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 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"!
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.
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.
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.
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.
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.
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.
In some cases, it is about issues that we for confidentially reasons cannot share with anyone. Or issues, that we to avoid losing face, are hesitant to expose our lack of knowledge about. Though, I guess that we all sometimes need to relinquish the reins, think high and wild, ask the dumb questions and get the right answers from someone who have tried it before, maybe in another industry, or who can help oneself to figure out the right answers.
It is not only about technology – simplify by putting customers first
It’s true that computing power, big data, telecom networks, mobility, artificial intelligence, robotics and 3D-print among others have expanded the possibilities and accelerated speed of disruption. Most are new entrants and others are to protect and develop their current business. Apparently, things seem much easier for new entrants starting from scratch, where as the “incumbents” often struggle as they get paralyzed and caught in a technology spider web, a catch enforced by fear of leaving their comfort zone.
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.
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.
The book’s 250 pages are easily read, but it does certainly not make it worse. It is at eye level and catches the reader with concrete punchlines - a book that you do not easily leave on the bookshelf.
No longer only about management - leadership will make the difference
The book points out new guidelines for the modus operandi of the board. Without slackening control, more focus must not surprisingly be forward-looking, which puts greater demand on the board leadership itself. It is no longer only a question of management with focus on plans, control and doing the right things. Now leadership it is evenly important to ensure execution and that right things are done right. The book provides concrete input for the board composition based on both individual professional skills and collaborative skills relating to the team in question. A steady stream of real life examples are turned into checklists for the board’s own reflections, and not least its self-evaluation.
JO Informatik is an example from my own board portfolio – a small Danish software company that designs and develops digital archives and software for digital administration. Three years ago, the founder and CEO Jesper Olsen decided to establish a professional board of directors and since then the value creation has accelerated significantly. Revenue has grown 66% over the last two years, a negative result has turned positive and the company consistently executes on the strategy, which recently has paved the way for an entry into the Norwegian market.
I would like to share some selected highlights from an article on JO Informatik’s experiences:
With a typical exit horizon at 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.
Examples of this are, when private equity funds already during the acquisition process have made extensive fact analysis, so they up front can set the right board and management team to execute the strategic and operational tasks as defined for the ownership period. Or they turn from comparing oneself with the nearest competitors to world class benchmarking, and long democratic decision making processes are replaced by short fact based decision making processes. Last but not least, their ability to handle large amounts of complexity under very tight deadlines.
With the right competencies on the board team, it is also natural and moreover fruitful, that boards engage more closely in management sparring and business development projects - of course with due regard to the principles and recommendations for good corporate governance.
The nominees for the Nordea Business Award must be individuals or companies who in the past year has improved its employment rate or business development.
The experience base has been increased and can benefit others. External inspiration and sparring is often the strongest driver of change and value growth.
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 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.