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100 Best Business Books of All Time

Following years of reading, appraising, and retailing business books, 800-CEO-READ creator Jack Covert, ex-president Todd Sattersten, and present general manager Sally Haldorson have selected and appraised the one hundred greatest business titles of all time—the ones that dispense the biggest payoff for today’s occupied readers. It’s a great list, and in the vein of all lists, bound by argument and long-windedness about what is and isn’t contained in this list. Each book gets a couple of pages of outline handling.

Best Business Books on Improving Your Life

Best Business Books on Leadership

Best Business Books on Strategy

Best Business Books on Sales and Marketing

Best Business Books on Economics and Metrics

Best Business Books on Management

Best Business Biographies

Best Business Books on Entrepreneurship

Best Narratives of Fortune and Failure

Best Business Books on Innovation and Creativity

Best Books on Big Ideas About the Future of Business

Best Business Books on Management and Leadership Lessons

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Posted in Business and Strategy Leaders and Innovators Management and Leadership Mental Models and Psychology Philosophy and Wisdom

Customer Satisfaction Begins with Employee Engagement

The quickest ticket to customer satisfaction is through dependable, excellent service. As companies contend for competitive advantage, many find that refining service quality and customer satisfaction can be intangible. The first step to realizing both is to raise employee engagement.

'180 Ways To Build Employee Engagement' by Brian Gareau, Al Lucia (ISBN 193553792X) All organizations benefit from having an engaged workforce. But for those whose success pivots on delivering excellent customer service, a superior kind of employee engagement, customer-focused engagement, has an even tougher effect. Customer- focused engagement occurs when employee work groups are committed to (and passionate about) producing excellent service to their customers.

Employees won’t become engaged with service quality just because you demand them to. It takes time and effort to nurture an environment where engagement can set in and grow. With the right leadership, resources and information, you can shape the environment to engage employees and focus their efforts where it matters most—on customer satisfaction.

Correlation Between Employee Satisfaction and Customer Satisfaction

Evidence for Employee Engagement for Customer Satisfaction

Will an investment in employee engagement pay for itself through increased customer satisfaction?

We gauged satisfaction levels of 50 firms using the American Customer Satisfaction Index (ACSI). To measure customer-focused engagement, we probed employees to rate elements like, “We help customers beyond what is required,” and “The norm here is to help customers.”

'The Employee Engagement Mindset' by Timothy R. Clark (ISBN 0071788298) When we charted the employee survey results for each company against ASCI score for that company, we discovered that the higher the level of customer-focused engagement, the better the score on customer satisfaction. Actually, we see an absolute correlation between employee engagement and customer satisfaction. When you enhance customer-focused engagement, you will increase customer satisfaction.

Companies whose employees are highly engaged with customer service are rated the highest in customer satisfaction. Raising customer-focused employee engagement translates into dollars on the bottom line, possibly a lot of dollars. A mere one-point rise in your ASCI score can boost your ROI by an average of 11.4 percent!

What Gets Measured Gets Attention

Prior to you can increase engagement, you first must gage it. An precise measure of employee engagement requires a special survey—not the employee satisfaction survey. There is a distinction between employee satisfaction and engagement.

  • Satisfied employees feel enjoyable, satisfied, content, and comfortable. And they tend to have low absence, low turnover, and low substance abuse. But they may be neither engaged nor driven to expend extra effort in their work or for customers.
  • In contrast, engaged employees perform in ways that enhance the customer experience. They go the extra mile in the interest of service quality and customer satisfaction. When your customers receive superior service every day, it can have a spectacular impact on your financial health.

Engaged employees (focused on customers) feel fervent about providing excellent service, energized by helping customers, involved in their work, trusting of their manager. They feel safe to make decisions, take risks, or speak up with worries. They are committed to the goal of providing service excellence. They create relationships with customers, not just fill orders; anticipate customer needs; support coworkers so that they can provide service excellence; take initiative to ensure consistent service; and find answers to customer questions.

