Effectively balancing the “What”…

…versus the “How” as a Leader

One of the most challenging balancing acts a leader faces is determining how much they communicate what they want the desired results and outcomes to be, balanced against how much they tell those who execute the business how to achieve the desired results and outcomes. I would imagine your first response might be something along the lines of, “Whatever it takes to achieve the goals” or possibly, “ If you want it done right, you need to tell them exactly how to do it”. However, if you view the role of leader against the long-term view of business success, the answer is not so simple.

One would think communicating what to do would be the easier of the two tasks. I maintain they are both equally challenging for completely different reasons. A leader who effectively communicates what needs to be done is not merely reciting a checklist of tasks needing to be completed. It starts with translating the Vision of the business into a meaningful and tangible language for those who execute the business goals. Because the leader cannot possibly communicate every minute detail of the strategy, they must outline enough of the “What” and “Why” for the strategy to succeed. In other words, leaders must communicate their intent to the organization and it is where one of the biggest challenges occurs.

A question every leader must clearly communicate is “What does Success look like?” When the business is successful, what are people in the business doing? What are customers of the business saying about you? What are your vendors doing to support you? The more detailed the answers, the clearer the leader’s intent. Notice there is no mention of how all this occurs, only that when success does occur, this is the picture we see.

Which brings us to the communicating how to achieve the desired results. The process begins with an accurate assessment of the Attitudes, Skills and Knowledge of the team. We know that Attitude, or the Want to succeed is 75% of the overall success equation. If those who execute the business do not believe they can carry out the strategy the leader communicates to them, it is a foregone conclusion it will fail. If they believe in the strategy, success is three quarters complete! The team must also possess the requisite Skills, or how to do the functions to succeed and the Knowledge, knowing when and where to leverage the requisite skills for overall success.

Understanding the necessary Attitudes, Skills and Knowledge in the context of the leader’s intent, presents its own challenge because leaders may have differing perspectives than those who execute the business. As Anais Nin once said, “We don’t see things as they are; we see them as we are”. One only has to look at the behavioral differences between a Baby Boomer leading a team of Generation X and/or Generation Y associates. The context of the leader’s intent may be translated differently (not necessarily correctly or incorrectly, just differently) leading to less than desired results.

It all starts with effectively communicating a strategy and strategic intent to those who execute the business. If a total stranger walks up to you and asks you to describe what your success looks like, how clear is the picture you paint for them?

Lead Well!

We Can Learn a Lot about Total Leadership…

…From the Super Bowl Champion Green Bay Packers.

As is tradition, the February issue of this newsletter highlights the reigning Super Bowl champions. Hopefully, the mere title of this newsletter does not cause most of my hometown Chicago readers to automatically delete this file before reading at least a few sentences! While the intensity of the Packers-Bears rivalry marches on, we can glean leadership lessons from the way the Packers became only the second team seeded last in the playoffs to go on to win the Super Bowl. As I watched the playoffs unfold, the back-stories kept taking me back to the Total Leadership Model described as the alignment of organizational strategy with its people and processes to fully engage the organization with the expressed outcome to create loyal clients.

Strategically, the Packers mantra for the season was adaptability. They had the most players on injured reserve (15) of any NFC Team in the league last season. They made the playoffs seeded last, meaning they would have to play three games on the road just to get to the Super Bowl. That meant their strategy would have to take those realities into account to achieve the desired result of winning the Super Bowl. How many leaders today misjudge their competition due to changes in the competitive landscape or mentally defeat their efforts because the competitors are bigger, better funded or both? Effective strategies are built on accurate assessments of the external environment and of the strengths and weaknesses of the organization. For the Green Bay Packers, these strategies and associated philosophies generated more championships than any other team in the league including four Super Bowl titles.

In the Total Leadership Model, People Development and Process Improvement are aligned to support the organization’s strategy. For the Packers, this meant fielding skilled players (changing week-to-week due to injuries) and processes (play-calling to optimize the changing roster) to support and align with the current strategy. In any business, the people and processes may fluctuate over time. The real differentiator in success is Attitude, especially down the stretch. Much is made of home-field advantage in sports and it could be argued the Packers were not always the most talented all around team on the field in Philadelphia, Atlanta, Chicago and Dallas. In the end, it was the team that believed in themselves the most that carried the day, even when two more of their starters, and emotional leaders, were lost to injury in the first half of the championship game. Successful leaders create and execute strategies to optimize the strengths of their people in full alignment with the core processes they use in their businesses.

