The Power of Consequence

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Recently one of my clients asked the following, “What do I do if someone in my sales team never hits their targets? How should I handle that?”

That’s a good question & sadly its one we answer frequently.

Former US Secretary of State, Collin Powell made a powerful observation when addressing a Global Leaders Lecture series;

“Everyone in a team knows who is and who is not performing and they are looking to you as the leader to see what you are going to do about it.”

If you do not hold people accountable and confront poor performers, you cannot create a high performance team.  There must be consequences, and the reason for this is to keep your A players, the high performers in your team, engaged. No one wants to be part of a team that accepts mediocrity and if it is allowed to continue it destroys team culture. It also destroys your credibility as a leader and erodes respect.

Some tools for ensuring there are consequences:

  1. Include teams and individuals in planning and setting their team and individual targets. Agree one on one with each team member that what they are setting out to do is achievable, and that they are committed to it.
  2. Discuss results as a team and make results visible on a weekly basis
  3. Manage people individually. Meet with each individual one on one on a weekly basis to support high performers to get better and support poor performers to improve.
  4. Train regularly as a team. Leverage the skills and learnings of the high achievers.
  5. Be consistent. A consequence of not hitting a goal should be that it is confronted each time with a courageous conversation.
  6. Use Core Values and a simple set of team rules as tools to provide a framework for setting and managing expectations.

Your job as a leader is to support, grow and mentor your team.

There must be consequences for poor performance if a team is to grow and win in business today.

Everyone in your team knows who is and who is not performing and are looking at you as the leader to see what you are going to do about it. Move fast, have the courageous conversations and care about results.

High Standards Define Great Leaders

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‘Leaders have relentlessly high standards – many people may think these standards are unreasonably high’ – Jeff Bezos

In any organisation the leadership team set the standards. How this team operates sets the environment for the rest of the people in the wider team.

Many organisations have very talented people, great ideas, awesome tools of the trade to get the job done and a real mission but never get anywhere near their full potential. I have lead in several high performing military and commercial environments & currently professionally coach and support some fantastic CEOs, military officers and emerging executive leaders & there is no easy path/short cut to achieving success.

The standards & expectations you set as a leader will define the success of your team. As the leader you create the environment and the momentum to win in a tough environment.

The key drivers of leadership success;

  1. Growth Mindset. Experience and technical skills are critical but a growth mindset is the game changer. Leaders with a growth mindset ( as in high performance sport) believe they can learn and get better and better as a leader and as a team.
  2. Pick your team carefully. Most teams in business are long term so ensure those in key roles fit, have the desire to lift the game and are people you enjoy working and hanging out with. Surround yourself with good buggers.
  3. Diversity of thought rules. A range of different thinkers and backgrounds is a key to success. People who think differently and who are prepared to challenge your opinions and ideas can be confronting to many and a challenge to lead and align.
  4. Park the ego. If you want to achieve things the organisation has never done then you will have to be a better leader. More open to ideas, a driver of change, a facilitator of courageous conversations, better at alignment of your leaders within the team. Be prepared to adapt & iterate plans.
  5. Future focussed. A vision of the future drives inspiration, aligns decision making and provides a mandate for change ie doing what we do now with the structure and talent we have will not get us there.
  6. Expect more, far more. You have to be 20% better every year just to stay the same. Train together, have tough conversations, coach your people, get coaching yourself from professionals, seek mentors, hang out with peers, seek input from those who have done it, read, listen and apply things into real situations.
  7. Behaviours and meetings. Your ability to master the soft skills, to coach, to lead good meetings, to play with horizons and agendas are your best tools. Disrupting business as usual constantly in a good way is the role of a leader.
  8. Set and maintain high standards. This will at times be criticised and uncomfortable but those leaders who are courageous will get the respect of their teams by executing the important things that set the organisation up for future success.

Anyone can lead in good times but sadly not many can effectively lead and execute change in tough times.

How are you preparing for tough times ahead?

Business & Leader Succession: Panel Discussion

48% of NZ businesses will need to navigate the challenge of Leader, Founder and possibly ownership succession. It is a global trend as baby boomers come out of their business that will peak around 2028 – 2030. It also presents a massive opportunity to get right. How do you create a culture of leadership development and succession planning? How do you start to get your head around the journey ahead. This panel video is worth watching as you start the conversation and the journey.

Keynote: Leader of the Future

I do quite a few keynote speeches both for businesses, conferences and universities.

One I did recently in the USA was for the global software company Optym (www.optym.com). They videoed it and kindly made it available for my network.

If you are looking for a practical keynote around leadership, strategic thinking or execution (getting things done)  please connect.

