Leadership Optimization Archives

Now that you have been introduced to what life as a first-time CEO has in store, here are three recommendations for emerging CEOs:

Build, develop and lead through your leadership team

Building their leadership team has always been an important part of the CEO job; but the composition and purpose of this team is changing as businesses themselves take on a wider understanding of their purpose.

Traditionally a CEO’s goal was to develop a “high performing team,” in which each member was responsible for a different function that created value for investors and customers. But thanks to a growing emphasis on Environmental, Social & Governance (ESG) considerations, today’s leadership team must now serve a wider caste of stakeholders than its predecessors. Employees, for example, are now considered primary and equal stakeholders to investors and customers. Similarly, many investors are now evaluating companies based on their social and environmental relationships with the communities in which they operate.

As a result, modern CEOs need to build “high value creating” teams, in which success is measured by the team’s ability to create simultaneous value for a broad array of stakeholders. A side effect of this widened imperative is that success is no longer measured by looking at how individual members of the leadership team execute their individual functions. Instead, a successful leadership team has to work interactively, across functions, to ensure that it represent the interests of (and creates value for) all stakeholders.

For first-time or new CEOs, building a value-creating leadership team—and making sure that you get the right people on it—is crucial to your ability to focus broadly across the needs of the organization and to increase value by steering company purpose and culture. But it is not easy to do. A Systemic Leadership Team coach can be invaluable in helping the CEO build, lead and motivate the perfect team.

Build informal relationships with individual board members

The board can be an excellent source of guidance for CEOs, and newly appointed CEOs should go out of their way to build informal relationships with individual board members who can provide the advice, feedback, and support that CEOs often fail to receive from other members of their organizations.

But building these relationships can be harder than it sounds. Your board members, after all, do not work in the office down the hall; they may not even live in the same country. This is why close relationships between CEOs and board members rarely just fall into place like they often do between CEOs and key members of the leadership team. Instead, building relationships with board members often requires conscious effort. New CEOs will need to go out of their way to creatively engage their directors on a regular basis outside of the formal strictures of the boardroom.

Work with a coach

Executive coaches are an excellent resource for first-time CEOs. As neutral third-party observers, coaches provide the kind of constructive feedback and skills training that CEOs, as bosses, often struggle to get from their team members. They also help CEOs improve their skills in conflict management, responsibility delegation, time management, and listening—all of which are necessary for new CEOs to successfully adapt to the role.

The purpose of executive coaching is to increase performance by improving emotional intelligence, which leads to a more empathic and self-aware leader. Even the best CEOs can get better at their jobs. Some of the most influential CEOs in the last decades—Microsoft’s Bill Gates and Alphabet’s Eric Schmidt among them—have benefited tremendously from executive coaching.

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The CEO job can be one of the most rewarding jobs in business. It is also unquestionably one of the most difficult. Incoming first-time CEOs should expect the role to bring a variety of changes to their lives, most of them positive, some of them negative, others downright confusing. By surrounding yourself with trusted advisors, by consulting mentors, and by hiring a coach, both new and seasoned CEOs can minimize their isolation and get the feedback they need for success.

If you are reading this, chances are you have encountered articles telling you that a good chief executive officer (CEO) needs to be a decisive, results-oriented leader who can simultaneously articulate a strategic vision for the company, embody its culture and values, and represent it to outside entities—all while driving growth.

You probably also know that CEOs walk a tightrope between the often-contradictory imperatives of their job. They must be optimistic, capable of seeing opportunities wherever they look, and at the same time be capable of assessing the risks that lie beneath those opportunities. They must be great listeners and team-builders, able to synthesize information and opinions from a variety of sources; but they must also be decisive, willing to make decisions without consensus in moments of informational uncertainty.

The CEO position is comprised of psychological and emotional complexities; knowing what a CEO does and knowing how being a CEO feels are very different, and making the leap to the lead executive chair is one of the single most challenging job changes of most CEOs’ careers.

So, here are eight things you should know when making the transition:

Being boss-less is not all fun and games

Most first-time CEOs come to the role after decades of hard work—decades during which they had peers with whom they could informally trade feedback and superiors to whom they could refer certain hard-to-make decisions. The fact that CEOs have neither bosses nor peers within the company constitutes a real and drastic change, one that requires adjustment and often drives the social isolation, lack of feedback, and fear of decisiveness that first-time CEOs frequently experience.

