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Lessons from the Great American Leaders & How They Apply Now

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Three Reasons Why Leaders Fail

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It is unrealistic to expect that all forms of leadership are successful—because they are not. The nature of leadership is such that leaders are going to take risks and fail. An effective leader learns from failure and moves forward. However, there are failures in leadership not associated with risk taking that can undermine and paralyze an organization.

With any leadership failure, one must strive to distill the reasons and causes behind it. Such failures prevent leaders and their organizations from moving forward because the subsequent barriers and voids stifle a company’s ability to seek new opportunities. Consequently, the company will not be able to take advantage of situations that increase its competitiveness, productivity and market strength.

Everyone in the organization feels the effects of failure. Often these failures can be attributed to leaders who either are improperly trained or misapply leadership principles. In either case, they often fail by backsliding into old habits.

It is important for leaders to understand that their knowledge, expertise and leadership skills will be continually challenged in a volatile and complex work environment. Overwhelmed by time and work requirements, they can easily create a situation that causes leadership failure and leaves a void for their employees.

Leadership failure is generally the result of succumbing to the three shortcomings that are discussed in this section. Highly effective leaders learn to analyze the factors behind these shortcomings that hinder their ability to lead consistently, creatively and responsibly.

Barriers, unforeseen situations and negative influences are guaranteed to surface at one time or another to test one’s ability to lead effectively. These moments of adversity can disclose areas of ineffectiveness or challenge successes that have been achieved. Leaders need to take preventative action to make sure they do not succumb to these shortcomings.

Self-Imposed Barriers

Many leaders unintentionally create personal barriers that erode their ability to maintain leadership principles, methods and motivation. Leaders who discover themselves doing any of the following should take immediate action to stop.

  • “Backseat leadership” is exhibited through indecisiveness, fence sitting and avoiding responsibility.
  • Professional and personal goals are not formalized or articulated.
  • Leaders lack a positive approach to serious issues, or fail to present suggested solutions for a defined problem.
  • They don’t understand their own strengths and weaknesses, refuse to ask others for their input, and lack a personal improvement plan.
  • Different ethical standards are applied to their personal and professional lives.
  • They don’t share ideas, time, encouragement, respect, compliments and feedback with others.
  • Employees’ weaknesses are focused on and criticized when, instead, the leader should build on and reinforce the individual’s strengths and abilities.
  • They fail to work on personal development, or don’t take it seriously enough to make a difference.

Insufficient Understanding of Leadership

  • Leadership is always responsible. It is not simply a position, job title or a manager overseeing employees. It is both a science and an art that is constantly operating. It requires motivating, monitoring, talking and training through active hands-on involvement. It removes barriers to effectiveness. In sum, leadership is responsible for everything the organization does or fails to do.
  • Leadership means understanding that the factual basis of the organization continues to change. In other words, the thinking that made an organization’s success possible yesterday is the same thinking that can result in its failure tomorrow.
  • Technology will never be able to replace leadership. The question leaders answer is, “What is the organization going to depend on when technology undermines it?” It is dangerous to believe computers and technicians can replace leaders.
  • Leadership is about looking below the surface, since the greatest dangers and the biggest opportunities reside there, hidden unless searched out. Leadership also means seeing employees as an untapped resource that can collectively identify some of the best ideas and solutions to an organization’s problems. Leaders in this role look to workers for ideas, identification of problems and possible solutions.
  • Leadership requires looking beyond the horizon. It means acknowledging that success can blind an organization. Leadership skills encourage leaders to watch for changing trends, needs, potential devastating occurrences, and possible problems that can hinder an organization’s progress.

Inflexible Goals

Goal setting is a powerful tool—but only a tool; leaders should not make more of it than what it is. Leaders are masters of their goals: their goals serve them. Leaders often fail when goals are not adjusted to reflect their current knowledge about what is best for themselves or the organization.

Setting specific goals builds commitment to achieving results. However, maintaining an inflexible commitment to a goal is dangerous. The time invested or the costs associated with a specific goal can impair the leader’s ability to objectively assess the value of one goal over another.

As goals are pursued, leaders also need to continually seek new opportunities. They can accomplish both simultaneously by doing the following:

  • Think strategically each and every day.
  • Actively seek out daily opportunities.
  • Realize a leader’s job is to identify new opportunities and quickly take advantage of them.
  • Have employees think in terms of, “What if…?” or, “How could…?” or, “Why couldn’t we…?” and other mind-expanding questions.
  • Talk with others outside the organization to discover their views on future directions.
  • Seek information from people that have a different perspective. Leaders often gravitate toward people who are similar to them, who don’t challenge them sufficiently to make a difference.
  • Remember that goal setting does reign supreme when achieving organizational success. However, to prevent leadership failure, never let goals obstruct the identification of new opportunities that may be more valuable.

Related:

Your Personal Attitudes Shape Your Environment

When the Process of Change Spins Out of Control

The Value of Personal Experience and Expertise

If you are seeking proven expertise and best practices on dealing with the challenges of leadership to train or educate your employees to solve problems and improve their performance in this area, refer to Dealing with the Challenges of Leadership: Pinpoint Leadership Skill Development Training Series. Click here to learn more.

Timothy F. Bednarz, Ph.D. | Author | Publisher | Majorium Business Press
Author of Great! What Makes Leaders Great: What They Did, How They Did It and What You Can Learn From It (Finalist – 2011 Foreword Reviews‘ Book of the Year)
Linkedin | Facebook | Twitter | Web| Blog | Catalog |800.654.4935 | 715.342.1018

Copyright © 2014 Timothy F. Bednarz, All Rights Reserved

Eight Problem Solving Traps

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groupconflict

The process of problem solving can at first blush appear relatively simple: the difficulty is defined, facts and evidence are collected and analyzed, and a solution agreed to. However, because imperfect people make decisions, the entire process is fraught with traps that can lead to serious errors in judgment.

Problem solving is not to be taken lightly: it is a step-by-step process that when properly sequenced and followed should produce solid results. Unskilled problem solvers will often misinterpret the issues, attempting to solve symptoms rather than root causes, and makes the situation more confusing than it has to be.

