Monday, November 5, 2012
Attitude of Great Leaders
The
most common feedback I get about my management counseling, is, "I
thought this was going to be garbage, but I was surprised -- it's really good!"
People say that as if they have given me a great compliment. But such faint
praise is actually a serious personal criticism, and one every we all need to take seriously.
Would
a surgeon feel about good a patient telling them: "I assumed you didn't
know what you were doing, being a surgeon and all, but you correctly removed my
gall bladder, not my left leg!"
Except
that the critics are right. Most of what passes for leadership advice is fluff
-- platitudes, repackaged conventional wisdom and broad principles that lack
any rigor.
Prove
your worth
In one
sentence, here's how to become a better leader and make your organization more
effective: Do what the evidence says to do, and then go beyond what's known and
imagine what's possible.
I'm an
empiricist (in the same way some people are Republicans or Democrats). That
means I make decisions based on data, not just on what others are doing, not on
philosophy or intuition, and definitely not on what most people are doing. If
the data says an action will get a better result, empiricists try their best to
do it.
When
leaders become empiricists, they are guided by all available evidence, letting
that data tell them the right thing to do. When they reach the edge of the
cliff of what is known, they jump off, creating visions or futures of what can
be. The result is great companies, like Agilent Technologies, Intuit, or
Edwards Life Sciences-- all companies that have impressed me with their focus
on empirical decision-making.
What
often surprises people in "empirical leadership" sessions is that
there is an emerging new way to lead. It doesn't require believing anything
other than empirical data. It gets better results than what's dominated the
field for the last century. Employees love it, shareholders enjoy the benefits
and the methods delight customers.
Ignorance
isn't bliss
The
problem is, we don't do it. Here's what typically happens instead:
We
hire people based on the number of
years of industry experience they have, and then wonder why our company is just
like our competitors. We tell people to be inspired by the company vision, when
they had no role in setting it and will never be asked their opinion about how
to make it better. We ask employees to do as they are told and to feel
empowered while doing as we tell them -- and wonder why they think executives
aren't very smart.
We
ignore learning styles when we put people
in jobs, and then try to figure out why people are always scrambling to catch
up. We focus people on bringing their weaknesses up to the company standards
instead of building on our strengths, and wonder why our company isn't best in
class.
We
learn what our competitors are doing
(called "best practices") and do the same, and scratch our heads
about why we aren't leading our fields. We work sitting down rather than moving
around, and complain about the 3 p.m. energy drain. We discourage power naps.
We
praise employees who respond to email in
minutes, almost guaranteeing that people aren't thinking about the long term.
We tell people to add more responsibilities without giving them someone to
offload some of what they're doing, and wonder why they aren't thrilled with
their increase in responsibilities.
Company
vending machines are filled with products
that make employees obese and slow thinking. We have corporate retreats where
the executives lecture from Power Points, rather than engage in discussions.
We
issue orders (like "fly
coach"), while executives fly first-class and hope no one notices. We
reward our top performers with a raise that is barely above the average, and
can't figure out why we have a motivation problem.
We
hire for skills, not values, and then
wonder why we don't have good teams. We make decisions about what companies to
acquire based on strategic or operational synergies, ignoring culture, and then
wonder why the two groups don't integrate.
We
tell people how they're doing in the
same conversation that we ask them how they'd like to develop, and can't figure
out why they aren't more passionate about their personal growth.
We
hire consultants to tell senior
management what most employees already know. We elevate decisions to the
highest possible level, and wonder why we have organizational cultures where
people don't think for themselves.
We
tell people it's safe to fail and fire
those who don't hit their numbers when they try something new. We turn culture
and values over to the human resources department rather than the CEO owning
the effort, and can't figure out why no one takes the effort seriously.
Where
the evidence leads
Now
here's what we shoud do if we implemented what the evidence says to do:
We'd
turn control of the company over to the
values that the employees share. This would mean starting with the employees we
already have, and discovering what principles, for them, "without which,
life wouldn't be worth living."
We'd
seek places in the market where our
values and strengths would give us the ability to earn high margins and win the
loyalty of great customers.
We'd
find intersections among what we're
uniquely good at doing, our values and those needs for which people are willing
to pay a premium.
We'd
hire only people with both the skills
for the jobs and the values that match the employees we already have. CEOs
would own "organizational culture" in the same way most own EBITA
(earnings before interest, taxes and amortization).
We'd
make decisions based primarily
on cultural alignment, not just on opportunities for integration through cost
cutting. Companies would run experiments, in which the goal was actionable
insights, and we'd turn that learning into the next decisions we make.
Decisions would be made at the lowest possible level, and closest to the
customer.
We'd
build loops of communication from the
customer to the people making decisions, so that each decision becomes more
informed, faster and brings us closer to maximizing our potential as a company.
If
leaders were empiricists, this description would be normal. So why isn't it?
Two reasons. First, what passes for "leadership training" often
amounts to personal philosophy, platitudes and motivational speeches, rather
than practices grounded in evidence Second, the change needs to start at the
top. Most of the CEOs I know are empirical leaders, and their companies are
almost always considered best in class.
Empirical
leadership should extend to our personal lives, as well.
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