Alex Ferguson is one of the few leaders in football who has endured beyond a few seasons. And his genius was his ability to regenerate the team. He regularly surprised people as he moved on through Eric Cantona, Paul Ince, Bryan Robson, David Beckham, Roy Keane, Jaap Stam, Christiano Ronaldo who were all at one time considered indispensable and yet they went and success continued.

What were the characteristics that kept the Ferguson magic going within Manchester United? The Ferguson Way is well documented: you accept someone for what they are, develop them into what you want them to be or move them on. It is as simple as that and businesses when they talent manage should be thinking in the same way accept, train or fire.

Ferguson’s success did not come instantly he had a vision which he stuck to. He mixed youth with experience with the Scholes, Neville brothers, Beckham and Butt  which he nurtured he threw  experience and leadership with the purchase of  Eric Cantona and Steve Bruce. He  also knew when players needed to move on.

Alex Ferguson from the off developed his own brand, he was entirely his own man and whilst the temper came to the fore occassionally  he will be remembered by those who played for him as a compassionate man, a father figure who set the standards and abided by them, whose values were firmly pinned to his sleeve. Business leaders could learn a lot from that too!

Overall business could learn a great deal from  Sir Alex’s success and it was great to see Harvard recognise that when he went to lecture there recently. The real challenge that now faces Manchester United is replacing such a great man. a great visionary and an amazing leader. I wonder if they really have an effective succession strategy in place?

For businesses in and around Exeter, Newcastle and indeed elsewhere motivating your people is an essential skill for great leaders. The Key question being how do I get my team to perform at a superb level for a sustained period? Financial inducements have always been seen as essential inducement but are they really?

The Candle Problem undertaken by Carl Dunker in 1945, where a candle and tacks were placed in a box with some matches on a table and those taking part were asked “how do you attach the candle to the wall, light it and prevent the drips from falling on the table”. It was reused by Sam Glaxberg who proved that the pressure induced by financial incentives made teams less efficient by 31/2 minutes. So money can work as an incentive for mechanical and automated tasks but not for tasks requiring creative and cognitive skill here the pressure builds with the size of the reward and the degree of complexity related proportionally to the paucity of the performance. So money is not the answer. Extrinsic rewards were very much part of the management of workers last century. Today’s team members prefer far more intrinsic rewards once they have met their extrinsic needs.

So what other inducements has a leader got to enhance his team’s performance?

Today’s employees unlike their predecessors like a degree of autonomy. They like to know where they fit within an organisation and where the organisation is going. They like to understand and fit the culture and the values of the organisation as they consider choice to be an essential part of modern life. But they like to feel they have some say and some control of what they do.

They like to feel that they are developing personally in their chosen occupation or role. There is a desire to be seen and recognised as an expert. So they need to see that they are progressing and expanding their knowledge and experience. They also need to recognise that there are opportunities to do this in the future.

The idea that money is king is balanced by a sense of purpose and this is the dichotomy the world is wrestling with now. How do you as an individual or unit survive comfortably and yet maintain a purpose and a contribution to the wider good in a very capitalist and media driven selling environment.

People need cash enough to survive in their chosen environment at their chosen status but they need much more from their employment if they are to be motivated within their employment they need purpose and control in their lives and that is part of modern freedom delivered when humans no longer need to be in a herd continuously to survive.

Sampson Hall are running a series of events in the South West in Exeter and the North East in Newcastle which cover topics such as this. Further information is available at http://www.sampsonhall.co.uk/services/course-dates-and-descriptions.html

The Principles of War underpin military doctrine and conduct, they have been determined as a result of experience in conflict by examining the key components present in all successful military operations. As such, these principles can be applied to the conduct of more general, commercial and business activities to enhance the likelihood of success. Ergo, they can be considered as the Principles of Winning. Application of the principles alone does not guarantee success; however, failure to adhere to any of them will almost certainly guarantee failure in battle.

Selection and maintenance of the aim is making absolutely clear, precisely what is to be achieved (by whom, when and why) to ensure all concerned remain focused and all associated actions are co-ordinated. The aim must be understood and fully accepted by all involved. All activity must be aimed at achieving and contribute towards achieving the aim and it is important to understand in reality the aim may (will) change as the battle progresses.

Maintenance of morale will be crucial in determining the outcome of combat in the event of all things being equal, ie. when no side has a clear advantage. Irrespective of context and situation – well motivated people with high morale perform better than those without. Good morale can be the difference between success and failure; morale and motivation are the responsibility of leaders.