It is important for individuals to understand that effective problem solving often consumes more time than most people are willing to invest. Rather than go about it properly, many just want to react and deal with the problem quickly. However, the time invested to thoroughly investigate and solve a problem more often than not produces a more successful solution—and happier employees and customers.

Individuals can easily fall into a number of common problem solving traps. The resulting consequences are often faulty decisions based on poorly framed questions, inadequate analysis and a host of other factors. Rather than solve anything, these traps often complicate the problem, making it more difficult to resolve.

‘Plunging In’

In this case, individuals begin to gather facts, data and information and form conclusions without thoroughly exploring the problem. They are in a reactive mode and desire to quickly dismiss the problem, which leads to faulty decisions based upon unsubstantiated assumptions. Such hastiness can worsen the situation and make the solution more elusive.

Wrong Problem

Individuals set out to resolve the wrong problem because they have established a mental framework for their decision with little or no forethought: they incorrectly frame the problem or use the wrong boundaries and reference points, causing them to overlook the best options or to lose focus on the issue.

Lack of Definition

Individuals fail to consciously define the problem in more than one way. In other instances, their definition is biased or unduly influenced by others.

Problems must be viewed and framed from a variety of perspectives to adequately define and resolve the problem. When definitions are limited, so are the available solutions.

Overconfidence

Individuals are too sure of their assumptions and opinions and they become overconfident, failing to collect key facts, data and information. They trust their intuition and the most readily available information or convenient facts without taking the time to fully investigate the problem.

Lack of Adequate Analysis

Rather than taking a systematic approach to problem solving, many individuals instead believe they can keep the facts straight in their heads. Consequently, they believe they are making intuitive judgments based upon the information available and don’t engage in careful analysis. Here, one often overlooks key evidence that can impact the ultimate solution.

Groups that fail to use good problem solving skills and processes can also fail to make sound decisions, or they fall into a groupthink mode where everyone agrees with one another without using critical thinking skills.

Faulty Interpretation

There are instances when people refuse to properly interpret the results of their analysis because it runs counter to their beliefs or does not fit their own set of assumptions. In other cases, pride gets in the way of arriving at an appropriate decision.

Failure to Keep Track

Many individuals assume they will automatically remember their past experiences. Research has demonstrated that when individuals maintain systematic records that they periodically review, they can distill valuable lessons that could be applied to later situations.

Failure to Have a Formal Process

People who fail to develop a formal problem solving process that they can use fairly and consistently will often repeatedly fall into the problem solving traps detailed in this lesson.

Excerpt: Problem Solving: Pinpoint Management Skill Development Training Series (Majorium Business Press, Stevens Point, WI 2011)

Related:

Decision-Making Begins When an Action Needs to Be Taken

Correctly Framing Problems Pinpoints the Right Solution

Leaders Need to Focus on Questions Rather Than Offering Answers

Six Critical Issues To Consider When Solving Problems

For Additional Information the Author Recommends the Following Books:

Developing Critical Thinking Skills: The Pinpoint Leadership Skill Development Training Series

Conflict Resolution: Pinpoint Management Skill Development Series

Intelligent Decision Making: Pinpoint Management Skill Development Training Series

Planning to Maximize Performance: Pinpoint Leadership Skill Development Training Series

Timothy F. Bednarz, Ph.D. | Author | Publisher | Majorium Business Press
Author of Great! What Makes Leaders Great: What They Did, How They Did It and What You Can Learn From It (Finalist – 2011 Foreword Reviews‘ Book of the Year)
Linkedin | Facebook | Twitter | Web| Blog | Catalog |800.654.4935 | 715.342.1018

Copyright © 2013 Timothy F. Bednarz, All Rights Reserved

Mistakes as a Source of Innovation

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Amazon CEO Jeff Bezos  Photo by David McNew/Getty Images

Amazon CEO Jeff Bezos
Photo by David McNew/Getty Images

Effective leaders adhered to an unalterable expectation that mistakes and failure need to be an acceptable part of the process of innovation. They opposed “zero tolerance for mistakes” policies, many of which are still being practiced in many companies today. They considered these to be hindrances to innovation.

“It’s easy to believe that Jeff Bezos is one of the great innovators. But that’s not exactly the case. His rise into Fortune 500-dom actually has little to do with innovation and more to do with iteration. If anything, Amazon demonstrates how a cutting-edge Internet company – of all things – can succeed slowly. The trick is taking a million tiny steps – and quickly learning from your missteps.” [1]

The mega-inventors of the 19th Century are also prime examples of this philosophy. “[George] Westinghouse (Westinghouse) built on his engineering skills, learning how to design and evaluate industrial trials. Time after time he turned trial failures into commercial successes. Even his competitors hailed his problem solving skills…” [2] “[Thomas] Edison (Edison Electric) viewed even disasters as an opportunity for learning. On one occasion his lab stove went out in the dead of winter, causing an assortment of expensive chemicals to freeze. On another occasion unprotected chemicals were damaged by sunlight. Instead of bemoaning the losses, Edison put aside all other projects to catalogue changes in the properties of the bottled substances… ‘He knew how to turn lemons into lemonade.’[3]

Walt Disney (Disney) took a proactive approach toward mistakes. “Walt found a way to push improvement without laying blame. [He] take(s) a look at what [someone says]… not glossing over a problem with the gag. He implicitly acknowledges it could be better. But rather than indulge an employee’s criticism of another worker, he demands a positive, forward-thinking attitude – ‘what we can do to make it better…’ Walt kept employees engaged and contributing by not shooting down suggestions, but instead steering employees toward improving their ideas… Walt’s approach to suggestions as the difference between responding ‘Yes, if…’ or ‘No, because…’ [4]

As Sam Walton grew Wal-Mart into a retailing giant, he realized that “not all of his ideas worked. The minnow buckets didn’t sell. People in Wisconsin didn’t go for his Moon Pies. But when he saw he was wrong, he admitted his mistake and went on to try something else. And he wanted his associates to be the same way. He’d get them together on Saturday mornings to share their success and admit their failures. That culture of candor produced a great environment to capture ideas. It helped that he had ‘very little capacity for embarrassment.’[5]


[1]  Quittner Josh, The Charming Life of Amazon’s Jeff Bezos (Fortune Magazine, April 15, 2008)

