10 Steps to Create a Killer Succession Plan

Retirement Pocket Watch

As a matter of age and evolution, every 10 to 20 years or so almost every business is forced to find new leaders to carry it into the future. As older leaders retire, replacements must be brought in to carry on their work.

In some cases leaders quit, die, are promoted, or transfer elsewhere.

Staying in Business

In all of those cases, they must be replaced if the business is to survive. Despite that inescapable truth, many businesses and organizations I work with are not properly prepared to replace their outgoing talent.

Often there seems to be a “head-in-the-sand” mind-set wherein, decision makers choose to leave well enough alone and hope that their current personnel structure will last forever or that a new, exciting leader will fall out of the woodwork on cue, when necessary.

Unfortunately, woodwork is often populated by termites, ants and beetles…none of which offer any great organizational leadership potential.

In order to build a valuable and effective succession plan, decision makers must firstly, “always” be on the lookout for future leaders. They must be thinking at all times about perpetuation of their organization and what will happen when their current good or bad leaders move on.

Succession should not be an emergency decision.

It should be like a cougar on the hunt…ready, alert and waiting to pounce when the opportunity arises.

10 Steps to Create a Killer Succession Plan

Here are some things to think about when planning for the perpetuation of your organization:

1) Be a savvy shopper.

In order to identify your future leaders you must accept that it is not always a good idea to buy your talent at the head-hunter storeIn many cases, people who register with head-hunters have issues that have prevented them from finding work through other channels. You might want to consider them your last resort as they may be your potential undoing.

2)  Always try to promote from within.

This is a commonly accepted business principle that is often avoided or overlooked. It takes much less time to bring an existing employee up to speed than it does an outsider. Current staff members know your business, your culture and your brand…and you already know them.

3) Select from values-ready candidates.

Always promote or hire leaders who already possess your corporate values rather than trying to teach them your values after the employment contract is signed. Perform some professional skills and talent testing and use solid investigative interviewing techniques before you give them an office and an email address.

4) Never promote people out of obligation.

Organizations of all types tend to offer promotions to people who have hung-in-there the longest regardless of skills, talents or value. Tenure is NOT necessarily an indication of leadership ability and it should not be rewarded with a leadership position unless the person is actually a good leader.

5) Always be on the lookout for “keeners.” 

Keeners are people who love their jobs and quite naturally encourage others to excel in theirs. These people often offer advice and counsel to other even when not in a formal leadership role. There are many of them in many organizations and they often go unnoticed by the decision makers. They may or may not thrive in an elevated leadership position but if they are ignored or passed-over they will never realize their full capacity for leadership. Be a talent-scout within your own organization.

6) Once you have identified a potential leader, talk to them.

Let them know that you appreciate their work and that you see a bright future for them. Human beings of all personality types and skill levels love to be encouraged and they appreciate knowing that they have a future.

7) Put your future leaders on a “career path.”

Most people of the current younger generation want to know where they are going and how long it will take them to get there. Work with them to create milestones and expectations so that when the time comes, they can easily slip into a new leadership position.

Really good future leaders want advancement and if you don’t provide it, someone else will.

8) Provide leadership training to future leaders.

Although some people possess almost “natural” leadership skills, there is a lot to be learned about leading that cannot be gleaned through osmosis or exposure to ones immediate supervisor or manager. Formalize your leadership training and offer it to anyone who wants an opportunity to learn.

9) If you hire a new leader from outside of your own firm, never hire based on your “gut instincts.”

Your guts might help you in a fight–or-flight situation or when you are selecting an item on a restaurant menu, but they don’t work well for talent selection. Always utilize good talent assessment tools and have a panel of your peers and/or employees participate in the interview process so that your decision is not tainted by your guts.

Job applicants almost always adapt their behaviour to the interview process and what you saw is seldom what you get a month or two after they have settled into a new job.

10) Never hire in your own image or enforce your own leadership style.

Most of us tend to feel comfortable with people who are most like us. However, it takes many types of personalities to make a great team and one leadership style is not the “best” or the “only” way to lead. Take your personal feelings out of how a new leader should lead and allow them to deal with people in the way that works best for them.

Give them an array of leadership tools and then stand back and watch them fly.