Security within any military context is generally obvious; in the business context the principle of security is concerned with managing all the essential risks necessarily taken to achieve an outcome. This includes (say) confidentiality, copyright, financial constraints, succession planning, etc. as much as the more obvious health and safety in operations. Security is as much about facilitating and safeguarding the bold moves which gain competitive advantage as it is about looking after routine business.

Surprise is about gaining advantage by doing the unexpected; it is the deliberate ‘wrong footing’ of the enemy (competition) to bring about his/her demise. Creativity, courage and speed are the key ingredients to surprise and as such need to be nurtured and developed as an organisational attitude. In a business context the ‘enemy’ may be a competitor, a specific situation or set of circumstances.

Offensive action is about proactive, deliberate action aimed at winning through in order to achieve the stated aim – exploiting advantage, opportunity and strength to accomplish the task. Again, this is as much an organisational attitude as anything else. To understand the nature of this principle as a ‘mind set’ consider polar views of defining business success in the current ‘economic climate’ presented in this question. Is success about avoiding failure or achieving stated objectives irrespective of prevailing circumstances? Offensive action is proactively doing what is required to succeed; it is not about accepting mediocrity or avoiding failure.

Concentration of force is about applying decisive force and effort at the most decisive place and time to secure victory in battle as no army can be the best at everything all the time. In the business world this principle is about achieving the right effect in the right location to ensure the desired outcome; for example (say) timing and targeting of investment to yield the best possible return. Rarely, if ever, will the opportunity of the right force being present at the right time in the right place present itself; concentration of force is a managed deliberate act of choice.

Economy of effort is self evident; it is about efficiency in all you undertake. Essentially, it is concerned with understanding the nature and effect of attrition on the conduct of enduring campaigns. It is about shrewd decision making, careful preparation and squeezing all you can from your resources and assets in order to retain sufficient reserves to deal with contingencies and exploit opportunities as they arise. In business this is about (say) spending as little as possible on those items which do not contribute directly to the main aim in order to direct revenue where it will be more effective in achieving the aim. This is not to be confused with ‘cost cutting’.

Flexibility, attitudinal and organisational flexibility, is required to be able to recognise when change is necessary and to change when needed. This requires strength of character and moral courage to change or modify a plan or course of action when the existing one is doomed to failure. The military maxim ‘no plan survives contact with the enemy unchanged’ is borne from hard earned experience, and understanding where the fine line lies between dogged determination to succeed and sheer ‘bloody minded’ dogma leading to failure.

Co-operation is about ensuring unity of effort to achieve a shared outcome and accessing the combined attributes of diversity. The challenge is to overcome inherent disposition to favour a single perspective or approach and inevitably necessitates compromise between those involved. In an organisation, co-operation is concerned with both interpersonal actions and interdepartmental activities. There is very little to no room for significant individual, personal gain in an organisation if achieving organisational aims has primacy.

Sustainability is about ensuring longevity of both operations and effect and, as such, is primarily to do with long term logistical support to the enduring operation in a military context. For example, having the resources and support mechanism in place to ensure the commander can deliver (say) a defined number of missiles at a given rate throughout the expected duration of the battle and beyond. The business parallels are relatively easy to draw; for example, the supply chain is in place and has sufficient funding allocated to ensure enough pressings of the right type arrive at the factory every day for the expected duration of a production run. Sustainability requires dedicated and often ‘inglorious’ work, detailed analysis and application to task which require attributes and skills difficult to find and attract in business.

There is no order of precedence in applying the above principles after the first, selection and maintenance of the aim. The key is all are applied in order to avoid otherwise inevitable failure. Success also involves and requires the presence of other factors and circumstances – not least of which is an element of good fortune (or luck).

Having worked with several charities I have found that the leadership, team cohesion and motivation and the leadership challenges are very different from those we have experienced when working within the corporate sector. Charities are businesses in their own rights but they work under a different and more challenging set of rules and circumstances.

Where a leader in the corporate sector just has the conundrum of balancing stakeholder profit with customer value and societal/brand expectation. A leader in a charity has to balance trustee requirements, fundraising requirements, employees and volunteers, societal expectations and the end user service/value.