Responsibility can be isolating and painful

Almost by definition, when you have boss, you also have someone to whom you can defer responsibility for the most consequential or challenging decisions. But when you are the CEO, you are that boss. For many executives, this is something they have longed for: the moment when they get to give orders without having to run them by someone else. But with this authority comes an intense emotional burden: suddenly you are the person making decisions—often based on limited information—that can have serious ramifications for the company’s health and the quality of your people’s lives. Indeed, at times you will have to choose between those exact things. Even experienced CEOs can find the weight of authority incredibly taxing, especially in times of crisis.

People will treat you differently

CEOs hold an almost reverential position in many companies. There are several explanations for this fact, but one of them is that it is the simple consequence of power disparity. If you are an employee, the CEO of your company is not just in charge of what you do at your job every day, they are in charge of whether you have your job at all. And this fact understandably influences the ways in which employees interpret and behave around their CEO.

People will do what you say

One by-product of your authority as a CEO is that what you say—and how you look when you say it—matters more than it did earlier in your career. For this reason, experienced CEOs are often quite careful when they speak; they know that even a spur-of-the-moment idea or opinion can, if voiced, have lasting impacts on the company’s culture, behavior, and reputation. As a new CEO, you can’t bounce ideas off just anyone. You can’t have emotional reactions around just anyone. You must calculate the potential interpretations and ramifications of every idea and opinion before you voice them.

People will act as you act

As the CEO, you embody—whether you intend to or not—the culture you want to see in your company. The way you speak, the way you comport yourself, the kinds of financial decisions you make on and off the job—all of these things send a message to the people who work for you. You may be astonished to learn, as a new CEO, that your employees talk about the model of car you drive and how much you paid for your house. But they will; and they’ll infer things about you and your values from that information.

Culturally speaking, CEOs need to understand (and leverage) the fact that their behavior has a symbolic dimension. Getting rid of corporate jets, for example, may have a tiny impact on the bottom line in the greater scheme of things, but it can go a long way in revising the tone of the company’s culture.

You are the external face of the company

Your own employees are not the only ones hanging on your every word and deed. As most first-time CEOs know, chief executives spend a significant amount of time and energy representing the company to the public—that is, to the media, to investors, and to stakeholder communities. But it is important to note that as the CEO, you are always serving in this capacity. Your life is now a symbol for something larger, and there are certain penalties that come with being a symbol. You give up a significant amount of anonymity, for example, and you give up certain freedoms that come with that anonymity. For some new CEOs and their families, this takes some getting used to.

You are overseeing something that pre-exists you

If you are coming into the company as a CEO, you are inheriting years, even decades, of relationships, precedents, expectations, and practices—many of which will never be described to you.

You will not have total control over your success and failure

Our culture tends to credit an organization’s successes and failures to the person in charge. If the company performs well, the CEO is applauded. If it stumbles, the CEO is blamed. But factors beyond the CEO’s control can dictate both successes and failures. As a CEO, you will be blamed for things that you feel like you had no control over, things you feel like you inherited, just as you’ll be applauded for successes that may not be directly linked to your actions. Either way, you must understand that the core responsibility of your job is to focus on creating value in the space between these extremes.

Hybrid and remote working have become a post-pandemic norm, and have paved the way for an entirely new working environment – the metaverse. This is a virtual reality environment where employees can meet and interact from anywhere around the world through avatars – digital versions of themselves – which they have designed.

The concept of the metaverse has started to gain significant traction, with a poll conducted by HR Magazine finding that over a third of respondents thought the technology was suitable for business, and that they were excited about using it. Many companies have even started rushing to buy virtual ‘offices’ in prime locations in these simulated universes.

On the one hand, the introduction of a digital working world can offer those working remotely the ability to interact with their colleagues more authentically. However, the rise of the metaverse also brings with it the question of how to approach it from a HR perspective.

How do you monitor diversity and inclusion when people can choose what they want to look like?

