People with the right set of skills, background and ambition have more career opportunities than ever. However, with so many opportunities comes the responsibility of taking a leadership role in your career. Understanding important factors such as strengths, weaknesses and values can open up more doors and accelerate employee achievements.
Perfecting Raw Talent
Although most people think they understand their own strength, they are often wrong. Discovering strengths helps decode where you “fit” within an organization. The best way to understand strengths is to track the decisions you make and determine the results several months down the line. You might discover that you have a natural ability to negotiate important deals or a talent for building rapport with key decision makers.
This technique isn’t new, according to the Harvard Business Review. It was developed over 150 years ago by a German theologian. The result of this practice is a deeper understanding of natural abilities.
As an employee begins to understand their own strengths, areas of weakness will become apparent. It might be tempting to try and “fix” these areas. People should however focus their energy on improving strengths. Perfecting raw talent will take employee skills to new levels, providing companies with better long-term results.
Taking a Realistic Look at Performance
Employee development should consider a variety of learning styles. An employee must also understand how they learn. Programs that are tailored to a single type of learning won’t be successful for everyone. For example, some people learn by taking notes. If they don’t write something down, the concept doesn’t stick. Other professionals learn by fleshing out concepts with colleagues. When an employee understands their learning style, they can get the most out of development opportunities.
Employees should also understand a few characteristics about their performance style to better find their “place” in the professional workforce. Some people work best as subordinates while others are natural leaders. For example, forcing a person who is a loner into a heavy team environment won’t be a natural fit and may even hinder performance for the entire team.
Getting a Value Fit
Employees who are most effective are an organizational fit with the company’s values. People should evaluate a company’s ethics and ask themselves “Is the company’s ethics a good fit with my values?” For example, the Harvard Business Review explains that after a merger an employee was promoted to become a human resources director. The director was responsible for selecting managers and executives in the company.
The employee strongly believed that promotions should come from within the company’s talent pool. The new company, however, believed that high level positions should be recruited from outside of the organization. After several years of frustration, the human resources professional become frustrated and quit. The employee would have been much happier if she selected a company with shared values.
Another example of a “value mismatch” is an executive’s disagreement on short-term and long-term goals. Although most financial experts believe these goals can (and should) run concurrently, at times they might conflict. With some companies, long-term goals trump short term results; however, other companies have the opposite strategy. This is a fundamental philosophy that employees should understand before signing on.
Finding the Right Place
Most people don’t know where they fit career wise right off the bat. People that are highly gifted don’t usually find where they belong until they’re well into their twenties. Employees can narrow down career paths by thinking about what isn’t a good fit for their skills. For example, a mathematician may decide that she isn’t interested in managing people. Employees who understand their skills are able to say “no” when offered positions that aren’t a good fit.
Piggybacking on Co-Workers’ Talents
The majority of professionals work with co-workers on some level. When working with a team, employees need to understand their teammate’s strengths and weaknesses. Employees can draw from co-worker’s strengths, making the entire team more productive. This is also true when working with a new manager. Being intuitive about their strengths and weaknesses will help you understand how they like to manage business, anticipate areas where you can help, and build better strategies.
Creating a Challenge
Often times, after two or three decades of working, professionals get bored. Finding new ways to use strengths can revitalize your ambition. Sometimes the change is as simple as working in the same capacity, but at a different industry. While other times, a professional may apply his strengths to an entirely new career. As long as you’re focusing on strengthening and growing your core talents, a successful career will follow. Talents are mobile and being the driving force in your own career will prevent you from veering off course.
Resource:
Peter F. Drucker. “Managing Oneself.” The Harvard Business Review, January 2005.
--------------------------------------------------------------------------------
Mark Jordan is the Managing Principal of VERCOR, an investment bank that creates liquidity for middle market business owners. He is the author of “Driving Business Value in an Uncertain Economy”, “Selling Your Business the Easy Way”, “Enhancing Your Business Value…The Climb to the Top” and co-author of “The Business Sale…A Business Owner’s Most Perilous Expedition.” For more information, contact him at 770.399.9512 770.399.9512 or click here to email Mark.
Wednesday, November 11, 2009
What Makes a Leader?