Let’s start by looking at the trustee dimension within a charity, as it is the most complex of the issues. Trustees are generally very well meaning and highly motivated people who work genuinely hard for a heartfelt cause. However, they may not all come with the same motivation and agenda. Hence, they may value different aspects of a charities work in different ways. They need to be marshalled to be truly cohesive in their approach and yet they need to be independent in their judgement, in order, to ensure the charity adheres to the requirements of the law and the Charity Commission as it moves forward.

Fund raising has many tenets from investment, the basic retail of products, to the winning of funding and grants from public and charitable bodies, to the support of individuals as they raise money. These aspects combined need to provide the working funds for the charity to function and develop. The charitable  financial world is complex and fraught with risk during these frugal times, accountability and transparency has never been more valued and demanded by the customer and the regulator.

The employment environment of a charity is also complicated when it comes to motivating, leading and managing those involved. A charity will normally have paid employees who work in normal employee circumstances alongside those who volunteer their services. The paid employees, whilst viewing their employment as a job, may be intrinsically motivated to choose to work within the sector. However, it is the volunteers that bring other challenges in terms of motivation and expectation. How do you plan an event when you don’t know how many people you will have there organising it?

When it comes to providing value for your customers, identifying who they are and how their expectations can be met is critical. Each customer will have a very different perspective of the charity and it’s work. Derived from the reasons for their association with that charitable organisation. Contributors to the charity will expect their money to be spent wisely. Those who benefit from the work of the charity may have real issues and problems in their lives that have driven them to seek help. Some will be so desperate that any assistance will do and others will be far more choosy. Circumstances will be incredibly varied depending upon the focus of that particular charity.

The intrinsic rewards of charitable work far outweigh the financial reward and yet the challenges of leading such organisations in the highly competitive charitable sector can lead to a stressful and lonely existence. Best practice needs to be shared more effectively and proven solutions to common issues need to be more available to all those involved, in the leadership of these wonderful organisations, who afford our society so much.

Sampson Hall are now working with Charity Leaders as part of the Charity Forums UK. To help them work together, share best practice and support each other.

We all joke about singing from the same hymn sheet or indeed even being in the same church.  But there’s a serious lesson here that some organisations have failed to learn to their cost.  And the key word here is ‘values’.

Humans are individuals with their own sets of values and beliefs. Businesses too, have organisational values and goals.  People join organisations because they like what they see.  They stay because their personal values match those of the organisation.   And they move on if they don’t.

Aligning these human and organisational values is the key to success in the modern business world where speed is vital and trust its key catalyst.

The simple truth is “me” becomes “we” and when an individual feels strongly that they are part of an organisation that affords them great benefit.  They become disempowered as individuals and much more empowered as a team. They feel stronger within and are therefore loathe to stand up for themselves against their peers.

We are taught in modern education to conform, to be right, to go with the majority. But right is often merely a matter of current opinion. Think back to when the world was flat, women could not vote, capital punishment was an acceptable result of serious criminality, tobacco was good for you, drink driving acceptable. All are now considered unacceptable behaviours within most modern Western societies.

The images of a South African taxi driver being dragged behind a police vehicle for illegal parking and news of his subsequent death in custody has shocked the world. Here we see an appalling example of a state organisation with a poor organisational culture that has become unacceptable to most South Africans.

Last October saw the killing of 44 people at a Marikana mine, the deadliest police action since the end of apartheid. More recently the police officer responsible for the prosecution evidence against Oscar Pistorious was publicly removed from the case as a result of his own pending murder charges. The question is: what type of culture exists within the South African police force. Why do good individuals who join an organisation to uphold the law, then behave this way?

The answer comes from the top.  Poor leadership allows values to slip and behaviour changes in groups to shift. Good leadership upholds values and deals with unacceptable behaviour by stopping it in its tracks.

Visualize a fire-fighter rushing into a building, or a Royal Naval ship venturing into dangerous seas. These acts of extreme bravery are an agreed-upon condition of an individual’s employment at the time of their joining. These are the same acts of commitment as our valiant soldiers undertake in fighting and risking life and limb in foreign wars. They each serve with pride, commitment and passion; their agreed-upon commitment. The power of this commitment becomes a personal promise to do the very best job possible.  What these brave souls deserve are good leaders.

Napoleon once stated “There are no bad soldiers, only bad officers” and I believe he was absolutely right. Individual incidents and mistakes will always happen but when organisations go seriously wrong it’s because of the leadership culture that exists within the organisation.  Invariably when an organisation is in trouble, things are going wrong in several areas.  It’s rarely a one-off incident.