Total Leadership is about creating loyal clients through engaged employees. It is in this regard the Packers are unique among NFL teams. Despite playing in the smallest NFL market, they have one of the largest fan bases in the sport and have more names on their season ticket waiting list than there are actual seats in Lambeau Field where they play. Leaders may talk about client loyalty but fewer put forth the time and level of effort required to create this level of loyalty and pride in their organizations. Engaged employees are the basis for creating loyal clients, concepts that look much like the traditional training camp bike rides and Family Nights of the Green Bay Packers.

I had lunch last week with a business owner who created a very successful business after coming to the U.S. over twenty years ago. When I mentioned the topic of this month’s newsletter she told me about how, in her frequent travels, she carries a book about Vince Lombardi to read his quotes and philosophies whenever she flies. What will it take for you to generate that level of loyalty and be the champions of your business?

Lead Well.

Leadership Lessons…

…From Running Triathlons.

Several weeks ago I ran a Sprint Triathlon in our hometown, something I’ve done for the last four years. However, what made this year special is I ran it with my youngest son who was running the race for the first time. Since it was his first race and our plan was to run it together, our motto for the race became “Start Steady, Finish Strong”. Undoubtedly, most of you reading this have heard of the famous Ironman Triathlon in Hawaii. The Sprint Triathlon is the shortest of the four official distances but still involves the same three events – swimming, biking and running in that order. So as I reflected on the race, it occurred to me the parallels between training and running triathlons with the leadership coaching I do as part of my practice.

When I first began competing in triathlons, I viewed them as separate events in which to train. I was a competitive swimmer and runner in both high school and college so it was natural for me to train in each event as I had before. This is no different when we find ourselves approaching new professional and personal challenges by relying on the skills and knowledge we developed from our past. Even when we set goals for ourselves to improve in an individual endeavor, it is still the past that governs our execution unless we consciously make a change. And as I realized my training regimen wasn’t enough, I needed to make a change - in my attitude regarding the race itself!

I had to change my mental approach to the race to ultimately achieve my goal. I actually made two changes. First, I changed my mental approach to the race from three individual events back-to-back-to-back to one race with five aligned competitive pieces. I say five because the transitions between events are really mini-events in and by themselves as the clock continues to tick during the swim-bike and bike-run transitions. Secondly, I realized I could not do this solely based on my own experience. I reached out to accomplished tri-athletes and read blogs from others who were also trying to optimize their triathlon experience. These two changes helped me align my actions to accomplish my overall goal.

So what does this have to do with leadership? How much are we relying on the experiences of the past to deal with today’s challenges? Are we going about change alone or are we reaching out to others to help us develop new leadership attitudes? Is our business a series of disparate, misaligned goals preventing us from achieving our ultimate objective? These are questions all leaders should regularly ask themselves.

I recently read a quote from Fred Lebow, founder of the New York City Marathon, a race I’ve run twice who said, “In running, it doesn’t matter whether you come in first, in the middle of the pack or last. You can say ‘I have finished’. There is a lot of satisfaction in that”. As my son and I completed the triathlon, I had no idea where in the pack we finished but I do know we Started Steady and we definitely Finished Strong! Are your goals aligned for a strong finish?

Lead Well!

Rick Lochner

If You Can’t Describe What You Do as a Process...

…You Don’t Know What You Are Doing.

These words from W. Edwards Deming, considered the godfather of organizational process improvement, are a great way to introduce the third element of the Total Leadership Model. To put it in perspective, we previously introduced Strategy as the foundation of the model and last month discussed Leadership Development as one of the two key supporting elements of the model. This month we look at Operational Improvement, the Process side of Total Leadership, as the other supporting element crucial to being an effective leader in today’s business environment.

