bay Packer games, autumn walks and bike rides, a round a golf, time with the grandkids. Weary of the ongoing combative nature of everything political, we resolved that whatever would rise to the level of importance could be read about later in the day, or the next.
 
COMBATIVE, PERHAPS - QUESTIONABLE OUTCOMES 

What struck me though, as I flipped between networks, was a fascinating question posed by different moderators that went something like this; "Given the tone of the President's recent comments and speeches, will what appears to be a combative determination, succeed in changing the course of Washington?"

Be reminded, that is not a quote. I'm simply paraphrasing what I heard asked of the guest or panels these moderators were addressing. Heck, I don't know if the  44th POTUS is combative. All I know is that the Gallup organization released its latest poll today that shows this country's CEO four-year approval rating at 49%, third worst since WW II -  just above Ford and Carter. Some may argue that "approval" is not an indication associated with successful leadership and we could go round and round on that topic. But, if a Board of Directors or a lending institution's loan committee had anything to say about that weak a showing, I'm afraid an executive search or a called loan would result.

Then again, things could change. Historians may be a position to record something that is quite different, quite better, four years from now.


It seems fair to say that in today's world, politics and business are worlds apart. Do we all agree on that or am I missing something? Good, then lets' go with that.

NO LONGER JUST "SELF-HELP"

You are either reading this post of mine because you are a leader determined to become a better leader or you are as I am, an experienced leader, coach or consultant interested in how our community is working to assist those we work with in their pursuit of becoming better at what they do.

Due to the fact that my childhood included a great deal of team play and competition and that I had some terrific mentors like my grandpa, my mom and some memorable coaches along the way, I am elated that "player development" is fully embraced by the industry and its ultimate beneficiaries, executives and business owners, along with their charges. We are rapidly moving beyond "self-help" to helping others becoming better at what we need them to do.

MORAL  AUTHORITY TO LEAD

This is a great time to be a leader and as great a time to be in a position to work with leaders who are self-determined, life-long learners. My experience of once owning hundreds of wonderful books but facing the reality that I couldn't take all of them with me when we made the decision to down-size and join the condominium 'circuit' is not a concern. Now I can re-capture, re-stock and reunite with any of those older books and combine them with all the current thoughtful stuff that's right here in an ethereal library.

For instance, the subject of  "Emotional Intelligence" (EI) as a leadership quality wasn't in the forefront of leadership attributes when I was thrust into my first business leadership role. Servant Leadership, as a leadership quality, though conceptually dating back to the late 70s, escaped the notice of many of us who may have been in leadership positions. For me anyway, "moral authority" wasn't yet on the radar screen, so to speak. All of these subjects and great thinking are at my fingertips. I am grateful.

[We were young entrepreneurs, brash and admittedly, (of course I should speak for myself only) in the school of having "more guts than brains."]

Take the late Robert K. Greenleaf's "Servant leadership: a journey into the nature of legitimate power and greatness," first published in 1977, now in its 25th edition with collaborations with Larry Spears, Peter Senge and Steven Covey in 2002. Greenleaf is said to have coined the term, "Servant-leader" and passed away in 1990. In 1970 he published "The Servant as Leader," an essay which launched the servant leadership movement in the United States.

Note the book's jacket description of the March 1977 edition: "Servant Leadership helps leaders find their true power and moral authority to lead. It helps those served become healthier, wiser, freer, and more autonomous. This book encourages collaboration, trust, listening, and empowerment. It offers long-lasting change, not a temporary fix and extends beyond business for leaders of all types of groups." (Italics, mine)

When moral authority is exercised accordingly, prosperity of every kind, follows.

LEADERSHIP MATTERS

Today's leaders have a tremendous opportunity to learn how to become outstanding leaders not only by embracing that which people like Greenleaf believed and taught but by paying close attention to what great teachers are teaching and what the very best leaders are doing to succeed.

Nothing I've ever read, not Sun Tzu's "Art of War" and its various "For Mangers" editions or any other purposeful lesson on leadership has suggested a combative approach to management will succeed. I'm happy about that and I for one would not be comfortable if the example being set by the CEO of the largest, perhaps unwieldy organization in the world, would ever become lionized. Political will aside, leadership matters and the more real leaders learn to lead, the less the unknowing will be led.

Our mutual responsibility then is to collectively move one another to better ground whether in our endeavors to become better leaders, better teachers, mentors, friends, husbands, wives and grandparents.

Jim Naleid is a Life-long Entrepreneur, Change-Agent and Thought Leader, Managing Director of Naleid & Associates and Regional TEC (“The Executive Committee”) Chair leading a group of executives to become Better Leaders, Making Better Decisions with Better Results. http://www.linkedin.com/in/jimnaleid

Tuesday, January 15, 2013

COMPENSATION MODELS


 What's Wrong With This Picture? 

