Category: Disciplined Execution

Posted on

2022: Leadership Lessons I Learnt

Did we have a good year? 

That’s the question I put to my business partner Greg Allnutt on the 16th of December 2022 at our team function as we shared a number of Central Otago Pinot Noirs.

It might be an odd question and although I knew it had been a good year, we were both exhausted that afternoon and eager to start a 4 week summer break.

The year had screamed past in a blur for all of us at Pivot & Pace!

We have grown our business & our team, launched a new service into the market, invested in ongoing learning & education, sponsorships, grown partnerships with other like minded professional organisations & focussed relentlessly on helping our clients to grow, evolve, change…..to get break throughs. 

The outcome was a range of client metrics & client successes we are proud of. A lot of work but upon reflection fun work, challenging work and meaningful work. It has been a year of leading change, planning, supporting governance and business restructures, being involved in funding/capital raises, business sales & merges, innovation projects, training, coaching, learning, studying, collaborating, facilitating, networking and at times counselling. As a company and team we made definitely a big impact in 2022!

As I reflect, there were times I felt overwhelmed at the amount of work and complexity of it, It seemed far more serious than other years and sometimes I felt quite isolated given the amount of travel and the requirement to work alone away from the office and team support. I know that many directors and CEO’s have felt the same way and in reality it was year 3 of the covid pandemic & there are a myriad of other converging uncertainty we face in the business world.

In fact many executive teams and individuals reported feeling exhausted mid year and again in October and many were like me…..eagerly anticipating a good summer break.

What leadership lessons did I learn? I looked back over my reflections journal and there are many, many learnings. Here are my top 5 big ones.

  1. Leadership is not a popularity contest. Not a new learning but perhaps a good reminder. Not everyone will like you, your approach, your decisions or how you do it….. & that’s ok. There have been a number of times I have had to stop, reflect, challenge my thinking, reflect on values and either change or be comfortable that it is OK. Moral courage, a documented leadership philosophy and values have paid dividends in time of constant change & lots of ambiguity. Lead yourself well before expecting to do well in other areas of leadership. Remain humble, always seek to be better & don’t take yourself too seriously!
  2. When you care you give a bit of yourself. When woking closely with good leaders as their trusted adviser it is hard not to take on some of their stress. When dealing with complex issues at board and executive level & constant, ongoing change it takes a toll. The regular breaks, keeping fit and pursuit of personal interest are important to maintain and easy to skip. Plan and stay focussed.
  3. Be connected & Keep Learning. A network of mentors, like minded professionals, coaches, friends and family are critical for support & to keep you grounded, on track and to have a bit of fun. Success makes you soft (certainly it is a lousy teacher). Stay true to who you are and when things go off track – reflect, regroup and start again.
  4. We are in a period of ongoing and relentless change (& it is just beginning!). With that comes risk (for sure) but more importantly huge opportunities for those leaders and organisations that can remain agile, focussed and who have a long term vision. Disrupt Business as usual to ensure the important stuff is being implemented rather than just the next urgent thing. A ten year Vision allows you to adjust the strategy many times.
  5. Give back. Each year I work with a number of future leaders and organisations (for no pay) because I love their passion and potential. Some of these investments have paid huge dividends in terms of the impact it has made, the networks it has allowed me to join and the leaders who have gone on to do many things. Givers definitely get….in may ways. Serve with pride.

Always be prepared – Opportunities do not schedule appointments

Key personal achievements over the year;

  • Our business and team has grown. Those in the company have worked hard, contributed 100% and made an impact. 
  • Successfully completed a course of study at Harvard Business School in Disruptive Strategy.
  • It was my 18th year of self employment.
  • Professionally exited two boards as an independent director at the end of my tenure (EMD Advantage Ltd & Groundline Engineering Ltd) and joined two other boards (Oderings Garden Centres & The Connect Group Ltd).
  • As a company we launched the “Operational Leader Programme” which was developed at the request of client feedback. This is an extension of our Executive Leadership Programme.
No alt text provided for this image
Gisbourne Bull sale week. Talking bull with the Chair of Angus New Zealand.