Sampson Hall say:  know and publish your organisational values and you will recruit individuals that match them.   it is then up to the leadership to ensure that the behaviour within the organisation matches those values, however complex and difficult that may be.

What do Lord Rennard, former Barclays boss Bob Diamond and General Petraeus, former head of the CIA all have in common?

Answer – they all left their positions as a result of inappropriate behaviour.

All three were extremely clever and competent, able leaders, yet they all misbehaved in a way that cost them or at least contributed to their losing their leadership position.

It is interesting that moral courage, self discipline and trust are becoming more and more important in life as societal values change.  The common denominator in the News of the World phone hacking, the BBC and Jimmy Savill, the horse meat scandal, the Banks, the South African Police brutality stories is the same:  leaders are not being morally courageous in their behaviours and certainly not when it comes to exposing misbehaviour around them.

If leaders do not have the moral courage to do what is right organisational values mutate. Leaders need to have principles and stick to them they need to have the courage to do the right thing however unpalatable it may be. For to let one piece of misbehaviour go unchallenged is to lower their personal and organisational standards. And results, just judging by the cases above, have been typically disastrous.

A moral compass is essential at the top of an organisation as its leaders, once truly embedded in the organisation will control and influence what happens within the organisation. Once accepted a leader can take an organisation wherever they want with little challenge from within.  Whether they influence by word or deed they will be the ones who must be held responsible for their own behaviour and for the behaviour of those leaders around them.

When Lord Acton, expressed this opinion in a letter to Bishop Mandell Creighton in 1887: “Power tends to corrupt, and absolute power corrupts absolutely. Great men are almost always bad men.” he was absolutely right.  But now we have an insatiable media and the technology to match. Never more have society’s leaders needed that moral compass as the likelihood of being exposed for wrongdoing is so much greater.

In other words in today’s world, you’ve got far more chance of being found out.

SampsonHall

Good Leaders, Great Decisions

Sampsonhall.co.uk

The Royal Bank of Scotland’s five billion pre tax loss – the fifth annual loss on the trot – is hard enough to swallow.  So how does the bank’s head Stephen Hester sell the idea of paying £215M to its investment bankers?

Not very well is the answer.  With public hostility to the banks showing no sign of abating, when are the banks going to start living by the morals and ethics that most of us in our business and private lives abide by?

Not any time soon, by the sound of it.  Even more interesting, unless RBS faces any further punitive charges, it will return to the same high operating profit of £3.5 billion that it made this year.  Unless more procedural failings emerge.  Lets not hold our breath on that one.   Nor any suggestion of a change in the culture of the banking hall.

In our modern world when does an organisation really need to stand up for the values it expounds? Acknowledging that truth comes before trust; how can the leaders who were the exponents of much of the wrongdoing now inflict a different less profit oriented culture on those who follow them? Particularly if they are still using their obscene, outdated and questionable reward system that does not fit the value sets of current social corporate practice

Why should the tax payer continue to support a self perpetuating antiquated money oriented system that is not fit for purpose? It is as close in terms of risk and reward to drug dealing although the associated rich rewards come without the personal risk. Is this sustainable whilst those within that society struggle to make ends meet.

Is it not time for a serious look at what banking is and what it stands for? What does it deliver to society and how does its current culture, values and ethics really match those of the society it serves.

The imbalance in the Banking, corporate conundrum made up of shareholder profit, customer value and societal expectations that exists is down to poor, unethical leadership. Leaders need to be far cleverer in balancing their delivery appropriately in each of the contributory areas. Those leaders will also need to live by the values they expound. The Banking industry is at a crossroad it is up to its leaders to rise to the considerable challenge of changing the culture and leading it into a new age.

SampsonHall

Good Leaders, Great Decisions

Sampsonhall.co.uk

One of the key requisites of a modern day leader is fairness. However as humans we all have our favourites and generally they look, behave and think like us!  All very well until you remember that diversity is a great asset to any modern team. So leaders how do we get the best out of a diverse teams if diversity is such a strength in today’s volatile, uncertain, complex and ambiguous world?

As Coach Boone said in that film Remember the Titans:  ”If we don’t come together right now on this hallowed ground, we too will be destroyed, just like they were. I don’t care if you like each other of not, but you will respect each other. And maybe… I don’t know, maybe we’ll learn to play this game like men.”  Respect is the key catalyst that brings with it a fairness that glues individuals and teams together.

