Conversational Media Group Blog

Bob Prosen’s new book Kiss Theory Good Bye begins with the line, “Business Leaders Need Less Talk and more action.” My notes to self were “Right on Bob!” Then I read his Acknowledgement, “To my faithful schnauzer, Oreo, who brings me joy and endless companionship.” How can you not at least try to read a book that is dedicated to the author’s dog. And so I did.
Leadership
Toby: Let’s set the stage for this mini interview by first talking about leadership. We live in a world where technology plays a critical role in many business processes. However, how do you think that technology, and specifically social media, has impacted the dynamics of business leadership?

Bob: Social media is having a profound impact on the way we look at business. Blogs allow us to discuss and study issues almost instantaneously in a way where PC doesn’t carry the day. Take for instance the recent HP scandal. Leaders can no longer take refuge behind friendly reporters or PR spin machines.

Because information is instantly available, tough questions are asked which leads to greater transparency. Some leaders are proactively using technology to their advantage. Done effectively, leaders can get their message out to many constituencies quickly and inexpensively. Advances in video and audio technology remove any excuse leaders had for not communicating with employees on a regular basis. What this means is that leaders can maintain alignment across the enterprise and speed decision-making, which leads to, increased competitiveness and profits.

Toby: Do you believe there are different skill sets a leader should bring to a start-up operation versus a more mature organization?

Bob: Absolutely! The environments are completely different even though the goals are the same. Both want increased performance and profit. However, this is where the similarities end. Start ups have different challenges. Here are a few of the key ones. They have a shorter runway. In other words, less time to get it right before they run out of capital. They have to make quick decisions without the benefit of history. Every employee matters and must be able to wear multiple hats. Finally, the leader can’t be afraid to fail.

Personally, I prefer the start-up environment. It’s more exciting and everyone has the chance to make a real difference. Once a company makes it, leadership must adapt and change. It’s a different ball game leading a professionally managed company versus a start-up. Here’s the challenge. Being able to maintain an entrepreneurial culture inside a growing company where procedures and policies are required to maintain alignment, ensure quality and improve efficiencies. Sometimes it means the leader has to change.

Organizational Culture
You mentioned an interesting statistic that although 70% of business leaders say their companies’ objectives are clearly defined, only 48% of employees understand the organization’s goals.

Bob: This is interesting. In fact, one might say it doesn’t make sense. How can goals and objectives be clearly defined and employees not know what they are? The only sensible answer is that these leaders either keep the information to themselves or even worse, fail at communications. Organizations that are aligned where everyone knows what’s important, how they fit in, what’s expected of them and how they will be rewarded will out perform their competitors. It makes no sense for leaders to know the objectives and then struggle to explain why the organization falls short of achieving them. The leaders job is to ensure everyone who reports to her wins! This can only be realized when the entire organization pulls in the same direction – and goals set the direction.

Toby: Going back into the organization, what extent do you feel culture influences a highly profitable company? How can senior management create a culture that permeates and ensures that culture is reflected through out the organization from HR’s hiring to internal communications to employee buy-in of values?

Bob: Let’s start by defining culture. Simply put, it’s the way things get done. The unspoken hand that guides what people do, and, it’s undocumented. It begins at the top and no one else can set it. Therefore, the leader must establish the organization’s culture or risk wandering off course just like a ship without a rudder.

Personally, I like an accountability based culture because it’s easy to explain, everyone gets it and it works. In fact, one of the top questions I’m asked is how to create accountability so I developed a formula that works in any organization. Here’s a great way HR can help establish an accountability based culture. Think about all the people you’ve worked with that got results, you liked working with them and nothing stood in their way of achieving their goals. No one had to hold them accountable because they did so on their own. Now think about all the people you’ve worked with that constantly complained, failed to deliver on commitments, fell short of the desired goal, had to be motivated, cajoled and performance managed. These people are not innately accountable and don’t like others holding them accountable. This tells me we better screen for accountability during the hiring process.

Creating or changing an organization’s culture is one of the toughest jobs a leader has. Done well, things just seem to work. Done poorly, it’s a constant struggle. After hearing all the horror stories I decided to demystify culture and make it simple to understand and shape. To learn more read chapter two of Kiss Theory Good Bye – Superior Leadership, and pay special attention to page 34.

Toby: I believe it was President Truman who said, “The buck stops here.” However, how involved should employees be in developing processes and in decision marking?

Bob: Yes, the buck stops with the leader. But every decision shouldn’t end up on the leaders desk. It’s important to remember that the higher up you go in an organization the fewer decisions you should be make. However, the magnitude of those decisions is far greater. For this to work others within the organization must take responsibility for day-to-day decisions or the organization will become stymied, slow to act and less competitive.

When it comes to developing processes, I use the following rule of thumb: Managers work on the process and employees work in the process. Meaning, managers are responsible for approving processes that employees help design. Because process changes generally require reallocation of resources, its management’s responsibility to approve such changes since they control the budget.