A Brighter Future

In an increasingly competitive world you must have the best-of-the-best leaders if you want to have a commanding presence in the new millennium. If you have not started to build a leadership plan for the future, now is the time.

What have you done to ensure a successful succession process in your organization? If you have not yet started a succession plan, what’s stopping you? What would be an easy next-step in this direction to get you started? I would love to hear your thoughts!

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——————–
Wayne Kehl

Wayne Kehl is President and CCO at Dynamic Leadership Inc
He is author of App für Trading im Vergleich and behavioral analyst who lectures on leadership and motivation
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On Leadership, Corruption and The Empire of the Heart

Bribery

The United States is more corrupt than Japan, Britain, Australia, Germany, and the Scandinavian nations.

According to Transparency International’s Corruption Perceptions Index, the US ranks 22 out of 181 countries.

You might take consolation in the fact that America is not endemically corrupt, not a broken society, not an un-drainable swamp, as are many nations in the world.

  • But what happens if you add globalization to the mix?
  • What happens when you sprinkle graft, bribery, and unholy alliances into the new supranational context?

We in the US have known corruption in the past. What we have not known are its consequences in a more precarious global age.

Three Key Factors

There are at least three factors that should concern us.

  • First, leaders today lead in a very different world
  • Second, fewer leaders are prepared to handle the new world
  • Third, the new world enables the effects of ethical misconduct to scale to unprecedented orders of magnitude

In my coaching work with CEOs, it’s abundantly clear that the globalizing environment is acting as a crucible that either melts or refines the leader. Leaders are subjected to more speed, greater complexity, and limited resources—all with the same high expectations. Turbulence is the new normal and there’s no prospect of a spontaneous return to order.

Just look around; the familiar bastion of the conventional business cycle is gone.

If there’s no status quo ante, what’s the result? It’s really quite simple: More pressure to perform and more temptation to engage in ethical misconduct.

Leadership Litmus Test

The litmus test is the collision of stewardship and self-interest. Name a spectacular fall from grace that was about skills, knowledge, or experience? When leaders go down, they go down from the inside out. It’s a collapse of character we witness.

Consider the most recent float in the scandal parade—Mark Hurd, the recently ousted CEO of HP. This is a smart and talented person, but we need to be careful not to cling to a belief that leadership is mostly about IQ points and the charismatic arts, as if they will save us.

They never will—especially not in an ethically and morally interdependent global age.

Geo-Repercussions

The risks of ethical misconduct have become unknown and unknowable. With the connectivity of global supply chains, we are vulnerable to the effects of ethical misdeeds performed almost anywhere on earth.

Bribery

Pet food, peanuts, toothpaste, tires, Bernie Madoff, and the sub-prime lending crisis prove that we have entered an era in which a few bad actors can create a geo-ethical shock that incurs loss for millions of people.

If risk equates to probability multiplied by magnitude, we need to be more willing to take our leaders to task for their personal failings.

Personal failings have not only public consequences, but unintended and far-reaching public consequences.

Dishonorable acts are now globally scalable in their effects.

Resisting Temptation

Leadership is alluring.

It tempts you to use position for personal gain. The culminating test is to resist that temptation. But as we all observe, many succumb. It frequently begins as a flirtation of ego that ends in a vortex of corruption. The ambition to govern one’s fellow beings tends to view leadership as the pathway to a glittering world of personal reward. And so under pretense of leading, those of unbridled ambition seek it out and then let us down.

Hence, we observe a teeming gallery of venal characters auctioned to the highest bidder.

It continues to puzzle me that our public discourse on ethics tends to focus on the back end of achieving compliance and little on the front end of developing moral values. Nor do we talk enough about putting those who want to be our leaders under tougher scrutiny. And yet we live in a society in which we are led by many who have not demonstrated the ability to lead themselves.

So it’s more than antiquarian charm to say that leaders should be honest and morally excellent. Civil society ultimately depends on it as a functional necessity and the last line of defense.

As a practical matter, we need to vet candidates for leadership in every arena on character requirements more rigorously then we do.

We need to test their moral bearing capacity so that when stewardship and self-interest collide—and they certainly will—there’s a good chance the leader won’t buckle.

