Jumpstart Your Priorities – Day 1 (Attitude)

The winner’s edge is not in a gifted birth, a high IQ, or in talent.  The winner’s edge is all i the attitude, not aptitude.  Attitude is the criterion for success.  But you can’t buy an attitude for a million dollar.  Attitudes are not for sale. ~ Denis Waitley

While it is possible for people with great talent or drive to achieve some degree of success with a bad attitude, it doesn’t happen very often and it doesn’t make them happy.  On the other hand, even barely average people can do great things when their attitudes are great and give them a winner’s perspective.  Your attitude toward a task affect its outcome more than anything else, and your attitude toward others often determines their attitude toward you.  And it is your attitude, not your achievements, that gives you happiness and is contagious in its positive impact on others.

Many people mistakenly believe their attitude is set and can’t be changed.   But that’s not true.  Your attitude is a choice, and you need to have a great attitude because it gives you possibilities.

The first Daily Dozen priority you need to focus on is this:  I am going to keep a positive attitude and use it to influence others.

Question:  Describe how you assess your attitude today.  Write a declaration of commitment to keep a positive attitude and use it to influence others, then sign and date it.

Answer:  Beginning today, I will maintain a positive outlook on everything that I do.  For any setback I experience, I will turn it into a learning moment.

Date Signed:  12/21/2017

 

Leadership Foundations

About the Author

Dr. Britt Andreatta is an internationally recognized thought leader in leadership and learning.  Britt is a seasoned professional with more than 25 years of experience consulting with businesses, universities, and nonprofit organizations.  Corporate clients include Fortune 100 companies like Comcast and Apple, as well as companies such as Avvo, LinkedIn, Franklin Covey, Alter Eco Foods, DPR Construction, and 15Five.  She has also worked with major educational institutions like the University of California, Dartmouth University, and the University of New Mexico, as well as nonprofit organizations like the YMCA and Norton Healthcare.

Britt has published several titles on learning and leadership, including her books Wired to Grow: Harness the Power of Brain Science to Master Any Skill and Wired to Resist: The Brain Science of Why Change Fails and a New Model for Driving Success.  She has received over 4 million views worldwide of her courses on Lynda.com and LinkedIn Learning. Titles include Leading Change, Having Difficult Conversations, and Leading with Emotional Intelligence.  An engaging and highly sought-after speaker, Britt delivered a TEDx talk called How Your Past Hijacks Your Future and she regularly speaks at corporate events and international conferences receiving rave reviews like best speaker of the conference.

Britt has served as professor and dean at the University of California, Antioch University, and several graduate schools. She regularly consults with executives and organizations on how to maximize their full potential.Britt has won several prestigious awards, including the 2016 Global Training Development Leadership Award from the World Training Development Congress. She won the gold medal for Chief Learning Officer magazines Trailblazer Award, and was also nominated for the CLO Strategy Award. She has served as the chief learning officer for Lynda.com and senior learning consultant for global leadership and talent development at LinkedIn. She continues to partner with Lynda.com and LinkedIn as an author and thought leader on learning and leadership.

Dr. Britt Andreatta is the CEO and president of Andreatta Consulting, providing solutions for todays workplace challenges. To learn more, visit her website and social media channels: www.BrittAndreatta.comwww.linkedin.com/in/brittandreatta/https://twitter.com/BrittAndreatta

Handouts

Introduction

Welcome

– At the heart of every business success, or averted crisis, you will find a great leader. Research has shown time and again that the difference between an average organization and a successful one are the leadership skills of its people. I’m Dr. Britt Andreatta, and I’m pleased to welcome you to this course on leadership. Successful organizations are different from average or poor ones in three important ways. Number one, they have customers who are not only satisfied, but actively singing their praises. Number two, they have employees who are engagedand motivated to their highest potential and productivity.

And number three, they’re profitable, and can sustain that success well into the future. And good leaders are the ones who drive the success. Effective leadership absolutely makes a difference, and by developing your leadership skills, you’ll be able to make meaningful contributions, to not only your organization, but other aspects of your life as well. I’ve spent my professional career teaching and training on leadership and management. I’m eager to share with you what I’ve learned from these experiences, and bring you the latest information on leadership.

And I’ll be providing my best tips and strategies to help you develop and hone your leadership skills. Remember, leadership is a journey, and I’m excited to work with you as you become a more effective leader. Let’s get started.

Getting the most from this course

Obviously, leadership is a big topic and there was no way I could fit everything into one course, which is why this will be the first in a series I’m authoring. This course serves as the overview and we’ll explore what leadership is and the key skills and strategies effective leaders use to create successful organizations. Future courses in the series will delve more deeply into several of those key skills. I recommend that you watch this one through once to get an overview of the various tools and strategies. After watching it, choose one to two skills that you want to make your focus over the next few weeks. It’s difficult to change everything at once, so just pick what you want to do first, knowing that you’ll get to the others over time.

Also remember that the skills we need change as we move between roles in organizations. I recommend that you revisit this course periodically to review key concepts or focus on a new skill you wish to develop. Throughout this course, I’ve prepared extensive worksheets and handouts for you to use as you hone your leadership skills. These documents have been provided in the Exercise Files tab for all lynda.com subscribers. I’ve also provided a course outline for premium subscribers. I recommend that you download these worksheets.

That way you can easily access them when I reference them during the course.

Understanding Leadership

What is leadership?

Leadership is actually a process, not a position. You don’t have to hold a formal leadership role to be a leader. Good leadership is the use of key skills and practices correctly applied at the right time to help the organization reach its highest potential. The good news is that leadership skills can be learned and improved. Throughout this course, we’ll explore specific strategies for honing your leadership. There’s a range of key leadership skills and practices but they fall mainly into four clusters of competencies. Self-awareness, building relationships, business acumen and organizational strategy. The entire set of skills rests on the bedrock of your integrity. None of the rest mean anything, if you’re not a person who can be trusted to honor your values and behave ethically.

In leadership, reputation really is everything. The first cluster is self-awareness, which is knowing yourself, including your strengths and weaknesses, as well as how others perceive you. Consider self-awareness as the foundational skill upon which you’ll build the others. For example, how well do you control your emotions when in a stressful situation? What about recent performance reviews? How closely did your supervisor’s perception of your performance match your own? Next, there’s building relationships, which includes all aspects of working well with others, including peers, superiors, and employees. When you interact with others, how well do you read the situation? How quickly do you build meaningful rapport with others through interpersonal interactions? And how good are you at picking up on underlying emotions that may or may not match what people say and do? The third cluster is your business acumen and includes technical skills, decision making, managing work, and knowledge of your industry. The technical skills are specific to your position. For example, if you work in finance, you would need to know the auditing process. Or if you work in manufacturing, your ability to run machinery would be vital. And the fourth is organizational strategy, which is guiding your organization to the next level of development by analyzing your industry, setting strategic direction and innovating change.

How well are you able to identify and collaborate with influential people who are crucial to accomplishing your goals? How often do you scan national and international news to look for developing issues that may affect your organization in coming years? These leadership skills are relevant to every organization, and every leadership role, whether you’re new to leading, or the CEO of a multinational corporation. As you move into higher levels of responsibility, the competencies in each cluster become more sophisticated and nuanced. Using the handout in the exercise files, rate yourself on the leadership competencies affiliated with each area.

When are you leading?

Throughout your day, you’re probably going back and forth between managing and leading. Today, leadership and management are closely intertwined, because almost all people in leadership roles also manage people, and projects or functions. Let’s explore the important distinctions between them. The primary goal of leadership is to produce change and growth. As a leader you envision a better tomorrow, and design the change that will get the organization from here to there. The primary goal of management is to produce order and consistency. As a manager, you create a stable work environment that is clear and consistent, so employees can be as productive as possible.

Management was conceived during the industrial revolution. When factories necessitated organizing the work of large groups of people. Voila, the birth of the modern manager. Needless to say, there’s some natural tensions between being a manager and being a leader.Think about your day to day work over the past two weeks. And identify when you’re managing and when you’re leading. Here’s key distinctions to look for. The first distinction is about approach, managing is tactical and hands on, while leading is strategic and visionary. This is because the time frame is different.

Managing occurs in the here and now, you’re looking at the short term and mid range goals that ensure success of the organization today. Contrast that with leading, where the focus is on the future and setting strategy and change to create the organization of tomorrow. And the focus shifts too, from narrow and internal for managing, to broad and external for leading. Where the scope widens to include other functions, the market, industry, and national and global affairs. As an example lets look at Serena, who is the Vice President of Sales at KinetEco.

The balancing act

Obviously, management and leadership can be at odds with each other, as creating change and growth is not the same as creating stability and consistency. And yet, you have to juggle both skills with style and grace. The challenge that most of us face is that managing can take up so much time that your leading can fall by the wayside. Here are some of my favorite strategies for making this balancing act easier. First, be clear with yourself as to what you’re doing and why. Ask yourself, am I trying to generate change or create more stability? Knowing the distinction will eliminate the problem of applying the wrong skill to the situation.

Second, be clear with those that work with you, as well. It can be confusing to your staff if one minute you’re asking for something that is very immediate and tactical, and then in the next minute you’re doing something strategic and vision-building. For example, when you meet with your employees in one on one meetings, decide when and how often you need to be tactical, strategic, or visionary. Asking about their current projects and deadlines is tactical. Helping them develop their short and long term professional development plans is strategic.

And, of course, you can inspire them by sharing the exciting vision for the departments or the company’s growth over the next five years. You, obviously, wouldn’t do all three in every meeting, or even the same meeting. But you want to keep an eye on the balance of these conversations, as each is related to maximizing your employee’s productivity and potential.Third, be sure that you’re tending to both roles. If you’re like most people, myself included, a lot of time can be taken up with managing people. But the reality is that you need to balance both skills appropriately. Consider structuring your week to set clear time for each. For example, you may want to spend Mondays and Tuesdays focusing on managing, having your one-on-ones, reviewing the status of projects, working on performance reviews or coaching, and so on.

Finding your leadership level

Think about the organization you’re in right now. As you’re aware, the leadership and the responsibilities of the president are very different from the leadership of a front-line staff member. Large organizations often have five levels of leadership, each requiring a differentbalance of the four clusters of skills. Smaller organizations might have a blend of these levels. As we go through these levels, I want you to do two things. First, think about where you are now. Which of these levels describes your current role? And second, which level describes where you aspire to be? By doing this, you can identify your leadership development plan.

At Level 1, you’re an individual contributor who focuses on self-leadership. You’re responsible for producing the work for which you were hired and getting along with others. As an example, let’s follow Serena’s career at KinetEco. She began as an entry level employee at one of the national retail stores. As an individual contributor, Serena’s focus was inward. She developed her reputation for getting things done, being a good team member, and being a pleasure to work with. Because she also wanted to be promoted, she honed her business and industry knowledge and built key relationships within the organization. At Level 2, you’re either an expert or a manager. First, let’s look at the expert, where you become the best at what you do and work on more complex projects.

For example, Serena displayed a talent for showcasing merchandise and she was asked to design the store’s plan for new product rollouts. As an expert, you’d want to further develop your craft, innovating on current projects to demonstrate your readiness to tackle more challenging ones. Second is the manager, which involves leading others. Serena was in fact promoted to store manager. She continued to shine by achieving sales outcomes, developing her staff, navigating the structures of national headquarters and innovating ways to improve her store.

Changing scope and stakes

As you move up the five levels of leadership, three key things shift, scope, stakes, and proportion of management and leadership. First, the scope of the view changes. Individual contributors have the narrowest scope, focusing mainly on their specific tasks, and others with whom they interact. Whereas the leader of the organization has the broadest scope. Not only looking across the whole organization but outside to the industry, market, and other influencing factors such as the economy and global affairs. I don’t know about you but every time I’ve gotten promoted, I’ve become privy to whole new level of knowledge about the complexity of the organization.

And while I may have been previously confused or even critical of decisions, when I moved up I had a new perspective. And I found myself saying, oh, now I get it. This whole moment is the shift in scope and it’s what Transparency is all about. The more you can share the view from your level, the more you can harness the contributions of those below you in the organization. The second thing that shifts is the Stakes get higher. The decisions of individual contributorscan have some impact on the organization. But usually poor work, or poor decisions can be quickly and easily rectified. As you move up, the stakes increase.

The cost or consequences grow with greater fiscal impact, harm to employee engagement and customer satisfaction. And at the top the stakes may include others outside the organizations like board members. Shareholders and even our society as we know it. The third thing that shifts is the proportion of when you’re being tactical versus when you’re being strategic provisionary. You’re obviously doing both at every level, but the proportion changes. Higher levels of leadership demand more vision and strategy. There is also an expectation that your tactical skills have become so honed that they don’t take to much of your time or your energy or your focus.

Organizational dynamics

Let’s turn our attention to the context in which you’re leading and how it shapes some of your choices. One key component is the stage of development your organization is currently moving through. This is part of the life cycle of any organization and each stage is characterized by different goals and needs. See if you can identify the stage your organization is currently in. The first stage is inception. Where a new organization is created from an inspiring idea. This is where you do all the ground work before you can open. Next is the launching phase, where youopen for business. Implementing the dream takes a constant infusion of resources. The organization moves to the growth stage. And the focus is getting on established and profitable. The fourth stage is maturation, where the organization is established, but now seeks to grow in its market.

The next stage is peak performance, where it turns its energy internally to maximize its own development. The goal here is to improve all its functions like talents, systems, and products, in order to be ready for future growth and opportunities. The last stage can either be termination,which happens to organizations that don’t have a way of reinventing themselves. Or the last stage can be rejuvenation, where the organization is nimble and adaptive enough to change as needed to sustain growth. This takes us back to the launching phase. Where new elements such as products or divisions, are launched to drive the next round of the organizations development.

Apple is a great example, it first invented itself with the Macintosh computer. And then it struggled for a bit and came close to termination. Of course, it is now famous for it’s verysuccessful development and we can see the rejuvenation stages were marked by the release of the iPod, then iPhone, and iPad. No matter where your organization is, you should be focused on helping your organization improve it’s performance and move on to the next stage. That’s what makes the concept of leadership so interesting.

Developing Your Leadership Skills

Mapping leadership competencies

As we already discovered, leadership skills fall into four main clusters that together rest on the bedrock of integrity. As you rise in your leadership level, you need to develop each cluster more thoroughly, as the scope and stakes change. While a low to medium level of skill in building relationships might suffice for an individual contributor, level three leaders and above rely on high level of competence to be successful. Let’s delve a little deeper into the competencies that sit within each cluster. See the handout in the exercise files for the complete list. I’ve mapped the clusters to common lists of professional competencies that many organizations use, like Lomenger and DDI. These competencies are often used as the base for their performance assessment and training systems.

First and foremost, remember that your integrity is your most precious asset. You want to tend to your reputation carefully, because you’re through to move into higher levels of leadership, you must become known as a person who’s trustworthy and has integrity. Be sure your words and actions align with your values so that you act ethically. Next, self-awareness is your awareness and management of your inner world. It includes the competences of knowledge of self, accurate self-assessment, self-confidence, emotional self-control, achievement drive, Adaptability, and learning orientation.

Next is building relationships, which is the ability to build positive and effective relationships with direct reports, peers, customers, higher management, and all stakeholders both within and outside the organization. The competencies here are reading people, empathy and compassion, communication skills, developing others, maximizing team performance, managing conflict,appreciating difference, building influence, and service orientation.

Leading with vision and values

How much do you think people trust you? By far and away above any other skill you can cultivate, your most precious asset is actually your integrity. This is why values based leadership is so important. Having integrity means acting and speaking in consistent accordance with your values. There’s no one right set of values, but you do have to be clear about what your set of values are. To be a good leader, you must be grounded in who you are and what matters to you. When you truly know yourself and what you stand for, it’s much easier to make decisions and take action. The right choice in any situation becomes more obvious, when you have a north star to guide you. Having a clear set of values will help you navigate the complex and ever changing world.

Not the least of which is your professional environment. There have been several international studies that have measured what people look for in their leaders. And a consistent finding is that people like working for leaders who do two things. One, they lead from their values, and two, they share an inspiring vision for the future. These two things are clearly connected. If you’re grounded in your values, you can build a culture of trust and transparency. And simultaneously, your values will compel you toward a future that is meaningful. You just have to articulate your values and your vision for others to see. This is also true for an organization.

Having a clearly articulated set of values and a vision for the future both contribute to a healthy and positive culture. But it can’t just be lip service. Do you know what happens when the seniormanagement’s behavior is inconsistent with the core values? It creates mistrust, cynicism and low performance among the employees. And the reverse is also true. When leaders walk their talk, employees see them as credible and trustworthy. Which drives higher levels of morale,engagement, and productivity. So the first step to leading the vision of values is to get clear about what your core values are.

Cultivating emotional intelligence

Emotional intelligence is the mother skill of effective leadership and should be your first priority. Emotional intelligence is essentially how smart you are about reading and working with emotions, both your own and those of others. The key to developing emotional intelligence is understanding that humans are complex beings driven by a variety of physical and emotional factors. Period. Organizations always succeed or fail based on how well they address the human factor. There are two primary components to emotional intelligence. The first component is self-awareness. This means being aware of when you’re having a physical or emotional reaction to something, exercising emotional self control and finding health ways to navigate challenging situations.

Let’s see what self-awareness looks like with Serena, who’s about to be surprised by an announcement that will dramatically affect her team. >> The sales team has seen tremendous growth, the the promoting of feature of the R3000. Our customers are responding positively.Investment in implementing and training the new sales process, has been a lot of work. But we’re really reaping the benefits, and I believe our sales team is going to exceed fourth quarter projections. >> Thank you, Serena. That brings me to some news I need to share with the entire team. The executive team has decided to shift company focus, and to start promoting our new t line of products.

Production on the t100 is ahead of schedule. We’re going to move the release data up by six weeks. And what this means is that we’re going to begin a phases out of production on all the R model products and that we’re going to need to start promoting the new product lineup. >> Wow, this is a dramatic change. My team is going to need at least two months to make the shift. We need to push this back. >> That’s not going to happen, okay? You just need to make it work. >> Anything else? >> No. I just need the process this.

Motivating and engaging others

Effective leaders motivate and engage all of the people who are connected to the organization. This not only includes the employees at every level, from front line to the executives, but also the customers and other stakeholders like investors and board members. Let’s first look at motivation. Research in psychology and human potential show us that humans are motivated by three driving forces. In ranking order, these are first, the need for physical survival and safety.This includes the most basic necessities, from air, food, and water, to our more modern versions of being able to buy a home, afford healthcare, and have job security. When this level is tended to, we can focus more energy on the next level, which is, the need to belong.

This includes the social needs of having friends, family and loved ones, and being able to spend quality time with them. In addition, this level includes our sense of achievement and competence in professional settings. When this level is tended to, we can focus on the highest level, which is the need to achieve our full potential. Humans are drawn to becoming the best they can be. This not only includes personal excellence but also expressing and appreciating creativity, as well as making a difference in the lives of others. In fact, research has shown that when the other levels are met, humans are most motivated by having autonomy, developingmastery, and contributing to a meaningful purpose.

Organizations are also most successful when their people can be focused on the top level, achieving their full potential. This not only unleashes the highest levels of their skills and intelligence, but also supports an ever growing and improving workforce, because we’re innately drawn towards self-improvement. Now let’s look at engagement. Engagement is the level of positive attachment employees feel toward their job and organization, which serves as aprofound motivator for productivity and growth. Interestingly, research has shown that the ten causes of employee disengagement are: Feeling invisible. Our efforts are not measured orrecognized. The work you do seems irrelevant.

Developing your team

One of the ways to motivate and engage your people is to focus on their professional development. This is much more than the annual performance review. This is an ongoing process that supports the growth and development of your people in all the competencies.Affiliated with self awareness, building relationships, business acumen and organizational strategy. To effectively cultivate another person’s potential, you must get to know him or her on a deeper and more holistic level. Particularly you must discover six core components of each person. In the exercise files, I’ve shared some questions to guide this exploration. Number one, what are your employees strengths and weaknesses in the four areas? Knowing this will help you identify specific opportunities to harness their strengths and develop weaknesses.

Let’s say your employee has a weakness with financial planning. Knowing that this could harm his potential for future promotions, you could arrange for him to take some classes. As well as be mentored by someone with more skill in financial planning. Number two, what are the factors that motivate and engage your employees. Knowing these factors will help you makeaccurate choices when offering opportunities and challenges. Number three, what is their learning style? You’ll need to tap into their preferred learning style to help them grow, so bothof you should know how best the person learns.

For example, some people learn best by thinking things through alone and other learn best by talking things through with others. Some people thrive through reading, others want online learning, and others enjoy experiential learning. Number four, how well do they manage theirtriggers? The reality is that every person’s trigger eventually show up in the workplace. So it’s helpful to have an open and honest discussion about it. They need to manage their triggers tolevel that their reaciton doesn’t negatively impact the workplace. Let’s say that one of your people becomes very defensive when receiving any form of critique. This harms many of her relationships, so one thing you could do would be to arrange for her to work with a career coach.

Increasing team performance

In today’s organizations, more and more work is being done in teams. A team is different from a group of individuals who may form a department or cross functional group. Specifically, to be a team, the group must have the following four qualities. Number 1, a common purpose. This would be the clear goal they are to achieve. Number 2, their efforts must be inter-dependent.Otherwise, it’s just coordinate efforts of individual contributors, and that’s not a team. Number 3, they must share accountability. Everyone is held responsible for the group’s success or failure. And number 4, the members must believe that the outcome will be better together than working alone. When done right, the benefits of teams are compelling. Research shows, that when teams work effectively, they can solve more complex problems, make better decisions, be more productive and creative, and build more skills, than when individuals work alone.

But creating a team, is not just putting folks together to work on a project. To reap the benefits of teams, the group must be set up for success and facilitate it to achieve maximum performance. This is where you come in. There are several strategies effective leaders use to increase team performance. Managing a high-performing team takes effort so plan to spend time and energy on implementing these tactics. This will also help you address the mostcommon reasons teams fail, which are: Unclear purpose or goals.

Lack of a clear plan or commitment to the plan. Inability to deal with conflict. Lack of shared accountability for results. Insufficient resources. And a lack of trust. The first thing you want to do is set your team up for success by helping them create team guidelines or a playbook, if you will, for the team’s efforts. I’ve included a handout in the exercise files for you to utilize. The first meeting you have with the team will be the longest, as you co-create the document. You’ll facilitate this discussion and together the team should understand and agree on the goal that the team is to accomplish by when. You’ll want to be sure that everyone is clear about the purpose, scope, and quality and other important aspects of the goal. If your team is comprised of members from different functions or who have not worked together in the past have them discuss their work preferences. Things like their work styles, expectations, challenges, and pet peeves are a good place to start.

Facilitating change

No matter what industry you’re in, you’re dealing with change. If for no other reason than the fact that technology is changing so fast. Some industries are built on change, and are in fact about getting others to change. Like fashion for example. They sell change for every season. Change happens all the time, but the impact of change can be either positive or negative. Did you know that 70% of change initiatives fail? Think about that. This statistic represents a huge loss of time, energy, and money. and this failure is due mainly to poor leadership, because the change process was not correctly facilitated, dooming the initiative and possibly the organization. This is because people focus mainly on the change, and they forget to address the transition.

Let’s take a common example. Serena is promoted to a new position, regional director. Change is the structural shift that occurs, like the new job description, placement on the org chart, and the moving of her belongings to a new office. It’s factual and unemotional. Transition on the other hand, is the psychological process that involves the human thoughts and feelings that accompany any change. In this case, Serena may be thrilled for this opportunity, but feels some sadness at leaving her team. Other people may also have reactions such as happiness for Serena or even worry about what this change might mean for them. And this is what facilitating change is all about, Tending to the psychological process of transition.

