October 28th, 2008
I’ve grown weary of reading the bad news in the print and internet media over the past week (see what I did about it at the bottom of this post). So I decided to look at the Leaders I see in action around me who are writing their own headlines . . .
CEO, CFO review fine print in company’s debt covenants — “No Blindsides.” This is a fast-growing company that risked getting derailed by it’s lenders if certain debt requirements are not met. The minimum ratios seemed almost inconsequential when they were agreed to a year ago, but have taken on new significance in the current credit market. This Leader is taking some dramatic steps NOW to insure the company avoids any pitfalls associated with its working capital.
President manages wind-down of real estate firm; begins planning “NewCo.” This industry veteran of past housing cycles recognizes he needs to be poised when the market regains its footing and plans to be at the forefront of the recovery. In building “New Company,” he draws from the best practices of his old firm and uses this re-creation opportunity to innovate and make it even better.
Technology CEO reassures employees with company-wide e-mail. “So, what about money?” he queries in a Friday afternoon message. “We have improved our own cash position over the last 90 days . . . We have no debt, and we still have a line of credit. We are keeping communication lines open with our bank, our CPA, and our attorney. We have managed expenses, while investing in new business development.” Now there’s a way to intercept those whispered questions and rumors at the water cooler.
Ad Company CEO spearheads industry-wide message of opportunity amidst doom and gloom. Recognizing companies will be spending less on advertising, but they will not stop spending altogether, this Leader is joining with other marketing industry heavyweights to begin changing the conversation about the bleak ad outlook. In a collaborative white paper to be presented at a major industry conference next month, he writes that clients still need to spend on advertising, but those dollars need to be more efficient than ever. This CEO’s actions have energized his employees and given them a renewed sense of purpose amidst the economic downturn.
CEO goes on the road to build business. This CEO, who has a gift for selling, recognized the need to get out from behind his desk and in front of potential clients. Following targeted investment in public relations and social networking which generated new leads, he is knocking on more doors and getting audiences with new prospective clients around the country. He’s bullish about his company’s future.
President shakes up purchasing. This retail president, recognizing that centralized purchasing at corporate had led to excess or irrelevant inventory in his stores, convened a task force of store managers to re-invent the purchasing process. The new system should lead to higher quality, more timely inventory in stores, reducing wasteful markdowns. The store managers, who know their local markets better than anyone at headquarters, now have a voice in choosing the products they are charged with selling. They are more motivated to sell than ever.
Leader doesn’t wait for response, develops Plan B. The Founder of a successful Florida service company has been waiting to hear back from potential investors in a new company that will be an extension of his existing enterprise. With the markets leading many investors to sit on the sidelines, this entrepreneur is developing a significantly scaled back Plan B that will require less capital, but still enable him to expand his enterprise. Instead of wasting several months hoping to hear a “Yes” on Plan A, he’s moving now to develop an alternative that will be more feasible to fund.
Are these Leaders affected by the same news you and I are reading? Of course. But what are they doing to create their own headlines?
They’re refusing to stand still and wait to see what will happen. Instead, they have decided to make things happen — to act, instead of being acted upon.
They are innovating.
They know where they are at risk, and they are managing that risk.
They are keeping their employees informed.
Where necessary, they are quickly moving through the grief associated with unwanted change and taking the next step towards something new.
Make your own headlines here . . . . Leave a Comment on what you’re doing to Lead amidst this ailing economy.
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I have suspended my Wall Street Journal subscription. This isn’t a permanent move — just two weeks. I really enjoy the Journal. But after scanning the headlines in the left column yesterday morning and finding these words . . .
declining
worst
worrying
weakest
fall
massive . . . losses
fall
defaults
largest . . . outflows
slowdown
cautious
. . . I realized my mind needed some new thoughts.
If I am to innovate and adapt in my study and speaking and writing and coaching on leadership, I’ve got to feed my brain with different, stimulating inputs.
So I’ll use the 30-45 minutes I invest daily in reading yesterday’s bad news for some new books that have been resting on the mantle in my office, waiting to be explored.
What are you feeding your mind?
Leave a comment here.
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Tags: bad news, headlines, innovation, Leaders, learning, proactive, risk management, thoughts
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October 29th, 2008 at 10:05 am
Rob
A colleague and I were looking at how people make decisions and we noted that we were surrounded by very rational people doing analysis supporting rational choice. The rational choice model has not always been sufficient for me to explain how and why people make decisions. (I generally want to spend expend more time than my colleagues patience examining the assumptions leading to the rational options.( As David Brooks (NYT) said recently free market proponents assumed rational people would use rational self interest in making market decisions. That assumes that we all perceive the decision environment the same rational way. Brooks argues that it is the perception needing more study–not analysis of options.
My colleague called my attention to a piece — Excellence in Non-Profits (Silverthorne interviewing Leonard; HBS) — where the author states, “you can’t really prepare for turmoil. you just have to adapt to it…. this means that they need to maintain situational awareness.” Something that I understood clearly in the military. Second, he says, is the need to rethink approaches. I generally use the work attitude, as in approach to work, life et al. And third he says is to implement change constantly.
To me then if you open your mind to expect turmoil as a part of the environment then, 1) be deliberate about maintaining SA (question assumptions and perceptions stepping back as you have from the WSJ, look for the unforeseen/unexpected, et al… 2) develop an attitude that is salubriously engaged in trying new approaches (generally we respond to turmoil with a grim [sic] anxious mind). 3) focus on the objective not on carrying the past forward.
Your thoughts probably have caused me to drift from a direct paraphrase of the Silverhorn paper. My point is that I think that your decision to rethink where your were getting your information is right on track. You have also suggested altering your approach to that of a generous spirit and spending more time exploring alternative views and ultimately your perceptions.
Certainly to anyone facing a crisis the above might appear naive. But I would argue that even within the rational choice decision model, we would act with more precision if we better understood how our attitude [approach] affects our perception and selection of facts that we use in the analysis and decision.
Hope things are going well Cheers. — skip
October 30th, 2008 at 12:55 pm
Rob, I have been reading the book The Gift of Work by Bill Heatley. It is his translation of thoughts of Dallas Willard on the spiritual disciplines applied to our work. So far, it has some practical suggestions, but I have been most moved by a quote from Dallas Willard. Willard says, “Work, and on a broader scale, business, is a fundamental structure of love in the kingdom of God.”
And God’s purpose for work is to “bring people together in a loving community for mutual benefit and support.”
In the midst of the turmoil around us, the ability to focus in on our teams to create that loving community seems to me to be essential.
Keep writing!!! Stewart