Feral Jundi

Monday, July 16, 2012

Leadership: Curing CEO-itis And Gaining Fingerspitzengefühl

This is a great article. Professor Michael Roberto gave the heads up about this article and I instantly thought this would be some good stuff for leaders of all levels to check out. It is also some good advice for how management/leaders can gain Fingerspitzengefühl or a ‘finger tip feel’ for what is going on within their company or unit. Below is a quick background on the German term and I think it fits well with what is talked about in the article.

Fingerspitzengefühl is a German term, literally meaning “finger tips feeling” and meaning intuitive flair or instinct, which has been appropriated by the English language as a loanword. In German, it describes a great situational awareness, and the ability to respond most appropriately and tactfully. It can be applied well to diplomats, bearers of bad news, or to describe a superior ability respond to an escalated situation.
The word is enjoying a second life in the English language in military terminology, where it is used for the stated ability of some military commanders, such as Field-Marshal Erwin Rommel, to maintain with great accuracy in attention to detail an ever-changing operational and tactical situation by maintaining a mental map of the battlefield. In this sense the term is synonymous with the English expression of “keeping one’s finger on the pulse”. The mental image given is of a military commander who is in such intimate communication with the battlefield that it is as though he has a fingertip on each critical point, expressed in the 18th and 19th centuries as “having a feel for combat”. -from Wikipedia

I also agree entirely with Professor Roberto’s commentary on the article. That these are some concepts that leaders should be practicing in their formative years so that it becomes ingrained into their psyche and leadership style. Perhaps one day a reader here, that has taken these concepts to heart, will apply them to their command as a CEO of a company? Here is Roberto’s quote:

 I think it’s a terrific list.  Moreover, I think it applies to managers at all levels of an organization, not just at the CEO position.   Front-line managers should also cultivate an objective sounding board, encourage dissent, and surround themselves with talented subordinates.   In fact, if people engage in these practices early in their managerial career, they may be less likely to catch CEO disease if and when they rise to the top.

What also came to mind as I read through this thing is that the CEO of G4S, Nick Buckles, was probably the victim of some of this CEO-itis, or basically was lacking in any kind of finger tip feel for what was going on with their London Olympics security contract. The end result has been disastrous for him and the company, and it is still ongoing.

So here are the main concepts, and I will add some points to them that are relevant to this industry. Also note how many of these tie into the concepts listed under Jundism.

#1 Surround yourself with highly capable lieutenants.

This one is commonsense and you always want to bring folks into your decision making team that are smart and capable. But you also want honest folks who will give you the straight scoop. You do not want a team of ‘yes men’ who will never say no or fear giving their advice or opinion. You do not want clones of yourself either just because then you get situations within a team that leads to confirmation bias or group think. So pick your lieutenants wisely, and that goes from the shift leader looking for an assistant shift leader, all the way up to CEO’s of companies looking for a management team.

#2 Encourage dissent, discourage sycophants.

This one is great, and ties in well with #1 . You want folks who will be honest with you and genuinely care about the success of the company or the mission. You do not want yes men or folks willing to step all over others in order to get to a position– that has your ear. The CEO should ‘trust, but verify’ the quality of their management team. They should actively seek feedback and treat that as gold.

Those who are willing to dissent should be heard, and leaders should have respect for those individuals that actually came forward with an issue. A leader should interpret that as someone who cares enough about the company to actually step forward with a way to make it better.(the courage to do what is right) A leader should not look at that as a threat, or be driven by ego to the point where only they come up with the ‘good ideas’. Good ideas or warnings about issues in the company can come from anywhere and anyone, and it is up to the leaders to make sure they are listening and keeping open to that.

This definitely applies to shift leaders and small unit leaders. You should encourage folks to come forward with better ideas, and actually act on those ideas. (People will support what they help to create), so let them help to create a great team so they can feel  part of the process.

#3 Regularly admit and fix your mistakes.