Bright, innovative and persuasive leaders have the special talent of winning over employees and achieving unprecedented results. Being an effective leader, however, isn’t easy for everyone. Daniel Coleman first discussed the concept of emotional intelligence in the 1998 Harvard Business Review Article “What Makes an Effective Leader?” He studied 200 large companies and found that effective leaders didn’t just have toughness, vision and motivation – they also have a high level of “emotional intelligence.”
Even if an executive is highly trained and has bright ideas, they won’t make a good leader if they don’t have emotional intelligence, according to Coleman. Fortunately, companies can learn to identify these traits and help executives develop the skills needed to support emotional intelligence.
Identifying Emotional Intelligence
When searching for senior managers and executives, a list of skills such as strategic vision and ability to take initiative are tested. During these studies Coleman found that emotional intelligence is twice as important as the other factors used for identifying future leaders. It was also determined the higher the employee was on the organizational chart, the larger role emotional intelligence played in success. For example, David McClelland, a researcher of organizational behavior, found senior managers with emotional intelligence outperformed peers by 20 percent.
The Five Components of Emotional Intelligence
There are five components of emotional intelligence including: self awareness, self-regulation, motivation, empathy and social skills. Here’s a quick breakdown of each component.
Self-Awareness: People who are self aware have a high level of confidence, sense of humor about themselves and a realistic handle on their skills. They also have the ability to understand people’s emotions and moods and their affect on other people. A person with a high degree of self-awareness will be able to turn down a lucrative job offer because it doesn’t mesh with his professional goals and values. Having a high level of self-awareness allows individuals to be more focused on their career path and avoid becoming bored and uninspired in their work.
Self-Regulation: Professionals with this skill are generally trustworthy and have a high level of integrity. They’re also open to organizational changes and have the ability to adapt well. Think of self-regulation as the inner conversation in your head. For example, Coleman discusses an executive that is angry at his team for poor performance. A manager without self-regulation may pound his hands on the table and express his frustration. An executive with a keen sense of self-regulation, however, will explain his disappointment and move on to more productive conversations about why the incident occurred.
Motivation: People with this quality are highly optimistic, even when a company is facing difficult times. Professional motivation stems from reasons deeper then compensation and status. They’re also highly energetic and persistent in their work.
When looking for people with this quality, look for executives with a track record of seeking new challenges, overcoming obstacles and a sense of pride about their work. These people are constantly looking for ways to be innovative and improve performance.
Empathy: Leaders with a high level of emotional intelligence have the ability to empathize with employees, leading to better rates of employee retention. They are able to anticipate people’s emotional reactions and diffuse situations. A manager who possesses empathy considers employee feelings when making business decisions. It doesn’t mean that “feelings” are the only factor, but simply a consideration.
Social Skills: The final skill of people with emotional intelligence is a high degree of social skills. Having these skills allows people to be more persuasive and build highly effective teams. They’re also able to build effective networks and successfully create rapport with business associates.
For example, consider an executive with a high level of social skills. He is able to be friendly with business associates while persuading them towards the desired outcome.
Training for Emotional Intelligence
Since emotional intelligence is a precursor to leadership success, many people wonder if you can “teach emotional intelligence.” Emotional intelligence resides in the brain’s limbic system. These neurotransmitters are responsible for motivation, drive and impulses. Most training programs cater to the“neocortex” of the brain which focuses on analytical abilities.
Emotional intelligence can be taught by revamping training techniques. When conducting this type of training, focus on breaking behavioral habits that work against emotional intelligence. Take for example, a sales woman who doesn’t listen well and interrupts business associates. When teaching her emotional intelligence, feedback should be given when the behavior is occurring so she can reshape her responses. An executive who doesn’t have a high degree of empathy may be feared by subordinates. Practicing situations and receiving feedback can build a higher level of empathy and boost management ability.
When hiring executives, understanding their level of emotional intelligence can enhance your company’s performance. Developing these skills in existing employees can be beneficial as well. However, building emotional intelligence is only possible if employees have a strong desire to change.
Resource:
Daniel Coleman. “What Makes a Leader?” Harvard Business Review, January 2004.
--------------------------------------------------------------------------------
Mark Jordan is the Managing Principal of VERCOR, an investment bank that creates liquidity for middle market business owners. He is the author of “Driving Business Value in an Uncertain Economy”, “Selling Your Business the Easy Way”, “Enhancing Your Business Value…The Climb to the Top” and co-author of “The Business Sale…A Business Owner’s Most Perilous Expedition.” For more information, contact him at 770.399.9512 770.399.9512 or click here to email Mark.
