Murdoch’s latest leadership lesson

Readers of this blog will know about my interest in observing business leaders and drawing lessons from their behaviour.   In particular I have been captivated by the Leveson enquiry and what it reveals about the Murdoch way of doing business  (see ”Lessons in responsible leadership” 12 July 2011).

Yesterday, during the questioning of James Murdoch, the enquiry demonstrated how carelessly worded private emails can come back to haunt you.  Quite apart from what the evidence shows about the unethical (if not illegal) practices taking place, the emails reveal a complete lack of judgement  and arrogance amongst News Corp senior executives.   They are clearly incapable of behaving ethically, but you might expect senior people to understand the golden rule: Do not commit anything to email that you would not want everyone in the world to read.

And today I have been watching Rupert Murdoch.  It is intriguing – he bumbles and pauses and professes to remember very little of past events.  One wonders how someone with such a bad memory can have built such a powerful empire.  Nevertheless he is bullish and stubborn when he needs to be and has made some astounding statements, for example:  ‘I try very hard to set an example of ethical behaviour’.   If this is true (OK, just try to imagine for a moment), his influence as a leader clearly counts for nothing within News Corp.

We don’t need the Leveson enquiry to tell us that News Corp is corrupt, that phone hacking took place and that senior people at News Corp are guilty of unethical behaviour.  And no one can be surprised to learn that governments are not always impartial in their dealings with big business.  What we are learning is that huge corporations are not invincible.  Even those at the head of the most powerful organisations are capable of foolish errors, crass behaviour, gross lack of judgement  and monumental arrogance.

The leadership lesson?  Business leaders who lack authenticity, moral judgement and a genuine sense of responsibility will ultimately fail.

25-04-12 - Comments Off

Cable reforms won’t change bonus culture

Like many others I have yet to hear any reasonable justification for the extortionate salaries being paid to corporate executives and cannot comprehend the level of pay increases being awarded to some company bosses. The rewards paid, in most cases, appear to bear little relationship to performance or to risk. And even the top earners admit that they are not incentivised by money. Jeroen van der Veer, formerly chief executive of Shell said “if I had been paid 50% more, I would not have done it better. If I had been paid 50% less, then I would not have done it worse”.

But, the UK government’s plans to curb executive pay, announced by Vince Cable today, fail to address the problem and could even make matters worse. Like the measures recently introduced to increase the number of women on Boards, these proposals will change little, they represent unnecessary interference and yet more pointless bureaucracy. The government’s plans include requirements for more pay transparency, diversity on boards, remuneration reports and shareholder voting on pay deals. These policies tinker at the edges of a much deeper issue concerning the nature of organisations and corporate culture. I am sure that most businesses will find ways to get round the new requirements without making any fundamental changes to remuneration systems, management style, values or culture – and that is where change needs to take place. Sadly, organisations that do not truly value integrity, transparency and fairness will not suddenly change their ways as a result of new legislation.

24-01-12 - Comments Off

How to get a return on your (training) investment

A recent article by Robert Terry in the Financial Times (FT) complains that, despite the significant sums spent annually on training and development by companies, very little of what is learnt translates into improved performance in the workplace. Studies shows that only 5-20% of the learning from training has any impact on the business. Given the current obsession with measuring everything against business targets, this is puzzling if not shocking. “Surely” Terry suggests “a training industry that delivers less than 20 per cent cannot be fit for purpose.”

He is right. Much of the training delivered globally, within companies or by universities, is probably ineffectual. Yet still many organisations fail to measure the impact of training on the business and individual performance. Terry suggests that one reason for this is the lack of any participation or involvement of line managers in individual staff development. He argues that managers fail to take responsibility for the learning and development of their staff and should be held to account for the transfer of training to the workplace. Trainers should also be more concerned with the application of training and how it will benefit the business.

As a leadership development specialist I take this issue very seriously and have long been promoting various approaches which help to ensure that companies and individuals get a return on their investment in training and development. First let’s look at business schools and the MBA – generally considered to be the leading international business qualification. I am a strong advocate of the MBA, but, despite the considerable cost of tuition, there is surprisingly little evaluation of how the qualification benefits business or its impact on individual performance. Many employers express the concern that MBA training is too divorced from the reality of business. Some are also reluctant to sponsor employees to take an MBA because of the risk that, once qualified, their employee will be off to find a higher paid job with better prospects. Many companies attempt to manage this risk by ‘tying in’ the employee with a contract requiring them to stay with the company for a certain period after qualifying. Well, it may stop them leaving but does this restraining order really help employers to get the most out of their highly qualified senior staff?