No one likes dishonesty and no one likes folks that do not admit to when they screw up. Take ownership of your mistakes and then fix them–and learn from them. (Continuously improve)  yourself and the company, and don’t sweep this stuff under the carpet.

As a shift leader or project manager, this rule is very important. If you want folks to come up to you and admit some crucial error, then you as the leader must (lead by example) and show by your actions what that means. This process will allow for honesty to surface, which then leads to getting a better feel for what is going on with your contract or the company.

I imagine with this G4S deal, folks were not willing to admit to mistakes at some point along the line. Because if the CEO of the company only found out about the condition of a poorly run high profile contract like this, only days before the media found out and blew it up, then that says to me that some folks were not keeping upper management in the loop. Or upper management was told, but no one wanted to pass it on. Probably so that their leader(s) they were sucking up to would get the impression that all is well and they are ‘on top of it’. pffffft. In the end, not saying something about it or acknowledging that there was a problem, has led to an even bigger problem.

#4  Treat every employee with respect.

This is a no-brainer as well, but CEO’s all the way down to Project Managers seem to screw this one up. Especially in this industry. Our group is filled with Type A personalities who sometimes think it is appropriate to demand the same respect they got when they were in the military or police or wherever. Actions speak louder than words, and in this industry, it is not about what you used to be, but what you are right now.

Private industry also requires a different type of leadership than what was required in the military or police. When PM’s or others fail to shift gears and recognize this new reality, they quickly learn the errors of their ways. Especially when contractors make the mass exodus from a contract because they were poorly treated or disrespected. Remember, at will contracts go both ways, and contractors will just leave. There is no law requiring folks to sit there and take that kind of abuse.

The other one that project managers especially screw up is ‘leadership by email’. If you are thousands of miles away and sending out emails to folks on contracts, and you have not paid special attention as to what is said in those emails, then PM’s can do massive damage.  They can be insensitive to the particulars of those who are fulfilling the contract in some war zone, they can sound gruff and out of touch, they can actually offend by saying the wrong things, etc. It all leads to the one thing, and that is having respect for those that you are leading out there. If you cannot show that respect in person in that war zone, then at the very least you should work hard to show respect in your emails as you sit in the comfort of your office.

Besides, those emails are permanent records of communications.  If a disgruntled contractor had received a horrible letter filled with disrespectful items, then that thing could be used in future actions against that sender or the company. Or if a leader wrote an email while they were drunk or during a really stressful time period in their life, then like a bullet leaving a gun, that email is effectively doing damage. It does it’s damage well after it was sent and could passed around all over the place. Subordinates will show others these emails, and have proof of how little the company cares or how horrible a leader is. So sending nasty-grams like that are incredibly damaging to a program and the culture of a company.  Don’t do it, and always watch what you say when you communicate with subordinates.

Treat them with the same respect as if you were face to face with them, and use positive reinforcement versus the negative. And don’t lie or keep folks in the dark, because that can be damaging as well. Especially if folks find out through other means that a leader has purposely done those things.

#5 Find an objective sounding board outside the office.

This last one is a good one. Find someone or a group that will keep you grounded. On contracts, it could be a loved one or a friend(s) you talk with via skype. Or if the job is at home, then maybe you have a group you can connect with that is outside of your gig.

Or, if you are on a contract, then find someone there that you can confide in and talk openly. In the military they call this a battle buddy, and not only are they important for watching your back in a war zone, but they are very helpful for when you need to vent about stuff on the contract and mission. Especially if you are a shift leader or PM, all the way up to CEO.

It is extremely helpful to be able to just talk freely and not worry about command presence or being the guy in charge. To have someone that you can just be a normal joe around and use them as a sounding board is great. Leaders are human too, and you definitely cannot be an island. With that said, I imagine Nick Buckles is venting in private with his ‘sounding board’, and especially after the monumental stress of responding to this crisis every day.

