Archives For Organizations

Bill George, professor of management practice at the Harvard Business School and former chairman and CEO of Medtronic, has identified 7 Lessons for Leading in Crisis. Leading in a crisis is often the greatest test of leadership. George observes:

“In Chinese, the character for the word crisis is made up of two symbols, danger and opportunity. That’s exactly what it represents for you as a leader. Although there is always the danger of failing, guiding people through a major problem is your best opportunity to develop your leadership. That’s why I recommend that young leaders get down on the playing field early in their careers rather than commenting from the press box.” (p. 4)

Although none of us want a crisis, the truth is most of us will one day find ourselves leading through one. George’s seven lessons provide a valuable roadmap when that day comes.

1. Face Reality, Starting with Yourself - George acknowledges that this is the most important lesson. A crisis cannot be solved without acknowledging that it exists and being honest about your role in creating it. Furthermore, leaders are responsible for getting the rest of the team to acknowledge the crisis so that appropriate action can be taken to resolve it. At Medtronic, George would tell his team, “You’ll never get fired for having a problem, but you will get fired for covering one up. Integrity is not the absence of lying. Rather, it is telling the whole truth, so that we can gather together the best people in the company to solve the problem” (p. 23-24).

2. Don’t be Atlas; Get the World Off Your Shoulders - Leaders cannot face or navigate a crisis alone. They must have a rock solid team in place so they can resolve the crisis with the greatest level of precision, expertise, and effectiveness. George wisely observes, “By the time you are facing a crisis, it is too late to form your support team. The time to do so is when things are going smoothly” (p. 38). To further avoid the “Atlas” mentality, leaders must build resilience into their lives by keeping their body in shape, their mind sharp, their spirit high, and not taking themselves too seriously.

3. Dig Deep for the Root Cause - A problem is not always what it appears to be on the surface. Because leaders have a bias toward action, it’s easy to solve surface level problems rather than digging for the root cause. George observes, “If you surround yourself only with positive people, your team may reinforce your natural instincts to solve the problem before it is fully understood” (p. 47-48). To get to the root cause, leaders must ask “probing questions” so they don’t create “superficial solutions.” Time is of the essence when crisis hits, so it’s easy to stop digging for root causes. Leaders must keep wide open communication channels as their teams work together to get to the cause. Failure to do so will only lead to bigger problems with unintended consequences. The leader’s role is to “bring people together to confront their worst fears and address the risks” (p. 59).

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Jim Collins and Morten Hansen have written a book titled, Great By Choice in which they explore three behaviors that allow companies and organizations to thrive in chaotic and uncertain environments. I wrote about the first behavior, FANATIC DISCIPLINE, and the second behavior, EMPIRICAL CREATIVITY. In this post I’ll tackle the third core behavior employed by what they call “10x companies”: PRODUCTIVE PARANOIA.

Collins and Hansen make it clear: “The only mistakes you can learn from are the ones you survive” (p. 91). The idea of Productive Paranoia is not for leaders to walk around scared, afraid to make decisions and suspiciously paranoid about their employees. Rather, the authors note that leaders in the 10x companies constantly ask “What If.” They state, “The 10x winners in our research always assumed that conditions can–and often do–unexpectedly change, violently and fast. They were hypersensitive to changing conditions, continually asking, ‘What if?’” (p. 91)

Collins and Hansen examine three dimensions of productive paranoia employed by 10x organizations:

1. Build Cash Reserves and Buffers - Companies rarely hoard cash but rather deploy it, working hard to take advantage of new opportunities. However, the 10x companies were careful to build cash reserves and create a buffer against unpredictable environments. They were careful to prepare for the worst before it happened. This was a pattern since the early days of the 10x companies. Collins and Hansen observe:

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In my last post, I shared lesson #1, FANATIC DISCIPLINE, from Jim Collins and Morten Hanson’s book, Great By Choice. It’s the first of three core behaviors that mark the 10x companies shared in Collins and Hanson’s latest research. The second behavior that allowed 10x companies to thrive during chaotic and uncertain environments is EMPIRICAL CREATIVITY.

