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Overcoming Catastrophe

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Your department just made a catastrophic blunder that cost your company money and reputational equity. How do you recover?
 
By the time two of my direct reports walked into my office one evening everyone else had gone home, which was just what the pair had in mind.

The news they carried was so bad, they didn’t want anyone to witness my reaction. And the reaction they expected was so bad they had spent hours in one of the manager’s office too afraid to break the news to me.

At the time I was director of an organization responsible for processing applications for energy efficiency programs. One such program had high public visibility and it was heavily regulated by the state.

We had only recently assumed responsibility for the program from another work group. During a routine (for us) internal audit of the program, one of the managers discovered substantial errors in the program’s enrollment process, errors that were not only embarrassing to the company but costly.

My reaction? A series of briefly worded questions asked in a calm demeanor. Do we know what caused the errors? Can they be fixed? Do you have a plan to fix them?

Yes and yes and yes were the responses.

Well, let’s put together an implementation plan for the fixes and take it to the boss for his approval.

Their relief at my reaction was so great they burst into laughter. “What? No emotional outburst? No recriminations? No blame? No panic? You don’t want us to go with you to see the boss?”

My reaction was heavily influenced by what a former boss modeled when I was party to a huge, high-profile faux pas. She took the blame for work that had been performed by others, including me.

I never forgot what she did; it taught me the importance of being supportive, not only for the people involved but also for the well-being of the organization. Moving forward, I was motivated to do my best work not cover my butt.

Now it was my turn to be supportive and in the weeks ahead the two managers not only fixed the problem that caused the errors, they created better tracking mechanisms and new procedures that improved the overall process.

Here are some important lessons I have learned as a leader when bouncing back from an organizational catastrophe:

Face the catastrophe head on… and promptly: Bad news does not get better because it’s older. Denial only delays the inevitable need to face the problem and adds nothing to solving the problem. Bringing the problem to light promptly means we can begin to develop potential solutions sooner rather than later.

I let my boss know immediately about the errors right after my meeting with the managers. I promised to bring him the expected fixes soon so that we could review them together. And because I was calm, he was calm.

Choose accountability: Accepting accountability means fessin’ up when others discover our mistakes and bring them to our attention; choosing accountability is telling others about our mistakes. When we choose accountability we seize control of what happens next, we are proactive participants in problem solving rather than victims of circumstances and the recipients of blame.

When my peers found out about the mistake, they were supportive. The director who led the organization in which the program previously resided offered to share the financial costs of the errors. We politely declined. Sharing the financial burden seemed like we were shifting, or at least sharing, the blame; nope, we weren’t going to do that.

Support the people: When errors occur, do not throw people under the bus, especially those who will help in the recovery. It’s one thing to hold people accountable, it’s another to blame and shame them.

By focusing on fixes not fault my managers went from people who were uncertain about their future to leaders who took pride in creating new ways of working that enhanced the process.

Remain confident: Despite the embarrassing nature of errors, do not shrink back into the shadows. Errors can erode confidence in our organization and what we do, hanging our heads only contributes to such an erosion.

Instead, we added the program’s performance metrics to our widely distributed performance dashboard. We knew we wouldn’t have anything to brag about for a few months while the fixes took hold but we weren’t going to live in the aftermath of a catastrophe. We were going to live in the land of solutions, because we were confident our senior leaders, our peers, and most importantly, our internal clients were confident.

No one wants to deal with the aftermath of a catastrophe but if we respond well, we can cope with catastrophe rather than be victimized by it.

About the Author

Greg WallaceAuthor, change agent and leadership trainer, Greg Wallace is CEO of The Wallace Group which consults organizations and leaders to implement change and transformation which produce results that meet the leader’s definition of success. Learn more about developing a personal model of leadership in his second book, “Transformation: the Power of Leading from Identity”.

Purpose Point of View

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No matter which way you turn, the focus on ‘purpose’ is everywhere. Whether it’s Mark Zuckerberg joining Bill Gates and Warren Buffet in a Giving Pledge, the six biggest global communications firms putting differences aside in a U.N. Common Ground Initiative pledging to eliminate poverty worldwide, to the rise of socially conscious companies embedding sustainability in all processes, purpose has broken the sound barrier among the business and popular media, forward-thinking magazines and business school curricula.