Research has shown again and again, that humans have a fairly predictable pattern when it comes to change. In fact, it’s called the change curve and it looks like a roller coaster. While there might be excitement, there’s an initial and sometimes dramatic drop in productivity and morale. Effective leaders can impact the change curve, by making the hills less dramatic and shortening the length of time the process takes. All of this can result in huge savings in all key measures of performance and productivity. The three key strategies I want to give you today are these. Number one, empower people in the change process. This means that instead of pushing people to change which triggers resistance, you genuinely involve them in designing and implementing the change. Bring the people who will experience the change into the decision making process early, and have them co-create the change.

Developing political acumen

Another key leadership skill is developing political acumen. This is not about being political or being a master manipulator. Acumen means accuracy and keenness of judgement or insight, so political acumen is the ability to accurately perceive and judge the formal and informal influences that shape decision making. It’s about correctly reading your contexts and being able to make sound decisions based on what is really going on. Every organization has a level of subtext, the undercurrent of things that are happening behind or underneath the daily machinations of the organization. Transparent organizations have a higher match between what is said and what is done, while others are a complex web of invisible factors.

No matter your context, your effectiveness as a leader will be enhanced by developing your political acumen. You can do this by looking at the two P’s. Power and priorities. First, you want to identify who has power in the organization. Power comes in many forms. As I go through them, think about who in your organization holds the following kinds of power. There can be overlaps between them. The first three have to do with the kind of position you hold. Number one is legitimate power, which is based on a person holding a formal position. Others comply because they accept the legitimacy of the position of the power holder.

Examples include elected officials, CEO’s, university presidents, etc. Number two is reward power, which based on a person’s ability to offer rewards. Others comply because they want the rewards the power holder can offer. These are obviously things like promotions and raises but could also include more subtle things like faster service, better seating assignments, or even extra servings. Number three is coercive power, which is based on a person’s ability to punish. Others comply because they fear punishment. Again, this could be things like demotions and pay cuts but could also include things like speeding tickets and public humiliation or shame. The last two have to do with the individual person in particular. Number four is referent power.

Scanning your environment and industry

As we have discussed, the quality of your decisions and the effectiveness of your leadership depends on how well you read your context. This includes knowing what is happening in your organization and industry. No matter what level of leader you are, using the following tips will help you stay informed of the current happenings within your organization. Number one, frequently review all of the organization’s publicity materials like the website and press releases. Organizations are complex and communication doesn’t always flow efficiently. You’ll be surprised how much you learn about your organization by seeing what it says about itself to the public. Number two, also review the internal communication often housed in the employee portal.

You can gain a lot of information by seeing what positions are hiring, changes on organizational charts, and formation of new policies and procedures. Number three, listen in meetings for comments about pressures, challenges, and opportunities that shape the actions of the organization. Number four, engaging discussions with higher management, peers, and employees about current and future developments. Remember your goal is to gain a broad andan accurate picture of your organization. So take a step back to see what the information might mean, by looking at the broader scope and the longer term.

You’ll identify issues that may be driving subtle changes in the organization. Since leadership is inherently future focused you must always keep an eye to where things are headed. And scan for potential roadblocks and opportunities on the path ahead. Let’s see how Serena stays ahead of the curve as her organization and industry change. As you recall she’s the Vice President of sales for Kinetico, a level four leader. Serena stays up on her industry by joining all of the major organizations affiliated with her field. She knows that the magazines, conferences, and industry blogs will keep her up to date on current trends, thought leaders and influential forces. She also periodically reviews the academic journals affiliated with business, psychology, global studies and communication. She knows that research findings can be a good source of new information that might guide future trends in sales.

Building key relationships

As we’ve seen throughout this course, a large part of any leader’s success is a function of the relationships they build with employees, peers, and upper management, as well as customers, board members, investors, and leaders in the industry. The relationships you need to build arerelated to your leadership level, but I always think it’s a good idea to build the relationships of one level above you. This will allow you to expand your professional network, which not only serves your current level but prepares you for the next one. Ultimately, the goal is to be arelationship builder who can synthesize connections and maximize collaborative environments. You want to build relationships with other influential people. Some of the strategies you learn for developing your political acumen and understanding your industry should help you generate a list for people. Don’t expect to reach out to them all at once, but you should have an active and ongoing plan for identifying and building key relationships. The order and pace at which you tackle your list will largely be determined by your context and your preferences.

Recent research in neurobiology and psychology have shown that our relationships with others largely reflects how we approach them. Humans have something called mirror neurons, and outside of our conscious control, we tend to read and mirror the emotions of others. This means that how you approach others will largely shape how they respond to you. If you are open, positive and warm, they will likely meet you there. Let’s look at some key strategies forbuilding authentic relationships. First, remember that building relationships takes time. You should establish rapport over several interactions, not just rushing in when you need something.

Demonstrate that you’re open and trustworthy, as you do so trust can grow, allowing the relationship to deepen. Second, all people want to be seen and heard. So enter each interaction with genuine care and interest for the other person. Demonstrate your interest with openposture and eye contact, knowing that if you’re rushed or distracted it will short change your opportunity to connect. Over time, you’ll want to learn more about the whole person, their professional interests certainly, but also their values, goals, and passions including those outside of work.

Creating a culture of trust and integrity

While we’ve been focusing in this course on how to be a successful leader, it is also the role of leaders to build and maintain a great culture in the organization. An organization’s culture becomes the diving force that shapes the attitudes and behaviors of everyone in the organization. And it’s the most effective way to improve productivity, engagement, and other key measures of success. A leader’s efforts are most effective when they can spend or focus and energy on creating the culture, because they can create more widespread change than working with one department at a time. When you have a great culture, you can retain your best people, and you attract other top talent who want to work there. Productivity soars, because people aremotivated and engaged. Employees are loyal and take great pride in the organization and the work they do, thus driving innovation and effort.

The term great is somewhat subjective. What is great in a fast-growing tech company with a high percentage of young employees, may be different from what is great for a national nonprofit that fights for social justice, or a long-standing financial institution. Each industry region and organization has its own vibe, and people usually seek out the culture that matches their needs. But research has shown we can measure how people feel about where they work.Studies done on thousands of organizations in a wide range of industries, shows us that great cultures have four key factors in common.

Number one, there is a high level of trust between employees and management. Number two, people have pride in what they do, either their specific task or the meaningful purpose that the organization serves. Number three, they genuinely like and enjoy their colleagues. And number four, everyone is encouraged to learn and develop, individually and collectively. Certainly, a leader who practices the leadership skills I’ve outlined in this course will contribute to a great culture, but this effect could be limited to just that leader’s team or department.

Practicing sustainability

As you can see from this course, being an effective leader takes a lot of intentional focus, time and energy. You have to be constantly reading and responding to the people and environment around you, and making good choices. In order to be at your best, you must engage in a consistent practice of self care. That is what Sustainability is all about, keeping yourself in good shape so that you can meet and respond to the daily challenges over the long haul. We all know about the idea of self-care, but for many, it’s the first thing to go out the door when things get busy or stressful. But effective leaders know that the busy and stressful times are when you should double down on self-care.

This is the primary strategy of sustainability. Keeping yourself physically and emotionally strong so that you not only avoid burnout but can actually perform at your peak level. None of the key practices will surprise you but I want to be sure that you see how they are related to your leadership skills. Number one, Exercise. Yeah, yeah, I know, we all know about exercise but it’s related to effective leadership in the following ways. It’s one of the primary tools we have for managing our emotions and triggers. A key component of our emotional intelligence and it has the added benefit of raising serotonins in your brain which improve mood even under trying times.

Finally, exercise gives you physical strength and endurance, which makes your body more able to deal with stress and resist illness. Even 20 minutes a day can make a big difference, so make it a consistent part of your week. Number two, Nutrition. No surprise here, either, but how it relates to leadership is two fold. First, it helps to keep your immune system strong so that you can fight stress. Our thoughts are actually the biochemical process of our neurons connecting, and a nutritious diet promotes this process. Number three, Meditative activities.

Developing resilience

Resilience is the ability to recover quickly from adversity, and clearly this is a skill that all leaders need. People who are resilient not only perform competently under stress, but they recover quickly from negative circumstances, and they use those experiences to grow, becoming more resilient in the future. Throughout your career, you need to not only bounce back from challenges yourself, but help your people and your organization do so as well. Resilience is related to adaptability and agility, both key factors in successful organizations. It turns out that resilience is actually a two phase process. The first phase is self protective.

With the person assessing and reducing potential sources of adversity. For leaders, this would include much of what we’ve covered in this course. Using your emotional intelligence, developing key relationships, scanning your industry, and facilitating the change process are always to reduce sources of adversity. The second phase focus on promoting well being to effectively bounce back from the effects of adversity when it does happen. Interestingly, many of these strategies are also related to positive psychology, and all that we now know about how to increase happiness.

So implementing these strategies will get you a double bonus. The first strategy is practicing sustainability through the forms of self-care we covered in the last video. There’s just no getting around taking care of yourself. The second strategy is spending time with your supportive social network. This would be the friends, family, and colleagues who are outside your organization.Now it’s not just having trusted friends and family. But that you turn to them when under stress.And they offer encouragement, love, and support. One of the mistakes busy leaders make is that they pull back from their social engagements to put all their energy into work.

Conclusion

Working with ineffective leaders

It’s inevitable that as you learn more about effective leadership practices you’ll notice who uses good leadership practices and who does not. The challenging news is that it can be frustrating to watch others violate the principles and practices of good leadership. This is especially difficult when the person is your supervisor. The head of your function or the leader of the organization. If this is your situation, know that you’ll need to be artful about how you navigate these relationships. Drawing on every ounce of your emotional intelligence. Often you’ll be teaching by example, and your best efforts may not be seen or appreciated for how great they truly are. If you have good relationship in place, you may be able to offer suggestions andinsights about the choices you’re making and why.

Your attitude and approach is very important here. If you sound like you’re judging the person or trying to teach him or her a lesson, you’ll trigger defensiveness. You want to genuinely share the reasons for your approach and the benefits you’ve seen. If they seem open you can share this course and other leadership development resources. Also, if you have a training anddevelopment department in your company, you could recommend this course to them. Some people are more receptive when something is endorsed by human resources. As you know, the business skills segment of lynda.com.

Has a large selection of courses that can help build professional development for every leadership level. But the reality is that people have to be willing to change in order to do so. I’ve personally witnessed well-established leaders and people who are nearing retirement change make giant shifts in their attitudes and behaviors. Change can happen at any time, but it onlyoccurs when the person is motivated to do so. So, lead the horse to water, show them how great the water is, take some sips yourself, and then let go. The rest is up to them. And there is good news. By using these sound leadership practices your performance will speak for itself. Sometimes organizations take a while to catch on. But inevitably the organization will need to grow and approve, and that is the time they’ll seek out peak performers and best practices. So be ready when they call.

Next steps

Phew, we’ve covered a lot in this course. This was truly an overview, but it gives you a lay of the leadership land. It’s impossible to tackle all of these right away, so go back and review which one to two areas you should focus on first. In the exercise files, I have a list of recommended resources, so you can further enhance your learning. Once you identify your first area or two, make a four to six week plan to focus on that skill and actively engage in changing your behaviors and habits. The timing of four to six weeks is intentional, because of all the researchon habits. It will take you that long to groove the behavioral and neurological pathways of the new habits you want to create.

And take stock of how things are working. Assess what is improving and what needs more attention. My recommendations can get you started, but you’ll need to tweak as you go, to suit your personality, organization, and industry. Other actions you can take include. Number one, take advantage of leadership development programs in your area. If your company has a learning and development component, you should find some good offerings to enroll in there. In addition, local colleges and universities, and non-profit centers will offer programs. And there are many national training organizations that host courses in which you can enroll. Number two, form a leadership development group with co-workers or friends. Choose a book or a course on lynda.com and commit to reading or watching it. Then come together to discuss the key points and support each other in implementing the changes.

Number three, create a masterminds group with your professional peers. You can focus locally and meet in person every few weeks, or you can connect with colleagues outside your area through video meetings. The goal can simply be to share your challenges and successes, and support each other with suggestions and encouragement for improving your leadership. You may also be able to network and create mutually beneficial opportunities. My only word of caution is to not bite off too much. It is better to focus your attention on one area at a time, and build the daily practices and habits that will shift your effectiveness.

Finance Essentials for Small Business

About the Instructors

Jim Stice is a professor of accounting at BYU. He teaches employees of multinational corporations about business accounting.

James D. Stice, PhD, is the Distinguished Teaching Professor of Accounting in the School of Accountancy at BYU. Professor Stice has been at BYU since 1988. He has co-authored three accounting textbooks and published numerous professional and academic articles. In addition, Professor Stice has been involved in executive education for Ernst & Young, Bank of America Corporation, International Business Machines Corporation, RSM McGladrey, and AngloGold Limited and has taught at INSEAD (in both France and Singapore) and CEIBS (in China). He has been recognized for teaching excellence by his department, his college, and the university. Professor Stice currently serves on the board of directors of Nutraceutical International Corporation.

Professor Jim Stice received a PhD from the University of Washington as well as master’s and bachelor’s degrees from BYU, all in accounting.

Earl Kay Stice is the PricewaterhouseCoopers Professor of Accounting at the Marriott School of Management at BYU.

He has been on the full-time faculty at Rice University, the University of Arizona, and the Hong Kong University of Science and Technology (HKUST). He has also been an Executive MBA lecturer at HKUST, SKOLKOVO (Moscow School of Management), China Europe International Business School (CEIBS), the University of Illinois (US), and INSEAD (Singapore and Paris). Professor Kay Stice has received awards for high-quality teaching at Arizona, Rice, and Brigham Young University, and he was twice selected as one of the top ten lecturers at HKUST.

Professor Stice has been engaged in executive training and corporate training in the United States, Hong Kong, China, Russia, Malaysia, and South Africa. He has also been an expert witness in major cases involving compensation for losses and tax disputes.

Professor Stice received his bachelor’s and master’s degrees in accounting from Brigham Young University and completed his PhD at Cornell University (US).

Introduction

Welcome

– Hi, I’m Jim Stice. I’m a professor of accounting at Brigham Young University. This is by brother, Kay. – I’m also a professor of accounting at Brigham Young University. – As accounting professors we teach financial analysis, cash flow projections, product costing, and cash management. – All of these topics are important to the management of a small business. In fact, all of them highlight ways in which small business owners put their businesses at risk. – In this course we will explore five characteristics of small businesses that make them more likely to fail.– [Kay] Those five characteristics are insufficient capital, poor cash management, poor record keeping and controls, improper product pricing, and uncontrolled growth.

– Now, before taking this Financial Essentials for Small Business course, you might considertaking our Accounting Fundamentals, our Finance Fundamentals, or our Income Tax Fundamentals courses. Among other things, those courses provide a more comprehensive overview of business in general. – With that said, we have designed this Financial Essentials for Small Business course to be self-contained, and we carefully explain any terminology that we use. – In short, this is an introductory course with no prior knowledge necessary. – The fact is that the vast majority of small businesses fail.

– And with those business failures go the life savings and the dreams of the person who started the business. Join us to learn about the five characteristics to avoid in order to increase the likelihood that your small business will succeed.

Overview:  Finance Essentials for Small Business

All businesses start small

– All businesses start small. – Here are some examples with which you may be familiar. – Apple was started in 1976 by two friends, Steve Jobs and Steve Wozniak, working at least part of the time in the garage of Steve Jobs’ parent’s home in Los Altos, California. – Apple’s first financing arrangement came when Steve Jobs convinced an electronic parts supplier to give him parts on credit, agreeing that he would pay for the parts when he and Steve Wozniak sold the first batchof completed computers, the Apple 1. – Well in 1981 Microsoft was a 32 person softwarecompany that had recently moved to Bellevue, Washington from its original headquarters in Albuquerque, New Mexico.

That company had been started in 1975 by two friends, Bill Gates and Paul Allen. – When IBM released its influential IBM PC in 1981, IBM chose not to develop the operating system itself,but instead outsourced this task to that small company Microsoft. – The rest, as they say, is history. Microsoft has leveraged its position as the primary provider of operating systems for personal computers, to become one of the most influential companies of our time. – Exxon Mobil was created through the entrepreneurial energy of one person, John D. Rockefeller, in Cleveland, clear back in 1862.

– This small oil company started by Rockefeller with just $4,000 of his personal savings eventually got so big that the US Federal Government decided it was a monopoly, and broke it into several pieces. Both Exxon Mobil and Chevron are remnants of the original Standard Oil Company started by Rockefeller. – Walmart was also started through the energy of one person, Sam Walton. After World War II, Sam borrowed $20,000 from his father-in-law and bought avariety store in Newport, Arkansas.

By 1962 Sam Walton had built a chain of 16 variety stores. – Sam had become convinced that there were big opportunities in opening discount retail locations in the smaller US towns and cities that were being overlooked by the traditional retailers such as Sears. Walton pitched his idea to a couple of retail chains, but he couldn’t generate any interest. – He finally had to fund the startup of his first discount store with his own money, putting up 95 percent of the financing, with another three percent coming from his skeptical brother Bud, and two percent from the person he hired to manage the store.

The first Walmart location opened its doors on July 2nd, 1962. – Now, let’s keep in mind that a business doesn’t have to become large and famous to be a success. Solid small and medium size businesses are the foundation of communities. – But however you define success, for each success story there are hundreds of small businesses that die before they ever really get going.– The most common reason for a small business to fail is that the underlying product or servicejust doesn’t satisfy a market need.

In other words, customers don’t want the product or service. – But small businesses are also often killed because of predictable and preventable business mistakes, insufficient capital, poor cash management, poor record keeping and controls, improper product pricing, and uncontrolled growth. – Let’s learn about the factors that frequently kill small businesses.

Introduction to starting small

– You have a great idea. You have a product or service for which the world has been waiting.You’ve scraped together enough cash to get your idea off the ground. You have a location.You’ve done your advertising. You just know this is going to work. And six months later you’re out of business. Statistics from the Small Business Administration indicate that about half of new businesses fail in the first five years. Many new businesses fail and the reasons are many and varied. In this course we’re going to address some of the primary financial reasons that new businesses don’t make it.

There are, of course, many non-financial reasons that new businesses struggle. Poor marketing, poor location, poor product quality. We’re going to limit this course to the financial reasons for business failure. If you get everything right but the financial side of things, your business is going to struggle. Of course, if you get the financial side of things right and drop the ball with the non-financial aspects of the new business, you’ll struggle as well. With this course we’ll stick with the financial aspects of struggling new businesses because that’s what we know a little something about.

We have identified five common reasons that new businesses that struggle seem to face. Of course, this is not an exhaustive list, but these five reasons seem to consistently pop up when it comes to new businesses that struggle. Those five reasons are insufficient capital, poor cash management, poor record keeping and controls, improper product pricing, and uncontrolled growth. Before we get started, let me first say that several of these reasons for struggling are interrelated.

Uncontrolled growth can relate to poor cash management. Poor cash management can relate to poor record keeping, and so on. While these topics can be interrelated, we will address each one separately and then comment on the interrelationships when they are apparent. So let’s get started.

Insufficient Capital

Capital to start a trucking business

– Even as we speak, a friend of ours is getting into the long distance trucking business. – He owns a truck and he contracts with a driver to drive the truck for him. – He finds his customers in companies that want to ship goods long distances, but don’t have a big enough need to hire one of the large trucking companies. – Our friend says that the most difficult part of his business is finding the right customers who want their goods shipped to the right place and are willing to pay the right price. – So the scheduling and contract negotiation functions of his business are very interesting, but those are topics for another day.

– Yeah. Let’s talk about the financing for this small business. – Our friend originally thought that he could get into his trucking business with $35,000. He would use this money to buy a used tractor, the front end of the truck, the part where the driver sits. – But then he learned that used trucks that he could buy for $35,000 wouldn’t be compliant with California emissions standards.So the set of potential shipping jobs that he could get staying out of California would be dramatically limited. – That meant buying a newer truck for $52,000. So our friend had to secure even more startup financing.

– But wait, he wasn’t finished. He also needed to buy a trailer, another $10,000 as well as tarps, straps, and chains for another $2,500. – So in total our friend needed $64,500 to get going.Fortunately for him he had access to that much capital. – But if his original supply of capital had been limited to, say, $50,000, the entire business venture would have died right there because of a lack of financing. – Would-be small business owners often don’t think through all the costsof getting their business started.

– As a result, many small businesses with good ideas die because of an insufficient initial capital.

Insufficient capital

– Let’s begin with the money needed to start a business. Too many new businesses start their business without enough capital. They just don’t have enough money in the bank to support them while their cash flows get up to speed. It turns out that the rent has to be paid, the utilities have to be paid, equipment may need to be purchased or rented, the employees have to be paid, inventory has to be purchased. All of your expenses have to be paid, while you’re waiting for potential customers, first to find you, and then second to pay you.

There’s often a lag between when you get paid for provided a good or a service, and when you have to pay your vendors. And generally, that lag is not in your favor. Also, when starting a business, it takes time for your customers to find you, and for you to get your sales and marketing efforts up to full speed. During that time, your expenses will continue to need to be paid. It would be nice if all customers would pay immediately. It would also be nice if vendors would wait to be paid until you are paid.

Yeah, that would be nice. Many businesses are forced to close before they are able to find out if their business model has a chance to demonstrate that it’s sound. They just run out of money! I found when working with small businesses that owners have two tendencies. First, they overestimate their cash inflows, and second, they underestimate their cash outflows. When starting a business, realize that it will take time for cash inflows to start flowing. But the cash outflows start flowing immediately.

Make sure that you have access to sufficient capital to allow your new business venture enough time to succeed. Consider a simple example. I have dreamed my entire life of opening up a small restaurant. I’m a good cook! Many have suggested that I have a talent for cooking. I enjoy interacting with people. Why not give it a go? I found a location. That costs money. I’ve rented equipment. That costs money. I’ve hired employees.

Poor Cash Management

Managing cash on the beach

– I have a friend who’s a small business owner. Let’s talk about his cash flow management practices. I will disguise the actual nature of his business to preserve his privacy. – So, what is the nature of his cash flow management issues? – He operates, let’s say, a beach side shop in a vacation beach area. He sells food, souvenirs, and some groceries. He also rents jet skis and scooters. – Well I’ll bet his business is very seasonal. High business in the late spring and summer and almost no business in the winter. – Exactly.

He tells me that he maintains a rolling 30 day cash flow projection. He forecasts how much cash he will collect from customers, and how much cash he will have to pay the suppliers for each day for the next 30 days. – So, has he ever had a big crisis that threatened his survival? – Yes, a few years ago. It was rumored that one of the big cruise lines would begin using his harbor as a stopping point. Of course this would dramatically increase customer traffic. – Well I’ll bet a lot of new competitors materialized. – Exactly, my friend said that new business owners came in, built or rented large store locations, filled them up with inventory and purchased large collections of scooters and jet skis.

A lot of money was invested in the area. – So what happened? – Well the rumors turned out to be completely false. No cruise lines came to the harbor. – Ah, I can imagine the problems.Without sizable cash inflow from cruise line passengers, these new competitors wouldn’t be able to maintain their cash payments for rent, inventory, wages and so forth. So, how’d your friend do? – He did great. Throughout the excitement he just calmly proceeded with his normal business practice of constantly balancing his expected cash collections and expected cash payments for the next 30 days.

