GUEST POST from Mike Myatt

I have read a tremendous amount of information over the last several months on the topic of toxic work environments. While these articles tended to stir the pot a bit, they were in my opinion mostly missing the mark. The articles should have been written on the topic of poor leadership. Toxic work environments can only exist where a lack of trust and respect are present, and this can only occur in the absence of sound leadership. Let me be as clear as I can – the phrase ”toxic work environment” is code for bad leadership, because a toxic culture simply cannot co-exist in the presence of great leadership. In the text that follows you’ll find the truth about toxic cultures…

A toxic work environment thrives off of everything that great leadership stands in opposition to. The fuel for toxicity is conflict not resolution, ego not humility, self-interest not service above self, gossip & innuendo not truth, social & corporate climbing not team-building, and the list could go on.

It’s also important to understand that a toxic culture cannot exist if toxic people are not allowed to take up residence. This is why a value based approach to recruiting is a key component when teaming-out the organization, and is especially important as you build a senior leadership group. Those team members who share the same core values will be predisposed to trusting one another at high levels. Those team members who share a commonality of core values will automatically assume “best intentions” in one another vs. assuming “worst intentions” or “motives/agendas.”

From my perspective there is no such thing as a toxic asset. Here’s the thing – leaders who allow toxic personalities to invade their culture put the health of their entire organization at risk. Toxic personalities will put a damper on morale, attempt to intimidate and/or manipulate co-workers for personal gain, and can even chase away a company’s best talent. Bottom line – toxic individuals kill productivity, and if allowed to run unchecked can have a much broader and deeper impact on an organization than one might think.

A bad attitude isn’t something good leaders take lightly. Smart leaders see themselves as protector of culture, defender of those under their charge, champion of brand, and steward of trust. Great leaders simply won’t tolerate a toxic team member – the risks are too great. Real leaders will quickly coach toxic team members to a healthy place, or show them the door – there is no third option.

So, what do you do if you’re not in leadership and find yourself in a toxic work environment? From my perspective you have three choices: First, don’t get sucked down into the toxicity – it’s bad for your health. Secondly, assess whether or not there’s anything you can realistically contribute to making an impactful change, and do it. Thirdly, If you cannot help to create positive changes then get out as quickly as you can. The good news is in most cases poor leadership will eventually cause it’s own demise. I’ve often said that leadership not accountable to its people, will eventually be held accountable by its people.

As always, I welcome your comments below.

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GUEST POST from Mike Myatt

Why Pricing Matters

by Mike Myatt

Are you shooting yourself in the foot with your pricing strategy? How much is your time worth? What does your pricing say about your personal or corporate brand? Do you have a pricing strategy, or do you set your prices by some ethereal or arbitrary method? Even though I believe issues surrounding pricing decisions are root level drivers to a successful business strategy, I never cease to be amazed at how many corporations and professionals seem to pull their pricing out of thin air. Moreover, of those that actually go through some form of disciplined process, many of them seem to believe that once they have set the initial pricing their job is finished – nothing could be further from the truth. In today’s post I share my thoughts on how to develop a sound pricing strategy…

While the topic of pricing is certainly not rocket science, it has indeed been a thorn in the side of business people since the dawn of commerce. It has definitely caused its fair share of angst, frustration, and vigorous debate among executives and professional advisors simply for the reason that it is one of the few metrics that touches virtually every aspect of a business. Pricing impacts everything from strategy and tactics, to finance, to branding, to marketing and sales, to vendor selection and supply chain management, to recruiting and compensation, and to customer satisfaction and loyalty. As mission critical as pricing is, it is also one of the most often undervalued and overlooked business disciplines.

A recent trend which demonstrates that corporations have recognized the need for specific domain expertise in pricing is the emergence of a bevy of C-level positions charged with direct leadership over strategic pricing. It is no longer uncommon for me to see a chief revenue officer or chief pricing officer joining the ranks of executive teams. Moreover, in absence of a specific headcount assignment tied to pricing, other C-suite officers are starting to take ownership over pricing as a key business driver.

Think about this – why is it that some attorneys have difficulty justifying $70 dollars an hour, and others can command $900 dollars and hour? Why do some products have a large backlog of orders at premium prices, while others struggle to get any traction at discounted price points? Why will someone pay $30,000 dollars for a Rolex, but feel a Timex isn’t worth more than $50 dollars? Why do some consultants get $50,000 a day for their time, while others have to give their time away? While I could continue by citing other examples of pricing discrepancies my guess is that it is not necessary…not only will the following points provide some insight into answering the aforementioned questions, but they are also the main items that should be considered when evaluating your pricing strategy:

1. Cost: Any evaluation of pricing should begin by having a firm understanding of what it costs to provide your product or service. If you don’t have a handle on all direct and indirect costs then how can you possibly even begin to understand whether or not your pricing will be profitable? By the way…if you forget to factor in cash flow in your considerations you’ll be very sorry.
2. Methodology: You do have a choice…Moreover most successful pricing models offer a variety of options. Flat rate pricing, subscription based pricing, cost plus pricing, ala carte or menu based pricing, retainer based pricing, volume pricing, incentive pricing, discount pricing, percentage pricing, performance pricing, value pricing, risk transfer pricing, venture pricing, relationship pricing, bundled pricing, hybrid pricing structures, and any number of other options abound. The use of solid research, segmentation, and sound business logic in the engineering of your pricing model will pay long-term dividends. Avoid arbitrary or static percentage increases in pricing that do not take into account current market dynamics and trends. Where possible all pricing should be subject to nuanced considerations.
3. Brand: Pricing most certainly plays into brand perception, and the strength of your brand (or lack thereof) will most definitely impact your pricing. Does your brand command a pricing premium, or force you into being a low cost provider? By the way, one strategy isn’t necessarily better than the other. However it is never a good thing to be forced into a low cost position.
4. Competition: Does your pricing place you at a competitive advantage, or disadvantage in the market? While I always recommend understanding competitive pricing models, it is rarely a good idea to drive your pricing model using this as a sole point of consideration. What is more important than the actual price point in relationship to your competition is whether or not you can justify whatever position you adopt.
5. Market Demand: Put simply, the market is what the market is. Do you know how big your market is or isn’t? The reality is that there is no limit on the upper-end of pricing until the market places a cap on it. That said, at some point the market will eventually determine the top-end of the pricing scale for any product or service. Supply and demand will perhaps impact pricing as much as any other given market force outside of value creation.
6. Consumer Emotions: The emotional impact surrounding the delivery of your product or service will have a powerful impact on pricing. The law of scarcity, the principle of exclusivity, the perception of value, or creating a sense of urgency can all create pricing premiums. Catering to the emotions of fear, greed, ego, pride, lust, envy, loneliness, safety and any number of other emotions will impact what can ultimately be charged.
7. Value Creation: In my opinion this is the most important consideration of all. It doesn’t matter how low your price is if there is not just perceived value creation, but real value creation. Creating real value is not only incumbent on the corporation or service provider, but it is value creation that creates brand loyalty and determines the sustainability of the product or service offering. Pricing only becomes an issue when you cannot justify it. Better yet, pricing is a non-issue when it justifies itself.

Now that I’ve shared my thoughts on pricing, I’m literally going to put my money where my mouth is by slaughtering a sacred cow – I’m going to share what I charge my clients. I’m making this disclosure for no other purpose than to demonstrate there is no reason to fear pricing transparency as a professional. I don’t really care what others charge for their time, and also don’t fear that discussing my rate somehow works against me. I’ve always wondered why so many professionals hesitate to publish their pricing. Do they have something to hide? Are they fearful of providing their competition with a pricing advantage? As I was thinking about why pricing is such a sacred cow, the more questions I asked myself in regard to pricing, the more I began to realize how large an issue pricing is for many professionals.

Before I get to the specifics of the numbers, I want to share a bit of background as well as some perspective on my thinking. Firstly, we have a number of different practice areas at N2growth and our pricing varies based on the products and services being offered. Therefore the pricing that I’ll be sharing today reflects what I charge for my personal coaching/consulting time. In determining what I charge I tend to take a more subjective approach that considers a broader range of evaluation points. I look at the complexity of the issue I’m addressing within a framework that prices for value creation, and then I adjust my pricing accordingly. That said, I rarely let price be the sole determining factor in whether or not I engage with a company. At this stage of my career I tend to look at the nature of the engagement more than I do my rate schedule. If I find a situation to be of personal interest, or consider the circumstance an intriguing challenge, I’ll normally find a way for a client to afford my services.

I don’t typically charge on a hourly basis but prefer to work on a contract basis. In most cases I work on a retained basis with monthly retainers ranging from $7,500 to well in excess of six figures based upon the scope of work and complexity of the assignment. That said, in some cases I’ve chosen to work for a substantially discounted rate where I found an interesting challenge and the opportunity to grow with a client. I also give a decent amount of my time away in our pro-bono practice. The reality is that I don’t really sell my time as much as I decide where and with whom I want to invest it.

While some people simply cannot wrap their minds around my pricing, others consider it to be a bargain. Could I charge more? Sure. Could I invest my time for less? Absolutely. Am I worth what my clients pay me? Clearly, or they wouldn’t pay it. Here’s the thing – for those that don’t understand what I do, or the value I create, I could cut my price by 2/3 and they still wouldn’t engage. The important thing is my price works for me, and it works for my clients. I don’t tend to spend too much time thinking about things outside those two measurement points.

Bottom line… pricing is not a taboo subject to be avoided, but rather a key metric that needs to be well understood as well as proactively measured and managed. Pricing needs to be dealt with in the most embryonic stages of strategic planning and needs to constantly be evaluated based upon changes in market dynamics.

Now it’s your turn – If you’re a professional services provider I invite you to share your rates, pricing philosophy, and the type of clients you serve below. It will not only be a good experience and a freeing endeavor, but who knows, you might end-up with a new client…

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GUEST POST from Mike Myatt

M&A Without Buying the Company

by Mike Myatt

Most people tend to look at acquisitions from a rather myopic and traditional M&A perspective: making a strategic or synergistic purchase of an operating entity on an accretive basis. However restricting your view of acquisitions to operating companies is like playing a football game with only one play in your playbook. The truth is that acquisitions aren’t just about buying companies, they’re about value creation. In the text that follows I’ll share 8 ways to acquire value without having to also buy the brain damage that comes along with purchasing the entire enterprise.

