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TOP TEN LEADERSHIP BLIND SPOTS THE EXECUTIVE WHITE PAPER SERIES | 2012 PRESENTED BY|

TEN LEADERSHIP B SPOTS - S3 Ventures global retained executive search firm, ... basis for consulting on the leadership capability and ... These people came from an

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TOP TEN

LEADERSHIP

BLIND SPOTS

THE EXECUTIVE WHITE PAPER SERIES | 2012

PRESENTED BY|

PAGE .TOP TEN LEADERSHIP BLIND SPOTS |

THE EXECUTIVE WHITE PAPER SERIES | 2012

PAGE .TOP TEN LEADERSHIP BLIND SPOTS |

THE EXECUTIVE WHITE PAPER SERIES | 2012

ALLEN SOCKWELL

SOCKWELL PERFORMANCE ADVISORS |BRAD WESTVELD

ON SEARCH PARTNERS |

As co-founder and partner at ON Search Partners, aleading global retained executive search firm, BradWestveld specializes in the recruitment of C-levelopportunities for public and emerging technologycompanies. He maintains a specific focus on theElectronics, Systems, Semiconductor and Cleantechmarketplaces, actively working within industry hubsacross the world. He is widely recognized for hisinteractive and engaged approach, assisting clients innavigating a search process that is dynamic, complex,and real time.

Brad has over 13 years of experience placing the topexecutive and board positions in major cleantech andtechnology companies. His consultative approach withventure capital and private equity backed portfoliocompanies, as well as his relationships with thevisionary leaders in public companies such as AMD,LSI, and Silicon Labs, have afforded him a uniqueinsight into the challenges and influences talent hasupon the performance of an organization and howchoosing the right talent at the right time candramatically propel the success of a company intoday’s economy.

Allen R. Sockwell, President of SockwellPerformance Advisors, has advised boards and seniorexecutives in public and private companies, throughgrowth and restructuring, across industries and majorglobal markets. His understanding of client strategy,business objectives and operating plans serves as thebasis for consulting on the leadership capability andhuman capital required for enterprise success.

Allen has over 30 years of experience as an advisorand business partner to executive management, mostrecently as Senior Vice President and Chief TalentOfficer at Advanced Micro Devices [NYSE:AMD].Recently, he has founded his own enterpriseperformance consulting firm. Sockwell PerformanceAdvisors specializes in enhancing enterprise value andprofitability through improved leadership and effectivemanagement. He currently serves on the board of 3early stage companies and consults with CEOs andsenior executives across multiple industries.

ABOUT THE AUTHORS |

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In 2007, Allen Sockwell and Brad Westveld began a professional relationship that expanded into a mutual friendship overthe course of multiple search projects on behalf of AMD. It is through these shared experiences, not to mention a combinedexpertise of over 40 years consulting on organization development practices, that the two professionals have developed anuncommon viewpoint into the key elements of excellent and, in consequence, poor management approaches. Their collectiveinsights into the raw materials of management success are presented here.

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PAGE .TOP TEN LEADERSHIP BLIND SPOTS |

THE EXECUTIVE WHITE PAPER SERIES | 2012

Over the last 30 years I have coached leaders atevery level, across many companies, and in almostevery part of the world. These people came from anincredibly diverse set of backgrounds, performed rolesacross all company functions and had a large variety ofstyles and worldviews.

Over time an interesting pattern began to emerge.Independent of culture, industry, company, orindividual, the issues that leaders faced were the same.More importantly these leaders seemed to strugglewith clearly identifying these areas of weakness or risk.I began to gather these common issues into a set ofcoaching principles I could use to discuss keymanagement challenges during my individual coachingsessions or in management training courses that Itaught. That outline became the basis of this list of the10 areas that create significant risk to both personaland organizational success.

I think of them as Blind Spots, those unseen thingsthat create danger that we don’t react to until too late.In this paper, I hope to expose some of these areas of riskto help leaders question how they lead theirorganizations.

If you think these don’t apply to you, I wouldsuggest you think again. By definition, we are unawareof these Blind Spot issues in our organizations. I can’tthink of one leader, of one team, that hasn’t had some ofthese issues degrading performance to some degree. Idoubt that your team will be the first.

ALLEN SOCKWELL |BRAD WESTVELD |

In an attempt to maintain distinction between speakers without disrupting the readers’ experience, comments by the twoauthors are separated via the color blocking used here throughout the article.