Because he carefully monitored his cash flow, he was able to safely ride out the bubble and the subsequent crash. – So, how’d he do after the crash? – He actually made quite a bit of money,buying up the scooters and store inventory from his bankrupt competitors. The competitors who had not carefully planned and balanced their cash flows.

Cash flows

– We know you’ll need sufficient capital to get your new business through the critical first few months. Let’s assume you’ve made it through those first few months. You will still need to track your cash inflows and outflows to ensure that you have sufficient cash to pay the bills that are surely coming. Whether you are at the start of your business or well into the lifecycle of your business, managing cash is critical for the wellbeing of your business. Cash management does not happen by chance. It is up to you to ensure that your cash is managed. We will do this by preparing a cash forecast or budget.

Let’s start our discussion of cash management by distinguishing between two types of costs,fixed costs and variable costs. Fixed costs are exactly that, they’re fixed. Budgeting for fixed costs is relatively straightforward. The amount is fixed, at least over the short term. Variable costs are costs that vary relative to some activity or cost driver. For a restaurant, for example,costs might vary based on the number of customers. For a shop at the mall, costs may varybased on the number of hours that the shop is open, labor costs, utility costs, and so forth.

Now there can be a number of cost drivers, or in other words, costs can vary for a number of reasons. It just depends on how complicated you want to get. For our example, we will assume one driver that results in variable costs just to keep things simple. Adding more drivers makes the arithmetic a little more complex, but the concept is still the same. Now step one in cash management is to identify all of your fixed and all of your variable costs. All of those costs.

It’s easy to forget an expense here or an expense there, and before you know it, your cash forecasts are useless. The cash forecast is only as good as the inputs. Now let’s go into the fast food restaurant business. What costs associated with this business will be fixed and which will be variable? Before I can nail down the variable costs, I need to ask this question, variable relative to what? I’m going to assume that certain costs vary based on the number of customers. For a given month my fixed costs will involve rent on the building, rent on my equipment or loan payments if I’m purchasing the equipment, utilities, insurance, and advertising.

Estimating the number of customers

– Answering the question how many customers can we expect is the hard part, please don’t gloss over this question. Your business will fail or succeed based on the answer to this question.How many customers can you realistically expect? In our restaurant business we need to knowhow many customers to expect every shift, so we will hire more or less people depending on expected customer demand. We will need more or less food based on customer demand. Many costs will vary based on anticipated customer demand. Answering this big question is beyond the scope of this video, but it would involve such things as scoping out your competitor’s volume of business, assessing expected population growth in your area, surveying potential customers, and a whole host of things.

Your forecast of sales will be critical in helping to prepare your forecast of cash inflows and outflows. To our example, I’ve done a very careful analysis and determined that I can expect 5,000 customers per month, or about 167 customers per day. Implicit in this 5,000 customer number is a selling price that number will impact customer traffic. In developing this sales forecast I have assumed that each customer will spend on average $8 per visit.

We will do some sensitivity analysis with these numbers to determine what might happen to our profits if more or fewer customers show up. Now that we have a reliable forecast of our cost driver, at least as reliable as possible, we can now compute our variable costs. Please note that as our business grows and matures we will be able to determine a much more reliable estimate on the number of customers we can expect. For our fast food restaurant business we will assume that I have three types of costs that vary depending on the number of customers,food, packaging and labor, the more customers the more food of course, the more workers, and the more cups and napkins and such.

Of course, there will be more costs but hopefully you get the idea. Based on my forecast of the number of the customers I can expect, I anticipate the following variable costs for a month,food costs of $12,000, packaging costs of $2,500, and labor costs of $6,500, for a total forecasted variable cost of $21,000 for the month. Now, with variable costs of $21,000, and the number of customers expected to be 5,000, we can determine that our variable costs are $4.20 per customer.

Cash flow example

– Let’s tie this together in one example. Let’s suppose that I forecast customer demand for myfast food restaurant over the next three months to be, in month one 4,000 customers, in month two 4,500 customers, and in month three 5,000 customers. Let’s also assume that I have $10,000 in the bank right now. I also estimate my fixed costs to be $16,000 per month, and my average selling price and estimated variable costs to be as follows, I estimate my average selling price to be $7 per customer in month one, $7.50 per customer in month two, and $8 per customer in month three.

The reason for the lower selling price in month one is to entice customers to come in and give my business a try. As word gets out and my business earns its reputation, I forecast being able to increase the average selling price per customer. I also estimate that my variable costs will be$4.30 per customer for the first two months, and increase to $4.40 per customer in the third month. Now you can start to see how my cash will begin to flow, both into the business and out of the business. We are going to assume that all bills are paid in the month they are due, and that customers will pay me in cash.

We can certainly relax these assumptions, but let’s keep it simple to get started. Now my next step is to forecast my cash flows for this three month period. I do that by beginning with my cash on hand at the start, add to that my expected cash inflows from customers, and subtract my cash out flows for my fixed and variable costs. The result is the cash budget that you see here. Well, where did these numbers come from? Let’s look at the first month as an example. I forecast 4,000 customers at $7 per customer that results in a forecasted cash inflow of $28,000 for the first month.

The $17,200 comes from the variable costs of $4.30 per customer times 4,000 customers. The $16,000 represents my forecasted fixed costs for the month. I then did the same thing for subsequent months. Now, what’s the first thing you noticed? I sure am glad I had $10,000 to start. This gets back to having sufficient capital to start your business. Next, my cash outflows exceed my cash inflows for the first two months of my business.

Poor Record Keeping and Controls

Hiring a bookkeeper

– We have always loved reading the James Herriot stories. – Yes, we have. For those of you who’ve never read them, the James Herriot stories are first person accounts of the life of a country veterinarian in the hills of Yorkshire in England. – James and his volatile but charming partner Siegfried run the veterinary practice in a pretty loose fashion. They take good care of their clients, the animals, but their bookkeeping and cash management practices are horrible. – The following is extracted from James Herriot’s account of Siegfried’s efforts to hire the business’ first bookkeeper This comes from the book, “All Creatures Great and Small.” – Miss Harbottle, the prospective bookkeeper, came into the business office and “paused at the desk,“which was heaped high with incoming and outgoing bills “with here and there are stray boxes“of pills and tubes of cow udder ointment.” – “Stirring distastefully among the mess, “she extracted the dog-eared old ledger “and held it up between finger and thumb.

“‘What is this?'” – “Siegfried trotted forward, ‘Oh, that’s our ledger. “‘We enter the visits into it from our day book, “which is here somewhere.’ “He scrabbled about on the desk. “‘Ah, here it is.“‘This is where we write the calls as they come in.'” – “She studied the two books for a few minutes “with an expression of amazement “that gave way to grim humor. “She straightened up slowly and spoke patiently, “‘And where may I ask is your cash box?'” – “‘Well, we just stuff it in there, you know.'” “Siegfried pointed to the pint pot “on the corner of the mantlepiece.

“‘Haven’t got what you’d call a proper cash box, “‘but this does the job all right.'” – “Miss Harbottle looked at the pot with horror. “Crumpled checks and notes peeped over the brim at her. “Many of their companions “had burst out onto the hearth below. “‘And you mean to say that you go out “‘and leave the money here day after day?'” – “‘Never seems to come to any harm,'” Siegfried replied. – “‘And how about your petty cash?'” – “Siegfried gave an uneasy giggle. “‘All in there, you know, all cash, petty and otherwise.'” – Situations similar to the one described here are not unusual for small businesses.

How does a business survive with such bad bookkeeping? Some businesses do well in spite of their bookkeeping inefficiencies because their fundamental business is doing so well that the inefficiency stemming from bad record keeping only reduce profits instead of eliminating them altogether. – But of course most small businesses do not survive, and poor bookkeeping is a contributor to the demise of many of them. Poor bookkeeping leads to a host of problems,trouble collecting accounts, difficulties with suppliers over late payments, problems getting bank loans because of the inability to prove profitability, inability to assemble reliable costs and revenue data in order to make pricing decisions, and just general inefficient use of time.

Record keeping

– Let’s now turn our attention to the next area where new business owners tend to drop the ball. That is the area of poor recordkeeping. Most new business owners hate to worry about the recordkeeping. They would rather worry about customers, and sales, and innovation, and growth, and everything, other than recordkeeping. Proper recordkeeping and internal controlsare the blocking and tackling of new businesses. Not very glamorous and not very interesting,but, it needs to be done, and it’s safe to say that it needs to be done well. When I graduated from college with a degree in accounting, oh, so many years ago, I naively assumed that businesses existed so that accountants could account for them.

Accounting was the center of my universe at the time, and I incorrectly assumed it was the center of everyone’s else’s universe as well. I couldn’t have been more wrong. I quickly learned that while proper recordkeeping and adequate internal controls were essential to the successful running of a business, those features were not the business. You can liken proper recordkeeping and adequate internal controls to the keeping of statistics in a football game.The person tracking the statistics is not on the field playing the game, but, those statistics are very helpful to those who are on the field playing the game.

As we discussed in the previous video on cash management, you need to track your inflows and outflows, or cash, so that you can forecast future cashflows. All we’re talking about here is developing a system of tracking your inflows and outflows, your obligations to others, and other’s obligations to you. It can be as simple as that. Depending on the size of your business,you can purchase accounting software off the shelf. There are a number of great products that will do the job with minimal training, but, it is critical that someone take responsibility for keeping the books.

Why is it critical? Three reasons off the top of my head: first, more accurate information about your business will assist you in running your business better. You will need information about cash inflows and outflows, and about who you owe, and who owes you. Second, if you ever need external financing, bankers or investors will insist on accurate financial information. They will need that information to assess business risk. You need that same information for that same reason. Third, taxes.

Controls

– Now, about controls. What are they? Controls are procedures that should be in place to ensure that one, the information that is being collected in your accounting system is accurate and reliable, thereby helping you to run your business better. And two, to safeguard your assets and your records. Now, what sort of controls should I have on information that I will collect?You will need to answer questions like: How will you document that your cash outflows are legitimate business expenses? You better have proper documentation. If I’m in a business that has inventory for resale, how will I know how much I have on hand? How do I know how many hours my employees have worked? You better have a system for tracking this information.

And of course, you will need a system that collects information about your cash inflows and your cash outflows. And you also need to know who you owe, and who owes you. We’ve talked about that. What else? Well, you’ll have information that’s confidential about employees. Pay rates, Social Security numbers, etc. That all has to be safeguarded. What about customer lists?What about pricing information? As you can imagine, there’s a lot of top-secret informationrelating to the inner workings of your business that you don’t want getting out.

You need to ensure that you have systems that protect your information and ensures that the system producing your information is accurate and reliable. One last thing to mention that is often taken for granted. You will need to safeguard your cash. You will need procedures in place to make sure that cash and checks are quickly and correctly deposited in the bank, and that only authorized expenditures are made. This is no fun to talk about, but we tend to assume that those with whom we work are looking out for the best interest of the company.

Now, that is often the case, but it’s also often not the case. Many individuals are looking out for them. You need to make sure that those individuals are never given the opportunity to be exposed to a situation where they might compromise their integrity. That is done by developing a set of controls within your business to ensure that information is collected quickly and correctly, and that procedures are in place to ensure that assets, especially cash, are handled properly. Now, remember we said at the outset that this topic is the no-fun part of business.

Improper Product Pricing

Pricing a consulting job

– One of the problems that small business owners have is that they improperly price their products and services. Sometimes they set their prices too high driving away business, but more often they set their prices too low and end up not covering all of their costs. – I’ve got some personal experience with this, a story with a good ending. – Okay, I know that you operate your own small business providing executive training courses. – Correct, a few years ago I was invited to provide a one day training course to a group in Kuala Lumpur. The group asked me to quote them a price for this one day course. – Kuala Lumpur, where’s that? – Kuala Lumpur, locally known as KL is the capital of Malaysia.

– All right, so what was the pricing issue? – Well see they just wanted the one day, so my first thought was, “Well, how much would I accept for one day of work?” Would I do it for $1,000? – 1,000 bucks for one day of work, most people would be happy to make $1,000 a day. – That’s what I thought, then I realized that it would take me about five working days to design the course, one day of delivery but five days of course design, so I wasn’t willing to work for six days for just $1,000. – Well then just increase the price, how about $5,000? – Yeah, but then I thought about the travel time.

I live near Salt Lake City in Utah, I checked the flight schedules, and I would have to fly from Salt Lake to San Francisco, from San Francisco to Hong Kong that’s a 13 hour flight, from Hong Kong to Singapore that’s another four hour flight, then sleep overnight in the Singapore Airportto catch the 6:00am flight the next morning to Kuala Lumpur. It would take me almost two full days to get there, and about the same to get back. – So all together this one day course would consume about 10 days of your life, counting the one day of delivery, the five days of preparation, and the three or four days of travel, plus a few days of serious jet lag once you return.

– Exactly, I got tired just thinking about the whole thing. – So what’d you do? What price did you finally quote? – Well after thinking about all the costs in terms of time and effort I proposed a price of $15,000. – 15,000 for one day, but really after you thought through everything carefully, it was more like 12 days of work and recovery. Did the company accept your price? – Well that’s the good ending, I asked for 15,000 and they said yes. I designed the course, flew across the Pacific, slept overnight in a Singapore Airport, delivered the course, turned right around and flew back, and then enjoyed a few days of glorious jet lag at home.

Product pricing

– What can be so hard about pricing a product? Don’t you just figure out what your costs are,and then add some sort of markup for profit? Oh, that it were that easy. If your price is too high, regardless of your cost, someone in the market will underprice you, assuming that the quality of product or service is similar. In many cases you will be a price taker, and you will have to manage your cost so that you can earn a profit given a certain price as determined by the market. Now let me say that again, in most instances you don’t price your product to cover your costs, instead you determine if given a certain market price your cost structure is such that you can earn a profit.

The biggest mistake new business owners make in product pricing is not considering and covering all of their costs when entering a market. Now, it is true that when you are initiallytrying to penetrate a market you may be willing to lose a little money to gain market share, but that strategy is not sustainable over time. Over the long term you must cover all of your costs, all of your costs. Let’s consider the following example. We have a friend who’s in the wedding announcement business. The business is operated in a small town out in the middle of nowhere so that there’s not much competition in the local area.

We’ll relax that assumption in a minute. Our friend calculates the production costs of each wedding announcement order, and then adds $50 to arrive at a selling price. Since the production costs are $14,000, as seen in the chart here, our friend divides that cost by the 40 orders received in a month to get $350 per order. She then adds $50 to cover other costs and charges $400 per order. Well, as you can see, that strategy isn’t working out very well. Our friend is currently losing $3,000 a month, why? She didn’t factor in all of her costs.

She’s covering her variable costs, but the amount being contributed to cover fixed costs is not enough. Note also that our friend doesn’t draw a salary from the business, instead she shares in the profits. Let’s set the price so as to cover all of our costs. Since our total costs are $19,000,that’s our variable costs and our fixed costs, and the number of orders is 40, we get a cost per job of 475. Let’s just add $50 to that number and see how we do. The results are in this table,looks like if we set the price at $525 per order we will make $1,400 a month, awesome.

Uncontrolled Growth

The USFL

– You’ve heard of the NFL? – Absolutely, the National Football League. – How about the USFL? – Ah, I haven’t heard them mentioned in a while. The USFL was the United States Football League,a rival professional football league that operated for three seasons from 1983 through 1985. – That first season, 1983, saw the USFL owners as a group lose millions of dollars. These losses were caused by fan interest being less than expected and player salaries being more than expected. – In response to these losses in 1983, the USFL tried to fix their profitability problemswith an approach that is often used by small businesses owners.

– What approach is that? – They tried to grow their way into profitability. The rationale was if we grow faster, we’ll become more profitable. Classic mistake. – A better approach is to first fix the profitability of your existing operations, and then think about growing. – Ah, but alas, the USFL made the common outgrow our problems mistake and tried to grow out of their profitability problems. So in the second season, 1984, the League grew in two ways. – First, they expanded the number of teams. In the inaugural season there were 14 teams.

In the second season the League expanded to 18 teams. – Second, the teams grew their player payrolls. The initial plan was to hold to a strict salary cap of $1.8 million per team. But some of the owners couldn’t resist signing expensive big name players to try to raise the profile of the League. – Some of the well-known players who got their start in the USFL were running back Herschel Walker, who was paid $1.4 million per year by the New Jersey Generals, and quarterback Steve Young, from our own Brigham Young University, who signed a 40-year $1 million per year contract.

– Steve Young’s $40 million contract was at the time by far the largest contract in professional football history, even surpassing all of the big stars in the established NFL. – As expected, this rapid growth strategy in number of teams and in player salaries failed to turn the money-losing League into a money maker. – After the 1985 season, the League ceased operations. In its brief three-year history, the team owners had lost a total of at least $180 million. – The lesson? If you’ve got profitability problems or cash flow problems, faster growth is almost always not the solution.

Growth

– Now to our last topic uncontrolled growth. Growth is awesome, increased market share is good, sales trending upward is the dream, and unmanaged growth has killed a lot of companies. Growth must be carefully done or it could be fatal to your business. The reason being is that growth often requires cash, and cash is often the one thing that new businesses do not have a lot of. In fact, a lot of new business owners when faced with the cash flow issues associated with starting a new business, they mistakenly think that the solution to their cash flow problems is to grow faster, not realizing that the fast growth is causing the cash flow problem in the first place.

In other words, they hit the gas when they should hit the brake. How does growth cause cash flow problems? Well think about it, in a typical business that is selling a product to a customer on credit, that is the customer will pay in say 30 days, you as the business owner need to pay your rent, pay your insurance, pay your employees, pay for the inventory, then sell that inventory, and wait for 30 days to collect the cash. To grow faster means you need to buy and pay for more inventory and then sell that inventory, and wait for 30 days to collect the cash.

The more inventory you have to buy the more inventory you have to pay for, and then still wait 30 days to collect the cash. Well, let’s just have our suppliers wait longer to collect from us until we collect from our customers. Remember this, your suppliers are having the same cash flow issues that you’re facing. They would like to receive their cash sooner rather than later. You’ve all heard of the company Home Depot they are located throughout the United States. They had sales of almost $79 billion, and they reported profits of over $5 billion.

Well back in 1985 sales had reached $700 million, and they were growing at a rate of over 40 percent per year. They were spreading stores across the southern half of the United States, and they were poised to grow north. Their problem was that they needed cash to finance their growth. The trouble was their cash from operations had been negative for the three previous years. They had borrowed over $200 million in the previous two years, and that was now all gone, and their stock price had dropped significantly in 1985, meaning raising cash through anequity issue wasn’t going to happen.

Conclusion

The lost farm

– We mentioned the James Herriot veterinarian stories in our previous discussion of poor record keeping and controls. – We’d like to tell you about one more James Herriot story, this one a cautionary tale. This story comes from the book All Things Bright and Beautiful. Now just a quick warning, there’s no humor in this story and it doesn’t have a happy ending. – Turns out a young farmer was fulfilling his dream of owning and operating his own small farm in the hillsides of Yorkshire. – He had worked for a number of years in the English steel mills, saving his money so he could buy his own place out in the country. – And even though he was a city boy he was making a good go of it.

With the initial investment of his life savings and with a bank loan he expanded milk production. – He even stretched the budget to squeeze out the money to build a new modern milk barn. He probably extended himself financially a bit too much, but he thought he could make it. – He built the walls, he poured the concrete floor himself, it was a proud structure. – Then disaster struck, his herd of dairy cows was decimated with a contagious bacterial diseasethat caused the new calves to die before even being born. – The cows themselves survived, but the young farmer had no new calves to sell and the milk production of the weak and sickly surviving cows went way down.

– In the end the young farmer could see that his reduced monthly income was not going to be enough to pay off his loans. – So he sold the cows, the barn, and the land for enough to pay off his bank loan and then he retreated back to his old job in the steel mills. – Back to the steel mills, working for someone else, minus the life savings that he had lost when he had had to sell his farm. – In the story the veterinarian James Herriot wrote how he used to visit that farm in later years, taking care of horses of the new owners. – The new owners used the proud little dairy barn built by the hands of the hopeful young farmer as a storage shed for grain for their horses.

– A grain storage shed, all that was left of the dreams of a young farmer, now toiling away in some steel mill somewhere. – The moral of the story a failed small business is not just a sign of the workings of supply and demand in the market. – A failed small business represents the lossof someone’s life savings. – And the loss of someone’s dreams. – You don’t want that to be you.This course is intended to highlight common mistakes made by new small business owners. – Let’s review the key points of the course.

Next steps

– So what should you do next? That depends on what you identify as your particular small business problem. Are you having trouble with poor records? Are you finding your financial reports to be uninformative or too often nonexistent? Then like it or not, you need to learnsomething about accounting. I suggest you take a look at our Accounting Fundamentals course in Lynda.com. Are you having trouble managing your cash flow? Are you always feeling cash squeezed with not enough financial capital to invest in the assets, information, and people that you need? Then you need to learn a little more about the field of finance.

You can get an excellent overview of the key concepts in finance in our Lynda.com course,Corporate Finance Fundamentals. Maybe you feel like you are operating your business blind.Your profitability seems low, but you can’t figure out why. Then you need some exposure tosome simple techniques of financial analysis. Again, I point you to our Lynda.com courseFinancial Ratio Analysis. Finally, remember that there are lots of qualified business advisers out there. Sometimes it makes some sense to spend a little money to meet with an experienced business adviser.

Describe your business, your plans, and your frustrations to this outside adviser. She or he can then help you sort through the weaknesses of your business to identify the things that you need to work on first. Small business are the source of creativity in an economy. A small business is a precious thing, the embodiment of a person’s ideas, energies, and ambitions. I salute those of you who have the entrepreneurial spirit and have started or are thinking of starting your own small business. I wish you great joy and success.

Executive Leadership

About the Instructor

Dr. John Ullmen is an executive coach and professor at the UCLA Anderson School of Management.

John Ullmen, PhD, is an internationally acclaimed executive coach who oversees MotivationRules.com and is on faculty at the UCLA Anderson School of Management, where his course on interpersonal communication was voted by students as one of the “top 10” experiences in their graduate program.

Dr. Ullmen is a frequent keynote speaker on how to influence for results without resorting to authority or relying on rewards and penalties. His most recent book, Real Influence: Persuade without Pushing and Gain without Giving In(Amacom, 2013), coauthored with Mark Goulston, is in print in many languages, and was chosen as one of the 30 Best Books in Business for 2013 by Soundview Executive Book Summaries.

Spanning a wide range of industries, his clients include industry leaders such as Apple, Bain & Co., Cisco, Deloitte, Disney, Genentech, Frito-Lay, Johnson & Johnson, Merrill Lynch, NASA, Nike, Oreck, Raytheon, St. Jude Children’s Research Hospital, UBS, Verizon, Yamaha, and many others.

Dr. Ullmen also works with senior leadership teams, and one of the programs he created for a leading global firm was featured in a Harvard Business School case study on successful strategic and human capital change.

He received a BS from the U.S. Air Force Academy, a Master in Public Policy from Harvard University, and a PhD in organizational behavior from UCLA. He began his career as an officer in the U.S. Air Force, where he served in a global top-secret intelligence program and later at the U.S. Air Force Academy’s Center for Character and Leadership Development.