Leader & Business Succession = The Big Opportunity

So often the topic of succession is ignored or seen as negative. The reality is that it offers a big opportunity to ensure business continuity, a legacy to be realised or an investment to be realised. A culture that invests in leadership assists greatly in ensuring that a business will thrive beyond its current leader (be that a founder, owner or professional CEO).

In this video John Spence and I discuss the topic and some of the challenges and opportunities.

Taking Tech to the World: Link ECU

A fantastic Canterbury Company taking High Performance Motor Sport Technology to the world. Link Engine Management is a global exporter of engine enhancing technology. As finalists in both the Champion Canterbury Business Awards and the New Zealand High Tech Business Awards in 2017 it has been a year of growth successes. I am proud to play my small bit as Chairman of the Board of Directors as we support a talented leadership, marketing, distribution, manufacturing and engineering team.

Succession: The big Leadership Opportunity

IMG_4437One of the biggest challenges many businesses face is that of succession. Too often it is seen as something negative, stressful or is an unspoken topic. Certainly it is one that can be full of emotion especially in family businesses or it can appear to be simply a problem too big to tackle.

It is considered the realm of Lawyers and Accountants and many seek to engage these professionals to “solve” the problem for them. Without a doubt they need to provide good advice but succession is a leadership issue rather than a technical problem. It is one that requires courage, planning, transparent communication, good ongoing advice from a number of specialists and clear decisions. It is a journey, not an event.

Succession is not just about an ageing business founder/owner. The professional CEO needs to develop other leaders in their team to be able to take over the their role when the time is right & any organisation needs to have some contenders who can take on the top role (whether they do or not will depend upon the needs) and this requires a culture of investing in leaders at every level to step up.

Each week we speak to & work with business leaders who are looking to get out of their business. I have personally supported many who have started and successfully completed the journey.

Ten recommended considerations;

  1. Face into the opportunity. Ignoring succession will not make it go away. A compressed timeline or sudden change due to death or illness significantly reduces the chance of long term success.
  2. Select those who will succeed you carefully. Make sure they fit, buy into the vision, care about the mission and people and build trust. Succession is all about people, decisions and change. Lead well.
  3. Plan for success. Have a plan with key milestones and understand the process and journey. Get all the people involved who need to be and get the issue on the table. Build a plan that will iterate and evolve.
  4. Understand that succession is part of the evolution of any organisation, business and family. Change is constant and people don’t deal with change well. Embrace the journey and don’t treat it like it is “negative” or an “event”. It is a fantastic opportunity to evolve your business and to ensure it thrives (not just survives) in the future.
  5. Get good advice. Have external help in getting the plan and issues on the table. Seek good legal and accountancy advice throughout the journey but don’t leave the “people” plan to a tax specialist or legal advisor. This is about people and change rather than just a structure or contract.
  6. Succession is all about the future so a good vision and strategy will be needed and good leaders who can execute change. Succession is about leadership so include it in all your leader development programs. If you don’t have a leader development program get one in place. Little bits regularly can really make a big impact on the future vitality of an organisation.
  7. Make good clear decisions at every stage and map out the decision points & timeline. Document and communicate things & keep things on track.
  8. Implement and invest in key structures that enhance success. Independent Governance (or a Advisory Board as an initial step), bringing the business under management, coaching and leadership development for key current and future leaders, good independent advisors, implementing legal and financial structures and processes based on future plans are all critical as a business moves into a space whereby the business is not reliant on the founder or owner. Many of these take considerable time to implement and re a real culture shift for the business.
  9. Network with those who have done it. Find those who have made the transition and ask questions. Hear what went well and more importantly learn form the mistakes they made as you look to apply things to your own situation.
  10. Enjoy the journey. For those who successfully navigate change and ensure that their business will ensure into the future providing for the next generation the rewards are great. If a trade sale is involved the satisfaction of seeing the business moving to a new level is exciting whilst at the same time providing a new found freedom.

Just start.

Advisory.Works in Action

Each week we are delivering valuable services as true trusted Advisors throughout New Zealand, Australia and the USA to High Performance Businesses and Executive Leaders looking to Execute, simplify their business and to increase their influence as professional leaders. A snapshot of the team in action.

Leading Leaders: Thriving in Change

We believe that in order to thrive (not just survive….thrive) in the future and an ever changing business environment, Leaders (and Businesses) need to constantly adapt, change, iterate and to lead their people with certainty.

This mission involves working with Business owners, Board Chairs and CEO’s who are looking to invest in their own leadership skills, grow other leaders & develop a clear strategic execution plan which they can execute continuously. The latter “Execution” piece is the important bit.

This is about getting things done, prioritising the important things over the urgent (disrupting business as usual in a good way) and leading behavioural change. This is getting the people in the business to change and do different things & sadly our world is full of people with great ideas but not people who can bring these ideas to life practically.

This short video outlines some of the work we do with long term clients as we support them to lead in change, succession and execution.