Respect is key in any cohesive group for without it trust will dissipate and teams will become a collection of individuals who function only for self gratification. Without respect the intrinsic bond that is so key to super success will never be found as team leaders and members focus on extrinsic reward. Look at those organisations that have tried to buy their way to success and failed.

Power used to be a key tenet to successful leadership but I am now of the opinion that today’s world is more about win win collaboration rather than the zero sum conclusion. Collaboration and mutual benefit are symptoms of maturing societies rather than the historical imposition of power and authority. As leaders become more ethical in their words and deeds societies judge them on their ability to balance profit for their shareholders, value for their customers with their brand’s expectations from society.

Ethical leadership is not about power and authority it is more about influence and motivation hence it is about fairness and diversity, compromise rather than power and destruction.

Given what I do for a living I found John Adair’s comments published in a recent ILM publication of particular interest. “The immense industry which has grown up around leadership is now estimated to be worth $50bn per year but has not actually produced many better leaders.” The truths of this statement are apparent in the various leadership scandals and failures currently dogging just about every part of our society and almost ever present in our daily news stories. Another day another leadership scandal or failure or, at least, an example of bad leadership and the consequences we have to bear as a result – dying to meet a target? So what kind of leadership or leadership model should we be investing in as we move forward?

Ethical leadership and authentic leadership are interesting to consider in context of the current spate of leadership debacles, though not as leadership styles because they are more than concepts of style. Being ethical is about being guided by moral principles and ethical leaders embody, exhibit and live their beliefs and values. Being authentic is about being real or true and authentic leadership is about being sincere, directing with integrity and taking full responsibility by being true. Doing things right is not the same as doing the right thing and reward for being good is not the same as being good for reward. Ethical and authentic leadership are about being good and doing the right thing to be good and true to self and others whilst accepting responsibility for actions and decisions.

My personal view of leadership, generally and specifically, is the most difficult element of leadership to deal with is behaviour; your own behaviour as a leader and that of those you lead. I believe it is the behavioural aspect of leadership which yields the greatest returns and yet most often breaks leaders and destroys leadership. With this in mind and considering the Ethical and Authentic leadership models are founded on values and behaviours, I suspect the appetite to be led by ethical and authentic leaders will be greater than the appetite of leaders to become such. Considering how to develop future leaders in the ethical and authentic ‘mould’ is a particular challenge given the apparent shortage of appropriate role models available to them and the obvious limitations of traditional training. How do we incentivise and give primacy to adopting good behaviour over achieving rewards? How much does knowing about behaviour inform behaviour and decision making? How does legislation affect leaders and leadership? Thinking of these questions called the following quote by Plato to mind.

“Good people do not need laws to tell them to act responsibly while bad people will find a way around the laws”

I cannot help but wonder how more stringent banking legislation or stronger whistle blowing laws will have any sustainable effect in addressing bad leadership?

Not very long ago, only the good guys did ethical leadership. All very well but it didn’t make much difference to the bottom line apparently.  Well life and times in the UK are proving otherwise -  get the culture wrong and you could be facing the wall.

How the BBC, NHS, most high street banks and now some food producers must rue the day they decided it was all about profit, targets and bonuses.  Ignore the culture in your organization and you ignore it at your peril.

And all the retail brands who ignored their customer needs must regret doing some simple market research.

Lack of checks or possibly blatant disregard will be bringing down a number of food producers in the next couple of weeks.  The culture of not checking deliveries properly came from a culture of tacit acceptance, lack of communication and probably management bullying.  The culprits will undoubtedly be facing irreparable damage to their reputation and possibly a date in court.

Barclays announced today it’s closing its tax avoidance unit ‘in a bid to repair its battered reputation’.    How life could have been so different if they had thought about their brand and their customer first, rather than focus solely on profit.

Everyone knows that the Mid Staffs hospital scandal is merely the tip of the iceberg.  Stories such as we heard last week can be replicated in many other hospitals around the country.  We’ve all heard or experienced shocking levels of care – or rather lack of it.

The common denominator here is poor leadership.  Of course, business leaders have to make a profit.  But they need to value and give value to their customers  – and that includes listening to them.  And finally they need to think about their brand and their culture.  Get it right within the organization and you are someway down the road to getting it right for your customers.

So Sampson Hall say you should answer four simple questions about every business decision any leader makes.

Is it honest?

Is it fair?

Is it right for our brand?

Does it provide value for all involved?

If some of the above had addressed these issues, the current headlines would be very different