Empire of The Heart

Let’s not forget that leadership begins in the inner world. It’s about the empire of the heart. It is about meeting needs and reaching goals much larger than one’s personal desires or aspirations.

To be fit to lead has nothing whatever to do with being rich and well-born, or even charismatic—dogmas from which we are still recovering. We need men and women of unflinching character to step out of the crisis, steeled for the journey ahead.

So as a leader, how can you step up and exercise your empire of the heart? And with the leaders around you, how can you hold them to standards that are above ethical reproach? How can you and those around you stand on strong ground and work for things of lasting value that positively impact you company, organization, or your city, state, or federal governments with integrity?

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——————–
Timothy R. Clark
Timothy R. Clark
, Ph.D. is president of management consulting firm, TRClark.
He helps in strategy, organizational transformation, and leadership development.
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The Essence of Life and Leadership

Learn Lead

“Emotions transform energy; energy creates movement; movement is change; and change is the essence of life.”  ~Darren Weissman 

Did you know?

  • Only 20-50% of re-engineering efforts succeed [1]
  • Only 28% of information technology projects are successful [2]
  • Only 33% of corporate mergers are successful [3]
  • 50% of firms that downsize experience a decrease (not increase) in productivity. [4]
  • 75% of all change efforts fail to make any dramatic improvements. [5]
  • An astonishingly high percentage of failed projects had excellent technical plans. [6]
  • Failure to change is the primary source of organizational failure.5

Empowering Interface

These dismal revelations about change management success and failure come right out of the research of real organizations, real projects, real managers, and real leaders.  If we were grading leaders and managers on their change management report card, they would get a ‘C,’ at best.

And wouldn’t you agree that, like life, change is arguably also the essence of leadership?

While there are many change management models, if there is one thing that would help your organization dramatically improve the quality of outcomes, it is empowering interface.  That’s what researchers from the University of Bath and George Washington University called it.5

Empowering interface occurs when executive leadership empowers middle management to interface comfortably between executives and frontline employees breaking down silos and enabling both macro and micro variables to change and cascading empowerment across the firm.

This process requires executive transparency and a “change sponsor” or “change champion.”

Change Champion

What does it mean?

It means that executives need to change the way they look at change.  In order to be successful at change leadership and management, you must break down the silos between executive and frontline levels using middle management, create a safe climate, and generate empowerment and trust through transparency and responsiveness.

If there is not open two-way communication and action, change efforts could be doomed.

Empowering middle management, especially with increasing discourse between executives and frontline, greatly increases the odds of success.

Exactly How to Fail

Macro initiatives designed solely by executives (no middle management or frontline input) creates a “closed system” or silos and spreads disempowerment (through rumors, false assumptions, and miscommunication) and that cultivates strong resistance.  Put another way, when change initiatives are rammed down people’s throats and without involvement, expect contempt, defiance, subversion, and eventually failure.

Successful change leadership and management are all about communication, relationships, empowerment, respect, and responsiveness.

This sounds a lot like love, if you ask me.

Work-Out and CAP

Jack Welch and Steve Kerr of GE developed one of the most well-known and successful change models in the late 80’s and early 90’s and used it successfully at GE.6  They called it “Work-Out.”  Similar to a “time out,” those on a change project take a “work-out” from typical bureaucratic practices and behaviors and instead rely on continuous focus, efficient decision-making, and accelerated implementation.

The Change Acceleration Process (CAP) part of Work-Out became popular because of its effectiveness and has since been marketed to many other institutions and industries.

It is no coincidence that a significant portion of CAP – the first four (of seven) steps – are exactly what the researchers describe as empowering interface above.

They call them:

1.  Leading change
2.  Creating a shared need
3.  Shaping a vision
4.  Mobilizing commitment

The last steps in CAP are:

5.  Making change last
6.  Monitoring progress
7.  Changing systems and structures

Change is at the very essence of life and leadership and “resistance to change” doesn’t have to be a given – at least not strong resistance.

Both the research and successful organizational change models like CAP are telling us that when people are involved in the change process, not only does cooperation increase, but the quality of the outcome dramatically improves, as well.