[2]  Quentin R. Skrabec, Jr., George Westinghouse: Gentle Genius (Algora Publishing, New York, 2007) p. 61

[3]  McAuliffe Kathleen, The Undiscovered World of Thomas Edison (Atlantic Magazine, December 1995)

[4]  Niles Robert, Disney Legends Recall Walt Disney and the ‘Yes, It…. Way of Management (Theme Park Insider, November 19, 2009)

[5]  Walton Sam Made in America. A Money Book Summary (character-education.info)

Excerpt: Great! What Makes Leaders Great: What They Did, How They Did It and What You Can Learn From It (Majorium Business Press, Stevens Point, WI 2012)

Read a Free Chapter

Timothy F. Bednarz, Ph.D. | Author | Publisher | Majorium Business Press
Author of Great! What Makes Leaders Great: What They Did, How They Did It and What You Can Learn From It (Finalist – 2011 Foreword Reviews‘ Book of the Year)
Linkedin | Facebook | Twitter | Web| Blog | Catalog |800.654.4935 | 715.342.1018

Copyright © 2013 Timothy F. Bednarz, All Rights Reserved

The Productive Response to Failure

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Fred Smith - Founder and CEO of FEDEX

Fred Smith – Founder and CEO of FEDEX

The great and influential leaders were no strangers to failure. My research illustrates that most experienced levels of failure and adversity that would compel typical individuals to pack their bags and quit in frustration and disappointment. The levels of success they achieved did not come easily, but from persistence. Their personal levels of perseverance and self-reliance are what realistically defined them. Most viewed failure as a learning experience, rather than a defining event. Fred Smith (FedEx) observed, “Just because an idea isn’t implemented or doesn’t work out doesn’t mean that a person has failed.” [1]

Early in his career at Johnson & Johnson, General Robert Wood Johnson taught James Burke a valuable lesson about failure. “Shortly after he arrived at J&J in 1953 as a product director after three years at Procter & Gamble, Burke attempted to market several over-the-counter medicines for children. They all failed-and he was called in for a meeting with the chairman.

‘I assumed I was going to be fired,’ Burke recalls. ‘But instead, Johnson told me, ‘Business is all about making decisions, and you don’t make decisions without making mistakes. Don’t make that mistake again, but please be sure you make others.’”[2]

In 2001, John Chambers (Cisco) saw his company’s revenues and stock price fall off the cliff during the tech and telecom busts. He was challenged with the reality of massive and likely fatal failure. “Within days of realizing Cisco was crashing, Chambers leapt into trying to fix it. ‘He never dwelled on it,’ says Sam Palmisano, CEO of IBM (IBM) … ‘John kept the company focused. He said this is where we are, and he drove the company forward.’

He reached out to [Jack] Welch (General Electric) and a handful of other CEOs. They told him that sudden downturns always take companies by surprise, ‘so I should quit beating myself up for being surprised,’ Chambers recalls. He did. Chambers decided that the free fall had been beyond his control. He now wraps it up in an analogy he retells time and again, likening the crash to a disastrous flood: It rarely happens, but when it does, there’s nothing you can do to stop it… Those other CEOs also told Chambers to figure out how bad it was going to get, take all the harsh action necessary to get through it and plan for the eventual upturn.” [3]

David Packard (Hewlett-Packard) faced failure and adversity in a gruff and straightforward manner. “When he returned to HP in the early 1970s after his stint as deputy secretary of defense and found the company on the verge of borrowing $100 million to cover a cash-flow shortage, he immediately met with employees and gave them what came to be known as a ‘Dave Gives ‘Em Hell’ speech. Packard lined up the division managers in front of employees and told them, ‘If they don’t get inventories under control, they’re not going to be your managers for very long.’ Within six months, the company once again had positive cash flow, to the tune of $40 million.” [4]

John D. Rockefeller (Standard Oil) advised, “‘Look ahead… Be sure that you are not deceiving yourself at any time about actual conditions.’ He notes that when a business begins to fail, most men hate ‘to study the books and face the truth.” [5]

[1] Federal Express’s Fred Smith (Inc. Magazine, October 1, 1986)
[2] Alumni Achievement Awards: James E. Burke (Harvard Business School, 2003)
[3] Maney Kevin, Chambers, Cisco Born Again (USA Today, January 21, 2004)
[4] O’Hanlon Charlene, David Packard: High-Tech Visionary (CRN, November 8, 2000)
[5] Baida Peter, Rockefeller Remembers (American Heritage Magazine, September/October 1988, Volume 39, Issue 6)

Excerpt: Great! What Makes Leaders Great: What They Did, How They Did It and What You Can Learn From It (Majorium Business Press, Stevens Point, WI 2011)

Read a Free Chapter

Timothy F. Bednarz, Ph.D. | Author | Publisher | Majorium Business Press
Author of Great! What Makes Leaders Great: What They Did, How They Did It and What You Can Learn From It (Finalist – 2011 Foreword Reviews‘ Book of the Year)
Linkedin | Facebook | Twitter | Web| Blog | Catalog |800.654.4935 | 715.342.1018

Copyright © 2013 Timothy F. Bednarz, All Rights Reserved

Have You Ever Been Overwhelmed By Your Personal Circumstances?

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Kelleher--William-Thomas-Cain-Getty-Images

Have you ever been overwhelmed by your personal circumstances? The current recession has caused many to despair over the problems that seem to overwhelm them… lost jobs, downsizing, pay cuts, you name it. Many just want to give up and quit!

What can the experience of the great leaders teach us? Despite nearly hopeless circumstances, the great and influential leaders’ steadfastness, perseverance and personal drive would never allow them to consider quitting.