Everything we do in our organization be it public, private, non-profit, large or small is a process. Everything we do has inherent interdependencies with what happens before during and after each task and function we execute. And because each task and function we execute has an outcome, it becomes a point in which we can measure the desired results of that task or function. In Dr. H. James Harrington’s book, Business Process Improvement he puts it this way:

• “Measurements are key.
• If you cannot measure it, you cannot control it.
• If you cannot control it, you cannot manage it.
• If you cannot manage it, you cannot improve it.
• It is as simple as that.”

At this point, there may be those of you who may be thinking this is great, but I don’t operate in the plant or in operations where our products are made. In truth more than half of the Operational Improvement opportunities are in the traditional “front office” functions such as Sales, Marketing, Finance and Human Resources. Or there may be those entrepreneurs who run small businesses who think this is great for larger companies, but does not apply to small businesses. In fact, missing these opportunities for Operational Improvement likely has a much greater financial impact as a percentage of revenue than in the larger companies. It’s akin to thinking gravity does not apply to you because you weigh less than twenty pounds. All processes have very real financial impacts if not producing their desired results!

Today’s leaders see this as an opportunity to truly understand what they do in the context of a global business environment constantly evolving through regulatory, economic and socio-cultural changes. As a leader it’s not enough to merely invest in people in the organization if you are not also willing to ensure the processes they use are optimized for success. So, describe what you do again?

Lead Well!

Are we there yet?

How many times have we heard that refrain from our children (or maybe from our significant other!?!) when their impatience got the best of them? Or maybe we’ve said it ourselves in different situations for the same reason. In most cases, it is because they don’t have a sense of time or speed relative to setting correct expectations of arrival.

In the business sense, whether for-profit or non-profit, we find ourselves either half way through our operational year or possibly just beginning a new one. We are likely compiling data telling us how well our business has performed over the last 6 months because of that natural halfway or transition point. Or are we? This issue focuses on the all-important role of measurements as a crucial element of effective business alignment. We are talking about not only what we measure on a regular basis, but also how we measure what we do in order to make informed business decisions.

The first place to start is to be clear on what we are capturing and the usefulness of what we capture. There are essentially 4 levels of “stuff” we measure, Data, Information, Knowledge and Wisdom or sometimes referred to as the DIKW Hierarchy. Like many topics in and around leadership, much has been written about these 4 elements so I am going to focus on the salient points of each.

• Data is what we measure directly. It is raw in nature and is the least useful element to making the level of business decisions we need to run our business.
• Information is organized Data. In a practical sense this means we import all the available data into a spreadsheet or database and sort or index the data to make it more useful to making a meaningful business decision.
• Knowledge is Information in context. While Information is useful for many business related decisions, its usefulness is limited without the context around the Information gathered. Knowledge allows us to make informed strategic decisions.
• Wisdom is Knowledge over time. When we apply Knowledge over time we create an environment in which the learning of the organization is exponential due to the richness and usefulness of each decision leading to even more useful outcomes.

So it stands to reason that addressing the Scientific Methodologies in the Business Alignment Model creates an overt means to know if we are capturing the right elements to validate organizational progress. More succinctly, it helps an organization determine if it’s making strategic decisions based on information or knowledge.

As an example, Organization A captured data from expense reduction efforts and compiled the data in a spreadsheet to see if it reduced their expenses to meet a specific target. Organization B also captured data from expense reduction efforts and compiled the data in a spreadsheet in similar fashion. However, organization B will also ensure there were minimal reductions in area critical to its long term Vision and Strategy with the balance coming from less critical parts of the business. Organization A made strategic decisions based on information, potentially crippling their future with across-board-reductions. Organization B made knowledge based strategic decisions and did not lose sight of the contextual impact of their decision. Which organization do you work for?

Lead Well.

Rick Lochner

Leadership is responsible for 94% of quality problems…

…so it is leadership’s responsibility to help people work smarter, not harder.

These words by W. Edwards Deming are a call to action for today’s leaders to help them focus on the right business goals to execute their business strategies. You may recall Deming as the statistician who made popular the Plan-Do-Check-Act Cycle and considered the father of modern quality control. It is also relevant we consider his thoughts as today’s leaders address the challenges of achieving their business strategies in an unstable economy, an uncertain regulatory environment and untapped globalization.