DISMISS GOVERNMENT and LARGE CORPORATE MODELS

The compensation model I'm concerned about doesn't include either the Federal Government or large Corporate models. Both are untenable, inexcusable and unlikely to ever be changed. People that end up in government cannot relate to entrepreneurs and vice versa. Bureaucrats rely heavily on the success of the entrepreneur but have absolutely no concern or an interest in what drives the entrepreneurial spirit that results in a small to mid-sized business compensation model to begin with.

Large corporations are led by very smart, well educated people. Publicly-held corporations tend to be governed by Boards of Directors who create compensation models for those in the very top-tier as well as generous remuneration 'stipends' for fellow board members.  They may comply with corporate law and government regulations but show a disdain for shareholders and more importantly, the hard-working folks 'downstream.'

Those just part-way downstream within the large corporate model may not be particularly fond of what they do for a living but have resigned themselves to the task of gaming the system, navigating upstream through a maze of challenging pay-grades structured by a sophisticated HR department.

Statistics indicate that in either of these large systems a vast majority of the employed are not particularly happy or motivated to do anything more than what is defined for them to do. With the stroke of the keys in front of me then, I dismiss these for reasons that should be obvious. I have little hope that either is going to change.

I am much more concerned about the compensation models that small to medium-sized, privately-owned companies must create in order to retain talent and in the end, sufficiently reward the entrepreneur who has taken the risk to do so. This cannot happen if such an entrepreneur were to borrow from the government or large corporate models

THE OWNERSHIP MODEL

Ownership brings with it a great many things, good, bad and ugly. Genuine entrepreneurs have to keep going, get up after getting knocked down, and start all over again, if necessary. They go off the rail, however, if they begin to think that the company owes its success to them alone and the compensation model gets all 'skewed up'...to the top of their org chart.

Don't get me wrong, it is my firm belief that entrepreneurs, business owners and those who owners appoint as leaders should be compensated handsomely for what they accomplish. The challenge of the day happens to go far beyond that.

Let's assume the statistics we're aware of that suggest the greater number of people working in these companies are feeling unappreciated, without serious challenge and little accountability are undeniable. That means a good number of people are restless, unhappy and unfulfilled. 

The question to ask of the person most dependent upon their productivity is;
"Do you know who these people are?"


Every now and then employers are blind-sided when what they believed was a happy, highly productive direct report or second-tier manager leaves for greener pastures. What we've learned is that this happens for a variety of reasons with money rarely being the predominant influence in the decision.

Among several studies that have crossed my screen recently, Laura Entis at INC.com cites one commissioned by Dale Carnegie ( @DaleCarnegie ) through MSW that reinforces the notion that compensation models call for more emotional currency than leaders tend to think necessary. The study, as others I've seen, reinforces the reality that 29% of employees are fully engaged, 26% are disengaged and the big bunch in between are "putting in the minimal amount of effort to achieve expected results." 


The study goes on to indicate the real cost to business as a result is $11 billion a year. Worse, in my estimation, is that with this in mind, small to mid-size companies are no better off than the government or large corporations when it comes to creating complete compensation packages. To make matters worse, company leaders, in many cases, have no one to blame but themselves.

COACHING TO SUSTAINED PROFITABILITY

It should be clear by now that small and mid-sized companies have a distinct advantage over their government and large corporate competitors when it comes to finding and retaining talent. What many leaders have so much difficulty with though is coming to grips with how vital it is to develop their coaching and leadership skills. I haven't met a business leader yet who wouldn't rather work On the business rather than In it.

That's easier said than done, especially for one who may have started the business, has performed every function necessary and has subconsciously overlooked the need to shift gears and simply learn to lead the team they've assembled. Any who have, at one time or another, participated in an effort that led to good results by a wise coach or leader knows what's it's like to experience the compensation of satisfaction.

As it turns out, the very best compensation models in force today, yes, must be monetarily competitive, but to a far greater degree must be associated with a working environment or culture wherein the leader leads. The most successful organizations, with the most competitive compensation models, are those that get it and do it. And, guess what? If you are the one in that position and understand what this means, your employee engagement quotient will soar. Your profits will be sustainable and as the word gets out, talent will come knocking on your door rather than walking out through it.

Jim Naleid is a Life-long Entrepreneur, Change-Agent and Thought Leader, Managing Director of Naleid & Associates and Regional TEC (“The Executive Committee”) Chair leading a group of executives to become Better Leaders, Making Better Decisions with Better Results. http://www.linkedin.com/in/jimnaleid