Herb Kelleher (Southwest Airlines) faced overwhelming challenges when he initially launched his airline. He was immediately sued by his competition to prevent Southwest Airlines from making its first flight. He described his experience, “For the next four years the only business Southwest Airlines performed was litigation, as we tried to get our certificate to fly. After the first two years of defending lawsuits, we ran out of money. The Board of Directors wanted to shut down the company because we had no cash. So I said, ‘Well guys, suppose I just handle the legal work for free and pay all of the costs out of my own pocket, would you be willing to continue under those circumstances?’ Since they had nothing to lose, they said yes. We pressed on, finally getting authorization to fly…

Our first flight was to take off on June 18, 1971 and fly between Dallas, Houston and San Antonio. I was excited about being in the airline industry because it’s a very sporty business. But the regulatory and legal hoops enraged me. I thought if we can’t start a low cost airline and the system defeats us, then there is something wrong with the system. It was an idealistic quest as much as anything else. When we brought the first airplane in for evacuation testing (a simulated emergency situation) I was so excited about seeing it that I walked up behind it and put my head in the engine. The American Airlines mechanic grabbed me and said if someone had hit the thrust reverser I would have been toast. At that point I didn’t even care. I went around and kissed the nose of the plane and started crying I was so happy to see it.” [1]

Conrad Hilton (Hilton Hotels) went bankrupt during the Depression. “Faced with challenges that might have seemed insurmountable, he did what he had done since he was a boy—resolved to work hard and have faith in God. Others, it seemed, made up their minds to put their faith in Hilton. He was able to buy goods on credit from locally owned stores because they trusted his ability and determination to one day pay them back. As the kindness of others and his own ingenuity helped him rebuild his hotel empire to proportions previously unheard of, he solidified his commitment to charity and hospitality—two characteristics that became hallmarks both of Hilton Hotels and of the man who began them.” [2]

Walter and Olive Ann Beech (Beech Aircraft) started their company during the Depression. “‘She was the one that kept trying to get the money together to pay the bills,’ said Frank Hedrick, her nephew, who worked with her at Beech for more than 40 years and who succeeded her in 1968 as president of Beech Aircraft…

She said she didn’t give much thought to the problems of starting a new company at a time when most airplane companies were closing, not opening. ‘Mr. Beech thought about that,’ she said. ‘(But) he had this dream and was going to do it. He probably didn’t know how long the Depression was going to last.’ The first few years were difficult, she said. They sold few airplanes. ‘We had to crawl back up that ladder.’” [3]

Olive Ann Beech overcame additional adversity, when she took over the company, after her husband contracted encephalitis during the Second World War and again, after he suddenly died in 1950.

Joyce Hall (Hallmark) saw his company literally go up in smoke, three years after he started it, when his business burned to the ground. “Hall was $17,000 in debt when a flash fire wiped out his printing plant. Luckily, he was able to sweet-talk a local bank into an unsecured $25,000 loan, and he has not taken a step back since. By the late 1930, Hallmark was one of the top three cards.” [4]

Herb Kelleher (Southwest Airlines) “never considered giving up, despite having a wife and four children at home. Did stress keep him awake nights? No, Kelleher says he was already awake nights, working at his office. ‘I figured if I was working when they were sleeping, it gave me an edge.’ And when he was home, ‘the iron curtain came down,’ walling off the business worries.” [5]

Milton Hershey (Hershey Foods) failed miserably in his first endeavor, a confectionary store in Philadelphia. “In 1886, he was penniless. He went back to Lancaster but did not even have the money to have his possessions shipped after him. When he walked out to his uncle’s farm, he found himself shunned as an irresponsible drifter by most of his relatives.

This time, though, fortune finally smiled on Mr. Hershey. William Henry Lebkicher, who had worked for Hershey in Philadelphia, stored his things and helped him pay the shipping charges. Aunt Mattie and his mother began once again to help him and Milton started experiments which led to the recipe for ‘Hershey’s Crystal’ a ‘melt in your mouth’ caramel candy made with milk.” [6]

“In 1924 [Clarence] Birdseye (Birdseye Foods) helped form the General Sea Foods Co. in Gloucester, Mass., and he began freezing food on a commercial scale… But despite an infusion of cash from a few investors as well as the creation of specially made freezers to hold his product, the country was not yet ready to accept the prospect of frozen food. It took another seven years before Birdseye’s vision came to fruition. As time passed, he continued his experiments with the quick-freezing process… Almost bankrupt, Birdseye continued to press for believers in his inventions. In 1925 he found one in the guise of Postum Cereal heiress Marjorie Merriweather Post.” [7]

Walt Disney (Disney) not only went bankrupt, but also experienced additional adversities. “The company failed due to Disney’s inability to manage the finances, but Disney persevered, continuing to believe in himself and in his dream. He teamed up with his brother, who took care of the financial side of the business and the two moved to Hollywood to found Disney Brothers’ Studio.

But there would still be stumbling blocks. The studio created the popular Oswald the Lucky Rabbit cartoon character for Universal, but when Disney requested an increase in budget, producer Charles B. Mintz instead hired away most of Disney’s animators and took over production of the cartoon in his own studio. Universal owned the character’s trademark, so there was little Disney could do.

After the Oswald fiasco, Disney set about creating a new cartoon character to replace Oswald. That character became one of the most recognizable symbols in the world: Mickey Mouse.” [8]

[1] Kristina Dell, Airline Maverick (Time Magazine, September 21, 2007)

[2] Gaetz Erin, Conrad Hilton’s Secret of Success (American Heritage People, August 2, 2006)

[3] Earle Joe, Olive Ann Beech Rose to Business Greatness (The Wichita Eagle, February 11, 1985)

[4] The Greeting Card King (Time Magazine, November 30, 1959)

[5] Vinnedge Mary, From the Corner Office – Herb Kelleher (Success Magazine, 2010)

[6] Milton S. Hershey: 1857-1945 (Milton Hershey School; mhs-pa.org)

[7] Elan Elissa Clarence Birdseye (Nation’s Restaurant News, Feb, 1996)

[8] Bostwick Heleigh, Turning a Dream into a Kingdom: The Walt Disney Story (LegalZoom, July 2009)

Excerpt: Great! What Makes Leaders Great: What They Did, How They Did It and What You Can Learn From It (Majorium Business Press, Stevens Point, WI 2011)

Read a Free Chapter

Timothy F. Bednarz, Ph.D. | Author | Publisher | Majorium Business Press
Author of Great! What Makes Leaders Great: What They Did, How They Did It and What You Can Learn From It (Finalist – 2011 Foreword Reviews‘ Book of the Year)
Linkedin | Facebook | Twitter | Web| Blog | Catalog |800.654.4935 | 715.342.1018

Copyright © 2013 Timothy F. Bednarz, All Rights Reserved

Using Change to Increase Performance

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woman-w-data

The impact of change can often seem overwhelming to leaders, as most problems associated with it require the complete cooperation and participation of employees. This is especially true of problems occurring during the incremental phases comprising major changes, requiring countless decisions before effective solutions and methods can be implemented.