The process of designing one’s avatar is important for the metaverse to work. Having face-to-face interaction is what makes this technological development so attractive to organizations, but this will require a different set of people policies to those we currently have in the real world.

For example, when someone is creating their avatar, they will probably want it to look like them – but it will likely be an ‘enhanced’ version of themselves. After all, this is an opportunity to make yourself look the way you have always wanted! This is known as the ‘Proteus effect’ with employees adjusting their height, age, wardrobe, etc. to fit their desired self-image.

However, this risks creating an expectation that avatars should be physically ‘perfect’ which, in turn, could undermine the self-esteem and mental wellbeing of some individuals.

And while altering your avatar to have features which are manifestly different to your own might be considered harmful (or even offensive), organizations will need to decide whether there certain circumstances where significantly changing your avatar’s appearance might be acceptable. For example, if a wheelchair user were allowed to create an avatar which does not use one, would this create a workplace culture where people can be recognised for their ability to do their job rather their physical differences – or one where physical conformity is a requirement for an individual to feel that they belong? These are difficult ethical choices.

How do you design people strategies for people that are no longer physical?

Creating policies surrounding the creation of avatars is one thing, but the way employees behave towards each other in the metaverse workplace in another.

‘Trolling’ is a common internet phenomenon in which people will bully and harass others online through harmful comments. In the context of the workplace, if a colleague is offensive to you online it would probably be considered equally as severe if they were offensive to you in person. Most organizations already have procedures in place to deal with this type of verbal harassment – digital or otherwise.

But what about ‘physical’ harassment in the metaverse?

There have already been issues of avatars being assaulted by virtual colleagues, which begs the question whether this would (or should) be dealt with by employers in the same way they would respond to a similar assault in the real world. If I virtually strike your avatar, is that as bad as actually striking you?

So, the full implications of working in the metaverse are yet to be determined, but it is already clear that the HR strategies and policies we will require for this virtual workplace to be safe and inclusive for every employee will require careful consideration.

And although this may be a vision of the future, organizations should be starting to think about it in the present.

Throughout my career I’ve found myself gravitating towards startup assignments.

I’m a builder, so I find creating a business from scratch and calming the chaos extremely fulfilling.

Entrepreneurs who have chosen to create, develop, and execute a service or product are, by necessity, focused on growing the business.

External consultants, on the other hand, can deal with the time-consuming – but essential – details that keep the business on track:

Bringing a consultant on board gives entrepreneurs the freedom to focus on strategy and innovation, without getting bogged-down in the tactical aspects of scaling a business.
Experienced consultants are likely to have experienced similar growth environments and can share with entrepreneurs valuable ‘tricks and tips’ to drive organic growth. With a consultant’s guidance business founders can make and invest in better decisions from the start without the experimentation that wastes time, money, and energy.
Consultants are outside the business team and vested in the success of their assignment. As a result, they can rise above the office politics and interpersonal dynamics that inhibit the execution of strategy. Indeed, they can give business founders the honest, objective feedback they need to address these issues before they become problems.

On a recent assignment I found myself executing on all the above, allowing the business founder to shift their focus away from tactical areas best left for functional leaders and to spend more time fundraising for the company’s next investment series.

This is where we can help.

OrgShakers consultants have the knowledge, tools, and expertise across a wide range of People disciplines to give business founders the reassurance that what they have already built is in good hands … while freeing them up to focus on the growth of the company.

Most US-based publicly traded company boards will currently be approving 2021 executive incentives. As they do so, they will also be considering designs for their 2022 compensation programs. So, what’s likely to be new on this year’s agenda for Boards and executives to discuss?

1. Environmental, Societal and Governance (ESG) metrics

Whether it’s because of company focus on external stakeholders or pressure from activist investors, we’ve already seen a large increase in companies including ESG metrics in their incentive plans.

ESG embraces a diverse range of issues and how they are incorporated in incentive plans varies greatly not only in how they are measured but, as importantly, what is measured and how much it influences actual payouts.

For example, Environmental criteria may include meeting carbon footprint reduction targets and or increasing the percentage of renewable energy used by the organization.

Societal areas could include support for disadvantaged school systems or support for specific programs such as Science Technology Engineering and Math (STEM).

