Management Matters Blog

Are You a Top CEO? Find Out in Mike Myatt's New Book!

 

Now, whether you are one already, or are still a CEO-in-waiting, you’ll find both fascinating and useful insights into the game in "Leadership Matters…The CEO Survival Guide," by CEO coach and CPN columnist Mike Myatt.

It takes more than talent to make it at the top. And according to Sydney Finkelstein, Steven Roth Professor of Management at the Tuck School of Business at

Dartmouth

, this book contains essential information. "Mike's book is a must read for anyone who is serious about surviving and thriving as a CEO in today's business world.”

And not just renowned business academics have found “Leadership Matters” important and useful. Says everyone’s favorite “The Apprentice” powerhouse Carolyn Kepcher, now CEO of Carolyn & Co., "Mike's book has captured the essence of what it takes to become a successful CEO while maintaining balance and perspective."

Here’s a quick sample of the straight-ahead style and wisdom-you-can use from Mike’s new book. It’s the style and substance that you’ve told us you so appreciate finding in his regular CPN Friday columns, and blog:

So, you want to be a CEO? Well you’re not alone…the reality is that most executives have thought about it at some point in time even if only to second guess their boss. As with most things in life thinking about something as contrasted with actually doing something are altogether quite different propositions.

Let’s begin with taking a look at the numbers…only about 1/1000 of 1 percent of the total worldwide workforce will ever become a CEO. Even if you’re good enough to reach the corner office you should know that the average tenure of a CEO has fallen to an all time low of just less than 4 years. Furthermore out of those who defy the odds and become the chief executive more than half of them will be regarded as failures. Of those CEOs that succeed, only a small percentage will be regarded as truly great CEOs.

What existing CEOs know that aspiring CEOs have not yet figured out is that there is no tougher job than that of the Chief Executive Officer. Let me be very clear…if you think you want to be a CEO so that you can kick back and put your feet up on the desk while barking out orders and raking in the big bucks, STOP HERE…put this book aside now because you are not CEO material…you are delusional.

No single position within the corporate hierarchy receives the unrelenting and often terse scrutiny (public and private) that a CEO must deal with. The pressure is intense and the risks are high, but the rewards can be tremendous for those who possess the requisite leadership skills and character to hold the title of chief executive. Many CEOs initially rise to their position based upon leveraging a particular skill set, however a single area of strength will rarely be enough to keep a CEO in the corner office for long. Those CEOs who remain in the position long-term do so largely based upon the ability to broaden and deepen their skill sets and competencies while developing a clear understanding for the priorities of the job.--Tom Dworetzky

 

Can You Control Gossip?

By Mike Myatt, Chief Strategy Officer, N2growth

At first blush the topic of gossip may seem like a subject more worthy of coverage on the entertainment channel than in a management column, but as much as I wish it wasn't so, gossip is alive and well in the world of business. Anyone who has been in business for any length of time has likely been on the receiving end of gossip that didn't feel so good. While the emotional distress associated with gossip can be dealt with fairly easily, the political discord that can erupt can be nothing short of disastrous for a business. In this week's column I'll share my thoughts on how to control gossip in the workplace.

If what you desire as an executive is to have a healthy, thriving and productive company it is essential that you curtail office gossip. Gossip is one of the most divisive undercurrents pervading the workplace as it allows for the unnecessary dispersion of negative innuendo for the pleasure of a few, and to the detriment of many…Show me a person that participates in gossip and I’ll show you someone who cannot be trusted. People who participate in gossip often times view their activity as being politically savvy when in fact gossip is the tool of insecure, rank amateurs…

I’ve written often on the importance of building solid relationships through displaying a consistency of character, creating a bond of trust, making good decisions and striving to help others succeed. When you take part in gossip you do none of these things, and if fact you seriously undermine each one of the aforementioned success metrics by partaking in gossip. At its core, gossip is the highest form of disloyalty and far from innocent or idle. Nothing can claim more tainted professional reputations, destroyed friendships and polluted corporate cultures than gossip.   

The best definition I’ve found for gossip is: “Gossip is talking about a situation with somebody who is neither a part of the solution nor a part of the problem.” If you have a problem with a person or take exception to a particular situation go directly to the source. There are few things in life I loathe as much as those that don’t have the courage and integrity to hit things head on…If I have a problem with someone I give them the courtesy and respect of addressing the issue with them. Talking to anyone else wouldn’t resolve the issue it would merely be self serving indulgence at someone else’s expense. In fact, it is my opinion that the worst form of gossip is conducted under the guise of seeking advice or counsel. If you need to seek the wisdom of a third party prior to addressing the root issue, do it generically and anonymously so as not to impune the character of another. 

In the same fashion that being the source of gossip is destructive so is furthering the damage by ratcheting up the rhetoric by participating in gossip. If someone comes to you about a problem with another person immediately redirect that individual back to the person in question. If that doesn’t work and you must get involved offer to accompany the person with the problem in addressing the individual they have an issue with. I have watched many a well intentioned executive get sucked into gossip in an attempt to help, only to pay a big price down the road for their error in judgment. If you want to be a long-term survivor in business I would suggest that you not participate in gossip and get rid of those that do. Remember that those individuals that will gossip to you will also gossip about you.