Understand the Play

With the right perspective, combined with knowing where to look, acquisitions can be extremely profitable while not being all that complicated. There’s an old saying that “one man’s garbage is another man’s treasure” and nowhere is this more applicable than in the world of acquisitions. Here’s the thing – the best acquisitions are made when the buyer sees value where the seller doesn’t. If your value-added acquisition targets can be found in things the seller has little interest in, there is a spectacular acquisition in the making. Want to see a transaction come together quickly? Allow someone to monetize on something they either view as an asset of little value, or better yet, something they view as a liability.

Acquiring Value Not Companies

I want you to think about acquisitions from this perspective – anything that has been well engineered or properly developed has also been heavily invested in. This often creates both tangible & intangible worth, even if someone else doesn’t currently recognize it or benefit from it. The simple truth is that it’s often much easier to acquire an asset than create one from scratch. This can occur because you’re leveraging the investments of time, money and efforts made by someone else who now doesn’t value them in the same fashion they once did. By stripping the target out as a stand alone asset you acquire the leverage of sunk investments which will often include significant good will, mindshare, marketshare and any number of other benefits in a much less complicated transaction.

While the text above discusses acquisition from the buy-side perspective, the logic should not be lost upon potential sell-side players. Those companies that have developed assets that they no longer value, or companies who are maintain unwanted liabilities should look into a valuation and consider a possible divestiture of said assets and liabilities that don’t fit into the company’s operating strategy going forward (where it makes economic sense to do so).

The following list contains eight representative examples of acquisitions that can be made without having to purchase the entire enterprise:

1. Talent – It is not at all uncommon for a company to undervalue, under compensate, or otherwise take its people for granted. An “at risk” employee for the current employer is an opportunity for the prospective employer. Even when a company highly values its talent there is no assurance that said talent feels the same way about its employer. The right talent acquisition can have a rather substantial and immediate impact on things like revenue, culture, positioning, brand, etc. Smart employers are always on the lookout for great talent. They also go to great lengths to guard against the unnecessary loss of their own talent. There is also a great opportunity for adding talent leverage via outsourcing, crowdsourcing, and other contract opportunities that provide cost savings and scale.
2. Intellectual Property – Whether it be formal IP such as patents, trademarks, copyrights, etc., or informal efforts produced via someone else’s R&D or innovation efforts, companies often start projects that they don’t finish. This can create an opportunity for the astute buyer. I have personally witnessed companies who have hundreds of pieces of intellectual property just sitting around collecting dust. I have also observed numerous transactions over the years that have been good for both buyer and seller. This occurred in instances where the seller was able to monetize on theoretical value, and the buyer was able to convert the acquired IP into real value.
3. Cash Flow – Many companies are in need of generating cash and simply cannot afford to wait for payments over time, and are therefore willing to sell contracts, notes, deeds, loans, leases, etc. In today’s market you can buy anything from a single note to an entire portfolio of debt (both performing and non-performing) at deep discounts. While this is not a market that everyone should dive into, there is substantial opportunity for exceptional returns for the right buyer.
4. Markets – Whether you purchase distribution, licensing, or other contractual rights, you can enter into market segments, verticals, or geographies via intelligent acquisitions. Often times these acquisitions can provide you some form of exclusivity or other form of competitive advantage.
5. Customers – Some of the most interesting acquisitions I’ve been a part of have resulted in the purchase of customer contracts. A contract is a commodity that has both tangible and intangible value (for the right buyer). Contracts can often times be purchased, assigned or otherwise transferred. All companies have contracts they don’t value at the level they once did. Many companies face changes in circumstances that make it difficult for them to continue to fulfill on their contractual obligations. Other companies are in need of cash and are willing to sell certain contracts as a financing vehicle. In other circumstances, you’ll find business that you can fulfill better, faster, and more cost effectively than the current provider creating an opportunity for arbitrage or even subcontracting.
6. Equipment – An unwanted piece of equipment owned by someone else can result in allowing you to enter a new market, increase your production capacity, or provide you the ability to win business from a potential customer whom you could not previously serve. Whether you purchase equipment directly from the owner, via auction, from a bank, receiver, trustee or other custodian, you can add significant value to your business through the intelligent purchase of equipment.
7. Brands – Real brands have real value…in fact recent studies confirm what many of us have known for quite some time, which is that brand equity can become one of the largest assets on a companies balance sheet and ultimately lead to increased valuations. That said, many companies have made substantial investments into brands that no longer fit into their operating strategy, or that for other reasons they no longer value to the extent they once did. It’s much easier to enter a market, or expand market share by acquiring a brand than creating one from scratch. Just because the current brand owner doesn’t value their brand equity, doesn’t mean that you shouldn’t.
8. Real Estate – While there are certainly exceptions to every rule, we are in the midst of the worst global real estate market in recent history. Valuations are down worldwide, so if you’re looking to expand manufacturing or distribution facilities now is the right time to acquire real estate. If you want to expand sales operations, but don’t want to acquire a building, fantastic sub-lease opportunities are available in virtually every market at deep discounts. Many companies are upside-down in their real estate holdings and are looking for someone to stop the bleeding for them. Likewise, the special assets and real estate owned groups within banks and financial institutions have a dearth of property that they are trying to liquidate. It is not uncommon to be able to purchase a property for less than the face value of the current debt owed.

Bottom Line

You don’t have to buy an entire operating entity to incorporate an acquisitions plan into your overarching business strategy. While the value of a component may not be as great as the overall value of the entity, this doesn’t mean that a component still doesn’t have significant value.

Thoughts?