{click here for Exercise Files}

Introduction

Welcome

– John Quincy Adams said, “If your actions inspire others to dream more, learn more, do more, and become more, you are a leader.” Though he lived and led over 200 years ago, his words still reign true. Especially for executive leaders. Notice, between all those more’s, he doesn’t say, or. It’s more on top of more. And that’s executive leadership. If you’re an executive leader, or might want to be one someday. I’ve designed this course for you. Executive leaders need to handle much higher levels of ongoing responsibility for people, resources and results. The stakes are high, but so are the satisfaction and pride that come from serving people.

Helping them succeed in adding significant value. This is my passion, my life’s work. I’ve been on faculty many years at one of the worlds leading schools of management. And work with several other worlds leading executive search firms. Which asked me to coach senior leaders they assess, and I’ve coached hundreds over the past two decades. In this course, I’ll share specific hands on examples, and the most relevant results from the best global research. On executive leadership success. I’ve arranged everything, so you can go through step by step and easily identify the areas you want to concentrate on.

And the best actions to take to do it. A lot has changed about executive leadership since John Adam’s time. But not that, he prioritized taking action. The rights actions, and so will we, let’s get started.

Set a Solid Foundation

Earn their trust every day

I worked with an executive named Daniel from a leading investment bank who decided he wanted to start his own firm. He wanted to offer more transparency to his clients, and create a collaborative culture for people to work in. First, he had to relinquish all his clients to theinvestment bank and start fresh to try and re-engage those clients and new ones for him new firm. As for employees, he wanted to hire 16 people from the investment bank, but given regulations, and the urgency to get started immediately, he had a tight window to recruit them,so he invited all 16 people to a meeting at 4:30pm on a Friday, which was immediately after he officially severed ties with the investment bank.

He shared his vision with them for the first time, and he invited them to join. He said he’d understand if they said no, but there was literally not a day to lose because they had to wrap up that weekend, so if they were going to leave the investment bank and join his venture, they would need to decide, sign, and send the appropriate documents before 5pm. In other words, he asked 16 mature, extremely talented, accomplished professionals on 30 minutes notice to leave their stable, very well compensated, established positions in a world famous investmentbank, to join a fledgling venture, which at that point had exactly zero clients and zero income.

All 16 said yes. They dropped everything to follow Daniel. Why? Because they trusted him.Because he earned their trust. In fact, he earned it long before he even considered starting his own firm. His consistent actions over time convinced them, beyond question, that their interest mattered to him, and he would come through for them. He earned the trust of his clients’, too.Daniel says one of the things he’s most proud of is what happened when he called his formerclients and asked them for their business.

Well, previously under the auspices of that global, reputable investment back, he had several billion dollars from clients under management. After a round of calls to those same clients, he had regained the initial amount plus 50% more. These sophisticated, highly intelligent investorstrusted him even more without the backing reputation and resources of a world famous firm.The employees voted with their feet and their futures. The clients voted with their hard earned income, and they were both right to trust Daniel.

His firm has grown sensationally since then, and he’s racked up a consistent streak of awards in his industry year after year. If Daniel hadn’t earned their trust long before he needed it, he, his employees, and his clients all would’ve lost out. None of this would’ve happened. Earning trust every day is the foundation of successful executive leadership. Whether they say it or not, a question on everyone’s mind is, “Why should we follow you?” The best answer is, “Because we trust you.” We trust you to look out for our best interest, to help us succeed, empower us to reach our goals, and do more than we thought we could.

To help us be proud of the meaningful work we’ve done. But there’s only one way to gain it and keep it, and that’s to earn it. Whether people trust us is 100% up to them based on the impact of our actions on them. When you build trust, everything goes better. When you damage it, everything gets worse. That’s why Daniel’s lesson applies to executive leaders in all organizations and industries. Here’s what to do. In your interactions every day, take actions that increase the three key factors that build trust.

Reliability, credibility, and connection. Reliability. Be someone who can be counted on. Show up on time, be prepared, and overdeliver. Make commitments, and follow through. Close the loop on all expectations. If sometimes you fall short, do whatever it takes to make it right. Credibility.Bring value to the table. Know what you’re supposed to know, and do what you’re supposed to do. Learn all you can about your business and industry. Step up when you’re needed.

Make your presence felt, and add value. Connection. Build repertoire and relationship with others. Learn something from them or about them every time you interact. Find out what matters to them, and help them get it. Listen, understand, and give. Do this every day, and you’ll build strong trust, and like Daniel, when the day comes that you really need people to be there for you, you’ll find they already have been all along.

The four disciplines of executive leadership

– Executive leadership is like an ocean voyage of discovery and you’re the captain. Your people are counting on you to find a way to arrive safely and successfully despite currents and storms.How do you do it? The foundation is that all of your choices as an executive leader should align with two principles, earn trust and serve your people. Those are must haves. Those are litmus tests, and everything you do, everything you say, should pass those tests, and take strength from those motives. We cover those two principles in separate videos.

Now given that you follow those principles, how should you focus your efforts? In four distinct ways, what I call the four disciplines of executive leadership. By discipline I mean consistent action. The four disciplines are top priority, integrated sets of practices and actions for executive leadership success. First set direction, where are you leading us? Omar Bradley said, “Set your course by the stars, “not by the lights of every passing ship.” It’s challenging, we need direction,but not just any direction.

Nor one that is too susceptible to change, though things change around us every day. Second, motivate commitment. Why should we give our best effort? You must make a convincing case,and embody the inspiration you want to see in others. On this point, there’s a fine excerpt from The Little Prince that captures the difference between operational management and visionary leadership. “If you want to build a ship, “don’t drum up the people to gather wood, “divide the work, and give orders. “Instead, teach them to yearn for the vast and endless sea.” Operational matters are crucial, and that’s why you place excellent people into those roles.

Your role is to engender that yearning. That internal self-chosen dedication to bring our most engaged, creative, energetic selves to our shared purpose. Third, drive for results. What happens when trouble happens? Changes, challenges and crisis will come, you must prepare us to adapt and endure, and prevent us from giving in to excuses, naivety and fatigue. William Arthur Ward said, “The pessimist complains “about the wind, the optimist expects it change,“the realist adjusts the sails.” Fourth, develop yourself.

How do you equip yourself for the journey? You can’t give your people what they deserve for long unless you give yourself what you need too. Leading others is a voyage in the outer world of tangible results, and the inner world of your own growth. It takes curiosity and courage. Mark Twain said, “Twenty years from now, “you’ll be more disappointed by the things “you didn’t do than those you did. “So throw off the bowlines. “Sail away from safe harbor. “Catch the wind in your sales. “Explore.

“Dream. “Discover.” It’s a great theme for your learning as a leader. What you do to help your people grow too, as you set a course for them to succeed. That takes us right back to the first discipline, setting direction, so all four disciplines work together. As an executive leader your ability to master the disciplines enables you to fulfill the overarching aim of serving your peopleas well as you’re capable of doing. You do what needs to be done to inspire them to do what they’re capable of doing, learning and becoming.

In the following chapters each of the four disciplines is broken down into several practices each with its own video. Each video has several specific action steps to guide you how to implement each practice. It’s also summarized in a downloadable handout in your exercise file. So throw off the bowlines, catch the wind in your sails. Go through the videos in each of the four disciplines, and note carefully which action steps you need to do more often. Then explore and discover. Start them right away.

Set Direction

Think strategically

– Most people’s thinking is dominated by the here and now, but effective executives make a habit of thinking ahead in time and space. They think in a disciplined way about the future and they think beyond their tasks and team. They consider implications for their organization as a whole as competitors, the economy, social implications, even global developments. That’s strategic thinking. It reveals problems and possibilities most others miss. As an example, let me tell you about Glen Barros, CEO of Concord Music Group.

He’s at the center of one of the most remarkable stories in the history of modern music. Ray Charles final recording. Notice, the many levels of strategic thinking. One, Barros purposed an innovative partnership with coffee giant Starbucks to produce their own recordings, instead of licensing from various other record companies, and sell the recordings in Starbucks cafes. That was new. Two, the first artist he purposed was a brilliant choice, Ray Charles. A world famous name, but at that point, neat the end of his career, his new recordings hadn’t been selling much.

It was the perfect time for a new release. Three, Barros purposed a duets album, one of the first of its type. He foresaw lining up a musically diverse list of prominent artists young and old, that would attract a larger audience, who wouldn’t want to sing with Ray Charles. Four, Barros was strategic in working with Ray Charles organization too. They were skeptical having been burned in the past by deals skewed against Ray’s interests. Glen purposed a nontraditional business arrangement in which one side didn’t benefit before the other.

The project was on. What no one knew at the time, was that Ray was about to battle terminal caner. The last duet with Elton John almost didn’t happen, because at that point, Ray was so ill.Barros says, “Everyone was choked up.” Elton had difficulty keeping it together. Ray, with courage and charisma said something like, hey Elton, I’m sick but what’s your excuse? It dispelled the attention, and they laid down an extraordinary track. It was the last song Ray Charles ever recorded.

Genius Loves Company went on to receive eight Grammy Awards including album of the year,tying the most Grammy’s ever won by a single album. It also became Rays most successful record ever, selling six million copies and counting. It’s a gift to the world, and many were involved, but it never would have happened without a consistent pattern of strategic thinking from Barros. To enhance your strategic thinking, here’s what to do. Listen to interview with CEOs and business leaders, and pay close attention to how they talk about their choices and future plans.

Read the annual reports of firms in and out of your industry and study their strategies, Seek roles, projects, and relationships that expand your perspective. Push your own thinking, don’t wait for someone else to do it for you. Ask lots of what if questions. Generate different scenarios for what might happen in technology trends, market fluctuations, international affairs,and government policies. Also ask what if questions as if you were in a different role.

What if you were the CEO? What would you do? What if you were in charge of your competitors firm and so forth. Interact consistently with other creative and strategic thinkers,find these people, take initiative, post questions, notice the though process, and expand the breath of your point of view. Add depth too, read articles and watch interviews, and presentations from thought leaders about international and global developments. Genius does love company, so take a note from Glen Barros and Ray Charles too.

Take responsibility and be decisive

– One of the world’s leading global executive search firms did an extensive study, and I got to see the results. After assessing thousands of CEO candidates over the years, and examining in detail who succeeded and failed, they’re research revealed a key success factor was, acting decisively and courageously. Why? Because anyone can play it safe, do nothing notable, and blend in. But when senior leaders are vague and wishy washy, people lose confidence and motivation, and organizations flounder. How can you follow someone who won’t choose a direction? But, it’s challenging, because executive level decisions tend to come with significant uncertainty and risk.

A leader I coached put it this way, “The toughest choices get pushed up to me. “If I’m making a lot of easy decisions, “I’m not doing my job, I’m doing someone else’s for them. “I need to make decisions others shy away from.” It’s not easy. It’s one of the reasons Thomas Jeffersoncalled leadership, “That splendid misery “that involves the daily loss of friends.” Shouldering so much responsibility, you can feel alone. In surveys asking new CEOs what’s most surprisingabout the role, that “lonely at the top” feeling of making difficult decisions, is consistently on the list.

Executive leadership calls for courage, to take a stand, despite pressure, complexity, competing priorities, ambiguity, and resistance. Aristotle said, “Courage is the first of human virtues“because it’s the one that guarantees all the others.” This certainly applies in organizations, because we need leaders who consistently have the courage to make decisions that give clear direction, focus energy, and rally commitment. Know that and prepare for it. Here’s how to do it.

Get in the habit of making sharp, clear choices and articulating why you made them, while respecting, crediting and appreciating those who advocated different choices. Sometimes you’ll be right, and sometimes you’ll be wrong, but people will respect your decisiveness and courageand stay with you, especially if you back it up with respect and genuine appreciation. Use your strategic perspective, take input from key stakeholders, gather diverse points of view, ask if you’re solving the right problem, explore what the root causes are that’s driving the problem, generate alternatives and consider consequences.

Challenge your assumptions, biases, and the limits of your experience and expertise. Ask what data is missing, even if you have data already, that’s a common blind spot. Practice all these steps when the stakes are low, so it’s more familiar when the stakes are high. And finally, consult trusted advisers regularly. It’s the best remedy for Jefferson’s misery and that decision-point aloneness. Sometimes it can feel isolating, but you don’t need to be isolated.

Instead, stay regularly in touch with people outside your team or business whose judgment you trust, and you’ll not only be more decisive, you’ll make better decisions.

Lead from “me” to “we”: Define the past, present, and future

– Especially during times of stress or change it’s natural for people’s focus on “me” to overcome their sense of “we”. Fears and concerns steer people toward self protection and self interest.Survival mode kicks in. Am I safe? Do my interests matter here? Will my manager help me succeed? Even when things are going well, there are as many perspectives in an organization as there are people in it. So, during good times and hard times alike, executives need to draw people together and point them forward with clarity and energy. They need to lead from “me” to “we”.

Here’s how to do it. Here’s a simple, adaptable, three part framework I use all the time with leaders that connects the past, through the present to the future. It rallies your people around unifying “we” answers to their natural “me” concerns. One. What should we be most proud of from our past? This goes straight to the most inspiring answers, to their “who are we” question.Emphasize the best parts of where we’ve come from. Give evidence with examples.

Instead of treating the past as irrelevant or emphasizing what’s wrong about it, focus on thebest things we accomplished, overcame, or learned. Two. What are the most important challenges and opportunities we face in the present? To have credibility it’s important to acknowledge realistically what we currently face, instead of avoiding the problems that everyone knows about. And you’ll also want to identify the opportunities that many might not see. Then based on those current opportunities, take up the third question, which naturally comes up next.

What are our inspiring ambitions for the future? Instead of dominating our focus on what’s wrong, or merely surviving in the short term, give people a powerful possibility to live into. On this, American Express CEO, Kenneth Chenault likes to quote Napoleon. “The role of a leader is to find “reality and give hope”. He says, “You have to tell the people you lead “what the reasons are to be hopeful”. Inspire them to go for great outcomes.

Past, present, future. Each framed as a positive “we”. Here’s an example. It’s from when I coached the research and development function leader in a firm with tens of thousands of employees after he had to cut his head-count and budget in half as part of a largerorganizational downsizing during an economic downturn. Think of how demoralizingly refocused they could have been. I’m in a failed group with a dismal future and I better get what I can for myself or get out of here fast. Instead, here’s how we used past, present, future to shift focus from distressed “me” to determined “we”.

First part, about the past. We’ve been through tough times recently, but that doesn’t erase what we’ve accomplished and the strong legacy we inherited to build on. And here he cited several contributions the R and D group made to the firm’s product and service offerings. Second part, about the present. Now we’re fighting to prove our worth to this organization. If we rise to that challenge, we’ll secure an influential place in the strategic planning process for the company going forward, far into the future.

Third part, about the future. And we’ve got our sight set on even more than that. We can be the engine that drives our firm to industry leadership. And here he cited specific initiatives they were working on. Other firms have rebounded from downturns based on the next wave of innovation. Again, he cited some relevant examples. That’s what we’ll do too. We’re going to drive the future of this firm. And then he explained how their initiatives would do it. Now when you practice this, you can get very good at generating sharp, straight-forward statements.

You can adapt it for your team, a business unit, or the organization as a whole. Continually update your list of answers for the three questions and you’ll be ready any time, anywhere, for an impromptu response or a formal presentation. Franklin Roosevelt said, “A good leader inspires “others with confidence in him; a great leader “inspires them with confidence in themselves”. Get into the habit of having solid motivating past, present, future statements, and you’ll do both.

Create shared purpose and a compelling vision

– When Disney World opened in Florida a visitor approached one of the Disney executives who was there for the celebration and said, “Isn’t it too bad that Walt didn’t live “to see all this?” The executive replied, “Walt did see it, “that’s why it’s here.” Disney World exists because Walt Disney created shared purpose and a compelling vision. The shared purpose, Disney put it this way, create the happiest place on earth. The vision, Disney World, an amusement park full of rides, entertainment, Disney characters, music, and fireworks.

Purpose and vision apply to all executive leaders because they answer the critically importantwhy questions that go to the fundamental motivations people bring with them or leave behindwhen they come to work. Why does this organization exist? Why is what we’re doing worth my effort? Why will my work make a difference? Weak answers to these questions drain motivation and performance. Effective executives know they must have excellent answers to those why questions because people are driven by the answers, even if they don’t ask the questions out loud.

For any team, business unit, or organization setting effective direction requires a powerfulshared purpose toward a compelling vision of how things will be better. A shared purpose is a values-driven, integrity-based motive that people in the organization can rally around and be proud to champion. I worked for years with Dr. Mel Hall, former CEO and chairman of the firm that during his tenure came to dominate the US market for hospital patient satisfaction. Over time they developed sophisticated data analysis methods that enabled them to stand out in the marketplace, but it wasn’t just analysis that attracted so many of the most talented people in this industry to their firm, especially when you consider how far behind the competition they were earlier.

It was their shared purpose. Mel rallied people around the fact that everyone has loved ones who need to go to the hospital, mothers, fathers, grandparents, children, spouses, partners, and most had no influence over the quality of their care. Mel said that era is over. The rallying cry was, “Let the voice “of the patient be heard.” Everyone in that company knew every day their efforts helped to make that happen. Now that’s a shared purpose.

It’s why we’re here. It’s why we do what we do. It connects to the vision because if we do it very well, things can be better in the future, much better, and that’s what a compelling vision is about. A compelling vision is an inspiring view of the better future we’re striving to create by acting on our shared purpose. Think of the word envision. Executive leaders need to see ahead, to envision how things will be better if we pull together, focus our efforts, and stay committed.They help us to see it too, and motivate us to keep striving for it despite inevitable challenges and setbacks.

Mel Hall had a compelling vision for his firm. He envisioned hospitals everywhere devotingresources and attention to ensure every patient was treated with dignity and given excellent care and support. Seeing what’s possible is the first step to making it possible. Seeing how it could be helps motivate us to plan for how it can be, and then take action to make it be. People are starving for purpose and vision at work. Executive leaders owe it to them. For your team, function, or organization get into the habit of creating a shared purpose and a compelling vision.

Here’s what to do to be a purpose driven, visionary leader who sets an inspiring direction. For shared purpose, talk with people about what they think are the best reasons the organization exists. What makes them proud to work here? What’s the larger reason beyond their individual role that adds meaningful value to other people such as your customers or society as a whole?Add your own thinking and hone in on a sharp, clear articulation of the positive underlyinghuman value that’s being advanced because of what your organization is trying to do.

That’s your purpose. Try to make it as clear and concise as Mel Hall’s we let the voice of the patient be heard. For compelling vision talk with people also about the most meaningful valuable ways things can be better if your organization performs as well as possible in the coming years. What’s the ideal positive impact for people that your organization can catalyze?Add your own thinking and distill it into a clear, concise articulation of the better world you’re all trying to bring into being.

Motivate Commitment

Inspire confidence, even under pressure

– Tom Landry, one of the most successful head coaches in professional sports history said, “A crucial part of leadership is having people look “at you and gain confidence seeing how you react. “If you’re in control, they’re in control, “and if you’re not, they’re not, and they lose“confidence in themselves and in you.” As an executive leader, you need to inspire confidence, even with people who don’t know you well. Why? Because executive leaders are visible to large numbers of people, often in small slices of exposure. For employees, potential customers, investors, vendors, suppliers, potentially anything executive leaders say and how they say itcreates consequences that ripple through multiple levels of stakeholders.

Those who see you in action tell others, and there are often videos of you taken and disseminated, even without your knowledge. As an executive leader, it’s critical to maintainpoise and executive demeanor, behaviors that inspire confidence, even when you’re under pressure or in a crisis. The alternative is perilous. By appearing too fearful, or erratic, or not up to the challenge you lose their confidence and gain an unwanted reputation. The great news is this is a learned ability. With practice you can manage that inner turmoil and project yourself as someone fully capable of handling even the toughest situations.

Here’s how to do it. Break it down into managing your thoughts, your feelings, and your actions. One, practice directing your thoughts towards the number one positive priority for your situation. Warning, the number one priority is not you winning an argument, or getting back at someone, or being right, especially if it makes others look bad or feel embarrassed. The number one priority is always about advancing a shared purpose for greater good. Focus your thoughts not on your inner unease, but on what matters most for the group.

Two, direct your feelings toward determination to make progress on that number one priority.It’s okay if sometimes you feel nervous, everyone does. You can still inspire confidence. Practice channeling your difficult feelings toward focused determination. Make friends with that feeling.Go to it over and over in less stressful times, and it gets easier and easier to access when the pressure’s on. It works. Focused determination is well suited for even the toughest situations.

But focused determination to do what? Three, that’s where your actions come in. Get determined to focus on that number one priority and to take the best actions to advance that priority. Actions include what you say and do, including your body language and tone of voice.We can’t see our own actions, so the first step to inspire more confidence with your behaviors is to understand the current impact of your actions. What do you currently do that inspires confidence or doesn’t? Get feedback and look for areas of improvement.

We all have them. Next, choose five people who inspire confidence, especially under pressure.Business or government leaders, public figures, whoever you like. Study their behaviors in person or watch videos of them in action. Notice at least one specific behavior from each of them, what they do with their voice, gestures, facial expressions, posture, or movement. Then, develop your versions of those behaviors and practice them. You can practice them any time, and no one even needs to know you’re practicing.

Repetition leads to reliability. Now you won’t imitate these people exactly, and that’s how it should be. That’s why I have you choose five different role models. You’ll notice there are different styles of confidence enhancing behavior, and you’ll find ones that work best for you.Here’s an example from someone who could easily be on your list, the celebrated basketball coach Mike Kryzewski, whose teams have won multiple championships and Olympic gold said,“A leader has to show the face “his teams needs to see. “Before he ever utters a word, they see his face “and they also see his eyes, even his walk.” Coach K, as he’s called, goes on, “I’m always aware of how I enter a room.

“Before a game I might walk into the locker room “quickly with a spring in my step “and a smile on my face, and as I come in “I might say something like, hey we’re going “to be great tonight.“Whatever I say after that will not be “as important as how I look to them. “Does he really mean it? “Yeah, look at his face, he really meant it. “We might be great tonight.” We gain confidence in people like Coach K who keep a cool head and help us stay on track when it matters most.When you break it down into its simplest components, it’s easy to practice, and it all comes together. Thoughts, focus on the number one priority.

What’s the most important shared purpose? Feelings, be determined. To do what? To take action, to advance that number one priority, and in your actions look like someone who has confidence in your people, and you’ll increase their confidence in themselves and also in you.

Energize and empower people

– CEO Christine Day says one of her most important priorities is ensuring the emotional vitality of the organization. It was crucial to her success as an executive at Starbucks, and later how she drove tremendous growth while in charge of the innovative apparel company Lululemon.Highly successful executives like Day know you consistently need to energize and empower your people, and you need to do both. Energizing people without empowering them can leave them frustrated. Empowering them without energizing them can leave them overwhelmed, stuck in place.

Intuit founder and former CEO, Billionaire Scott Cook says this lesson transformed his success as a leader. He said, “Nothing good happens with the product team, “unless they’re excited.“Even if I need to change the way “they’re approaching an issue, I need to leave them “more excited about what they’re doing, “than when the meeting began”. Here’s how to do it. One, give them something to get energized about. Lead by example. If you don’t come across to others as fully engaged in what you say, and how you carry yourself, what message does that send? Enthusiasm is contagious.

But so is its absence. If my leader doesn’t seem to care very much, why should I? Think of it this way. If your people were asked anonymously to rate you from one to 10, how engaged and committed is your leader? You should almost always get a 10 out of 10. Remember, they can’t read your mind. They need evidence that you’re all in. They need to see it, and hear it. So, put some positive energy into your voice, your facial expressions, and your gestures. You don’t need to overdo it, but you do need to do it.

