Investing time and resources in a social media strategy is only a smart move if you have a well-defined approach. Too many marketers make the mistake of trying to talk to everyone in every social channel, which makes it impossible to define the right voice, content, and measure of success. A better method is to narrowly identify whom you want to listen to and communicate with. Are you targeting Millennials entering the workforce, dads with young children, or senior executives nearing retirement? What are they doing on social media, and where are they doing it? What are consumers saying about your brand, products, services, and competitors? Start with simple Google searches on your brand name, analytics tools within social networks, and secondary research sources, such as Pew Research and Edison Research, to identify larger trends in social media use. This information will set you on the right path to defining a targeted strategy.
After your next conference, social media tools can help you follow up with the people you really want to make a part of your professional network. Try these strategies:
When setting up a meeting, the people you invite are just as important as what you need to get done. Including too many people — or too few — can be a waste of time for everyone involved. The following excerpt from the book Running Meetings will help you decide who should be in the room to make your meeting most effective.
It may be easy to default to inviting a crowd of people to a meeting — that way, you don’t really have to identify the most critical participants, you’ll avoid any ruffled feathers, you’ll have everyone involved on hand for a decision, and you won’t have to repeat your communications separately afterward. Or maybe your tendency is to want to keep things small: You may be tempted to invite just a small group of people whose opinions you most value.
But for a meeting to be useful, you have to have the right people — and only the right people — in the room. With too many attendees, you may have trouble focusing everyone’s time and attention and accomplishing anything; with too few, you might not have the right decision makers or information providers in the room.
As you plan your attendee list, consider who will help you to accomplish your meeting’s goal and those who will be most affected by its outcome. Most likely this is a combination of people who will offer a variety of perspectives. Take the time to methodically list the individuals in each of these categories to make sure you include the right people:
Feel free to consult with other stakeholders to make sure you’ve made the right list. Often another key stakeholder can remind you of a perspective you forgot to bring into the room.
Just because someone’s name is on your list, however, doesn’t mean he or she must be at the meeting. How many people should you actually invite? There are no hard and fast rules, but in principle, a small meeting is best to actually decide or accomplish something; a medium-sized meeting is ideal for brainstorming; and for communicating and rallying, you can go large. Some people use what’s known as the 8-18-1800 rule as a rough guideline:
If you decide not to invite individuals you listed as likely to be affected by the meeting’s outcome, have a plan to communicate the substance of the meeting to them afterward.
CEOs have a lot to worry about, but what are their greatest concerns? What keeps them awake at night? We interviewed 24 CEOs and asked them to name the biggest challenges facing their organizations. (Please note that titles used here reflect the positions the individuals held in 2013, when we conducted the interviews for a separate article). Their concerns fell into three broad categories: talent, operating in a global marketplace, and regulation and legislation. Given that CEOs set the tone and priorities for their organizations, it is important to understand what they interpret as the major challenges and opportunities.
Talent Management
Talent-related issues were the top concern, mentioned by 16 of the CEOs. They had a range of concerns, beginning with finding the right talent. This was especially daunting during periods of change or growth in which companies needed to hire in large numbers. AT&T, for example, had to switch its focus from traditional telecom services to wireless services, and this shift required employees with different skill sets. Randall Stephenson of AT&T explained, “We had 270,000 people we employed around the globe. The lion’s share of these people were out building and installing high-tech infrastructure and doing home installs that were suddenly far more complex than they’d ever been. We’d been hiring a number of people, and finding good, technical people to fill these jobs proved to be very difficult. If we wanted to hire somebody to go install IP services in a home, we interviewed eleven people to find one qualified candidate.”
Once companies hired new talent, new challenges arose, such as how these employees represented the company. Enrique Santacana of ABB North America, a power and automation-technology firm, voiced his concern this way: “An overarching issue was the exposure we had as a company,” Santacana explained, “For example, how information was being used or may be used in a way that was not conducive to good business practices. Having 150,000 employees around the world, once in a while we got a bad apple here and there, and we got problems. The speed at which those problems happened was exponentially increased because of the ability of people to communicate through social media.”