So how do you effect change with those you lead and your extended team?  What is the change management and leadership model and philosophy were you work or lead?  Do you or your organization even have it defined?  What steps can you take today to improve it?  What other models or techniques have helped you and your organization arrive at successful outcomes?

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——————–
Alan Mikolaj

Alan Mikolaj is a Professional and Inspirational Trainer, Keynote Speaker & Author
He is the author of three books and holds his Master of Arts  in Clinical Psychology
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[1] Strebel, P. (1996, May/June). Why do employees resist change? Reprinted in Harvard Business Review on change in 1998. Boston: Harvard Business School Publishing, pp. 139–157.
[2]
Farias, G., & Johnson, H. (2000). Organizational development and change management: Setting the record straight. Journal of Applied Behavioral Science, 36, 376–379.
[3] Dinkin, D. (2000). Unlocking the value of M & A. The Banker, 150(895), 118.
[4] Appelbaum, S.H., Everard, A., & Hung, L.T.S. (1999). Strategic downsizing: Critical success factors. Management Decision, 37(7), 535–552.
[5] Raelin, J.D. & Cataldo, C.G. (2011). Whither middle management? Empowering interface and the failure of organizational change. Journal of Change Management, 11(4), pp.481-507.
[6] Von Der Linn, B. (2009). Overview of GE’s Change Acceleration Process (CAP). Retrieved August 24, 2013, from Bob Von Der Linn’s HPT Blog: http://bvonderlinn.wordpress.com/2009/01/25/overview-of-ges-change-acceleration-process-cap/

Leadership Lessons: Success and Fatal Flaws

3 Flaws That Never Get Talked About

Fatal Flaw

There is so much glitz and glamour that comes with that power-word “success.” It says “You’ve made it!” And “From here on, life is good! Right?”

Well, no… Not so fast…

The biggest distraction to success is all the stress and anxiety that sits like a weight in the pit of the stomach that often comes with the territory. It has to do with the worry that it will all disappear tomorrow, the next day, someday.

Falling From Grace

You know the saying:

The higher they go the harder they fall?”

It’s a warning to watch out, be careful because you never know when the party is over.

How about this saying:

“Don’t rock the boat.”

This tells you to play it safe and not take too many chances, especially once you have the houses, the cars, the perks.

Keeping Your Grip

So many films show the fall from grace; quickly going from success to the gutter. Why is this amorphous thing that we all covet, called success so tenuous to grab and to hold?

Partly because once success hits, there is a tendency to hide the fear by acting over-confident. You get used to being bowed to, applauded, and respected by folks who only know you by reputation.

They never see your uncertainties, hesitations, and inadequacies.

  • But what explains the unsettling tendencies for success to be so tenuous and difficult to support?
  • What are the enemies to success?
  • What causes a strong journey to fail along the way?

Take a look at these recipes to sabotage success.

3 Fatal Flaws

Here are the 3 Fatal Flaws that never get talked about:

1) Entitlement

Paradoxically, many people do not feel entitled to success.

Stupid idea? Perhaps.

However there is a sense that many successful people have, the “if they really knew me syndrome.” That thought of being in a masquerade, being seen as more than one really is, waiting to be “caught with pants down” often is a fatal flaw that sets up the fall down the slippery slope to failure.

You see so many times we have these self-fulfilling thoughts and deep in us we would rather be right than to be happy!

Doesn’t make logical sense, yet in the emotional parts of the brain, it is exactly correct and makes total sense.

2) Loyalty

Another flaw is loyalty spawned from generational expectations. This is where we look at success in terms of our lineage to understand benchmarking and standards. Consider this line of thinking:

If it is good enough for my parents and grandparents, then it is good enough for me.”

That is a set-up to not be capable of going beyond the level of the family, often for generations and generations. It means that if no one ever went to college, well you may be able to wear that cap and gown, but don’t ever expect to get the top job.

Or, if you do become the top dog, expect the fall from success to come along eventually. “After all, one shouldn’t stray too far from living at the level of the rest of your family.”

Does this make sense? Not really. Does it happen often? Absolutely.

3) Patterns

We all play roles in our families that become familiar ways to stay safe and accepted. Often these patterns show up when we are tense and anxious. When stress hits the hot button, we all tend to revert to childhood patterns that were there for security and survival.