Some key personal stats over the year that I track annually; 

  • Completed 215 fitness/physical workouts. Averaged 32 minutes per day & 8725 steps per day across 2022.
  • Averaged 7 hours and 23 mins of sleep per night over the year.
  • Took 49 flights for work including 3 trips to Australia with clients.
  • Over 2022 I worked as a strategic adviser to 21 different executive leadership teams
No alt text provided for this image
  • Worked on 9 boards of Directors (transitioning off 2 & being appointed to 2 more) and worked as a Strategic adviser/strategist to 9 other boards.
  • Across 2022 attended (as a director) 58 Board meetings chairing 23 of them
  • Facilitated 42 strategy sessions.
  • Facilitated 16 customised leadership workshops for various executive teams.
  • Delivered 211 one on one formal coaching sessions for 42 different Executive leaders.

2022 was a busy and professionally rewarding year.

Lean in! Today I begin the 2023 work year and all the opportunities it brings.

Posted on

2021: Leadership Lessons I have Learnt

2021 has been a very fulfilling year personally and professionally. It has roared by, filled with challenging work, fun times and great people. Not many days go by without reflecting on the fact that I love what I do and the people I get to work with.

No alt text provided for this image
With Greg Allnutt

Covid again dominated the year as businesses navigated shut downs, global supply chain melt downs, closed borders, vaccination roll outs and significant geopolitical change. Overall the global and NZ economy has performed well but 2022 looks to be equally full of change and uncertainty.

2021 Personal milestones;

  • Much more work from home including a 3-week total lock down. Nice to be able to mix work & home life.
  • Our children turned 20, 4 and 3. My eldest daughter studied at AUT in Auckland until August and then finished the academic year online from Christchurch.
  • We continued to develop our home, section and garden which has been a fun project.
  • A Labrador pup joined the family in May adding (chaos) to a busy family.
  • My father had several operations relating to cancer and has regained his health as he turned 78. He continues to live with us.
  • Over the last 12 months (according to my Apple watch) I averaged 9318 steps per day, exercised on average 31 minutes per day, completed 315 workouts and slept on average 7 hours and 26 minutes per night. Pretty happy with that!
  • I was awarded my “Infantry Bayonet” for 25 years service in the Royal New Zealand Infantry Regiment. I was really humbled to receive this and it came out of the blue after an invite to a 2/4 Battalion formal dinner. This award from the Royal New Zealand Infantry Regiment means a lot to me and my 28 years of military service is something I really am proud of.
  • I took 4 weeks off at Christmas and 3 one week breaks during the year. We had a camper van holiday at Easter, took time at the family farm and holidayed in Twizel. It was a chance to explore with the kids, do some hunting, rest, read and catch up with family
No alt text provided for this image

2021 Business & Consulting Milestones

  • My 17th year of self employment.
  • Our company (Pivot and Pace) grew by 25% in both top and bottomline revenues and 7 new people joined our team in both consulting and support roles. Our team now sits at 12 and growing.
  • We appointed a General Manager to run the business day to day and a second independent director to our board. This is part of our succession planning as we look to scale our business.
  • Our Executive Leadership Coaching services grew by 30% and I personally delivered 307 one on one sessions working with 45 executive leaders. (Across NZ, Australia, the UK, the USA and India). This is now our biggest growth area in the business with the demand for sustainability strategy being a close second.
  • I personally facilitated 38 strategic planning sessions, 19 customised leadership team workshops, worked with 22 senior leadership teams, attended 55 board meetings (chairing 30 of them), completed 13 webinar training sessions as a student, delivered 5 key note speeches & took 40 domestic flights.
  • We moved offices in May and fitted them out.
  • I attended the NZ High Tech Business Awards in my role as Chair of Link Engine Management Ltd as finalists in the “Company of the Year” category. Whilst we did not win the top award, we were proud to be alongside some of the countries most admired brands.
  • We hosted a Black Tie Leadership dinner for 25 business leaders at the Christchurch Club with Shaun Maloney sharing his journey as CEO of Seequent after being successfully sold to Bentley for $1.05Bn USD.
No alt text provided for this image
With Shaun Maloney
  • I took on an independent directorship with Groundline Engineering as Board Chair. Groundline are a specialist, privately held NZ power engineering company delivering services across New Zealand, Australia and the United Kingdom.
  • After facilitating the new Vision & Strategy for the Board of Angus NZ, I accepted a role as their first independent director. Angus NZ is the largest NZ breed association and I really enjoy working with farmers and agri-business leaders. My grandfather was a Angus NZ breeder in the 1960’s and my Uncle was a former Chair and life member. Growing up around black cattle on our family farm I have enjoyed reconnecting with the industry.
No alt text provided for this image
The Board of Angus NZ 2021
  • We completed our first year as a sponsor of the Canterbury Institute of Directors and have recommitted for 2022 & 2023.
  • Our relationship with NZTE continued to grow as we engaged with NZ export companies seeking Strategy and Strategy Execution services.
  • John Spence remains a key strategic partner in our business and our regular zoom meetings keep us connected with US based businesses and trends.
No alt text provided for this image
  • Our network of formal strategic & collaborative partnerships has continued to grow to 9 (including our long standing partnership with John Spence LLC in the USA).