A single event or person does not control change. Change is often brought about by a series of internal and external forces that impact all within the organization. The forces that bring about change are too dynamic for any single individual to oversee and direct. Consequently, for change to be managed and controlled effectively, the willing participation and input of an organization’s entire workforce must be harnessed.

Change demands that all employees become actively involved, not only in the process of change itself, but also in the many decisions that change requires if a successful transformation is to occur.

Decision-making and leadership is a dynamic process in the face of change. Rather than passively dealing with change, leaders must become proactive in their decision-making, using the dynamics of change to increase performance and improve overall results.

The elements that enhance overall decision-making in a dynamic atmosphere include:

Freely Empowered Employees

There is no set formula or pattern for implementing or dealing with change. As an organization transforms itself, change is implemented by countless daily decisions made at all levels of the organization, which are solely guided by the leader’s vision. Unless employees, teams and workgroups are freely and fully empowered to make these decisions, a centralized decision making process remains in effect. This only works to hamper the organization’s ability to readily adapt to change. Centralized decision making quickly bogs leaders down, greatly reducing their effectiveness and motivation.

Leaders must ensure their employees are free to make operational decisions on issues impacting their jobs and performance. Even reluctant employees will be swept into the waves of change, compelling them to be full, active participants in the process, regardless of their feelings or apprehensions.

Free-Flow of Information

The facilitation of effective decision-making demands an open exchange of information. In the past, managers controlled information as a means of holding power and influence. In the face of change and transformation, all parties must be free to share all useful information and data so that more informed and lower-risk decisions can be consistently and expediently made.

A free-flow of information is not channeled into a single direction. It demands progression openly and in all directions, so that all parties are fully informed regarding the progress and impact of change at any given point in time. This gives the organization the ability to react quickly, and also allows it to readily adapt to changes on a needed basis.

Open Communication

Leaders must facilitate open channels of communication. Open communication encourages otherwise reluctant employees to report bad news or poor results free of fear of retaliation or punishment. If change is to be effectively managed, employees must feel free to openly communicate their feelings, observations, criticisms and findings with confidence that what they have to say will be fully respected and considered.
Encourage Experimentation

Change incorporates countless new ideas and concepts. Employees must be encouraged to take risks and try new methods and experiments. Not every idea will be successful or even feasible. Because of the pioneering nature of change, it is imperative employees understand they will be awarded the necessary freedom to experiment and tinker with new ideas, trial-and-error methods and creative concepts in order to isolate what works does and does not work.

The fact that many ideas might fail should be emphasized to help reduce frustration levels. In the midst of change transformation, failure is not as important as the lessons gained from it. Employees need to be encouraged to share their findings with others in the organization. The key is to test quickly and frequently in order to move the organization forward as expeditiously as possible.

Frequent Assessment

Leaders should hold frequent meetings with their employees to assess the progress of change within the organization. Their primary purpose is to share information and results based on the successes and failures of various ideas, trials and approaches.

Meetings should be used as a tool to tap the power of the group and provide realistic feedback and suggestions from astute observations. A successful meeting generates multiple employee perspectives and insights in order to disclose and detail what is working or not working within the organization.

Drive Down Decision Making

Leaders must drive decision making down deep within their organization. They must allow employees, teams and workgroups to make the daily tactical and operational decisions directly affecting their individual jobs.

Allowing members of the organization to generate decisions and solutions does not mean the leader shuns the responsibility of remaining actively involved in their decision making process. Rather, the decisions are guided by the leader’s vision and direction, and many will necessitate his or her input. However, to get the most out of their employees on a consistent basis, leaders empower them to make group and individual decisions having a direct impact upon their individual performance.

Close the Decision Making Loop

Leaders must ensure all decision-making loops are closed by closely monitoring the results of the collective decisions of their employees, teams and workgroups. Leaders must then share these findings with their employees so they can make any necessary adjustments, improvements or modifications based upon their feedback. Readjustment and the quest for improvement will naturally channel the process back to the starting point of the free-flow of information.

Excerpt: Facilitating Change: Pinpoint Leadership Skill Development Training Series (Majorium Business Press, 2011) $ 17.95 USD

Related:

Dealing With the Challenges of Change

Anticipating and Handling Employee Fears of Change

Use These Seven Strategies to Respond to Change

Communication Has to Start With Telling the Truth

For Additional Information the Author Recommends the Following Books:

Facilitating Change: Pinpoint Leadership Skill Development Training Series

Impact of Change on Individuals: Pinpoint Leadership Skill Development Training Series

Dealing with the Challenges of Leadership: Pinpoint Leadership Skill Development Training Series

Improving Workplace Interaction: Pinpoint Leadership Skill Development Training Series

Strengthening Leadership Performance: Pinpoint Leadership Skill Development Training Series

Timothy F. Bednarz, Ph.D. | Author | Publisher | Majorium Business Press
Author of Great! What Makes Leaders Great: What They Did, How They Did It and What You Can Learn From It (Finalist – 2011 Foreword Reviews‘ Book of the Year)
Linkedin | Facebook | Twitter | Web| Blog | Catalog |800.654.4935 | 715.342.1018

Copyright © 2013 Timothy F. Bednarz, All Rights Reserved

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How You Respond to Failure Defines You as a Leader

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Every one of us experiences failures and faces adversities. Our response defines us as a leader. The great and influential leaders were no strangers to failure. My research illustrates that most experienced levels of failure and adversity that would compel typical individuals to pack their bags and quit in frustration and disappointment.

The levels of success they achieved did not come easily, but they were persistent. Their personal levels of perseverance and self-reliance are what realistically defined them. Most viewed failure as a learning experience, rather than a defining event. Fred Smith (FedEx) observed, “Just because an idea isn’t implemented or doesn’t work out doesn’t mean that a person has failed.” [1]

James Burke – Johnson & Johnson

Early in his career at Johnson & Johnson, General Robert Wood Johnson taught James Burke a valuable lesson about failure. “Shortly after he arrived at J&J in 1953 as a product director after three years at Procter & Gamble, Burke attempted to market several over-the-counter medicines for children. They all failed-and he was called in for a meeting with the chairman.