CEOs also worried about whether their high potential employees were being properly developed. One area that proved especially challenging was mobility. Ken Powell of U.S. food processor General Mills, noting that his company was quickly expanding internationally, said, “One of our challenges was how to develop a truly globally mobile culture. That didn’t mean that everybody in the company needed to have that kind of flexibility—it just became more and more important for us that we had a cadre or a group of employees who were willing to pull up their stakes and go to lots of different places.” The challenge then was to foster global mindsets and cultural competencies.
Talent pipelines were also a concern. Woods Staton of Arcos Dorados, the largest operator of McDonald’s restaurants in Latin America, explained, “The big challenge that we had was making sure that we had the right pipeline with good people, making sure that what had made us successful so far with our group of people was being reproduced down the line.” Other talent management concerns that were mentioned once include: motivating people through hard times, retention and development, and managing diversity and cultural differences.
Operating in a Global Marketplace
Eight of the CEOs pointed to the challenges of operating in a fast-paced global marketplace. For Paul Block of Merisant, which makes artificial sweeteners, one problem was currency. “We had currency issues because the global economies had been somewhat volatile. So, you had currencies going up and down, and we crossed currencies because we sold in over 90 countries and manufactured in over five or six countries. Currency really had a big effect.”
Staton identified the challenge of managing a global brand: “We had the McDonald’s brand, and in each country our market share and the product life cycle were in different stages. You had some countries in which we were mature or very, very strong and very, very good, like Brazil. Others, like Mexico, offered more of a challenge to us. We had more competition, be it from our own direct competitors or from street vendors and food stalls. So the challenge was to have the broad marketing strategies with local adaptations.”
Some CEOs worried about setting direction and tone for the company across regions. “I would say the biggest challenge that I faced was making sure the organization stayed very focused, thinking about the trends that were shaping the world and what we were going to need to do organizationally to win in the long-term,” said Jim Turley of accounting firm Ernst & Young. “It was very much about capital shifts and demographic shifts that were taking place in the world. We wanted to keep those two things in the forefront of our thinking and driving our strategy and execution. That was something that I spent a lot of time thinking about.”
Another challenge was to establish and maintain a consistent company culture across different regions. Tim Solso, of the engine manufacturer Cummins, spoke for many when he said, “I think an issue we had was that we were a good multinational company that was headquartered in the United States. We were not a global company yet. How did we make sure that our policies and processes reflected the world we lived in, not just where our headquarters were?”
Regulation and Legislation
Finally, five CEOs cited the challenges of leading a company amid shifting regulation and legislation. For example, David Thodey at Australian telecom Telstra explained, “The telecommunications industry was heavily regulated around the world and we had been going through a series of negotiations with the Australian government. The government was going to pass $11 billion to migrate customers off the copper network to a fiber network over seven to eight years. We were seeing just enormous change in how we needed to act, and behave, and how we needed to drive cost out of the business.”
Healthcare industry chiefs were particularly vexed by changes in legislation and regulation. Ken Frazier of the pharmaceutical firm Merck, put it this way: “The biggest challenges that we faced in our organization was that healthcare in general was undergoing huge, huge pivotal change. As a pharmaceutical company, we obviously were part of that whole ecosystem. Many of the established ways of creating value in this industry were no longer as viable as they used to be. The biggest challenge we faced as an organization was change.” Angela Braly of the managed-care firm Wellpoint spoke about how healthcare reform was changing the focus of her business: “We were really working to transform ourselves as an organization and to help transform healthcare in the United States from a system that had in many respects been business to business. Most of our customers historically were employers, and there was a big transition we were anticipating partly as a result of healthcare reform, but we thought it should be our driving force in any event, to be a truly consumer-focused company.”
Change and new challenges are inevitable, so CEOs must be skilled at taking on a wide range of both internal and external challenges facing their companies, including setting priorities and setting others up for success. As David Thodey put it, “Leadership was pretty important. People observed what I did and what I spent my time on. As a CEO, how you spent your time became more and more important as you went along.”
As a leader in your organization, what keeps you awake at night?
“What Leaders Really Do,” first published in 1990, deepens and extends the insights of the 1977 article. Introducing one of those brand-new ideas that seems obvious once it’s expressed, retired Harvard Business School professor John Kotter proposes that management and leadership are different but complementary, and that in a changing world, one cannot function without the other. He then enumerates and contrasts the primary tasks of the manager and the leader. His key point bears repeating: Managers promote stability while leaders press for change, and only organizations that embrace both sides of that contradiction can thrive in turbulent times.
