In the last issue of the ABRN MSO Supplement we discussed the importance of establishing leaders in your MSO business (Leadership: Pass it on, July 2017). I covered the difference between management and leadership. Briefly, management is about strategy and organization and coordinating. Leadership is about social influence of others in accomplishing tasks. The difference is in ability to influence the hearts and minds of people. It is what that person feels inside that can be such a great motivator, caused by the words and/or actions of the leader. I established that leaders can be born and they can be developed or a combination thereof. I covered some practical applications of identifying and creating leaders. I suggested that you become a “coach” to help turn some of your managers into leaders. Because this is such a powerful topic and so very relevant to the performance of your MSO, as well as our lives in general, let’s take a deeper look.
What difference does it make? Why bother?
In 1997, Gallup was asked by an extremely successful retailer to measure the strength of their work environment (as reported in “First, break all the rules,” by Marcus Buckingham.) The retailer employed 37,000 people across 300 stores. Each of the stores was designed and built to provide the customer with a consistent shopping experience. The building, colors, product positioning and every detail was honed to give the same brand identity in different markets across the country. Of the employee base, 28,000 chose to participate in a 12-question survey regarding the quality of their work experience. Questions included phrases like, “I know what is expected of me,” “Opportunity to learn and grow,” “Supervisor/Someone at work cares,” “Co-workers committed to quality,” and touched on topics including materials and equipment, what employees do best and the mission/purpose of the company. Answers were on a 1-5 scale.
The results indicated two major categories of performance with startling differences; let’s call them “Stores A” representing high scores and “Stores B” representing low performers. Whatever the company was trying to do for their employees from the center, at the store level, these initiatives were being communicated and implemented in radically different ways. Stores A must have offered a much more engaging work experience. Fifty-one percent of respondents in Stores A strongly felt (score of 5) cared about as a person, yet only 17 percent did in Stores B. Fifty-five percent in Stores A indicated with a score of 5 that they had a chance to do what they do best every day, yet in Stores B only 19 percent gave a 5. “Do your opinions count?” scored strongly with 36 percent in Stores A, but only 10 percent in Stores B. Even though stores were equipped the same, 45 percent in Stores A felt strongly that they had the equipment and materials to do their work properly while only 11 percent felt that way in Stores B. Conclusions were that each store’s culture was a unique creation of the managers and supervisors in the field!
When compared to the store’s performance, the results were compelling. Stores in the top 25 percent had sales 4.56 percent over their budget, while the bottom 25 percent were .84 percent below budget, or a difference of $104 million per year between the two groups. Profit/loss comparisons reflected by the top 25 percent was 14 percent above budget, and the bottom 25 percent missed their profit goals by 30 percent. Employee retention followed the same pattern. Each store in the top 25 percent retained, on average, 12 more employees per year than the bottom group. The cost to the company was estimated at $27 million for the low performers.
This example is a powerful illustration of what many of us know intuitively: that businesses with the best management/leadership perform significantly better in terms of financial results as well as perceived quality of the work environment.
Within our own industry, I-CAR performed research on shop performance before and after a number of shops had their staff participate in I-CAR training classes. They discovered those shops that had environments that contained a culture of learning experienced a very measurable increase in many key performance indicators after training. Those that didn’t have such a culture, ones where people complain and resist training and don’t have the encouragement of management, did not see the performance increases. Again, the difference was in the management and leadership of the shop. Leaders who create such a culture enjoy the benefits of better shop performance.
Leadership style
What makes some managers better performers than others when it comes to leadership ability? I will refer to the attributes and behaviors as “style” because these are the traits that are visible to the observer. Here are my top 10:
1. A real leader listens firsts and acts second.
Someone who jumps to conclusions without first seeking to understand has made a fatal error — for themselves and their team. In order to lead people effectively, you have to take the time to listen and see things from their perspective. Good listening skills can be among the most powerful attributes of the leader.
2. A real leader knows what they don't know.
It's dangerous when someone claims to "know everything." Usually it is a sign that they don’t, but yet they want you to think they do. A good leader is OK with not having all the answers, and knowing that they will find the people who do. They don't see it as a weakness — because it's not. It's merely part of the process.
3. A real leader doesn't make decisions in the heat of the moment.
You know those bosses that get all riled up and then start rapid-firing people? That's not a leader. That's a trigger-happy manager on a power trip — and there's a difference. A leader waits until the heat of the moment has passed so that he or she can give solid thought to the situation before coming to a conclusion. In many cases it is best to not make a decision until you have to. Patience is a virtue.
4. A real leader gives constructive, not negative, feedback.
There is a difference between "constructive criticism" and plain negativity. People who spew negativity aren't doing anything to help anyone. A great leader looks for ways they can help, not ways they can tear others down in the process.
5. A real leader never acts like the smartest person in the room.
If someone surrounds themselves with people less qualified than they are in an effort to remain in a position of power they are insecure. You never want to be the smartest person in the room — and if you are, you're in the wrong room. Great leaders seek to surround themselves with the best talent. It is instead the leader’s role to orchestrate their talented people into a successful team. Humility is a virtue.
6. A leader focuses on the strengths of people.
The most successful leaders put people in positions where they can utilize their talents to succeed rather than putting a lot of energy into “changing” or “fixing” people to create a desired outcome.
7. A real leader cultivates a positive culture.
Being results-driven is great, but a culture that produces results has to be healthy in some way, shape or form. And creating that culture takes hard work. A great leader knows that they are not the center of attention, and what's more important is creating an environment where others feel empowered to succeed, bring ideas to the table, and think for themselves.
8. A real leader does what has to be done.
Anyone who says, "That's not my job," isn't leading by example. Yes, people need to stay their lane and be responsible for their own work, but when there's a fire and it's all hands on deck, a leader doesn't step back and say, "All right everyone, go figure it out." They get right to work with them.
9. A real leader always finds a way.
Anyone that says, "It's impossible. We can't," isn't fit to lead. A true leader knows that there is always a way. It might not be the way anyone had originally planned for, but it's a way nonetheless. Great leaders find the roads less traveled, and do whatever needs to be done in order to get their team over the obstacle ahead.
10. A real leader celebrates the process as much as the rewards.
True leaders know that greatness is not something that happens immediately. Greatness is the result of hours, days, weeks of diligent practice and effort. They celebrate the process and the day-to-day hustle as much as they do the big grand finale.
Passing it on
Frankly, I believe that the leader whose style is described above will naturally want to pass on the skills to those up-and-coming people. Such a person cares about others and wants to see them succeed. They are not threatened by the young leader surpassing them. They understand the necessity for transition and growth and evolution.
So, in conclusion, how do we pass on leadership skills to others? We start by perfecting our own skills! We strive to be among the best and most competent and effective leaders. As our team enjoys the successes driven by our increased skills talented staff will grow in their performance. People with talents will become apparent to us. We must be observant and willing to nurture and to coach and to empower them. It is among the greatest gifts we can give to them. It is also among the greatest rewards of being a leader.