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GUEST POST from Mike Myatt

Courage is a trait possessed by all great leaders. So much so, that leadership absent courage is nothing short of a farce. Let me be very clear – I’m not advocating for bravado, arrogance, or an overabundance of hubris, but the courage necessary to stay the course and to do the right things. Standing behind decisions that everyone supports doesn’t particularly require a lot of chutzpa. On the other hand, standing behind what one believes is the right decision in the face of tremendous controversy is the stuff great leaders are made of. I believe it was Aristotle who referred to courage as the first virtue, because it makes all of the other virtues possible.

It takes courage to break from the norm, challenge the status quo, seek new opportunities, cut your losses, make the tough decision, listen rather than speak, admit your faults, forgive the faults of others, not allow failure to dampen your spirit, stand for those not capable of standing for themselves, and to remain true to your core values. You can do none of these things without courage. Courage is having the strength of conviction to do the right thing when it would just be easier to do things right.

The best thing about courage is that a lack thereof can be overcome. Courage is teachable and therefore it is learnable – proof of this can be found in every instance of overcoming a fear. In short, courage isn’t a skill, it is a decision. Here’s the thing – we’ll all be remembered for the decisions we make or don’t make, and the courage we display or we fail to exercise. Leaders who consistently demonstrate courage will stand apart from the masses, and earn the trust and loyalty of those whom they lead. As a general rule, most people can be characterized by their courage or their lack thereof:

• In the corporate world those who demonstrate courage stand apart as innovators and opinion leaders, those who display a lack of courage are viewed as ”yes men” who are the politically correct defenders of status quo.
• In the military great courage is often referred to as heroism, while a lack of courage will brand you a coward.
• On the stage of world affairs those who display courage are statesmen, and those who don’t are politicians.
• In relationships courage will show you to be a trusted friend, whereas the absence of courage will reveal you as a gossip, adversary, or even enemy.

Each day brings with it a new set of challenges, and the best any of us can hope for is that we will have the courage and character to stand behind our personal beliefs and convictions regardless of public opinion or outcome. Courage will make you faithful, where a lack thereof will cause you to be fearful. Whether you look back on your personal experience or a greater historical reference, you’ll find it is always better to stand for courage than regret failing to do so.

Thoughts?

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GUEST POST from Mike Myatt

What is a key employee, and who is worthy of such a title? Much has been written on the subject of key employees, and in my opinion most of it flat misses the mark. In fact, I’ll go so far as to say that what most people refer to as key employees are not really assets, but rather large contingent liabilities. If you allow your organization to be held hostage by those employees who feel like they are indispensable, you are only exacerbating the problem. I’m not disputing the need to retain talent and reduce turnover, but I am vehemently disputing the conventional wisdom of how most businesses address the risk of managing key employees. In today’s post I’ll give you a fresh perspective on the age old dilemma of how to deal with key employees…

As a CEO or entrepreneur your problem with key employees begins the very second you publicly identify someone as such. In fact, I would go so far as to say the phrase key employee is an outdated, elitist term that creates angst and animosity among the ranks. Good leaders view all employees as key, and great leaders cause all employees to view themselves as key. The fact that you single out someone as a key employee to begin with means that at a minimum you have a lack of transparency and continuity in your organization, and more probably that you lack depth of talent and are weak in process and knowledge management.

How would you answer this question…Is your company talent poor and key employee dependent, or talent rich or key employee independent? From my perspective a superstar is not necessarily the same thing as a key employee…There is a monumental difference between real tier-one talent and a primadonna who thinks of themselves as tier-one talent. Employees who represent true tier-one talent see themselves as part of the team seeking to make those around them more successful. Contrast this with those primadonnas who are interested solely in their own success without regard to those around them. Any company that bestows a primadonna with recognition as a key employee is a company about ready to experience a completely avoidable disaster.

Over the years I have learned that no one, and I mean no one, is indispensable. A well managed company is not dependent upon the performance of any single individual. Those individuals who attempt to hoard knowledge, relationships, or resources to attain job security are not to be valued as key, but are to be admonished as ineffective and deemed a liability. Corporate talent that cannot be shared, duplicated, distributed, or leveraged is not nearly as valuable as talent that can.

If you want to eliminate dependency on key employees don’t allow any individual to create ultimate domain over anything that is considered key or mission critical. Instead create a culture that values transparency, knowledge management, mentoring, coaching, and process. By doing these things you will add both depth and breadth to your organization and increase the overall level of talent across the enterprise.

Thoughts?

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GUEST POST from Mike Myatt

I’ve always said that if you want to learn about leadership talk to someone who has actually led something. James (Jim) Quigley, Global CEO of Deloitte Touche Tohmatsu Limited is just such a leader, and the “something” he leads is a global professional services juggernaut with more than $26 Billion in revenue, and 170,000 people located in more than 150 countries worldwide. What I most appreciate about Jim is his almost evangelistic zeal in championing the Deloitte brand. Jim is a fully engaged CEO who leads by example. You’ll also find Jim to be among the most transparent CEOs you’ll encounter. If you don’t believe me just go looking for him – he’s not that hard to find. Jim has a new book out (As One), you can find him on Twitter @DeloitteCEO and Jim is a frequent presenter at conferences such as World Business Forum and the World Economic Forum in Davos. Enough with the background – on with the interview…

What does it take to be a CEO of a global professional services firm, and why should anyone be led by you?