Even if an executive is highly trained and has bright ideas, they won’t make a good leader if they don’t have emotional intelligence, according to Coleman. Fortunately, companies can learn to identify these traits and help executives develop the skills needed to support emotional intelligence.
Identifying Emotional Intelligence
When searching for senior managers and executives, a list of skills such as strategic vision and ability to take initiative are tested. During these studies Coleman found that emotional intelligence is twice as important as the other factors used for identifying future leaders. It was also determined the higher the employee was on the organizational chart, the larger role emotional intelligence played in success. For example, David McClelland, a researcher of organizational behavior, found senior managers with emotional intelligence outperformed peers by 20 percent.
The Five Components of Emotional Intelligence
There are five components of emotional intelligence including: self awareness, self-regulation, motivation, empathy and social skills. Here’s a quick breakdown of each component.
Self-Awareness: People who are self aware have a high level of confidence, sense of humor about themselves and a realistic handle on their skills. They also have the ability to understand people’s emotions and moods and their affect on other people. A person with a high degree of self-awareness will be able to turn down a lucrative job offer because it doesn’t mesh with his professional goals and values. Having a high level of self-awareness allows individuals to be more focused on their career path and avoid becoming bored and uninspired in their work.
Self-Regulation: Professionals with this skill are generally trustworthy and have a high level of integrity. They’re also open to organizational changes and have the ability to adapt well. Think of self-regulation as the inner conversation in your head. For example, Coleman discusses an executive that is angry at his team for poor performance. A manager without self-regulation may pound his hands on the table and express his frustration. An executive with a keen sense of self-regulation, however, will explain his disappointment and move on to more productive conversations about why the incident occurred.
Motivation: People with this quality are highly optimistic, even when a company is facing difficult times. Professional motivation stems from reasons deeper then compensation and status. They’re also highly energetic and persistent in their work.
When looking for people with this quality, look for executives with a track record of seeking new challenges, overcoming obstacles and a sense of pride about their work. These people are constantly looking for ways to be innovative and improve performance.
Empathy: Leaders with a high level of emotional intelligence have the ability to empathize with employees, leading to better rates of employee retention. They are able to anticipate people’s emotional reactions and diffuse situations. A manager who possesses empathy considers employee feelings when making business decisions. It doesn’t mean that “feelings” are the only factor, but simply a consideration.
Social Skills: The final skill of people with emotional intelligence is a high degree of social skills. Having these skills allows people to be more persuasive and build highly effective teams. They’re also able to build effective networks and successfully create rapport with business associates.
For example, consider an executive with a high level of social skills. He is able to be friendly with business associates while persuading them towards the desired outcome.
Training for Emotional Intelligence
Since emotional intelligence is a precursor to leadership success, many people wonder if you can “teach emotional intelligence.” Emotional intelligence resides in the brain’s limbic system. These neurotransmitters are responsible for motivation, drive and impulses. Most training programs cater to the“neocortex” of the brain which focuses on analytical abilities.
Emotional intelligence can be taught by revamping training techniques. When conducting this type of training, focus on breaking behavioral habits that work against emotional intelligence. Take for example, a sales woman who doesn’t listen well and interrupts business associates. When teaching her emotional intelligence, feedback should be given when the behavior is occurring so she can reshape her responses. An executive who doesn’t have a high degree of empathy may be feared by subordinates. Practicing situations and receiving feedback can build a higher level of empathy and boost management ability.
When hiring executives, understanding their level of emotional intelligence can enhance your company’s performance. Developing these skills in existing employees can be beneficial as well. However, building emotional intelligence is only possible if employees have a strong desire to change.
Resource:
Daniel Coleman. “What Makes a Leader?” Harvard Business Review, January 2004.
--------------------------------------------------------------------------------
Mark Jordan is the Managing Principal of VERCOR, an investment bank that creates liquidity for middle market business owners. He is the author of “Driving Business Value in an Uncertain Economy”, “Selling Your Business the Easy Way”, “Enhancing Your Business Value…The Climb to the Top” and co-author of “The Business Sale…A Business Owner’s Most Perilous Expedition.” For more information, contact him at 770.399.9512 770.399.9512 or click here to email Mark.
