Leadership

Leadership is Being Visible at Times of Crises

February 25, 2021 By Nagesh Belludi Leave a Comment

It’s terrible optics for an elected official to leave his constituency while it’s in the midst of a crisis.

In a grave slip-up for an ambitious politician, Texas Senator Ted Cruz’s giving a lame excuse initially for his Cancún joint made him look insensitive. He was expected to stay and endure alongside his constituents, who were suffering from Texas’s recent freezing temperatures and blackouts.

Of course, Cruz didn’t do anything that hurt anybody, apart from drawing police resources away to shepherd him through the airport. Cruz’s argument—sensible in its own way—was that all he could do was be in regular communication with state and local officials who’re spearheading the crisis response. After all, Cruz has no formal power in the state administration.

As a comparison, King George and the Queen Mother declined to leave London as bombs shattered their city during World War II. As an expression of concern, and commitment to the Allied cause, they even visited sites destroyed during The Blitz of 1940.

Idea for Impact: Leadership means serving as an anchor during crisis times and being available, connected, and accessible during a crisis. Leaders can’t do everything, and they need to delegate responsibilities. However, entrustment should not entail emotional detachment.

What Elon Musk and Jeff Bezos Learn “On the Floor”

November 26, 2020 By Nagesh Belludi Leave a Comment

Leaders can learn a great deal on the frontlines, not only about the inner workings of the products they produce and the services they offer but also about their employees:

Tesla CEO Elon Musk sees being on the production line and understanding it an integral part of his job. Musk famously declared, “I have a sleeping bag in a conference room adjacent to the production line, which I use quite frequently.” He has helped his California factory hit its production goals—even “real-time triaging cars at the end of the line trying to get to the root cause of what the issues were.”
Amazon requires its deskbound managers to attend two days of call-center training. CEO Jeff Bezos said in 2007, “Every new employee, no matter how senior or junior, has to go spend time in our fulfillment centers within the first year of employment. Every two years they do two days of customer service. Everyone has to be able to work in a call center. … I just got recertified about six months ago. The fact that I did a lot of customer service in the first two years has not exempted me.”
Subway Restaurants’ chief development officer Don Fertman appeared incognito as a “sandwich artist” for a week on the popular CBS Undercover Boss reality TV show in 2010. Fertman remarked that this ground-level perspective offered managerial empathy and led to better decisions. Subway’s senior-level executives are now required to spend a week every year in the field, becoming aware of how their choices influence franchisees and customers.

Idea for Impact: The frontlines offer leaders unfiltered information

Leaders, don’t risk the ego trap of losing touch with the frontline experience.

Venture out of the office and work directly with frontline employees. Even do the work of those they lead for a while. You’ll break down the hierarchy and glean a valuable new perspective.

Don’t forgo the frontline advantage—that’s where problems are discovered, and solutions are born.

Taking Responsibility Means Understanding That Your Actions Can Make a Difference

October 29, 2020 By Nagesh Belludi Leave a Comment

When problems unfold, leaders often look for ways to absolve themselves of responsibility—especially if they stand to lose face, favor, standing or will incur someone’s wrath.

Problems don’t simply just go away if un-addressed. They fester. They get worse. Then they blow up.

Taking responsibility means being there and facing the consequences, rejection, or revelation of ineptitude or weakness.

Leading authentically starts with being in charge. It refers to taking responsibility for the plans and actions that occur under your watch. (If you want to split hairs, glance at my explanation of accountability v responsibility.) Consider Captain Sullenberger, pilot of the Flight 1549 that crashed into New York City’s Hudson River. Even after he realized that the plane was in one piece after hitting the water, he worried about the difficulties that still lay ahead. The aircraft was sinking: everyone had to be evacuated quickly.

The Buck Stops with Leaders

As entrepreneur and venture capitalist Brad Feld emphasizes here, being responsible is one of the most admirable traits of an effective leader:

Many of the strong CEOs I work with owned whatever was going on at their company. There was simplicity in this—no blame, no excuses, no justification. They just took ownership.

When I step back and ponder this, the CEOs I respect the most are the ones who take responsibility for the actions of their company. Good or bad, successful or not, they don’t shirk any responsibility, blame anyone, or try to make excuses. They just own things, and if they need to be fixed, they fix them.

Idea for Impact: Taking Responsibility is Empowering

Ignoring a problem and passing blame is negligent.