CEOs today need to model and advocate mutual trust between employees and leadership. I believe that successful CEOs will be judged on long-term sustainable performance and the stewardship of their organization’s mission, rather than on short-term performance and results.

One of my main focus areas is to increase my leadership team’s ability to be effective. One way to achieve that is by respecting your people, helping them find their authentic voice and leadership style, and demonstrating a genuine advocacy of their professional development.

It is absolutely critical for leaders to lead by example and foster a culture of values and respect. If I empower my leadership team and instill the organization’s values in them, they in return will do the same with their teams. That’s why I spend a lot of time talking to my partners about culture and our values, and the importance of articulating a clear vision and strategy.

Your new book ‘As One’ is receiving rave reviews. What inspired you to author a book at this time?

I’ve been fascinated by leadership for a long time, and I’ve had the privilege to be in a leadership position for much of my career. Over the years, through my many conversations with C-level executives, it became clear to me that galvanizing large groups of people to work together toward a common purpose was not just a challenge for me, but it was a prevailing challenge for executive leaders.

The actual idea to write a book evolved from a conversation with Mehrdad Baghai, my co-author, where we realized that although we were thinking similarly about leadership, we were coming at it from two very different perspectives. Yet we both shared the belief that leaders from all walks of life are searching for a pragmatic and tested approach to help them realize the full potential of their people. That’s when we agreed that it was time to take a new look at collective leadership.

You say that ‘As One’ challenges conventional thinking with regard to leadership styles. Can you share your thoughts on this?

‘As One’ is unconventional in that it has brought about a much-needed depth to the way we classify different approaches to collective leadership. Historically, management theory has tended to present a binary view of leadership—command-and-control vs. collaborative. In reality, we discovered that there are multiple styles of leadership, some or all of which may lead to more effective collaboration, depending on the situation. As One provides a leadership discourse with a rich taxonomy that captures the distinguishing features of different leader-follower models. It is also an approach that is robust in its measurement elements and both actionable and adaptable to a wide range of leadership scenarios.

You talk a lot about collective leadership – why is this important?

Collective leadership is important because in a rapidly globalizing world where technological advancements are continually redefining how we do our jobs and how we interact with each other, it is no longer possible to assume that you have the full commitment and loyalty of your people. Today, more than ever, leaders need the full commitment and engagement of their people if they are to succeed in an intensely competitive world.

Collective leadership defines how individuals, leaders, and organizations need to interact to achieve common goals. By establishing a common framework for how to work together, leaders can achieve a productive and sustainable form of engagement, creating a culture where members choose to participate in and contribute to the organization’s performance.

How has social media affected you as a CEO?

Social media has created a number of opportunities and challenges for the business community, changing the way they communicate with their customers, suppliers, and employees.

As CEO, it is incumbent on me to understand and support the new and emerging ways our teams collaborate and communicate with potential talent, each other, thought leaders, business leaders, and all of our stakeholders. It starts with awareness—for example, Deloitte has the second largest corporate presence on LinkedIn—and then moves deeper, into strategy, execution, and measuring results.

Personally, my experience with social media took a step forward this year when I started my Twitter handle (@deloitteceo) to share some thoughts on topics that are important to me and our organization.

What has been the most difficult decision you’ve had to make as a leader?

One of the most difficult decisions the leadership team had to make was the decision to keep consulting as a service line at Deloitte when I was the CEO of the U.S. firm. The Enron scandal and the ensuing passage of Sarbanes-Oxley opened a new chapter in the accounting profession. One after another, our competitors began shedding their consulting arms due to limits placed on accounting firms’ providing consulting services to audit clients. For us, too, all signs pointed to a separation. But after a lengthy consideration, we made the difficult, strategic decision to keep consulting as part of Deloitte.

Looking back, we realize that we made the right decision. Today, consulting is a critical part of our business. Having a strong consulting practice enables us to recruit and retain diverse talent with varied expertise, which ultimately benefits all our business lines and enhances the value we deliver to clients.

What do you see as the primary role of a leader?

Leadership is an evolving discipline. Some believe leadership is about people, and leaders must develop people’s sense of belonging to their group and cultivate a strong shared identity among members of their group. Many think leadership is connected to productivity, and leaders must effectively coordinate activity so members of a group have a common interpretation about how to work together. Others think leadership is about purpose, and leaders should inspire commitment to drive people’s dedication to achieving defined goals with directional intensity.

I believe the primary role of a leader is to bring these three components together to help unleash the full potential of their people.

How has ‘As One’ affected you personally?

I’ve become an even stronger advocate of measurable data and actionable information. As One’s diagnostic provides specific metrics that leaders and organizations can assess, and the insight from this can be extremely valuable.

For example, ‘As One’ retaught me the dangers of making assumptions. In environments that appear to have common roles and large numbers of employees in common tasks, individual needs for how to be led differ. When leading large groups of people, leaders have to see the various ways their people are experiencing the environment today and understand how, given the opportunity, they would change that environment to make it be more conducive to their choosing to collaborate. Sometimes, this will involve epiphanies that can be summed up as “I was wrong about what I thought” or “my assumptions were incorrect.”

What are the biggest challenges you are facing as a leader today?