Monday, November 9, 2009
Leadership Challenges: Tackling Organizational Change
No business can survive the long term without change. Human nature, however, is resistant to change. The ultimate test of a good leader may well be the ability to guide change. Whether you’re a CEO dealing with corporate financial issues or a senior manager with new innovative ideas, implementing change isn’t an easy task. But John P. Kotter, retired Harvard Business School Professor and author of Harvard Business Review article “Leading Change: Why Transformation Efforts Fail,” points out that taking the right actions during this time is essential. Creating urgency, recruiting a coalition and avoiding organizational pitfalls can be the difference between either the failure or success of an organization.
Creating Organizational Urgency
In order for change to be effective, you must first create a sense of urgency. Having cooperation at all levels of an organization will provide the momentum needed to achieve the desired result. According to Kotter, over 50% of companies fail while implementing change from a lack of urgency.
A true leader must work quickly to solicit support within the organization. By examining market and competitive realities for potential crisis and untapped opportunities, leaders will be able to back up the need for change. Presenting facts like the anticipated revenue loss if the changes aren’t made or the impact of new competition in the market can help persuade others to get on board. Sometimes it may be advantageous to have an outsider such as an analyst, consultant or customer deliver the information. Whether delivered internally or by an outsider, the message that needs to be delivered is that the status quo is far more dangerous than the unknown. This message will ramp up urgency and create a more immediate requirement for change.
Forming a Team of Advocates
Once managers understand why change is needed, they must communicate the message within the organization and get others on board. Creating a “coalition” will put more force behind your efforts and provide the momentum needed to move the changes forward.
The coalition should be a group with a shared commitment and enough power to lead the transformation. The core of the group is typically made up of senior management members. Because reform generally demands activity outside of protocol, a coalition can also include board members, customers or even union leaders. The coalition should be made up of people with strong expertise, experience, reputations and relationships. The members will work together as a team to evaluate the company’s challenges and opportunities. Companies without this powerful coalition are at risk of losing momentum and getting stuck.
Once the coalition is formed, members should work closely to create a clear vision to direct the change. It will need to be more than numbers and should describe the goals and outcomes of the proposed change. The vision needs to be easy to understand and appealing, so when communicated to others, they will buy into it. This vision will eventually evolve into the strategy for the implementation of change.
Ramping up Communication
Effective communication is vital to transformation. Communication isn’t as effective when only coming from a few individuals. The corporation needs an army of people delivering the message through all existing communication channels such as emails, speeches and employee newsletters. It is also important to remember that communication comes in both words and deeds. If members of the coalition “walk the talk” and embody the new corporate culture, the message will be more credible and powerful. This will provide employees the confidence needed to get on board and devote their energy to making the change possible.
Getting Rid of Obstacles
Employees will become frustrated if the new changes have obstacles. Managers must work hard to remove any obstacles and help employees maneuver around unanticipated problems. Otherwise employees may become irritated and resistant to the changes.
Be careful of managers who don’t support the vision and become roadblocks for employees. This can create a sub-culture that is working against the changes. It can also create a “toxic” environment by building resentment between employees and upper management.
Taking Small Steps
Transformation takes time, but people want to see evidence that the changes are producing results. If this evidence isn’t presented within 12 to 24 months, people may jump ship and start to work against the required changes. Remind managers and employees about positive results that are happening because of their hard work. This should help keep the momentum in place.
While it may be tempting to celebrate at the first sign of improvement, be careful not to declare victory too soon. Doing this may actually hinder your company’s momentum and slow down progress. People that have been fighting for change will back down and lose their sense of urgency. Keeping the sense of urgency high will help your company continue to move forward.
Even for the best leaders, change is difficult to accomplish. It can’t be achieved by one person working alone. Assembling a team and keeping your momentum strong will help win over more employees and provide the energy needed to successfully implement change. As employees witness the success of the changes, even opposing employees will begin to join your team and work towards moving the company to the next stage of success. Further, your company will be able to handle shifts in the market, competitors and technology while your rivals struggle to adapt to change.
Resource:
John P. Kotter. “Leading Change: Why Transformation Efforts Fail.” The Harvard Business Review, January 2007.