Make it visible and audible that you care about the work they’re doing, and that you care about them. Also, connect their efforts to bigger-picture outcomes. Tell them explicitly how what they’re doing contributes to the team, organization, or customers, or the community or whatever constituency is relevant. Don’t assume they see it, know it, or get it. Ensure they get it.Make it impossible for them not to appreciate how they’re work makes a difference. Give them examples and recognition.

Ensure everyone that interacts with you leaves you more energized, not more depleted. Take responsibility for this. If they don’t leave the room more motivated, as Scott Cook says, they lose, and so do you. Two, don’t just encourage, empower. Tell them you’re counting on them to figure this out, or get this done, or drive these results. I coached a highly successful CEO, who private equity firms hire to help troubled companies get back on track. When he starts working with a firm, he always says, “I don’t have the answers.

“You know this business better than I do. “My job is to help you do what you do best. “I’m one hundred percent committed. “How about you?” Take a lesson from him. Don’t micromanage.Micromanagers tend to remain managers, not leaders, certainly not executive leaders. Leaders learn to let go. You don’t scale work through others by controlling them, but by unleashing their potential. Build them up. Build their confidence. And power, give them power. Power to make choices and stand accountable.

Give them responsibility and challenge them to excel. I like the way David Heinemeier Hansson put it when I spoke to him as part of my research. He’s the founding partner for the highly successful productivity software firm, basecamp.com. Hansson says, “Decisions are temporary.“Often the most important thing is not to be right. “We make few decisions so important “that being right is crucial. “We care more about the long-term averages of our positions. “I try to allow other people to win arguments”. As one of many examples, he mentioned a person who wanted to try an illustration-based design for the company’s home page.

Hannson didn’t think it would work. But instead of saying “no”, he decided to run an experiment for a week, and then go back to the old way. But, there was a huge increase in signups. Hansson said, “I was wrong. “And the person who proposed it was right.” If you treat people the right way, you win, whether you’re right or wrong on an issue. Now, wouldn’t you want to work for a leader like that, instead of someone who constantly needs to be right? Be that leader. Marshall Goldsmith, consistently voted one of the top 50 leadership thinkers in the world, says, “The number-one mistake executives make “that derails them is they try to win too much.

“But overused, their urge to be right is de-energizing “and disempowering for the very people they depend on.” Avoid Goldsmith’s number one reason for executive failure, and learn now the lessons that Day, Cook, and Hansson learned the harder way. Don’t win arguments with your people. Instead, energize and empower them.

Encourage personal excellence

– Stephen Covey said “A leader is someone who sees “more potential in others than they see in themselves.” I want you to pause for a moment and make that real. As you look at the people around you, one of the things that’s on your mind is this, “Who is each person, truly, at their best? “What are they most capable of at their most “motivated, creative, contributing, thriving selves? “What are their strengths, and how can they “use them even more effectively?” Give it a try, look at people and see, not only what is, but what could be. Look at people with a strong motive to find their potential.

That’s how the people who are most invested in our success see us. It’s a great lens through which to look. It’s an executive leadership lens. Executive leaders need to unleash the full potential of the people around them, for their current performance, and their future growth.You want to be the strongest advocate for your people’s best selves, because if you don’t believe in them, it’s harder for them to believe in themselves and try to give their best effort.They need to hear it from you, say, “I believe in you, “I know that you’re capable of great things on this project, “I’m counting on you to take charge “of this effort and move it forward.”Everyone has discretionary effort.

They can choose to perform at a level that’s good enough, or they can choose to give their very best for the task at hand and for their future development. You need to look around and realize that everyone, every day, has that choice. Are you doing what you can to help them make the choice to excel? If they don’t always do it, that’s normal, that’s human nature, it’s also a leadership opportunity. Encouraging excellence is one of the things we want and need from our leaders to help us make the choice even when, especially when, we might shrink from it.

Here’s an example, a finance executive at a global media organization told me how he was sitting in for his manager, a senior vice president, at a forecasting meeting. A very large, unexpected expenditure came up, the kind of thing that’s controversial and frought with implications about how to handle it. Because it was so significant, he phoned his manager who was taking the day off with her family. He said, “I want to let you know about an important issue.” Before he could explain, she said, “Adam, I trust you, “that’s why you’re there and I’m here.

“Use your best judgment and I’ll back you 100%. “I look forward to hearing about it tomorrow,“when I see you in the office.” Adam told me, “That’s when it really hit me, “she didn’t just talk about trusting, empowering, “and encouraging excellence from everyone, “she meant it, she lived it. “Over time, I had lots of people ask me when “I was leaving my position because everyone “wanted to work for her.” Notice, this is more than just empowerment. She not only gave him room to make the decision, she committed to support his decision and to follow up with him afterward, to debrief his thought process and coach him how to handle more of those pressure-cooker situations.

That’s encouraging individual excellence. Because she made it a habit, there was a long line of high-talent people who wanted to work for her. Encourage individual excellence, and you earn loyalty and commitment. Here’s how to do it. One, ask people, “What are the conditions under which “you perform your absolute best?” “How can you create those conditions even more often?” And “What really drives you? “How can you tap into that more often?” Help them discover this about themselves, and take charge of their situations even more, and support those conditions and drives when you can.

Two, identify the person’s strengths, let them know you see them, and help them put those strengths into action even more and continue to grow them. That’s what Adam’s boss did, she saw more in him than he saw in himself. She backed it up, and backed him up. Three, give lots of positive reinforcement for their attempts to excel, to reach for more, and move out of the comfort zone. Whether they succeed or fall short, follow up with them to lock in their learning,and turn insights into habits.

Ask, “What are your key takeaways from that meeting? “How will you apply those learnings“over the next two weeks?” Be specific. Four, encourage them to set their own ambitious goals for both their performance and their development. Encourage them to take their own accountability plans, with feedback partners, and perhaps check-ins with you too. So, it all starts with you seeing the potential others might miss in themselves. Then keep going. Help them see it, act on it, and achieve it. Show confidence in them before they go for it.

Be proud of them afterward. Help them gain insight from each attempt. Then build the personal habits to keep doing it. Make encouraging their personal excellence a priority in your personal excellence as an executive leader.

Create collaboration opportunities

– On January 15th, 2009 US Airways flight 1549 took off from New York’s LaGuardia Airport. As it started to climb suddenly both engines were disabled. Pilot Chesley Sullenburger turned the plane told the passengers, “Brace for impact,” and executed a flawless emergency landing in the Hudson River. Sullenburger checked the passenger cabin twice to ensure everyone was evacuated before being the last to leave the aircraft. Despite the crash landing and freezing temperatures incredibly all 155 passengers and crew survived.

Sullenburger was widely and rightly praised but his interpretation was different from how he was portrayed in the media, as a solo heroic figure. He said those 208 seconds, from takeoff to crash, were the defining moment of his 42 year career. It tested everything he learned and he never saw it coming. The key to success, collaboration. When people focused on him, he emphasized how he and his copilot were together.

We were a team. In interviews he consistently praised the cabin crew whose collaboration, he emphasized, as essential to everyone surviving the crash. When he got an invitation from U.S. President elect Obama to meet for dinner he insisted that the whole crew be invited too, and they were. For leaders like Sullenburger, collaboration isn’t a technique, it’s a truth. It’s a deeply held belief about what’s crucial for leadership success. The best executive leaders obsess about how to get people to work together effectively at all levels of the organization.

I’ve been in countless organizational talent reviews, succession plans, and promotions discussions. Thinking and contributing beyond one’s role is what senior leaders are looking forin future senior leaders. How can you create more collaboration? Here’s what to do. One, reach out to people beyond your direct tasks ask about their priorities, offer to help, and then follow through. You’ll stand out in a positive way and set an example showing others how to do it, by doing it. Two, take initiative to reach out to your key peers routinely and ask for feedback and suggestions about how you collaborate.

Say, “It’s important to me that we work well together.” “What’s going well, and what else do you need from me?” Three, offer to work on cross-functional initiatives. Four, communicate the importance of collaboration consistently and highlight great examples of people doing it. Five, structure collaborative objectives and incentives and reward it. For example, as part of performance evaluations, promotions, project opportunities, compensation, and recognition.One CEO I coached administers employee engagement surveys each year, to everyone in the firm, asking for thorough anonymous input on what’s going well and what isn’t.

He publishes the results for everyone to see. Then he puts a cross-functional collaborative team together and empowers them to choose the most important improvement priorities. After that, cross-functional teams are formed to work collaboratively on those priorities. Then report the results to the whole organization and it’s measured in the next survey. Notice the multi-layered, structured, constant commitment to collaboration. Six, also look for ad-hoc opportunities to encourage people to work together across boundaries in the organization.

Here’s an example, a CEO I coached had recently taken charge of a services firm. In a media interview he was asked an unusual question. What popular song best characterizes your firm?Now, despite being entirely out of touch on current popular music. He didn’t deflect the question but saw it as a collaboration opportunity. He started a contest in his firm with a reward for the team that came up with the best song and reasons for choosing it. Entries were visible to the whole organization. More evidence of collaboration.

Then he put together a panel of judges, a collaborative group representing different parts of the organization. Then he over delivered on the award for multiple teams and recognized them at an annual event where their songs were played and they spoke about their entries. Now remember all of this arose from a random question he could have easily avoided answering but he saw the opportunity to send multiple messages in an upbeat, energizing way. That we all win by working together. It was true for him, it was true for Captain Sullenburger, and as an executive leader it’s true for you too.

You win, your teams win, and your organization wins, when you collaborate well and help others do it too.

Develop others and build a talent pipeline

– Every business is the people business. Larry Bossidy, former CEO of Honeywell and Allied Signals said, “Nothing we do is more “important than hiring and developing people. “At the end of the day you bet on people, not strategies.” CEOs and thought leaders know this, and it’s backed by research. A recent global leadership forecast compiling the assessments of leading research groups and universities from around the world determined that two of the top five critical success skills are, one, identifying and developing talent, and two, coaching and developing others. Studies also consistently find that the most talented people tend to gravitate to where they can grow the most.

They have the power to choose because organizations are fighting to get them. The best people go where they can grow. The war for talent is real, and over time the organizations who get the best people will develop and implement the best strategies and win in the marketplace.To sustain success over time executive leaders need to take a disciplined strategic approach to attracting, developing, and retaining talented people. Here’s what you should do. First, develop your people. Over the past 30 years Gallup surveys of more than 100,000 employees in 2,500 diverse businesses have revealed that one’s immediate manager has far more impact than anything else on their performance and engagement level.

Give them feedback on areas of strength and improvement and encourage them to take charge of inviting regular feedback from their other stakeholders. Help them set priorities to grow their skills and abilities in ways that are motivating to them, align with their career goals, and are good for the organization. Shape their roles or add assignments that challenge them to expand their perspective, business acumen, and skills. Give them something that requires more innovation, or is larger in implementation scale or budget, or covers wider geographic locations, or has more deadline pressure, or more people, or more complexity, and so forth.

Help them find education and training opportunities aligned with their growth goals.Encourage and support them to build developmental relationships. Give them exposure to senior leaders in action and as advice givers. This is a very strong motivator for high-talent individuals. A leading technology firm I know gives their high-potential people two full weeks of shadowing senior leaders in everything they do. A priceless experience that provides uniquelyvaluable learning and increases loyalty to the firm. Second, apply this across the whole organization.

Research shows the most successful organizations over time implement a systematic approachto first, assess the performance and potential of their managers and leaders, second, identify areas of growth and development, and third, provide opportunities and support growth and development in those areas. To attract and keep the best people it’s crucial this flows to every management level. Cascade this throughout the entire firm, and evaluate and reward managers for how well they develop their people.

As Stanford’s Bob Sutton points out based on his extensive research, “Good bosses create“employee satisfaction that leads to retention, “performance, productivity, and profitability.“How you treat your direct reports creates “a ripple effect that travels down and across “your company’s hierarchy, ultimately shaping “its culture and performance.” Always keep leading by example to influence others to follow your lead. I remember talking with the CEO of one of the largest most successful biomedical companies in the world who spoke about how once he moved across the country to live out of a hotel near where a highly talented scientist worked in order to make it easier for the scientist to meet with him.

The CEO wanted to signal strongly that high talent was a priority for the firm. It worked. The scientist joined, and it sent the message that all managers in the firm should be passionateabout attracting great people and developing them. It’s a virtuous cycle if you do it, but a vicious cycle if you don’t. Build a reputation as someone who helps people grow greatly and great people will gravitate to you. Don’t let them get away, motivate them to stay.

Communicate to motivate

– A recent study in Harvard Business Review concluded to thrive as a C-level executive an individual needs to be a great communicator, a collaborator, and a strategic thinker. We covered collaborating and strategic thinking. When it comes to executive leadership communication, here’s a principle I want you to prioritize. Communicate to motivate. One of the things new CEOs report being most surprised about in their role is how everything they say counts. People around them are prone to take offhand comments as directions. This happens as you rise through the ranks.

The more responsibility you have, the more consequences come from everything you say.When you speak as an executive, take a cue from a famous part of the Hippocratic oath that physicians take. First, do no harm. Be thoughtful and intentional about what you say. Don’t let words fly out of your mouth that will do damage to your team, your organization, or your reputation. Don’t communicate to demotivate. A few years ago, I ran a session for an aerospace leader who wanted his team to generate innovate ideas for reaching their challenging goals.

After the team worked energetically all day, he came in to hear their proposals. Before they even finished the first one, he said, ah, that’ll never work. In two seconds, he decimated their morale. There was a study of the Fortune 500 CEOs that determined a sizable majority were introverts instead of extroverts. This surprised many people, because being a CEO calls for so much communication, in so many situations, in front of so many audiences, you’d think most would be extroverts, but no. A key factor, extroverts often speak before they’ve fully formulated their thoughts and are more prone to saying something that turns out to be wrong or inappropriate.

They can be seen as high risk communicators for high level positions. This doesn’t mean that you shouldn’t speak with passion. For introvert executives, that can sometimes be a challenge.You can be energizing. Just know what you’re saying and why you’re saying it. Ensure your words and motives have integrity. Speak thoughtfully and with positive purpose. Mayor Billy Kenoi of Hawaii Island put it well in a wonderful commencement speech. He said, my father used to tell me don’t just think before you talk, think and feel before you talk.

That way, everything you say comes from your heart. Whether people agree or disagree with what you say, at least you’re being honest. So, it’s both, think and feel, head and heart. You don’t have to say everything on your mind. Chose what will best serve the people you want to lead. Choose what best helps their performance, growth, and morale. This leads to another key point. Add inspiration to information. As an executive leader, you’re not just dispensing data,passing instructions along, and doling out information.

Given your role, you’re constantly seen as the spokesperson for why questions. Why should we care? Why should we try harder? Why should we believe we can succeed? Think of the best answers to the why questions that are most likely to be on the people’s minds for your meeting, conversation, or presentation. That’s the path to feeling, engagement, motivation. That’s why I say, don’t just inform but also communicate to motivate. Speak to their motives.

That’s where their passion is, their concerns, their fears, their hopes. That’s where people get aligned and engaged and do great things, from strong motives. Gilbert Amelio, president and CEO of National Semiconductor Corporation put it this way. The leader must be able to share knowledge and ideas to transmit a sense of urgency and enthusiasm to others. If a leader can’t get a message across clearly and motivate others to act on it, then having a message doesn’t even matter. Make your message matter.

Communicate to replicate

If people can’t remember and repeat what you say, it’s as if you never said it, so keep it simple.As an executive, many people with different experiences, perspectives, and goals will hear what you say directly or indirectly. You need your communication to travel accurately when retold from person to person, across boundaries and levels in the organization. Legendary General Electric CEO Jack Welch, knowing how important this is from decades of experience said, “Managers create complexity; “leaders create simplicity.” A key limiting factor for rising leaders, is speaking too much in the language of their functional specialty.

Engineering, finance, technical language, even business jargon. Insecure managers try to sound smart. Welch went on to say, “They muddle things “with pointless complexity and detail. “They inspire no one.” But simple isn’t easy. The famous French mathematician Blaise Pascal once wrote to a friend, “I’m sorry for the long letter “I didn’t have time to write a short one.” Simple isn’t just being concise. It’s saying what matters most, memorably, briefly.

That’s crucial if you want your communication to scale. One, for people with different perspectives to understand it similarly. And two, for people who hear you directly, to rememberand repeat it accurately to others who don’t. There’s a boundary imposed by how our brains work. Large numbers of people can’t accurately remember and repeat large amounts of information. “Excess fails; simple scales.” Starbucks CEO Howard Schultz was asked why everyone at Starbucks smiled.

And he said, “We only hire people that smile.” It’s almost impossible to forget that answer. So here’s a guideline, what’s the number one thing you want them to remember and repeat? The one thing you need them to recall even if they forget everything else? Make it impossible for them not to get it. Akio Morita, co-chairman of Sony in the late 1970’s, challenged engineers to create a portable tape player so he could listen to his beloved opera music when he travelled.

He use a small block of wood to show them the target size. Simple, specific, concrete, memorable, repeatable. It led to the groundbreaking, enormously popular, and influential Sony Walkman. Similarly, Steve Jobs challenged his engineers to create a smartphone without a keyboard. And he kept repeating like a mantra, “Buttons are tyranny!” They couldn’t forget nor keep from repeating that vivid, memorable, energizing way to make his point that a touch-based user interface allowed incredible flexibility for programmers, versus programmers being tied down to physical buttons.

Here’s another point, check on key takeaways. At the end of discussions and meetings, ask people what they thought were the main points. Let them say it in their words. That’s how you know what they actually heard and remember. They can’t repeat what they didn’t hear accurately, or what they don’t remember. Discuss and redirect if you need to do so. Relatedly, a helpful practice I’ve seen executives use when wrapping up lengthy meetings such as off-site planning meetings is to leave time at the very end to pose this question, “When you get back“to your team, what are you going to say “are the key takeaways from this offsite?” Then they discuss until everyone is aligned and can repeat the same message across levels in the organization.

That technique draws on the broader theme. Executive leaders need to consider how theirmessage will be passed along by people with diverse perspectives over stretches of time to other people who weren’t there. You need to communicate to replicate. Simple isn’t easy but it is essential. Remember, “Excess fails, simple scales.”

Drive for Results

Establish priorities and focus

– When Steve Jobs returned as CEO of Apple and paved the way for its era of revolutionary success, he’d conduct annual retreats with key leaders and on the last day he would ask, “What are the 10 things we should be doing next?” After lengthy, vigorous debate, he would capturethe group’s list of 10 things on a whiteboard. Then, he would cross off the bottom seven and say, “We can only do three.” Jobs is not alone in this thinking. It’s why Jim Collins, one of the most influential leadership thinkers of his era said, “If you have more than three priorities, “then you don’t have any.” Executive leaders must establish priorities and focus effort.

Here’s how to do it. First, be a persistent prioritizer. There are a thousand and more ways every day that you and your people, despite great intentions, can waste time and lose ground. We’re constantly tempted to turn our attention away from where it matters most by things that seem urgent but aren’t, and that give us a temporary surge of satisfaction for at least doing something. But, activity alone isn’t progress and moving forward on what matters less is time and effort lost. Real progress is priority-based progress.

Separate the seemingly urgent from the truly important by prioritizing. Clarify what matters most in this meeting, project, or discussion. Then, act accordingly. Second, be a top three leader. The top three priorities should be clear and explicit at every level in the organization.Get aligned with your manager about what your top three priorities are. And, for each of your direct reports, insist they set top three priorities for their team, for each team member, and for themselves.

Ask your people what their top three priorities are and how they’re doing on them. Ask what their team’s top three priorities are and how the team is doing on each of them. If your people are unclear, coach them toward understanding the difference between urgent and important,between short-term distractions and strategic priorities. Now, is three a magic number? No, it’s better than that. It’s a practical number that drives focus. If you have a top three, you can be more decisive, energizing, set clearer direction, empower more effectively, and so can your people.

For example, Zappos CEO Tony Hsieh, looking back at a critical phase of his company’s success said, “I attribute most of our growth over the past few years “to the fact that we invested time, money and resources “in three key areas; “customer service, company culture “and employee training and development.” Some people might object that there are more than three things to do, and that’s true. But the question remains, which are your most important? Which are your top three? In the real world, you can’t do everything, but you can focus on the most important things.

All this implies something that’s difficult for many of us, but a crucial executive duty. Learn to say “no.” Near the end of his life, Steve Jobs said, “Deciding what not to do is as “important to deciding what to do.” That’s true for companies, and it’s true for products. He continued, “It’s only by saying no that you can “concentrate on the things that are really important.” Just like Jobs, executive leaders need a mindset shift from doing things right to doing the right things.Be clear, be strong.

Focus your people on what to do and what not to do. Be a persistent prioritizer, and a top three leader. Consistently ask yourself and challenge others, “What are your top three priorities, in order?”

Ensure invigorating accountability

– After you establish priorities and set appropriate goals to advance priorities at every level in the organization, the next step is follow through. Accountability, to often accountability is usedas a crude control technique. A blunt instrument that implies, “You better do this or else.”Wrong, accountability is about progress on your shared purpose. It should be invigorating, satisfying, and a source of pride. Here’s how to ensure accountability that gets the results you really want. First, focus on achieving results, not controlling people. I was asked to work with an organization whose CFO had his assistant walk around the building in the morning and take attendance on his direct reports, senior executives.

One day the CFO sent them an email, “I’m not a clock watcher but several people aren’t here.”They weren’t in their offices because they were all in a conference room, already working together on important issues. The assistant hadn’t checked the conference room. That fast the CFO sunk his credibility and lost trust with his entire team. Follow through discussions and check ins shouldn’t be about keeping people in line but rather the great results people are reaching for. Remind them how enthused you are about the great results they’re going for and why they’re so meaningful and ask them how it’s going.

Set milestones on projects for check in meetings and have regular one-on-one meetings with your direct reports. Biweekly is typical for senior leaders and turn those meetings into partnering dialogues instead of command and control evaluations. How’s it going? What road blocks are you running into? How can I help? Let’s discuss how to deal with the challenges that you face. If results fall short, you’ll handle those discussions with fairness, dignity, and respect.But don’t gear the entire accountability system toward worse case scenarios.

Second, use three types of team meetings. As an executive, in addition to your regular one-on-ones with your direct reports to discuss their progress on performance and development goalsyou should use three types of performance accountability meetings with your team. Tactical meetings, typically weekly or biweekly to deal with current operational issues. Strategic meetings, typically every four to six weeks to address matters that concern progress on strategic priorities. Long-term planning meetings, typically every four to six months often held away from the office to separate people mentally and physically from being distracted by day-to-day matters.

These meetings are to provide a fuller assessment of industry trends, relevant developments in the competitive landscape, technology changes, government policies, and so forth. At the end of each meeting, all three types of meetings, ensure you devote time to clarify action items.Who does what, and by when. Set the expectation that in the next meeting people will report on their action item progress. This way disciplined accountability is seamlessly ongoing, for everyone at every level. Tactical, strategic, and long-term planning.

Third, always connect accountability to shared purpose. Accountability needs to be invigorating,energizing, motivating. How do you do that? The way you always do it as an executive leader.By connecting it to purpose and vision. Those always reliable sources of energy. The more you connect peoples efforts to shared purpose and compelling vision the more energy they have.You can do this in your planned meetings and also in ad hoc situations. For example, when Scott Cook CEO of financial and tax preparation firm, Intuit gave out his firms first bonus checkshe added some inspiration to the appreciation for work well done.