To be sure of a better payback, employers need to take a more considered approach to MBA sponsorship. I have always encouraged employers to address the following questions. Which employees would you select to support through their MBA training and why? How can the business get the best return from investing in MBA training? What are your long term plans for the development and progression of your most talented employees? While these employees are training, or when they are qualified, what new opportunities and challenges are you able to offer them? How will their new learning be applied in order to benefit the business? Dealing with these questions will not only keep senior staff motivated and engaged but will also help to ensure that employers realise the full value of MBA training.

Then there is workplace or corporate training. How do we improve the transfer of learning in this context? It’s true that some managers are too ready to shirk their responsibility for staff development, turning to HR to solve their performance problems with the wave of a wand or the provision of a 2 day training course. When I am asked to provide management and leadership training I spend some time during the planning stage with the CEO, line managers or ideally the management team. The aim is to get an understanding of the business, the people, the challenges they face and any specific performance problems so that I can make what I deliver as relevant and meaningful as possible. I want them to see my participation as an intervention in their company’s business process, picking up on what is already going on and developing ideas and actions for implementation in the future. It is essential to get the manager’s or CEO’s commitment to deal with any follow up and to support further development after my input. That way the training and development doesn’t end when I walk away.

Measuring the impact of training on business performance isn’t easy. But with a considered approach to staff development, the involvement of managers and input from trainers who are concerned with the application of learning, the returns can be considerable.

05-01-12 - Comments Off

The Imposter Syndrome

I heard the term ‘imposter syndrome’ for the first time today.   It described a situation I recognised immediately and have often talked and written about – and I was fascinated to hear that the situation has a formal definition.  The term popped up during an interview with one of the world’s leading astronomers – Dame Jocelyn Bell-Burnell – on Radio 4 this morning.   She described how she pursued a career in astrophysics in the 1960s, struggling to achieve recognition in an entirely male dominated field.   She applied for a PhD post at Cambridge University not expecting to get in and, when her application was accepted, she was very surprised.  Jocelyn Bell-Burnell remembers her first year at Cambridge as a very daunting experience.   She felt she didn’t deserve to be there and, in her interview, talks about ‘imposter syndrome’ as a way of describing her feelings.   To paraphrase Jocelyn’s explanation of the syndrome :  it is experienced by people, mostly women, who lack confidence and who believe that the success they have achieved is the result of some terrible mistake.  The feeling involves a nagging fear that at some point the mistake will be uncovered, revealing the person as an undeserving imposter.  

This feeling will resonate with many women and, perhaps, some men.  To some extent I experienced it myself when I was first promoted to a senior management position.  Despite the rigorous selection process, I couldn’t help wondering whether I got there by luck or by somehow pretending to my seniors that I had got what it takes.  My older sister, a successful occupational therapist and academic, has told me that she occasionally felt like a fraud in her job.  She half expected someone to tap her on the back one day and say “sorry, we’ve just realised you’re not up to this job and you’ve been getting away with it for too long”.     When I am coaching women in senior roles it is not unusual for them to express feelings of doubt about their ability to do their job.  They are also quick to tell me why they are probably not capable of progressing any further.  I rarely encounter a man expressing the same reservations.

Women who suffer from this lack of confidence are often their own worst enemies.  They fail to aim high, underrate their own capabilities and do themselves down in front of others.  I am not suggesting that women should learn how to be more arrogant – it is often the sincerity and honesty of women leaders that earns them respect, trust and success at the top.   Rather I wish that women would believe more in themselves, acknowledge their strengths and realise the positive impact they have in business.    I can well understand Jocelyn Bell-Burnell suffering from ‘imposter syndrome’ in the scientific field in the 1960s.  It shouldn’t still be happening today.

25-10-11 - Comments (3)

Leadership in Action Workshop

“Training intervention that works” – view or download an overview of the workshop below.

Leadership in Action Workshops

21-10-11 - Comments (0)

It’s sales, but not as we know it

Download Free Handout Here!  Top Ten Tips for Winning Clients

I had great fun recently working with an international firm of engineering consultants.   Having survived a painful period of cuts and redundancies the firm was reviewing its strategy and had started  to grow again.  With less staff and a tight job market they wanted to make sure that everyone in the business shared the responsibility for winning and keeping clients.   Achieving this is a challenge.  In this type of company you are dealing with highly qualified staff who are already under pressure; they are mature professionals who are experts in their field.  Mention the dirty word ‘sales’ and they run a mile.  As one rather jaundiced Director told me –  “we don’t do sales”. 

Well, while growing a professional practice is not all about sales, like it or not, sales plays a big part.  However, in this environment the processes behind winning business and the skills involved are different from most people’s perception of sales in the traditional sense.   Crucially, customers are clients and, rather than forcing them to buy something they don’t need, we are helping clients to identify what they need and to find a solution.  Otherwise known as consultative selling, here you are focused on engaging with your clients to establish a long term relationship of credibility and trust.  Put this way, professionals in any practice or knowledge-intensive firm are more likely to respond positively.  “Oh” they say “it’s problem-solving, that’s what we do!”

And there are some specific skills involved in consultative selling which, because you are unlikely to find all the skills in one person,  requires a team effort where every individual makes a contribution.  The ability to network, present, communicate effectively, research, project manage, monitor quality and problem solve are all important.   The good news is that all these skills (including team building skills) can be effectively developed through coaching and training.

I hope you find the handout ‘Top Ten Tips for Winning and Keeping Clients’ helpful.  My engineers did!

06-10-11 - Comments Off

Keeping the customer satisfied

 

UK customers are more likely to complain about poor service than customers anywhere else in Europe.  A study of 11,000 adults across Europe found that 96% of people in the UK would complain if they were unhappy with the service they received.   This compares with the European average of just 67%.

The study, by Kelkoo, found that poor customer service, rude employees, poor quality products and delivery issues were the main reasons for complaints in the UK.  Gone are the days when we would ‘put up and shut up’.  Today’s customers know their rights, they are better informed and have more choice.  And in a highly competitive environment, it is far easier for customers to take their business elsewhere if they are dissatisfied with the service they receive.

So the business imperative for good customer service is clear.   Treat your customers badly and they will complain.  Deal with their complaints badly and they will leave you.  Worse, they will tell others about their bad experience.  

But there’s a positive side to all of this.  First, it’s not hard to get customer service right.  With some investment in recruitment and training, and with committed leadership from the top, you can create the culture, attitudes and behaviours required to deliver great customer service.  Second, all customer feedback (even complaints) is valuable and can be used to inform the development and improvement of your services.  Third, an unhappy customer can be turned into a happy and loyal customer if their complaint is dealt with properly.

I worked with a company recently where most customer contact was by phone or email.   Dealing with demanding, unhappy, confused and angry customers was the responsibility of a busy call centre staffed by a young enthusiastic team.  The team were patient and polite to callers but lacked some of the basic tools and techniques to really delight their customers.  I put together some top tips for this team.   Feel free to download these tips and pass them on to others.  Top Ten Tips for keeping customers happy

In today’s complaining culture it’s unrealistic to aim for 100% customer satisfaction.  But making even the most difficult customers happy is not an unreasonable goal.

26-08-11 - Comments Off

Ten top tips for getting on Board

There has been a flurry of discussion recently around women in the boardroom.  This follows the publication of the Davies Report which called on the FTSE 350 companies to increase the percentage of women at the board table to 25% by 2015.  Currently 18 FTSE 100 companies have no female directors at all and nearly half of all FTSE 250 companies do not have a woman in the boardroom.

The discussions have covered  a range of questions:  Are imposed quotas a good thing? (See my earlier blog.)  Is there any evidence that companies with more diverse Boards are more effective?  Why don’t women make it to the top?  Do women simply have different aspirations and views of what success means?

These are all important questions, but I have seen very little practical advice emerging from the Davies debate.  If a woman is interested in getting a seat on a board, what steps should she take?  Here are some top tips (with thanks to Sue O’ Brien, CEO of Norman Broadbent for her input) .  And guess what?  This advice applies to men too!

• Do some research first.  What industry and types of companies are you interested in joining and in what capacity?   You need to be able to clearly articulate what it is you are looking for before you begin your search.
• Be clear about what you are offering to the companies you have chosen.  Why should they be interested in you?  What can you add to their Board?  What are your distinctive skills and qualities and what evidence can you produce to support your past successes?
• Use Head Hunters to help you in your search.  But be prepared (see above) before you meet them.  They will respond if they can see you have done your homework.
• When dealing with Head Hunters don’t wait for them to take the initiative on the agreed actions and follow up.  You need to do your bit and they will take you more seriously if you are taking the lead where you can.
• If approaching a company direct to enquire about a Board role consider sending  them a short narrative in the form of a bio rather than your CV.
• Protect your CV.  It is tempting to pass on your CV to anyone who looks like they may be able to help you.  But hand it over with care.  Your CV is your brand.  Do you know who it is going to?  How will it be presented?
• Make sure the Board role you are considering or are offered is the right one for you. Does the position really fit with your background and experiences?  What will this company do for you?  Do you subscribe to their values?   Be brave enough to turn the position down if it doesn’t feel right. 
• When considering a role seek out those people who have recently left the Board to see if they’ll chat to you.  You might get a more accurate account of the company from them.
• Don’t under estimate the time involved.  It is hard work if you are going to do a proper job.  Experts estimate that you can expect to spend 25 days a year on Board work as a Non-Executive.
• Network, network, network.  Make it known that you are looking for a Board appointment.  Someone somewhere will be on the look out for talented Board members.

 Good Luck!   If you get the right position it will be a fulfilling and valuable learning experience.

27-06-11 - Comments Off

Business courses fail to prepare young people

Vocational business courses in the UK’s schools and colleges have been largely condemned by an Ofsted report published this week (“Economics, business and enterprise education. A summary of inspection evidence April 2007 to March 2010”).   The Report’s criticisms single out those courses which are heavily dependent on  coursework and internally marked assignments.   It also comments on approaches to assessment as being “rather narrow and simplistic”.   Although students are achieving good results, the quality of students’ work and their knowledge and understanding is weak, the report says.  

“In 30 of the 39 schools, learning was limited by a focus on completing written assignments to meet narrowly defined assessment criteria, rather than securely developing broader understanding and skills.” 

As a result, the report adds

“students often had only vague ideas about the economy, interest rates and their impact, recession, inflation, why prices vary and the ownership of companies.”

 (Ofsted June 2011)

On the one hand the report fails to give credit to the many reputable vocational business qualifications that effectively test knowledge, understanding and practical skills to a high standard.   The Association of Accounting Technicians (AAT), for example, offers qualifications that are relevant to the needs of business and are supported by rigorous assessment requirements.  The AAT’s popularity and growth reflect the qualification’s proven success in helping people to get work, do a good job and progress in their career. 

On the other hand, anyone with experience of the current school system and further education won’t be surprised at Ofsted’s findings.   Business courses which rely on coursework and internally marked assignments are of variable quality.   When struggling with increasing demands on teaching staff,  scarce resources, the pressure to pass more students and a prescriptive regulatory system, colleges will take short cuts and standards will be compromised.      And of course it’s not just business education that suffers.  I remember my son’s remark when he was studying Romeo and Juliet for his GCSE exams.  I asked him what he thought of the play.  ‘Oh we’re not reading the whole play’ he said, ‘we’re only tested on one passage!’.   What a shame that my son and his classmates didn’t get to understand Shakespeare more fully and in a wider context.  How much did they really learn from such a selective approach?  Sadly, this is indicative of the general approach to education at all levels today.   The phrase ‘what gets measured gets done’ springs to mind.

It is a shame that the press seizes on reports such as Ofsted’s to bang on about the general ‘dumbing down’ of education.   It’s not all bad and there are many examples of high quality, innovative courses that buck the trend.   But we must allow educators the freedom, flexibility and resources to develop well rounded students who are prepared not just for their exams, but for life.

Download the Ofsted report here:

Ofsted Report June 2011

10-06-11 - Comments (1)

20 Networking Tips

This week I ran a one day workshop in Stockholm for senior women managers in Pfizer.   The workshop is part of a company-wide initiative to support and encourage women within Pfizer who have leadership potential – a great example of effective talent management.   The subject of the workshop was ‘Visibility & Networking in Pfizer’ and we spent time discussing some common anxieties about networking and how to overcome them.  It was a fantastic day and brought home to participants the value of networking, the importance of making it personal and of nurturing relationships.   What a pleasure to work with a great group of women with plenty of ideas and enthusiasm!  I reckon Pfizer will soon reap the benefits of this particular investment.

Do you need help with networking or some networking tools?  Have a look at my workshop handout ‘JPA’s 20 Networking Tips’ – it’s based on years of experience!

JPA 20 Networking Tips

20-05-11 - Comments (2)