Leadership is different from management, but not for the reasons most people think. Leadership isn’t mystical and mysterious. It has nothing to do with having “charisma” or other exotic personality traits. It is not the province of a chosen few. Nor is leadership necessarily better than management or a replacement for it.
Rather, leadership and management are two distinctive and complementary systems of action. Each has its own function and characteristic activities. Both are necessary for success in an increasingly complex and volatile business environment.
Most U.S. corporations today are over-managed and underled. They need to develop their capacity to exercise leadership. Successful corporations don’t wait for leaders to come along. They actively seek out people with leadership potential and expose them to career experiences designed to develop that potential. Indeed, with careful selection, nurturing, and encouragement, dozens of people can play important leadership roles in a business organization.
But while improving their ability to lead, companies should remember that strong leadership with weak management is no better, and is sometimes actually worse, than the reverse. The real challenge is to combine strong leadership and strong management and use each to balance the other.
Of course, not everyone can be good at both leading and managing. Some people have the capacity to become excellent managers but not strong leaders. Others have great leadership potential but, for a variety of reasons, have great difficulty becoming strong managers. Smart companies value both kinds of people and work hard to make them a part of the team.
But when it comes to preparing people for executive jobs, such companies rightly ignore the recent literature that says people cannot manage and lead. They try to develop leader-managers. Once companies understand the fundamental difference between leadership and management, they can begin to groom their top people to provide both.
Management is about coping with complexity. Its practices and procedures are largely a response to one of the most significant developments of the twentieth century: the emergence of large organizations. Without good management, complex enterprises tend to become chaotic in ways that threaten their very existence. Good management brings a degree of order and consistency to key dimensions like the quality and profitability of products.
Management is about coping with complexity. Leadership, by contrast, is about coping with change.
Leadership, by contrast, is about coping with change. Part of the reason it has become so important in recent years is that the business world has become more competitive and more volatile. Faster technological change, greater international competition, the deregulation of markets, overcapacity in capital-intensive industries, an unstable oil cartel, raiders with junk bonds, and the changing demographics of the work-force are among the many factors that have contributed to this shift. The net result is that doing what was done yesterday, or doing it 5%better, is no longer a formula for success. Major changes are more and more necessary to survive and compete effectively in this new environment. More change always demands more leadership.
Consider a simple military analogy: A peacetime army can usually survive with good administration and management up and down the hierarchy, coupled with good leadership concentrated at the very top. A wartime army, however, needs competent leadership at all levels. No one yet has figured out how to manage people effectively into battle; they must be led.
These two different functions—coping with complexity and coping with change—shape the characteristic activities of management and leadership. Each system of action involves deciding what needs to be done, creating networks of people and relationships that can accomplish an agenda, and then trying to ensure that those people actually do the job. But each accomplishes these three tasks in different ways.
Management develops the capacity to achieve its plan by organizing and staffing—creating an organizational structure and set of jobs for accomplishing plan requirements, staffing the jobs with qualified individuals, communicating the plan to those people, delegating responsibility for carrying out the plan, and devising systems to monitor implementation. The equivalent leadership activity, however, is aligning people. This means communicating the new direction to those who can create coalitions that understand the vision and are committed to to its achievement
Finally, management ensures plan accomplishment by controlling and problem solving—monitoring results versus the plan in some detail, both formally and informally, by means of reports, meetings, and other tools; identifying deviations; and then planning and organizing to solve the problems. But for leadership, achieving a vision requires motivating and inspiring—keeping people moving in the right direction, despite major obstacles to change, by appealing to basic but often untapped human needs, values, and emotions.
A closer examination of each of these activities will help clarify the skills leaders need.
Since the function of leadership is to produce change, setting the direction of that change is fundamental to leadership. Setting direction is never the same as planning or even long-term planning, although people often confuse the two. Planning is a management process, deductive in nature and designed to produce orderly results, not change. Setting a direction is more inductive. Leaders gather a broad range of data and look for patterns, relationships, and linkages that help explain things. What’s more, the direction-setting aspect of leadership does not produce plans; it creates vision and strategies. These describe a business, technology, or corporate culture in terms of what it should become over the long term and articulate a feasible way of achieving this goal.
