Executives have taken to using the military acronym
VUCA–Volatility, Uncertainty, Complexity, Ambiguity–to describe the
world in which they operate and to ask that question: In a VUCA world,
what’s the point of strategy?
Strategy does still have a purpose, but building one in a VUCA
environment requires more nuanced thinking. And treating those four
traits as a single idea leads to poorer decision making.
Watch and
listen as Nathan Bennett provides a framework, first featured in an HBR article, for how you should deal with a world that includes V, and U, and C, and A.
President and Chief Executive Officer at Fannie Mae
Over
the course of my twenty-five year career in the financial services
industry, I’ve learned that the path to progress often entails
navigating uncertainty. Countless variables contribute to day-to-day
uncertainty for management, employees and outside stakeholders—from
business changes to personnel transitions to economic instability. When
facing such challenges, leaders must proactively and transparently steer
their organizations toward progress.
I joined Fannie Mae in 2009
when the company was in crisis, as was the entire U.S. housing finance
system. When I assumed the role of CEO in 2012, I focused on forging an
“all in” mentality that would unite staff through a common purpose. By
connecting the value of our individual and collective contributions to
the organization’s overarching mission, we could create a North Star to
guide us in a positive direction.
As I continue to lead Fannie Mae
through a period of transformation, maintaining an “all in” mentality
remains one of my top priorities. Here are three cornerstone elements
for adopting this approach:
1. Define Your Organization’s Purpose
During
times of business uncertainty, leaders must clarify and reinforce an
organization’s purpose to employees. Everyone should realize the
long-term mission and understand how they contribute to it. As an
example, I always remind my colleagues that we are working to ensure
that people have access to affordable housing as well as options that
enable them to stay in their homes. Defining organizational purpose may
seem obvious, but consistent reinforcement can support crisper execution
and improved morale at all employee levels. Everyone should know that
they are contributing to the organization’s success.
2. Measure and Highlight Success
When
an organization is navigating uncertainty, it is the most important
time to measure and highlight the results generated by employees. Help
them visualize how their individual contributions are making an impact.
This not only supports morale, but also provides a subtle reminder that
everyone is accountable for results.
At Fannie Mae, I want my
colleagues to see how their collaborative mindset is tangibly supporting
our mission. We regularly provide internal updates on the goals we’ve
established together. We also share external Progress reports and resources so outside stakeholders can track our progress.
3. Communicate Transparently
I’ve
found that transparent communication is the lifeblood of a successful
organization, particularly while coping with uncertainty or operating in
a transformative period. Leaders need to communicate frequently and
openly with employees about strategy, expectations, goals and any
challenges that they are anticipating. The key is to earn the unified
support that a leader undoubtedly needs during uncertain times. If
leaders want commitment and loyalty, they need to establish a
relationship with employees through an open dialogue. This can be
facilitated through town halls, blog posts, video updates and everyday
interactions.
Our “all in” mentality at Fannie Mae is forging a
pivotal and significant change across the organization. The positive
steps we’ve taken in recent years are simultaneously positioning us to
support America’s housing recovery and help create a more sustainable
housing finance system for tomorrow. My colleagues and I are proud of
the strides we’ve made as a team.
I look forward to sharing more business perspectives and updates on our progress in future posts.
Posted by:
Timothy J. Mayopoulos
To thrive and survive the maelstrom requires more than greatness from the individuals entrusted to lead in this type of world.
“Great” doesn’t cut it.
We need leaders that are stand-outs; people who cannot be compared to others because their distinctiveness defies any standard.
Here are 10 practical and proven attributes of the stand-out leader that I have discovered:
The stand-out leader:
1. Creates discontinuity
in the organization to create opportunities for competitive advantage
and growth. They are not content with managing the momentum of the
business.
They cause interventions that force people to challenge the
status quo and think differently. They don’t wait for a reason to
change; they “force” change and make it integral to the organization’s
DNA.
2. Does not tolerate sameness. They ask “how
can we be different?” rather than “how can we copy the best in class?”
And they accordingly change the conversation throughout the
organization. Products, customer processes, strategic alliances, new
technology are all created to move out of the competitive herd.
They seek ultimate uniqueness for the organization by creating their “only” statement: “We are the only ones that...”
3. Loves uncertainty
and communicates it to all employees. They recognize that certainty is
reserved for the naive and that it is an exceedingly risky proposition.
Believing that things will settle down raises unrealistic expectations
and places everyone at risk.
4. Preaches imperfection
and encourages it. They understand that perfection doesn’t exist in
business and while people covet it, they are standing still. Energies
are directed to doing a lot of imperfect stuff as the way to establish
and maintain market leadership.
5. Learns voraciously
and continuously. They totally get that what got them here won’t get
them to where they need to go. Their value to the organization is based
on the new stuff they learn and apply.
6. Micro-manages
the customer moment. They are customer “addicts” and understand that
paying attention to the smallest detail is essential to delivering a
memorable customer experience. They are actively engaged with designing
what customer interactions look like and walk around the workplace
coaching and mentoring to ensure that moments are delivered to ‘wow’
customers.
7. Serves people not commands them to
action. They ask “how can I help you?” rather than chirp “do this.”
Stand-out leaders bash internal barriers to progress and make it easier
for people to get their jobs done. They subordinate themselves to the
frontline and don’t delegate the job of improving performance where
customer meets company.
8. Tells amazing stories.
They are the consummate story-teller, breathing life into the
organization’s strategy by providing examples of successful execution.
Their stories are rich with visual language intended to not only excite
people on the strategic journey they are on, but also to teach the
behaviours expected of each person.
9. Makes it clear
what each person has to do to play an integral role in executing the
organization’s strategy. They constantly and passionately communicate
the organization’s vision and strategy to capture the hearts as well as
the minds of people. They use face-to-face venues to give everyone an
opportunity to ask questions and clarify where the company is headed.
10. Is obsessed with execution.
They understand that execution equals strategy and that flawlessly
executing a “just about right” plan beats a “perfect” plan that can’t be
implemented. A leader focused on execution tries their best to
anticipate future trends and the changes likely to effect their
organization, but they excel at responding to the random and the
unexpected. They are a master of “Plan B.” They constantly follow up and
monitor the execution of the company’s strategy and take corrective
action to get it back on track.
The stand-out leader is not “great;” they are unforgettable, distinctive, outlandish, memorable, mind-blowing and contrarian.
And stand-outs are rare: Steve jobs, Tony Hsieh, Walt Disney, Jerry Garcia and Richard Branson are a few that I would tag.
Do
yourself a huge favour. Acknowledge what you need to be great, but set
your sights higher to be a stand-out leader. Organizations need you to
‘take their breath away.’ Start now. Ponder no longer.
Roy Osing (@RoyOsing)
is a former executive vice-president of Telus with over 33 years of
leadership experience. He is a blogger, educator, coach, adviser and the
author of the book series Be Different or Be Dead, dedicated to helping organizations and individuals stand out from the competitive herd.
