5 questions to answer.
by anthony zecca
leading from the edge
let’s look at examples of managing versus leading from two actual clients.
stuck in managing – center leadership
i was retained by the owner/ceo of a $40 million manufacturer of a home products company. the current leader inherited the business from his dad, and over 20+ years grew the business on the top line, but always struggled with profitability. over the last few years, however, there was no top-line growth and he was frustrated.
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his leadership view of the future was the next quarter, and the company had no strategy or vision beyond the current year. the most he thought about the future was when they were preparing their annual budget. this was an incremental process versus a real bottom-up process coupled with a growth strategy so as a management tool, the budget was relatively useless.
the owner also complained that his team were a “bunch of workers that could not make a decision” and that he needed help in crafting a transformation plan that would drive the company’s growth and profit and create a more effective management team.
when i get retained for this type of project, my first task is to shadow the leader for a day to see where they spend their time and what kind of leadership is being provided. i sat in the corner of his office and watched manager after manager coming in to ask, “how should we handle this” or “we have a problem with this customer’s order, what should we do” – you get the gist. i was fascinated to watch this ceo ask very few questions, tell the person what to do and all too often belittle the individual. not a healthy leadership style or a healthy culture to say the least. i had my work cut out for me on this one, but i knew that the ceo was very interested in changing and creating a more strategic focus for growth and more importantly creating a better team.
i planned and facilitated a two-day retreat focused on developing a two-year tactical plan and addressing leadership at all levels. it was a productive retreat, and the ceo was involved and supportive. we developed a strong two-year tactical plan (including improving the skills of his team) along with a project plan and left the retreat somewhat upbeat about the future. the plan depended on the ceo moving from managing to leading and giving his management team the authority to make decisions based on the boundaries that were agreed to at the retreat.
to make a long story short, at our first monthly status update, the ceo was obviously troubled, and after the meeting he and i met. i asked him what was troubling him. his answer was, “tony, no one is coming to me to ask what to do, and now i don’t know what i am supposed to do with my time.” regardless of what i suggested, like maybe visiting his key clients, he resisted. we both realized that he did not want to lead, he wanted to manage and over the next few months, his office became a turnstile again and the tactical plan became just words on a document – talk with no results. what’s the old saying about leading a horse to water!
although you might think the above is an extreme case, in my experience it was more the norm in so many organizations reflecting the challenge leaders face in stepping away from managing – building a strong team and leading the company. too many leaders are stuck in the center, because they don’t know any other way to lead or have the confidence in their team – so they manage.
success through edge leadership
this midsized accounting firm had delivered financial results year after year that most firms would envy. the firm was not unique in the services it provided, and operated in one of most competitive markets in the u.s. the leader had been the managing partner for a number of years.
i was retained to lead a retreat focusing on both longer-term strategy and addressing tactical challenges facing the firm. he was confident in his leadership and the performance of the firm and leadership, but he was interested in a facilitated retreat where all the partners could have the opportunity to think and challenge the future vision he had for the firm. he wanted to make sure that they were on a sound path forward and a path that everyone believed in.
during the retreat, we discussed the future opportunities and challenges facing the firm. we discussed and reaffirmed the five-year vision and what the firm aspired to become. the discussion was lively, and we left the retreat with a clear plan (strategies, deliverables, responsibilities, timing). the firm leader participated at an appropriate level and was active with me in ensuring that all the partners participated in the discussions. although the retreat was really good, the key for me to understand his leadership was as i observed his actions post-retreat. what made him an edge leader?
- forward vision allowed him and the leadership team to understand the developing opportunities and market trends and to thoughtfully and strategically adjust as needed.
- the focus on the drivers of financial results, not the financial results themselves allowed the team to maintain alignment between the key drivers of financial results and the actions of the team.
- the leader provided crystal clarity and communicated his expectations regarding what everyone in the firm was required to accomplish making sure everyone understood the purpose.
- he supported and allowed his team to manage, enabling him to focus on leading.
- there was consistency in his messaging about the future vision, mission and core values.
- transparency and communications enabled everyone to understand the financial results, the challenges the firm was facing and what was being done, the opportunities that were in front of them and how the firm would capitalize on each and finally where they stood against their goals.
- empowerment and accountability for results were alive and well and understood by all.
- difficult decisions were made in a timely manner, compassionately and with appropriate input.
while this edge leader’s expectations might be high versus what most firm leaders expect from their partners and staff, he made sure that his team clearly understood his expectations and that they understood the purpose – why these expectations mattered. he also made sure that everyone shared in the success of the firm and how far any one person rose in the organization was a result of individual choice and effort, not time in the firm or “connections.” he saw his role as coach and mentor to help each person’s individual choices lead to success for the firm and the individual. he understood that he needed the right people on the “bus” (jim collins) if the firm was going to be successful and remain a standout, high-performing firm.
as you evaluate if your leadership, here are the questions that you need to answer:
- are you managing or leading?
- are you driving strategy versus managing tactics?
- are you clear on the expectations you have for your leadership team and are they clear on the expectations for their team members?
- is everyone focused on doing the right things versus just getting things done?
- do you have the right people on your bus? is the ladder leaning on the right wall?
there are various reasons why the leader of a firm might spend most of their time managing as a center leader and not leading as an edge leader. the two primary reasons are:
- lack of confidence in their leadership team and therefore they feel the need to step in and manage
- lack of confidence in themselves as leaders, in their ability to inspire everyone to a shared vision of the future, in their ability to see the future unshackled by history, in their ability to lead – so they manage
“assembling the right team and then letting them lead and do their job is the responsibility of the leader.” – glenn friedman, leader of pragermetis
no leader can be effective if the team beneath him is ineffective for whatever reason. as jim collins in his great book “good to great” stated, you need to have the right people on the bus – period end of story.
edge leaders will challenge themselves regarding how they are leading and whether their leadership is taking the firm to where it needs to be in order to achieve its strategic objectives and become a standout, high-performing firm. edge leaders are never satisfied with where the firm is today, and are constantly assessing whether the firm is on the right path to achieve the future vision. center leaders, as in the first case study above, manage because that is what their experience tells them. edge leaders, as in the second case, lead from the edge and constantly toward their vision of the future because that is what they know will achieve success.
“i keep asking myself and others will what i am doing today help us get to where we want to be? don’t focus performance on what you did yesterday and historical metrics; tell me what you have done to move this firm forward to what we want it to be.” – jane scaccetti, leader of drucker & scaccetti