Art Petty on Management

Living, Learning and Leading in an Increasingly Virtual World

Somewhere between the world I grew up in and the world that we are living in today, everything about working, leading and learning began to change.  It’s increasingly a virtual world, and everything about communicating, interacting and developing relationships feels a bit different than it used to.  While many/most of us are compliant with the changes in communications (telex to fax to e-mail to IM, web conferencing etc.), I wonder how many of us are truly working to become competent at living and working in this world. 

Over the past few weeks, I’ve been reminded of the changes in how we live, learn, earn and engage, and I’m working hard to adapt. 

• A valued colleague sends me a note expressing frustration over the challenges of leading remotely.  I can’t believe I haven’t spent more time on this valuable topic.  Stay tuned.

• I delivered a webinar and I realized that I have to get better at communicating without interaction.  I’ve set a schedule to begin doing some of these blog posts as podcasts as a means of increasing my comfort and competence communicating to an invisible audience.

• I signed up to teach an on-line course expressly for the purpose of discovering what it means to “teach” on-line.

• My kids don’t use their phones for talking.  If I want to reach them, I send a text message and get a response practically before I’m done typing.  (I saw this coming a few years ago when I asked my youngest son why he never calls friends on the phone.  He looked at me kind of funny and said, “Why would I want to talk with one person when I can be on-line with all of my friends at the same time.”)

• An article at Fast Company indicates that in the next few years, technology will obliterate the need to travel.  (Hmmm, I'm suspicious of the word obliterate.)

• I am busy working on an on-line content strategy to augment my own face-to-face seminar/workshop activities. 

The common thread in all of these items is the shift in how we work, lead and learn.  Like it or not, the world is becoming more and more virtual everyday, and those of us that are old enough to remember life before fax machines and e-mail will be well-served to quit fighting the trend and start learning how to become competent and comfortable communicating to no-one and everyone at the same time. 

It was just a few years ago that I received my first request to fund an employee’s pursuit of an on-line degree.  I am a staunch advocate of the importance of the face-to-face network developed at school, especially for MBA students, and while I approved the request, I recall challenging the value.  Since that time, I know of dozens of professionals that have had great experiences earning degrees on-line.  I still question whether there is any chance that you can develop a close network in that manner, but hey, this is the era of Facebook, MySpace and LinkedIn, where it is seemingly more about contacts than close relationships.  (I’m still suspicious of that premise.)

One of the critical leadership skills of our time is developing comfort and competence at leading distributed teams.  There are still some firms that insist on their managers and leaders being housed within a line of sight, but they are showing their lack of understanding of how the world is changing.  The literature on leading remotely seems to offer superficial guidance from people adapting old models to new situations.  I suspect that as time moves on, the profession of leadership will evolve to take into account the very distinct skills and approaches needed to lead effectively while never coming into personal contact.  (As a side note, I deal with many people on the receiving side of remote leadership.  At best, the leader to employee relationships they describe are superficial.  We haven’t figured this one out yet. )

The Bottom-Line for Now:

The difference between compliance with new technologies and new styles of communicating and competence at leveraging these tools and styles for results is significant.  Deriving value from virtual leader/employee relationships or on-line learning is a very different task for all parties involved than it was in the almost bygone era of face-to-face.  It’s time to quit fighting the changes and learn how to master the new opportunities to engage.  I still struggle to see how these new methods will replicate the richness of face-to-face communication, but that’s my problem to deal with as the world keeps changing.  In the meantime, if you are looking for me, don’t call…I’m busy learning how to communicate all over again.

Decision-Making and The Three Rules of Risk Management

Your decision-making style says a lot about you as a leader.  Some people make a lot of decisions with little more than a gut hunch to guide them and others spend a lot of time gathering insights and information to support their decision.  Others struggle to make decisions on anything and might still be considering what to order for breakfast when it’s time for dinner.  And still others avoid making decisions because taking a stand increases the odds that they will be held accountable for results.  

Our decision-making style is driven in large part by our tolerance of risk, something that can change based on many personal and professional circumstances.  An executive guiding a turn-around might operate with a high-degree of risk tolerance, while a project manager leading a construction project might have a much lower risk tolerance.  First-time leaders might not have formed a solid decision-making style and might process risk at a slightly more conservative level than how they perceive their direct manager dealing with it. 