These patterns may not be effective in high level positions, yet there they are making us look like we have spilled a bowl of oatmeal on our shirts.

So, if you think you’ve been acting like a baby, you’re right!

Now you know the flaws to watch. Take the time to understand and work on these areas of entitlement, loyalty, and patterns. By bringing to light these often invisible forces you can harness and refine them so that you will continue to build on success after success and leave a powerful legacy for future generations.

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——————–
Dr. Sylvia Lafair, Business & Leadership Coach

Sylvia Lafair, PhD. is President, Creative Energy Options, Inc.
She does Workplace Relationships, Conflict Resolution, Exec Coaching & Consulting

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Improve Your Team by Developing the HERO Inside You!

Be The Hero

Real heroes don’t really wear capes or have supernatural powers. In the real world, HERO’s are simply ordinary people who choose to respond to a set of circumstances in a way that inspires others. And it IS possible to develop the HERO inside you.

But before you can lead others, you must first learn to lead yourself.

That’s how you develop into a HERO.

The Hero Inside

There are battles inside you that go on every day, and those battles are the reason that you haven’t accomplished as much as you promised yourself you would back on New Year’s Eve. Internally, there is a part of you – a HERO – that wants to succeed and has strong values and great ideas and when you wake up it is your best self that is energized and bold and determined.

Friedrich Nietzsche called it the Übermensch. The term, loosely translated, means “superhuman.”

But your best self, your internal hero, has enemies…

  • Every day your HERO has to wage a battle against distractions, and disappointment, and disparagement.
  • Every day he has to struggle with ghosts of regret or monsters of misfortune.
  • Our history, things that happened in the past.
  • And our experiences, things that happen to us and around us, can sometimes seem devastating.

Fighting Your Battles

Imagine being a recently divorced woman, caring for a 3-month old daughter, forced to go on welfare after losing her job. Those would be hard battles to fight! And even though those circumstances and experiences are dangerous adversaries, they are not as powerful or impactful as our internal response to them.

If we respond poorly, we experience more painful outcomes. We become victims of our own negative responses. 

People, and teams, are not victims of circumstances. They only feel this way when they do not develop and use the HERO within them.

Winning the Battles Within

Too often our internal HERO’s greatest threat is our own fear, or contentment, or excuses, or doubts… those deceitful soldiers that protect the walls of our comfort zone.  And it is amazing what sometimes we can allow ourselves to grow comfortable with.

But if you want to develop the HERO within you and accomplish your ambitious goals, you have to:

  • Exile your excuses
  • Dump your doubts
  • Crash through that comfort zone that has caged you

The HERO Formula

So, what separates the average man from Nietzsche’s Übermensch?

The answer is a simple equation.  H + E x R = O

History + Events x Response = Outcomes

We cannot control our history… or the events that occur to and around us. But we CAN control our RESPONSE to them. And no matter what the first parts of the equation are, OUR RESPONSE DETERMINES THE OUTCOME!

To get something different, to feel something different, to become something different, you will have RESPOND differently!

I offer team building for teachers, for athletes, and for corporate groups that inspire unity and boost morale, but the key to any group’s improvement is each individual within the group claiming responsibility for their response to the history and events around them.

The HERO Attitude

Remember that single mother we imagined above? Well that was J K Rowling, author of the famous Harry Potter series.  She developed her HERO because she decided to choose a positive response to her circumstances.

We cannot control our circumstances.  But we can control our responses. Regardless of the circumstance, we get to choose our attitude and our actions. We can develop a victim attitude and spiral down, or the kind that J K Rowling did and ascend far beyond expectations.

And if you keep a good attitude and take appropriate action consistently, those habits will lead you to accomplishing the goals you have set for yourself.

But your focus must be on changing the equation with a quality response. The world is not going to change  and we remain victims as long as we are waiting on someone or something else to change for us.

Becoming a HERO

So, how does one become a HERO? Commit to responding to your history and your experiences as your best self. Remember, you cannot choose where you were planted – but you CAN choose to bloom there.