After over 13 years of finding outstanding peoplefor companies that want to stay on the sharpest edgeof America’s technology revolution, it is obvious tome that the difference between a good leader and agreat one comes down to an ability to createopportunities and the skill to manage people in orderto take advantage of them. It is a thin sliver ofdifference in actuality when you consider that it onlytakes small changes in the behavior or viewpoint of amanager to create amazing changes in a team’sperformance.

The 10 Blind Spots that Allen has outlined are atthe very foundation of attitudes and actions thatsuperb leaders practice every day. No matter yourindustry, the size of your company, or where you fallwithin in the hierarchy in it, excelling at never beingblind to these issues will clearly make the differencebetween average and great in your career.

INTRODUCTION |

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LEADERSHIP BLIND SPOT #1: Under-communicating strategic direction and priorities

Under-communicating strategic direction andpriorities is one of the most common mistakes I haveseen leaders make. Executives typically have a set oftop priorities or organizational goals they have definedand communicated. Usually, this communication takesthe form of a PowerPoint presentation that is shared inexecutive staff meetings; then again in some form ofemployee communication process…an all-employeeemail or company-wide meetings. Some leaders evenremind their organizations of these goals in quarterlycommunication meetings. But in our world of hyper-information availability and constant communication,this is not enough to maintain the focus needed toensure success.

Competing inputs drastically dilute the focusleaders are trying to create. Think about the world welive in today. We are constantly bombarded with email,text messages, Tweets, web-based news, andinformation. Boards, customers, employees and otherkey stakeholders thrust new projects and pressingrequirements on us…and these are just the distractionsin the workplace. Add to this our lives and prioritiesoutside of work. The impact of all of these is that ourtop priorities actually achieve very little mind-shareagainst this other clutter.

Priorities are never as clear as we think!

The most effective leaders recognize this mind-shareissue and have decided to dramatically increase theirmessage volume and frequency to overcome the clutter.Think of this as an advertising campaign just like anyother in your business. A clear and compelling message

is a good start, but insufficient. Next, you must definethe channels and the frequency required for themessage to be understood in order to have the impactyou desire.

The way some effective leaders address this is bystarting almost every discussion with a reminder ofthese top priorities. Every one-on-one, every staffmeeting, every operating review, every employeemeeting….you get the point. They say, “Remember ourtop 5 priorities are…… Now let’s talk about our agendatoday in light of those key areas of focus.” And it works.You really have to hammer this home way beyondwhat feels necessary.

Priorities are never as clear as we think!

Cutting through the clutter is very difficult. But,allowing a continuous dilution of focus on your topgoals will lead to continually degrading organizationalperformance.

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LEADERSHIP BLIND SPOT #2: Poorly communicating expectations

Another common blind spot is poorly definedsuccess measures. Vague expectations are dangerous!Communicating top priorities creates the basis forareas of focus for an organization, team or individual.However, without clear definitions of success,management and employees can be aiming for verydifferent levels of performance. This creates significantrisk in execution to committed operating plans andstrategic projects.

In addition, there is nothing that sucks energy out ofa team or individual more than thinking they have metor exceeded key objectives only to be told that theexpectations were much different. It is a bit like playinga game thinking you understand the rules, only to havesomeone explain at the end that winning is defineddifferently than you expect. That crushes a team.

Specific targets and timeframes clarify whatachievement levels are expected. Leaders need to bevery precise in defining how they are going to measuresuccess. What indicators are going to be used? Whatweight will be put on different measures? And what arethe specific target levels for each of those measures thatare expected? (A personal career note to leaders: Neverlet others define what success looks like for you at theend of the game. Define it VERY clearly at the beginning,then all that is left is keeping score).

Highly visionary leaders struggle with this morethan most. They tend to be heavy on pitching big ideas,but very light on communicating priority and specificexpectations. The way I suggest dealing with this is byhaving the visionary leader and the catcher of thevisioning walk through the following process:

1. Start with the big idea…what is the key conceptAND how does it relate to the key strategic priorities ofthe organization.

2. Solidify and communicate 4-6 key definingprinciples, which provide further insight into the keyelements or concepts the leader has in mind (but oftendoesn’t explicitly communicate).