I have learnt a lot and there are some interesting patterns we are seeing across business and the leaders we work with. I think the next 5 years and beyond will continue to be the most challenging ever for businesses looking to grow and scale. With that in mind it is important to reflect on the lessons learnt.

What valuable leadership lessons did I learn in 2021?

  1. Talented employees are leaving their mediocre bosses/leaders. Referred to as “the great resign” this pattern is being put down to people reassessing life priorities and leaving good jobs despite not having secured their next role. Personally I think much of this relates to the mediocre leaders that they work for. Leaders who don’t inspire, can’t connect, won’t adapt and look at new ways of leading just won’t be tolerated in a tight labour market where there are many options. Research shows over 50% of the NZ workforce is looking to move jobs in the next 12 month!
  2. Burn out is high. The pace of change is relentless. Everyone is tired and working hard and constant change/uncertainty adds to the stress. Managing tempo and ensuring everyone takes time off is critical to manage this. No organisation can be a maximum capacity all the time. Resilience levels across the board are low which won’t bode well if 2023 throws a big curveball or three!
  3. Many business models are failing to deliver what is currently needed. Out of date constitutions and business models that were designed for the 20th century are being challenged at present. Some create barriers to growth, succession and acquisition. Some of these things should have been addressed years ago. This will continue to be a big challenge and in some cases will be a catalyst for failure. Certainly we see national and local government struggling to keep pace with things, infrastructure is groaning, climate change is hitting home and the stage is set for some real disruption in the near future.
  4. Most Leaders don’t/can’t or won’t change their style. Those leaders who cannot flex or adapt their style of leadership are finding it really hard to lead succession, younger generations, change and to execute strategically. New skills and ways of engaging people are needed. 19% of the workforce in NZ and Australia is actively engaged. This is the outcome of poor leadership. On top of that our productivity is low despite working long hours.
  5. Many Boards suck at Strategic Thinking in Governance. This year, more than ever before, we have been involved in restructuring Board of Directors. Some companies have removed all their independent directors and recruited a totally new board. Board Chairs have been found wanting and there is a real shortage of skilled directors to take on Chair roles. With the pace of change boards need to work harder and be more adaptable to keep up with the pace of change that management teams are operating in. To think strategically and to stay ahead of the future challenges of the company requires more director development, more external advisers to the board and more strategic input.
  6. Trust the process. In times of constant change and uncertainty it is hugely valuable to have a framework and process within which to operate. Regular reviews, lessons learnt, professional development, intentional culture, speed of execution, data informed decision making and clarity on priorities mean there is a need for robust processes. Certainly I have found our strategic framework has never failed to deliver the outcomes needed. That said there have been times that we have just needed to trust the process and push forward.
  7. Opportunities abound. Never has there been more opportunity, nor a more exciting time to be leading in business. With any change there is opportunity and in constant change this is magnified if leaders can keep a clear head, create the space to explore the market and can execute. Exciting times indeed!

As you reflect on the year what were your milestones? What did you learn as a leader?

Posted on

The Impact of Establishing an Effective Advisory Board

I recently spoke in Christchurch at an Institute of Directors event on the impact Advisory Boards can have for businesses who choose to implement them. There was then a panel discussion that further explored the topic.