--------------------------------------------------------------------------------
Mark Jordan is the Managing Principal of VERCOR, an investment bank that creates liquidity for middle market business owners. He is the author of “Driving Business Value in an Uncertain Economy”, “Selling Your Business the Easy Way”, “Enhancing Your Business Value…The Climb to the Top” and co-author of “The Business Sale…A Business Owner’s Most Perilous Expedition.” For more information, contact him at 770.399.9512 or click here to email Mark.
Creating Organizational Urgency
In order for change to be effective, you must first create a sense of urgency. Having cooperation at all levels of an organization will provide the momentum needed to achieve the desired result. According to Kotter, over 50% of companies fail while implementing change from a lack of urgency.
A true leader must work quickly to solicit support within the organization. By examining market and competitive realities for potential crisis and untapped opportunities, leaders will be able to back up the need for change. Presenting facts like the anticipated revenue loss if the changes aren’t made or the impact of new competition in the market can help persuade others to get on board. Sometimes it may be advantageous to have an outsider such as an analyst, consultant or customer deliver the information. Whether delivered internally or by an outsider, the message that needs to be delivered is that the status quo is far more dangerous than the unknown. This message will ramp up urgency and create a more immediate requirement for change.
Forming a Team of Advocates
Once managers understand why change is needed, they must communicate the message within the organization and get others on board. Creating a “coalition” will put more force behind your efforts and provide the momentum needed to move the changes forward.
The coalition should be a group with a shared commitment and enough power to lead the transformation. The core of the group is typically made up of senior management members. Because reform generally demands activity outside of protocol, a coalition can also include board members, customers or even union leaders. The coalition should be made up of people with strong expertise, experience, reputations and relationships. The members will work together as a team to evaluate the company’s challenges and opportunities. Companies without this powerful coalition are at risk of losing momentum and getting stuck.
Once the coalition is formed, members should work closely to create a clear vision to direct the change. It will need to be more than numbers and should describe the goals and outcomes of the proposed change. The vision needs to be easy to understand and appealing, so when communicated to others, they will buy into it. This vision will eventually evolve into the strategy for the implementation of change.
Ramping up Communication
Effective communication is vital to transformation. Communication isn’t as effective when only coming from a few individuals. The corporation needs an army of people delivering the message through all existing communication channels such as emails, speeches and employee newsletters. It is also important to remember that communication comes in both words and deeds. If members of the coalition “walk the talk” and embody the new corporate culture, the message will be more credible and powerful. This will provide employees the confidence needed to get on board and devote their energy to making the change possible.
Getting Rid of Obstacles
Employees will become frustrated if the new changes have obstacles. Managers must work hard to remove any obstacles and help employees maneuver around unanticipated problems. Otherwise employees may become irritated and resistant to the changes.
Be careful of managers who don’t support the vision and become roadblocks for employees. This can create a sub-culture that is working against the changes. It can also create a “toxic” environment by building resentment between employees and upper management.
Taking Small Steps
Transformation takes time, but people want to see evidence that the changes are producing results. If this evidence isn’t presented within 12 to 24 months, people may jump ship and start to work against the required changes. Remind managers and employees about positive results that are happening because of their hard work. This should help keep the momentum in place.
While it may be tempting to celebrate at the first sign of improvement, be careful not to declare victory too soon. Doing this may actually hinder your company’s momentum and slow down progress. People that have been fighting for change will back down and lose their sense of urgency. Keeping the sense of urgency high will help your company continue to move forward.
Even for the best leaders, change is difficult to accomplish. It can’t be achieved by one person working alone. Assembling a team and keeping your momentum strong will help win over more employees and provide the energy needed to successfully implement change. As employees witness the success of the changes, even opposing employees will begin to join your team and work towards moving the company to the next stage of success. Further, your company will be able to handle shifts in the market, competitors and technology while your rivals struggle to adapt to change.
Resource:
John P. Kotter. “Leading Change: Why Transformation Efforts Fail.” The Harvard Business Review, January 2007.
--------------------------------------------------------------------------------
Mark Jordan is the Managing Principal of VERCOR, an investment bank that creates liquidity for middle market business owners. He is the author of “Driving Business Value in an Uncertain Economy”, “Selling Your Business the Easy Way”, “Enhancing Your Business Value…The Climb to the Top” and co-author of “The Business Sale…A Business Owner’s Most Perilous Expedition.” For more information, contact him at 770.399.9512 or click here to email Mark.
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