He said, “I told everybody look at those checks, “they came from Intuit but the money comes from the customer “and we only win if we delight customers so much “they’re willing to part with their money “and tell 10 friends.” I love that last touch, “and tell 10 friends.” He reframed the management occasion of giving a well deserved reward as a leadership opportunity to connect with their purpose of empowering other businesses. And that leads right into an ad hoc opportunity for still more healthy accountability.

Influence without authority

– Getting great results can kill your career. Really? It’s not only true, it’s more common than you might think. Driving for results often gets people noticed and promoted, up to a point. Then, how they drive for results suddenly becomes a make or break factor, and by then, it’s already too late. What worked for you before, can work against you after. Peter Drucker, a towering figure in the history of management studies and executive effectiveness said this, the executive who keeps on doing what he’s done successfully before is almost bound to fail. At talent reviews in organizations I often hear executives eliminate promotion candidates, saying, he gets things done, but he’s damaged relationships, or people often give in to her, but they don’t follow her.

And as one person told me in a confidential feedback interview about an executive I was asked to coach, who routinely pulled rank on others, I don’t care if he fails. If someone treats you badly, you don’t want to help them succeed. To get things done like the best executives do,don’t rely on the power and status of your position or mere rules and regulations. Even if you have authority, influence without authority. Here’s how to do it. One, use a forward thinking influence plan that helps you get the best results without damaging relationships.

Here’s a four-step approach I use when coaching leaders. Clarify your desired outcomes. What specifically do you want? Approval of a project or support, input, advice, resources? Whatever it is, be specific. Identify the influencers. These are the decision makers for what you want and the key people they listen to. Learn what influences the influencers. What are their goals and plans?What are their concerns and fears? What are their driving motives? What do they value? Choose the best methods to influence the influencers.

Tailor your approach with each stakeholder based on what you learn about his or her specific priorities, preferences, and the way they tend to deal with people. Help them see how your proposed steps align with their motives and values and help them move toward priorities they want and away from problems they don’t. See my course on influencing others here on Lynda.com for a much more detailed, step-by-step explanation about how to influence people without resorting to rules, regulations, or rank.

Finally, in everything you do with everyone, keep this principle in mind, influence by investing in relationships. Get things done in ways that improve your relationships and reputation, not at the expense of your relationships and reputation. In every influence attempt, strive to make the relationship better because of how you conducted yourself and were thoughtful of the other’s point of view. It’ often challenging, especially with people who behave negatively, but remember this, damaged relationships damage careers. Abraham Lincoln was asked why he continued to speak kindly about his enemies, instead of destroying them.

He said, do I not destroy my enemies when I make them my friends? When you influence others, don’t make mistakes now that can haunt you later. Use a forward thinking influence plan. The more responsibility you have, the more dependent you are on the self-motivated efforts of others. As an executive, the job is too big to succeed through your own personal effort, no matter how strong your willpower. So, don’t influence with authority. Influence by investing in people.

Cultivate creative thinking and innovation

– Jack O’Neill, founder of the innovative surf equipment company that bears his name, was injured and lost an eye while testing one of the first leashes that connects surfers to their surfboards. Setting a remarkable leadership standard for commitment to innovation, he incorporated his signature eye patch into the company logo which became world famous as the company grew. In your own way you need to be demonstrably committed like O’Neill. To do it well, here are some steps to use drawing on decades of research about what creates the most fertile ground for creative work in organizations.

The first comes from Nobel Prize winning physicist, Arthur Schawlow. When asked what distinguished the most creative scientists he said they are impelled by curiosity. This definitely applies for leaders. Now you don’t need to generate the ideas, but you do need to set the example of being impelled by curiosity. You have to have it and show it. A global executive search firm study found that curiosity was one of the strongest traits associated with leadership success and successful executives were measured as having more than twice as much as other managers.

Discuss creativity best practices and examples of innovation inside and outside your organization, and encourage others to do it too. Here’s an example I love, maybe you can use it too. Doug Dietz worked for General Electric and developed large medical imaging devices. His MRI machines save lives, but he learned that although it worked well for adults, 80% of childrenhad to be sedated to be scanned because they were scared of how ugly and sterile those huge machines looked and how loud and awful they sounded. If you can’t change technology in the near-term, what can you do? Dietz got creative.

For kids, he reframed the whole experience. He made a pirate ship adventure, painting the machine and the entire room like an amusement park ride, wow! The operators prepped the kids, there’s lots of noise on the ship and you have to be very still so the pirates won’t find you.Need for sedation dropped from 80% to 10%. Kids started asking their parents when they could go back. For individuals, find ways to add creative elements to their roles. Hiring managers, for example, can pose questions in job interviews to gather new ideas and fresh perspectives from people who don’t yet work in the organization.

Reward success and failure. It’s the nature of creativity and innovation that you can’t guarantee which attempts will work. But you can predict that punishing failure will stifle future attempts.Mistakes can be a fertile ground for innovation. Years ago, a Walmart manager accidently ordered far too many large chocolate marshmallow snacks called Moon Pies. He turned the mistake into a fun local event: A moon pie eating contest. The contest became a big annual celebration aired widely on television.

Make room for some rebellion. Hewlett Packard founder, David Packard, speaks fondly of an engineer who defied his direction to stop working on a project and instead took vacation timeto demonstrate a prototype. It became a huge success and Packard publicly gave him a humorous but meaningful medal for “extraordinary contempt and defiance “beyond the normal call of engineering duty.” For teams, ensure teams are trained on healthy creative processes such as brainstorming and having people building on each other’s ideas instead of just defending their own.

Lead large-scale change and shape culture

– Studies show that only ten percent of people who had heart bypass surgery make the advised changes to their lifestyles and eating habits. This is after life and death surgery. Change is hard.Leading change is very hard. And executive leaders need to drive the most significant changes of all. Such as changes to the strategy or shaping the culture. Here’s how to do it. One. Explain why change is necessary. Why do we have to change now. Woodrow Wilson said, “If you want to “make enemies, try to change something”. Change steers straight into your people’s natural fear and resistance.

So your case for the consequences for not changing, and for the opportunities for changing,must be overwhelmingly strong. In the hearts and minds of your people, change must be a must, or it won’t happen. Two. Communicate a motivating change vision. What will be different and better because we changed? Amir Rubin, president and CEO of world renowned Stanford Hospital and Clinics, detailed for me in my research how they don’t rest on their reputation, but have great ambitions for improvement.

Shaping the culture starts with their mission. Heal humanity through science and compassion one patient at a time. The vision he sees is exceptional care every day for every patient. Rubin explains that, when you really commit to the goal of every patient every day, everything matters. Each person, each job, every part of the facility, from the operating rooms to the parking lots. Everything and everybody. He points out, “Every action we take “to get from Monday to Tuesday, then Tuesday “to Wednesday, and so on, define the culture”.

Three. Formulate the change plan. How will we get from here to there? Identify key stakeholders and gain their support. Zappos CEO, Tony Hsieh in his change plan to solidify what became their unique world famous culture, enrolled the entire organization as stakeholders, twice. You’ll see why in a moment. Identify roadblocks and prioritize action steps.To avoid the common roadblock of resistance from people not involved in creating the change,Hsieh, with whom I also spoke with as part of my research, invited input from everyone in the company, which led to an initial list of 37 potential company core values.

Which he sent out to everyone again for comment and then it was narrowed down to ten. As another action step, he compiled their inputs and contributions in their own words, withoutcorporate editing, into a 450 page book anyone can read. Empower a core team of committedchange agents to take charge of the implementation. In Hsieh’s case, establishing the valueswas only part of the change process. Now they needed to implement those values in distinctive ways. In one of many examples, Zappos offers thousands of dollars for new hires to leave the company during their initial training.

Cash, with no questions asked. It shows whether they’ve hired the right people that fit their culture. And it’s working. Fewer than one percent take the money. This leads to the fourth step.Implement and learn. Track progress and adjust as needed. Evidence of progress at Zappos, in one year 25,000 people applied for jobs and they hired only 250. Statistically, it’s harder to get a job at Zappos, than it is to get admitted to Harvard. Here’s another example.

Develop Yourself

Increase self-awareness

– My friend Joy Chen, former deputy mayor of Los Angeles, got unexpected insight from a mentor near the end of her MBA program. She had been preparing for a career in real estate investment, but her mentor said, she was a B plus at that skill, surrounded by others who were As. Deep down, she knew it was true. She did fine, though she worked very hard at subjects that came much more easily to others in the program. But, she hadn’t confronted that career implication so bluntly. Was all that time, money, and effort for nothing? Was her entire career a waste? He said, “No, it’s good news for you to hear this now.

“Real estate is a B plus strength for you. “You need to use your A strengths and I know your best one. “You can connect genuinely with anyone. “A CEO, a homeless person, people from different “countries and political parties, anyone. “Joy, you’re connector. “You really want to learn about people “and you do it better than anyone I know”. It was a revelation for her. Joy really did love learning about people and connecting with them, and seeing the new value that results for everyone when she does. And she did it all the time.

She just didn’t realize how important it was for her. What happened for Joy was a defining moment. And we all have them. It’s one of several important ways that the best executives increase self awareness to increase their potential as leaders and unleash the potential in others. Defining moments are times in your life in which you gain special insight into your authentic identity as a leader. Or, you might call it your purpose, your core values, or your mission. It’s when you get a glimpse into the true you. Down to the core.

What can’t be negotiated away, or made untrue, or undone, because it’s so central to who you are. Defining moments come in different forms. It might be words from a friend or a struggle you endured. Failure that you recovered from. A triumphant achievement. A turning point when suddenly you see things differently. Like it was for joy. As an adult, you’ve had definingmoments already and you’ll have more. I encourage you to reflect on your top three defining moments to this point in your life. When did they happen? Who was involved? What did you learn about yourself? And most importantly, what does it mean for the future you most want to have as a person and a leader? Defining moments often give you insight into your key leadership strengths.

And that’s the second self awareness factor to focus on. What are your top skills, abilities, or characteristics? Reflect on them, and also get insights from different people who see you in action. We often miss some strengths because they feel natural and normal. Like Joy, who shifted careers and formed a highly successful international business. Distinguish your A strengths from your B plus strengths and grow your As. You should also clarify your weaknesses. I define a weakness as something that, even if you invest a lot of time and energy to improve, you won’t improve much.

Everyone has them. Study the greatest leaders throughout history in all walks of life and you’ll find tremendous strengths and glaring weaknesses. But, they know their weaknesses and they build relationships with people that have those qualities as strengths. They’d partner with them, have them as trusted advisers, and delegate to them. Invest in your strengths. And relationship build your weaknesses. You should also reflect on the types of situations that trigger you to reflexively respond with fight, flight, or freeze.

Build resilience and resourcefulness

– My friend, Gary Palmer, is known as the father of the prepaid card, credit cards with preset amounts loaded on them to make specific types of purchases. For example, a $30 gift card for Starbucks. Gary had the original idea long before these cards became wide-spread, but he was young and inexperienced. So he asked a retired executive to be CEO and help him raise money for the venture. After hearing Gary’s proposal, he said, you have a bad business structure, you have no experience, I certainly don’t want to work anymore and I wouldn’t give you a dime of my money.

What now? Executive leaders need to be resilient and resourceful, and Gary’s reaction illustrates the first of several methods to build those qualities. He met resistance with creative persistence.After being told no in every way imaginable, he immediately replied, I understand, but could I ask you to meet with me for a few short minutes and share some advice? Fast forward a few months, this individual, now Gary’s CEO, was with him in Silicon Valley raising money and the rest is history.

Creative persistence doesn’t always work, and that leads to the second point. Bounce back from setbacks. Winston Churchill said, “Success consists of going from failure to failure without loss of enthusiasm.” And even more bluntly, if you’re going through Hell, keep going. Psychology research shows that people who interpret setbacks as permanent, pervasive, and personal tend to have much more difficulty than those who do the opposite, seeing failure as temporary, specific and external.

Let’s illustrate this with how Gary Palmer might have applied each step. It’s not permanent, it’s temporary. The retired executive’s no is just one person’s response today. I can ask other potential CEO’s and investors going forward. It’s not pervasive, it’s specific. The persuasive case I made today didn’t work, but I can use this instance to make the case even stronger next time.It’s not personal, it’s external. His no isn’t a judgment of me as a flawed person, the proposal just didn’t fit his preferences at this point.

If I keep going I will find a match. Someone will either find this opportunity attractive or I can even come up with another business idea. When you run into resistance and setbacks, go through those three steps and look for ways to make sense of it as temporary not permanent,specific not pervasive, and external not personal. You’ll bounce back faster and inspire more confidence in others. You’ll also want to integrate your wellness. The pressures and demands of executive leadership can be draining and consuming.

So find ways to fortify the four key elements of your well-being. Mental wellness. I coached a CEO who was named a finalist for Time Magazine’s 100 Most Influential People in the World. As he stepped into his role, his predecessor said, here’s my number one piece of advice, set aside two hours twice a week just to think and read. He said it might be the best advice he ever received because there is always too much to do unless he proactively protected that time to think and refresh his mind, it would never happen. Another CEO of a Fortune 500 firm I know frames it like this: Every week he blocks four hours to think 10 years ahead.

Keep learning

– According to research by Korn Ferry, a leading global executive search and consulting firm,with hundreds of thousands of executives accessed, and thousands of CEOs placed the number one predictor of executive success, number one is learning agility. Which they summarize as,the ability to know what to do when you can’t know what to do. Successful executives need to learn at an extra level of challenge and velocity. I call it the executive learning cycle. It’s one, the drive to challenge one’s self in the face of uncertainty, ambiguity, and anxiety.

Two, to learn quickly from those experiences, and then three, promptly apply the learning to new challenges. Here’s how to do it. One, learn from experience, challenging experiences. Take on initiatives that stretch you. Test your limits, broaden your knowledge, and expand your perspective. Look for opportunities outside your current work role too, such as advisory boards or community service projects. It’s why senior executives routinely serve on boards of directors of other firms.

Two, learn from anyone. Innovators really get this, and you should too. The artist Jack Nichols said, “Every person I work with knows something better than me. “My job is to listen long enough to find it and use it.” When you cross paths with people don’t leave without learning something, maybe even about yourself. I coached a company general council, we’ll call Ben,who had a defining moment earlier in his career when he worked at a law firm. He was trying to make partner, and to show his work ethic he was always last to leave the office.

One night a janitor said, “Can I talk to you?” Ben said, “Sure.” The janitor said, “You’ve got to change your priorities. “You’re here late every night.” He pointed to a picture on his desk of Ben’s son and asked, “How often do you see your kid?” Ben shook his head said, “Not enough,” and changed jobs. It was priceless advice that rescued him as a parent, a spouse and a leader.Three, learn at multiple levels. John F. Kennedy said, “Leadership and learning “are indispensable to each other.” A good way to ensure you’re learning what you need for the next level of responsibility is to keep learning beyond your current role.

You can learn about your business unit or function, your organization, your customers or clients, your industry, the competitive landscape, trends and technology, the economy, social changes, international affairs, government policies, and leadership skills best practices and other leader’s successes. Finally, do yourself a favor and learn from other leader’s failures too.As Eleanor Roosevelt said, “Learn from other people’s mistakes, “you can’t live long enough to make them all yourself.” Four, set learning priorities and implement learning plans.

Try this question, for you to succeed as a leader, what’s the most important thing for you to learn next? The most important thing. Establish a focused number one learning priority, and create a plan. You can do it on a six month or 12 month cycle, whichever is best for you. Here’s an example, years ago I spoke with Kevin Sharer while he was still CEO of Amgen, the giant pharmaceutical firm. He said, “I’ve got to listen better. “I’ve got to give people more space.” He had a plan, in fact he started it on the day it was announced he would become CEO.

Keep connecting

– Back when Jeff Bezos started Amazon.com as an online bookstore, people were notcomfortable buying on the internet. Today’s security measures weren’t in place, and people weren’t used to giving away their credit card numbers without going to a physical store or seeing someone in person they could confront if there was an issue. It was new. It was scary.Under those conditions, and not only that, but without any press or any advertising, here’s a question. Out of the 50 states in the USA, how many would you guess Amazon.com sold books in during its first 30 days in business? A few, a dozen? That’s the most people typically guesswhen I ask this question in seminars.

The answer, all 50 states and 45 countries. How? Well Bezos simply informed 300 people he knew about the business and asked them to spread the word. Because of the strength of those relationships he cultivated long before he needed them, it only took 300 people doing a simple favor for someone they trusted to trigger a massive multiplier effect. Now 300 is not a large number. It’s the size of a typical MBA class. If you’re a working adult, chances are you’veconnected with many thousands of people in your life already.

The key is that Bezos worked to build robust relationships proactively. He got into the habit of building a strong, diverse network earlier in his career and kept it up. He didn’t know that years later he’d be starting Amazon.com. Nobody even knew that there would be such a thing as the internet. But he did know this, in the face of a future that’s guaranteed to be uncertain, one thing that is certain is that better relationships will make that future better. The best executive leaders keep connecting and building relationships with people.

People senior to them, junior to them, and with peers. Follow their lead. In your network over time fill all three levels with strong relationships of diverse people. People with different backgrounds, perspectives, ways of thinking, and people from different countries and cultures.For each level ask yourself, how many strong, trusting relationships do I have at this level? Do I also have a broad, diverse mix of other connections and acquaintances, people likely to respond positively if I reach out to them? Use your answers to set priorities for yourself to continue building strong relationships.

Here’s some other steps to take at each level. People senior to you. Connect with people who are older or more experienced than you and gain their insights and wisdom. I strongly recommend you build a personal board of advisors of four or more mentors who will advise,coach, encourage, and stand up for you. Actively recruit them with confidence, keeping in mind that at that stage of life and career the best leaders are looking to give back to people like you.If you don’t sense chemistry, move on, keep at it, and you’ll find the right ones.

Each of the relationships is unique, so build and grow each accordingly. You don’t actually convene them as a group, but you do want to meet with each of them regularly. You want to share what’s happening for you in work and life, and ask for their thoughts. Try to see each of them at least every three months. People junior to you. My friend Gina Rudan, Hall of Fame award winner for the National Association of Women’s Business Owners has a catchy label for younger people. She calls them fat brains because studies show they have more fat content in their brains than people at later ages.

Conclusion

Next steps

– The famous orchestra conductor Benjamin Zander said when he was 45 years old, after conducting for 20 years he suddenly had a realization. The conductor of an orchestra is the one person who doesn’t make a sound. He depends for his power on the ability to make other people powerful. Zander says it was totally life-changing. He realized his job, his mission as a leader, was to awaken possibility in other people. People in his orchestra came up to him and asked, “Ben, you’re different. What happened to you?” What happened was a defining moment for him and an invitation for all executive leaders, because they’re in the same position.

They don’t make the music. They serve the people who do. The heart of executive leadership isin two words, serving others. If you’ve come this far in the program, I know that a commitment to serve is important to you. When I work with senior leaders we zero in on where their commitment to serve comes from. And their real life experience just like Zander did. It’s unique for everyone. And it’s eye-opening and energizing. And I want to encourage you to do it too.Here’s an example: One of my favorite role models I spoke to in my research is Mike Critelli, the former CEO of Postal Service giant Pitney Bowes who led them through an era of extraordinary success.

Critelli’s compass was always pointing toward “Serve Others,” even in passing conversations. At a sales conference he chatted with an employee and learned he and his wife were adopting a child. A few weeks later they received a personal letter from Critelli congratulating them on their new child along with a check for the amount of the new adoption benefit the company just started offering, thanks to that brief conversation. Due to a countless accumulation of actions like these, after he retired employees produced a video in which they expressed heartfelt appreciation for his positive influence over the years.

They published it online for everyone to see. One person after another speaks movingly about specific ways Critelli served them. Actions that multiplied over time into a reputation that attracted great people to the organization and motivated them to stay. Remember, they did this on their own initiative after he no longer had power over them. What a statement, what a legacy. It’s priceless and it’s forever. The little things matter big, they add up. When your leadership compass is pointed toward “Serve Others,” what’s the very best way I can serve my people today, this week, this month, this year? Good actions accumulate and great outcomes follow.

An unwavering resolve to serve that powers your focus on the executive leadership skills we covered in this course will help you hold steady in the near term, and stay on course for your whole career. Despite whatever changes and challenges lie ahead for you. Because changes and challenges will come, as they always do, I want you to check your progress and stay on track.Take out your calendar and put a reminder on the date three months from today to come back again and watch the course. See where you’ve made progress.

And also, as you go through the application steps in each video, notice how the tools apply to new developments in your circumstances. Take a fresh look at what areas you want to focus on,and how you can best serve the people around you. Stay with it, as Benjamin Zander put it afterhis turning point, it’s a possibility to live into. That’s what we need leaders like you to help the rest of us do. To live into possibility.

New Manager Foundations

About the Instructor

Dr. Todd Dewett is a leading speaker, writer, and coach in the leadership and life skills space.

Dr. Dewett is one of the world’s most powerful voices in the leadership and life skills space. As a professional speaker, he inspires. As a writer, he educates. As a coach, he transforms. After beginning his career with Andersen Consulting and Ernst & Young, Todd served for ten years as a decorated professor of management, until speaking and writing became full-time pursuits. He is a TEDx speaker, Inc. magazine top 100 leadership speaker, and two-time #1 most viewed author at Lynda.com. His latest book is Show Your Ink: Stories about Leadership and Life. His unique take on leadership has resulted in quotes in the New York Times, BusinessWeek, Forbes, TIME, and hundreds of other outlets. Visit his home online at www.drdewett.com.

{click here for Exercise Files}

Introduction

Welcome

– You’ve just begun a new management position. Let me guess, you’re likely excited and a little nervous, right? That’s completely normal, so please allow me to put your decision in perspective. Have you ever heard someone say that leaders are born, not made? That is absolutely incorrect. The good news is that leadership is best viewed as a set of skills. With a little thoughtful preparation it’s a set of skills you can learn. I’ll start by helping you understand how to immediately establish yourself as a leader and how to begin setting goals and expectations. Next we’ll cover topics including building rapport with the team, and what it means to earn trust and show respect.

I’ll also address several useful communication tips that will help you better connect with the team. Overall, I’m gonna challenge you to become more than simply the new boss. I wanna help you be an authentic leader. When you’ve completed this course, you’ll be ready to hit the ground running with the knowledge you need to successfully complete the first few months in your new role. Let’s get started.

Becoming a leader

To many new leaders, leadership seems mysterious, as if what makes a successful leader is somehow intangible or un-definable. It’s not. Mountains of social science tells us that leadership is a set of skills. Skills are behaviors anyone can learn with the right effort. Any nerves or apprehensions you may be experiencing right now will eventually fade as you ramp up the learning curve and begin to build and polish your leadership skills. In order to prepare you for what is to come, please know that what got you here won’t work anymore. The technical and functional job skills that earned you past accolades and positive attention are not the same skills that will enable you to be a successful leader of a team.

If you’re a great accountant, it does not follow that you will be a great leader of accountants.Similarly, just because you are a world class engineer, that doesn’t mean you’ll immediately be world class at leading a team of engineers. Leadership is a series of people- related skills that help you facilitate the work of others. It’s not about doing the work per se anymore. Your new job is to help, facilitate, structure, and plan the work of others. Now might be a good time to address a very old question. What is the difference between a manager and a leader? For years, scholars and practitioners alike have suggested the two are very different.

Using the exercise files

We’ve provided free exercise files that are available to all lynda.com members to help you get the most from this course. These files include an outline of the course that is very useful for taking notes. I suggest that you download this file and print it out prior to watching the course.Now let’s get started.

