In the current economic climate, companies across the world are trying to figure out how to best weather the storm. Layoffs have seemingly become the norm; just google “layoffs” or look here and you’ll see what I mean. Such dire circumstances leave many wondering about the fate of their jobs, their families, and their futures. It is easy to get consumed with fear and anxiety under such conditions. However, it is just this type of response that could create the least desired outcome. As managers are told to make reductions, they are surely going to look to keep those individuals that have a history of solid performance, a “can do” attitude and are pulling themselves above the negativity and looking toward, and helping to create, a better tomorrow.
Often times I have discussed how leaders must set the example by which all should follow. And one of my favorite leadership gurus, John Baldoni, wrote a fantastic book on this very topic entitled “Lead by Example: 50 Ways Great Leaders Inspire Results.” And, to be sure, I always believe that leaders must act in accordance to this notion. However, in distressing times such as those we now find ourselves, I would encourage all to do what is in the best interests of the company and not simply wait for a leader’s direction. Many leaders or managers are now focusing on the survival of the business and tending to internal measures that must be implemented to ensure the company’s longer term viability. So, this could leave a situation in which the leader is not as visible or accessible as usual and not doling out directions.
Under such a scenario, you need to focus on the tasks you have, especially those that can generate bottom line benefits for the company, be it sales calls, cost cutting measures, etc. This is not to imply that every person ought to act on their own without regard for the bigger picture. Rather, it is to suggest that action in the direction of these standard company objectives is paramount and must be done even in the absence of a leader’s instruction. Doing so will not only provide benefits for the company, but show management why it is you are needed for the future success of the company. It will surely make you stand out from others who may be wallowing in concerns about their very own futures – an action which ultimately leads to an undesirable, self-fulfilling prophecy of sorts. Remember, as Stephanie Mead suggests, everyone contributes to the bottom line.
Nina Nets It Out: As they say, extraordinary circumstances demand extraordinary responses. We are surely seeing this play out in our political spectrum at the highest levels. However, such measures are not unique to politics and in our corporations, we are seeing extraordinary things happen on practically a daily basis. To show why you are so valuable and worth keeping, be sure to go above and beyond to do the necessary things to ensure the sustainability of the company, and thereby your own career.
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Well if we’ve ever needed an example of what it really is to lead during a crisis, this past week’s U.S. Airways flight 1549 water landing shows us loud and clear. Just moments after takeoff, the 29-year U.S. Airways veteran captain of the plane and a pilot for 40 years, Chesley B. “Sully” Sullenberger, knew his plane was in serious trouble. Barely off the ground, the plane flew right through a flock of geese causing some birds to be drawn into each of the plane’s engines knocking them both out. Passenger and crew accounts indicate the “deadly silence” that followed the loud bang indicating the loss of the engines. The silence was broken by a calm, authoritative voice stating, “This is the captain speaking. Brace for impact.”
From that very moment, passengers and crew knew they were in for the ride of a lifetime, if not the end of one. Even those that might not normally be prone to do so, began praying. And in answer to those prayers and to their collective good fortune, this particular captain was not only very experienced pilot in the Airbus he was flying, but also quite experienced in flying glider planes. And, of course, one interesting thing to note about glider planes is that every landing is an engine-out landing! So here they were, 155 people on board an engine-less plane, with a pilot well-versed in landing glider planes. After alerting the passengers and crew, Sullenberger went to work determining his best course of action. Try to return to La Guardia Airport, attempt to reach Newark Airport across the river, maybe head toward Teterboro Airport or attempt what had never been successfully accomplished – “ditch” the plane in the Hudson River. Making instantaneous calculations, he determined that the worst of the options was his only choice.
With a steady hand, Sullenberger guided the powerless plane over the Hudson slowing it down as necessary, descending toward the icy waters, lifted the nose just before dropping the tail into the water in a spectacular splash landing. People onboard likened the landing to a hard landing on a runway with only one impact and gradual deceleration. When the plane came to a stop in the water, the composed voice of Sullenberger came across the speakers with just one word – “Evacuate”. But, as they say, the captain goes down with his ship. Sullenberger’s work was only just beginning. With a sense of tremendous composure, Sullenberger exited the cockpit and assisted the crew with evacuation procedures ensuring that all passengers made it out of the interior cabin and onto the wings of the plane. He walked the aisle twice looking for and assisting passengers in reaching a safer place before exiting the plane himself – the last person to leave the plane.
