The summer holidays are coming to an end soon, so the time is coming to warm up for a new board season. On the back of the Corona, many talk about "new normal". After the stranglehold of the restrictions, the hardest-hit industries have not yet found their feet - so it is probably too early to say with certainty what the future will bring and what ...

How does the owner-manager get the best out of his professional board?  Thorough, open and honest alignment of expectations creates the most value. The maximal benefit of a professional board stands and falls with the owner manager's willingness to let go of control, and the ability to set the right board team - both in terms of industry exper...

Corona crisis management has most certainly put your leadership to the test. Particularly in times of crisis, leaders can indulge in acting more as a manager, even though the balance between management and leadership can create faster change and more value.

So why not use the Corona situation to reflect on your own balance between your manager and leadership tasks? Maybe you need to adjust your approach right now, where you both must manage the crisis and lead the business towards a "new normal" on the other side of the crisis.

Inspiring leaders create more value

Good leadership is an untapped potential. An example of leadership research below shows that only 25% of managers are good leaders, half are “only managers” and 25% are bad supervisors. Two other studies reveal the challenge of leaders' mistaken self-perception of being inspirational. Thus, 77% of managers find themselves inspiring, while 82% of employees find their managers uninspiring. Recognizing that inspirational leadership correlates positively with commitment (+ 32%), satisfaction (+ 46%) and performance (+ 16%), then there will be reason to believe that better leadership can drive faster change, so your business gets ready to create value when the Corona dust settles.

Figure 1: Good leadership is an untapped potential

Of course, customers and competitors play a major role when you want to move forward with your business, but the balance between the good plan and the ability to execute is crucial, in other words the balance between management and leadership.

Many works on mapping and developing leaders' skills to ensure progress, but this is not enough in all cases. Have you tried to also map leaders' attitudes and work on developing them? My experience is that you can progress faster and further by combining the mapping of both skills and attitudes because it provides the basis for development or substitution for the common good.

A little inspiration for how it can be approached.

First, create a profile for each of your leaders on skills or attitudes respectively

The employees create value through the customers, but skilled owner-managers nevertheless find it difficult to get the good plans to actually take place. They are often buried in daily hands-on chores. Here, an active and professional board with wide leadership experience can provide a competency allowance for redemption of employees' full potential - even at reasonable prices. 

Do you want to make sure “Dreams & Details” doesn’t keep you dreaming? Earn the Right to Attack!

"Dreams & Details" is now available in English – a leadership book by Jim Snabe and Mikael Trolle sharing their view on value-creating leadership in a digital and exponential business world. A remarkable and highly inspiring book, easy to access because it creates a highly topical leadership context, spiced with cases and their own experiences from the world of businesses and sports. A wonderful "kick in the pants" to those who have not yet dared to disrupt themselves - on time. And valuable inspiration for those who dare, but have not yet found the leadership formula, which can make things happen.

The authors’ aim is not only to provide advice, but also to facilitate a thought leadership debate among professional networks. For me, the book ignited many reflections and encouraged me to share them – which I based on a chat with Jim Snabe will sum up as "Earn the Right to Attack"!

Private equity governance has for years set the route for management professionalization with industrial advisors on their board teams. As any other business, they however also from time to time experience that even the best plans fail due to lack of execution skills for which leadership is key. Thus, a leadership advisor approach may be maturing as a supplement to their classical industry advisor approach – what do you think?

Clear trend on board professionalization and competent teams

Private equity funds have long been at the forefront when it comes to professionalization and composition of board teams based on business challenges and competence needs, rather than classical networking relationships. With a typical exit horizon of 4-7 years and clear ambitions to maximize value creation during the ownership period, it has been natural to introduce new management paradigms from top to bottom of the management systems.

Creating leadership value can happen by luck, coincidence or great performance of course. However, only few of us are born leaders, so why not structure your analytical approach to leadership, as you do with other assets on the company’s balance sheet. Personally, I fell in love with Dave Ulrich’s Leadership Capital Index (Berrett-Koehler Publishers, Inc. 2015), which could be one way to assess the value of your current leadership and identify improvement targets inspired by the research based drivers.

Great leadership is an untapped potential. According to at least some research below, only 25% of leaders are good leaders, half of them are “only managers”, and 25% are “bad supervisors”. Two other pieces of research reveal the challenge of leaders’ misperception of being inspirational. Thus, 77% of leaders find themselves inspiring, whereas 82% of employees find their leaders uninspiring. Acknowledging that inspiring leadership correlate positively with employee commitment (+32%), satisfaction (+46%) and performance (+16%), it could be fair to believe that better leadership would create more business value.

My own leadership experience tells me that management is about “What” and leadership about “How” - and that the ability to strike the right balance between the two is key to accelerate change and deliver top results. Thus, I am happy that the authors of the well-known book Blue Ocean Strategy, W. Chan Kim and Renée Mauborgne, have now also released the more dynamic Blue Ocean Shift – focusing on the transformational process of “how” to actually make it happen. 

It’s an updated repetition of the blue ocean strategy elements wrapped in appreciated research on how some of the best companies have managed to succeed. I can only recommend that you read the full book your-self, but let me share a couple of appetizers spiced with my own reflections.