‘I assumed I was going to be fired,’ Burke recalls. ‘But instead, Johnson told me, ‘Business is all about making decisions, and you don’t make decisions without making mistakes. Don’t make that mistake again, but please be sure you make others.’”[2]

In 2001, John Chambers (Cisco) saw his company’s revenues and stock price fall off the cliff during the tech and telecom busts. He was challenged with the reality of massive and likely fatal failure. “Within days of realizing Cisco was crashing, Chambers leapt into trying to fix it. ‘He never dwelled on it,’ says Sam Palmisano, CEO of IBM (IBM) … ‘John kept the company focused. He said this is where we are, and he drove the company forward.’

He reached out to [Jack] Welch (General Electric) and a handful of other CEOs. They told him that sudden downturns always take companies by surprise, ‘so I should quit beating myself up for being surprised,’ Chambers recalls. He did. Chambers decided that the free fall had been beyond his control. He now wraps it up in an analogy he retells time and again, likening the crash to a disastrous flood: It rarely happens, but when it does, there’s nothing you can do to stop it… Those other CEOs also told Chambers to figure out how bad it was going to get, take all the harsh action necessary to get through it and plan for the eventual upturn.” [3]

David Packard – Hewlett – Packard

David Packard (Hewlett-Packard) faced failure and adversity in a gruff and straightforward manner. “When he returned to HP in the early 1970s after his stint as deputy secretary of defense and found the company on the verge of borrowing $100 million to cover a cash-flow shortage, he immediately met with employees and gave them what came to be known as a ‘Dave Gives ‘Em Hell’ speech. Packard lined up the division managers in front of employees and told them, ‘If they don’t get inventories under control, they’re not going to be your managers for very long.’ Within six months, the company once again had positive cash flow, to the tune of $40 million.” [4]

John D. Rockefeller (Standard Oil) advised, “‘Look ahead… Be sure that you are not deceiving yourself at any time about actual conditions.’ He notes that when a business begins to fail, most men hate ‘to study the books and face the truth.” [5]

  1. [1] Federal Express’s Fred Smith (Inc. Magazine, October 1, 1986)
    [2] Alumni Achievement Awards: James E. Burke (Harvard Business School, 2003)
    [3] Maney Kevin, Chambers, Cisco Born Again (USA Today, January 21, 2004)
    [4] O’Hanlon Charlene, David Packard: High-Tech Visionary (CRN, November 8, 2000)
    [5] Baida Peter, Rockefeller Remembers (American Heritage Magazine, September/October 1988, Volume 39, Issue 6)

Excerpt: Great! What Makes Leaders Great, What They Did, How They Did It and What You Can Learn From It (Majorium Business Press, Stevens Point, WI, 2011) Read a FREE Chapter.

Related:

If You Put Fences Around People, You Get Sheep

Does Compassion and Empathy Have a Role in Leadership?

Emotional Bonds are a Reflection of a Leader’s Effectiveness

Do You Have Faith in Your People?

Timothy F. Bednarz, Ph.D. | Author | Publisher | Majorium Business Press
Author of Great! What Makes Leaders Great: What They Did, How They Did It and What You Can Learn From It (Finalist – 2011 Foreword Reviews‘ Book of the Year)
Linkedin | Facebook | Twitter | Web| Blog | Catalog |800.654.4935 | 715.342.1018

Copyright © 2013 Timothy F. Bednarz, All Rights Reserved

Are You Willing to Pay the Price to Succeed?

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Blank_Marcus

All of the great leaders I surveyed experienced what I describe as the Crucible Principle. It states that:

Individuals experience a prolonged, but undetermined period of adversity, disappointment, discouragement and failure early in their careers, which either refines them or breaks their spirits. How they respond to these circumstances will define their character, refine their critical thinking and establish their legitimacy as a leader.

Individuals who do not undergo crucible development early in their careers will not develop the critical thinking skills and character to handle adversities, problems and crisises that will arise in the future. This will result in more difficulties, which will place them at a disadvantage, and undermine their legitimacy as a leader.

Leadership greatness is achieved only after individuals experience an emotional caldron full of adversity, setbacks, failures and obstacles that refine both their character and their vision.

It is a period where courage and fortitude are tested and cultivated. In general, many individuals who experience the Crucible Principle encounter unrelenting waves of pain, disappointment, chaos, confusion and discouragement. They see no end in sight. They simply give up and quit.

“Resilience from the trials of life’s adversity has always been the filter that separates folk heroes from other leaders. Anthropologist Joseph Campbell profiled ancient leaders across cultures and revealed a shared ability to transcend crushing defeat.

This was rooted in a drive for a lasting legacy that can provide for a mythic sense of purpose to ‘triumph the despair and shame of failure. Setbacks actually challenge us to come back with an even greater sense of mission…

Many other great leaders, such as Home Depot founder Bernie Marcus, Vanguard founder Jack Bogle, Staples founder Tom Steiuherg and Jet Blue founder David Neelenian, created revolutionary enterprises only after having been fired as victims of power struggles.

Others, such as Autodesk’s Carol Bartz, led strategic transformations while battling life-threatening health crises; and some, such as lifestyle maven Martha Stewart, came back as a hugely successful leader following time served in prison. ” [1]

The existence of this principle and the number of times it surfaced was particularly surprising during the course of my research. The great leaders surveyed experienced difficult levels of adversity, including a sizable number of obstacles they had to overcome.

Success didn’t come easy to them, and it was far from automatic. They were relentless in the levels of persistence they demonstrated, buttressed by the strength of their personal vision. They refused to quit and accept failure. When they encountered failure, they picked themselves up and started over again, and sometimes more than once, until they ultimately succeeded.

The existence of the Crucible Principle was supported by the fact that the average age of the leaders surveyed who started their business or achieved their first major corporate position, was 34 years old.

This means between 13 to 16 years of their lives were spent working their way into a position of responsibility. This data is predicted on the assumption that most started working when they were between 18 to 21 years old.