I currently have four independent directorships (currently chairing two boards). In my consulting role I work as a strategist, high performance leadership coach and adviser to a number of Boards of Directors. At any one time a number of our client companies are restructuring Advisory Boards or establishing them for the first time.

In my opinion establishing an Advisory Board is a great way to add some real value to a business. It is a safe way to test the waters as to whether a formal board structure is the right course of action and a safe way for long term business owners to get their heads around this option. Interestingly founders having had an advisory board and then going on to establish a full board often reflect that they wish they had established the formal board from the get go. That said there is usually a healthy desire for an Advisory Board as a logical stepping stone.

The purpose of an advisory board is to allow the directors of the business to access regular strategic advice from a group of trusted advisers familiar with the business who can contribute to the future success of the business. It’s also a robust platform for working on the business rather than in it. 

The IOD 4 pillars book (starting page 80) has a chapter on Advisory Boards and I point this out it as a very good reference. I particularly like very first headline bullet point – “Advisory Boards provide advice but do not make decisions and have no authority to govern.”

Legally an Advisory Board offers advice which the directors of the Company can choose to adopt or not. The advisers are effectively operating in a consulting capacity and the minutes must be careful to note that these conversations are such. This prevents those advisers from being deemed as acting in the capacity of a director. 

In my experience the key advantages of establishing an effective Advisory Board are;

  • They allow the shareholder, director and management discussions to be separated often for the first time. This adds structure and clarity. Shareholder expectations can be discussed in a separate meeting allowing the directors to focus fully on governing the business.This then starts the process of allowing the MD or GM to drive the business day to day.
  • Different Advisers can be engaged come for certain pieces of advice or thinking which changes the discussion and allows deeper/broader consideration of advice.
  • The Advisory Board is a stepping stone for succession that allows founders to get out of their business day to day. They can begin to see and understand how they can govern their business without being in it day to day. If run effectively it allows a discussion that rises above the day to day operations of the business……to give that valuable helicopter view of the business.
  • A strategic agenda can be discussed and a focus put on the execution that creates momentum.
  • The way decisions have traditionally been made is challenged and creates different outcomes.
  • Trust is built as to how to listen to advice and take advice. Many businesses seek advice but don’t adopt that advice. In my view when a business starts to value the advice and implement it the business starts to grow up. There are break throughs as the important things start to get addressed.
  • If the business is coming under management it allows a platform that supports the CEO/GM to be given the autonomy to lead. It helps the founder get out of the way whilst providing the confidence that there is still accountability and transparency. It can allow founders to have a management role that may not be making the key decisions day to day.

There are a number of ways to approach the implementation of an advisory board and certainly every situation is subtly different. Getting this right can really allow a business to get key break throughs and to realise their potential.

Posted on

The future of Governance

Governance is an important component of any business. All companies have directors but not all place an emphasis on its importance nor the value it can add. It is a key part of succession (allowing owners the transition or sell), accessing external funding, maximising value to shareholders and reduces business risk as the organisation navigates change or challenge. On top of that it supports talented CEO’s to thrive and reach their potential.

Posted on

The Fog of (War) Business

Out of Chaos comes Clarity

On the battle field the fog of war refers to the fact that it can be very hard to see the full picture of what is happening let alone how you are progressing your part of it. Smoke, dust, noise, reactions of the enemy, weather, other friendly forces in the area all contribute to a situation that can be hard to navigate, easy for clear communication to fail & difficult to make clear decisions amongst.

So too in the current business environment. How do you as a leader get the clarity and confidence needed to make good solid decisions when the future seems full of uncertainty, technology change, economic disruption, challenged supply chains and changes that require rapid responses?