Creating Employee Engagement for Customer Satisfaction

Creating Employee Engagement for Customer Satisfaction

Engaging employees is not simply a matter of telling them what to do. The way to change someone’s work performance is to first change the way they feel about their jobs. Tailor your programs around six areas:

  1. Job design. When jobs are thought-provoking and allow employees to use all of their talents, they feel involved. Time passes quickly, and effort required to do the work is easy to give. Engagement is high when employees are working to achieve detailed difficult goals—goals they accept as judicious and attainable, but ones that also provide a “stretch.”
  2. Immediate managers. Managers play a big role in how employees feel about their jobs. Impartiality and trust shown to the employees by their managers will create a culture of engagement in the work group, ensuring a collective, organized effort in serving customers.
  3. Service message. Most of the service message employees receive comes from cues from their immediate manager as to what is important. Managers must recognize and strengthen service excellence, ensure that obstacles to excellence are removed, and set goals for service excellence. Without everything employees experience focuses their efforts on service quality and customer satisfaction, customer satisfaction likely won’t emerge.
  4. Resources. When employees feel they have the resources they need to do their jobs well, they are more involved in their customer service.
  5. HR policies. Organizations that ensure their HR management systems promote customer satisfaction—who gets hired, how they are trained, what is measured in performance management—produce customer-focused engagement.
  6. Benchmarking. You need baseline knowledge about employee engagement levels and customer satisfaction before you make changes. Use surveys and other assessment tools to measure employee engagement occasionally to evaluate progress.

Employee engagement has become such a hot theme that great groups of consultants and authors are undeniably banging on your door as we speak, armed with sufficient action plans and PowerPoint presentations to make your head spin. When employees are satisfied and engaged, the outcome is deeper customer connections and an raised customer experience.

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Posted in Management and Leadership

Create Partners, Not Employees or Followers

People want to succeed. The vast majority want to feel good about themselves and their work. Nevertheless, sometimes, it is tremendously difficult to balance day-to-day duties with the emotional needs of your employees.

There are no quick fixes or simple formulas for generating a culture that unleashes the competency of people. It occasionally requires intervention into a number of dimensions of organizational life: challenging management philosophy and practices, communicating and aligning everyone to the business strategy, cultivating processes and systems, providing training in social and business skills, etc.

Whom would you rather have at your side in a tough spot? A partner who shares full responsibility for decisions and their outcomes? Alternatively, a subordinate who does just what you say and shuts up about ideas he has that may be better.

Rationally, you want the former; emotionally, you may choose the latter. Leaders bow to a multitude of short-term pressures: severe demands for quarterly earnings, risk aversion, distress with uncertainty, resistance to change, linear extrapolation from past experience, and reluctance to cannibalize established businesses.

'It's Okay to Be the Boss' by Bruce Tulgan (ISBN 0061121363) Reflect on your career. Have you ever kept quiet when superiors were creating problems? What caused you to withhold your counsel?

I guarantee you they were being “the boss.” Everything about their tone, body language, verbal language, and behavior was indicating you that they were the boss and you were the subordinate. Chances are you learned from them what a boss looks and sounds like. Whether you admired their style or not, some of it rubbed off on you.

When you act as a superior, you will have subordinates. Act as a partner, and you will have partners. Yes, you may be the senior partner, but they are still partners, not underlings, or subordinates.

One key dissimilarity between the behavior of a “boss” and a “partner” is the way you talk. You talk differently to partners. It is not just what you say, but how you say it. To a subordinate, you might say, “This client wants his order fulfilled now. Make it happen.”

What is the message? It is not just “Get the order done now,” but it is also “I’m the boss; this is what I want—and there could be outcomes if I don’t get it.” It does not require a dramatic act to make the point that the receiver is your subordinate. Are you aware of how often and in how many ways you send similar messages?

This is not how you would talk to a partner. You might be just as clear about what you want and when; however, your delivery would create partnership, not subservience. You might ask, “How can we do that?” Alternatively, “Can you make it happen?” You would seek the individual’s knowledge, responsibility, and mutual obligation. When employees are seen as partners, they will understand that their leaders do not simply see them as the means to achieve their own personal targets.

You talk differently to folks below you than to folks across from or above you. So what? The higher you go, the less direct experience you have of customers, stakeholders, and problems. It is harder to get a real feel for what is happening. You become more reliant on on good information and insight from those who are in touch. So, they need to feel invited to tell you the reality they see, especially when it differs from the one you believe is out there.

You likely think that you already extend this encouragement, but you may discourage people from giving you inconvenient information. Unless you make an effort to discover in what ways you do this, you will continue to do so.

Create Partners with Your Subordinates

Create Partners with Your Subordinates

To create partners and have your employees’ best interests in mind, try this exercise:

  • Start every meeting with a question: “Is there anything I’m not getting about this issue that you think I should?”
  • Whatever the answer, respond with interest and ask, “Can you tell me more about that or give an example to help me understand it better?”
  • Ask questions until you have clarity on the points. Do not argue. Do not cross-examine—just clarify.
  • Thank the individual or group making these points.
  • Incorporate what makes sense into the decisions.
  • If no one spoke up, after the meeting ask the individual who is likely to be forthright, “What am I doing that keeps everyone from talking?”
  • If this individual gives you insight into how you dissuade feedback, convey your gratefulness. Find a way to reward the honesty.
  • Invite this truth-teller to sit in on more meetings and after each one gives you feedback on anything you did that made others act as subordinates.

Simple Ways to Build Trust With Your Employees

Build Trust with Your Employees

Trust is established when even the newest rookie, a part-timer, or the lowest paid employee feels important and part of the team. This begins with management not being reserved, as well as getting out and meeting the troops.

'The 27 Challenges Managers Face' by Bruce Tulgan (ISBN 111872559X) By doing this you will have the self-awareness to create partners. You will also have earned their trust. They will give you their best advice and devotedly support decisions that are based on reality.

By creating this environment where your employees are treated as partners working toward a shared purpose, you will foster in your employees a sense of ownership not simply to their job, but to the whole process. This will inspire not only partnership between the company’s divisions/teams, but it will also help nurture innovation as employees are stimulated to look beyond what they usually work on or how they approach their job.

Good partners invest time and energy in making cognizant judgments about who their leaders are and what they espouse. Then they take the appropriate action.

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Posted in Management and Leadership

Use Facilitative Leadership to Transform Your Organization

Facilitative Leadership Style

'The Facilitative Leadership That Makes the Difference' by Priscilla H. Wilson (ISBN 097297640X) Facilitative leadership is not about leading by committee or getting everyone together and asking, “What do you and you think?” Committee can decide not everything. The front lines are not the place to take a straw poll. Even so, there are times when a leader can, and should, get people together to talk about how to improve operations and ask for input. That is facilitative leadership.

For this process to work, leaders must create a culture where people not only feel comfortable contributing ideas and suggestions, but where leaders act on those inputs.

Facilitative Leadership Theory

Acting on input does not mean doing everything the group tells you to do. It means making it clear to the group that their input is valued by defining how that input will be used. Many times a leader gives the impression that if the team members give honest input, they will be punished. This is why the leader must clarify how the input will be used before asking for input.

For instance, let the group know if you are:

  • Just asking for ideas and you, the leader, will make the final decision,
  • Asking for ideas and you, the leader, will discuss options with the group before making the final decision,
  • Requesting input so the final decision will be made together as a team,
  • Requiring input, and the team will make the final decision after reviewing it with you, and,
  • Giving input to the team and the team will tell you what the final decision is.

Facilitative Leadership Style

Facilitative Leadership Style

These are examples of how to explain your intentions when involving direct reports in decision-making. Clarity builds respect, trust, and rapport.

'The Practice of Facilitative Leadership' by Ken Todd Williams (ISBN 1523693908) The role of the leader is changing. Once, the leader stood in the middle of everything and directed the team with one-way communication. The leader would say, “Jump,” and followers would only ask, “How high?” As leaders progress, they allow for two- way communication, but they are still in the middle directing the activities. Then, as leaders continue to progress, they step out of the middle and become a part of the team. The leaders are still responsible, but they do not push their people—they tend to pull, to get people to follow them—not to push and micro-manage them.

As leaders progress even more, they can step away from the day-to-day management. This affords even more communication among the members of the team. Again, you cannot do this until you help the team members interact with each other on a level playing field. You can then be free to work on the strategic elements of your job.

These skills are becoming more critical because the leader’s span at control is expanding!

Now, when you step away, you do not disengage! You cannot expect what you do not inspect. So you must be accessible, continue to coach, and have the courage to hold people accountable and not fold under pressure. Suppose, for example, that you have been coaching a direct report on an important project. The project does not reach its target. Your boss calls you in and asks, “What happened?” You might explain how you have been coaching a member of your team who let you down; but you need the courage to also say, “I am responsible, and I will make sure that it doesn’t happen again.” You are ultimately responsible for your group’s performance!

Now, you will want to talk with that direct report about what happened. Clearly, you need to revisit the miscues. It is the employee’s responsibility to achieve the goals, but you need to ensure your people are on-track.

Characteristics of Facilitative Leaders

Characteristics of Facilitative Leaders

Facilitative leaders listen to multiple points of view, including those they do not agree with. This enables them to make better decisions. Facilitative leaders capture the key kernels of information, build bridges between people, and create an atmosphere where people share information.

When you master these skills, you become a facilitative leader. The need for greater collaboration comes at a time when the diversity of perspectives, talents, and cultures present in the workplace is increasing. Achieving better results by tapping into this mix is a goal that can be accomplished through effective application of facilitative leadership fundamentals.

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Posted in Management and Leadership

Best Practices for Corporate Boards & Governance

Best Practices for Corporate Boards & Governance

In the wake of many business failures, we have criticized every player in the system except the one charged with insuring that these failures do not occur: the board of directors. They are elected by the shareholders as the ultimate governing body and charged with preserving the company and building it long term.

Many boards have abandoned the legal and fiduciary responsibilities. They have become more responsive to the CEO and the management than to the shareholders. In so doing, they abandon their governance role to get the company’s stock price up. They stop asking the hard questions about how the company achieves its numbers, whether it makes adequate investments to build for the long-term and whether its strategies are still valid and effectively implemented.

Our systems of governance must be reformed. This begins with having a “bright line” between governance and management. Boards have ceded their governance responsibilities to the CEO. Now they must reclaim it.

Here is a 10-step program to improve board governance:

  1. Create principles of governance. The independent directors of the board need to establish principles of governance that describe the functions of the board and how the board will conduct itself. The principles should be published for all shareholders to see, and each year the board should report to the shareholders, evaluating the effectiveness of these principles.
  2. Have truly independent directors. This is essential to effective governance. Boards need directors who have had no prior association with the company. To measure their independence, no director should receive any compensation other than standard board fees. Nor should any interlocking directorates be permitted between the CEO and any member.
  3. Select board members more for their values than their titles. Too often we choose directors for the positions they hold, rather than their commitment, availability, and competence as board the many member. Let’s take advantage of executives who have the time and inclination to serve on boards. Let’s also assess the diversity of backgrounds and experience we need on the board to provide sound guidance.
  4. Establish a Governance and Nominating Committee composed solely of outside directors. This committee maintains the principles of governance, nominates people for election to the board, evaluates existing directors, conducts the evaluation of the chairperson and the CEO, and develops a succession plan for the CEO, including the selection of new CEOs. This committee is charged with organizing the board and its committees, identifying independent directors to chair them.
  5. Elect a Lead Director. If one person is both chair and CEO, the independent directors must elect a lead director to organize them, insure their independence, and advise the CEO. I prefer that the lead director be the chair of the governance committee, as these functions are closely aligned.
  6. Corporate Boards oversee governance and management Qualify members of the Audit and Finance Committees to insure the veracity of the financial statements. These committees should meet privately with external auditors, the CFO, and internal auditors. Outside auditors should not receive any additional consulting fees from the company.
  7. Hire an independent compensation consultant. Neither the CEO nor any member of management should be involved in setting the CEO’s compensation, or board fees. My big concern with executive compensation is the grants made by compensation committees to executives who do not perform or who are terminated. These moves destroy the integrity of incentive systems. At the executive level, it should be “pay for performance.” Period.
  8. Meet regularly in executive sessions. This works best if the board meeting begins in executive session with the CEO, and concludes with an executive session without the CEO present. These sessions are much more open and often lead to rich discussions of the most vital issues. Of course, the lead director must convey the essence of the discussion to the CEO.
  9. Seek the right Board chemistry. Board members should respect each other, but not hesitate to challenge each other, the CEO, and members of management. At times, a single director must stand against management and the rest of the board if he or she feels that the company is headed in the wrong direction. Board knowledge and chemistry can be enhanced with off site visits to company locations and one extended meeting per year, preferably off-site, to review the company’s strategies in depth. These longer sessions give independent directors deeper insights into the business, and build relationships that are vital in crises.
  10. Reestablish the bright line between governance and management. Directors must step up to their responsibilities and establish that bright line between governance and management. Will this reduce the power of the CEO to manage the company? No. The best CEOs want to have a strong, independent board, and look to the board for advice and counsel, not just approval, on important matters. Having a clear line between will keep the board from usurping the CEO’s prerogatives just as it will constrain management. This will help restore the balance to decision-making and ensure stability.