Want to improve your organization and inspire team development? Want to improve your family?  Your community? Your workplace? Then develop the HERO inside you. Your example and responses WILL impact others. Whatever your history or experiences, your response to the events you experience will determine your teams success.

So how are you responding to your past and current situations in life, at work, and in your community? Are you mentally stuck in the past and still paying a heavy price? If so, WHY? What steps can you take today to reprogram your responses so that you can get those superhuman results and lets the HERO soar? I would love to hear your thoughts!

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———————–
Sean Glaze

Sean Glaze is Speaker, Author, Coach, and Facilitator at Great Results Teambuilding
He delivers Engaging Events that Transform Laughter into Lessons
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Real Leadership! Are You Ready? (Dog Ear Publishing, 2013)

Real Leadership! Are You Ready?: Rethinking and reframing personal and organizational potential and performanceAs Leadership goes, so goes the group, the organization, the nation, and everything else in between.

Yet in spite of this multi-millennial axiom, and the simple fact that we are the best leadership-educated society in the history of business, our encounters with genuine leaders remain extremely rare.

Real Leadership! Are You Ready? examines this perplexing phenomenon and qualifies the principle cause as an unwillingness and/or inability to take new leadership information and use it to improve our performance.

It also provides the solution: a Leadership Enrichment LIFE-cycle (LEL-c) to help individuals and organizations build and sustain durable Leadership Platforms.

More About the Author Here

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——————–
Richard Dillard

Richard S. Dillard is Founder/ Managing Partner at Dillard Partners, LLC
Pursuing Success at the Speed of Leadership!
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L2L Infographic: 10 Qualities of Great Community Leaders

Infographic Courtesy of Wake Forest University’s Master in Counseling

Why Great Leaders Value Reputation Before Revenue

How to Put Principles Into Practice

Reputation

In 1996, I walked away from my first million-dollar client. Anyone looking at my company’s profit and loss statements would have questioned my sanity.

We were less than a year old at the time, and this was by far our highest-profile customer. I made this seemingly crazy decision because I value my company’s reputation over its revenue.

Making Business Decisions

Many leaders rely on Excel spreadsheets to drive their decision-making. They think something is only worth doing if the numbers add up and the price is right. My company, on the other hand, uses a set of five core principles to gauge every business decision it makes:

  • Employees come first, always.
  • Work as a team; win as a team.
  • Reputation comes before revenue.
  • Commit to safety.
  • Make it happen!

Our big client didn’t share any of these values with us. Further, he was overly harsh with my team members and set unrealistic expectations. Our weekly status meetings with him became sources of dread because it didn’t matter how well the previous week went; it was never good enough.

The entire office’s morale suffered, and I had to make a decision:

Do I put my principles first, or do I put my revenue first?

I quickly realized that if I put revenue first, there didn’t seem to be much of a point in having principles. If I sacrificed our core values in the name of profit, how could my team ever respect me or our values again?

The decision became easy — we walked away.

Money is Fleeting. Reputation is Forever

As leaders, we’re often tempted to compromise things — be it ethics, principles, or happiness — to maximize short-term profits. While compromise might immediately boost our portfolios, it doesn’t necessarily help build our reputations.

I’d argue that a company’s reputation is all that really matters, and having a good one is the only way to ensure long-term success. It’s the reason my company has so many great clients today, and it’s the reason they constantly refer new business to us.

This is a philosophy that was instilled in me during my youth in the Midwest. We had a folksier way to sum it up, though:

Pigs get fat, and hogs get slaughtered.”

Everyone has a right to a living, but greed yields guaranteed downfalls — and I’m not interested in being a hog.

Staying on Course

The benefits of this approach aren’t just lasting. By removing immediate profits as sole drivers of business decisions, you’ll no longer be tempted to veer your company off course to accommodate difficult clients with deep pockets. This will solidify your brand as a stable, upstanding, and moral institution — and that reputation alone will drive your growth today and tomorrow.

The great corporate scandals of the world (think Enron) typically involve companies that value short-term revenues over all other considerations. And what does that earn them? Bankruptcy, bad press, and prison time.

Putting Principles Into Practice

Having personal principles is one thing, but having company-wide shared principles that guide every level of decision-making — from the corner office to the reception desk — is something that requires practice, patience, and communication.