One of the key challenges I face today is maintaining our leadership position in the market. For example, to support our growth we are looking to hire 250,000 people to join our workforce over the next five years. I believe creating a uniform culture and aligning our people across borders, functions, and disciplines will be a critical component of our long-term success. That’s why I chose to invest in ‘As One’. I think through our ‘As One’ strategy, we will be able to further strengthen the commitment of our people to our brand and, most importantly, to our clients, in every single one of the 150 countries where we have a presence.

If you could give our readers advice on leadership, what would that be? Any parting thoughts?

1) Believe in your people, 2) give them ownership and empower them to realize their full potential, 3) have a genuine interest in them and respect their ideas and how they want to be led, and 4) model the accountability and values you expect of the organization.

In the long run, these are the attributes that will enable leaders to increase employee engagement and create an environment where their people are proud to be a part of the organization and are fully and wholeheartedly committed to its goals and success.

Final Thoughts

After reading this interview, it should come as no surprise why Deloitte is so successful. Jim is a great leader with a strong vision. He values his people and is committed to fulfilling Deloitte’s brand promise. Please leave your questions/comments for Jim below – He’s a social media guy so I’m sure he’ll respond…

Disclosure: Deloitte is a client.

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GUEST POST from Mike Myatt

Are you a “hero leader?” Do you like to swoop-in and save the day? Do you see yourself as the white knight who can solve any problem or challenge? If you do, you have what I refer to as ”hero leader syndrome.” Any leader’s belief that he or she can do everything better than anyone else (even if it’s true) is a root cause of inhibiting workforce productivity. Creating unnecessary dependencies between leaders and team members, while often unintentional and/or well-intended, is nonetheless a far too common practice for the “hero leader.” In today’s post we’ll take a look at the myth of the hero leader…

Is your workforce comprised of independent, highly motivated, and effective individuals, or is it built upon the limitations of employees completely dependent on you as their leader? Here’s a news flash…great leaders don’t create a state of dependency. In fact, they won’t allow dependencies to exist…rather they mandate independent thinking and decisioning. Many leaders struggle with understanding that rescuing is not the same thing as leading. Sound leadership actually prevents the need to rescue.

If you’re overworked, tired, and feeling stretched so far that your rubber-band is about to snap, it is likely because your doing the work of your subordinates, rather than holding them accountable to perform their own duties. Your role as a leader is to develop talent to the highest levels of independent and autonomous thinking and execution. Great leaders don’t subscribe to a “Do-It-For-You” methodology of talent management, rather they lead, mentor, coach, and develop team members by getting them to buy-into a “Do-It-Yourself” work ethic.

Great leaders view each interaction, question, or even conflict as a coaching opportunity. Don’t answer questions or solve problems just because you can, rather teach your employees how to do it for themselves. If you make it a habit of solving problems for people, you simply teach them to come to you for solutions at the first sign of a challenge. Great leaders don’t allow themselves to be placed in this position. They don’t allow employees to leverage them, they leverage the employee, and in doing so, it’s a win for the executive, the employee and the enterprise as a whole.

The trick is to meet questions, challenges, conflicts etc., with intelligent questions of your own. You need to meet question with questions. Questions allow you to direct the conversation and not be sucked into it. By redirecting the flow of a conversation, you elicit critical information and show that you care about what the other person is thinking. The following five tips will allow you to ask effective questions:

1. Be sincere in your questioning. Forget about what’s in it for you, and think about how you can help the person you’re communicating with. Do not manipulate or control the other person, but make an honest effort to find out how you can help them achieve their objectives by coaching them and not just serving up a solution on a silver platter.
2. Learn to ask effective questions. Don’t ask questions that can be answered with a simple yes or no. Use questions that begin with who, what, where, when, why or how in an attempt to enable dialoging. If the other person is doing all the sharing of information, you will find yourself in the enviable position of being able to assess, evaluate, and synthesize the information being shared. While the other party is talking…you are learning. Once you understand what the issues are you’re now in a better position to coach and teach.
3. Use questions to stimulate and challenge. Ask questions that are insightful such that they require thought to be answered. Help people understand how bright they are and where their talents and gifts are by setting a high chinning bar. When you engage people with stimulating and probing conversation they learn and grow.
4. Get personal in your questioning. Use questions that encourage the other person to reveal their thoughts and emotions. These questions will help you truly get to know the other party and to build common ground and rapport. If you can move beyond the analytical to the personal, the other party is much more likely to reveal their bias or agenda.
5. Demonstrate your competency without giving the answer away. Ask questions that reveal your subject matter expertise, and that demonstrate your ability to provide meaningful solutions without actually doing so. These types of questions should engender credibility, and therefore provide the other party with confidence that you can handle the situation in a manner that is in alignment with their best interests. Force people to move beyond surface level discussions by taking them past their comfort zones with intelligent questioning. Never settle for the general, ambiguous, vague, or standard answer. Continue probing until you are satisfied with the answer.

If you want to become a great leader, master the art of teaching and coaching through the application of skillful questioning. Work on developing a list of well thought out questions that are situational, industry specific, product specific, market specific, positionally specific, etc., and use them to put you in a position to help others, not by feeding them, but by teaching them how to fish…

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GUEST POST from Mike Myatt

It’s one thing to possess knowledge, but it’s quite another thing to leverage it. Leaders who don’t understand the value of distributable and actionable knowledge not only limit opportunities, but they’re also building huge contingent operating liabilities. One of great challenges for any leader is to break down cultural tendencies that foster silo-centric thought patterns. Savvy leaders understand that controlling knowledge diminishes value, while releasing knowledge creates value. In the text that follows I’ll share three tips that will help leaders become successful in the efficient and effective distribution of knowledge across the enterprise.