A few proven big ideas to consider;

  1. Invest in your team. Continually building trust, close relationships and digging deeper in the “self” awareness and “other” awareness space builds support and empathy. Teams who have each others back can have robust discussions, align and then roll their sleeves up and get the mahi (work) done. Now is a very good time to invest in your team collectively and individually. Little bits regularly on an ongoing basis creates confidence and helps with alignment & effective communication.
  2. Bring the outside in. It can be too easy to be inwardly focussed within your own business and this increases your risk profile. Share insights, information and seek to understand the bigger picture across the market. By taking a much broader approach it will allow you to make better informed and timely decisions. Engage broadly with trusted advisers, collaborate with like minded professionals & constantly ask your clients for feedback. There has never been more collaboration between organisations including competitors.
  3. Schedule and prioritise regular reviews, strategic updates and industry scans. If things are moving fast increase your meeting rhythm. This means scheduling more reviews (not less) and opportunities to pause, take stock of the situation, make clear decisions, review previous decisions and execute change in an aligned and coordinated way. It can be too easy to cancel these important reviews and become consumed by immediate challenges. Sadly this creates confusion, increases the workload, levels of frustration and chaos. Plan, plan and plan.
  4. Make good clear decisions with the best data and information available but be prepared to adapt and iterate the plan as things change. It is important to execute through a series of reviews and decision points. Data wins arguments and moves a discussion away from strong opinions so it is always worth looking at the key numbers and the patterns that are emerging.
  5. Bank the valuable lessons learnt. Reflect regularly on what is working, what isn’t and ensure the same mistakes are not made time and time again. Success breeds more success and confidence.
  6. Take regular breaks, have fun and celebrate the wins. Keep across your team and ensure they take time out, look after their family and recharge. This period of change will be ongoing and a marathon (rather than a sprint). Teams who make it a priority to celebrate the key wins regularly have a sense that hard work is paying dividends. It is just as important to acknowledge what is going right than to constantly focus on what isn’t. Celebrations don’t have to be huge in fact most don’t need anything more than setting aside some time to acknowledge people and achievements.
  7. Ask for Help. Seek help from those in your team, your mentors, coaches, members of your board, others in your peer group. You don’t need to know & in fact can’t have all the answers, rather seek to build a network around you from whom you can seek expertise, experience and information.

Without a doubt the current environment an exciting time to be leading in business. As professional leaders we owe it to those within our team, company and their wider families to be at the top of our game. The fog of (war) business can be challenging and even overwhelming at times and we can all learn from how others approach it.

How are you leading in times of uncertainty?

Posted on

Reflections on the Last Two weeks: USA & NZ/Australia

I caught up with John Spence today & we reflected on a busy two weeks since we last spoke. A lot has changed in both the USA & in our part of the world here in NZ & Australia. Whilst each country faces a different situation there are some common emerging patterns & challenges that leaders are facing across industries as they lean into the Covid-19 impact.

Posted on

2019: Leadership Lessons I have Learnt

IMG_1274
Manhatten, New York: sep 19

2019 has been a fantastic & full on year working as part of a talented team and supporting some of the top companies across New Zealand, Australia and the USA. It is important to reflect on achievements, leadership lessons and to recharge in preparation for the projects we are taking on in 2020……..a new decade.

On the home front a baby girl (Sahara) joined our family on 30 Dec 18, so it’s been exciting having another wee one in the house. We moved house, our eldest daughter graduated from St Margarets College & was accepted to study at Canterbury University next year. Our wee boy turned 2 so home life was hectic with many firsts such as talking, walking & other family milestones. It’s been a year where sadly some good friends have died & we’ve supported close family (& several clients) with cancer. So it’s been fulfilling but certainly not plain sailing!

It was my 15th year of self employment, I took 53 domestic & international flights, completed 143 physical work outs (not enough), slept on average 6 hours per night (more needed) & Averaged 9907 steps per day (stats courtesy of my Fitbit). I delivered 208 one to one coaching sessions (for directors, CEO’s and executive leaders), facilitated 23 strategic planning sessions/reviews, developed & delivered 18 one off leadership workshops for Executive Leadership Teams & attended 34 Board & Advisory Board meetings (chairing 31 of them). I took seven weeks off to recharge, rest and have time with family.