To transform our systems of government, businesses, and non-profits, we need courageous, authentic, and visionary leaders and directors, not just people who react to events.

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Posted in Management and Leadership

Starbucks CEO Howard Schultz Calls It a Day

Starbucks COO Kevin Johnson is the right replacement for CEO Howard Schultz

Starbucks CEO Howard Schultz has called it a day, and that’s causing some investors a bit of worry, primarily because the coffee giant struggled the last time Schultz left in 2000.

Starbucks COO Kevin Johnson Replaces CEO Howard Schultz

Kevin Johnson, the current president and chief operating officer of Starbucks, will take over as CEO. Johnson is a 30-year veteran of the tech industry held senior leadership roles for 16 years at Microsoft and a five-year stint CEO of Juniper Networks.

Johnson’s consumer technology background is impressive and is a key asset for Starbucks in expanding the company’s already-leading digital platform across channels and geographies in the years to come.

Former Starbucks COO Troy Alstead Quit in January 2015

When Starbucks’ longtime COO Troy Alstead quit, Schultz wrote, “Looking back on the 23 years we spent together side-by-side as Starbucks colleagues, I can recall so many memorable moments and accomplishments in which Troy can take pride in a job well done. Troy is a beloved Starbucks partner and has played an invaluable role in our growth as an enterprise and in the development of our culture as a performance-driven company balanced with humanity, which is unique for our industry. Troy’s humanity and humility will be missed and we wish him the best.”

Starbucks' Premium Roastery and Reserve Stores

Schultz Focused on Sustaining Revenue

For the last several years, Schultz focused on sustaining revenue growth by moving beyond his coffee house roots. In 2012, he purchased Teavana as another brick in the road, which has encompassed instant coffee, energy drinks, juice, a single-serve brewer and food to sell in its shops and in grocery stores. In 2013, Starbucks and yogurt-maker Danone, declared a plan to cooperatively create an assortment of specialty yogurt products in contributing Starbucks stores in 2014 and in grocery channels in 2015 as part of the coffee chain’s growing Evolution Fresh brand. With cafe-like atmospheres and a brand that evokes a high-quality customer experience, Starbucks appreciates pricing power benefits over nearly all specialty coffee peers. This will be expanded by the development of the Starbucks Reserve sub-brand to deliver exclusive, higher-end coffee blends.

While Schultz’s forethought and attention to customer experience have been significant motives that Starbucks has established one of the widest-moat and most consistent growth stories in the global consumer coverage universe, Starbucks has one of the deepest benches in the consumer sector. While most of the focus is technically on new CEO Johnson and his wide-ranging consumer technology background, Schultz will still be immersed with the development of Starbucks’ Premium Roastery and Reserve stores.

'Onward How Starbucks Fought for Its Life' by Howard Schultz (ISBN 1609613821) Don’t liken Schultz’s switch to that of 2000, when he undertook the chairman role and assigned Jim Donald as CEO. Schultz ultimately returned as CEO in 2008 in the wake of disappointing sales figures and a “watering down of the Starbucks experience”. In his turnaround memoir Onward: How Starbucks Fought for Its Life without Losing Its Soul, Schultz wrote “The merchant’s success depends on his or her ability to tell a story. What people see or hear or smell or do when they enter a space guides their feelings, enticing them to celebrate whatever the seller has to offer. Intuitively I have always understood this. So when, in 2006 and 2007, I walked into more and more Starbucks stores and sensed that we were no longer celebrating coffee, my heart sank. Our customers deserved better.”