Governance can focus on a variety of areas from fostering an open culture to setting the highest standards for professional integrity which might include Diversity, Equity, and Inclusion (DE&I) objectives.

Indeed, according to Harvard Law Review, among the S&P 500 companies filing proxy statements between January and March of 2021, there was a 19% increase of companies including a DE&I metric over the prior year.

The point here is that, under the ESG umbrella, companies are still trying to figure out what is important to their shareholders and what should be (can be) measured and included as incentive metrics.

2. Human Capital Management (HCM)

The U.S. Securities and Exchange Commission (SEC) has recently introduced new disclosure requirements designed to provide stakeholders insight into an organizations HCM – from the operating model and talent planning practices through to the employee experience and work environment.

As with many other historical disclosure requirements, it is to be expected that companies will begin to mirror their HCM disclosures with some metrics included in incentive programs.

At the risk of being dilutive to other metrics incorporated into incentive plans, it can be expected that the ESG metrics will likely start to include some metrics related to their HCM.

For example, as part of an organization’s DE&I objectives, the attraction, retention, training, and promotion of diverse employees becomes a standard for measurement with incentive dollars tied to it.

3. Pay for Performance

Without doubt, this year’s executive compensation discussions will have the usual focus on pay for performance.

What will be different this year, however, is that while the economy was beginning to turn around, there are some significant headwinds companies are facing.

Talent shortages continue to be a critical business matter directly affecting companies’ ability to effectively serve their customers and to grow profitably.

And a significant downturn in the stock market has impacted shareholders’ perspective of company performance.

It has also adversely affected executive compensation currency since most long-term incentives are paid in the form of stock and/or stock options which now may be underwater.

Conclusion

How companies deal with these matters will shape how their programs are perceived both internally and externally.

It is always important to remember, whether it is a closely held family-owned business or a Fortune 100 publicly traded company, executive compensation is one of the most impactful communication vehicles a company has.

Through these programs, a company communicates what is important, how they define success, and how they value success (or lack of).

This year will be different in that people will be looking forward to the post-pandemic world, judging how the company has acted during the pandemic, and trying to assess the potential impact of the war in Ukraine.

Extra prudence is advised.

To make a difference for International Women’s Day 2022, OrgShakers’ leadership coaches are proud to offer FREE 1-hour one-on-one online sessions to women professionals throughout the whole of March.
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Just because we can, doesn’t mean we should.

This was my initial reaction to a recent article by Josh Bersin, Online coaching is so hot it’s now disrupting leadership development, where he explores how AI is transforming the way coaching is delivered – and to whom.

Now, I believe in the power of AI and the amazing things it can do to drive the HR agenda in ways that we’ve never dreamed possible. Here at OrgShakers, for example, we are using the latest developments in AI and machine learning to identify, map, and source hard-to-find talent.

But I was shocked when Bersin pointed out that AI might be able to monitor online coaching sessions to help coaches (and coachees) focus on the key issues – and even ‘give nudges’ to both parties to guide discussion during the actual session.

Am I stuck with a fixed mindset? Would this mean having to let go of some of the principles that are fundamental in a coaching relationship? I’m so used to the coachee bringing the agenda for the session. And what would this mean for the confidentiality of the coaching?

Then I started to reflect on another key point raised by Bersin – that the growth of companies like BetterUp, Torch, CoachHub, and SoundingBoard is ‘democratizing coaching’.

I can see that their business model certainly has advantages for companies wanting to provide coaching for more of their employees. However, I think online coaching is only one route to a more inclusive coaching culture.

The ease of availability and the lower costs delivered by online coaching are not exclusive to these providers. We’re all used to coaching virtually now and, while I’m starting to see some clients in person again, I will continue to work with many clients remotely.

Maybe it’s because I’m writing this having just come from a presentation by the truly inspirational Stephen Frost (a globally-recognized diversity, inclusion, and leadership expert, and a friend and partner of OrgShakers) that I’m wondering whether this approach really can achieve ‘coaching for all’ – the kind of coaching that Senior Executives have benefited from for years.

Previously I’ve written about the pandemic leading to more people being able to access coaching. Coaching definitely becomes more accessible if we offer one-off, on-demand sessions or the ability to contract for a few hours.

