The Happy Burro

A.G. Lafley, recently retired CEO of Procter and Gamble (P&G), is revered as a leader who can stabilize a company in crisis, run a stable organization and take a stable organization to the next performance level.  This is a rare combination and not usually found in just one person.  How did he do it?

“Like Mulcahy, Lafley earned his leadership chops out of crisis, led with a quiet charisma, had a clear focus, and constantly communicated.” – Patricia Sellers writing for Fortune here.

Learning from Crisis

This is where the MBA alone doesn’t help much.  Being tested in times of turmoil, how one handles a crisis, is a bellwether event for a leader.   When an organization is foundering, someone needs to lead people forward.  This includes being completely clear about the seriousness of the current situation, what the future holds, and a clear, flexible plan of how to get there.  Oh, and one more thing: actually executing the plan with fidelity.  Lafley did this not by creating followers, but by empowering leaders.

Quiet Charisma

What are some words that come to mind when asked to describe a great leader?  Tough-minded, driven, hard-working, courageous.  How often do you see these words describe a leader:   Affable, warm, pleasant, likable, outgoing, personable, diligent, methodical.  These are all great descriptors for Lafley’s personal approach to leading.  This isn’t to say he was not tough-minded, driven, hard-working or courageous: these traits didn’t define him.  He led by example versus bravado.

Clear Focus

Once a leader ascertains the situation and defines what the future/success looks like, s/he needs to chart a course for action.  An organization will be crushed by its own weight if too many initiatives and “strategies” are attempted at one time.  Lafley chose, “the consumer is boss.”  Simple, powerful, easy to understand by anyone at P&G at any level.  For the better part of nine  years this was the clear focus for all P&G employees world-wide.  And the employees got it =  Results.

Constant Communication

Every speech, every interaction, every chance: communicate the clear, focused message.  One can never assume that everyone knows what you’re doing, why you’re doing it or when.  If you don’t tell your employees what is going on, they’ll make it up.  Give them the transparent message.  Every time.

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Do your leaders follow these tenets of success? How would you apply this approach in your organization?

Joe Raasch :: Jun.27.2009 :: Uncategorized :: No Comments »

(originally published December, 2008)

Just about every organization in this economy has to learn to do more with less.  Public, private, non-profit: budgets are shrinking across the board. According to CNNMoney.com, over 100,000 jobs were lost in the second week of December (article here). If you are working in or leading one of these organizations, you still have customers that need your services, products and support.  The fact that you have significantly less resources doesn’t mean much to them.  To survive, you need to be better than ever at keeping the clients you have and finding new ones.  Cutting your way to prosperity rarely works.  So how do you accomplish this Herculean task? (hint: it isn’t about focusing on budgets…)

Define Success

Do you have a conference room right now that is packed with finance people, spreadsheets and a line out the door of managers pleading their cases to not have their budgets slashed?  Did the CEO demand ‘across the board reductions’?  Does it appear that everyone is trying to nickel and dime their way to meet budget numbers?

Try this exercise instead: get your senior leaders together and define what success looks like for your organization.  Is it three new products introduced in 2009?  Holding the line on market share?  Increasing enrollment by 5%?  Get that decision and provide guidance for your department managers.

Organize for Success

Have your team look at every department and organize them to specifically deliver on that success.  You may find that you have a few businesses that exist, even profitable ones, that don’t deliver what you say you’re in business to do.  Jack Welch, former CEO of GE, set a goal of being #1 or #2 in every market in which GE had a business – and if GE wasn’t #1 or #2, then fix/sell/close that business within six months.  GE decided that even profitable businesses that did not match the organization’s vision had to go.  What is your business holding on to that isn’t part of the future?

Fund Success

Now we start looking at the budget.  How much does this new world order cost?  If your people were judicious in their work, you should find a minimum of discrepancies in what should be funded.  If they are still holding onto legacy business, unprofitable products or accounts, or programs that do not meet their intended purpose, you have an easier way to give guidance.  Repurpose budget dollars to fund the stated success, and/or increase revenue/donations/partnerships to fund that success.

DEFINE SUCCESS

ORGANIZE FOR SUCCESS

FUND SUCCESS

Joe Raasch :: Jun.27.2009 :: Uncategorized :: No Comments »

I saw this quote posted by Mr. Michael Wade at Execupundit and couldn’t resist sharing it:

Making good judgments when one has complete data, facts, and knowledge is not leadership – it’s bookkeeping.

-Dee Hock

Amen!

Joe Raasch :: Jun.12.2009 :: Uncategorized :: No Comments »