Here are a few tips to help you instill this reputation-centric mindset into your company:

  • Provide mentorship and coaching. Look for opportunities to mentor, coach, and train your employees to make sure they have clear understandings of your company’s core values. Show them what it looks like, and feels like, to do the best quality work in your industry while maximizing your company’s reputation.
  • Ask great questions. There’s a management style called “inspect what you expect” that involves asking your employees quality questions to ensure the things you want completed are, in fact, being completed. It’s a low-impact form of oversight that’s more trusting and less stressful than full-on micromanagement — and it will help you determine what’s going on outside the walls of your office.
  • Align expectations. Meet with every employee and client to make sure they understand what your company is all about and how you got to where you are. Also provide them with a list of your core values, as well as specific examples of those values in action. This will give everyone a clear understanding of what to expect, and it will also show employees how to exceed expectations.
  • Make happiness your success metric. Don’t look at your bottom line to assess whether your company had a good year. Instead, look at the quality of your work, the happiness of your employees, the contentment of your clients, and the state of your recurring

Don’t let that one difficult, deep-pocketed client turn your business into something it isn’t. If you stay true to the values near and dear to your heart, the right clients will find you.

So, do you have a client or supplier that has dramatically different values than your organization? If so, would you give them up despite the cost to save your reputation? How important is your reputation you? I would love to hear your thoughts!

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——————–

Steve Randazzo is the founder and president of Pro Motion Inc
He builds deep emotional connections with consumers to create lifelong relationships
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On Leadership, Threats and Operational Security

Hacking Threats

A few years ago, a small business in San Diego was hit my malicious cyber attacks over the internet that were launched from local IP addresses.

As they were protected as much as they felt they could be, they contacted the national carrier to deal with the denial-of-service component of the problem.

Too Small to Service

After going through several levels of management, the answer that they heard was that the carrier gets about 10 million threats per day on their network and it is pretty difficult to assume that they would be given some kind of priority as a small business to have your problem explored.

Understanding that type of threat, which was simply a script being run through several zombie computers, can escalate to actual specialists trying to actively access your Internet information was enough to drive the owners towards looking at specialized business insurance that could keep them safe from liability.

What is Cyber Insurance?

The most common way for small businesses to get protection is to first ensure that they have an industry security compliance on their cloud presence and to ensure they use the right cyber security solutions like the use of a SWG. After they have done so, they can look at cyber insurance. Cyber insurance is a form of insurance that covers almost any type of business attack from hacking to data breaches.

If you lose a client’s data or valuable data of your own, you can recover some of your losses or offset the liability with an insurance claim. Some forms of coverage also cover the loss of work time due to denial of service attacks.

Small companies are fortunate that almost 90 percent of the policies that are available provide coverage to companies inside the United States. Another nice feature is that the bulk of the policies can be priced by getting insurance quotes online.

Preparing to Get a Policy

As mentioned, upgrading or validating that you have industry standard security compliance is an important part of qualifying for cyber insurance. If you have an online e-commerce site, you should have encryption, a good hosting provider, and potentially a third-party service that verifies your site security.

The cost of preparing for cyber insurance can be a consideration for small businesses, so if you are just starting you might consider talking to cyber insurance representatives about the requirements that they have so that you can focus on meeting their criteria.

Another area that comes into play is knowing the type of coverage that you think you will need. If you store client credit cards online in a database, you will likely focus on a different type of coverage than if you are a company that uses a third-party payment processor’s site to process transactions for published material that carries copyrights.

Are They Really Out There?

A lot of smaller companies have not formerly had too many problems that they know of when it comes to the information that they keep online. Two trends are changing that picture. The first trend is one that has more businesses relying exclusively on computing in the cloud.

The second is that security researchers are finding pieces of data from every size company imaginable online in what is known as the Internet ‘dark’, or an area that people use to store information that may be for sale. Gone are the days when hackers were exclusively interested in finding ways to beat security or promoting a cause. With billions of people online, the focus has shifted to money and information.

New Operational Threats

As far as attacks are concerned, in addition to outright hacking and employee theft, there are a couple other types of attack that are growing in popularity.