So, as we think about embracing online coaching, I suppose I have two asks! That we are clear on what’s on offer. And that we don’t lose the value and quality of a true coaching partnership.

Only then can we be sure whether (or not) we should.

If you are interested in a complimentary coaching session with an OrgShaker, look out for our International Women’s Day activity!

Looking back, I can’t remember a time when my parents weren’t leading. Sometimes they led small teams of 5-10, sometimes groups in the thousands. They were leaders at local, national, and international levels. While they were both leaders in their careers, they also led in many volunteer roles. Socially gifted, my parents’ ability to connect with people and bring them together was awe-inspiring.

Meanwhile, I was extremely shy and struggled to be in the same room with someone I didn’t know. This was okay as a small child. As I grew older, it was expected I would lead – just like my parents.

By the time I started school, I learned that no matter my personal preference, someone would call on me to lead. More importantly, it was expected that I would always accept the leadership role. As awkward and uncomfortable as I often felt, each new role built my knowledge, skill sets, and confidence. Today, I am a mixture of experienced leader, shy child, and leadership student.

My parents often reminded my siblings and me that the ability to work with people was more important than any personal gift we might have, like musical ability, intelligence, or physical agility. They constantly encouraged us to exercise our social “muscles” and often taught us through stories. To this day, I rely on their stories to help guide me through new or challenging situations.

Abraham Lincoln as a storyteller

Character is like a tree and reputation its shadow.
The shadow is what we think it is and the tree is the real thing.
Abraham Lincoln

Abraham Lincoln is often recognized as one of the most effective and influential leaders in history. He was also known for his ability to lead through storytelling. A number of his stories are captured in Donald T. Phillips’ book, “Lincoln on Leadership.”

The underlying theme of Abraham Lincoln’s leadership stories is a focus on individuals, relationships, and compassion. In his book, Phillips states, “the foundation of Abraham Lincoln’s leadership style was an unshakable commitment to the rights of the individual.” Fast Company author Mark C. Crowley underscores the importance of Lincoln’s understanding that, “Engagement and performance are mostly influenced by feelings and emotions.”

Whatever you are, be a good one.
Abraham Lincoln

Storytelling is an integral part of human learning and connection. Intentional storytelling can be one of the most effective and formative tools in a leader’s tool kit.

Think back to a personal leadership learning moment with a strong connection to your development journey. Chances are, there is a story that goes with the moment.

What stories would be included in a book about your leadership? Is there a theme or main message your stories contain? Is it the story you intended to tell?

What are the stories that guide you or that you use when guiding others? How will you use intentional storytelling in your leadership journey?

Want to dig a little deeper?
Consider:

Academic Paper – Harris, J & Barnes, B.K. (2006): “Leadership Storytelling“
Article by Christine Hennebury from CBC Canada: “Storytelling is not just entertainment. It’s a fundamental part of being human“
Book by Donald T. Phillips : “Lincoln on Leadership: Executive Strategies for Tough Times”
Article by Mark C. Crowley from Fast Company: The Leadership Genius Of Abraham Lincoln (fastcompany.com)

OrgShakers crack data analyst, Imogen Parsley, conducted a review of LinkedIn Updates and the results should cause significant concern in the board room.

A staggering rate of increase has occurred for C-suite executives updating their LinkedIn profiles.

Well, it is no secret that executive search firms leverage LinkedIn as one of their primary sources. Some may have done it because they’ve changed roles or employer.

But, why the sudden surge in updates? Is this a sign of the first wave of post-pandemic executive fatigue?

If this doesn’t set off significant alarm bells in the boardroom, someone is not paying attention.

Boards should take note and check to ensure the effectiveness of their total rewards and other recognition for their leadership team.

Does the team feel recognized and appreciated by the board?
How has the C-suite been treated throughout the pandemic?
Does the current compensation structure provide enough reward when merited by performance?
Are metrics reasonable or too aggressive?
Is there enough retention value in your Long-Term Incentives?

Board’s need to take stock of their rewards and the possible risk of key C-suite departures. As importantly, they need to pay close attention to the strength of their succession plan.

The first in line may be at the highest risk of departure. This follows a trend where recent study by Monster.com showed that more than 95% of employees in the US are considering a job change post pandemic.

