Showing posts with label Stanford Graduate School of Business. Show all posts
Showing posts with label Stanford Graduate School of Business. Show all posts

Tuesday, December 17, 2013

Doing Less, Leading More

20131218_3 by Ed Batista 

Our first accomplishments as professionals are usually rooted in our skill as individual contributors. In most fields we add value in the early stages of our careers by getting things done. We’re fast, we’re efficient, and we do high-quality work. In a word, we’re doers. But when we carry this mindset into our first leadership roles, we confuse doing with leading.

 We believe that by working longer, harder, and smarter than our team, we’ll inspire by example.  Sometimes this has the desired effect–as Daniel Goleman wrote in his HBR article “Leadership that Gets Results,” this “pacesetting” leadership style “works well when all employees are self-motivated, highly competent, and need little direction or coordination.” But the pacesetting style can also carry a high cost – Goleman notes that it “destroys climate [and] many employees feel overwhelmed by the pacesetter’s demands.”

Instead simply doing more, sustaining our success as leaders requires us to redefine how we add value. Continuing to rely on our abilities as individual contributors greatly limits what we actually contribute and puts us at a disadvantage to peers who are better able to mobilize and motivate others. In other words we need to do less and lead more. Sometimes this transition is obvious and dramatic, such as when we’re promoted and obtain our first direct reports or hire our first employees. Suddenly we need to expand our behavioral repertoire to incorporate new leadership styles as a means of influencing others effectively.

(“Leadership That Gets Results” provides a useful roadmap here, highlighting the styles that have the greatest positive impact or are used less frequently by managers.)
Subsequent transitions may be more subtle and nuanced, such as when we go from leading front-line staff to leading managers, who themselves must navigate this same transition. A coaching client realized that he was running his company as though he were the “Doer-in-Chief,” and this model of leadership had permeated throughout the organization and was holding everyone back. He revamped his role, delegating almost all of the tasks on his to-do list to his senior managers and had them do the same to their direct reports. Rather than simply creating more work for junior employees, this emphasis on leading rather than doing resulted in greater efficiencies throughout the company. In my client’s words, “We went from being firefighters to being fire marshals,” taking a more strategic approach to the business, redesigning inefficient systems, and solving problems before they became crises.

This emphasis on leading and not merely doing has had a profound impact on management education. In 2010 Dean Garth Saloner of the Stanford Graduate School of Business (where I’m an Instructor) told McKinsey that, “The harder skills of finance and supply chain management and accounting…have become what you think of as a hygiene factor: everybody ought to know this… But the softer skill sets, the real leadership, the ability to work with others and through others, to execute, that is still in very scarce supply.” We expect our students to have solid technical and analytical skills—to be effective doers. But we also expect that within a few years of graduation our students will be managing people who are even more technically and analytically capable than they are—and this requires them to be effective leaders.

Many of my executive coaching clients and MBA students at Stanford are going through a transition that involves a step up to the next level in some way. They’re on the cusp of a big promotion, or they’ve launched a startup, or their company just hit some major milestone. Very few, if any, of these people would say that they’ve “made it”; they’re still overcoming challenges in pursuit of ambitious goals. And yet their current success has created a meaningful inflection point in their careers; things are going to be different from now on. The nature of this difference varies greatly from one person to another, but I see a set of common themes that I think of as “the problems of success.” 



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Ed Batista (@edbatista) is an executive coach and an Instructor at the Stanford Graduate School of Business. He writes regularly on issues related to coaching and professional development at edbatista.com, he contributed to the HBR Guide to Coaching Your Employees, and is currently writing a book on self-coaching for HBR Press.

Sunday, December 8, 2013

David Larcker: “Lonely at the Top” Resonates for Most CEOs

Nearly two-thirds of CEOs do not receive outside leadership advice, but nearly all want it.
“It’s lonely at the top” appears to be truer than ever, according to a new study conducted by the Center for Leadership Development and Research (CLDR) at Stanford Graduate School of Business, Stanford University’s Rock Center for Corporate Governance, and The Miles Group. Nearly two-thirds of CEOs do not receive coaching or leadership advice from outside consultants or coaches, and almost half of senior executives are not receiving any either, the survey reveals.