Within just three minutes, rescue teams from ferries, other nearby boats, and Coast Guard reached the plane and began taking passengers onto their boats and to safety either on the New York side of the river or the New Jersey side. In what seemed like a scene from a Hollywood movie, all 155 passengers and crew made it to safety with nearly no injuries. Remarkable doesn’t even come close to describing this situation or Sullenberger’s poise under such difficult and perilous circumstances. He truly is a leader whose lead all leaders should follow.
Nina Nets It Out: Captain Sullenberger demonstrated astounding leadership qualities during this mid-air crisis. He showed how a leader can keep an otherwise turbulent [no pun intended] situation where chaos might be expected, calm and orderly. His calm, authoritative poise under intense stress with 155 people’s lives in his hands, created an atmosphere in which he was able to accomplish something never done before. We should all emulate his behavior to lead with steadiness and ensure the well-being of those we are responsible for.
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The latest chapter in the U.S. fiscal drama – rejection and then subsequent passage of the government’s purported bailout/rescue measure – underlines the critical roles both negotiation and trust play in effective leadership. Sound leadership is often bolstered by artful negotiation skills, whether selling an idea, an approach or tangible product. Integrity, credibility and trust are crucial components. While the absence of one can undermine a leader’s effectiveness, the absence of both – real or perceived – can completely derail a leader, team, or even an entire organization.
I was frankly surprised by how surprised our political leaders seemed to be in the wake of the bill’s failure. I’ve spoken before about negotiation. One of the basic tenets is to know your audience and have an understanding of probable outcomes. Ask yourself:
One should also consider:
Our political leaders may be becoming dangerously arrogant at worst, disconnected at best. It doesn’t appear that anyone seriously considered meaningful objection to the bailout plan. Successful leaders simply cannot afford this lack of preparedness, foresight or connection with their teams. We cannot bully our people into following; we must earn that right through clear, consistent and effective leadership. It all boils down to really understanding that any credible definition of leadership must include the word “influence” in it.
Integrity and credibility also play important roles in the extent to which we support and embrace our leaders. Integrity creates both trust and accountability, checks and balances upon which all organizations depend. Albert Einstein once said that whoever is careless with the truth in small matters cannot be trusted with the important matters. If credibility is then lacking in larger matters, the point is only further underscored. And once a fundamental trust has been breached, it is extremely difficult to recapture. Malcolm Gladwell’s best seller Blink makes clear that we recognize authenticity and trustworthiness in the blink of an eye; at a minimum, we recognize when they are absent. Leaders underestimate this at their peril when they diminish the trust of the people who count on them for guidance.
Leadership is demonstrated not by mere words, but through attitude and actions. We can only hope that our political and financial leaders understand this concept. At minimum, we as leaders need to get this on a fundamental level so we can emerge from any fray – if not stronger, then certainly wiser than upon entry.
Nina Nets It Out: “The task of the leader is to get his people from where they are to where they have not been.” – Henry Kissinger. Moving forward requires team support and the sweetest success is that which is a result of shared vision. Bolster your reputation and subsequent longevity: earn the trust and respect of your teams with consistent planning and preparation, through meaningful action delivered with unwavering integrity.
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The global economy continues to experience extreme volatility as we digest and react to what is arguably the most severe financial environment many of us have ever witnessed. The latest development, involving the proposed colossal intervention -– a.k.a. “bailout” – by the US government to ease an ever-expanding crisis, has not yet alleviated the markets’ fears. It also highlights some challenges that we face as citizens -– namely that we want quick and easy resolutions to our problems with minimal personal responsibility or accountability and that we have relatively low thresholds for pain and even less tolerance for failure.
We want the economy to be bailed out, but we don’t want to foot the bill. We want cheaper gas, but we want to continue to drive our vehicles of choice, eschew public transportation and equivocate when it comes to investments in alternative energy sources. We want to be homeowners, but we don’t want to have to save for a down payment or be bridled with uncomfortable mortgage payments. In essence, we want all the rewards with none of the accompanying risks or responsibility.