3. Have the vision catcher shape the goal/project.Develop explicit measures and targets that definesuccess.

4. To prevent drift from the vision, managers needto establish a Short Feedback Loop Review, frequentlyrechecking the trajectory of projects and functionsagainst the original direction. Only a few days of workshould pass before a quick review to check foralignment, through to the acheivement of the goal.This allows corrections to be driven in time to savetime and money, gain improvement, and ensure properproject execution.

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Managing under-performance is a critical skill forall organizational leaders. But, dealing effectively withlow performers can be a difficult and time-consumingtask. Too often, low performance goes unaddressed,leading to loss of management credibility and lowerunit performance.

Leaders often hope performance improves. Hope isnot a strategy. It is often denial disguised. Sometimesleaders simply don’t see the performance issues. Moreoften, they spot low performance based on missing key

LEADERSHIP BLIND SPOT #3: Waiting for poor performance to improve — Hope is not a strategy

Ultimately when you consider Blind Spots #1, #2and # 3…at a macro-level…it’s what makes aleader!

Like it or not…when it comes time to do anexecutive search (and usually I am called to look forthe replacement of someone not performing), themanager ‘hoping’ things will get better, is often theone getting replaced. From a performanceviewpoint, Blind Spots #1, #2 and #3 tie into whatdefines an effective manager of people. ..the reasonwhy an executive is hired, and ultimately fired.Size, scope, and visibility may change in individualmanagement roles, but the failure to set a strategy,prioritize, and then communicate a visionthroughout the organization are classic downfalls.The last nail in the coffin is then lack of decisiveness…and hoping things will magically get better.

On a positive note, the leader who does in factrecognize and address these Blinds Spots will oftensee their organization emulate their actions. Whenthis strategy is copied even 1 and 2 levels down, theresults can be very powerful and have a directcorrelation to the company’s bottom-line.

Does the employee understand what is expected?

Is this something the employee has the capacity to do?

Are they passionate about the work?

Ensure there are clear goals and expectations outlined.

If not, then how big is the gap and how much time and effort to fix?Can you afford the time and effort to close the gap?

People gravitate to the work that they enjoy. Sustained success won’thappen if the employee isn’t passionate about the tasks being performed.

Be wary here of attempting to change someone’s natural inclination. Get people in the right roles.

Is the environment a fit for this employee?

You must evaluate if the employee can perform to expectationswith the resources, support and environment that exist

or that you can reasonably create.

milestones, low project quality, or ineffective peoplemanagement. Often they are perplexed about what theroot performance issues are and how to address them.This confusion turns into inaction, allowing theunderperformance and resulting operational impacts tocontinue.

I coach leaders to use the diagnostic frameworkbelow to understand root causes of poor performance.Once these questions are answered, then targetedaction can be taken.

These situations almost always get worse if leftalone. They never get better on their own. Understand-ing the real issues and taking action quickly leads tofaster improvement and reduces the risk of unrecover-able failure for your team members and yourself.

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LEADERSHIP BLIND SPOT #4: Buying into the myth of the “Irreplaceable Employee”

NO ONE is irreplaceable. I would argue that in most cases, the“irreplaceable employee” is the most replaceable.Over the years as a search firm, we are often theones asked to come behind and actually replace the socalled “irreplaceable” icon. In the wake of this, whatwe mostly find can be amazing...a sense of relief andeerie calm inside the organization...almost ayearning for a fresh start.

Most of the time the behaviors described byAllen have included built up walls, poormanagement skills and training, and an inability foranyone in the organization to delegate, or takeaction, or feel any sense of empowerment. Once gone,almost instant healing begins. Our message is don’tbe afraid to make this change….we have seenorganizations bounce back quickly and ultimatelythrive in the very near-term.

You can address this problem two ways. One wayis by never letting one person become that critical inthe first place. Single points of failure create too muchrisk. Build breadth and depth around these people. Doit before you think you need to. The second way ismore typical. We adjust role and structures, and gosearching for a replacement. It’s a very reactivesolution to a problem we can address in advance.

I have never met the irreplaceable employee. I neverwill. In my career, I have worked with some incrediblebusiness people, outstanding leaders and innovativeengineers. None of them was irreplaceable. Some ofthem did leave. However, organizations have an almostinfinite capacity to adapt to the loss of a single person.

I worked with a company who tolerated a terriblemanager and team player. The employee was the keyaccount executive for an important client and theymade the numbers. Thus, the employee was believed tobe irreplaceable by a number of senior executives.Their destructive behavior was tolerated for a longtime.