The C-suite is apparently not immune from that sentiment – Boards ignore at your own risk!

Similar alert for CEOs!

When was the last time you gave unsolicited feedback?

When was the last time you told one your direct reports they did a great job on something?

How realistic is your succession plan? How strong is the retention component of your executive compensation program?

Should you engage your board with some recommendations for updates/modifications to your compensation structures?

Now is the time to act, by year end your best leaders may have already taken the call.

If they take the call, they are gone.

“If you want to get paid New York rates, you work in New York … none of this, ‘I’m in Colorado … and getting paid like I’m sitting in New York City.’ Sorry. That doesn’t work.”

This comment from Morgan Stanley CEO James Gorman during a recent investing conference created quite a commotion in the Twittersphere. And it’s likely that many Chief People Officers winced when they first heard it.

Is this evidence of a CEO who is insensitive to the reality of post-pandemic workplace dynamics?

Gorman continued: “Make no mistake about it. We do our work inside Morgan Stanley offices, and that’s where we teach, that’s where our interns learn, that’s how we develop people.”

So, was this actually an insight into the mind of a CEO who had assessed how best to meet the needs of his customers and organize work accordingly?

Either way, Gorman has highlighted that most organizations are going to be forced to re-evaluate how best to organize how work is performed, where it is performed, and who should perform it.

His comments also illustrated that most compensation structures are woefully out of date: why shouldn’t someone sitting in Colorado be paid as if they are sitting in New York? They’re doing the same work after all.

A recent study by Monster.com found that 95% of people are considering changing jobs following the pandemic – and according to the US Department of Labor a record 4-million people quit their jobs in April alone. A significant portion of employees also considering “fractional” employment where they work for more than one employer.

The pandemic is also forcing employers to re-think their real estate footprint, with a recent McKinsey survey showing that 9 out of 10 organizations are planning to combine remote and on-site working.

All of this will all lead to a different kind of workforce, delivering work in different ways, from different locations.

So, does it make sense to keep the traditional “one size fits all” approach to job structures and the associated pay?

Most of today’s compensation systems are focused on rewards for doing a specific job in a specific geography. And many of the job evaluation systems that help level and price these jobs are based on evaluation methodologies that are decades old and an assessment of values that are based on outdated workplace dynamics.

Now is, therefore, a perfect time to step back and reassess what is important to an organization, how best to structure the business to deliver the work, where talent should be located, and then – and only then – how best to reward that talent.

All too often in the past, compensation systems have been disconnected from the overall human capital strategy. Chief People Officers now have a unique opportunity to take a deeper, more strategic look at how you staff, who you staff – and how you keep them.

With extensive knowledge and expertise gained from supporting organizations of all sizes, OrgShakers can help you to positively “shake up” thinking about compensation systems to give you the reward agility you need to sustain and accelerate business performance.

Diversity brings a range of experience, differences in mindset, background, upbringing, world view, etc. and, as a result, diversity of thinking.

When we talk about the business benefits of diversity and inclusion we are thinking of the removal of inequitable barriers and widening of the talent pool, the richness of culture that a diverse workforce can bring and, from a business perspective, the wide range of viewpoints and ideas which create an engine for innovation and increased profitability.

Harnessing other people’s brains is a key leadership skill, as is also being able to understand others’ needs and appealing to their hearts through defining and articulating a motivating shared purpose.

The yin and yang of leadership – ‘Winning Hearts and Minds’ – should, I believe, be updated to ‘Sharing Hearts and Pooling Minds’.

The drive for diversity and inclusion in organisations is, thankfully, moving forward at pace and will hopefully lead to more diverse humans around the leadership table and thus diverse thinking in the most senior of leadership teams.

In my experience of working with senior leadership teams, there is often a vague understanding of the need and benefits of diversity. They know it’s a ‘good thing’ morally but often cannot articulate why from a business perspective and, even if they get the diverse thinking argument, they fail to fully leverage the benefits.

Many appear ill-equipped to know what to do with ideas different to their own when these appear around the senior leadership table. At its worst, they are confused that the new person that they have invited to share the table isn’t thinking like they are, isn’t towing the party line or ‘fitting in’.