Most discussions of vision have a tendency to degenerate into the mystical. The implication is that a vision is something mysterious that mere mortals, even talented ones, could never hope to have. But developing good business direction isn’t magic. It is a tough, sometimes exhausting process of gathering and analyzing information. People who articulate such visions aren’t magicians but broad-based strategic thinkers who are willing to take risks.
Nor do visions and strategies have to be brilliantly innovative; in fact, some of the best are not. Effective business visions regularly have an almost mundane quality, usually consisting of ideas that are already well known. The particular combination or patterning of the ideas may be new, but sometimes even that is not the case.
For example, when CEO Jan Carlzon articulated his vision to make Scandinavian Airlines System (SAS) the best airline in the world for the frequent business traveler, he was not saying anything that everyone in the airline industry didn’t already know. Business travelers fly more consistently than other market segments and are generally willing to pay higher fares. Thus, focusing on business customers offers an airline the possibility of high margins, steady business, and considerable growth. But in an industry known more for bureaucracy than vision, no company had ever put these simple ideas together and dedicated itself to implementing them. SAS did, and it worked.
What’s crucial about a vision is not its originality but how well it serves the interests of important constituencies—customers, stockholders, employees—and how easily it can be translated into a realistic competitive strategy. Bad visions tend to ignore the legitimate needs and rights of important constituencies—favoring, say, employees over customers or stockholders. Or they are strategically unsound. When a company that has never been better than a weak competitor in an industry suddenly starts talking about becoming number one, that is a pipe dream, not a vision.
One of the most frequent mistakes that overmanaged and underled corporations make is to embrace long-term planning as a panacea for their lack of direction and inability to adapt to an increasingly competitive and dynamic business environment. But such an approach misinterprets the nature of direction setting and can never work.
Long-term planning is always time consuming. Whenever something unexpected happens, plans have to be redone. In a dynamic business environment, the unexpected often becomes the norm, and long-term planning can become an extraordinarily burdensome activity. That is why most successful corporations limit the time frame of their planning activities. Indeed, some even consider “long-term planning” a contradiction in terms.
In a company without direction, even short-term planning can become a black hole capable of absorbing an infinite amount of time and energy. With no vision and strategy to provide constraints around the planning process or to guide it, every eventuality deserves a plan. Under these circumstances, contingency planning can go on forever, draining time and attention from far more essential activities, yet without ever providing the clear sense of direction that a company desperately needs. After awhile, managers inevitably become cynical, and the planning process can degenerate into a highly politicized game.
Planning works best not as a substitute for direction setting but as a complement to it. A competent planning process serves as a useful reality check on direction-setting activities. Likewise, a competent direction-setting process provides a focus in which planning can then be realistically carried out. It helps clarify what kind of planning is essential and what kind is irrelevant.
A central feature of modern organizations is interdependence, where no one has complete autonomy, where most employees are tied to many others by their work, technology, management systems, and hierarchy. These linkages present a special challenge when organizations attempt to change. Unless many individuals line up and move together in the same direction, people will tend to fall all over one another. To executives who are overeducated in management and undereducated in leadership, the idea of getting people moving in the same direction appears to be an organizational problem. What executives need to do, however, is not organize people but align them.
The idea of getting people moving in the same direction appears to be an organizational problem. But what executives need to do is not organize people but align them.
Managers “organize” to create human systems that can implement plans as precisely and efficiently as possible. Typically, this requires a number of potentially complex decisions. A company must choose a structure of jobs and reporting relationships, staff it with individuals suited to the jobs, provide training for those who need it, communicate plans to the workforce, and decide how much authority to delegate and to whom. Economic incentives also need to be constructed to accomplish the plan, as well as systems to monitor its implementation. These organizational judgments are much like architectural decisions. It’s a question of fit within a particular context.
Aligning is different. It is more of a communications challenge than a design problem. Aligning invariably involves talking to many more individuals than organizing does. The target population can involve not only a manager’s subordinates but also bosses, peers, staff in other parts of the organization, as well as suppliers, government officials, and even customers. Anyone who can help implement the vision and strategies or who can block implementation is relevant.
Trying to get people to comprehend a vision of an alternative future is also a communications challenge of a completely different magnitude from organizing them to fulfill a short-term plan. It’s much like the difference between a football quarterback attempting to describe to his team the next two or three plays versus his trying to explain to them a totally new approach to the game to be used in the second half of the season.
Whether delivered with many words or a few carefully chosen symbols, such messages are not necessarily accepted just because they are understood. An-other big challenge in leadership efforts is credibility—getting people to believe the message. Many things contribute to credibility: the track record of the person delivering the message, the content of the message itself, the communicator’s reputation for integrity and trustworthiness, and the consistency between words and deeds.
Finally, aligning leads to empowerment in a way that organizing rarely does. One of the reasons some organizations have difficulty adjusting to rapid changes in markets or technology is that so many people in those companies feel relatively powerless. They have learned from experience that even if they correctly perceive important external changes and then initiate appropriate actions, they are vulnerable to someone higher up who does not like what they have done. Reprimands can take many different forms: “That’s against policy,” or “We can’t afford it,” or “Shut up and do as you’re told.”
Alignment helps overcome this problem by empowering people in at least two ways. First, when a clear sense of direction has been communicated throughout an organization, lower-level employees can initiate actions without the same degree of vulnerability. As long as their behavior is consistent with the vision, superiors will have more difficulty reprimanding them. Second, because everyone is aiming at the same target, the probability is less that one person’s initiative will be stalled when it comes into conflict with someone else’s.
Since change is the function of leadership, being able to generate highly energized behavior is important for coping with the inevitable barriers to change. Just as direction setting identifies an appropriate path for movement and just as effective alignment gets people moving down that path, successful motivation ensures that they will have the energy to overcome obstacles.
According to the logic of management, control mechanisms compare system behavior with the plan and take action when a deviation is detected. In a well-managed factory, for example, this means the planning process establishes sensible quality targets, the organizing process builds an organization that can achieve those targets, and a control process makes sure that quality lapses are spotted immediately, not in 30 or 60 days, and corrected.
For some of the same reasons that control is so central to management, highly motivated or inspired behavior is almost irrelevant. Managerial processes must be as close as possible to fail-safe and risk free. That means they cannot be dependent on the unusual or hard to obtain. The whole purpose of systems and structures is to help normal people who behave in normal ways to complete routine jobs successfully, day after day. It’s not exciting or glamorous. But that’s management.
Leadership is different. Achieving grand visions always requires a burst of energy. Motivation and inspiration energize people, not by pushing them in the right direction as control mechanisms do but by satisfying basic human needs for achievement, a sense of belonging, recognition, self-esteem, a feeling of control over one’s life, and the ability to live up to one’s ideals. Such feelings touch us deeply and elicit a powerful response.
Motivation and inspiration energize people, not by pushing them in the right direction but by satisfying basic human needs.
Good leaders motivate people in a variety of ways. First, they always articulate the organization’s vision in a manner that stresses the values of the audience they are addressing. This makes the work important to those individuals. Leaders also regularly involve people in deciding how to achieve the organization’s vision (or the part most relevant to a particular individual). This gives people a sense of control. Another important motivational technique is to support employee efforts to realize the vision by providing coaching, feedback, and role modeling, thereby helping people grow professionally and enhancing their self-esteem. Finally, good leaders recognize and reward success, which not only gives people a sense of accomplishment but also makes them feel like they belong to an organization that cares about them. When all this is done, the work itself becomes intrinsically motivating.
The more that change characterizes the business environment, the more that leaders must motivate people to provide leadership as well. When this works, it tends to reproduce leadership across the entire organization, with people occupying multiple leadership roles throughout the hierarchy. This is highly valuable, because coping with change in any complex business demands initiatives from a multitude of people. Nothing less will work.
Of course, leadership from many sources does not necessarily converge. To the contrary, it can easily conflict. For multiple leadership roles to work together, people’s actions must be carefully coordinated by mechanisms that differ from those coordinating traditional management roles.
Strong networks of informal relationships—the kind found in companies with healthy cultures—help coordinate leadership activities in much the same way that formal structure coordinates managerial activities. The key difference is that informal networks can deal with the greater demands for coordination associated with nonroutine activities and change. The multitude of communication channels and the trust among the individuals connected by those channels allow for an ongoing process of accommodation and adaptation. When conflicts arise among roles, those same relationships help resolve the conflicts. Perhaps most important, this process of dialogue and accommodation can produce visions that are linked and compatible instead of remote and competitive. All this requires a great deal more communication than is needed to coordinate managerial roles, but unlike formal structure, strong informal networks can handle it.
Informal relations of some sort exist in all corporations. But too often these networks are either very weak—some people are well connected but most are not—or they are highly fragmented—a strong network exists inside the marketing group and inside R&D but not across the two departments. Such networks do not support multiple leadership initiatives well. In fact, extensive informal networks are so important that if they do not exist, creating them has to be the focus of activity early in a major leadership initiative.
Despite the increasing importance of leadership to business success, the on-the-job experiences of most people actually seem to undermine the development of the attributes needed for leadership. Nevertheless, some companies have consistently demonstrated an ability to develop people into outstanding leader-managers. Recruiting people with leadership potential is only the first step. Equally important is managing their career patterns. Individuals who are effective in large leadership roles often share a number of career experiences.
Perhaps the most typical and most important is significant challenge early in a career. Leaders almost always have had opportunities during their twenties and thirties to actually try to lead, to take a risk, and to learn from both triumphs and failures. Such learning seems essential in developing a wide range of leadership skills and perspectives. These opportunities also teach people something about both the difficulty of leadership and its potential for producing change.
Later in their careers, something equally important happens that has to do with broadening. People who provide effective leadership in important jobs always have a chance, before they get into those jobs, to grow beyond the narrow base that characterizes most managerial careers. This is usually the result of lateral career moves or of early promotions to unusually broad job assignments. Sometimes other vehicles help, like special task-force assignments or a lengthy general management course. Whatever the case, the breadth of knowledge developed in this way seems to be helpful in all aspects of leadership. So does the network of relationships that is often acquired both inside and outside the company. When enough people get opportunities like this, the relationships that are built also help create the strong informal networks needed to support multiple leadership initiatives.
Corporations that do a better-than-average job of developing leaders put an emphasis on creating challenging opportunities for relatively young employees. In many businesses, decentralization is the key. By definition, it pushes responsibility lower in an organization and in the process creates more challenging jobs at lower levels. Johnson & Johnson, 3M, Hewlett-Packard, General Electric, and many other well-known companies have used that approach quite successfully. Some of those same companies also create as many small units as possible so there are a lot of challenging lower-level general management jobs available.
Sometimes these businesses develop additional challenging opportunities by stressing growth through new products or services. Over the years, 3M has had a policy that at least 25% of its revenue should come from products introduced within the last five years. That encourages small new ventures, which in turn offer hundreds of opportunities to test and stretch young people with leadership potential.
Such practices can, almost by themselves, prepare people for small- and medium-sized leadership jobs. But developing people for important leadership positions requires more work on the part of senior executives, often over a long period of time. That work begins with efforts to spot people with great leadership potential early in their careers and to identify what will be needed to stretch and develop them.
Again, there is nothing magic about this process. The methods successful companies use are surprisingly straightforward. They go out of their way to make young employees and people at lower levels in their organizations visible to senior management. Senior managers then judge for themselves who has potential and what the development needs of those people are. Executives also discuss their tentative conclusions among themselves to draw more accurate judgments.
Armed with a clear sense of who has considerable leadership potential and what skills they need to develop, executives in these companies then spend time planning for that development. Sometimes that is done as part of a formal succession planning or high-potential development process; often it is more informal. In either case, the key ingredient appears to be an intelligent assessment of what feasible development opportunities fit each candidate’s needs.
To encourage managers to participate in these activities, well-led businesses tend to recognize and reward people who successfully develop leaders. This is rarely done as part of a formal compensation or bonus formula, simply because it is so difficult to measure such achievements with precision. But it does become a factor in decisions about promotion, especially to the most senior levels, and that seems to make a big difference. When told that future promotions will depend to some degree on their ability to nurture leaders, even people who say that leadership cannot be developed somehow find ways to do it.
Well-led businesses tend to recognize and reward people who successfully develop leaders.
Such strategies help create a corporate culture where people value strong leadership and strive to create it. Just as we need more people to provide leadership in the complex organizations that dominate our world today, we also need more people to develop the cultures that will create that leadership. Institutionalizing a leadership-centered culture is the ultimate act of leadership.