  • One is stealing the anonymity from people and putting together a trail of behavior that can be used as business intelligence.
  • The other is creating boiler rooms that are information clearinghouses of stolen data that goes on the market to whichever organization or person that will pay for it.

The net result for small businesses is a competitive disadvantage for their online offerings unless they have adequate security- and potentially some insurance protection in place. For the small business owner who hasn’t recently checked their security arrangements, 2016 is a great time to start looking at turning a disadvantage into a sales advantage by validating the notion that your client and internal data is secure.

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Robert Cordray

Robert Cordray is a freelance writer with over 20 years of business experience
He does the occasional business consult to help increase employee morale
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On Leadership, Communication and the Personal Touch

Why Leaders Still Needs the Personal Touch In Today's Digital World

Digital channels like email, instant messaging, social media, and video conferencing can make communication within a business a lot easier easier.

It can allow leaders and teams to keep in touch with the office even if you are on the other side of the world.

However, it is important to realise that these methods cannot completely replace face-to-face conversation.

The Power of Person

Indeed, speaking to someone directly offers several benefits that cannot be recreated digitally. Personal communication remains the best method for delivering crucial information. If you need to get an important point across, inspire your workforce, handle a sensitive issue, or move people to action, face-to-face remains the best way to effective communicate.

This is why leadership training should still contain a strong direct communication element.

This article looks at some of the reasons why a good leader in the digital world still needs the personal touch.

The Personal Touch

Personal Relationships

Despite the obvious convenience aspect of modern digital communication methods, a significant part of leadership involves forming personal relationships with the people you are leading.

This is much easier to do when you are in the same room as them, talking to them directly.

Furthermore, direct conversations allow you to give people your undivided attention. If you are on a video call, or using an online messaging system, you may become distracted by an email or by having multiple communication channels open at once.

Talking to someone on a one-to-one basis lets them know that you value them enough to drop everything else and allows more authentic, individual connections to form.

The importance of forming meaningful connections with your employees is often emphasised in management skills training and it is significantly more difficult, if not impossible, to do that through an electronic device.

Clarity and Nuance

One of the primary advantages of digital communication is said to be speed. And indeed, when it comes to simply getting a message to someone else, it can be extremely quick. However, that speed can be counter-balanced by a lack of clarity, ultimately making it less efficient than face-to-face conversation.

Mina Chang, CEO of Linking The World explains it this way:

It’s easy to misinterpret a text or email. For sensitive or otherwise important communication, having tone and body language for context makes a difference.”

Research shows that effective communication relies on non-verbal cues. Generally, digital communication removes these, along with nuance, increasing the chance of misinterpretation. Tone, for instance, cannot be conveyed through email or text messaging, while even video communication impacts upon the ability to read body language.

Sensitivity

Throughout their leadership career, people will encounter a number of serious or sensitive issues, which need to be dealt with carefully. For example, they may need to address an employee’s personal appearance, deal with a complaint about workplace bullying, or give a staff member a strong verbal warning about their conduct.

Dealing with such issues face-to-face demonstrates your personal commitment to reaching the best possible outcome. It helps to foster a greater level of trust between you and the employee in question and it is the best way to ensure that their dignity is preserved and your message is clear.

Reactions and Feedback

Finally, leadership often relies upon feedback and the ability to gauge reactions accurately, which can be done more easily through direct communication. You may notice hesitations or changes in facial expressions, which can act as a cue for you to develop points further or ask for opinions.

This ability is inevitably lost through digital communication channels.

Employees like to feel as though they are valued and their contributions to discussions matter. Once again, it is easier for them to make contributions during face-to-face conversations, which allow for interruptions or deviations.

Moreover, people pay closer attention and participate more actively in conversations if the person they are speaking to is actually present. This is partly because they are also aware that that person can pick up on their reactions.

So, what can you do to make your communications more effective by making them more personal? How can you create environments that make it easier for all team members to communicate confidently with personal tones and calm body language? What steps can you take to evaluate how you come across to others? I would love to hear your thoughts!

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Alison Brattle

Alison Brattle is a marketing manager at Uk Based Company AchieveGlobal
She specialises in providing Exceptional Leadership Management Courses
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