Surviving the First Month

Establishing your identity as a manager

In the first month, your goal is to set the tone by focusing on three main activities. These are learning to look like a leader, developing professional relationships, and staying visible. Okay, let’s talk about what it means to look like a leader. There’s no correct look for a leader, what is correct is defined by the norms of your organization. Your goal is to seek to understand the prevailing dress code and grooming norms in your organization. Look at other managers and how they’re presenting themselves. Your goal is to be reasonably close to those expectations.One word of caution, try not to make drastic changes in your wardrobe now that you’ve been promoted.

If you were wearing blue jeans one week ago and an expensive suit and tie this week, people might find that odd or somewhat inauthentic. Make small moves towards the norms you’ve identified. The goal is not to standout, but to fit in, in a manner that’s appropriate given your new role and responsibilities. Next, I’d like to share an interesting idea. One that some feel is a little difficult. Your goal as the new boss is not to be friends with your employees; your goal is to develop positive and personal performance related relationships. Friend relationships are all about personal bonds and interactions, friends very often find it difficult to deliver tough feedback because friend relationships don’t have a performance component, and at work, in your new role as a leader, your biggest concern is performance.

Of course, you should care about helping individuals grow and improve, but your overriding obligation is to the group, even more than any one individual. Here’s the good news, productive professional relationships like friendships can and should be personal. The difference is about proportion, friendships are dominated by personal exchanges, such as conversations about family members and hobbies. Professional relationships are dominated by performance related exchanges concerning the work at hand.

For example, talking about who to hire and how to change your process. There’s one final issue I’d like you to consider for your first month, it’s the need to stay visible. Being visible means that most of the time, most of your employees see you or know where you are and what you’re working on. The higher your visibility, the more people will feel connected to you andexperience motivation to accomplish their work successfully. True, the larger the group, the more difficult it becomes to remain visible. Having said that, work hard to allocate at least 5-10% of your day, everyday to informally chatting with your team.

Don’t schedule that time and don’t call them into your office, take the initiative to walk around and find people where they work. Simply say hello, ask how things are going, and ask what, if anything, you can do to help, and don’t forget, when you can’t spend time with everyone, you can still connect using technology. For example, you might use a weekly voicemail or an email blast to the entire team. This allows you to keep them in the loop. Highlight great work accomplishments within the team, and importantly, to celebrate significant personal events, such as weddings or graduations.

Staying connected does not have to be massively time consuming or complex. Genuine conversations start while you’re walking around. Simple weekly messages such as the one I just described can work wonders for team camaraderie and productivity. That’s it, three smart ways to start your new role successfully, know what it means to look like a leader, spend time building and cultivating positive professional relationships, and remember to stay visible.

Clarifying performance expectations

Let’s start with what’s expected of you, which is all about building rapport with your boss and your team. First, clarify your boss’ expectations of you. You want to make sure you’re both on the same page in terms of his or her expectations for the overall performance of your team.Don’t leave any room for ambiguity on this topic. Next, you need to understand your boss’ bigger picture. What are their main goals beyond the performance of your specific team? Your manager has many priorities, you are only one of them. Understanding this will have a strong influence on decision-making within your team.

In addition, talk with your boss about initial changes you believe are required in terms of the personnel on your team. Even if you don’t receive the immediate solution you desire, you’ll have planted the necessary seed for the future. Finally, request the resource improvements that you need. If your team’s performance depends on any particular resource improvements,whether that’s new computers or other tools, speak up. After covering these topics with your boss, you’re ready to meet the team to set goals and discuss group norms.

In your initial meeting, be clear about the team’s performance in the past, today, and in the future. You want to recognize recent accomplishments and milestones that preceded you.Share the main goals for the next performance period and any thoughts you wish to add about long-term performance goals. Sometimes, goals are dictated in a very structured manner. For example, in many sales organizations, a salesperson is simply handed a number to achieve.However, to the extent possible, try to build a collaborative dialogue around goal setting.

This is more motivational than merely dictating goals. After discussing goals, next, ensure goal clarity by talking about the major milestones to be accomplished in support of each goal.Determine exactly who’s responsible on the team for each milestone. One more useful tip, schedule personal one-on-one follow ups to ensure you have strong goal agreement and clarity. Next, have the group define team norms. Norms are informal rules the group adopts in support of productive behaviors.

Norms have been shown to be more effective than formal rules and regulations in terms of guiding behaviors at work. Defining your norms is up to you and the group. There is no perfect set of norms. However, consider discussing these popular norms, often associated with high performing teams. Being positive and respectful, showing up on time, and being prepared. The norms become your frame of reference when the group reflects on its interactions and decision-making.

After agreeing on norms, be sure to write them down, then distribute them to all group members. Most importantly, make sure the norms are posted visually in one or more relevant places. Also, don’t forget, norms must be enforced to have power and this doesn’t have to be a negative event. It can even be funny. For example, when someone’s late to a meeting, they have to contribute a dollar to the office coffee fund. Getting a grip on performance doesn’t have to be complex.

Start by clarifying expectations with your boss, then focus on your team and nail the goals and the norms required to make you successful.

Feeding your learning curve

Here’s a simple truth. When you step into a leadership role, it’s guaranteed you will work morehours than the average employee. That’s never so true as during the first few months of a new leadership role. Let me offer a comment about simply surviving and maintaining balance or atleast rapport an understanding with your closest friends and family members. Leadership roles are very demanding and can put a strain on family time and personal time. Compared to the typical employee, you’ll inevitably work a few nights and weekends. Become a proactive communicator about these topics.

Make sure your friends, your spouse or partner, and your children have clear expectations about your professional role and its demands on your time. Strive to schedule specific time to engage in activities with your loved ones and work hard to ensure those activities represent high quality time together. The more successful you become and the more you receive promotions in the future, the more necessary it will become to focus on the quality of thoseinteractions, more than just quantity.

As I’ve stated before, the skills and knowledge that helped you earn your promotion are not the same skills and knowledge that will make you successful moving forward. Now, you need to build new leadership skills, as well as a bigger knowledge of the business. Let’s consider several possible sources that can help you feed your learning curve. The first step to building your new leadership skills is to identify several great resources. One useful habit to form immediately is to start bringing relevant learning materials with you wherever you go, whether it’s a book or an app on your phone.

In the area of leadership and organizational life, you’ll find many useful and engaging books, articles, blogs, apps, and podcasts covering every aspect of leadership, not to mention the videos you’re watching right now. Start using them whenever you find even a few minutes of downtime. Next, commit to relevant leadership-related training. Training might be online or in a classroom setting and it might be provided by your organization or you might consider proactively purchasing training in the market.

Training topics, run the gamut. From soft side leadership-related skills to hard side functional training relevant to your industry. Collaborate with your manager and choose what’s right for you. Building your professional network is another great way to gain leadership skills.Networking refers to active attempts to increase the quantity and quality of professionals with whom you are connected, particularly inside the organization. Starting right now, I want you to consider lunches, coffee breaks, or any form of downtime at work as an opportunity to build or strengthen your professional relationships.

A robust network keeps you in the know and accelerates your learning. Your new role also requires you to spend time learning more about the business. You need to understand the basic duties and responsibilities of all roles in the group. How information and work products flow into the group, and how the work moves downstream towards the customer after your group has completed its work. To accomplish this, you have many sources inside the organization to study, such as organizational charts and process manuals.

These collectively define our standard operating procedures or simply put the way we do things around here. You have a lot to learn, try not to look at these action items as discreet events, do what all great leaders do and get focused on continuous learning.

Connecting With the Team

Building initial rapport

Great rapport is about comfortable positive interactions that support the production of quality work. Building rapport isn’t complex or mysterious. While it’s true that as a leader, you must project confidence and competence, building rapport is really about you understanding and appreciating each of your team members. Establishing rapport requires positive conversations about the tasks at hand, but it also requires a little personal conversation. I want you to remember to not talk about work issues 100% of the time. To build great relationships, you have to let them get to know you as a person.

Use a small portion of time; say 5-10% discussing appropriate personal issues so they can get to know you as a human and not just as a boss. Don’t completely separate work life and home life. You should feel comfortable sharing a little about who you are away from the office. For example, your biggest hobby, your favorite sports team, or maybe little facts about your family.Next, I want you to become aware of one of the most interesting decision-making challenges we all face, it’s called projecting.

Projecting is when you think others think like you think about a particular issue. It’s a quick unconscious assumption that’s rarely accurate and can get you in trouble with the team in a hurry. Avoid projecting when you’re talking to your team, whether you’re talking about small issues or big issues, try not to assume their preferences identically match yours. For example, ask, where would you like to go to lunch, or what do you think about this potential hire?Ultimately, you might make decisions that your team won’t always agree with, but when they feel they’ve been heard and understood, they’ll accept your decision better.

Now just as you needed to share a little bit of information that’s personal about yourself to build rapport, you also want to strive to discover personal aspects of each team member. Get to know each member of your team personally. Strive to see them as unique individuals. Listen carefully to what they say and look at how they dress and interact. Check out the pictures and other decorations in their workspace. You’ll begin to see more than just a person who’s technically competent. Building rapport really is about seeing them as vibrant individuals and not merely as human resources.

One final aspect of building rapport involves different ways you can show respect for your team, through brief comments, written notes, phone messages, texts, or in person, there are many opportunities to demonstrate gratitude. Let’s be specific, you can show appreciation for the efforts they expend, the outcomes and milestones they achieve, and for the expertise they possess. Often, employees don’t believe that their boss fully understands their job. In response, give them opportunities to demonstrate their expertise.

Of course, it must be sincere, but it can be as simple as asking someone to explain a task or a process to others. By acknowledging their skills and abilities, you’re highlighting the importanceof having them on the team, you’re demonstrating respect. Having rapport, that sense of comfortable positive interaction is one of the hallmarks of a high performing team. You can experience strong rapport, if you’ll be professional with your team and a little personal. Stop projecting when it’s time to make decisions. Get to know them as unique people and find a few creative ways to show respect.

Explaining your decision-making style

There are many approaches to decision-making. I’m going to discuss the three most basic approaches. While you’re listening, I want you to think about which one best defines you. Keep in mind, there is no perfect approach to decision-making; there are always different possible approaches. The three most basic forms of decision-making are: Autocratic, Collaborative, and Democratic. Autocratic decision-making is defined by you making a decision with no inputneeded from the team, followed by telling the team your decision. Collaborative decision-making involves a partnership or a collaboration between you and the members of the team.

You will ultimately make the decision, but first you wish to seek input from the team. Finally, democratic decision-making involves you allowing the team to make the decision irrespective of what you feel the decision should be. Of course, over time all of us use a mix of these approaches. However, research does suggest the best overall decision is to rely significantly on the collaborative approach with much lighter use of both the autocratic or the democratic approaches. Before you first formally meet with the team, be prepared to discuss your approach to decision-making.

You might even choose to use some of the specific labels we’ve been discussing. No matter which path you choose for a given decision, remember that all great decisions should be followed by great explanations. Explanations are your attempt to offer honest and specific clarification for the decisions you make. Over time, your team will not enjoy every decision you’ll make. Sometimes certain people will like your decision and others will not. In any case, your goal is to offer clarity as to why you did what you did. Even when someone doesn’t like your decision, good explanations make the decision seem more just and acceptable.

Explanations make your process transparent, which shows you to be honest and trustworthy.When you lack transparency and don’t offer quality explanations, your team is left to dream up their own explanations for your behaviors. I’d like to focus for just a moment on one specific aspect of decision-making; making decisions that you know others will not like. For example, you might have to tell someone that the team will not get the budget increase they expected, or that there will be no raises this year, or that someone did not receive the promotion they desired.

Here your objective is to clearly own your decisions. Many times, due to the tension in the situation decision-makers will blame others instead of properly owning the decision. They might say this decision came from above me or I’m sorry but management won’t allow that right now, or some other way to take the blame off of themselves. Avoid blame; your goal is to always provide a clear and honest explanation. The more difficult it is to tell someone the decision you made, the more this is true. The good news is that when difficult feedback is given to a team member, if it is delivered with sincerity and if you own your decision, they will still respect you.

Remember, great decision-making starts with understanding your style and making sure your team understands it too.

Breaking the status bubble

When you’re promoted to a new level in your career, you have to be sensitive to your new status. Status at work is tricky. On the one hand, you can’t physically see it, on the other hand it’s real and people react very strongly to it. I’d like to refer to is as the status bubble. You’re status surrounds you and often makes it more challenging to interact with you. For the context of this video, I’d like you to concentrate on the relationship between you and your team. Now that you’ve been promoted, believe me, even if you feel like the same person, to them you’ve changed. You’ve assumed a higher status.

Like it or not, your promotion removes you from them and some will now view communicating and relating to you as more challenging compared to before you were promoted. The mere fact that you’re now the boss often makes them hesitate more and censor more for fear of not meeting your expectations or not pleasing you. Even if you’re the nicest person in the world, that is the affect of status. Your job is to attack the status bubble. Consider these tactics. First, don’t allow your new status to become the elephant in the room.

Openly discuss it with your team at least once. Tell them you’re excited about the new role and that just because you’ve been promoted, they shouldn’t hesitate to speak up and talk with you whenever they feel it’s necessary. Next, occasionally seek feedback about how you’re doing.Your new role will require you to give them feedback, both formally through the employee evaluation process and informally through daily conversations. To reduce the status bubble, show that you want to know what they think about you as the new boss.

Once in a while, ask for their thoughts and be kind and receptive in response. Listen carefully and offer a genuine thank you. Another great tactic is self-deprecating humor. To appear human and approachable, few things work as well as making fun of yourself. Think about the errors you’ve made at work. The unexpected embarrassing moments in your life, or something silly you once did. Find the right time every two or three months to share one of these incidents with the team. When you show that you’re comfortable laughing at yourself, you becomeimmensely more approachable.

Building bonds with your team isn’t always about humor. In fact, sometimes it’s just the opposite. One, surefire way to break this status bubble is to encourage debate. Many times, whether informal meetings or informal discussions, lower status employees choose to not speak up when they disagree or wish to add another thought. They often precede speaking up as a risk. Your goal is to reduce the perception of risk by positively embracing difficult, but well-intentioned discussion.

When the team sees you honestly listen and positively respond in the face of criticism or debate, they will view you as fair. As a result, you will have increased the odds of pulling more people into the conversation. One last comment, you can break the status bubble by showing genuine gratitude. It’s often been said that the two most important words in business are thank and you. A thoughtful thank you comment or thank you note, when both earned and deliveredsincerely can be a powerful relationship builder.

Your new role comes with a heightened status, but it doesn’t have to cause unnecessary problems. Breaking the status bubble is about removing barriers to communication so that you can have the robust dialogue that creates great teams.

Building Trust

Signaling fairness and integrity

In a professional context, integrity is the quality of having and using, clear and meaningful ethical standards. Being fair at work is one general way to demonstrate your integrity. However, it is important to be very clear about what we mean by the word fair. Being fair refers to equal opportunity, not equal distribution of outcomes and resources. Stated differently, being fair means you treat people the same by creating a positive and transparent workplace, but you also treat them differently based on their performance and their needs.

Integrity and fairness matter, because they impact trust; one of the key qualities present in higher performing teams is trust. It’s one of the intangible assets that helps move a team past mere compliance towards deep commitment, commitment to each other and to the work.Because trust is so important, always remember these two things. First, trust takes a lot of time to build, but can be lost in an instant. Protect it, like the important asset it is. Second, actions speak louder than words.

You don’t have to tell people you are trustworthy when you spend your time showing behaviors that demonstrate trustworthiness. Remember to live by the old saying, walk the talk. When you espouse certain standards and expectations, you build trust by doing what you say. Speaking of behaviors, there are several behaviors at work that are particularly influential in determining whether or not people view you as a person of integrity. For example, openly address integrity as a core part of your team. This requires you to be consistent and clear about your ethical standards and your expectations of the team.

You can show the team that you mean it by challenging any issue or decision that encourages dishonesty or rewards unethical behavior. One of the best ways to demonstrate integrity is to share credit widely. Anytime you and the team pass a particular milestone, reach a big goal, orreceive recognition, don’t steal the spotlight for yourself. Be sure to acknowledge everyone’s contributions and make the team feel included in the win. It’s also important to understand when to share the pain. When I say pain, I’m referring to challenges and difficulties that are not avoidable.

These might include layoffs, lack of pay raises, undesirable travel, or other types of challenges.The rule here is always the same, to the extent possible, you share in the burden you are asking the team to undertake. For example, if they will not receive any raises this year, it would not be wise for you to accept a raise this year either. Another great way to demonstrate integrity is to make decisions based on the merits and not based on any other non-meritorious standard.

In particular, be sure to steer clear of favoritism, which is a way of making decisions in a manner that benefits only your favorite people at work. Assign work based on the skills people have, not simply on how much you like them. One final great way to demonstrate integrity is to be willing to get your hands dirty. Whenever you ask the team to achieve a very difficult standard or to engage abnormal work, such as working on a weekend, you should be the first to sign upand participate arm-in-arm with your team.

To build a track record of success as a leader, few things are as vital as strong integrity. When the team trusts you, they’ll listen better and they’ll perform at a higher level.

Becoming a servant leader

Until recent years, the common understanding of leadership might be described as mechanical and structured, maybe even cold. It involved things such as providing resources, setting goals, and measuring performance. These are still basic parts of leadership and organizational life. But today, we’ve evolved our thinking further to include a more progressive and compassionate understanding of how interpersonal relationships affect productivity. No longer are employees thought of as simple human resources to whom orders should be provided. Now, we recognize that employees are our colleagues and collaborators, our partners with whom and through whom progress is achieved.

One of the most popular paradigms within this evolved view of leadership is servant leadership.Servant leadership is squarely focused on the need to build and develop your employees as your first priority. Servant leadership is predicated on the idea that helping others succeed, in and of itself, is a righteous goal. It’s the right thing to do. Of course, as a great byproduct, when you work hard to maximize the growth of your employees, your team becomes more successful and thus, you become more successful. To become a successful servant leader, I want you to focus on these five particular behaviors that will guide you as you develop: committing to employee development, developing self awareness, listening effectively, feeling empathy, and promoting healing.

Let’s quickly consider each one. The first is a strong commitment to the growth of the people around you. This is the hallmark of servant leadership. You must have a sincere conviction to develop others based on a belief that people have an intrinsic value beyond their contributions as workers. That is why ultimately you seek to support your employees’ professional and personal growth. How do you do that? It all starts with self-awareness. A servant leader understands their personal strengths and weaknesses.

It’s from a base of solid self- awareness that all of the other behaviors I will mention in a moment become possible. You will begin to build self-awareness when you spend time in honest reflection about your work and your work relationships. It also helps to seek out and utilize a few sources of candid expert feedback, for example, a coach or a mentor. Next is listening. Any successful leader must be a strong communicator which always includes stronglistening skills. However, many leaders err problematically on speaking far more than listening.

The servant leader knows that he or she will maximize the outcome of any conversation by listening liberally. This allows you to fully understand others’ positions. It also allows you to seriously consider body language, which often indicates things that remain unspoken. Now let’s consider empathy. A skill that is very important, though often considered more difficult to build.Empathy is the capacity to recognize emotions in others, which then allows us to feel some amount of compassion, caring, or concern in response.

Being able to empathize with someone is partially driven by your personality, but it is also recognized as a skill that can be built through increased self-awareness. When you make empathizing with others a genuine focus, it won’t be long before you start to understand them better. Another vital component of servant leadership is the ability to facilitate healing. Even great teams experience plenty of conflict. The difference is that great teams have the ability to heal wounds by laughing at themselves and making apologies when needed.

When you model selfless behaviors, make your communication positive, and admit when you’re wrong, you can turn conflict into a positive event that makes the team better. In the end, servant leadership is practical, through your focus on developing others, ultimately, you’re building a stronger team.

Increasing your authenticity

If you think about what it means to project to others that you are a leader, you think of projecting competence and confidence. These are great characteristics. You project confidence through your words and all of your non-verbal behaviors, such as eye contact and tone of voice. You project competence, ultimately, through the work outcomes you produce. However, it’s vital you understand that most successful leaders, that is the ones who create the strongest teams, are not merely confident and competent. They are also real, raw, somewhat unfiltered, what many refer to as authentic. To be authentic means to be open, to show your humanity, to maintain flexibility, to be humble, and to always model the way.

These are the characteristics that allow your confidence and competence to have maximum impact. I’ll admit that some view these behaviors as slightly risky, as if they somehow indicate a lack of strength. That’s not accurate. In fact, it’s just the opposite. So, let’s briefly consider each behavior. To begin, remember to remain open as a decision-maker. Recall the three major approaches to decision-making: Autocratic, Collaborative, and Democratic.

Autocratic is one-way, you are giving directions. Collaborative is a two-way dialogue, you receive input and then make the call. Finally, democratic is purely driven by the employees, not you. The point here is simple but powerful. Compared to the typical professional, an authentic leader is more careful to err on liberal use of the collaborative approach and to a lesser extent, a democratic approach. The authentic leader also understands what it means to be human.Here, I’m referring to those things about us that indicate ways we are all imperfect.

In order for your team to see you as a complete human, they need to know more about you than all of your successes. Think of your past professional mistakes, failures, and learning moments. A few times each year, find an appropriate time to share one or more of those with the team. This will make everyone on the team see you as more real. It also makes them more willing to engage the process of professional growth. An authentic leader is also flexible.

Just because you have the authority to make decisions, doesn’t mean you always have to be right. Most of the time, you will find it advantageous to stick to your guns when you make a decision. However, it’s very useful a minority of the time, to relinquish your position and allow others to speak up. When done only on occasion, this helps you be seen as fair and reasonable as a teammate, just as much as a competent boss. Next, let’s consider the issue of humility.Humility refers to an aspect of intelligence which keeps us from thinking too highly or too often about ourselves.

It helps us maintain a bit of modesty by keeping us focused on how much we have yet to learn.You can be very bright and very accomplished, but without humility, you risk being viewed as arrogant or conceited. You can demonstrate humility by asking questions to reveal to others what you don’t yet know. Another way to show humility is by promoting your employees to others more than you promote yourself. Finally, you can demonstrate humility by looking for opportunities to share authority even when you don’t have to.

Here’s one last characteristic of an authentic leader. They consistently model the way. They do not merely espouse useful standards of behavior or performance, they demonstrate them effectively everyday. Consistently matching your behaviors to your values and standards makes you real and human. Confidence and competence are great, but the best leaders are truly authentic.

Communicating Effectively

Communicating proactively

Effective communication is proactive. To be proactive refers to ways you can help your audience hear you and make sure you hear them. Yes, what you actually say to someone matters a lot, but what you say is only one variable that determines how effective your message will be.Stated differently, it’s not always what you say, but when you say it and how you say it. Let’s consider several different tactics to help you communicate proactively. First, let’s think about timing. Everyday, professionals are pressed up against deadlines and a seemingly never ending list of tasks to be completed.

Combine that with our level of efficiency and we often communicate too little with others. What I want you to remember is that Benjamin Franklin was correct, “An ounce of prevention is worth a pound of cure.” Being proactive, matters. So let’s break it down. What does being a proactive communicator mean? When you’re speaking with someone, look for important nonverbal cues.Be careful to watch the eyes and the forehead for any signs of confusion or disagreement.When you see them, finish your point, pause, and ask them if they’re still with you. Now, if the look of confusion was strong, don’t accept a simple yes but ask them to summarize or reiterate your main point so you can both be sure you’re on the same page.