We have all heard the saying that “knowledge is power” we’ve all also heard the refinement of that saying which states that “the application of knowledge is power”. I prefer to take it one step further and say that “the successful application of knowledge at the right time, for the right reasons, and with the proper emphasis results in a certainty of execution that creates influence and adds value.” Leaders who understand the catalytic power of properly applied knowledge will not only be able to leverage knowledge to increase returns, but also be able to protect knowledge to mitigate risk.

Let’s begin by defining knowledge management (KM)…While this alone may spur fierce debate, for simplicity sake I’ll define knowledge management as: “an organization’s ability to collect and convert data into information, turn information into knowledge, and knowledge into an operating advantage.” The operational advantage created through effective KM should allow an enterprise to effectively address current needs as well as to strategically drive innovation and forward planning.

Put more simply, a corporation’s employees must be able to acquire knowledge (learning), transfer knowledge (out of the head and into an information system), apply knowledge (from the information system into an actionable event), manage knowledge (execute with focus, timing and precision), and secure knowledge (keep it from evaporating or even worse from walking out the door to a competitor). Let’s see if we can bring this issue a bit closer to home for some of you. Ask yourself the following questions:

• Have you ever had a disruption in business continuity because someone who possessed a wealth of experience and/or information retired, quit or was terminated?
• Have you ever lost a deal or had a major operational problem because somewhere in your organization the right hand didn’t know what the left hand was doing?
• Have you ever found yourself in the unenviable position of desiring to terminate an employee only to be held hostage by the fear of losing the knowledge that they possess?

While I could go on ad-nauseum with day-to-day operating examples of how a lack of KM discipline can adversely affect a business, I think I’ve probably dredged-up enough painful memories for now. So, let’s turn our attention to the following three practices/concepts that can immediately be used to implement a KM system for your business:

1. KM is more about people than systems: In order for KM to flourish in a corporate environment the business must value data, information, business intelligence, research and other forms of knowledge as a strategic corporate asset. Furthermore, KM must be recognized as one of the core elements of your corporate culture. Encourage and reward collaboration, the public sharing of knowledge, and education processes to create and scale knowledge.
2. While KM is more about people and culture than systems, you still need a system: Start with some basic wire-framing that creates an ontology with taxonomies that develop standard business rules, logic, process, naming conventions, file protocols, nomenclature and other heterogeneous standards that put everyone on the same system. By requiring everyone to work on the same platform and environment, and within the same toolsets a certain sense of continuity and community is developed. Develop a mantra of “document, document and when in doubt, document” and make this as painless as possible. There is an old technology axiom that states “usability drives adoptability”. Whatever toolset you select must be easy to use so that it is viewed by employees as something that makes their job easier, not more difficult. That said, there is a plethora of add water and mix content management systems, workflow collaboration tools, and KM solutions that are affordable and easy to use.
3. Protect your corporate knowledge: All employees should sign work for hire, non-disclosure, non-compete and non-circumvention agreements that make sure that all knowledge developed will remain corporate knowledge. Furthermore make it a practice to utilize copyrights, service marks, trademarks, license agreements, patents and other intellectual property protections to protect the corporate investment into knowledge assets.

The bottom line is that you can harness disparate elements of data and information and convert them into corporate knowledge assets to create a sustainable competitive advantage, or you can choose to sit back and conduct business as usual The choice is yours. Thoughts?

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GUEST POST from Mike Myatt

Those of you who frequent this blog know that I’m not a huge fan of either/or propositions. In most, if not all cases, decisions that are made on this basis simply constitute a lack of depth and understanding. This particularly holds true as it applies to the topic of innovation methodology. Most innovators view innovation from one of two perspectives: those who believe that disruptive innovation is superior to incremental innovation, and those who take the opposite side of the argument. In today’s post I’ll share innovations best kept secret – a different argument altogether.

I want to begin by making the argument for incremental innovation. It is faster, easier and cheaper to refine something than it is to create it. Let’s face it, not all oceans are blue. Even if you find a blue ocean to sail in, there is a lack of certainty as to whether you’ll navigate it successfully, and even if you do, as to how long you’ll remain the only ship in the ocean. I think most rational people have concluded it is much more profitable to disintermediate a market than it is to build one from scratch.

The main reason attempts at disruptive innovation fail more often, and don’t happen with more frequency and velocity is that human nature is to make things harder than needed by looking in the wrong places for disruptive opportunities. The real trick, the secret sauce if you will, is to focus on incremental innovation that becomes disruptive. Don’t think incremental vs. disruptive – think incremental and disruptive. This is the option that allows innovators to have their cake and eat it too. This is what levels the field by bringing disruptive opportunities in reach of companies that don’t have the time or resources to create new markets.

Let me be as clear as I can – disruptive innovation isn’t limited to a sole focus on creation of something new. Disruption can occur by disintermediating, refining, re-engineering or optimizing a product/service, role/function/practice, category, market, sector, or industry. The most successful companies combine disruptive thinking with incremental approaches in order to manage risk, gain time to market advantages, add value to core initiatives, and to leverage built-in efficiencies and economies of scale.