There is a common perception in leadership that innovation is the key to success. Or, put more plainly, the more innovative you are, the more successful you’ll be. However, Collins and Hansen discovered a different reality:

“The evidence from our research does not support the premise that 10x companies will necessarily be more innovative than their less successful comparisons. And in some cases, such as Southwest Airlines versus PSA and Amgen versus Genentech, the 10x companies were less innovative than the comparison….we’re not saying that innovation is unimportant…We concluded that each environment has a level of ‘threshold innovation’ that you need to meet to be a contender in the game; some industries such as airlines, have a low threshold, whereas other industries, such as biotechnology, command a high threshold. Companies that fail even to meet the innovation threshold cannot win. But–and this surprised us–once you’re above the threshold, especially in a highly turbulent environment, being more innovative doesn’t seem to matter very much.” (p. 65, 67)

What’s essential is that creativity and discipline exist together. “Intel’s founders believed that innovation without discipline leads to disaster” (p. 69). In fact, Intel’s #1 core value isn’t innovation or creativity, it’s discipline. Collins and Hansen observe, “The great task, rarely achieved, is to blend creativity intensity with relentless discipline so as to amplify the creativity rather than destroy it” (p. 70).

But the key is not just creativity…it’s EMPIRICAL CREATIVITY. In other words, 10x companies don’t innovate blindly, throwing huge amounts of resources at new ideas. They employ what Collins and Hansen call, “Bullets, Then Cannonballs.”

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Jim Collins and Morten Hansen’s latest book, Great By Choice, is the result of a nine-year research project aimed at answering one question: “Why do some companies thrive in uncertainty, even chaos, and others do not?” Our world is unstable, uncertain, and filled with unanswered what ifs. And while we cannot predict the future, as the authors observe, we can create it. And a handful of companies have done so exceptionally well.

Collins and Hansen identified what they call “10x Companies.” They write: “We set out to find companies that started from a position of vulnerability, rose to become great companies with spectacular performance, and did so in unstable environments characterized by big forces, out of their control, fast moving, uncertain, and potentially harmful” (p. 7).

Starting with 20,400 companies, their rigorous research identified seven 10x companies including Amgen, Biomet, Intel, Microsoft, Progressive Insurance, Southwest Airlines, and Stryker. These 10x companies beat their industry index by at least 10 times. And they did it during chaotic environments.

For example, in the chaotic airline environment from 1972 to 2002 filled with fuel shocks, deregulation, labor strife, air-traffic-control strikes, interest-rate spikes, hijackings (including 9-11), recessions, and multiple bankruptcies, Southwest Airlines had a stock return 63 times better than the general stock market. Had you invested $10,000 in Southwest Airlines on December 31, 1972, it would have been worth $12 million by the end of 2002.

How did the 10x companies achieve such astounding results in such uncertain environments? Collins and Hansen’s extensive research reveals three core behaviors that set the 10x companies apart from their comparison companies. Over the next three posts, I’ll explore each of these behaviors.

The first behavior is FANATIC DISCIPLINE. Discipline is “consistency of action” (p. 23). It’s not the same as regimentation, measurement, hierarchical obedience, or adherence to bureaucratic rules. “For a 10xer, the only legitimate form of discipline is self-discipline, having the inner will to do whatever it takes to create a great outcome, no matter how difficult” (p. 23).

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Dave Ramsey has helped millions of people navigate their finances, break out of debt, and take a path toward financial freedom. He has also worked hard to lead his organization with excellence and create a healthy organizational culture. In another post I shared some of the insights of Dave Ramsey’s Organizational Culture.

Many of his leadership thoughts are captured in his new book, EntreLeadership. The book is full of practical wisdom from the trenches. One insight Ramsey shares is “The Momentum Theorem.” I first learned about the Momentum Theorem during a training event at Dave Ramsey’s office in 2009.

The Momentum Theorem was originally something Ramsey presented to his staff during a season when the organization was receiving significant attention from some high level media sources. Several team members in the organization were excited about the new opportunities the company was enjoying and Ramsey’s concern was that they would misinterpret what was truly happening. The company was not an overnight success. It was a success that was 15 years in the making.

That’s when Ramsey taught his team the Momentum Theorem: FOCUSED INTENSITY over TIME multiplied by GOD equals UNSTOPPABLE MOMENTUM.

This simple but powerful theorem is applicable to every area of your life. You begin by focusing with intensity on a specific area of your life (ministry, business, family, relationship with God, health, school, etc.). Your focus can’t be a short, one-time shot or a brief “New Year’s Resolution” window. That focused intensity must happen over time…day after day, week after week, month after month.