How Starbucks Became Successful

How Starbucks Became Successful

Brand, channel, and technology advantages have positioned Starbucks for a long runway for growth:

  • Starbucks coffee is robust, and people get used to the taste, making it difficult for them to be content somewhere else, either to coffee chains such as Dunkin’ Brands, Tim Hortons, or McDonald’s. Joh. A. Benckiser’s amalgamation of Mondelez’s coffee properties (D.E Master Blenders, Peet’s, Caribou, Einstein Noah, and Keurig) are emerging as Starbucks’s noteworthy competitors. Despite the tenacity of the legend, Starbucks doesn’t really burn its beans. Nonetheless it uses two tablespoons of coffee per 6 ounces of water, which is beyond a lot of other places.
  • Decades ago, in many markets, the only place a customer could get a cappuccino was a restaurant, and there indeed weren’t any flavored or distinguished coffees anywhere. Starbucks was the pioneer in bringing those to the masses. There’s countless brand loyalty they’ve built up over the years. As good the coffee beans are a good amount of training goes in the way they make specialized drinks. Wet, dry cappucino, lattes in perfect ratios of coffee, milk and foam.
  • Starbucks has been known for being pretty generous to its employees, together with presenting full benefits to those working as a minimum 20 hours per week. That made customers feel good about buying coffee there.
  • Customers appreciate the consistency of Starbucks products. A customer can go to a Starbucks pretty much anyplace in the world, and know what they’re getting. A grande vanilla latte will be on the menu and taste the same whether in Seattle, New York, London, Istanbul, or Moscow.

The Recipe to Starbucks Success

The Recipe to Starbucks’ Success

Yet same-store sales have been decelerating, however from very high levels, and the company ran into difficulty the last time Schultz stepped back from the CEO role. Regardless of impressive growth plans, and commodity cost and foreign currency volatility, Starbucks can endure a 40%-45% dividend payout ratio over the next decade.

Some analysts and investors aren’t worried about the management change. Wells Fargo’s Bonnie Herzog acknowledged that while Schultz’s departure is “a loss, in our view the show must (and will) go on” and added, “While we acknowledge that Schultz is without question one of the strongest and most visionary leaders in the consumer/retail world, we believe the succession planning put in place several years ago assures the recent exceptional performance will likely continue.”

Starbucks Future Strategy for Invigorated Growth

Starbucks Future Strategy for Invigorated Growth

Speaking of how Starbucks’ invigorated food and beverage menu and store reformats have uplifted the Starbucks customer experience, pierced new markets and times, and enhanced unit-level productivity metrics, Herzog also wrote,

The leadership change announced today has been a long-time in the making, starting nearly 3 years ago with the shuffling of the senior leadership team, and subsequent promotion of Johnson in early 2015 to the role of President/COO. We believe that Johnson is a very capable leader, with strong experience working side-by-side Schultz for the past two years. Importantly Johnson has an exceptionally good relationship with Schultz, which should keep Schultz sufficiently removed to allow Johnson to lead effectively given his trust in Johnson, while also remaining sufficiently nearby to ensure the ship remains on course… We believe Johnson’s technology background positions him well to ensure SBUX’s mobile and digital initiatives—key to SBUX’s long-term success, in our view—will remain a primary focus of the company. Importantly, Schultz will remain focused on his ongoing efforts to premiumize the SBUX brand and experience through Roastery and Reserve stores, which should support accelerated innovation and allow the broader store network led by Johnson to continue to thrive.

Investors are also cheerful about Starbucks’ mobile, digital, and loyalty program collaborations across the various business lines, affiliations with Spotify, New York Times, and Lyft, and new payment technologies. Starbucks’ worldwide opportunities are undisputable–particularly in China, India, Japan, Brazil, and Eastern Europe–and Starbucks will apply its best practices from the U.S. to accelerate its growth aspirations.

Starbucks has organized an investor meeting next week, during which its leaders are expected to release news on current and future initiatives.

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Posted in Business and Strategy

Best Books on Creativity

Inspire Greater Creativity

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Posted in Mental Models and Psychology

Books on Creativity Recommended by Ted Leonsis

Creative people often retain a capability to adopt a number of diverse stances or perspectives. When they look at their own work, they focus interchangeably on the technical aspects, the visual design, the ideas, and so on. They develop a set of standards or a checklist that leads their attention and helps them to scrutinize the creative process. Moreover, they master a lexis that enables them to assess their work in multiple dimensions, so that they can pass more qualified judgements than just ‘good’ or ‘bad.’