The most effective leaders I’ve known have the humility and the courage to acknowledge when there’s been a mistake under their watch, avoid blaming others or the circumstances, and aspire to make amends or learn from their failures.

Often, individual action is the only real way to recognize and solve problems. Take ownership now.

Lessons from Toyota: Go to the Source and See for Yourself

October 8, 2020 By Nagesh Belludi Leave a Comment

Firsthand, on-the-frontlines observation can offer critical insights that facilitate informed—and inspired—decision-making.

The Japanese approach to problem-solving calls this Genchi Genbutsu (literally “go and see for yourself.”) Sometimes called “get your boots on,” it’s not unlike the notion of management by walking about (MBWA.)

Genchi Genbutsu Refers to a Disposition Than a Specific Action

Genchi Genbutsu is rooted in the idea that any report, say, about a problem on the shop floor, is an abstraction. It’s separated from its context, and therefore generalized and relativized.

Secondhand information tends to misrepresent reality enough to give you a false sense of conviction. The only real way to understand a problem is to see it on the shop floor and get the full breadth and depth of information to make the right decision.

For that reason, any solution concocted at headquarters, where the report is received and the problem diagnosed from a distance, is doubly abstracted from the source.

Genchi Genbutsu isn’t a license for management interference, but to understand the problem, unearth the root cause, and help those doing it to resolve the issue.

Genchi Genbutsu Case Study: Toyota Sienna and the 53,000-Mile Roadtrip

When Yuji Yokoya was appointed the chief engineer for the 2004 Toyota Sienna minivan, he had never designed a vehicle purposely for the North American market. He traveled 53,000 miles across North America to monitor and discover what was wrong with the previous Sienna models. He drove the Sienna and competitor’s minivans through every state in America, every province in Canada, and every state in Mexico. in February 2003, Forbes noted,

In Memphis, Yokoya’s minivan was blown into the next lane crossing the Mississippi from Tennessee to Arkansas. Fix: Yokoya reduced the van’s wind resistance by narrowing the gaps between panels and adding plastic shields under the wheel wells to redirect air.

In Yukon Territory, road noise on the Alaska Highway prevented conversation between the driver and rear passengers. Fix: Yokoya stiffened undercarriage to reduce twisting and added sound-dampening material to the frame.

A culture of on-the-spot problem solving is so ingrained in the Toyota culture. According to company lore,

In the mid-’70s, Toyota had just introduced a four-speed automatic transmission. It was very unusual to have an automatic transmission fail, if ever. It seemed indestructible. When Dr. Shoichiro Toyoda [scion of the founding family and chairman of Toyota 1992–99] visited a dealership, the dealer complained that a car just came in with a transmission that had failed. Dr. Toyoda, in his pressed suit, walked over to the technician, got in a dialogue with him, walked over to the oil pan where he’d drained the oil from the transmission, rolled his sleeve up, and put his hand in this oil, and pulled out some filings. He put the filings on a rag, dried them off, and put them in his pocket to take back to Japan for testing. He wanted to determine if the filings were the result of a failed part or if it was residue from the machining process.

Genchi Genbutsu Case Study: Medtronic and the Bloody Catheter

In the late ’80s, when Bill George became CEO of medical equipment manufacturer Medtronic, he discovered that its catheter sales weren’t good enough. His engineers had said the product was first-rate and improving.

When George visited an operating room to observe a surgical procedure, Medtronic’s catheter fell apart in the surgeon’s hands as soon as he inserted the balloon catheter into the patient’s femoral artery. The surgeon extracted the catheter from the patient. In a fit of rage, he hurled the blood-spattered device across at George, who ducked to avoid injury.

This “Bloody Catheter” incident helped Medtronic fix faulty products and spurred a thorough overhaul of Medtronic’s engineering, sales, and problem-solving processes. George later recalled,

Field reports are a dime a dozen. There’s no emotional association with them. But when you’re in a medical environment like an operating room, all your senses-sight, sound, smell, taste-are working. It’s a totally different experience than reading a field report.

Idea for Impact: If you haven’t experienced something firsthand, your knowledge about it is probably suspect

Even in the information age, not all knowledge you need can be at your fingertips. Go to the source. Be where the action happens. Don’t forego the power of emotional input.

Power Inspires Hypocrisy

July 27, 2020 By Nagesh Belludi Leave a Comment

Mark Hurd, whom I featured in Friday’s article, was one of the most respected and eminent leaders in Silicon Valley until his mighty fall following his dalliance with a contractor during his time as CEO of Hewlett Packard (HP.)

Hurd had hired this contractor, a glamour model, as a “hostess” for “executive summit events,” even at out-of-town places where there is no HP event, but Hurd happened to be.

Hurd was ultimately exonerated of violating HP’s sexual-harassment policy (nothing was consummated with the contractor, and Hurd settled with the accuser for undisclosed terms) but he was officially charged with drumming up expense reports.

Hurd walked away from HP with a $34 million severance package. Almost immediately, he became co-president of Oracle, earning $11 million a year and options.

Much has been speculated about the real reasons HP’s board gave Hurd the boot, especially considering that he probably falsified his just an expense report just the once. Even then, said expenses were petty compared to the massive turnaround he had engineered at HP after walking into a very troubling situation. Hurd was famed for his no-nonsense management style and for finagling a culture of operational excellence at HP.

When the Hurd controversy broke out, Wall Street Journal’s Jonah Lehrer argued that when nice people rise to positions of power, “authority atrophies the very talents that got them there.”

The very traits that helped leaders accumulate control in the first place all but disappear once they rise to power. Instead of being polite, honest and outgoing, they become impulsive, reckless and rude.

Contrary to the notion that nice guys finish last, research shows that the surest way to accumulate power is to do unto others as you would have them do unto you.

But once nice guys reach the top, the headiness of wielding power causes them to morph into a very different kind of beast. They lose their ability to empathize with others, especially lesser mortals, and ignore information that doesn’t confirm what they already believe. Most tellingly, perhaps, they learn to excuse faults in themselves that they are quick to condemn in others. That’s not to say that every CEO is a secret villain. But even the most virtuous people can be undone by the corner office.

Idea for Impact: Power can become an enabler of corruption, deceit, and hypocrisy. People in positions of power have incentives to hold others to strict account for their behaviors even as they themselves act up, especially when the odds of being caught and punished are slim.

Leaders Need to Be Strong and Avoid Instilling Fear

July 14, 2020 By Nagesh Belludi Leave a Comment

Fear is many a leader’s dirty little secret. He can use it when he’s either unwilling or unable to persuade his team to work together to achieve a specific goal.

Sure, fear gets results. However, it does so at a great cost.

Fear can be enormously helpful for spurring change, particularly during periods of acute threat. But fear can backfire under certain circumstances, especially when creativity is necessary. Using fear and intimidation as a motivator only shuts down people’s brains.

People don’t always think and act rationally when they’re afraid. Fear and anxiety make it more difficult to have their energy and enthusiasm to keep going.

A leader needs to be strong without instilling fear. Often all a leader can do to motivate people is to foster a workplace wherein people feel safe bringing themselves to work.

People can contribute, be creative, and be motivated internally. There’s no need to watch them like a hawk, micromanage excessively, track every move they make, question every decision, or enact rules that make people feel constrained and under surveillance.

Idea for Impact: Steer clear of a tyrannical management style. Use feedback and coaching to be considerate and encouraging whenever you can be, and tough when you must be.

A Superb Example of Crisis Leadership in Action

May 4, 2020 By Nagesh Belludi Leave a Comment

It is in a crisis that leaders show their mettle. The New York Times notes,

The master class on how to respond [to a crisis] belongs to Jacinda Ardern, the 39-year-old prime minister of New Zealand. On March 21, when New Zealand still had only 52 confirmed cases, she told her fellow citizens what guidelines the government would follow in ramping up its response. Her message was clear: “These decisions will place the most significant restrictions on New Zealanders’ movements in modern history. But it is our best chance to slow the virus and to save lives.” And it was compassionate: “Please be strong, be kind and united against Covid-19.”

Our political leaders’ responses to the current COVID-19 crisis are particularly instructive about how leaders should act in a crisis:

Lead from the front. Initiate quick, bold, and responsible action, even when it carries political risk. Don’t be overcome by panic.
Think the crisis through. Weigh your options carefully, and then make the call confidently. Stay focused. Don’t let stress impede your problem-solving capabilities.
Avert an information vacuum. Any gap in the available information will be filled by guesswork and speculation.
Provide an accurate picture of what’s going on. Be transparent and honest right from the beginning. Acknowledging the gravity of the situation and being clear about how you’re going to collectively address the crisis leaves your constituencies with a sense of confidence in your message.
Choose your words carefully. Don’t create a false sense of security. Avoid making throwaway comments that might be misconstrued.
Communicate often. Fine-tune your message. Update your analysis and reaffirm your assurance of support. Keeping everyone in the loop diffuses fears and uncertainties.
Empower employees to be part of the solution. Invite and respond to employees’ feedback and concerns. They’ll need to know they’re being heard.

Idea for Impact: When a crisis hits, constituencies fall back on their leaders for information, answers, confidence, and direction. Set the appropriate tone for the organizational response by being supportive, factual, transparent, open-minded, calm, and decisive.

This is Not Responsible Leadership: Boeing’s CEO Blames Predecessor

March 12, 2020 By Nagesh Belludi Leave a Comment

In January, Boeing’s former Chairman, David Calhoun, became CEO after the board fired Dennis Muilenburg. Less than two months later, in a New York Times interview last week, Calhoun blamed Muilenburg for the misfortunes plaguing Boeing:

Asked why he wouldn’t give up his salary (he gets a $7 million bonus if he can get the 737 MAX back into the sky) in light of the 737 MAX-related woes, Calhoun declared, “… ’cause I’m not sure I would have done it [taken the job without a salary].”
On Boeing’s systemic culture problem (a steady trickle of revelations has exposed software problems and corners being cut in the engineering and certification processes,) Calhoun characterized the contents of the leaked emails as unacceptable but also downplayed the issue: “… I see a couple of people who wrote horrible emails.”
Calhoun has been on Boeing’s board since 2009. While the MAX crisis snowballed and Boeing’s crisis management went from bad to worse, Calhoun took over as the board’s chairman. In that capacity, he fully endorsed Muilenburg saying, “from the vantage point of our board, he has done everything right,” “he didn’t create this problem,” and “shouldn’t resign.” Now, in the last week’s interview, Calhoun had a different take: “Boards are invested in their CEOs until they’re not. We had a backup plan. I am the backup plan.”
Acknowledging that Muilenburg boosted production rates before the supply chain was ready, Calhoun declared, “I’ll never be able to judge what motivated Dennis, whether it was a stock price that was going to continue to go up and up, or whether it was just beating the other guy to the next rate increase. If anybody ran over the rainbow for the pot of gold on stock, it would have been him.”

Calhoun and the rest of Boeing’s board of directors were part of the context right from the outset. The roots of Boeing’s current crisis embody decisions made by the company’s leadership over a decade and fully sanctioned by the board. The board is wholly accountable for everything that happens under its authority.

Idea for Impact: Blame is an Accountability Killer

This is not responsible leadership. A true leader doesn’t pass the blame for failure but graciously accepts responsibility for the problems he inherited. Even though Boeing’s lapses may not be traceable directly to him in his capacity as a member of the company’s board, Calhoun should have acknowledged his—and the rest of the board’s—failing to keep an eye on Boeing’s leadership team over the last decade.

Leading with integrity means taking personal responsibility. It’s tempting for people to take flight and avoid the personal consequences of what happened, to reject personal responsibility, and to pass the blame on to other people.

Calhoun could have acknowledged that the board’s actions had a role in the situation. By facing up to these criticisms and admitting that Boeing and it’s board could have done things better, Calhoun could have encouraged others at Boeing to do the same, especially considering that he must overhaul the company culture from the top down.

The Poolguard Effect: A Little Power, A Big Ego!

February 24, 2020 By Nagesh Belludi Leave a Comment

Even Petty Power Corrupts: Authority Can Warp Behavior

The Poolguard Effect: A Little Power, A Big Ego! Ever wonder why some folks with a little authority, but not much real status, tend to throw their weight around? They often become overconfident, controlling, and bossy. This phenomenon, known as “hubris syndrome,” can lead to micromanaging, unnecessary rules, and a real disconnect from the people around them.

Even in lower-level jobs, you can see these power trips in action. For instance, rub a TSA agent the wrong way, and you might get flagged for extra screening. Summer pool guards can be overly strict with kids and parents who don’t show them the proper respect. In bureaucratic offices, clerks and supervisors frequently impose petty rules just to flex their authority.

These power trippers rely on control to boost their fragile egos. Power tends to amplify self-importance, making people more likely to act in a domineering way—something we often sum up with, “power corrupts” or the “authority bias.

Power Increases People’s Sense of Entitlement

This anecdotal observation is backed by a study titled “The Destructive Nature of Power Without Status.” The researchers argue that neither power nor low status alone leads people to mistreat others; it’s the combination of the two that increases the likelihood of abuse.

We predicted that when people have a role that gives them power but lacks status—and the respect that comes with that status—then it can lead to demeaning behaviors. Put simply, it feels bad to be in a low-status position and the power that goes with that role gives them a way to take action on those negative feelings.

One way to prevent these toxic power dynamics is to ensure that everyone feels respected and valued, regardless of their role. According to the study, “respect assuages negative feelings about low-status roles and encourages positive interactions with others.” In other words, courtesy pays off!

Notes

Some people despise anyone they suspect is trying to pull the strings or exert power over them.
Consider the 1971 Stanford Prison Experiment, where a group of students was assigned roles as either prisoners or guards in a simulated prison. Despite knowing they were part of an experiment, the “guards” subjected the “prisoners” to humiliating treatment. According to the researchers, this behavior stemmed from the guards’ desire for respect and admiration, which they felt was lacking in their interactions with others. This controversial experiment was later depicted in a 2015 docudrama.
This concept can be compared to the Napoleon Complex, where shorter men may overcompensate for their height through social aggressiveness, despite the fact that Napoleon himself was not actually short.
Cf. The “Waiter Rule” states that how you treat seemingly insignificant people says a lot about your personality and priorities.

The Best Leaders Make the Complex Simple

February 17, 2020 By Nagesh Belludi Leave a Comment

The New York Times‘s Adam Bryant interviewed 525 CEOs for his Corner Office column and compiled two excellent books, The Corner Office (2012) and Quick and Nimble (2014,) on leadership and management advice. Foremost among the themes common with successful leaders, Bryant says, is “a simple mindset”—the ability to synthesize the simple from the complex and create organizational priorities.

There’s a really important quality [in great CEOs] that I call a “simple mindset,” which is the ability to take a lot of complicated information and really boil it down to the one or two or three things that really matter, and in a simple way, communicate that to people.

In big organizations—frankly, in any company—there are always a dozen or more competing priorities. And it is the leader’s job to stand up in front of the troops and say, “These are the three things that we are going to focus on this year,” or “These are the goals and this is how we are going to measure them.” If you really want to galvanize people and get them operating as a team, you’ve got to create a simple scoreboard that everybody understands.

The communication style, to me, is secondary to getting the content right. And what I’ve been so often impressed by is leaders who can essentially boil down the company’s goals and operating model into, literally, less than a page.

This is a real trick to leadership—creating a simple structure so that everybody in the organization can understand how the work they are doing contributes to the broader goals.

Rob Andrews, CEO of the executive headhunting firm Allen Austin, underscores this “boil the complex into the simple” approach in his leadership manual, High-Performance Human Capital Leadership (2015,)

I have found that when I go into a company to lead, it is important to have a plan and to make that plan a simple one that everybody can understand. I am constantly asking the question,—What are the two or three levers that, if done right, if pulled correctly, will really turn this business? What are the two or three things that really matter? And I find that most leaders do not really do that often.

Idea for Impact: One of the essential attributes of a modern leader is the ability to cut complexity everywhere. Develop the ability to take large, complicated things—and information—and make them very simple.

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Leadership

Wondering what to read next?

Idea for Impact: The frontlines offer leaders unfiltered information

Wondering what to read next?

The Buck Stops with Leaders

Idea for Impact: Taking Responsibility is Empowering

Wondering what to read next?

Genchi Genbutsu Refers to a Disposition Than a Specific Action

Genchi Genbutsu Case Study: Toyota Sienna and the 53,000-Mile Roadtrip

Genchi Genbutsu Case Study: Medtronic and the Bloody Catheter

Idea for Impact: If you haven’t experienced something firsthand, your knowledge about it is probably suspect

Wondering what to read next?

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Idea for Impact: Blame is an Accountability Killer

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Even Petty Power Corrupts: Authority Can Warp Behavior

Power Increases People’s Sense of Entitlement

Notes

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