A participant in a recent leadership workshop that I conducted offered up the Three Rules of Risk Management that she learned from her father (an engineer).  I am grateful that she shared and appreciative of the wisdom her father passed along in these simple but powerful rules.

The Three Rules of Risk Management

1. Don’t risk more than you can afford to lose.

Good advice for corporate leaders, mid-level managers and everyone in their personal lives.  Determining what you can “afford to lose” is of course the key issue here, and sometimes not so easy to calculate.  A patient requiring a heart-transplant to live has one definition and a single parent that needs a paycheck to feed his family has another.  It’s OK to agonize over this one a bit…it is the foundational data point of the Three Rules.

2. Never risk a lot for a little.

Common sense, yes, but I see this one violated everyday. People risk their credibility arguing over who’s right and who’s wrong on small issues.  Boards and executive teams pursue ill-conceived acquisitions based on questionable assumptions.  Marketing and development teams invest heavily in new products without a good understanding of the problem they are trying to solve for their prospective buyers. The operative issue here is defining whether the perceived end game or outcome is worth a lot (usually the assumption) or some fraction of a lot (usually reality).  Align risk with the true definition of the outcome.

3. In general, take the risk if you can affect the outcome.

In my opinion, this is the most profound of the three rules, and another point worth agonizing over as you formulate your decision.  Hoping that the dice roll your way is what helped build all of those grand palaces in Las Vegas.  You cannot control the dice…they have a mind of their own, and in a business environment, hoping for the market to move your way is a guarantee that you will make your better-prepared competitor rich.  You cannot affect the outcome of most situations at 100 percent, so once again, you are left to sort what you can control and what is beyond your control.  This rule guides you to accept risk if you can control a significant portion of the outcome. 

The Bottom-Line for Now:

Learning to think through your risk-environment can help you make the right calls on the tough issues.  The Three Rules are not a silver-bullet, but they do offer a simple framework for mentally processing the implications of a decision. 

In general, I’ve found that most people prefer working for leaders that make a lot of decisions and that make decisions quickly.  Certainly, a leader that is slow to make up her mind or that will never make a decision has an adverse impact on her team and her organization.  Alternatively, a leader that is too fast to decide or that decides more on a hunch than a good understanding of the facts, issues and risks, is prone to making significant mistakes as well.  The trick is finding the right balance, and balance is about understanding and measuring your risks against possible returns.  Use the Three Rules to find the right risk/return balance for your decisions. 

Help Wanted: Great Leaders to Solve Vexing World Problems

This is what I describe as a boil-over post—short on useful advice and long on observations about the obvious.  I usually shy away from commenting on the world scene, however, I'm breaking form today. 

As is my habit on gorgeous Mid-Western U.S. mornings (that's for all of you folks all over the globe that love to point out the temperature differentials to me in February!), I rise early, grab a quick cup of English Breakfast Tea, glance at the Wall Street Journal and then jump on my bicycle for my wake-up workout.  I suppose this morning's paper is not much different than every other paper for the last few months, but as I said, this is a boil-over post: it's been simmering for a while.  My positive spin on the over-abundance of miserable news is that this is a great time for leaders everywhere to ply their trade and show the world what they are made of.

Just a few of our very visible and very important "leadership" opportunities:

The Economy.  The Federal Reserve Chairman, Ben Bernanke has perhaps the worst job on the planet right now.  In what is looking more and more like a perfect storm, the Chairman must simultaneously deal with the still-unfolding housing crash, the implosion in mortgage financing, the wholesale failure of some of the planet's alleged smartest financiers to do anything right (think Bear Sterns), record oil prices, a record low dollar value, the specter of inflation and general weakness in many U.S. and global markets.  Perhaps the only thing more complicated than the macroeconomic environment is the weather.  Oh yeah, if Chairman Bernanke's daily dilemmas aren't tough enough, spend a few minutes listening to the windbags in Congress posture while they attempt to blame him for everything, including the '29 crash.

U.S Auto Manufacturers.   The headline I want to see is: U.S. Auto Executives Fired En Masse for Arrogance, Idiocy and Forgetting to Diversify their Product Portfolios.  What is galling to me is that these executives had clear visibility into competitor strategies as well as the bigger picture of energy and oil.  Did they really expect to live on the profits from the SUVs and Trucks of the '90's forever?  Killing an industry should be a crime punishable by ample jail time.