When you focus intentionally over an extended period of time, you’re doing everything you can do to see progress and growth. But coupled with your focused intensity over time must be an unwavering reliance on God to do what only He can do. That combination ultimately leads to unstoppable momentum.

Question: How can you apply the Momentum Theorem to your life? What part of the theorem is missing in your life and leadership?

When are you most creative and innovative? Your first gut reaction to that question might be to give a time of day (such as mornings when your mind is fresh). Or, you might answer the question by linking it to a place or location (like outdoors or in a highly creative environment). Or, you might even connect it to a group of friends or employees who carry a certain innovative DNA. All of these are well and good, but I believe creativity and innovation is found first and foremost in a particular sweet spot known as your “strengths.”

In his book, Go Put Your Strengths to Work, Marcus Buckingham observes, “…each of us is at our most creative, our most innovative, and shows our best judgment precisely in our areas of greatest strength” (p. 9). So if you want to be the most creative and innovative, consider three keys:

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Applause usually follows a great performance. Concerts, touchdowns, Broadway musicals, and the winning shot all win the applause of fans and admirers. As wonderful as applause seems, it’s also like a drug that creates a temporary high. And as leaders, it’s easy to get addicted.

While applause is a sincere way to affirm performance, it is crucial that leaders keep it in the right perspective. In their book, The Laws of Lifetime Growth, authors Dan Sullivan and Catherine Nomura observe:

As a means of facilitating growth, applause can be wonderfully useful. It opens doors to all kinds of opportunities, resources, and capabilities that can support performance at an even higher level. But as an end in itself, applause becomes a growth stopper. It stifles the imagination and undermines motivation. By always focusing on improving your performance and treating applause as a by-product that you accept with gratitude, you can ensure continued growth.

That’s the best way to view applause…as a by-product rather than an end in itself. If all you do is seek applause, your addiction will undermine your leadership and bring your personal growth to an end. So how do you keep applause from killing your growth? Here are three keys to help. Continue Reading…

For several months I’ve been meeting with a team of leaders to evaluate and innovate our discipleship strategies at Christ Church. These planning times are essential to clarify direction for the future. Unfortunately, strategic thinking at many churches too often looks like a rehashing of last year’s ideas or a carbon copy of the church’s strategy from down the street. However, the best way to innovate for the future is not to rip off someone else’ strategic plan. Leaders must cultivate strategic thinking practices that will shape the future of the church. Here are four strategic thinking approaches I recommend:

1.  Scan, Measure, & Analyze the Present - Before you can decide where you want to go, you need to understand your current reality. Here are four ways to get your head around your church’s “here and now”:

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The strengths movement made popular by Marcus Buckingham has influenced countless leaders and organizations. By taking the Strengthsfinder assessment, you can pinpoint your five greatest talent themes and discover how to leverage them for personal and organizational success. But one of the most helpful tools in the strengths movement is the book Strengths Based Leadership by Tom Rath and Barry Conchie.

In Strengths Based Leadership, the authors organize the 34 talent themes into four domains of leadership strength. Each domain describes how strengths can be leveraged in leadership for the effectiveness of the organization. The four domains include: Executing, Influencing, Relationship Building, and Strategic Thinking.

  • EXECUTING - Leaders whose strengths are primarily in the executing domain are great at making things happen. The bottom line for these leaders is their ability to get things done.
  • INFLUENCING - Leaders with strengths in the influencing domain are able to help the team reach a broader audience by selling the teams ideas inside and outside the organization.
  • RELATIONSHIP BUILDING - Leaders with relationship building strengths are like the glue of the organization and have the ability to create groups that are greater than the sum of their parts.
  • STRATEGIC THINKING - Leaders whose strengths lie in strategic thinking have the ability to keep the team focused on the future, to stretch thinking, and to innovate new ideas.

Rath and Conchie observe, “A more detailed language may work best for individual development, but these broad domains offer a more practical lens for looking at the composition of a team.” I have found that statement to be very true. It has helped us see where our team is strong, how we should restructure based on strengths, and where future hires need strengths.

