Being A Leader – Part 2
October 31, 2008
(Second In An Ongoing Series)
By John G. Stockman
Leading versus Managing – What’s the difference?
While it seems obvious, the question of what makes a good leader is vastly different than what makes a good manager. It actually took me some time to realize the difference and, then, to be able to articulate it clearly.
The responsibilities of managing, no matter what the venue, are usually something that can be mastered with training and experience. Rarely have I found people that persevere in management without the basic capabilities required to be successful in the role. People elevated to this role, whether early in their career or later, usually follow a learning curve and steadily gain the experience to be proficient at their role given the standard combination of time, experience and training.
But is managing actually leading? I have found that there is a great difference between the two. The best managers I have known have not always been the best leaders. The opposite is also true.
So what’s the difference? Since we are talking about the “being a leader”, I will focus on the skills and qualities that I have seen from some of the best leaders I have known.
First, and foremost, is the ability to accept risk. No matter how you look at it, being a leader involves exposing yourself to risk on a daily basis. The best leaders I have seen have an innate ability to understand, balance and act in the face of risk. In situations that give managers pause and force them to retreat to the rulebook, leaders look for opportunities to advance, challenge and succeed because they inherently understand that the risk is worth the reward.
Coupled with this, I have found good leaders also accept the consequences of failure more readily. These individuals not only know that they will fail at some point; they seem to draw strength from that knowledge and use it as a lever to higher achievements. They largely view failure, in its many forms, as a sign that they have pushed the boundaries of conventionalism and expanded the playing field for others.
To say that these individuals are fearless would be a misstatement. It is probably more true to say that they manage their fear more successfully than others. In some cases, I have met leaders who use their fears as a guide for the types or roles they take or challenges they seek out. They choose to confront their fears daily and propel themselves forward while creating an atmosphere where others see that quality and choose to follow them. This is the most common characteristic of high-performing organizations and teams that I have been exposed to throughout my career.
Finally, I don’t think any of these people would ever be true leaders and create such successes without one very important trait. It is hard to explain, but it is the willingness to let others be acknowledged. The best, most effective leaders I have seen are those that don’t seek the spotlight. These individuals know they depend on those they lead and go to great lengths to ensure those followers are acknowledged, supported and promoted routinely. Sharing the spotlight and building a sense of shared accomplishment is absolutely crucial to a leader.
Some would say that all of these skills apply to management as well as leadership. In my experience, that is not necessarily the case. Managers can manage without taking risks, recovering from failure or acknowledging others. They won’t move forward or be horribly inspirational to their teams, but they will maintain the order that is the fundamental function of management.
These three qualities or traits of a leader have been written about many times and by authorities far more qualified than me. And, to be certain, there are many other differences between managing and leading that can be discussed. But, these three continue to be the ones that I find are the foundation of being a good leader and not just a good manager.
Being A Leader – Part 1
October 23, 2008
(First In An Ongoing Series)
By John G. Stockman
I think we can all agree that the workplace is vastly different today than it was just a few short years ago. I entered the professional workforce in the mid-80′s after finishing college, ready to conquer the world because I was positive I knew more than everyone else. Of course, reality stepped on my neck soon afterward and I reluctantly became the typical young adult trying to make my way in the world.
I think the difference for me, however, is that I have always been fascinated by leadership and the people in those roles. Being “in charge”, was built into my personality by my family and I was never satisfied until I was in charge of something. It didn’t matter what it was, from being lunch monitor in grade school to being the President of a company, I was never truly happy with myself unless I was calling the shots in some way. Over the years, I took big risks that largely defied conventional wisdom if there was an opportunity to lead in any way. Some didn’t pay off, but most of them did.
So now, twenty-five years later, I’ve done the “leadership thing” and have turned my attention to helping others, especially those new to leadership roles, gain the skills, temperament and insight to survive the experience. That’s right, I mean survive. Being a leader, in just about any organization, is a bruising, exhausting experience that many simply do not survive. I don’t mean they die, I mean their career as a leader is cut short due to a lack of skills and being unprepared for the true nature of leadership. These people never reach their full potential because they weren’t ready to set foot on the leadership ladder.
And, oddly, the higher you climb the corporate ladder, the higher the bailout rate. Even worse, many of these high-level leaders lack really basic skills and perceptions and this has had profoundly negative consequences for their teams and organizations.
Over the past five years, I’ve spent more time coaching and mentoring senior level leaders than I have at the middle management tier. It seems that more often than not, these people are thrust into leadership roles without being truly prepared for the job. That has dire consequences for any organization and one that we ignore at our own peril.