“What’s interesting is that nearly 100% of CEOs in the survey responded that they actually enjoy the process of receiving coaching and leadership advice, so there is real opportunity for companies to fill in that gap,” says David F. Larcker, who led the research team and is James Irvin Miller Professor of Accounting and Morgan Stanley Director of CLDR at Stanford GSB.

“Given how vitally important it is for the CEO to be getting the best possible counsel, independent of their board, in order to maintain the health of the corporation, it’s concerning that so many of them are ‘going it alone,’” says Stephen Miles, CEO of The Miles Group. “Even the best-of-the-best CEOs have their blind spots and can dramatically improve their performance with an outside perspective weighing in.”

More than 200 CEOs, board directors, and senior executives of North American public and private companies were polled in the 2013 Executive Coaching Survey that Stanford University and The Miles Group conducted this spring. The research studied what kind of leadership advice CEOs and their top executives are — and aren’t — receiving, and the skills that are being targeted for improvement.

Key findings from the survey include:

Shortage of Advice Exists at the Top

Nearly 66% of CEOs do not receive coaching or leadership advice from outside consultants or coaches, while 100% of them stated that they are receptive to making changes based on feedback. Nearly 80% of directors said that their CEO is receptive to coaching. “If CEOs are willing to be coached and make changes based on coaching, it stands to reason that companies and boards should make this happen,” says Professor Larcker.

CEOs are Looking to be Coached

When asked “Whose decision was it for you to receive coaching?” 78% of CEOs said it was their own idea. Twenty-one percent said that coaching was the board chairman’s idea. Miles sees this as a positive trend: “Becoming CEO doesn’t mean that you suddenly have all the answers, and these top executives realize that there is room for growth for everyone. We are moving away from coaching being perceived as ‘remedial’ to where it should be: something that improves performance, similar to how elite athletes use a coach.”

Coaching “Progress” is Largely Kept Private

More than 60% of CEOs responded that the progress they are making in their coaching sessions is kept between themselves and their coach; only a third said that this information is shared with the board of directors. “As coaching is starting to lose its stigma, more of this secrecy is being removed,” says Miles. “Although much of the coaching discussion should be treated confidentially,” Professor Larcker adds, “keeping the board informed of progress can improve CEO/board relations.”

How to Handle Conflict Ranks as Highest Area of Concern for CEOs

When asked which is the biggest area for their own personal development, nearly 43% of CEOs rated “conflict management skills” the highest. “How to manage effectively through conflict is clearly one of the top priorities for CEOs, as they are juggling multiple constituencies every day,” says Miles. “When you are in the CEO role, most things that come to your desk only get there because there is a difficult decision to be made — which often has some level of conflict associated with it. Stakeholder overload is a real burden for today’s CEO, who must deftly learn how to negotiate often conflicting agendas.”

Boards are Eager for CEOs to Improve Talent Development

The top two areas board directors say their CEOs need to work on are mentoring skills/developing internal talent and sharing leadership and delegation skills. “The high ranking of these areas among board respondents shows a real recognition of the importance of the talent bench,” says Professor Larcker. “Boards are placing a keener focus on succession planning and development, and are challenging their CEOs to keep this front and center. However, there is still a long way to go in the area of succession planning for most companies, especially as you get further down the reporting structure.”
  
Top Areas That CEOs Use Coaching to Improve
  • Sharing leadership/delegation
  • Conflict management
  • Team building
  • Mentoring
Bottom of the list:
  • Motivational skills
  • Compassion/empathy
  • Persuasion skills
“A lot of people steer away from coaching some of the less tangible skills because they are uncomfortable with touching on these areas or really don’t have the capability to do it,” says Miles. “These skills are more nuanced and actually more difficult to coach because many people are more sensitive about these areas. However, when combined with the ‘harder’ skills, improving a CEO’s ability to motivate and inspire can really make a difference in his or her overall effectiveness.”