Against this backdrop are elements of the alignment process that fall between Strategy and Goals in the Business Alignment Model previously mentioned including last month’s issue. These layers often go unnoticed and unattended by leaders until it is far too late. The focus for this month is the Structure layer of the Business Alignment Model. The Structure layer prompts leaders to look at their People, Processes and Organizational Structure to ensure these elements directly support the prevailing business strategy. This is universally true whether applied to large corporate business models or small or mid-sized entrepreneurial ventures.

Having the right people on your team applies to any employees your business may have, and to the vendors, contractors and suppliers your business uses to execute its strategy. People are viewed on 2 planes – capability and compatibility. Capability addresses their skills and knowledge people bring to your business. Compatibility addresses people’s attitude and their ‘fit’ to your vision and culture and, in many cases, more difficult to assess and measure. As Jim Collins, in his book Good to Great states “…if you begin with the ‘who’, rather than the ‘what’, you can more easily adapt to a changing world”. And we are definitely in a changing world!

Addressing the business processes as part of the structure alignment takes us back to the opening quote. If processes do not align to the core strategy then achieving desired results is next to impossible. And it is up to business leadership to make it happen. As Dr. H. James Harrington stated in his book Business Process Improvement in the section devoted specifically to CEOs “The biggest opportunity you have to improve the bottom line comes from improving your business processes” Again, this may seem as though it is geared towards larger organizations. However, it is just as applicable to medium and small businesses managing their employees, vendors and suppliers as well as non-profit organizations managing their organizations of volunteers and staff. Regardless of venue, leadership can cure 94% of the issues!

Lastly, the organizational infrastructure helps leaders view their current organizational structure to ensure it enables fully capable and compatible people to leverage their core processes to successfully execute the overall business strategy. When the organization is too structured or too loose for the business to run effectively, success gets undermined from within and the business will not meet its goals.

In today’s business environment, regardless of whether you are an entrepreneur or a corporate president/CEO – People, Process and Organizational Structure dictate your business success. Leadership is what ties them to the Strategy and Goals.

Lead Well

Rick Lochner

The Art of Progress is the Preserve Order amid Change...

- and Preserve Change amid Order"

This quote by Alfred North Whitehead symbolizes the leadership challenge faced by businesses of all sizes and industries in today's competitive economic landscape. The implication in this quote is the balance required maintaining some measure of order in business organizations and plans while at the same time identify and execute change strategies in order to achieve real progress. My experience suggests many businesses are doing one aspect of this process well but struggling to do the other and/or both to full effectiveness.

So how does today's leader manage order and change simultaneously? The answer lies in the business Strategy. Simply stated, your business or organizational strategy dictates how your business or organization competes in its industry and markets. Having created strategies in businesses from large corporations to small entrepreneurial, mature and start-up, for-profit and non-profit, I find this definition of strategy to hold true universally. The strategy is a by-product of the leader(s) taking an objective and in-depth look at their external environment in order to create the Vision I spoke of last month. It also holds the results of an unbiased view of the business or organization's internal capabilities identified through a detailed SWOT (Strengths, Opportunities, Weaknesses and Threats) process or similar assessment process. What the Strategy looks like in the practical sense is a series of goal categories (also referred to as strategic objectives) determined to be critical to the business in a competitive environment.

It is not enough to just have a strategy as a stand-alone document. It must also link both the business goals and the vision of the business to be effective in the context of creating real progress. Linking the strategy to business goals is accomplished through the creation of specific goals from each of the critical goal categories identified in the strategy. This alignment typically represents managing "order amid change" in the opening quote. Just as important is the linkage of the strategy to the vision of the business. This alignment ensures the critical goal categories are relevant to the overall direction of the business and/or organization. If you cannot articulate clear alignment between current strategic objectives and the direction your business is going, the competitive markets will take the business where they want it to go. In essence, without direction (read: control), any road will look like a valid one! This represents the managing "change amid order" element of the opening quote.

Organizational movement can just happen and be confused for progress. Real progress requires a strategy that is both linked to the vision and the specific goals of the business to be effective. Last month I spoke of two types of leaders during times of challenge and change. The first are those who are busy managing order. The second types are creating real progress!

Lead Well

Rick Lochner