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LEADERSHIP IS A PROCESS OF SOCIAL INFLUENCE, WHICH MAXIMISES THE EFFORTS OF OTHERS TOWARDS THE ACHIEVEMENT OF A SHARED GOAL.

Wednesday, April 21, 2010

Managing in an Era of Mistrust

A new Maritz® Poll conducted by Maritz Research, a leader in employee satisfaction research, paints a dire outlook of American workforce attitudes toward employers.

US employees’ trust toward their workplace has taken a severe hit, with employees across all industry segments citing a lack of trust in not only senior leaders, but direct managers and co-workers as well. 

According to the poll, few (11 percent) employees strongly agree their managers show consistency between their words and actions. In addition, only seven percent of employees strongly agree they trust senior leaders to look out for their best interest, and only seven percent strongly agree they trust their co-workers to do so. Approximately one-fifth of respondents disagree that their company’s leader is completely honest and ethical, and one-quarter of respondents disagree that they trust management to make the right decisions in times of uncertainty. While workplace trust has been dwindling since the Enron, WorldCom, and Tyco scandals of the earlier part of the decade, threats of layoffs and downsizing have only exacerbated the problem.

For more, see - http://ow.ly/1yr6W

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Leading in Rough Seas

Victor Fung of the Li and Fung Group (the Chinese multinational founded in Guangzhou in 1906) summed up well the sense of the kind of change we face today:

‘A lot of people say, hey, this is a once in a century type of problem. We haven’t had anything like this since the 1930s. You hear all these statements, and they seem to imply that this is once in a lifetime, after I get through this one, boy, am I glad I will never have to face this again. But I’m not so sure. I think we are seeing both the compression of cycle time – how quickly the cycles come and go – and also the amplitude of the swings getting more and more severe. The world has fundamentally changed.’

This type of change requires a special kind of leadership. In Leading in Turbulent Times (Financial Times Series), Kevin Kelly and Gary Hayes have collected the lessons learned from over thirty CEOs, Chairmen and other senior executives who are prevailing in spite of a challenging environment. It’s a valuable look at how some frontline leaders are finding the right balance between seizing the opportunities as they present themselves and managing the accompanying risk. 

Rather than typical conversations focused on financial matters, Kelly and Hayes found that three strong messages emerged from their interviews:

Passion Rules – these leaders are driven by a real passion for their business, their organisation and the people they work with.

Hard Times Call for a Mastery of Soft Skills - especially communication but also empathy, mentoring and coaching. (“This is a timely reminder that cost control is a business basic, but extracting great performance from people is always based on more complex and subtle motivational tools than pure fear.”) A CEO in Germany observed that whenever a leader talks about change, employees always expect the worse. Learning to motivate and engage people in spite of the crisis becomes critical.

Think Long Term – these leaders refuse to bow under immediate pressure. They use short-term pressures to harden their focus on long-term objectives.

Infosys CEO Kris Gopalakrishnan says, “We need to be much more flat, creating a collegial team-based leadership style so that you can leverage a lot more of people’s intellects and capabilities and make them participate in decision making.” This requires a level of social skills that hasn’t been demanded of leaders in the recent past and so this also necessitates a lot of learning-as-we-go. At the same time we have a more educated workforce that brings with it other issues that require fresh approaches. Henry Fernabdez, CEO of MSCI Barra observed, “They figure things out very quickly. They tend to be more open to change but, on the other hand, they’re smart and can become cynical and harder to change.” As a result, the job of leadership is changing.

Through revealing and personal interviews, Kelly and Hayes have analysed the current situation beginning with how to recognise the early signals, mobilising people to act, navigating a new course, preventing "mutinies" by engaging the resistors, and learning to be flexible in the face of the unpredictable.

To live in these turbulent conditions requires that you dig deep. Leaders need to develop and constantly improve; a deeper self-knowledge; new perspectives. As they note, this isn’t easy. “It is a bit like trying to get fit when you are in the middle of a title fight.” A positive mental attitude is critical says Mark Frissora of Hertz.

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Confidence and Poise

Confidence and Poise are two values of Positive Leadership.

‘No man can make you feel inferior without your consent.’ Eleanor Roosevelt

‘Respect without fear, confident not cocky. May come from faith in yourself in knowing that you are prepared.’ John Wooden

‘Just being yourself; being at ease in any situation; never fighting yourself.’ John Wooden

Here is a reference material which speaks to these values:




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