Some leaders seem particularly focused on creating and ensuring team harmony, seeing the strongly held differences of opinion as conflict and to be avoided. They see a team as functioning ‘well’ when there is not dissent. But, as with many things, it is ‘how’ we challenge, not the challenge itself, that is the key. We don’t want harmony at all costs – and we don’t need outright conflict.

What we do need is ‘respectful challenge’. Ensuring that there is plenty of emotionally intelligent and respectful challenge of each other, is in my opinion, a business culture change that we need to make happen and soon.

Respectful challenge sits alongside co-creation but acknowledges that we need to draw differences of opinion out, in order to benefit from them and truly co-create, not bury the differences or paper them over in the name of being collaborative.

I am suggesting that we need to bring differences of thinking out into the open around the leadership table in a productive manner; to make it the norm to challenge openly, honestly but respectfully; to know that we don’t have the only answer, the one and only route; to really listen to and question each other with curiosity; and to find the nuggets in each of our ideas that when combined really are pure gold.

Our aim for leveraging diversity of thinking surely is not to agree quickly and move on, or shout down ideas that don’t make sense to us, our aim is to shine the light on different ideas and opinions, examine and find the optimum ideas for our organisations and then agree how to proceed.

Making the time to listen to multiple ideas drawn from many people may seem to be the antithesis of our fast moving, quickly decisive ways of working currently (and I’m not saying that we don’t have to make quick decisions in times of urgency), but we seem to have a business trend which pushes Pace over Quality – and I believe we are the poorer for it.

I have seen the following range of issues in leadership teams (sometimes several in the same team):-

‘Group think’ – where there is a lack of diverse thinking at all, such that the members are so aligned in their view of the world (same backgrounds, experiences etc) that “there cannot possibly be any other way to do things or think about things” – can there?
Intimidating leader – will brook no dissent, closes down debate, already thinks they personally have all the answers and that their job is to get everyone else to see the merit of their idea and agree with it.
Learned helplessness – often as a result of the intimidating leader, people give up airing views especially those they believe are not aligned with the leader’s viewpoint. They tend to leave the ideas and strategy to the alpha leader. This is dangerous for so many reasons – how good are the ideas from the leader? Harnessing other ideas is likely to create better end results and get buy-in. People are demotivated when they don’t have a voice – even senior leaders – and may leave.
Silent dissent – the team seem to agree with a course of action, or do not surface objections around the table, but mutter dissent outside of the meetings in small groups of allies. As a result, issues return to the table time after time or proceed slowly as people do not agree with the course of action and drag their feet.
Open aggression – the team all sit in their silos only thinking about their own business function and argue their position without listening to each other or focusing on what is best for the whole organisation.

None of the above are particularly healthy or lead to optimum functioning of a leadership team.

So, what are the solutions? Here are a few:

Hire diverse talent and recognise that what you will hopefully get is lots of difference in opinion, thinking and ideas. As a leader YOU need to learn how to best harness the differences and not try to bend diversity to fit into the existing ‘group think’ or shut down dissent. (I coach leaders to manage their concern over dissent and control their tendencies to take over and drive only their point of view).
Really understand that there are individual differences in thinking, not that someone just doesn’t get what you are saying or isn’t as smart as you! Remember that our goal is to understand each of our team’s unique viewpoints on topics precisely because each person truly does not think the same as the next and may have some great ideas and insights that may not occur to us. (I run neuroscience training to help individuals understand this key point.)
Develop the habits of active listening and questioning with curiosity, create team norms around these behaviours. I do this work with individuals and teams.
Encourage and make time for challenge – not conflict – and make respectful challenge a stated behaviour of your leadership team, reminding each other every meeting and interaction.
To respectfully challenge, team members need to feel that the environment is psychologically safe for them to step up and share a different perspective. So, develop your emotional intelligence, EQ – the ‘how’ we interact and communicate with each other – and hire talent with strong EQ or develop the EQ of the whole team. (I run individual EQ assessments and coaching and EQ awareness sessions).
Ensure that whoever is leading the meeting draws out the thinking of all in the group that wish to contribute and allows for different methods of contribution. For example, some people prefer to reflect and then suggest ideas – so send details of the key issues out ahead of the meeting or allow them time after the meeting to come back with thoughts.