The warning signs … low team morale, high teamturnover (including a new executive assistant everyyear), disparagement of upper management, and a tonein every communication that said “everyone else isstupid, but me”… were visible, but tolerated. Why?Because management believed that they could notreplace the production this person delivered. Theythought this person had unique skills and relationshipsand tolerated the behavior as a price for getting results.

As a result, they chose to ignore the negativeimpacts created by this destructive person. For somereason, those behaviors are often seen as a reasonableprice to pay to get results, but the drain on otherorganizations and individuals is always far greaterthan what management appreciates.

Finally, management addressed the situation. Notsurpisingly, the company survived the loss of this“irreplaceable” employee and was better off when thisperson was gone.

NO ONE is irreplaceable.

In other situtations, a uniquely skilled and valuableemployee stands out on a team. They play a critical rolein product design, marketing, sales, or other keyfunctions. Management values this contributiontremendously. They are invaluable...and then they aregone. The company flounders, unprepared for the loss.

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LEADERSHIP BLIND SPOT #5:

I believe people can change and learn new skills. My consulting practice helps executives gain new perspectives andtools to lead people and organizations. That being said, many leaders invest too much time trying to coach radicalchanges in behavior.

People behave the way they do for a good reason. Their behavior makessense to them based on the way they think and see the world. Mid-careerprofessionals with a track record of success have an ingrained way thatthey think about their role, how organizations work, and what leads tosuccess. If that doesn’t mesh with your organization’s style, culture orwith your needs as a manager, there is only so much you can do to create asustainable change in their fundamental behavior.

You can apply pressure to create a change in the short term, but once the pressure is gone, most people will snapback to the way they’re used to interacting with the world. They have to revert, simply because it doesn’t make sense tothem to behave any differently. Coaching for new perspective or new skills is much more successful. While dramaticbehavioral change is uncommon, learning how to apply new tools can be accelerated with good executive coaching.

We owe our employees honest feedback and good coaching. As pointed out in the model in Blind Spot #2, we need toensure our expectations have been clearly communicated. But I have seen this situation so many times. Leaders investtime and effort to try to dramatically change behavior when someone is just a bad fit for the role or organization. Italways has the same ending. Failure to meet expectations and employee dissatisfaction is always the result. It is just amatter of how long leaders choose to allow employees to fail and how long they will try to do the impossible.

define the time and energy an investment in change willtake, and how long it will realistically take the currentteam to buy into a new vision.

I would argue that if you honestly ask an executivewhen they knew “it wasn’t working” with an element ofa team they inherited…they would say in the very first1-on-1 or within weeks at most. Yet common organ-ization development textbooks tell us new executivesshouldn’t “blow up” a team or to watch and listen for 6-12 months before enacting real change. This is nonsense.I have seen far too many executive ignore theirgut…and, in turn, waste valuable time when they couldbe building a team truly capable of making a 90° turn.

Most of the time, organizations ask search firms likeours to be part of their radical change efforts. Over theyears, I find this usually falls into 2 functional executivesearches - CEO or VP of Worldwide Sales. These twofunctional roles, and their direct reports, historically aremost often targeted to drive radical transformation.

I agree with Allen’s assessment that 5°-10° change ispossible, and worth attempting...anything further isfraught with risk. You must consider not only the needfor change necessary in a single position, but also thatthere will be change or adaptation necessary within theimmediate group, or even an entire functional vertical,affected by the position in question. It is key to clearly

Investing too much time trying to coach radical change

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LEADERSHIP BLIND SPOT #6: Hiring for capability and nothing else

A successful candidate for a role must have thecapabilities, the necessary skills, to perform thetargeted work. We have gotten fairly good at assessingthis through evaluating work history, conductinginterviews, and qualifying references. While capabilityis important, it is insufficient for success. I have seenmany people who have theskills and experience toperform a role, but failto do so successfully.Why? They often lackthe other two criticalelements — Passionand Fit.

There are many tasks that I can perform well, but Idon’t want to do them. A job with too high a mix ofthese undesired tasks will not be one performed well.Doing this work does not fuel the motivation thatcreates sustained high performance. I need to do workthat I am good at AND that I am passionate about.

Fit is the final element required for sustained highlevels of performance and employee satisfaction. Asuccessful employee can work within the framework ofhow decisions are made, with the resources and toolsavailable, and in a manner consistent with thepersonality of the organization. All environments aredifferent and what is required for success can varygreatly from one company to another. Just becausesomeone was successful in their prior company doesn’tmean they will be in yours.

A good hire has the required capability, passion forthe work, and is a good fit for an organization. Theintersection of these three elements is the source oflong-term employee satisfaction.

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Over the years, I have come to believe that the‘self-awareness’ of a potential candidate is one ofthe most elegant and dependable ways of lookinginto Fit and Passion. I believe the best candidatesinherently understand their own strengths andweaknesses. They know what they can handle, theyknow and recognize where they struggle…and,oddly enough, they embrace it…and aren’t afraid ofacknowledging it.

These types of ‘self-awareness’ discussions arealways deeper, more open, and give the interviewerinsights into how and why the candidate makeshis/her decisions. In the end, you can start to makesome assumptions. Does the way the candidatethinks fit your cultural modis operandi?

When asking the questions in the sidebar onCapability, Fit and Passion, look for thoughtfulnessin a candidate’s answer and a reflective nature. Isthe individual aware of what subordinates/peers/management think of them? Not their ownperceptions, but others’. What is on a resume(Capabilities) is one thing, but the ability to assesshow one has grown, how they have challengedthemselves, or understanding their ability toexpand skills even further equally important.

I challenge you on your next interview - digdeeper! Have another level of conversation withyour candidate.

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Don’t tell an applicant what you are looking for or they willshape their answers to please you. Don’t let them tell you whatthey would do... you want to hear what they’ve done.

Listed here some questions to use in the interview process toget at these qualities in a candidate. Compare what you gatherfrom the interview with what you receive in both candidateprovided references and any independent sources you can find.

C - Capability

~ What have others told you that you do best?What are your key capabilities?

~ What were the key measures of success in yourprevious positions? How did you performagainst the expectations that were set?

~ Can you give me 3 examples of work that youhave done that is similar. Press for specifics.

P - Passion

~ What work projects have you most enjoyed?Give me 3 examples.

~ What parts of your past work have energizedyou? Why?

~ What work projects have you least enjoyed?Why?

~ Describe a time when you didn’t give up on anidea or position despite opposition from others.

LEADERSHIP BLIND SPOT #6: Hiring for capability and nothing else, continued...

F - Cultural Fit

~ What work environments from your past haveyou enjoyed most? The least enjoyable?

~ What are you looking for in your coworkersand supervisors?

~ Describe the characteristics you want in yournew company?

~ Describe a time when your priorities didn’tmatch a more senior level manager’s. How didyou handle the situation?

~ Why did/are you leave/leaving your last/current position? - Listen for what didn’t work,probe hard here and get specifics.

How to Measure Capability, Passion & Fit in an Interview?

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LEADERSHIP BLIND SPOT #7: Accepting the current capabilities and limitations of your team

Leaders vastly underappreciate the opportunitythey have to increase performance capacity in theirorganizations. The current capabilities and limitationsof your team are just that. They are what exist today.But they are only limitations if you don’t choose to doanything to improve. I believe leaders should askthemselves this question everyday: “What have I donetoday to make my team better?” So many leaderssimply accept what they have with no plans to makethem better…everyday.

You can grow capacity in three ways: hire the rightnew talent, coach your existing talent, and/or improveteamwork and coordination.

Let’s apply this to how a coach approaches thecapabilities of a team. When a basketball coachconsiders developing the best team possible, he thinks“I can make the team better by getting more talentedplayers...or I can coach to improve the skills of theplayers I have.” Most coaches continually do both ofthese. Instead, many managers accept limitations andsimply accept what the team can and can’t do.

The coach can also improve team performance byensuring the players understand their individual roles,the game plan, and how they will work together.Working on how plays are executed and developing theteamwork of his players is a huge improvementopportunity. Think about America’s Olympicbasketball “Dream Teams.” Here were teamscomprised of the best players in the world, and yetthey were defeated by teams with nowhere near theirlevel of talent. Teamwork is a differentiator.

You can recruit new talent, coach what you have,and/or focus on improving execution through better

teamwork. The choice is yours. Accept what you haveor choose to build new capability each day.

A strategic executive search partner can be a criticalelement of this capacity improvement effort. Goodsearch partners develop deep understanding of aclient’s business, jobs and culture. They can be criticaladvisors assisting you in making sure you hire forCapability, Passion and Fit. Find a search partner thatwants to develop a long–term relationship and one thatseeks to drive success for your organization.

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There are definitely some key differencesbetween a search partner and a firm simply lookingto earn a fee. In strategic terms, a search is not amatter of just finding a person to hire, but filling aneed to locate and apply the right new set ofresources. To ensure your search partner is goingto invest in the success of your company, and spendthe time to explore what challenges you are lookingto address with a new hire, you should ask theseessential questions:

• Who is going to conduct the search at the firmand what is their total workload?

• Does the lead Partner personally conduct all ofthe candidate development?

• What is their experience helping resolvemultiple agendas?

• What is their personal network and ability todiscern leadership?

• What are the “blockage or hands-off” issuesthat mitigate attracting exceptional leaders?

• What is the commitment to “stay out” aftersearch completion?

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LEADERSHIP BLIND SPOT #8: Acting as the sole integrator of team goals and performance

I see this mistake made at every level of management, but it has the greatest negative impact on those at the top.This blind spot involves the manager acting as the sole integrator of the work across the organization. Everythingflows through one leader — every individual’s contribution, every project strategy, all data. It is all gathered in thecentral hub where the manager plays a singular role integrating outcomes across the functions. The leader becomesresponsible for many of the decisions or the sole initiator of all key actions.

This creates a chokepoint for getting things done,and limits an organization’s or company’s growthpotential. The larger and more complex theorganization, the less likely that one leader will havethe capacity to be effective, actively directing andintegrating the processes of all the spokes. Invariably,the process breaks down and productivity suffers.

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A better approach is one of shared accountability. The CEO or manager shares the company or division goals andresponsibilities across the next level down. Goals and rewards then spread the responsibility across the organization.The functional leaders drive excellence within their vertical, but are also responsible for how their part fits across theorganization and the performance of the whole piece.

To cross over your hub and spoke management process to the shared accountability model, create expectations anda system of accountability and review that rewards functionality across borders. This effort will pay off across thewhole organization, but most especially for the leader who is no longer singularly tied at the hub, but is able to focuson the whole and nimbly respond to any problems.

of equity and because of this closely guard decisions,data, or a free flow of communi-cation. Don’t get mewrong, there are fantastic examples of founders takingorganizations to greatness, but so many more end infailure for this very reason - being a sole integratorstymies performance.

If you are a board member of a large or small entity,help create and encourage an environment where theCEO embraces shared responsibility. Your biggest payoff will be a CEO that becomes more creative, embracesnew ideas, and finds more time to be strategic. Unlockthe growth potential in shared accountability.

It is notable that instances of leaders being the ‘soleintegrator’ are especially prevalent among foundingCEOs of smaller entrepreneurial organizations. Thetechnology marketplace, especially known for beingnimble and fast-paced, is filled with many early stageand seed funded companies that fit that bill.

Conventional wisdom would lead you to believe thata company ranging in size from 5-100 would have noissues in communicating or setting direction, but in factsome of the worst cases of Allen’s Blind Spot # 8 happenhere. These types of companies foster highly personalenvironments. Founders, who often own the IP, orthought of the original business plan, own a larger share

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LEADERSHIP BLIND SPOT #9: Believing all needed info flows up and down

Communication, as we know, works two ways, so Isuppose it makes sense that managers are blind aboutthe flaws in their organization’s communication bothup from the ranks and down from the c-suite.

No matter your level of management, never believethat you have all of the needed information andtherefore know the Truth. In actuality, you might havesomething that looks like the Truth. The more complexthe channels, the deeper the organizational levels, themore formal the culture – the more near to nothing likethe Truth you are.

This is particularly true if you are depending onlyon the information that comes to you via formalchannels. Information is shaped and filtered as ittravels through each level, becoming warped orincomplete. If you use this as a single source for theTruth about your company, you will make flaweddecisions.

To address this you need to institute communicationmechanisms that create a culture of transparency.Simply put, communicate in a variety of ways. Email,roundtables, skip level meetings, even just walkingaround can provide invaluable and, oftentimes, non-verbal information. This way you know whatinterpretations to believe that come through thehierarchy. Approach it with the mindset of “As aleader, I know what I heard might resemble the truth,but this needs context and I need to find another way tosense what is actually going on.”