Recently I read and can recommend the management book ”Digitaliseringens paradokser” by Søren Schultz Hansen og Jan Horsager (The Paradoxes of Digitization – so far only available in Danish). It is an easy read with a broad spread of twelve case studies on digital transformations – both well-known and less known cases within manufacturing and service, the private and public sector, small and large businesses. Based on these, the authors have defined five paradoxes and their impact on three main areas and summarize it all in ten good advice, which they have named the “Manifesto of Paradoxes”.

The paradoxical is related to the apparent contradictions between the analogue world and the digital world, which however "analogue" leaders from time to time ignore or deliberately ignore because it is beyond the comfort zone.

You probably won’t agree with it all, and some of it may even be dangerous to apply in the wrong place or at the wrong time – but it helps turning everything upside down and reflect on your own challenges of digitization. You may at least agree on one thing – that we all, sooner og later are faced with the paradoxes of digitization, and if not, it may unfortunately be too late.

Results are created by the teams we lead, but many managers experience that it can be hard to make the great plans actually happen. As a corporate leader myself, I have experienced how you can be trapped in the treadmill of KPI-management and new plans, when the first plan hasn’t shown the expected results – thus, why I could not find adequate time to perform my leadership role. Whilst owner-managers typically aren’t burdened by corporate treadmills, they are up to their eyes in daily hands-on tasks and firefighting. In both cases an active board could play a decisive role in unfolding involving and value-adding leadership.

Looking at the best quotes I ever came across within Management and Leadership, it is no wonder why the puzzling word “why” is so important.

Despite the fact that results are created by the teams we lead, it seems that we are all too focused on Management. A Google search provides 2.7 billion hits on Management, 565 million hits on Leadership, which is close to Physics and Mathematics. This means that Management hits are 5 times more than Leadership, which only counts 17% of all hits on Management and Leadership.

No wonder that we as leaders often are challenged striking the right balance between Management and Leadership, i.e. to lead more and execute plans efficiently.

Leadership is about creating value through others. Management brings you plans, which however often only tells “what” is to be done, and not “how”. This is where your leadership shall fertilize your management – just like the composer and the conductor, where the conductor ensures the beautiful sound through perfect execution.

Opt-ins call for opt-outs - something to think about during your summer holidays

Wow, we are really flooded with new threats and opportunities that all must take a place on our busy agenda. Here's just a "small" sample of buzzwords in a sinful mix of abbreviations, which both leaders and employees need to address in a hectic everyday work life:

Generally

VUCA (Volatility, Uncertainty, Complexity and Ambiguity), Disruption, Exponential Business Models, GDPR (General Data Protection Regulation), LCI (Leadership Capital Index), CSR (Corporate Social Responsibility) and Stakeholder Management.

Back in February, I wrote a post about Dave Ulrich’s book “The Leadership Capital Index - Realizing the Market Value of Leadership”. You can read the post here: Finally, you can measure the value of good leaders. I simply had to share my excitement about this outstanding book on value-adding leadership.

In times of global competition, disruption of business models and unpredictability, strong leadership really makes the difference. A detailed understanding of what drives leadership value becomes increasingly important for investors, as well as boards and executive management, who is accountable for the value of the company.

Thus, I am convinced that The Leadership Capital Index is a valuable and indispensable tool for investors, board of directors and executives, as well as HR professionals to only mention a few. 

The Danish edition is soon available

By September 2016 the book will be released in Danish by Gitte Mandrup Publishing.

I simply have to share my excitement about a book on value-adding leadership, which I have just read. Now we can finally measure good leadership. Many have for years claimed that good leadership makes a significant impact on companies’ value creation. Dave Ulrich has with his book “The Leadership Capital Index” developed an operational method to measure the value of the leadership it-self. A book, which does not only give rise to reflections, but also actively can improve your leadership.

For years I have myself practiced and advised on the balance between the “what:s” of Management and the “how:s” of Leadership. Because, too many managers lack the experience or time to be a good manager and leader at the same time. Although I can document strong business results over time, I have always missed the intermediate value of the leadership it-self, which makes it much easier to repeat success.

It is now 1 year ago I launched Leadmore ®. Through the year I have supported clients creating progress and performance improvements within the 5 main services areas:

• Value-adding leadership
• Strategy and business models
• Mentor support and coaching
• Strategic B2B sales
• Board work

The experience base has been increased and can benefit others. External inspiration and sparring is often the strongest driver of change and value growth.

Successful launch of Leadmore ®

First of all thanks for the many greetings and good feedback on my launch of Leadmore ® back in November. Many have visited the site and the feedback clearly indicates that I have hit a market gap on practical and experienced based executive advise. The common denominators are in particular practical strategy facilitation, value-adding leadership, mentoring- and coaching support.

Many chases methods to create more value

Through my customer contacts I experience a great need to get the best out of employees and ensure that everybody's management time is spent optimally. Many are aware that success is not only a result of being a skillful manager, but also a skillful leader, who can strike the right balance between management and leadership efforts. 

Middelboe Consulting became Leadmore® 11.11.2011

Middelboe Consulting has since 2009 successfully advised many clients within value-adding leadership. It has grown into a business that called for a homepage and new expressive company name.