A multidimensional valuation gives students feedback, which helps them determine their strengths and detect areas in which they need to improve. The scores on such valuations can also help an educational program to review its results, contemplate its position and modify the course if necessary. Although creativity can only make the most of as originality, utility, and surprise all approach unity, the same description indicates that there are seven different ways that creativity can minimize. These alternatives were identified as

  • routine, reproductive, or habitual ideas,
  • accidental response bias,
  • irrational perseveration,
  • problem finding,
  • rational suppression,
  • irrational suppression, and
  • blissful ignorance.

According to conventional wisdom, creativity is somewhat done by creative people. Even creativity researchers, for several decades, seemed to direct their work by this principle, converging predominantly on individual differences: What are creative people like, and how are they different from most people in the world? Although this person-centered tactic yielded some important findings about the backgrounds, personality traits, and work styles of marvelously creative people, it was both limited and limiting. It presented little to practitioners related with helping people to become more creative in their work, and it virtually ignored the role of the social environment in creativity and innovation. In contrast to the long-established approach, the Componential Theory of Creativity assumes that all humans with normal capabilities are able to produce at least judiciously creative work in some domain, some of the time-and that the social environment (the work environment) can manipulate both the level and the incidence of creative behavior.

Books on Creativity Recommended by Ted Leonsis Ted Leonsis, the Internet entrepreneur, former AOL senior executive, and owner of the Washington Wizards and Washington Capitals recommends the following books on creativity.

  • Ed Catmull’s Creativity : 1970s computer animation pioneer and Pixar co-founder Ed Catmull‘s appealingly comprehensive explanation of how the studio he co-founded generated hits such as the Toy Story trilogy, Up, and Wall-E. Catmull closes that it is a leader’s responsibility to stop ambitious and perfectionist staff destroying their health and that of others. Aiming for zero mistakes is the worst possible goal for a creative project. He argues that a company has to appreciate the work of creativity and learn how to navigate the failures that will happen along the way.
  • 'Crossing the Chasm' by Geoffrey A. Moore (ISBN 0062292986) Geoffrey A. Moore’s Crossing the Chasm: Author Geoffrey A. Moore is managing partner of TCG Advisors, a consulting practice that delivers business and marketing strategy assistances to well-known high-technology companies. Moore declared that the greatest change in the marketing approach happens at the chasm—the organizations to the right of the chasm have meaningfully different opportunities than those on the left. Many ideas fail in the marketplace because their enthusiasts are not capable to cross the chasm.
  • Elmira Bayrasli’s From the Other Side of the World: Journalist Elmira Bayrasli posits that brilliant people around the world are conquering insoluble obstacles to build high-growth businesses that are driving wealth and building communities, regions and countries. By means of seven noteworthy stories, Bayrasli shows the next set of successful entrepreneurs could come not only from the as Silicon Valley but also from Nigeria, Pakistan or Mexico. She writes, “Entrepreneurs, by the very nature of what they do—disrupt and innovate—provide a necessary check and balance on government that no one else can—not businesspeople, not NGOs, not civil society organizations. They help remake the social order and help move progress forward, giving rise to new ideas, new industries, and new possibilities and forcing change. That is what has made them both heroes and villains that many in power feel the need to keep in check.”
  • 'Stop Playing Safe' by Margie Warrell (ISBN 1118505581) Margie Warrell’s Stop Playing Safe: When people confront a challenge, they often recoil into inaction. Drawing from the latest research plus dialogues with highly successful leaders and entrepreneurs, Warrell offers practical tools and inspiration needed to enjoy greater confidence, accomplishment and success in work and life. Outline your sense of purpose and engage in more inspiring goals. Circumnavigate uncertainty with clarity and be more decisive in adversity. Surmount the fear of failure and bounce back from setbacks with superior flexibility. Toughen your leadership ability and expand your influence regardless of position. Build a culture of courage in your office that advances bottom line results. As you strive to reach your goals, as you make those tough choices and take risks, look for your enthusiasm, find your power, and aim to make a difference. And know that this attitude—this mindset, this entrepreneurial way of looking at the world—runs though the lives of all successful people.
  • Linda A. Hill, et al.’s Collective Genius: The perpetual organizational challenge is to develop an organization capable of inventing over and over. Outdated, direction-setting leadership can work well when the resolution to a problem is known and forthright. The role of a leader of innovation is not to set a vision and stimulate others to follow it. It’s to create a cooperative spirit that is enthusiastic and capable to innovate. Collective Genius addresses (1) how leaders generate a willingness to do the hard work of innovation, and (2) how leaders can generate the ability to do the hard work of innovation.
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Posted in Management and Leadership Mental Models and Psychology

New Challenges in Leadership

Leadership today is more challenging than ever. Leaders face globalization; increased competition for customers, markets, and talent; rapid change; speed and complexity; change in types of workers and related contracts; loss of purpose among workers; increased process management and decreased mobility-among other things.

