Leadership Development
Past and Future |
Leadership Development has been a recent topic in our round table conversations with industry leaders. In their view, the topic is critical for the coming year. As the last few years' constraints have provided limited resources to leadership development, while at the same time increased expectations looking for leaders to deliver 2x results often with half of the resources. Dr. Rich Bents, Michele, and I wanted to share some of the thoughts and ideas that have come forward from our circle.
Recently we asked a few questions of LBM Leaders related to their development and that of the next generation. After each questions we state our opinion along with quotes from a few top industry leaders. We extend a sincere "Thank you" to all who have collaborated on the article with us. It's quite clear our industry has the advantage of wisdom and grace from its leadership circles. |
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How did you develop your
leadership abilities and style?
In the most profitable years, late 1990's to 2006, there were companies investing in structured leadership development programs, but typically this training was limited to only the largest and most progressive companies in our industry, likely less than 20%. Since the downturn, even the largest companies have all but eliminated their leadership development programs at a time when they could bring the most impact. Many of us find ourselves believing we are "Working Smarter" a term often said but rarely supported with necessary resources in time and money. Instead, a majority of our industry has utilized the "Development by the Seat of Your Pants" system, which has been met with both advantages and disadvantages. |
Advantages:
This Machiavellian / Darwinian style allows for only the strongest leaders to survive, as only those with the most command-and-conquer passion will battle through the obstacles. A president of a $100m LBM Dealer commented, "I'm too stupid to have fears...as far as obstacles and challenges that is what leadership is all about. If you don't enjoy trying to navigate through the obstacles and challenges, maybe you should try another career choice."
- Real Time - This reactive training style provides a high degree of motivation as the sense of urgency is created by solving a current problem. The need to effectively implement this new skill is enhanced by the critical desire to win in that moment.
- Low Cost - This style is perceived to very low cost. As leaders must embrace the challenge of growth on their own, by the grit of their teeth, succeeding and failing, while collecting information and potential solutions and tactics within their reach with limited monetary cost.
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Disadvantages:
- High Cost - It is perceived as low cost, but is it really? What is the cost of Reactive Development vs. Proactive Development? What is the cost of poor leadership in the industry? For many of the top professionals, poor leadership is a major motivator in every career move he/she makes.
- Limited Exposure- As the individual is guiding their own development they are limited by their own courage and arrogance. You don't know what you don't know, so blind spots are slow to shrink and at times may even grow.
- Lack of Structure - No continuous process improvement. This style is limited in resources and self-analysis. Only those with the toughest discipline and courage work on their weaknesses without guidance and coaching.
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What is the best method to develop our
next generation of leaders?
It appears history is repeating itself as most companies in the industry have chosen to develop in a reactive manor vs. proactive; looking away from the structured leadership development programs. Considering economic conditions, we realize many are choosing operating capital over training and development, but at what cost? However, there are ways to navigate through the monetary cost many of us are trying to avoid. And as you will read in the quotes below, it all comes back to Mentorship. |
A President of $100m LBM dealer stated, "Teach them to learn. Hire and train problem solving skills and encourage people to make a difference. We must also provide an environment where people can fail or they won't be comfortable trying the things they need to do to make the difference we are striving for."
TJ Coombs, Industry Executive, shared, "An effective (leadership) style is essential to getting underperforming teams to look hard at themselves and understand that strategic thinking, accountability coupled with executive support is a leadership and learning opportunity for them, not a threat.
Fear needs to be looked at as an asset, not a liability. It tells your mind that you need to re-tool and re-equip your past abilities and thought processes to tackle a problem or challenging business situation. To this end fear is useful as long as it is something to overcome by planning, analysis, and strategy and not something that manages the individual. If an organization senses fear in a leader then they will not follow. When they see a steady under fire and solutions driven executive they will follow and learn from them.
The greatest challenges and obstacles in my career have been the inertia of large organizations even when there is a crisis on their hands. Risk averse executives, staff functions with no sense of urgency, and middle managers avoiding problems or accountability are a death sentence to an enterprise trying to grow or simply regain its footings. Working with these constituencies has been and continues to be a challenge, but one that can be overcome with perseverance and a compelling fact based case for change.
Developing the next generations of leaders is vital. Since the turndown in the building materials and construction industry there has been considerable contraction in hiring. This has disproportionately hit the entry level positions and the management training programs that companies long used. Now that there is some growth in our industry there will be a tremendous need for young, energetic, and fresh leadership. To develop this leaders need to develop leaders at all levels. What I call the "extra credit projects" that present themselves in business, (e.g. Troubleshooting, a skunk works program, etc.), are excellent venues to expose the next generation to incremental leadership development opportunities. Mentoring is something that all too many leaders do not make enough time for anymore. However, the skills and temperament needed to be a highly successful executive are ones that are witnessed and learned. You will find the most effective executives in any industry are those that have created disciples and will be the next generation of leaders." |
In conclusion...
An $80m LBM President forwarded the following thoughts. His thoughts were so compelling we wanted to share them unedited.
"Interesting questions, as I have placed much thought and also kept a journal regarding this journey so as to never forget...better than any Ivy League education. I keep thinking about my uncle who served and was highly decorated in the Vietnam War. He would never talk about it except once when we were traveling on business and had a couple of bumps. I asked him about his experience and he told me, very directly, that no matter how much detail he provided, I would never understand or fully appreciate what war was like. While I realize it's a reach and in no way intend to make any comparison between the life and death choices made during battle, certainly the strong family tie and history to this business, made this an extremely stressful and often painful, scary experience. For those of us who survived and are even now prospering on the upswing, we have incredible knowledge through our experiences that will serve us, our customers and our industry well. I don't know how to teach that as it was such a unique time. In fact, for my father and the second generation, they had no clue as to how we should respond as, even with the late 70's, they had never seen anything like the bust of 2007-2011 (pick your years give or take).
Perhaps the most significant awareness that came out of all of this for me was that as a person and a company, regardless of the economic hardship/crisis, you must remain true to your values and make good decisions. Maybe even more importantly, when you make a bad decision (that does happen sometimes), leaving your ego at the door and regroup and admitting the error. There is no room for executive vanity or hubris when facing a crisis. It starts by hiring true believers; people who possess that intrinsic something beyond climbing the corporate ladder. Constant communication, not only of the what but more importantly the why, is critical to keeping people engaged. In fact the biggest risk I saw was attrition of our strongest players. Fortunately, that did not happen. I attribute that to over communication of goals and strategies to keep the company viable even when performing layoffs...the survivors always needed to know that this was the best decision for them and the company. There is such incredible strength in belief.
Our core is as solid today as it has ever been. In fact, I'm astonished at the amount of through put from all facets of the business. The people are what make any company great. As a manager, the second that you start thinking that you're the one responsible for success or that you alone make the company great...you are truly lost.
Certainly, the thought of losing the business like so many others was one of my largest fears. The fear of failure and not even necessarily letting my family down, but also all of those employees who were counting on us to make good decisions to keep this thing going. These people are the reason for me uncurling from the fetal position many mornings and dragging my depressed butt out of bed to come into the office and do my job. As I look back on the whole ordeal, it was an incredible experience where I learned much, but like the war, will be difficult for anyone else who wasn't there to understand. Never forget..." |
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As we work collaboratively, as an industry, we grow more prosperous and reach goals much more efficiently. Please don't hesitate to forward your thoughts on the topic.
Merry Christmas!
Michele, Rich, and Tony Misura Group |
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Recommended Reading
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Influencer: The Power to Change Anything
~ by Kerry Patterson |
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