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How Not to Succeed in Business
The new administration just broke three cardinal rules of leadership.
It used to be that you heard the lament, "If only government could be more like business…."
Those days are over—and how.
But if last week in Washington is any indication, government doesn't yet have a lock on the kind of effective leadership that characterizes business at its best. Consider just a few key events: The Treasury Department bemoaned the complexity of the problem it was supposed to be solving. The vice president announced that every government plan has a 30% chance of failure. And the president tried to thread the needle between lambasting the past, like a candidate on the campaign trail, and heralding the future, like an elected leader with a vision.
Politics as usual? Absolutely.
But an example of how to build confidence and motivate people? Not exactly. In fact, the behavior in Washington last week could be organized into three lessons of how not to succeed in business.
• First, business leaders gain nothing by showing uncertainty and indecision.
Look, every leader grapples with a monster of a challenge at some point or another. And every leader in such a predicament feels unsure of direction and overwhelmed by complexity. That's only normal.
What's not normal—or what shouldn't be in business situations—is taking those feelings public. As a leader, your job is to steer and inspire. That's why when a difficulty arises, the first thing you need to do is to huddle with your trusted advisers and wrestle the challenge to the ground. Probe it. Debate it. Work it over for everything it's worth, and when you've gone as far as you can with the available information, formulate the best plan to move the business forward.
Then—and only then—should you speak out. Then and only then will you have the ability to communicate as a leader must, with the message: "Here's what we're going to do and why. Here's what's in it for you, and here's what we're going to look like when we get to the other side."
Such an approach isn't hiding anything, by the way. Your people know perfectly well how complicated the situation is; they don't need or want you to tell them. They need and want you to do your job, by finding the solution, explaining it, and energizing everyone to execute it successfully.
• Second, business leaders undermine success by talking about the risk of failure.
There was a stunning moment in Katie Couric's interview last week with Chesley "Sully" Sullenberger III, the pilot who landed Flight 1549 in the Hudson River. Asked if he was afraid at any point of "not making it," Sullenberger simply replied: "No, I knew I could do it."
Obviously, with all his years of experience, Sullenberger knew the enormous risk of a water landing. And yet he showed the best kind of leadership by putting himself in a can-do mindset. Business leaders also know that any strategy they adopt holds the risk of failure. But why go there? You're only practicing "CYA management" by harping on the chances things won't work out. Equivocating enervates everyone. Your team won't give its all if it senses you're prepared to say, "Well, I told you it might not work out." They know you can't win unless the leader believes you can.
• Finally, business leaders cannot indulge bureaucratic data dumpers.
Part of a leader's job, of course, is to act as a sounding board for direct reports. But if you want to build leadership in your ranks, make sure your managers don't bring you stacks of PowerPoint slides describing their problems in bone-crushing detail. Demand that they sort through the data with their team and deliver a decision with their rationale for it in unambiguous terms.
The reason is simple. If you've got a manager working for you who is paralyzed by information, options, and obstacles, you can be sure his people are confused and demoralized. And the only way to break that cycle is by not tolerating leaders who obfuscate with data to avoid taking action.
Our purpose is not to haul out the old "if only government were more like business" line. Rather, our message is for leaders who, with the new business-is-out mentality, might be thinking about taking their cues from government. Given recent events, we can only advise: Vote no.
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throck
Jack,
The one thing this article doesn't take into account is that the American people have had a non-communicative president that made decisions in a vacuum with his brain trust and move forward with these decisions with utter arrogance and disregard for how the public viewed them.
We as citizens have elected the current administration and with that tacitly acknowledged that we want to be communicated to, that we want a voice in the decision making process and that we want transparency into how those decisions are ultimately made.
Most Americans also realize that times are different, that there are no silver bullets and that the present administration has its hands full trying to fix 8-years of mismanagement, bad decisions and general ineptitude. For them to communicate anything less than a sense of uncertainty would be disingenuous.
We now live in a world that is moving towards openess and transparency. Where the old, "here's how we're going to do it" approach is no longer the norm and where the average person is intelligent and informed enough to see through bold statements and proclamations.
I like the approach. Give it to me straight, don't overpromise and underdeliver and let me do my part and I'm happy.
vankuyk
Old School rubbish, Mr Welch used to be my hero in the 1980's; must be getting old.
penscott
Obama is busy making excuses to the public to protect himself from blame in case his plans don't work. "Yes we can" of the campaign has morphed into "Don't expect too much of me."
"Choose hope over fear" has morphed into "We're in a terrible crisis! Catastrophe threatens."
This is leadership?
Swick2730
First they say it's politics as usual, then they say that Obama is talking about the reality of our terrible economy. Shame on him for telling us the truth and not misleading us like his predecessor(though I agree Biden is a doofus). Obama should just sit back like the Republicans are telling us to do, cut taxes, and wait for the business leaders to dig us out of the hole they got us into. That's business as usual unless you weren't paying attention the last 8 years.
MarineLtCol
Mr. Welch - Give it up. When the Beast posted the article about Obama's first press conference, I suggested that he needed to learn the basic leadership principle (that any Marine would know) that you establish a realistic assessment of the situation and then get your "troops" fired up to overcome any obstacle in order to accomplish the mission. You know, optimism, positive reinforcement, a "can do" attitude, confidence in your success, etc. etc. I was lambasted by every euphoric Obama supporter on the board as they actually tried to say that he is the most brilliant leader in history because he "tells it like it is" and isn't a "cheerleader". The problem is, basic leadership principles dictate that you follow up your gloomy outlook with the "ok, here is how we are going to defeat this problem, and it's going to work!"
This is the problem with choosing our leaders from the realm of academia or the legal world (both conservative and liberal). Yes, they may speak well and be smart, but they have to learn how to actually lead people. Talk about a poor venue for on-the-job leadership training.
MareeHarris
I would like to think that the present global economic crisis would be leading us to see that we need new styles of leadership and leaders who will ask new questions and so get new and different answers. I believe we have a leader like that here in Australia in Prime Minister Kevin Rudd and the USA has also in President Obama someone with a new vision and direction for America and the world. Last week here in Australia I took part in an interview on Engaging Employees in Turbulent Times (http://www.peopleempowered.com.au/employee-engagement-turbulent-times) where we were calling for CEOs to handle the crisis in a new way. We were suggesting that instead of doing what Jack Welch says above and acting out of a very hierarchical leadership model, that instead they engage their employees in meeting their new agenda. Instead of immediately resorting to downsizing their organizations, to instead invite their people to work WITH them, not just FOR them through this turbulent time. Instead of a them/us organization and leadership style, to create a much more collaborative model. CEOs could draw up a new psychological contract with their employees - we will look after you in these tough times, if you look after our organisation. CEOs who are able to meet their people at this level are not,as Jack Welch fears, going to be seen as not measuring up, as lacking in leadership. Quite the contrary, they may well be seen as great leaders and their people may well respond with greatness and their organizations may not only survive but thrive..
genoftheheart
Yes, that's exactly what Obama needs is a management seminar spewing lofty platitudes about leadership and solutions. What exactly is the solution to a global economy in collapse due to incalculable trillions of dollars of debt? Or should I say the value-added solution? Just a tad superficial and trite.
Thank you.
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