Another great proactive tactic is to ask questions. This works equally well one-on- one or in small group settings. You can’t assume that everyone clearly understands you. Once or twice while speaking, ask the person or team members if they have any questions. Try it again when you finish making your last point. By asking for questions, you’ll build enough comfort in the interaction to encourage people to speak up on their own. One important aspect of being proactive is asking people to clarify.

When you’re not following what the speaker is saying or you sense the group isn’t following along either, speak up. Don’t interrupt, but don’t miss your chance to speak up at the right time. Remember, an ounce of prevention will save you a lot of headaches later. The last aspect of being proactive involves predicting challenges before they arise. I know you’re busy, but there’s a small number of conversations you have everyday that are so important, you should prepare for them. Before entering a one-on-one conversation or a meeting, try to identify the one or two issues that are hot button issues.

Issues others will wish to debate or will feel are difficult or challenging. Never let them surprise you. Be ready to address those most difficult aspects if you wish to address the topic at all. That is proactive. Finally, let’s briefly consider the role of Candor versus Civility. Civility means to be nice, positive, and congenial. Candor refers to straightforward, candid, and sometimes blunt conversation. Both are important aspects of interpersonal communication. Civility is vital, but candor is even more important.

Too much civility is often used in order to avoid hurting others’ feelings. What is even more important is complete clarity about the topic at hand and everyone’s perspective about that topic. That’s candor. Give everyone the best chance possible to understand you. When you communicate with others, remember, use the techniques we’ve just discussed and be proactive.

Understanding communication options

You communicate many messages everyday and each one has a different level of importance.For any given message, first, ask yourself, how important is this message? The more important the message, the more you must work to ensure it’s understood properly. Your second task is to choose the best communication option. Is it telephone, teleconference, instant message?Here’s a great rule of thumb, when in doubt, choose the highest quality option. If you don’t choose the highest quality option, you’re asking to be misunderstood. Today we have more communication options than ever before, thanks to the evolution of technology.

Every communication option represents a trade-off between efficiency, how fast communication takes place, and effectiveness, how fully your message is received. For example, consider these classics, written memos or reports. Compared to modern technologies, they are much slower to distribute, though they do provide a tangible record of communication.Similarly, email provides a record and it’s very fast and efficient. As opposed to texting or using an instant message, email affords you the opportunity to craft longer messages and to attach any relevant documents. Email today remains very popular, though it’s overused, if not abused on a regular basis.

There are two main reasons we misuse email all the time. First, we use email as a way to avoid conflict. Instead of speaking to people about difficult situations, we often hide behind our computers. The second main reason we abuse email is because we wish to formally documentall of our communications. As a result, many conversations that should have been, for example, face-to-face or on the telephone, are relegated to email. Here’s my advice, you use email when higher quality options aren’t available.

Further, if you’re feeling emotional about a difficult situation, don’t be in a rush to hit the Send button. Be a thoughtful editor or let the message sit in your Draft Folder for an hour or an entire day. After the emotions subside, you can either choose to have a one-on-oneconversation or carefully write the message you really wish to share. One final thought, don’t be seduced by the instant gratification offered by texting and instant messaging. They are useful, however, it’s well- known that we send error-filled messages all the time, and since these messages are much shorter than emails, the damage caused by the errors can be much larger.

So use these options sparingly. The most important point here is that the very best option isface-to-face communication. Only face-to-face do you hear the words most clearly, see all the non-verbal cues, and have an opportunity in realtime to ask questions and correct course if needed. Every message you share is unique. So be sure to think about how to communicate it.For very important messages, go face-to-face, use the telephone, or video conference options.For messages of modest importance, email might be just right.

For urgent or for very simple messages, texting or using IM might be perfect. In the end, you have many communication options from which to choose. You’ll become an effective communicator when you learn to match the needs of the message with the proper mode of delivery.

Making feedback work

Among the many types of communication one might have at work, few are as important as giving performance related feedback to others. Some professionals will refrain from giving feedback they feel would be useful in order to avoid conflict. Other times, they will correctly choose to deliver a feedback, but their delivery isn’t good. As a result, they unintentionally damage relationships. Good news, it doesn’t have to be that way. The basics of delivering great feedback are well known. If you pay attention to the following approaches, you will dramatically increase the odds that your feedback actually helps others.

First, good feedback is very specific, not general or vague. Never tell someone they can do better without specifying or quantifying exactly how they could perform better. Similarly, if providing critical feedback, don’t simply say the work does not meet your expectations, but instead, clarify in very concrete terms the particular ways the work did not meet expectations.For instance, instead of saying: you can perform better or I expect more, you could say: I think sales could be 10% higher over the next three quarters in both of your territories.

That’s a good example of specificity. Next, good feedback is always delivered positively. You will often need to deliver critical or difficult feedback, but even that type of feedback can be delivered in a positive light. It all depends on how you frame your comments. For example, you can tell someone they failed to meet the production standard by 30%, that’s a negative frame.Or, you can tell them you wish to help them seize the opportunity to reach the standard during the next performance period.

That’s a more useful positive frame. It’s also important you give people the right amount of feedback, because everyone is different and has a different ability to successfully digestfeedback, I want you to use this rule: Only give someone as much feedback as you feel they can honestly take; give too little, you’re not being aggressive enough; give too much, you inadvertently risk offending the person. Based on what you know about them, strive to provide what they need without exceeding what they can take. Finally, great feedback is two-way; not one-way.

It is very important for you to deliver performance feedback you wish to deliver. It is equally true that people often listen and care about feedback to the extent they felt part of a conversation, as opposed to merely receiving comments from you. Creating an active dialogue is always the best choice. After you’ve thought about the content of the feedback you wish to deliver, consider the conditions under which your delivery will be most successful. First, remember that great feedback is delivered in person when possible. The more important or difficult the feedback, the more you should show respect by delivering face-to-face.

Great feedback should also be delivered as quickly as possible, so that it’s relevant. The more time that elapses since the incident, the more fuzzy it becomes in the person’s mind, so deliver feedback as soon as possible. Further, be sure to own any feedback you provide with liberal use of I statements. Such as, I rated you with three because, make sure they know these are your decisions. If you don’t take ownership for your decisions, you come across as weak. It’s also important to find an appropriate place to deliver feedback. Though it is acceptable to praise people publicly, always deliver difficult comments in private, and consider using their office or a neutral location, such as a conference room, as opposed to your office.

Creating Productive Meetings

Knowing when to have a meeting

Meetings are overrated. Now, I’m not talking about the simple one-on-ones we often have. I’m referring to a meeting that involves several people. We often call meetings for a variety of unproductive reasons. First, people often assume that if any decision is to be made, a meetingshould be scheduled. It is only fair to make a decision when we’ve had a great team debate, right? Not really. The first rule of meetings is when in doubt, do not call a meeting. In practice, the opposite is often true. For example, having a meeting on a regularly scheduled basis every week, just for the sake of it, is not a defensible rationale.

To give updates on a project in a meeting with the same people at the same time every week, might be productive and it might be a waste of time. What people fail to realize is that any meeting comes with many difficult overhead costs. To have a meeting, you have to schedule a time, which can be difficult if many people are invited. You also have to spend time planning the meeting. That doesn’t even include the lost productivity that happens during an actual meeting. When a group is in a meeting, there are many people with different agendas, views and concerns.

In some ways, these differences create quality conversations. In other ways, they cost the team extra time and harm productivity. Many organizations are starting to agree. We have to be smarter about when to call meetings. Here are the five major justifications for calling a meeting.First, call a meeting when you must make particularly large or important decisions about which the team cares a lot. In that case, the face-to-face forum allows you to have the discussion you need. Think of it this way, if the team will expect to have a voice in the decision, consider a meeting.

Next, use meetings to make major announcements. When particularly large events have happened, strategic directives have been announced, or big unexpected changes have occurred, consistency in message delivery is vital. For example, maybe the organization has decided to acquire another organization or maybe key government regulations just changed that will affect the team. Delivering messages like these uniformly to everyone at a meeting can be very useful. Another good reason for a meeting is the classic kick-off meeting. For a new or large scale projects, a kick-off meeting provides many benefits.

These include the ability to fully explain the new initiative, to ensure team member role clarity, and to set goals and expectations concerning performance for the new project. A kick-off meeting also allows the opportunity for team members to ask questions, allowing you to establish a two-way dialogue in order to ensure that everyone is on the same page. Another great reason to have a meeting is called a premortem. A premortem is a meeting designed for imagining all of the things that might go wrong once the project goes live.

It’s a type of planning meeting that should result in the identification of a small number of issues that might become challenges or obstacles while working on the project. It’s a great time to proactively and preemptively decide on a strategy for dealing with these predictable bumps in the road. In contrast to a premortem is the postmortem. Following the completion of any large effort, it is useful to call a meeting to gain closure and to ensure learning is captured in a way that benefits future projects. Think through the problems that were solved, the solutions that were used, the resources that were employed, and any new contacts the group made.

Deciding who should attend a meeting

Let me ask you a question, what is the right number of people to have in a meeting? If your goal is to maximize productivity, how many people should be there? This is something of a trick question. There is no actual correct number, but there is one great guideline. Invite the smallest number of people honestly required to get the job done. Remember, adding people to a recurring meeting when necessary is easy. Removing people is next to impossible. In addition, it is smart to try to minimize the levels of hierarchy present in any meeting. Generally, the fewer levels present, the more robust the conversation.

When thinking about inviting someone to a meeting, remember, when in doubt don’t extend the invitation. If you do invite someone, be sure that they are one of the three main types ofpeople who belong at a meeting: the experts, the affected, and the sponsors. The experts are the people with detailed knowledge and the relevant talent related to the topic at hand. The experts provide the fine grained expertise, the in-the-trenches operational knowledge required for success. Next, we have the affected.

Which individuals or groups will be forced to live with the decisions to be made at this meeting? They are the affected and they often make great meeting participants. Having them present helps lay the groundwork for the future implementation of any decisions made during the meeting. We must also consider the sponsors. Most meetings need a sponsor. This is a higher level person who openly supports the project and the work of the team. The more important the project, the more you must clarify sponsorship. Though they only need to occasionally attend meetings, a few appearances will make their presence felt and will signal genuine support.

Thus, everyone involved will understand the importance of the work to be done. Unfortunately, as opposed to only inviting the people we just discussed, people in charge of meetings often invite a lot of people who really do not need to attend. Let’s be clear, there are at least three types of people you want to avoid inviting. Don’t invite too many experts beyond the number you honestly believe are required. If you have 20 engineers with the needed knowledge, you don’t need to invite all of them. Recall that your goal is to invite the fewest needed people.

Also, don’t feel compelled to invite someone simply because they have been associated with the topic in the past. Many people feel that inviting someone like that is a type of courtesy. No!Unless they are the expert or sponsor you currently need, don’t allow your meeting overhead to grow by inviting non-essential personnel. Finally, and this is a big one, you don’t want to invite people you feel are necessary only for political reasons. A political appointee at a meeting is someone you feel you should invite, because if you don’t, you think some other leader might feel shunned or annoyed.

Anytime someone is at the meeting and people wonder why or perceive it as political, the conversations will be stale and the meeting will be unproductive. Nothing will ruin a great collaborative conversation in a meeting faster than the presence of a spy. Meetings don’t have to be bloated and unproductive, not if you focus clearly on inviting only the right people. That’s the experts, the affected, and the sponsors.

Effective meeting rules

Even if you know when to call a meeting and who to invite, that doesn’t mean you’ll necessarily have a productive meeting. Without a clear plan and decent facilitation skills, it is very easy for highly skilled professionals to gather for an hour or more, yet accomplish nothing. Every great meeting operates within certain parameters defined by a few thoughtful mutually agreed upon rules. After initial social interaction cease and the meeting begins, it’s useful to briefly note any relevant meeting rules. There is no one set of perfect meeting rules, however, here are several common ideas for you to consider.

First, make rule number one, the need for all members to arrive on time and prepared.Meetings have a palpable and emotional mood. Nothing spoils the mood in a meeting quicker than participants who show up late and unprepared. Next, clarify the meeting boundaries. Start by stating the goal for the meeting and any general comments about the scope on the topics to be addressed. This rule reduces the likelihood of the dreaded Scope Creep. Scope Creep is the unintended and unexpected shifting of direction into topics not central to the purpose of the meeting.

It is also useful to note important, acceptable and unacceptable behaviors during the meeting.Aside from showing up on time and prepared, here are several common examples. Be critical, but also positive. No interrupting others or no unnecessary use of electronic devices during the meeting. One of the most important meeting rules involves decision-making. Specifically, the group will benefit from agreed upon rules for making decisions. First, let’s mention what not to do. Don’t overuse simple voting techniques.

Voting always has winners and losers. Instead, consider this approach, the single most important method is to strive for consensus through discussion. Sometimes, however, consensus is difficult even in high-performing teams. Ask people whether or not they are meaningfully bought in. For example, a 70% rule; if someone is 70% in agreement, then they agree to support the group’s decision. A rule like this allows us to make progress when consensus is difficult. One last great meeting rule concerns penalties.

If you don’t follow the agreed upon rules, there should be penalties. Why? Because all great teams know that behaviors have consequences. Think about simple ideas such as having to put a dollar in the team’s lunch fund if you arrive late. Your use of penalties can and should be fun, but actually using them is very important if you want a positively shaped meeting behaviors.Meetings don’t have to be too long and unproductive. I want you to develop your own version of the rules we just discussed. When you do, they will help you accomplish more at each and every meeting.

Meeting tools and roles

You can make every meeting better by using the right tools and by understanding which roles members need to fill. Let’s start with meeting tools. The three most important meeting tools are the agenda, the parking lot, and team member homework. Contrary to popular opinion, creating and using an agenda doesn’t have to be complex. However, it must be clear and facilitated correctly. Pay attention to these core elements of meeting agendas. Start by making it known who is formally responsible for creating the agenda. Someone must own the process of assembling and ordering the topics.

Next, realize all great agendas follow a schedule. Before the meeting ever begins, people must know when to submit any issues they wish to be included in the agenda. Make sure the deadline is set several days before the meeting and then make sure the deadline is clearly advertised to all attendees. It’s also important to ensure agenda integrity. You want to stick to the list of issues on the agenda. There might be occasional exceptions; but this is a great rule.

Further, the order of the items should be fairly strictly followed since they were assembled in order of importance. Try not to let personal interests, avoidance of difficult decisions, or overtpolitical moves change the order of the agenda items. The next tool is the parking lot. It helps you avoid Scope Creep, which was mentioned earlier. The parking lot might be a computer file, a white board, or a pad of paper used to document important work-related tangents that pop up during meetings. If someone brings up a topic that needs to be addressed, but not now, given the scope of the current meeting, it goes in the parking lot to be reviewed later.

When used effectively, it’s a great way to capture important ideas and validate member participation while keeping you on track. The final tool is simple, but terribly important, homework. All members must commit to showing up prepared by having completed any assigned reading or analysis. If someone has not done their homework, you guessed it, the team just might want to impose a simple and fun penalty as a reminder. It’s also useful to mention the three most important roles that support productive meetings.

They are, the facilitator, the scribe, and the devil’s advocate. The facilitator is a process observer who watches for adherence to the meeting rules, monitors behaviors, and tries to protect the agenda. The scribe is a note taker, who captures everything relevant at the meeting and later disseminates it electronically to all attendees. Lastly, we have the devil’s advocate. This is the person who questions lazy assumptions and speaks up to ensure that the group properly considers alternative views when making decisions. Here’s a great tip, if needed, formally appoint a devil’s advocate for each meeting.

Using Authority Successfully

Asserting your authority

In your first few weeks as a leader, you have some seemingly opposing goals. On the one hand, you must establish quality rapport with your team. You have to create open communication and be seen as genuine and authentic. On the other hand, you have to establish that you’re the boss. You have to clarify real goals and expectations. And yes, you need to find a proper way to assert your authority. In reality, they’re not competing goals. Let’s talk about what authority means and then consider a few ways you can assert your authority in a productive and just fashion. Authority is seen as the legitimate right of a person to exercise influence and make decisions.

For example, managers typically have the authority to assign work, hire employees, or order materials and supplies. However, just because you have authority does not mean life is now easy. You need to understand how to use authority effectively. As a new manager, keep in mind these helpful tips. Start small. You have a choice as a new manager when it comes to asserting authority. You can do a cannon ball and jump in the deep end of the pool or you can politely stick your toe in the shallow end. When you look at the team and you view things you wish to change and improve, your best bet is to start with a small and measured target.

Gain success there and then build towards larger targets. Another great strategy is to leverage your authority by co-opting key employees involved in the issue. Co-opting refers to turning a potential detractor into a supporter. If you can predict a person or two who might present a challenge later, talk to them now to gain their input as a means of avoiding future conflict. You might even consider putting them on the team. Finally, a classic way to enhance the effectiveness of your authority is to find at least one pro-employee change you can make in the first few weeks of your tenure.

For example, you might cancel a work attire policy the employees don’t like. Or, you might change a vacation policy in a way they desire. A quick win like these shows employees that you sincerely see their needs. Under these conditions, they are much more likely to support you on other unrelated decisions. Authority is your right to act, but strangely, it’s not always easy to use. Just because you have authority, doesn’t mean they will follow your orders the way you want them to.

Use the tips we’ve discussed to make sure your authority actually supports great team performance.

Looking back to move forward

Typically, new leaders have lots of energy, creativity, and a vision for their new team. However, the degree to which your employees buy in to your vision for moving forward has a lot to do with the respect they feel you have for all that came before you. Thus, in many ways, your ability to move them forward has a lot to do with your ability to look back at where they’ve been. Understand that their current team culture is the result of an evolution over time.Knowing this is important for any new leader, but especially for a new leader who is not a former member of the group.

Before announcing new performance standards, new projects, new long-term goals, do yourself a favor and complete the legwork required to understand the team’s history; how they got where they currently are. You want to be able to adequately describe for yourself, the team’s current culture, be able to understand and appreciate major key employees and leaders from the past, and strive to learn about any key incidents that have occurred over the last few years.Many times, new leaders rush to make changes in order to make their mark. They often view employees as mere human resources, instead of unique individuals who contribute to a unique team culture.

Team Culture generally refers to a shared understanding of how we tend to behave and perform; the normal way the team functions. This existing team culture should shape how you make and execute decisions as the new leader. The current culture evolved, thanks in part to key players, some of whom might still be in the group or elsewhere in the organization. Believe me, certain historically interesting players cast very long shadows that are still around. For example, imagine a past successful leader of the team who was fond of walking around informally on a daily basis to keep in touch with his team.

Someone who made sure to visit all levels of the organization and who knew the names of everyone from the janitor to upper management. This was his way of developing rapport with employees, which has now become part of the culture. You don’t have to emulate every behavior like this, but it might be a mistake not to incorporate some of it into your own leadership style. Aside from key players, there will also be a handful of key incidents that havehad a strong influence on the team’s current culture. For example, these might have included the hiring of a particular person, a project that was an amazing success or failure, or maybe a time when the group merged with another group.

These types of big historical incidents will pop up in people’s thinking and conversations, so you’ll benefit from knowing what they’re talking about. The good news is that learning these types of things is not difficult. In your first days, spend time speaking with your new boss, your new peers, and most importantly, your team, to solicit their understanding of the team’s shared past. As a result, when you begin to press forward with needed changes, you will have a strong appreciation for how to shape and discuss your proposals in a manner that shows respect for the group’s history.

Developing a lieutenant

Every leader needs a great second in command, a lieutenant, a reliable collaborator and go-to person. It’s important that this be an informal understanding not a formal position. Your lieutenant helps you deal with the fact that you can’t be in two places at once. They actually fill several roles. Here are the most important ones. Your lieutenant can stand in for you when needed. As a leader, you’ll learn that your most precious resource is time, because time is so limited, you cannot court every customer or attend every meeting. Your lieutenant can help keep you in the loop by sitting in for you when needed, taking great notes and keeping you connected to a wider array of activities.

Next, lieutenants are often great at initiating followership in tough situations. Sometimes when tough decisions have been made, it’s difficult to mobilize support. Even if you’ve been transparent and collaborative with the team, they won’t love every decision. However, once one person shows support, others are far more likely to follow. In this sense, the lieutenant can become a catalyst for decision support. Lieutenants can also serve as a great conduit for feedback from the team. You might recall from an earlier video, our discussion of the status bubble, that odd interpersonal barrier that surrounds you simply because you’ve assumed a higher level position in the hierarchy.

This information filtered deeply skews the timeliness and quality of the messages you receive. A good lieutenant can bridge that gap to provide you unfiltered feedback about how the team feels regarding the issues of the day. Another great role for the lieutenant is serving as your personal devil’s advocate. In an earlier video, we mentioned the devil’s advocate, that person willing and able to speak up and question the direction of the group’s work. Here, we’re referring to someone willing and able to privately question your assumptions when needed.

Grant your lieutenant this right and they will often increase the quality of your thinking. Finally, realize that your lieutenant may be a huge part of your personal succession plan. Believe it or not, one of the main reasons you might be overlooked for promotion is because you’re great at what you do right now, and the leaders over you are not confident someone else can do as good a job as you have done. Developing a strong lieutenant gives them an option to replace you when you receive a promotion. It is also important to note what a good lieutenant is not.

A lieutenant is not a clone of you. You don’t want someone with identical views and approaches to issues. While some overlap is inevitable, foster their growth as a unique professional. A lieutenant is also not a yes man. The yes man is that person who always without exception, seeks to affirm whatever the boss says and does. A great lieutenant is an honest broker, not simply trying to gain your favor. Finally, a good lieutenant is not an enforcer.

Conclusion

Coping successfully with your transition

Many people have talked about the loneliness of leadership that can’t be avoided, a feeling of being isolated and without support. You can’t agree to be a leader if you’re not willing to sometimes stand alone. Even in the best team environment, there will be times when the direction the team or the organization needs to go involves making decisions which others will not like. Gaining a promotion into leadership is likely to be one of the most challenging life experiences you will ever endure. Studies have shown that achieving that coveted promotion might be second only to going through a marital divorce in terms of the stress experienced.

It sometimes feels like you’re trying to climb a greasy pole and yet no one seems to be helping you. When you are first promoted, it feels momentarily amazing, then, quite suddenly, reality sets in. There is no clear manual on how to start. You are on your own and you might be unsure of what is really expected of you. That’s normal when you find yourself in completely new territory. Please know, there are ways you can mitigate these possibilities and successfully make the transition.

Consider using several of these effective coping strategies. Let’s start with the most important strategy, seeking support from your network. I’m referring to your family, your peers, and maybe an outside professional mentor; but it’s your family that comes first. Whether it is your partner or you parents, let them know about your new responsibilities and the stress that comes with it because the stress will not only affect you it will affect them. Let them know you need their support and understanding. Share your difficulties and concerns with them and embrace that conversation instead of keeping it all bottled up.

Similarly, a small number of peers within the organization will prove valuable as sounding boards. Why? Because they have been exactly where you are now and you have the chance tolearn what they’ve learned about surviving. Finally, further away in the organization or outside the organization altogether, securing a more seasoned mentor to talk with, can provide bothstress relief and needed wisdom. Next, be sure to schedule time away from work. After your promotion, you’ll feel a huge need to work around the clock as you ramp up your leadership learning curve. Resist that feeling.

If you have vacation time scheduled, strive to keep it and while gone, try not to work. Small bits of time away from the office actually supports clear thinking while on the job. You can also battle stress by getting organized. Look at your workspace, your computer, and your files. Take time to organize all of it early in your new role. You want to feel in control, knowing where things are and that everything has its place can provide a much needed sense of calm.