In my Army role as an Infantry Battalion commander we have led change, deployed soldiers on operations & been involved in responses to fires in Nelson & floods in Westland as well as the Christchurch mosque shootings which rocked our nation to the core. 2/4 Battalion joined the Army’s operational 1st Brigade (NZ) in July & this role was 67 days work of my work. S

In governance roles there was challenge, break throughs & pivots. During a visit to the USA in my role as Link Engine Management Chair (along with our CEO) we visited some of the top companies in the world (Google, Apple, Facebook, Air BnB, AllBirds amongst 10 others) that since start up have been client centric & design thinking focussed. This was part of a NZ Trade & Enterprise “Better by Design” Tour and involved leaders from 20 NZ export companies. This was a life changing learning experience, as we visited New York & San Francisco over 10 days. I learnt so much about client centricity, culture by design & leading change.

In my role as part of the University of Canterbury MBA Advisory Board, I was lucky enough to be able to have a small part in a bold modernisation of the UC executive leadership programme. A move that reflects the current reality of business leadership and (in my personal opinion) it will allow UC to become one of the most innovative & relevant tertiary providers in the country for experienced leaders looking to pivot their career & lift their leadership impact.

As a business owner we have lived what we teach. We have grown our team numbers & our revenues & profits by 25%. This is an outcome of working with some fantastic clients & business partners & invest in in long term trusted relationships. Our approach supporting chairs, boards, business owners, CEOs & Exec teams to get significant break throughs, has been recognised in the market through growing referral networks. We have measured staff engagement & client loyalty via bi annual surveys & used this information to build on our offering. The Christchurch team will be delivering 22 pre booked leadership workshops in January & February 2020 alone so it is going to be a busy start to the year.

So what leadership lessons have I learnt over the year?;

  1. Business Leaders need to get serious to lead in constant change. It is time lift to your game if you want to succeed globally. Whilst we have some fantastic NZ companies doing very well internationally (in fact a number are clients), they have invested heavily in intentional, qualified and experienced leaders who focus on culture and inputs rather than just the outputs. Too many businesses aspire to compete at a high level but leave their leadership to chance. They invest in the best independent directors, executive leaders and strategic thinkers with an emphasis on execution combined with client focus and great products/services and constant adaptability. The old NZ “no 8 wire” attitude, whilst important to drive innovation, won’t cut it alone in a complex market environment. The best companies in the world value and invest in not just innovative/smart ideas but also qualified and experienced talent led by high performing leaders.
  2. Most leaders won’t have the courageous conversations needed. The number of senior leaders who simply won’t lead a tough conversation or confront poor behaviours (which are a pre-curser to poor performance) is staggering. Those who are action orientated, care deeply about their people and who will initiate a courageous conversation before it results in a big issue are rare and highly sought after. Most hide behind a complex process as a reason for not taking action. In reality they simply don’t have the courage to start what is a simple & effective process.
  3. Stop focussing on outputs and focus instead on the inputs that deliver them. Too many react to results after the fact and it is too late. Spend time creating clever predictive metrics that guarantee the results you are after and create a culture that consistently measures & executes them.
  4. Schedule, value & prioritise unstructured time. Most leaders are simply “busy & sadly that means reactive. They have no time to get ahead of the market and competition because they don’t prioritise the time needed for professional development, strategic thinking, reflection, banking lessons learnt, building strategic relationships or hanging out with clients understanding their needs. There are too many leaders who were the badge of “busyness” with pride and it creates mediocrity and reactive companies. Self discipline is needed to keep the important things ahead of the urgent.
  5. Invest in a future focussed Board that reflects the voice of your customer. Who on your board represents the voice of the purchaser of your products or services? Too many boards spend their time looking backwards instead of setting the culture of the business and driving the strategic agenda. To win in todays constantly changing & dynamic business environment the conversations of shareholders, directors and management must be separated, defined and deliberate. Get serious about it & have both a succession plan & professional development for your board.
  6. If you sword fight with Zoro you will get cut. As a leader there is always someone who thinks they have the solution or is hyper critical of a decision. In reality to lead at a high level you need to have confidence & clarity. Make the best decision you can with the best information available at the time and iterate it as needed. Leaders stand for something, they can take a punch and are resilient enough to carry on and win. It therefore stands to reason you will make a few mistakes, get things wrong, piss a few people off and attract the armchair critics. Accept this, reflect and commit to being always a better leader, stay true to your values & purpose and surround yourself with a wide network of coaches, mentors & peers who want to see you do well. Most importantly enjoy the ride because executive leadership is one of the most challenging & satisfying things you can do in the world. Most people can’t or won’t step up the the plate & thats fine……there have to be followers.