Managers are often equally blind in their perceptionof how much of the information they arecommunicating down is actually heard andunderstood, again especially in a very hierarchicalstructure. The same structure that filters informationgoing up can inhibit information flowing down.Pointed feedback, good or bad, on projects can besoftened, warped or lost. To help ensure messagecommunication flow, create additional indirectmethods of contact between levels.

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LEADERSHIP BLIND SPOT #10: Going quiet in times of change and uncertainty

When stressed or in times of uncertainty, the keyleaders within a company tend to go quiet just whenthe people around and beneath them need to hear fromthem. Most people don’t like the idea of standing infront of folks and delivering bad news or incompletemessages. As a group, managers are trained to be thepeople that have the answers. They often fall intouncertain territory when they can’t tell a “complete”story of problem, cause, solution. However, it is exactlywhen there is uncertainty that leaders need to guide anorganization’s view – defining reality and risk. Ifleaders abdicate this role, organizations will fill thevoid, usually with the more tragic interpretation or anegative spin on the challenge facing the company.

Manage your organization’s collective understand-ing of a problem. Talk truth as you know it to be,explain what is known and what is unknown clearly,and be willing to say “I don’t know” or “I am going tohave to look into that further.” A true leader shares the

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brutal reality that the organization faces and potentialconsequences to both the company and individuals.Then, that leader creates a picture of hope about whatcan happen and how the organization can deal with itin a positive way. The key is a balanced message – notoveremphasizing the end of the world negativity, nordelivering only sunshine and roses.

In a difficult situation, people value having facts anda leader’s input to anchor their reactions to. Simplyput, do you let your company’s collective viewpoint ofa situation form organically through the rumor-mill?The rumor-mill never creates uplifting inspirationalmessages. Or, do you as the leader manage thatviewpoint proactively? To do so, you must engage youremployees even when the picture and therefore theanswers are not clear. When managers run and hidefrom the unknown, the organization staggers and spinsin an unpredictable way.

image by agreeing ahead of time what the company’sofficial stance is, what employees/vendors/customersneed to know about the process, and then being sure tocommunicate that in a timely effective manner. When Iam leading a search for a new CEO, I often warn clientsabout the collateral damage that can be done simply bynot handling the relationship with all the variations ofthe “public” well. We emphasize strategic planningaround the message that is given to stakeholders andconsumers, as well as the one given to potentialcandidates. It’s important to consider job seekers anaudience. After all, a top-level candidate may somedaywork for a future vendor, key customer or ally.

The simple key is to communicate… honestly,thoughtfully and often.

In the process of carrying out business, we oftentimesforget that the consumer is not the only audience watch-ing and evaluating us – as a company, a functionalgroup, and/or as an individual leader. Our stakeholdersalso include boards, employees and vendors. The mostsavvy and successful leaders are often those who areaware of how the flow of information can affect theirprofessional reputation and are able to proactivelymanage that. In today’s social media-focused society, abadly handled conversation can explode into a corporatecrisis.

Staying silent when change is looming or happeningis never a good thing and shooting from the hip is oftenno better. When a change of leadership is impending, itis important to keep control of the company’s public

PAGE .TOP TEN LEADERSHIP BLIND SPOTS |

THE EXECUTIVE WHITE PAPER SERIES | 2012

PAGE .TOP TEN LEADERSHIP BLIND SPOTS |

THE EXECUTIVE WHITE PAPER SERIES | 2012

CONCLUSION |

THE EXECUTIVE WHITE PAPER SERIES | 2012

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In my business, I focus on finding employees that are self-aware of their strengths and weaknesses. I wouldchallenge you to pursue this type of self-awareness, both as a manager and as a team member. There are manyresources outside of our microcosms that when tapped to evaluate and improve ourselves and our teams pay offexponentially long-term. Not only in terms of a better functioning, happier team/company, but also in real terms ofpositively impacting production, strategic relationships and the bottom line.

Be a hero for your company, find a knowledgeable resource who can assist you with turning a laser focus on justone of these Blind Spots and watch yourself go from good to GREAT as a leader!

These are all manageable issues. I have coached many managers successfully through each one of these challengingblind spots. Following the recommend-ations I’ve laid out will bring about significant and positive change. But thereality is, leaders often don’t see or have the experience or capacity to approach these often multi-faceted humanresource concerns.

Having someone take a fresh look at your organization and help shine a spotlight on these issues, can be worth theinvestment. Each one of these Blind Spots directly impacts your company’s productivity, financial performance, andemployee effectiveness.