Leaders today must create a pathway along a liminal landscape that is constantly shifting between chaos and order. In this state, people live outside their comfort zones; they experience a loss of meaning and direction. They are faced with doing things they have little experience with or have ne.ver done before. They realize that the future is not just unknown; it is unknowable.

A special type of leader is needed for this unknowable condition-one who can help provide direction, meaning, and contain anxiety for others, on one hand, and facilitate openness, ongoing learning, and reflection on the other. These leaders must not only embrace both order and chaos but also provide a way for people to reflect transformaupon what they are doing and enable needthem to make more useful sense of it. Leaders also need to be both effective mentors for others and effective learn-ers themselves.

Leaders can successfully navigate this territory by embracing both sides of the order I chaos paradox-transformation and emergence.

  • Transformational leaders-those who bring order to guiding changemust not only convey a compelling vision and be sensitive and responsive to the needs of their constituents but also behave as role models who walk the talk. These leaders typically are officially designated and have the formal position, authority, and backing. They drive change, establish the vision, and mobilize the troops.
  • Emergent leaders, on the other hand, may not be officially sanctioned and are more on the chaos side. They may, in fact, be part of what Ralph Stacy terms the shadow organization interactions among members of a legitimate system that fall outside that legitimate system. As people operate in the shadow system, leadership roles emerge. The roles then shift based on contributions people make and how they make that contribution known.

Another way leadership emerges is when an individual articulates and initiates potentially creative thought, discoveries, and behavior either on their own behalf or that of others. Often these leaders emerge from the ranks. Conversely, they may be officially sanctioned as leaders but have relationships and ways of working that go beyond what appears on charts, in position descriptions, or in job objectives.

They make the vision come alive by creating space for it to unfold through their own actions; they build commitment and confidence, create opportnities, and help others lead them selves. These leaders translate the guiding visions, values and beliefs into action by using them to shape their own behavior.

The attributes of both transformational and emergent leaders are needed. These attributes, more likely to be manifest in a team of individuals, are essential for navigating the liminal space between chaos and order. The manner in which they are combined and applied will depend on the leaders and their organizations.

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The Leadership Tent

Vital leadership competencies

We will not add yet another description of the character traits or thought processes of leaders. Our analysis of massive data collected on leaders’ competencies reveals that all vital leadership competencies can be grouped into five elements, which we compare to the poles in a tent:

  1. Character: Our model starts with a center pole representing the “character” of an individual. Personal characters is the core of leadership effectiveness. The ethical standards, integrity, and authenticity of the leader are extremely important. With a strong personal character, the leader is never afraid to be open and transparent. In fact, the more people can see inside, the more highly regarded the leader will be. Without that personal character, leaders are forever in danger of being “discovered.”
  2. Personal capability. The pole of personal capability describes the intellectual, emotional, and skill makeup of the individual. It includes analytical and problem-solving capabilities, along with technical competence. It requires an ability to create a clear vision and sense of purpose. Great leaders need these personal capabilities. Leadership cannot be delegated to others. The leader must be emotionally resilient, trust others, and be self-confident enough to run effective meetings and speak well in public.
  3. Focus on results. Focusing on results describes the ability to have an impact and get things accomplished. Leaders may be wonderful human beings, but if they don’t produce sustained, balanced results, they simply are not good leaders.
  4. Interpersonal skills. Leadership is expressed through the communication process and is the impact that the leader has on other people. It is the leader’s ability to obtain good results in other arenas, such as financial outcomes, productivity improvement, or enhanced customer relations.
  5. Leading change. Another expression of leadership comes in the ability to produce positive change. The highest expression of leadership involves change. Caretaker managers can keep things going, but leaders are demanded if the organization is to pursue a new path or rise to higher performance. For many leadership roles, the first four tent poles may be all that are required. It is not until a person gets into leading strategic change that the final tent pole is required.
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