The problem with most incremental approaches to innovation is that companies don’t think big enough. Most incremental approaches more closely resemble process engineering/automation efforts with a focus on cost reduction through gaining efficiency, not on revenue creation by causing disruption.

The good news is this: there’s an easy fix to this antiquated way of thinking which is currently crippling the innovation efforts of many companies, and it’s found by adhering to the following six step process:

1. Define: The first thing that needs to happen is to define what constitutes disruption. Set a standard and then stick to it. I’m not suggesting that any initiative not meeting the definition by halted, but I am suggesting that you don’t fool yourself and label something as disruptive when it is clearly not.
2. Identify: Now that you’ve defined what types of projects you’re looking for, aggressively begin pursuing projects that meet the standards.
3. Assess: Once a potential project has been identified, put it under intense scrutiny and understand what you’re dealing with before you pull the trigger. Based upon the standards that were set in the definition phase create a scoring/ranking system based on key metrics and prioritize initiatives accordingly.
4. Plan: Be strategic. Great outcomes rarely occur when initiatives are under-resourced and/or poorly led. Deploy your best resources against your greatest opportunities. Make sure you set projects up for success rather than failure.
5. Implement: Get tactical. The best strategies will end-up facing certain failure unless planning transitions into practice. Without prudent, decisive, consistent and productive forward progress, plans aren’t worth the paper they’re written on. Planning without implementation is an exercise in frivolity.
6. Monitor: Everything in business, including the best laid plans, are subject to changes in circumstances and market conditions. Put simply, static plans are bad plans. Make sure that all efforts are measured against milestones, benchmarks, deadlines, budgets, etc. If the plan needs to be nuanced in order to achieve success, then have the flexibility engineered into your plan to allow for such changes.

As always, I welcome your thoughts and opinions in the comments section below…

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GUEST POST from Mike Myatt

When it come to leadership age doesn’t matter – competency does. History is full of examples of leaders who have succeeded and failed at every age. The intangibles of passion, character, commitment, discernment, and talent are of infinitely greater importance than someones date of birth. I don’t care about your generational category (Gen X, Gen Y, or Boomer), but I do care about your ability to contribute. In today’s post I’ll give you a different take on the topic of ageism.

Whether your advantage is youth or experience isn’t really the issue – competency is. Regardless of your age, venturing beyond your area(s) of competency can be a very dangerous thing to do. It has been my experience that there are generally two types of people: those that don’t know what they don’t know, and those that do know what they don’t know. All other things being equal, the difference between the two groups boils down to experience and discernment. Those people who don’t know what they don’t know typically tend to be either younger professionals beginning their careers who have a lack of experience, or older professionals who have not gained wisdom and maturity as they have progressed along their career path.

The Early Stage Professional

On the positive side of the equation young, inexperienced, and energetic professionals sometimes accomplish great things because they don’t have the experience to know what they are not supposed to be able to accomplish. As a result of their professional naivete, they sometimes appear to achieve the impossible. However more often than not, young professionals operating outside of experiential and/or educational boundaries are met with failure and frustration by having what appear to be great ideas eventually unwound by unforeseen factors that only were unforeseen to them due to their inexperience or lack of discernment.

The failures and setbacks of the early stage professional can be healthy learning experiences that lead to professional maturation so long as learning actually takes place, and mistakes of naivete don’t become patterns for future disruption. It is essential that young professionals gain an understanding of where their skill sets and competencies begin and end. Once the boundaries of knowledge are understood, then definitive steps can be taken to create a plan for personal and professional growth. The decision can be made to ignore weakness by design by playing to your strengths, or you can choose to improve weak areas by closing the gap between where you are and where you want or need to be.

The Tenured Professional

Regrettably it takes more than time on the job to reach true professional maturity. I have personally witnessed people 20+ years into their careers that have reached executive level positions and they still don’t know what they don’t know. It is all too common for these types of people to operate in a vacuum by believing that their experience alone is a cure-all for any issue or problem.

How many times have we all observed an experienced person with subject matter expertise in one area, try to drive an initiative or an agenda in another area, only to fail miserably because they didn’t know what they didn’t know? Let’s look at this issue another way; how many times have you seen an older and more experienced person fail to solve a problem that a younger and less experienced person solved with seemingly little effort? While experience is a valuable commodity, in-and-of-itself, and to the exclusion of other traits and characteristics, the sole reliance on experience can be a barrier to professional growth and maturity.

That said, I have never been a believer in the adage “you can’t teach an old dog new tricks.” In fact quite to the contrary…I believe anyone (yes I mean anyone) can change given one prerequisite; the desire to do so. However I feel just as strongly that change cannot be forced upon someone who does not recognize the need for change, or even worse, recognizes the need but has no desire for change.

Whether young or old, experienced or inexperienced, the best way to approach personal and professional development is to always stay in the learning zone. When you think you have all the answers is precisely the point in time when you are headed straight for the proverbial brick wall. Always seek out people who know more than you do and actively learn from them. Find someone you trust who can dispassionately identify development opportunities and help you chart a path to progress.

Rather than being threatened by, or dismissive of someone of a different generation, why not learn from them instead. We all have much to offer and much to learn, Recognition of this will simply make your life more enjoyable and more productive as well. Most things in life happen as a result of choices we make…It is clearly within your grasp to make the choice to gain an understanding of what it is that you don’t know, and determine what you want to do with that information. It’s your choice; choose wisely.

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