Some notable examples include: Jack Welch, who started his career at General Electric as a junior engineer, almost left in frustration during his first year, Arthur Vining Davis (Alcoa) was the third employee to be hired at the Pittsburgh Reduction Company (Alcoa) as an assistant; and Arthur Blank (Home Depot), who began his career with the Handy Dan Hardware Company, where he worked for 14 years until he was fired as a regional manager.

An additional significant factor was the duration of the application of the Crucible Principle. My research establishes that it averages 12 years in length. This typically is a period filled with pain, heartache, frustration and failure.

The great leaders’ ability to succeed and prevail ultimately determined their future success. For any individual seeking immediate success, this should be an eye opening fact.

During my own younger years a personal mentor constantly reminded me: “The wheel of success turns very slowly.” Some notable examples of the Crucible Principle include Herb Kelleher (Southwest Airlines), who waged a four-year legal battle before he flew a single passenger, just to incorporate and start-up his airline. During the early years of its existence, he was forced to sell one of his four airplanes to meet his payroll.

It took Joe Wilson, president of the Haloid Company, twelve years of frustration and continuous investment to commercialize a patent that he had purchased for xerography, to produce the first Xerox machine.

Jeff Bezos observed, “Optimism is essential when trying to do anything difficult because difficult things often take a long time. That optimism can carry you through the various stages as the long term unfolds. And it’s the long term that matters.” [2]

Once the great leaders emerged and achieved levels of prominence, they averaged 25 years in their positions. This does not mean that their lives were easy and carefree. These typically were periods of continuing conflict and adversity, yet they also were the most productive periods of their lives.

Malcolm McLean had founded a successful trucking business. Looking for a way to solve shipping bottlenecks and lower overall costs, he used his resources to develop containerizing cargo.

His innovations ultimately revolutionized the shipping industry through the standardization of an integrated system of containers, ships, railroads and harbor facilities. His ideas virtually impact the entire world due to the expansion of global trading.

Henry Flagler made his fortune as John D. Rockefeller’s partner at Standard Oil. He used his considerable financial resources to create the tourism industry in the State of Florida by building railroads and elegant resorts.

Related:

Does Luck Play a Role in a Leader’s Success?

Do You Have the Fortitude and Resolve to Continue?

Leaders Possess a Deeply Embedded Sense of Purpose

Leaders Possess an Absolute Love for What They Do

References:

  1. Jeffrey Sonnenfeld, Fired With Enthusiasm (Directorship) April 1. 2007
  2. Rob Walker, Jeff Bezos: Amazon.com – America’s 25 Most Fascinating Entrepreneurs (Inc. Magazine) April 1, 2004

Excerpt: Great! What Makes Leaders Great: What They Did, How They Did It and What You Can Learn From It (Majorium Business Press, Stevens Point, WI 2011) Read a Free Chapter

Timothy F. Bednarz, Ph.D. | Author | Publisher | Majorium Business Press
Author of Great! What Makes Leaders Great: What They Did, How They Did It and What You Can Learn From It (Finalist – 2011 Foreword Reviews‘ Book of the Year)
Linkedin | Facebook | Twitter | Web| Blog | Catalog |800.654.4935 | 715.342.1018

Copyright © 2012 Timothy F. Bednarz, All Rights Reserved

Written by Timothy F. Bednarz, Ph.D.

December 14, 2012 at 11:31 am

Does Luck Play a Role in a Leader’s Success?

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Andrew Carnegie

Andrew Carnegie

It is often easy to attribute the success of great and influential leaders to pure luck. Undoubtedly, some turned out to be the right person in the right place at the right time. However, they also had to have the right skills and abilities to build on the opportunities presented to them.

“[Andrew] Carnegie (Carnegie Steel) was well aware that his success was in large part the result of being in the right place at the right time. Obviously, he had business and personal skills to help carry him, but Carnegie was introduced to the right industry (telegraph), where he met the right businessmen, who then introduced him to investing and the steel industry.

And this just wasn’t the steel industry that we see today. It was the steel industry in the times of America’s expansion west. Hundreds of thousands of railroad miles, a majority made from Carnegie steel.” [1]

P.T. Barnum (Ringling Brothers & Barnum Circus) noted, “There is no such thing in the world as luck. There never was a man who could go out in the morning and find a purse full of gold in the street today, and another tomorrow, and so on, day after day: He may do so once in his life; but so far as mere luck is concerned, he is as liable to lose it as to find it.

‘Like causes produce like effects.’ If a man adopts the proper methods to be successful, ‘luck’ will not prevent him. If he does not succeed, there are reasons for it, although, perhaps, he may not be able to see them.” [2]

While luck and happenstance do play varying roles, success is more attributable to creativity, hard work, foresight and preparation. Take the example of James J. Hill (Great Northern Railway) where “part of the notable accomplishment of Hill and his associates lay in simple luck…

But more important were Hill’s talents: his remarkable mastery over every detail of what was now a far-flung operation, his vision of the inevitable triumph of transcontinental through-carriers, his insufferable iron will and work ethic, and his recruitment of an able coterie of men…” [3]

Ray Kroc (McDonald’s) observed, “‘Luck is a dividend of sweat. The more you sweat, the luckier you get.’ Despite all his hard work, Kroc was not always a lucky man.

From his early days in starting up McDonald’s to even after the chain was a well-established global presence, Kroc experienced his fair share of failures. He was not immune to disappointment; what set Kroc apart from his competitors, however, was how he learned from his failures and bounced back.” [4]

For Milton Hershey (Hershey Foods), “success was not simply a matter of luck. Having learned from his past failures, he had become a shrewd and astute businessman.” [5]

The skills and characteristics the great and influential leaders employed enabled them to identify and maximize the opportunities that presented themselves. These individuals may have been lucky in being at the right place at the right time, but far more was required to capitalize upon available opportunities, which were presented to them. Many others at the same time were presented with similar opportunities.

Yet they failed to achieve similar levels of success. This was because they didn’t possess the same skills, competencies and knowledge to understand what was needed to grasp the significance of the opportunities, and the actions and practices to maximize them.

Related:

  1. Leaders Possess an Absolute Love for What They Do
  2. Did You Ever Want to Just Give Up and Quit?
  3. Do You Believe in Yourself?

