Results, profits, productivity…these are the outcome of effective leadership right? People who get results are respected and valued as leaders. The bottom line is that good leaders hit their numbers and meet their goals.
However, there is more than one way to “hit the numbers.” We know all too well the corporate challenge in meeting their quarterly numbers in order to satisfy the stockholders. Rather than focusing on the stockholders, perhaps the bigger question for today’s leaders is “Have you satisfied your stakeholders?”
A leader’s position is secure only as long as the stakeholders remain satisfied. Take a minute to visualize yourself sitting on a three legged stool as the leader. Each leg represents one of your primary sets of stakeholders. As long as all three legs are solid, you are supported and secure in your role as the leader. However, if one or more legs become shaky, your position as the leader can quickly become unstable.
Most leaders have three main sets of stakeholders (some have four). Generally, they fall into the following categories: 1) Customers/Community, 2) Supervisors/Board of Directors, and 3) Staff/Employees. The key is to balance your energy and focus between the three groups.
If a leader becomes too focused on one group of stakeholders or neglects the thoughts and feelings of a set of stakeholders, it will not be long before the leader’s stool topples over and the leader is dethroned. In a recent interview with award winning Police Chief Ed O’Bara, he explained this concept by saying he was brought in as the new chief because the previous leader had angered the community and alienated his supervisors (the city council). When these two legs of his leadership became unstable, the former police chief’s tenure was terminated. So what can a leader do to turn things around or prevent this result?
- Be Proactive in Communicating With Your Customers or Community. O’Bara changed the paradigm for policing in his city from targeting speeding motorists and writing tickets for failing to come to a complete stop. His new model challenged officers to personally meet every resident in their assigned districts by knocking on doors, delivering information packets to new move-ins, setting monthly goals for neighborhood safety, and he instigated a policy that residents would first receive a warning ticket for a traffic violation as long as they did not have any traffic violations in the previous six months. O’Bara places a high priority on community oriented public safety (COPS) and he expects his officers to smile and be friendly at all times. Needless to say, his actions have generated positive support from this leg of his leadership stool.
- Try to View Things From Your Supervisor’s Perspective – Everybody has a boss. Even the President of the U.S. is accountable to Congress and corporate presidents and CEO’s are no exception. While it is true that the view at the top is bigger and may seem more attractive, the top leadership positions also have more pressures. Supervisors and boards of directors have to listen to the complaints of others whenever people are unhappy or things are not going well. So, how can you generate support from your supervisors?
- Keep them informed – When you keep your supervisor/s up-to-date and knowledgeable on progress, successes, and challenges, they are more likely to trust you and to have your back when the inevitable complaints come.
- Support the leaders above you when others gripe and complain. If you expect to be supported when complaints arise about your leadership, make sure you have been supportive of those you report to. You are going to generate some complaints even if you are creating positive changes and you will want your boss to support you.
- Be Fair With Staff and Employees – We know that all employees are not created equal when it comes to performance. Employees do all have some things in common though…the need to feel valued and to be treated fairly.
If your strategy for compensation and recognition is geared towards rewarding right choices and desirable behavior, you are more likely to get the performance you are seeking. Peak performers resent it when everyone receives the same reward and recognition, especially those whose performance and commitment may have been subpar. On the other hand, the whole team is de-motivated when only the top performer receives recognition. Have a fair plan for rewards and recognition.
Design clear guidelines and standards for performance and recognition. Then make sure the people who achieve the goals are given the appreciation they deserve. The old principle is still true that “You get the results that you recognize and reward.”
Finally, great leaders recognize the importance of every job and make every employee feel valuable. How profitable is this? Check out the profitability of the companies voted as the top 100 Best Places to Work in the U.S - http://www.greatplacetowork.com/great/results.php.
In terms of profitability, the “Top 100 Best Places to Work” companies produced nearly double the annual returns from the S&P 500 and the Russell 300 from 1998 to 2006. On an annual basis they receive more qualified job applications, experience a lower level of turnover, reduced their health care costs, enjoy higher levels of customer satisfaction and customer loyalty, foster greater innovation, creativity, and risk taking, and benefit from higher productivity and profitability. These companies are described as places where employees “trust the people they work for, have pride in what they do, and enjoy the people they work with.”
So you want sustained performance from your organization? Focus your attention on the three legs that support your role as a leader. You will become a peak leader by shifting your attention away from yourself and focusing on the needs and goals of your stakeholders.