U.S. Airlines (except for Southwest).  Most of my work is in the Chicago-area, so I've avoided flying for a while.  A good friend of mine described his recent experience on a major carrier as: "something out of a movie shot in a third-world country."  In a bold stroke, most major U.S. carriers (except Southwest) have decided to bet their survival on making an already lousy experience miserable.  I wonder what happened to the memo that said that if we serve our customers and give them great reasons to use our services, they will help us weather the storm.  Jail time for these execs as well.  It's time for some fresh approaches from new leaders interested in running businesses that serve customers.

Iraq.  Absolutely no joking here...U.S. soldiers and Iraqi civilians are losing their lives.  This situation has serious repercussions for the U.S. and for the Middle East for years to come.  The next President will be saddled with resolving (hopefully) this nightmare.  There are encouraging signs, but it is a complex situation.  Kudos to the military leaders on the ground and the brave citizens that are working towards a self-governing, democratic Iraq.

Iran.  Hmmm, if this situation wasn't complex enough, the leaders in this country seem to relish their ability to destabilize. 

I could keep going, but I won't.  It's time to stop, with just one other light by comparison leadership dilemma: Brett Favre.  As I'm writing this, my oldest son is listening to ESPN reporting on the Brett Favre saga.  Put yourself in the shoes of the Packer's GM, Ted Thompson, who has to decide whether to fire this remarkable Wisconsin (via Mississippi) hero or bring him back and let him play in spite of having moved on once Brett announced his retirement a few months ago. 

I do have some advice for Ted Thompson, and it is based on the track record of Jerry Krause, the former Chicago Bulls General Manager who once indicated that one of his major goals was to build a championship team without Michael Jordan.  How did that work out, Jerry?

The End of the Rave For Now:

Tough times and challenging circumstances provide outstanding opportunities for leaders at all levels to test their mettle and gain valuable experience.  There have been few times in recent history with this number of complex challenges staring at us in everything that we do.  As individuals, we cannot solve these issues alone, but we can hold our leaders from local politicians to congress and the next President accountable.  We can make good decisions with our finances, demand accountability from our elected officials and challenge the leaders in our businesses to do more than focus on the short-term.  We can support our troops even if we disagree with the policies, and we can cast our vote this November.  It's a great time for leaders everywhere to stand up and be counted.

Leader: What's Your Strategy for Managing Your 30 and 40-Somethings?

After too many conversations to count with talented individuals in their late thirties or early forties that are asking, "Is this it?" about their professional lives, I am compelled to offer some advice for their leaders.  I'll start with: "Wake Up and Pay Attention!"

Professionals in this age range are at a critical juncture in their careers.  They are experienced, hard working and confident in how to contribute.  They've made and learned from many of the mistakes of youth and they've begun to develop something so critical for organizational success: wisdom based on experience.  They've also generally decided what motivates them, what they like in a leader, the type of work that they are best at, and that life is too short to spend time in the wrong place or working for the wrong person. 

The common theme that I am hearing in my discussions with these talented and motivated professionals is frustration over the inability of their superiors to leverage their skills and experience.  It's not a whining theme...it's an "I am capable and experienced and want to be treated as such and contribute more" lament.  It is very different from the whining that many people engage in about the person that they work for. 

Comments include (paraphrased):

Instead of the challenges that we talked about when I interviewed, I jumped in to fill a gap in operations and now I can't get out of this mundane role.

The charisma of the CEO during the interview process is gone now that I'm an employee.  His general response to every idea or suggestion is anger.

They didn't need someone with my experience, they needed a college graduate or someone fresh out of the service that wouldn't know any better about constantly having orders barked at them. 

There's no reward in this work.

I've been doing the same basic things for 20 years...it's boring and I can't take it any more.

They need to decide if they are going to use me or they will lose me.

My life is racing past me but my career is stuck in futile mode.

I kept offering to help on the big issues and I was told I was overstepping my boundaries so I gave up.

And so on.

The Leader's Suggestion List for Managing 30 and 40-Somethings:

• Recognize and leverage the growing need of people in this age range to contribute at an increasing level.  Figure out how to do this and watch the accomplishment list grow.

• Design positions and assignments that are challenging and provide these professionals the latitude they need to succeed.

• I've noticed that after 15 years of working, many professionals develop a hunger for learning.  Feed this hunger through professional development and even better, feed the hunger and leverage the experience by asking these professionals to teach in the organization.

• Work on your self-awareness and emotional intelligence.  Frankly, you shouldn't treat anyone by typically responding with anger as was cited above, and especially don't treat experienced professionals like that and expect to keep them. 