References:

  1. Begley Jonathan, Book Review: Andrew Carnegie by David Nasaw (http://jonathanbegley.wordpress.com, January 5, 2010
  2. Barnum P.T., Money Getting or Golden Rules for Making Money (Self-Published)
  3. Michael P. Malone, James J. Hill – Empire Builder of the Northwest (University of Oklahoma Press – Norman 1996) p. 150
  4. Use Failure as a Catalyst for Success (greatmanagement.org, February 12, 2009)
  5. Milton S. Hershey (www.ideafinder.com)

Excerpt: Great! What Makes Leaders Great: What They Did, How They Did It and What You Can Learn From It (Majorium Business Press, Stevens Point, WI 2011) Read a Free Chapter

Timothy F. Bednarz, Ph.D. | Author | Publisher | Majorium Business Press
Author of Great! What Makes Leaders Great: What They Did, How They Did It and What You Can Learn From It (Finalist – 2011 Foreword Reviews‘ Book of the Year)
Linkedin | Facebook | Twitter | Web| Blog | Catalog |800.654.4935 | 715.342.1018

Copyright © 2012 Timothy F. Bednarz, All Rights Reserved

Written by Timothy F. Bednarz, Ph.D.

December 13, 2012 at 10:26 am

“Success is the Sum of Details”

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Bill Gates, former CEO of Microsoft Photo by Win McNamee/Getty Images)

Bill Gates, former CEO of Microsoft
Photo by Win McNamee/Getty Images)

Harvey Firestone (Firestone Tire) stated, “success is the sum of details.” The great leaders uniformly paid extraordinary close attention to details.

It is an important attribute or aspect of their thinking. It influenced virtually every aspect of their lives, which ranged from ruthless efficiency to product quality, to how they treated their employees. As architects of growth, their attention to detail allowed them to formulate comprehensive plans and blueprints, which supported the building and growth of their companies.

Many leaders like James J. Hill (Great Northern Railway), Sam Walton (Wal-Mart) and Robert Wood (Sears) all devoured as much data and information as they could get their hands on, to generate detailed plans and blueprints for their business, as did William Boeing (Boeing) and John Jacob Astor. Bill Gates (Microsoft) “also has incredible focus and knowledge of his industry. As Ross Perot once noted, ‘Gates is a guy who knows his product.’ ”

In addition to paying close attention to details, the great leaders developed unparalleled competence and expertise through years of experience. They all emerged from long and dark valleys of frustration, disappointment, adversity and often failure, which tested their mettle, polished their skills and competencies and generated deep levels of perseverance and resilience.

None of the great leaders surveyed ever appeared to succeed without first enduring what I call a long and frustrating “crucible period.” These experiences and the lessons gained within this “crucible period” allowed them to possess the necessary skills, experience and expertise to take advantage of opportunities presented to them. They were able to recognize them for what they were, and knew how to plan and profit from them.

A notable example is Theodore Vail (AT&T). He “left the post office service to establish the telephone business. He had been in authority over thirty-five hundred postal employees, and was the developer of a system that covered every inhabited portion of the country.

Consequently, he had a quality of experience that was immensely valuable in straightening out the tangled affairs of the telephone. Line by line, he mapped out a method, a policy, a system. He introduced a larger view of the telephone business… He persuaded half a dozen of his post office friends to buy stock, so that in less than two months the first ‘Bell Telephone Company’ was organized, with $450,000 capital and a service of twelve thousand telephones.” [1]

In 1902, one hundred years after it was founded, E.I. du Pont de Nemours and Company, commonly known as DuPont, was sold by the surviving partners to three of the great-grandsons of the original founder, led by Pierre du Pont. He had grown up in the family business and had developed the necessary expertise to assume control over it. He understood the associated problems, issues and weaknesses that needed to be rectified, and drafted and executed the necessary plans to transform the company.

“As chief of financial operations, Pierre du Pont oversaw the restructuring of the company along modern corporate lines. He created a centralized hierarchical management structure, developed sophisticated accounting and market forecasting techniques, and pushed for diversification and increasing emphasis on research and development.

He also introduced the principle of return on investment, a key modern management technique. From 1902 to 1914, Pierre kept a firm rein on the company’s growth, but with the onset of World War I he guided DuPont through a period of breakneck expansion financed by advance payments on Allied munitions contracts.” [2]

As a primary supplier of paints and lacquers required for automotive production, DuPont became a major investor in General Motors. Pierre DuPont replaced William Durant, the company’s founder, as CEO. DuPont made a key decision in promoting Alfred Sloan to the office of president. Sloan developed a detailed blueprint that transformed GM into the largest industrial company the world had ever known at that time.

He “created structure so people could be more creative with their time and have it be well spent. He also came up with the idea that senior executives should exercise some central control but should not interfere too much with the decision making in each operation.

It is difficult to describe many of Sloan’s ideas because most of them would seem like common concepts of a business, yet they were new and innovative at the time. Largely due to his invention, GM became the pioneer in market research, public relations and advertising. Before Sloan, people had totally different conceptions of these common parts of the American corporation.” [3]

Due to Sloan’s success, his corporate model highly influenced the development of the modern American corporation. His theories were actively practiced for over 50 years and remained unchallenged until Jack Welch’s (General Electric) influence permeated the mid-1980s.

Related:

  1. Do You Have the Talent to Execute Get Things Done?
  2. Linking Structure to Action
  3. The Value of Personal Experience and Expertise

References:

  1. Casson Herbert N., The History of the Telephone. Chapter II (February 1, 1997)
  2. Pierre S. du Pont: 1915 (www2.dupont.com)
  3. Alfred P. Sloan, Inventor of the Modern Corporation (Invent Help Invention Newsletter, August 2004)

Excerpt: Great! What Makes Leaders Great: What They Did, How They Did It and What You Can Learn From It (Majorium Business Press, Stevens Point, WI 2011) Read a Free Chapter

Timothy F. Bednarz, Ph.D. | Author | Publisher | Majorium Business Press
Author of Great! What Makes Leaders Great: What They Did, How They Did It and What You Can Learn From It (Finalist – 2011 Foreword Reviews‘ Book of the Year)
Linkedin | Facebook | Twitter | Web| Blog | Catalog |800.654.4935 | 715.342.1018

Copyright © 2012 Timothy F. Bednarz, All Rights Reserved

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