You also need a sounding board at the CEO level, just so you don’t get into the idea that you are superior or the company is untouchable or will never fail. One of the comments in the article over at where this was originally published said that CEO’s need someone whispering in their ear, much like the Roman whispering slave during Roman Triumphs. These guys followed behind generals telling them how immortal they were, as a part of the ceremony. (The words that the slave is said to have used are not known, but suggestions include “Respice te, hominem te memento” (“Look behind you, remember you are only a man”) and “Memento mori” (“Remember that you are mortal”-wikipedia).

Pretty cool and let me know what you think? If you are a CEO or former CEO, or if you have had experience at any level of leadership in a organization, I would love to hear your thoughts on this stuff.  –Matt

 

Nick Buckles, CEO of G4S.

 

Finding a Cure for “CEO-itis”
By JOANN S. LUBLIN
July 12, 2012
Warning: You could be at risk of contracting “CEO-itis.”
An affliction of arrogance that plagues many people picked for powerful posts, its symptoms include a tendency toward isolation, belief that you’re smarter than others, preference for loyalists, aversion to changing course even in the face of failure –and love of royal treatment.
It appears to occur when promising managers reach the corner office or other C-suite spots. Once infected, once-successful executives often underperform and put themselves at great risk of early exits, experts say.
In June, John Figueroa quit after 17 months as chief executive of Omnicare Inc. “He believed he accomplished the goals established by the board,” the nursing-home pharmacy operator announced.
But Mr. Figueroa also acted imperiously, ignored suggestions from colleagues, and made extensive personal use of the corporate aircraft, according to people familiar with the situation.
In short, the CEO title went to his head, one informed individual says. McKesson Corp., Mr. Figueroa’s prior employer, had recommended him as a collaborative team player, another person remembers. Omnicare declined to comment.

(more…)

Saturday, July 9, 2011

Company Spotlight: G4S, The World’s Largest Private Security Company

These two deals I posted below are separate interviews, but they give you a good idea where G4S is standing right now. This company is amazingly large and successful. Not only is it the largest PSC in the world, but this company is the world’s second largest employer, right behind Walmart. That is impressive.

The thing I clued into is their business in the Middle East. That Saudi Arabia and the UAE were their top customers. The trend here, is these countries are serious about their security, and threats against oil and business are what drives this interest in security.

Mr. Buckles, whom used to work for Avon as an analyst, also mentioned in the interview the key to success for the company and why he stuck around:

‘The sensible one is that Securicor had a policy of developing internal talent and offering prospects for rapid promotion. But there was also the offer of a Ford Escort. A company car for a young guy was very attractive,’ he says. By 2005, he headed G4S. ‘The rules of best practice are the same for all businesses, including supplying security,’ he says.
‘Take staff with you by rewarding achievement, identify new markets, manage risk while taking up opportunities, understand your customers and have a strong culture of ethical dealing. Applying these principles has been key for me.’

That is an interesting list, and many of these ideas are just another way of saying ‘take care of your people’ and ‘customer service and satisfaction’. But he also focused on managing risk, which is cool. G4S has certainly gobbled up many companies in a short period of time, and because of the current global chaos and government austerity moves, their timing has been excellent. In other words, they positioned themselves with enough services to take advantage of increased security related opportunities. They have also been profitable during a time when many companies in the world are hurting.

And to further the theme of taking care of your people. When G4S goes into a new region, like Latin America, and they become the best paying gig in town, then of course that company becomes the popular choice of the locals. I guess they have learned the lesson of ‘pay better than the next guy, if you want to attract the best’. Which is great, because if you pay peanuts, you will get monkeys. Paying better and good training are both key aspects of keeping your folks happy, along with providing excellent leadership. Here is the quote:

Unlike most FTSE 100 chief executives, Buckles, 50, has responsibility for staff working in high-risk situations, so how does he handle the stress?
Looking relaxed at G4S’s headquarters in Crawley, West Sussex, he says: ‘The best training is provided and every assignment is assessed for risk and ways of minimising it. Pressure comes with the job, but I’ve been in the security business long enough to know the importance of teamwork and good communication to ensure we are on top of every contract.’
G4S revenues rose by 4.7 per cent in the first three months of the year, driven by the emerging markets of Africa, Asia and South America, where demand is rising for expertise in areas such as moving cash, guarding airports and providing personal protection.
In some developing countries we are seen as a stronger force in terms of training and pay than local police and a better option for providing security,’

The mention of South America also coincides with what the Small Arms Survey mentioned about Latin America. That PSC’s there are the most armed in the world, outside of the conflict zones. Security is huge business in Latin America, and especially because of the drug wars and poor economy. Speaking of which, G4S is also active in Iraq and Afghanistan. So they are definitely intertwined in many aspects of the industry.

Of course there are also incidents where G4S has had some hiccups. This is the extreme challenge of the ‘head knowing what the tale is doing’ within such a large company.  For a smaller security company, the ability to manage and watch each contract is a little easier than for a large mega-corporation to do so. Given that set of circumstance, G4S has done remarkably well. That doesn’t mean they haven’t had their share of issues come up, but still, for it’s size and exposure to risk, it has navigated those issues very well. Ask yourself how much negative news you hear in the media about G4S, compared to other much smaller companies, and you can see what I mean?

Finally, the one thing that I think is really important to emphasize, and some companies have a hard time understanding this. You can assemble a great team, pay them well, be an outstanding leader for them, etc., but if you don’t have some kick ass marketing and sales personnel hunting around for new contracts and actually winning them, then the company will not expand and get more revenue. Why is that important? Well, in order to pay those great salaries, offer good training, and attract kick ass leaders, then you need some cash coming in. Malcolm Gladwell identified these folks as the ‘salesmen’ in his book the Tipping Point:

Chapter 2: The Law of the Few: Connectors, Mavens, and Salesmen
The attainment of the tipping point that transforms a phenomenon into an influential trend usually requires the intervention of a number of influential types of people. In the disease epidemic model Gladwell introduced in Chapter 1, he demonstrated that many outbreaks could be traced back to a small group of infectors. Likewise, on the path toward the tipping point, many trends are ushered into popularity by small groups of individuals that can be classified as Connectors, Mavens, and Salesmen.
Connectors are individuals who have ties in many different realms and act as conduits between them, helping to engender connections, relationships, and “cross-fertilization” that otherwise might not have ever occurred. Mavens are people who have a strong compulsion to help other consumers by helping them make informed decisions. Salesmen are people whose unusual charisma allows them to be extremely persuasive in inducing others’ buying decisions and behaviors. Gladwell identifies a number of examples of past trends and events that hinged on the influence and involvement of Connectors, Mavens, and Salesmen at key moments in their development.(from wikisummaries)

 These salesmen are a vital component of any company. To put a former security contractor or a military guy in such an important position is a nice gesture, but if they do not have the talent to do the job, then you will not get the contracts. What you really need is a professional with a gift, who can ‘sell snow to an Eskimo’ as they say. (like maybe an Avon salesman? lol) It also reminds me of a quote that Donald Trump made recently about negotiators. Here it is:

“You know, I can send two executives into a room. They can say the same thing. One guy comes home with the bacon and the other one doesn’t. And I’ve seen it a thousand times. It’s the messenger.”

The question a company should ask is do they have the right messenger, negotiator, or salesman to win that contract for the company and increase that company’s standing in the market? And to bring this back to G4S, they obviously have some very talented people working on this for them. –Matt

NICK BUCKLES INTERVIEW: I deal with trouble in Kabul, Baghdad …and Wimbledon
By David White
18th June 2011
As the world’s top tennis players and half a million fans prepare for the glamour and glory of the 125th Wimbledon tournament starting tomorrow, their safety will be in the hands of Nick Buckles.
‘There will be 700 uniformed staff to search vehicles and bags, check tickets and provide on-court protection and escorts for players,’ says the boss of G4S, the world’s biggest private security company.

(more…)

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