• Provide opportunities for mid-career professionals to mentor younger employees.

• A few months after hiring an experienced professional, sit down and genuinely seek their input and perspectives on issues and improvements.  Let them take ownership of some of their ideas and drive the improvements.

• Use judo on the situation and let the individuals set their own stretch goals. 

• Tune in to an individual's mid-life career objectives and work together to develop a program that supports achievement of those objectives.

• Match mid-career professionals with both early-career and nearing retirement employees to collaborate on problem solving and project development.  The mixing of the generations is beneficial for all parties involved.

The Bottom-Line for Now:

As a leader, you cannot afford to allow the best, brightest and most-experienced employees to feel detached and unmotivated.  I suspect that more often than not, you as the leader have a hand in creating this problem, and you definitely can help solve it.  It's time to sit down, talk and most importantly, listen to what your thirty and forty-somethings have to say.  These are the leaders in your immediate future.  Don't come up short just when these talented professionals are ready to pay off. 

Read Any Good Cultures Lately? Honing an Essential Career Skill.

Every organization has a distinct culture defined by its history, norms, values, and behaviors, and every team in an organization develops its own subculture.  Learning to read a culture and adapt your style to fit (or at least complement it) is essential to success regardless of your level or role.  It's also something that can be honed as a skill through increased awareness and consistent application of a few basic approaches.

The Meeting is Never for Decision-Making: A Product Management Lesson I Learned at Matsushita

I will be posting from airport lounges this week, but before I head out, I wanted to relate a lesson about decision-making that I learned (the hard way) a number of years ago.  This was prompted by a discussion with a promising early career product management professional, "Bob," that had expressed frustration at the way decisions were reached in his company. I think that the lesson still holds today.

Grace Under Pressure: A Great Leadership Opportunity

In the spirit of full disclosure, I'm currently off on a holiday with my oldest son.  We escaped the frozen, snow covered Midwest for some sun and fun.  We attended the finals of a tennis tournament yesterday, played a few hours of tennis today and got a bit too much sun.  Tomorrow we are off on a mountain hiking adventure.  Great time together with my son and my brother and his family.

Unfortunately, our home away from home has internet connectivity, so while my 19 year old is napping after beating up on me on the tennis court, I couldn't resist taking a few minutes to jot a quick post about my observations on some of the behavior under pressure that I observed from the pros at the tournament that we attended.  There are at least a few observations applicable for leaders everywhere.

Do You Know Why Your Talent Is Walking Out The Door?

Bob is leaving behind the business that he helped start and grow and save and grow and sell and sell again, and no one in BIGCO cares.  Frankly, no one in the upper ranks even knows that he exists.  The dirty little secret: he's just another faceless number on a spreadsheet and his departure will improve the expense to revenue ratio, and solve an annoying compensation problem in this now remote outpost of BIGCO.  Bob is in the prime of his career, an expert and one of the last shreds of the soul of a great business.  Bob is relieved to be moving on, but to BIGCO, it's not even noticeable.  Good for Bob.

There's more.

Leader, How Do You Recharge?

This is my "back to work, I'm not ready for anything too serious, but I have a message for you," post.

I just returned from a trip to a warm locale (at least it was warmer than Chicago!), and had a great opportunity to mix a few great days of business with a long weekend with family and friends.  A long weekend can barely be called a vacation, as my European friends are apt to remind me.  Nonetheless, it was a great few days to shift mental gears, play with my new nephew, sample some great local restaurants and even spend some time with a quality Ken Follett spy mystery.  The six inches of new snow and malfunctioning snow blower were a cold slap of reality this morning, but I suspect that I still benefited from the mental downtime of this trip. 

Merger Reality-Trust Your Gut, Not the Press Release

If your company is involved in a merger, there is one certainty.  Everything will change.  Regardless of the carefully crafted words in the press release.  (Unless of course your company is being purchased by Warren Buffett, who is famous for only buying well-running companies and leaving them alone to run well.)

During the past few days, I talked with two associates going through mergers in very different industries, and both were attempting to convince themselves that things would be fine following the merger.  They both cited the "no expectations for layoffs"  verbiage in the press releases announcing their deal, and both engaged in some self-rationalization about the importance and "safety" of their respective departments.  My instinct was that neither individual truly believed what they were saying.  They should trust their gut on this issue.