Situation: A CEO feels like he is on a roller coaster ride with unpredictable revenue and processes month to month. His ideal outcome will be to be able to go on vacation for 4-6 weeks, and have the business running better when he returns than when he left. Have you managed to achieve this? How do you create consistency in a business?
Advice from the CEOs:
Make your managers live up to their titles.
Insist that they go to each other to solve problems first, instead of always asking you.
When they ask a question, answer how to solve it – but don’t give them the solution.
Require them to present solutions rather than problems.
Be willing to spend money on their solutions.
Answer all questions with questions.
Ask them for their recommendation.
Keep asking until they come up with the answer.
You should not be doing jobs or tasks that are really your employees’ responsibilities.
When you start to delegate, it hurts for a while but it will work itself out.
What has been the impact on other companies when they’ve made these changes?
Businesses have become more diversified.
CEOs are focused strategically vs. tactically.
Businesses are more successful and profitable.
CEOs enjoy coming to work again.
How do you work with younger workers, millennials?
Allow flexibility – where appropriate – on hours and how they do their jobs.
Responsibility will vary by pay level – with the understanding that higher pay equals more responsibility and most likely longer hours.
Situation: A company has two key managers who battle constantly. Recently these battles have escalated. Both people are valuable, but this has become a significant distraction. What’s the best way to handle this situation? How do you deal with management infighting?
Advice from the CEOs:
Talk to the two people individually. Acknowledge company awareness of the situation and ask what’s going on.
Listen – make sure you understand what’s going on.
After you listen, coach. The message: I need you to step up. The company counts on you.
Both parties must feel empowered by the conversation.
Focus on behavior only, not the person.
Make sure that each feels validated but with clear direction to change behavior.
Acknowledge each individual’s value. Point out the problem, but make it clear that nobody is indispensable.
At the same time, be firm as to what is expected of individual behavior as well as individual performance. Set the expectation: either you act in a way which does not harm the company environment, or I will take your notice in 30 days.
If either individual can’t agree to this, then that individual is the problem.
Revert to guiding principles and values of the company. Raise the conversation to a higher level.
Establish what the individual wants from the company. Are their needs currently being met? What can be changed to better meet their needs?
An important end point of the conversation – because both are key players – is for each of them to value the other.
If, after providing time for the two to resolve their difference, they still can’t make peace with each other, you may have to make a hard decision.
Be careful – it may be necessary to take a different approach with each individual.
It may turn out that one individual is the instigator and the other is simply reacting to the first’s provocation. In this case, get a 3rd party to coach each of them.
Another company recently had this same problem.
The CEO sat each person down – talked about impact, big picture and what this does to their image in company.
Situation: A company is doing well, but the CEO is concerned about emerging hurdles that may stall momentum. The key issue from a systems development perspective is changing a “one-off” project based focus towards a modular mindset – essentially shifting a short-term to a long-term view. How do you align expectations across the company and transition to a broader focus?
Advice from the CEOs:
Start by clearly communicating your expectations. Work with your managers so that they communicate a consistent message to developers. Look for organizational changes to better align talents of individuals to roles taking advantage of these talents. You may want to refresh the gene pool by bringing on additional people.
One company with multiple teams creates healthy competition against performance objectives between teams with recognition and rewards to the top team.
If the change involves creating greater alignment between functions, create opportunities for individuals from different functional areas to work together. For example, have an engineer accompany a sales person on a critical call to close a deal. If the deal meets spec objectives, is closed, and the project completed on schedule and on budget, the engineer is bonused on the sale.
One company rents a lake cabin every year. Use of the cabin goes to teams recognized for meeting objectives, deadlines or other outstanding performance. An added benefit is that on the way to and from the cabin as well as while they are there, teams spend time talking about the next performance coup that will get them the next use of the cabin.
Look at your organization – both your Org Chart and the physical space. One CEO found that his engineering organization was stove-piped both in terms of reporting and incentives, and physical barriers prevented groups from easily interacting with one-another. To create better coordination between design engineering and manufacturing engineering, the teams were relocated to a new shared space, without physical barriers. Also, the Org Chart was adjusted to increase incentives for collaboration between the functions.
Situation: The CEO wants to build the team, identify leaders within the company, and develop managers. What are best practices to develop your staff?
Advice of the CEOs:
A great resource is “First Break All the Rules” by Marcus Buckingham. Among the key findings:
Great leaders are not the same as great managers. Good leaders are outgoing and goal-oriented whereas good managers are people-oriented.
Expecting good leaders to be good managers and vice versa is not effective. Only the exceptional individual exhibits both sets of talents.
The traditional business structure assumes that talented people will want to “move up” the organizational chart. The reality is that some people are very good at a particular level of responsibility, and are happiest with this responsibility.
How do to enhance your team’s leadership and management capabilities?
Evaluate your team for candidates who possess the qualities of leadership or management. Tailor your training to enhance the natural strengths of your candidates.
Draft agreed upon written responsibilities and performance objectives.
Regularly follow up and provide feedback.
Establish trial projects for new candidates that will allow them experience additional responsibility, and allow you to see how well they perform. Make the steps small at first. If they show talent, make successive steps more challenging.
Look at your organizational chart. Does it provide room for both leaders and managers? Does it provide room for the skilled role player who thrives in a particular role? If not, how will you fix it?