A fundamental responsibility of leaders is prediction, and they need both frequent quantitative data and qualitative feedback from the market to make the right calls.
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2. Demands: Leaders have to balance two often competing demands on the business — People and Process. This requires simultaneously maintaining a great reputation with the employees, customers, and shareholders (the People side of the business); and improving the productivity of how the firm makes/buys, sells, and tracks these transactions (the Process side of the business).
3. Disciplines: To effectively execute, there are three fundamental disciplines (routines): Set Priorities; gather quantitative and qualitative Data; and establish an effective meeting Rhythm. It’s in these meetings, debating the data (the brutal facts!), where the priorities emerge.
4. Decisions: Ultimately, all of the above require some decisions. To scale the business requires getting four key decision sets — People, Strategy, Execution, and Cash — absolutely right, and there are right and wrong answers. Shortchange any one element and you’re not maximizing your opportunity.
Because of these needed transitions, it’s often best to have some of the original functional leaders head business units — maybe head up expansion to a new country or lead the launch of a product line — so they can maintain direct operational control.
Senior leaders need to be in the market 80% of the week, either figuratively or literally.
A leader’s responsibility is to identify the strengths of the people on their team, no matter how buried those strengths might be. I thought about that often when I was sitting down with the new team at EMP. It was tempting to weed out everyone who had a reputation as a less-than-stellar employee; eventually, some folks would need to be managed out. But first, I needed to make sure a hidden capability wasn’t lurking behind someone’s subpar performance.
Although extremely clear and compelling communication about results is always imperative, it’s especially important as recalibration unfolds. Actual results are, of course, paramount in assessing performance. But the perception of those results and of whether the CEO and leadership team are on top of the situation is at least as important.