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.

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

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.

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. 

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.

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.

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.

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.

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.

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. 

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.

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"!

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.

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.