So overall 2019 has been a fantastic year. There have been the challenges of leadership and people that every business faces. Highs, lows and everything in between. Without a doubt the best things have involved family and friends growing and changing. Many of our clients have won national and international awards and their energy and thirst to get better and better has inspired me to keep learning and to get better at what I do professionally. As a professional leader it doesn’t really get much better than that & in the world we live in we require adaptability and agility to navigate the change we face over the coming years. Thank you for letting us play a small part in your leadership journey…….I really value it.

That said it is time to have a break, to disconnect, to have a beer (or 3) and to recharge over the summer break. Hows 2019 been for you? What valuable leadership lessons have you learnt?

IMG_6295
It’s beer oclock

Posted on

What I Learnt at Google

In early September in my role as Chairman of tech company Link Engine Management Ltd, the CEO & I went to the USA as part of the New Zealand Trade & Enterprise Better By Design Service. We are a company that works closely with and highly values the business advice, market support and development funding opportunities provided by NZTE as we expand across the USA.

9855b207-8be8-4152-b636-03fa562df19c

The Purpose of the trip was to immerse ourselves in some of the best companies in the world that have been client centric in their design thinking since start up. Along with 15 or so other prominent NZ export businesses we visited 15 different companies in both Manhatten, New York & in San Franciso. Companies such as Apple, Facebook, Air BnB, Chabani, WW (formerly Weight Watchers), Sidewalk Labs & AllBirds. I say total immersion because it was like drinking out of a fire hydrant in terms of what we learnt and reflected on. We had unprecedented access to C-suite executives ranging from CEO’s, Founders, Chief Development Officers etc. Weeks later I am still distilling the many things I learnt as a Chairman, Strategy Consultant, Leadership Coach and Business owner.

Google stood out due to its prominence as a brand, size & scale. With annual revenues of $137Bn USD, over 100,000 employees globally working across 9 products (each with over 1 Billion users) it can take some time to get your head around.

Here is what I learnt from Google;

  • Don’t screw up the culture: Culture is key and it drives every aspect of life at Google. Like most of these companies we visited, the war for real talent is very real & like Google most are feeding their staff 3 meals a day and making life easy to do great things. Behaviours, teams, leadership & soft skills are prominent and highly valued. In fact if you work against the team you will be fired no matter how brilliant you are. Work hours are 9 – 5 and working long hours (or weekends) are actively discouraged & this behaviour is modelled by senior leaders.
  • Hire slow, fire fast: Google undertake 8 interviews in the recruitment process over a number of months followed by 4 months of induction. It is hard to get in and if over 2 quarters you don’t perform staff are exited (after coaching, mentoring and clarity around KPI’s).
  • Cultural add: Whilst cultural fit is important more, front of mind at the hire stage is the Cultural add. What will you add to our culture. This is where they actively find diversity and give mandate for new employees to add and enhance the culture and teams they join.
  • Unstructured time: 20% of all employees time is unstructured and they are expected to work on projects within the company they are passionate about. Projects that solve company problems or move Google forward.
  • KPI Clarity: KPIs range from hard numbers to softer KPIs such as failures. Failure is encouraged if employees learn the lesson & teach others in the company the valuable lessons. The expectation is the lesson is not learnt again. They don’t focus on the outputs in terms of their KPI’s, they focus on the inputs that guarantee the outcomes they seek. Feedback is constant and 360 via platforms that allow your team, your peers, your bosses to give live 360 feedback. This is the same from the CEO down.
  • Be the Best at What you do: Like many of these companies Google expect you to be the best at what you do. If you are in the technical stream they expect you to be at the top of your game & getting better. If you are leading teams they expect you to be the best leader. A key point here is you don’t have to lead people to advance (role & remuneration) if you are a technical expert. Consider that in most NZ businesses where the only way to advance your career is to lead bigger teams!
  • Client centric: The work spaces are designed for learning, to stimulate innovative thinking, to break down silos and status quo thinking. The client is at the centre of all the products & services they develop. 9 products each with over 1 billion users. By having break out areas and fantastic working environments there will be a minimum 9% lift in productivity & very high engagement.
  • High levels of trust and autonomy: Employees are expected to perform, trusted to IMG_1392do what is needed, can buy the equipment they need and travel, accommodate etc by choosing from a range of providers. Money they save the company in expenses are shared 50% with the employee so there is incentive to be smart.
  • Fail fast: New projects are well led and it takes strong leadership to fail fast, to decide to stop a project.
  • Get Serious: Most New Zealand businesses with the aspiration to grow globally need to get serious. Invest in competent, forward thinking & qualified directors that will challenge the status quo & most importantly support the CEO & management team to upskill & excel. A client centric intentional Culture enabling seriously talented & experienced people to do great things will ensure companies iterate & adapt. They need to invest in the advice, skills & technology that allow them to scale. Most importantly defining true purpose & a long term compelling vision is as critical as telling the story.