If you’ve discovered your top five strengths by taking the Strengthsfinder assessment online, the following list organizes the strengths in each of the four leadership domains:

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I’ve spent the last 3 days at the Catalyst Conference in Dallas. Catalyst is such a great event loaded with great leadership teaching, fantastic worship, inspiring stories from culture-shaping leaders, and hilarious creativity. This year’s theme was “Take Courage.” Here are a few of my favorite takeaways from the event:

1.   A single act of courage is often the tipping point for something extraordinary to happen - Pastor Andy Stanley shared this thought in the opening session and then described three faces of courage:

  • Courage to stay when it would be easier to go.
  • Courage to leave when it would be easier to stay.
  • Courage to ask for help, when it would be easier to pretend that everything is okay.

Stanley observed that you never know what hangs in the balance when God says to stay while others say to go or when God says to go when it would be easier to stay. He said the only thing we should fear is waking up one day and being outside of God’s will.

2.  Our response to fear is either to seek to be safer or seek to be braver - Gary Haugen from the International Justice Mission made this observation and then observed that we want to know with certainty the path to take, how much it will cost, and be assured that it will be successful. Haugen says, “You can experience your power safely or God’s power dangerously.”

3. Creative Idea + Organization & Execution + Community Forces + Leadership Capability = Making Ideas Happen - Scott Belsky, CEO of Behance, shared this formula as a process to turn great ideas into reality.

4. We are living somebody else’s to do list. Don’t surrender to reactionary workflow - This was another great insight by Scott Belsky. He observed that most leaders live in reactionary mode and abandon the essential practice of finding quiet spaces to think and reflect. This practice helps us be proactive.

5.  You can’t equate the blessed life with the safe life. The purpose of life is not to arrive at death safely - Christine Caine, founder of the A21 Campaign, shared this principle as she championed the cause of justice.  Christine works relentless to see slaves freed.

6. Compassion is never compassion until you roll up your sleeves, cross the street, and show compassion - Another great insight from Christine Caine.

7.  Joseph’s power was not about being powerful. It was about saving lives - This quote from Donald Miller as he shared about the life of Joseph was a great reminder of the purpose of leadership, power, and influence.

8. If you’re not dead, you’re not done - These are Craig Groeschel’s words of encouragement to the older generation followed by a challenge to invest in young leaders by delegating responsibility, not just tasks.

9. You can’t speed up maturity…it takes time - Craig made this challenge to the younger generation, reminding them of the importance of maturity and faithfulness.

10. You overestimate what God wants to do in the short run and grossly underestimate what God wants to do in the long run - This was another challenge Craig Groeschel made to the younger generation.

11. If you want to be over, learn to be under with integrity - This was Groeschel’s challenge to the young generation. He also reminded the audience of Andy Stanley’s words to leaders serving under a senior leader: “Honor publicly results in influence privately.” By honoring your leader publicly, you’ll gain influence with them in one-on-one meetings.

12. Admit your failures - Although this sounds like an obvious lesson, Scott Harrison, CEO of Charity: Water, used it to powerfully illustrate the value of transparency in leadership. Scott gave an example of drilling for water and the effort failing. They posted the video to their donors and didn’t try to candy coat the failure (even though 95% of the time they are successful). This transparency has only deepened respect from donors for the organization.

13. Do you teach your people that sin is an external activity or a state of the heart? Do you train people to attack the root or the branches? - These were questions Pastor Matt Chandler posed followed by the challenge that, “Most people don’t deal violently with sin.”

14. Your fully exploited strengths are of far greater value to your organization than your marginally improved weaknesses - Pastor Andy Stanley shared these words in his closing session. Some of his ideas included:

  • The less you do, the more you accomplish
  • The less you do, the more you enable others to accomplish
  • Only do what only you can do
  • Great achievers are not well-rounded. They are men and women who play to their strengths and delegate their weaknesses. Don’t focus on being well-rounded; focus on developing a well-rounded organization.
  • Your weakness is somebody else’s opportunity
  • Stress is often related to WHAT you are doing not HOW MUCH you are doing. Your sweet spot gives you energy.

15.  Get in the habit of saying to your team, “I’ll let you decide that.” This is the greatest way to develop leaders - Andy Stanley noted that when the organization’s key leader makes all the decisions, they become the bottleneck to leadership development.

Those are my 15 insights gleaned from this year’s Catalyst Conference in Dallas.

Question: What insights could you add to the lessons above? If you attended Catalyst, what lessons would you add?