So, with all that said, I’m launching a new series of articles this week that will focus on what I’ve learned through my clients are key concepts that need to be understood and addressed in order to build good leadership teams in any organization. I will hit on some “hot button” topics, to be sure, because some of my advice and insights run counter to the current conventional thinking. This series will address topics like -
- Why there is a difference between being a manager and being a leader.
- Reaching a consensus doesn’t always produce the best results.
- The importance of managed conflict.
- Clearly defining the roles, responsibilities and accountabilities for your leadership team.
- A performance review is designed to help your staff grow, so take it seriously.
- Your responsibility as a leader is to grow people so they can do your job.
- Beware the “keepers of the mediocrity” in your organization.
This series will take us through the end of 2008 and I will weave in current events and examples where appropriate.
This is a subject that I have great passion about as I believe we need to rethink our standards and lay the foundation for a new generation and better approach to leadership in all facets of life.
Business Survivability
October 16, 2008
Strategy In A Slow Economy
(part 4 of 4)
By John G. Stockman
For a few weeks, I have given some basic guidelines on surviving in a slow economy. Along the way, we’ve talked about products and customers and their connection to your organization as key to ensuring you and your company are still around when the “good times roll” again.
In that time, things have gotten much worse. We’ve seen a stupendous drop in stock markets, unprecedented intervention by governments in the free market economies and a creeping realization that not only are we in a recession, but we’re headed into an economic downturn that will be one for the history books.
So, now the question is, does any of this advice still matter? Can anything we business owners, entrepreneurs, managers and leaders do in our everyday lives help this situation? Have the rules been rewritten overnight for business? To me, the answer is simple and straightforward and can be summed up in one sentence. Do not panic. It may sound too simplistic, but think about it. As a matter of business history and economics, turbulent times present some of the greatest opportunities.
Why? Two reasons. First, many people will, undoubtedly, panic. These people will dump their business and entrepreneurial dreams and head to the relative “safety” of a full time job, if they can get one. That will leave more opportunities on the table for the risk takers to pick up. No doubt, some of these risk takers will hit on services, products and ideas that will play well with consumers and businesses even in this downturn. You should be looking for those opportunities and ideas right now. I know I am. I am consuming every piece of detail I can about industries, regulations and economics that I can right now to synthesize my understanding of the situation beyond the emotional and media-hyped paranoia. If you do the same, you will start to see opportunities. I know I am.
Second, with capital tight, companies will be looking for services and solutions that help them minimize costs, maximize their potential growth and position them for future growth. They know economics is a cycle of up’s and down’s and realize that the steeper the fall, the higher the climb is up the next hill. So, as I am starting to understand the true potential of this economic situation, I’m thinking about my existing customers and the customers I can go after by demonstrating my economic value to their strained business.
So, that’s if for this series. Hopefully, I’ve given you some useful ideas and insight. Look for my next series of articles on Leadership starting next Thursday (10/23/2008).
Understanding Your Customer
October 9, 2008
Strategy In A Slow Economy
October 8, 2008
(part 3 of 4)
By John G. Stockman
With the unprecedented wild ride we are all taking as the economy gyrates, I realized how relevant this next section on Strategy in a Slow Economy will be to most readers. Most of us think we know our customers, individually and as a group. The truth is that we usually don’t know them as well as we should.
Depending, of course, upon the nature of the goods and services you offer, the ability to understand what your customer is thinking, planning and even feeling, can mean a great difference in revenue in a slow economy. Even if your goods and services are largely discretionary, staying in routine communication with key customers becomes more critical during bad times. So, here is some advice that might help you think through your customer’s reactions to price cuts, reductions in services, increased shipping charges or any type of change that carries a perceptive or interpretive potential.
- Price changes without an explanation or sufficient notice will generate a reaction from your customer base that is not always the way you intended it to be perceived.
- Cutting your prices drastically can signal desperation and possible business viability concerns.
- Adding arbitrary surcharges that you believe are reasonable and warranted can be perceived as you squeezing “nickels and dimes” out of your customers.
- Changing prices more than once a year signals that you don’t understand business and economics and react hastily to circumstances.
- The message here is to be thoughtful about price changes. Don’t change your prices too often (regardless of whether it’s an increase or decrease). Plan routine price changes into your business cycle and, if you use a contract with your customers, make sure the price change cycle is in the contract.
- Make sure you communicate with your customers before the change is announced. Where possible, make personal contact with each customer via phone or in person. If an email announcement is necessary, make sure you give your customers someone/someplace to call with questions. And always make sure YOU follow up with a personal visit or call to your best customers.
Understanding your customer and managing their perceptions about your business, leadership and behavior will ensure you build a loyal customer base that trusts your products and services in good times and bad.