Many of these things challenge the way we think and certainly to the level they could be done. In my discussions many NZ business leaders are dismissive of Google given its size & scale ie it is easy to do this when you are a huge company. I make the point that Google started with a clear vision & purpose in 1997 and is only 22 years old.

Where will your company be in 10 years if you start focussing & executing on some of these important things & get really serious about attracting and leading top talent?

The investment by our company in this experience was significant but the networking and relationships formed with a really talented cohort & the business leaders we met provided a massive return on investment. This combined with the ideas we have decided to execute and the input from a very talented NZTE host & design thinking team will allow us to continue to navigate our future growth aspirations.

Thank you NZTE.

Posted on

Leadership Lessons form 200 CEO’s: 2018/19

Annually since 2013 I have surveyed over 200 CEO’s across the USA, Australia and New Zealand to seek feedback on two key questions relating to what they have learnt and what challenges they feel they face over the coming 12 months. This creates a huge amount of information which takes some time to distil down to the key patterns that show up across all the replies. It is also a very interesting document to read because these busy business leaders have taken the time to reflect and answer the questions.

cropped-img_7398.jpg

The trend over the last five years has been leading in constant change, the challenge of developing teams who have the resilience to thrive in uncertainty (created by constant change) and who can still achieve growth and a solid bottom line profit. There is much more awareness of the importance of a good culture of engagement and the need for governance, mentors and coaches to stay ahead of the crowd (competitors). I do note that the CEO’s surveyed tend to be those leading high performance companies that perform year on year despite market conditions and competitor moves so they are adaptable and already good at execution.

Question 1: What are the three biggest leadership lessons you have learnt in 2018?

  1. Culture & people have the biggest impact. Their skills, behaviours, diversity, ideas. The ability of our team/s to work together and to keep the clients at the centre of what we do in terms of high value products and services. No one can steal your culture.
  2. There is a need to move fast, make clear decisions & Execute. Know your numbers, focus, iterate the plan based on a good review process but stay the course to achieve success. Its less about the smartest ideas/plans and more about making important things happen i.e. executing.
  3. Trust yourself and your professional judgement. Back yourself to know the industry from your years of experience but be open to new ideas and ways. Make the big decisions, sleep on them, seek the best advice from those you trust & don’t over think it. But make good clear decisions, tell people why and then focus on making it happen.

Question 2: What are the three biggest challenges you will face as a leader in 2019?

  1. Finding the right people to allow the company to scale for growth. Recruiting, inducting, training and then being able to lead them well and retain the top people. It is tough to find the people with experience you need in many industries.
  2. Hitting growth targets in a tougher economy/market environment. There is a lot of change and uncertainty and in many markets there is more competition. Economic outlooks over the next 12 months are for a tighter market. The challenge of continuing to grow is very real.
  3. Taking time out to recharge. Finding time to rest, learn, study and have a good life balance when things move so quickly. There is more pressure to work longer hours and more days a week. The smartest leaders know it is a marathon and not a sprint so being balanced is needed to stay focussed, fresh and at the top of the game.

You can see the results of the 2017/18 survey here.

You can look back over a summary of the last five surveys here.

The lessons I personally learnt as a leader in 2018

I thank all those CEO’s who took the time to reflect and provide feedback.

%d bloggers like this: