(Part 2)
My last “Rounding Third” invites inquiry into what should be covered in a leadership development program. The following elements come to mind. I believe that, taken together, teaching these elements will equip leaders to create organizational value.
Organizational Elements
First, managers need to understand the very essence of their organization. I used to carry my employer’s mission statement in my wallet. Managers should know what the mission is, how it originated, why it is important and how it integrates into the organization’s business model. They should understand that missions change over time for many reasons (e.g., transformative technology advances, changes in government funding priorities). The IBM of today is far different from the IBM of yesteryear.
Values were written right below the mission statement on my wallet card. Organizational values link to mission. Example: “we honor the dignity of our patients”.
The business purpose of a for-profit company is to acquire, grow and retain customers at a profit. This purpose supports its mission, and the mission in turn informs the organization’s purpose. Strategic plans, product and service offerings, customers and how the organization goes about making a profit may change over time as the business environment changes. Sometimes, the environment changes so radically that the company’s mission itself is altered. However, the underlying purpose is unchanging: it’s always about getting, retaining and growing a customer base in a way that makes money.
The business purpose of a non-profit organization has a different spin, but it too doesn’t change. The people served by a non-profit (referred to as “clients”, “patients” or some other term usually preferred over “customers”) and how they come to the organization (how they are “acquired”) may change over time (e.g., the needs may change, the needs may be met in new ways or the government changes the way it covers needed services). Again, the changes may be so significant that the organization’s very mission must be revised. But, the unchanging organizational purpose of a non-profit is to offer services which meet client needs, serve as many clients with those needs as is feasible and grow those services (or refer the clients to other organizations) if their needs aren’t being met. Instead of doing this to turn a profit, non-profits strive to do this on a sustained basis. It’s the old adage: no money, no mission.
A consultant friend used to say that an organization’s vision (sometimes confused with its mission) is that one big goal “you can recite at gunpoint”. JFK’s classic space vision 50 years ago was to “put a man on the moon by the end of the decade”. A vision, once achieved, will give rise to a new vision as the organization’s strategic plan changes over time.
Good leaders translate mission, values, purpose and vision into value-creating action. They deploy best practices for strategic and operational planning, implementation and organizational effectiveness. And, they create a motivating culture of success.
Leaders keep things simple. Whatever one may think of his politics, Ronald Reagan was known for consistently and effectively championing and communicating a few simple themes. He didn’t get lost in the details.
Relational Elements
Leaders master the art of relating well to others to create organizational value.
They manage effectively up (to senior executives), laterally (to peer managers), down (to their direct reports) and outside (to business partners).
They know how to build and run teams and design workable processes for teams to get things done.
As influencers and negotiators, they put themselves in the shoes of other people to understand their motivations and expectations.
Leaders look for win-win relationships where both parties create value together and compromise for the greater good. Compromise involves giving something up. In win-lose relationships, one side must always win. That may pay off in the short run, but the loser is left hurt with a bitter memory that come back to haunt.
Personal Elements
Effective leaders are “all about” the organization rather than themselves.
Strong leaders demonstrate by word and actions genuine personal values of humility, fairness and caring for others in their dealings with employees, board members and business partners.
They have a value creation mindset fueled by life-long learning and curiosity.
I remember a United Way leadership seminar called “Leaders Lead”. I took it to mean that leaders are decisive. They take prudent risks. They tackle the tough issues others ignore at their jeopardy.
One of my favorite football slogans is “when the going gets tough, the tough get going”. Today we say leaders have grit and resilience.
Finally, leaders are healthy. They take care of their personal selves.