The role of the leader, however, is different. Challenges, difficulties and setbacks are all part of the package, and we must understand that these are essential components of standard business cycles, ongoing growth and development, and life in general. John McDonnell, former CEO of McDonnell Douglas, noted that “adversity introduces you to yourself.” Indeed, it makes you come face-to-face with your strengths, weaknesses and abilities to navigate sub-optimal conditions. And it is from the midst of the most challenging conditions that true leaders emerge. Remember if you will just how much adversity Oprah Winfrey confronted in her own life and how she chose to emerge from it all like a phoenix rising from the ashes.
Of course no one likes discomfort, let alone failure. But “the fastest way to succeed,” IBM’s Thomas Watson, Sr., once said, “is to double your failure rate.” The best leaders know that failure is a prerequisite to invention and innovation — in fact, Wes Ball suggests that leaders must nurture others through a failure. Our best products and processes tend to be launched by those willing to both take and encourage risk taking, current and future leaders who are open and able to learn from – and take responsibility for – the subsequent and inevitable mistakes. As Marion Jones’ story demonstrates, failure is not only acceptable but, in many ways, desirable for it rewards us with lessons that could not otherwise be learned.
Challenging times require resilience, an ability to tackle and overcome adversity despite all. Setbacks and upheavals can provide incredible opportunities for innovation and growth, if you’re up to the challenge. Leaders do not succumb to hardship; they acknowledge difficulties, learn from them and resolve to move forward.
Nina Nets It Out: “When nothing is sure, everything is possible.” – Margaret Drabble. Use these turbulent times to determine acceptable risk tolerance for your organizations, whether you are properly poised for less than ideal conditions, and how you can make the most out of the worst. Differentiate yourself with attitude and creativity. And remember — performance under pressure is a leadership prerequisite.
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The last couple of weeks has seen some very important decisions being made by the U.S. Federal Reserve. Lehman Bros has been allowed to fail, filing for Chapter 11 bankruptcy while Fannie Mae, Freddie Mac and now insurance giant AIG have been bailed out. Some of our largest financial giants have sunk, some have been rescued and others continue to swim (or tread water). While these decisions will have widespread ramifications for consumers, businesses and financial markets globally, they have been made by the Fed to quickly restore confidence and certainty in what can be described as the most uncertain of times.
In fact, the market turmoil provides an interesting study in the unease that ensues when rules are unclear and inconsistent. We often think of this as either “sinking or swimming”. As leaders we have both incentive and responsibility to provide ongoing clarity and consistency for our teams, while simultaneously encouraging risk taking and innovation. To do so requires emotional intelligence — what Daniel Goleman calls the ability to “acquire and apply knowledge from your emotions and the emotions of others” to make effective decisions in any situation.
In challenging times, one way of achieving this balance is to understand the critical role that emotions play in both perception and performance:
When we experience negative emotions — especially fear and distress –- we tend to spiral into avoidance, paralysis or hysteria. These mindsets feed off one another, clearly inhibit productivity, and can swell to epidemic proportions if collectively embraced. As leaders, we have to be vigilant about infusing passion and positivity into everything we do if we want our teams to be focused and optimistic in turn. After all, we have large and difficult challenges to face individually and collectively — and we will need every ounce of innovation, creativity and collaborative teamwork to move forward.
As a leader, think about how are you keeping the waters calm in your organization. How can you best reward risk taking while concurrently discouraging over-zealousness? Look for the leaders amongst your teams — those that demonstrate strong emotional intelligence. Look for those who are resilient, confident and highly communicative, infusing their teams with those same qualities and energy. Look also for those who need your help. Nurture those teams’ abilities to cope with stress and negativity, and you will be rewarded with people with enhanced confidence who can deliver stronger performance and success.

Consider the challenges that you are facing. What is and is not working? Map it out. Think about how you are communicating with your teams. Heifetz suggests those who are cognizant of and incorporate the concepts above manage more effectively. Try these five tips for when the going gets tough:
There is no one way to get a difficult job done – quite the contrary. Elicit the best performance possible in an environment that rewards innovation and cooperation as a means to solid team results. But should things turn sour, and a complex problem become a “crisis”, take the STOP approach to begin turning your issue around.
Nina Nets It Out: “The best executive is the one who has sense enough to pick good [people] to do what he wants done, and self-restraint to keep from meddling with them while they do it.” – Theodore Roosevelt. Make an assessment of your teams. Try implementing some of the ideas above in those areas needing improvement, and see if more ownership and innovation ensue.
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However, over at Michael Krigsman‘s blog, Mike Kavis has a guest post on bad leaders. And while he is writing about IT project failures, there is still much for the aspiring, experienced and even bad leader to learn here (in fact, a failed project may be the single strongest learning experience of one’s career). Mike provides a ten point list of why large IT projects fail, but sums it up as follows:
This list boils down to three categories: technology, business, and people. You can probably count on one hand the number of folks that you’ve come across who excel in all three areas.
The challenge for leaders is not so much straddling these competencies — for sure, even the best leaders cannot master every leadership skill. And, anyway, there is no need — as long as our village is strong. As Mike points out, success lies in communicating vision, managing change and aligning the project (yes, it could be any project) with business outcomes. Not delivering in any one area is likely to see your overall project fail.
But if bad leadership boils down to these three elements, surely is makes it easy to be a good leader? Not so. We are measured mostly by our successes — and those successes generally take the form of projects, and projects only yield outcomes when teams work as teams. As Erika Andersen suggests, the minute that teams start to lose their focus on the problem and their role in the team, the alarm bells should start ringing. In these situations, it is the leader’s responsibility to come back to the three category areas driving the project — people, business and technology and rise to the challenge that they represent.
Consider for a moment, the most mundane of tasks — having breakfast. Think through your process of decision making. You have to assess your level of hunger, determine what you feel like eating, select the bowl / plate to use (will it be your favorite bowl or the one most convenient to you at the time) and so on. Each of these micro-decisions add up.
With every choice and every decision that we make, there is a corresponding cost. On a personal level, most of us are aware of these costs — for example, having dinner with friends means that I can’t spend the time finishing the book I am reading — but what happens when these decisions are professionally based? What do leaders consider in the making of decisions?
Wally Bock has an excellent article on choice that looks at work-life balance as a process of decision making. There is an accord here, between what I call “life continuum” and the need for all professionals (and particularly leaders) to actively prioritize:
… choice isn’t between balanced and unbalanced. Instead you have to choose among a number of things to do at any one time. And the choice isn’t between work and life; it’s between different ways to use your time that make up all the parts of your life.
You choose among the options available. You can stay late and work on that project. Or you can meet some friends for dinner. Or you can catch up on your reading or your sleep. You choose.
Leaders are acutely aware of the opportunity cost of their decisions, for with every decision that is made, some other course of action is foregone. In a business context this often has a hard dollar value. Leaders must assess risk and chart a course of action designed to maximize both outcomes and opportunities.
And when it comes down to it, leaders, as Wally explains, are likely to choose the “urgent over the important”.
What other elements do you consider in your decision making process? How do you find balance?
Nina Nets It Out: Leaders often must choose the urgent over the important. As a leader, what are the criteria you use to guide your decision making?
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In good times, it is rather easy to keep employees motivated to “ride the wave.” This goes without saying. However, business leaders are not hired to lead only during good times. In fact, true leadership reveals itself in times of difficulty. Martin Luther King Jr. put this perspective into great words when he stated, “The ultimate measure of a man is not where he stands in moments of comfort and convenience, but where he stands at times of challenge and controversy.”
As the economy in the U.S. is slowing and companies must persist in their efforts to achieve solid performance, true leadership is being put to the test. Generally speaking, during the past several years, businesses have ridden a wave of economic success with low unemployment, stellar stock market performance and overall global economic growth. However, as the costs of the Middle East wars accumulate, the real estate and subprime crisis continue to maintain a stranglehold on the U.S. economy, and demand for commodities outpaces supplies, countries and businesses across the globe are experiencing significant pressures.
It is at such a time that business leaders must rise to the challenge that Martin Luther King Jr. spoke of and display their true measure. As employees feel pressures due to corporate cutbacks and prospective customers postpone purchases, business leaders are faced with the tremendous challenge of maintaining high morale, not only for those that work for and around them, but within themselves just the same. To be sure, this is by no means easy to accomplish. In fact, many leaders must suspend personal concerns and find a way to put the concerns of their employees and the organization in the forefront.
Consider what the consequences would be if leaders found themselves unable to do this. They would show weakness, employees and peers would see this and believe that if this person shows signs of stress, then they must know things that the others are yet aware of. This leads to the spread of tension throughout the organization as the grapevine communication channel takes over similar to how a cancer metastasizes in a victim’s body. This leads to less focus on customers which then spreads concerns to the marketplace, further delaying orders due to reduced overall confidence. Well, you get the drift. It spirals further and further, culminating in a deepening recessionary period, delaying a recovery, perhaps unnecessarily.
So, how are leaders able to prevent such a hardship? Clearly, there are no simple answers to this question. However, there are a couple of things that all leaders can count on in such times – lessons of history, their village, and their own ultimate power. History tells us that tough times are most always wedged between periods of good times. This is, in fact, what business cycles are. Of course, there are numerous types of business cycles, each with their own duration of time. But, while the timing may be unknown, the bottom line is that ultimately the pendulum will swing back in the other direction. Furthermore, leaders must realize the concept of strength in numbers by counting on their villages in challenging times. For, as Jon Katzenbach & Douglas Smith taught us, there is wisdom in teams. Lastly, as I have discussed in past blogs, while we cannot control what happens to or around us, we all can choose how we react. Leaders must demonstrate the fortitude that helped them reach their positions in the first place.
Nina nets it out: Don’t let difficult circumstances lead to further declines by “giving in” to them. Be a role model of fortitude and help those around you stay focused on the clearing ahead. Leverage history, your teams and your reactions to weather the difficulties and ultimately become stronger for doing so.
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She is in the airport lounge. She is in the inflight magazine. When you walk past the duty free store there are perfumes. There is music and there are film clips. And she is all over the newspapers and magazine racks. Let’s face it, no matter how busy you are, Britney Spears is bound to have made some kind of impression upon you.
Believe it or not, there is plenty for leaders to learn from Britney Spears. In fact, she makes a great case study on how to deal with a crisis. Consider for a moment:
While we all may be fascinated by Britney Spears and her professional and personal downfall for voyeuristic reasons, there are actual, real life lessons that we can benefit from. On a personal note, I surely enjoy reading the tabloids and reading about celebrities and their trials (sometimes literally their court trials) and tribulations. For me, however, it is not about watching a car wreck for the purpose of seeing a car wreck, but rather, it is about learning how these folks, with all sorts of professionals to help them, deal with the situations they encounter. Selfishly, I like to learn from the mistakes of others so that perhaps I can avoid them all together, or at least know better how to handle them should they, or similar situations, occur in my life.
So, back to Britney. I think it is fair to say that most of us, if not all of us, can agree that she has not done a bang up job with “crisis management.” I certainly think that with all of her resources, advisors, handlers, etc., that she could have done a better job managing the media during her personal and family problems. Now, in fairness, the media hound Britney like a swarm of bees do a honey-filled hive which is clearly more than most people could bear. But, regardless, it is equally clear that her handling of the situation leaves a lot to be desired.
In my view, crises need to be handled by following what I call the STOP approach:
Remember, Britney tried to dodge media whenever she could and that enabled them to write the story as they saw it, not how it really was playing out for her. Britney needed to over communicate. She allowed others to take liberties in crafting the story from their own perspective. It would have been better if she had owned up to the situation, and taken ownership of the story.
Let’s face it, Britney, with all her resources and cachet, has the luxury of being able to go on nearly any talk show of her choice and communicate directly with an admiring public. This is an extravagance that most of us don’t, and most likely never will, have. If Britney had gone public with her challenges and asked for assistance from the public and others, she would likely have found a more sympathetic response. But, by running, hiding and continuing her outrageous behaviors, she seemed to thumb her nose at the media, the public and a host of voyeurs. She came off looking more like an out of control freak than a sympathetic mom going through a difficult personal period in her life.
Anyway, this is Britney’s story now and while she has to live with the consequences of her actions, we all can learn lessons from afar which we can employ in our own lives. I, for one, will certainly be better prepared to manage a crisis in my own life should one occur. Thanks Britney!