Now, the cry I often hear when discussing respectful challenge and co-creation is “it takes so much longer to hear others’ views”. My response to that is yes, it can take time, but the outcomes will be of higher quality, you will innovate more frequently, you will have more buy-in and less instances of having to ‘do-over’ as potential objections and new ideas will have been addressed.

Of course, there will be instances when, in a time critical situation, a more rapid response may be needed – and often this will need to lean on the expertise of one or two people in the group advising the others. That said, in my experience once respectful challenge becomes the norm within a team it becomes quicker to achieve results that truly work as opposed to the delays that arise from the huddles of dissent outside of the meetings.

In summary, in order to really leverage the benefits of diversity we need to develop habits and behaviours which allow us to harness everyone’s unique brains. It’s not enough just to invite diverse thinking to the table and then think ‘job done’, we have to really be prepared to open up our minds to differences of opinion and build a culture of speak up and listen.

We need to build the emotional intelligence skills to actively listen, question with curiosity, build the skill of respectful challenge in all members of our leadership teams, and be humble enough to know that we don’t have all the answers and our job as leaders isn’t to provide all the answers ourselves.

Last week, I wrote about a personal milestone, the 40^th anniversary of my first solo flight in an aircraft aged just 16, and what I have learned about business leadership from my flying experiences.

This first article was focussed on self-awareness, risk mitigation and shared responsibilities.

There are three additional areas that really stand out for me.

The first of these is about effective communication. Pilots are taught to communicate effectively, for example with Air Traffic Control. In order to do this, they have to learn to listen carefully, to allow the speaker to finish what they are saying and to seek clarification of any detail of which they are unsure, no matter how minor.

Effective business leadership and outstanding communication are inextricably intertwined. The strongest leaders spend much of their time listening for understanding, they actively want people to speak up without fear of a negative consequence and they respect differences of opinion and champion the best ideas, regardless of who has voiced them. They also quickly adapt their communication style as circumstances develop.

The next area is about creating the right culture – a culture that facilitates careful consideration and calculated risk-taking on one hand and that also deals constructively with the aftermath when mistakes happen. It recognizes when something has gone wrong, it brings it to the table and focusses on what can be learned, rather than attributing blame.

Most pilots learn significantly from what’s gone wrong for others and consequently have the humility to openly admit to their own mistakes and share what they have learned as a result. In my experience, the best business leaders are comfortable doing the same.

Finally, and most importantly, flying for most pilots is fundamentally about continuous learning and self-improvement. Every experience is an opportunity to learn and become more skilled and more effective than the day before. This goes way beyond any regulatory requirements and can include both formal and informal training, listening to others and active self-reflection. In my own case, it extends to a personal journal that I complete after every flight.

Similarly, business leaders who stop learning stop leading. Business leaders who create most impact tend to look on every business challenge as an opportunity to learn something new for themselves, and then share their learnings so that individuals, teams and organisations can adopt a similar mindset and achieve sustainable growth. They are able to step up from the hurly-burly of the everyday and take responsibility for their own learning and for the learning of those around them. In this way, they also create the strongest legacies.

In business, the overall approach to continuous learning differs by sector, organization and individual. Whatever the approach, mentoring and executive coaching can play a vital role. They help leaders and aspiring leaders develop self-awareness, thinking and understanding, good judgement and communication skills in a safe, thought-provoking and creative way that is personalized to the needs and circumstances of the individual.

They foster a mindset around continuous learning and self-improvement in order to maximise personal and professional potential and, for many people, they ultimately help them become more fulfilled in their careers. For me personally, this is what I most enjoy as a mentor and executive coach.

That day 40 years ago remains vivid in my memory, particularly my instructor stepping out of the aircraft, smiling and signing me off for solo flight. After I had landed, a little stunned at what I just done, his congratulations and just a few words that made a big impact on me, “A textbook first solo, I’m sure it’s the first of many.”

He was correct. I just hadn’t anticipated that I would find parallel learnings in flying and in business.

If you’re interested in learning more about mentoring and executive coaching, or if you have anything to add to this article, please contact me. I’d love to hear from you.