However, to mistakenly think purpose is something pursued only by socially conscious individuals and organizations or ‘in addition to our day job’ is to miss the point entirely. Purpose is that simple, yet powerful, human impulse to improve the lives of others or make a difference in the world. Purpose catalyzes behaviors from simple acts of service to a focus on professional excellence. It drives large efforts from spearheading a movement to bringing a game-changing product or technology to market. It animates us as people and fuels organizational innovation, value creation, and growth. Whether or not they understand the forces driving it, the smartest organizations are putting purpose at the top of their agendas—and those that ignore it, do so at their peril.

Most of us find our foundation for purpose, meaning and place in the world in our families, places of worship and institutions of higher learning. But these early roots of purpose are naturally challenged as we enter the workforce, where we spend the vast majority of our waking hours as adults. As technology rapidly brings us into the broader world – and the world into our living rooms – for many it brings with it a sense of loss of control and a corresponding disruption in our sense of identity and place. People yearn for some semblance of order to be restored and a greater connection to how they fit in this new world. The growing unease from this constant disruption is fueling a strong need for purpose, meaning and connectedness at all levels—individually, socially and in the workplace.

In fact, a recent Korn Ferry global survey of 1,000 executives finds that when it comes to what matters most, purpose trumps money. Only 3 percent of respondents said their personal principal driver at work was pay/financial rewards, while 73 percent cited that their primary driver was work that has purpose and meaning.

At its core, capitalism has never been a mechanism solely for the production of profit. Aside from hedge funds, risk arbitrage, FX traders and other derivatives solely established to make money on the margins, no company that sells a product or a service of any sort was founded strictly to turn a profit. People start companies with an idea, a discovery, a notion or some other impetus to bring some thing or service to the market place. And those people figured they could also make money doing it. Purpose is integral to corporate DNA and is ‘woven into the fabric of capitalism.’ (Huffington, Davos, January 2016).

However that’s not to say purpose can’t drive profit. In that same executive survey, more than two-thirds of respondents (70 percent) agreed to a great extent that there is a long-term financial benefit to companies that make strong commitments to purpose-driven leadership.

The key to long-term success is to stay focused on purpose and what really matters. Companies that begin with good stewardship must continue to stay true to their mission, vision and values as they grow, mature and reinvent themselves. Much like your current image when compared to a childhood photo, companies bear a resemblance to their former, nascent selves. It’s when organizations lose their connection to this original intent and customer focus that they lose their way. They cast about searching for a toehold by rebranding or restructuring with no meaningful understanding of how and why they exist. A collective amnesia about why they exist and whom they serve sets in and confounds the focus of the business.

In the end, establishing a line of sight into organizational purpose is a leader’s job – not just once as part of a visioning exercise – but rather continually incorporating purpose into every moment and process of leadership. To optimally engage business performance, personal, team and organizational purpose must be aligned.

About the Author

Janet FeldmanJanet Feldman is a Managing Principal for Korn Ferry Leadership and Talent Consulting, based in the Firm’s Minneapolis office.

As an executive coach, former licensed psychologist and certified public accountant, Ms. Feldman brings over three decades of experience advising C-suite and other senior executives. Her broad business knowledge and acumen bring insight and clarity to complex leadership issues.

Leadership Lessons from the United States Naval Academy – Staying Informed of Current Events

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StrategyDriven Leadership Lessons from the United States Naval Academy ArticleOrganizations operate within the context of their environment; the military being no different than civilian businesses. During their plebe (freshman) year at the United States Naval Academy, midshipmen are required to read two news and one sports page article each day in order to remain up-to-date on those current events impacting our nation and its military. Plebes are tested on their news selections and overall knowledge by upper classmen to ensure they are both conversant and understand the importance of the newsworthy events. Thus, plebes have impressed upon them the value of remaining aware of current events.

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About the Author

is a StrategyDriven Principal and Class of 1992 graduate from the United States Naval Academy. For over twenty years, he has served as trusted advisor to executives and managers at dozens of Fortune 500 and smaller companies in the areas of management effectiveness, organizational development, and process improvement. To read Nathan’s complete biography, click here.

Value-Added Leadership

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Every company has stakeholders, though a few with their own proprietary interests chart the course in their own vision, or lack thereof.

Within every corporate and organizational structure, there is a stair-step ladder. One enters the ladder at some level and is considered valuable for the category of services for which they have expertise. This ladder holds true for managers and employees within the organization, as well as outside consultants brought in.

Each rung on the ladder is important. At whatever level one enters the ladder, he-she is trained, measured for performance and fits into the organization’s overall Big Picture. One rarely advances more than one rung on the ladder during the course of service to the organization in question:

  1. Resource. Equipment, tools, materials, schedules.
  2. Skills and Tasks. Duties, activities, tasks, behaviors, attitudes, contracting, project fulfillment.
  3. Role and Job. Assignments, responsibilities, functions, relationships, follow-through, accountability.
  4. Systems and Processes. Structure, hiring, control, work design, supervision, decisions.
  5. Strategy. Planning, tactics, organizational development.
  6. Culture and Mission. Values, customs, beliefs, goals, objectives, benchmarking.
  7. Philosophy. Organizational purpose, vision, quality of life, ethics, long-term growth.

Value-added leadership is a healthy way of life that puts collaborations first. When all succeed, then profitability is much higher and more sustained than under the Hard Nose management style. Value-added leadership requires a senior team commitment. Managers and employees begin seeing themselves as leaders and grow steadily into those roles.

The ideal company could hopefully make the following answers to questions posed above, per categories on The Business Tree™, including:

  1. The business you’re in. You’re in the best business-industry, produce a good product-service and always lead the pack. Customers get what they cannot really get elsewhere.
  2. Running the business. The size of your company is necessary to do the job demanded. Operations are sound, professional and productive. Demonstrated integrity and dependability assure customers and stakeholders that you will use your size and influence rightly. You employ state-of-the-art technology and are in the vanguard of your industry.
  3. Financial. Keeping the cash register ringing is not the only reason for being in business. You always give customers their money’s worth. Your charges are fair and reasonable. Business is run economically and efficiently, with excellent accounting procedures, payables-receivables practices and cash management.
  4. People. Your company is people-friendly. Executives possess good people skills. Staff is empowered, likeable and competent. Employees demonstrate initiative and use their best judgment, with authority to make the decisions they should make. You provide a good place to work. You offer a promising career and future for people with ideas and talent. Your people do a good day’s work for a day’s pay.
  5. Business Development. Always research and serve the marketplace. Customer service is efficient and excellent, by your standards and by the publics. You are sensitive to customers’ needs and are flexible and human in meeting them.
  6. Body of Knowledge. There is a sound understanding of the relationship of each business function to the other. You maintain a well-earned reputation and are awake to company obligations. You contribute much to the economy. You provide leadership for progress, rather than following along. You develop-champion the tools to change.
  7. The Big Picture. Approach business as a Body of Work, a lifetime track record of accomplishments. You have and regularly update-benchmark a strategy for the future, shared company Vision, ethics, Big Picture thinking and “walk the talk.”

Value-added leadership embraces these characteristics:

  • Prepare for and benefit from unexpected turns, rather than becoming victim of them.
  • Realize that there are no quick fixes for real problems.
  • Find a truthful blend of perception and reality…with sturdy emphasis upon substance.
  • Continue growing as professionals, questing for more enlightenment.
  • Have succeeded and failed…and learned valuable lessons from both.
  • Learn and do the things it will take to assume management responsibility.
  • Be mentored by others. Act as a mentor to still others.
  • Don’t expect status overnight.
  • Measure their output and expect to be measured as a profit center to the company.
  • Learn to pace and be in the chosen career for the long-run.
  • Don’t expect that someone else will be the rescuer or cut corners in the path to success.
  • Learn from failures, reframing them as opportunities.
  • Learn to expect, predict, understand and relish success.
  • Behave as a gracious winner.
  • Acquire visionary perception.
  • Study and utilize marketing and business development techniques.
  • Contribute to the bottom line… directly and indirectly.
  • Offer value-added service.
  • Never stop paying dues… and see this continuum as “continuous quality improvement.”
  • Study and comprehend the subtleties of life.
  • Never stop learning, growing and doing. In short, never stop!

Key Messages to Recall and Apply Toward Your Business:

  • Understand the Big Picture.
  • Benefit from Change.
  • Avoid False Idols and Facades.
  • Remediate the High Costs of Band-Aid Surgery.
  • Learning Organizations Are More Successful.
  • Plan and Benchmark.
  • Craft and Sustain the Vision.

About the Author

Hank MoorePower Stars to Light the Business Flame, by Hank Moore, encompasses a full-scope business perspective, invaluable for the corporate and small business markets. It is a compendium book, containing quotes and extrapolations into business culture, arranged in 76 business categories.

Hank’s latest book functions as a ‘PDR of business,’ a view of Big Picture strategies, methodologies and recommendations. This is a creative way of re-treading old knowledge to enable executives to master change rather than feel as they’re victims of it.

Power Stars to Light the Business Flame is now out in all three e-book formats: iTunes, Kindle, and Nook.

How to “Zap” Executives Out of Their Comfort Zone

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In today’s fast-paced and ever-changing business environment, leaders must stay motivated. Motivated leaders consistently seek out new ideas to improve the business and are very aware of what the competition is doing. They enjoy what they do and are willing to take risks. They set the example for others. When you have motivated executives, you have motivated employees.

If your executives seem complacent, here are three proven strategies to “zap” them out of their comfort zone and get them motivated again.

The Weakest Link: Call an executive meeting to discuss the budget. Announce that you are cutting an executive position due to financial constraints. Throw them a ‘curve ball’ by instructing them to select the person who they consider the ‘weakest link’ and should be asked to leave the team. Have them submit a name, along with the reason for their decision.

Once the choices have been made, each team member will be instructed to call that individual and explain the circumstances that led up to their decision. Only you, the executive group leader, will know this exercise is a training technique. You really won’t let anyone go, but it will shake up the team and make those who aren’t pulling their weight aware of where they stand in the eyes of their fellow teammates. This will motivate them to get back into gear and give the extra effort necessary to take up the slack.

The Presentation: Give each executive a month to prepare a strategic plan on how to double the size of your business in five years. Then, surprise them by setting up a panel of business leaders who will listen to their presentation. Presentations will be rated for quality and a winner will be selected. This tactic will show how well your leaders adapt to unforeseen circumstances, and denote the strength of their presentation skills along with the quality of their work.

Back to Nature: To motivate executives as a team, let nature help. Take them on a retreat to a mountainous area, take away all cell phones, then have them camp out for five days, sleeping three to a tent, cooking their own meals over a small cook stove. With professional mountaineering guides, divide them into two teams and take them on daily hikes moving their campsite several times. Towards the end of the week have them climb up the mountain to the peak. Equip them with backpacks, water and climbing gear and start the trek at 4 a.m. Make it a race to the summit to watch the sunrise.

This tactic will “zap” the executives out of their comfort zones and force them to work together. It is designed to have each person explore their capabilities and push themselves beyond their limits. It can be one of the most powerful “Team Zapping” experiences you will ever conduct. We know. We did it.

The three tactics above are not for the faint of heart, but they are for those who want to quickly and effectively “zap” their executives out of their complacency. The benefits will be a more motivated, energized group of executives who will, in turn, zap their teams… and your company will be better poised for the future.

About the Author

Lorraine GrubbsLorraine Grubbs recently co-authored Beyond the Executive Comfort Zone: Outrageous Tactics to Ignite Individual Performance (www.executivecomfortzone.com). Lorraine is president of the consulting firm Lessons in Loyalty. As a former 15-year executive with Southwest Airlines, she takes principles and practices she helped develop to companies that strive for better employee engagement and loyalty.