Many would suggest that the thought of eliminating gossip in the corporate world is an exercise in naiveté. They would take the position that gossip is just part of human nature and that gossip will always exist in any type of environment where the complexities of social dynamics are present. The old saying “it is what it is” is only true until you decide to make a difference. As a leader it is incumbent upon you to do the right thing which is to protect your reputation and those that you work with. Furthermore, allowing anyone under your charge to participate in any activity that does anything other than that makes you an accomplice in the decline of morale and the decay of your corporate culture. Put simply, good leaders don’t tolerate gossip.

How Can You Measure Your Personal Brand Equity?

 

By Mike Myatt, Chief Strategy Officer, N2growth

I'm often asked how to tangibly measure personal brand equity and my answer is quite simple. The value of a personal brand is directly proportionate to its ability to create and wield influence.

When it comes to the subject of personal branding much has been written about authenticity, transparency, marketability, thought leadership, etc., but it is the ability to leverage the sum of these individual brand components for influence that determines the true strength of a personal brand. Put simply, a personal brand that cannot open doors or influence actions and decisions is not much of a personal brand. 

When I refer to influence I’m not talking about manipulation, cheap marketing gimmicks, or other forms of skullduggery, as ill-gotten gains will always be exposed for what they are, and will never be worth the compromises that were made in order to achieve them. Not only is true influence much easier to acquire, but it is also sustainable. Put simply, true influence is nothing more than leveraging your personal brand to work with and through others to achieve a stated objective while staying true to your core values and maintaining your integrity.

The following concepts comprise the three pillars of influence, which if properly understood and implemented can help anyone become more efficient, productive, secure and successful:

1. Influence is built upon making others successful. This is often times referred to as the law of reciprocity. The theory is that if you invest yourself in making someone else successful then they in turn will likely be predisposed to helping you become successful. While this principle will not always pan out, in my experience it has held true in well over 90% of my interactions over the years.

2. Likeability. People do business with people they like and avoid doing business with people they don’t like…it’s just that simple. Are you approachable, positive, affable, trustworthy, a person of character and integrity or are you someone who is standoffish, pessimistic and generally not to be trusted? Those the fall into the camp of the former as opposed to the latter will find themselves having more influence and success.   

3. Value and scarcity drive influence. Understanding the value of your position, brand, authority, resources, access to people or knowledge and any number of other items as it relates to fulfilling the needs and desires of others creates influence. To the extent that anything under your direct or indirect control is scarce or proprietary your ability to influence will increase significantly. 

Bottom line: Don’t manipulate for personal gain rather facilitate for mutual benefit. Take a sincere interest in the success of others, work on your likeability factor, have access to things of value or scarcity, and as your influence with others increases so will the value of your personal brand.

Do You Have Competitive Separation?

By Mike Myatt, Chief Strategy Officer, N2growth

Competition is clearly part of any free market economy, and quite frankly, a little competition is a very healthy thing. That being said, competition can quickly transition from serving as an incentive to stay on your game to an outright disaster if your company, product, service, brand and talent are not up to par with others in your industry.

How your business chooses to position itself against the competition will have a very direct impact on the success or the failure of your enterprise. The name of the game when it comes dealing with competition is to create separation.

You can significantly increase your chances of leading the pack by creating a competitive edge. Having a competitive edge simply means possessing either a strategic or tactical (preferably both) advantage over your competition. A good competitive advantage doesn’t usually materialize by osmosis, but rather it is normally established as a result of solid strategic planning and strong operational execution capabilities.

The first step in the process is to understand your market. Before you can even remotely begin to accurately identify your competition, it’s crucial to first define and analyze your target markets by conducting some preliminary market research and business intelligence. It never ceases to amaze me how many organizations fail to validate proof of concept before making huge financial commitments and embarking on flawed initiatives.

At a bare minimum at least adhere to the basic process outlined below which will allow you to validate your business logic: What are you selling and to whom is it being sold? Next, make a list of those companies trying to do the same. What are their strengths and weaknesses, their strategies and goals and how do they position themselves in the market and attract new business? What, if anything, makes them stand out from the pack?

If you don’t currently possess the vital information mentioned above, I recommend moving heaven and earth to acquire it quickly. I’m not suggesting that you operate in awe of your competition, nor do I believe you should fear them.

That being said, you absolutely must find out who they are and what makes them attractive to current and potential customers. Assessing your competitors openly and honestly will play a key role in helping you develop a competitive edge.

Remember, winning companies aren’t successful by accident, though often it may seem that way. A closer look usually reveals that most have sized up their target markets and zeroed in on a unique approach to meet their customers’ needs, values and expectations. Through important considerations like location, product, services and product features, they have somehow found a fresh spin, a new way to offer buying incentives that similar companies either can’t or don’t offer.

Once you have developed a competitive edge, maintaining it will be a constant challenge. It will require you to move from retroactive, historical analysis to a place where you are forward looking in your approach in order to forecast where the trends and changes in your industry will come from, and what your company can do to stay ahead of the curve. Maintaining competitive separation demands that you continuously track your competitors and their future plans. You will also need to recognize that through over time your market is likely to change and evolve due to any number of circumstances, many of which may be beyond your control. Your company must be flexible and willing to change as well. The following questions are designed to help you determine whether your company has a competitive edge:

1. Does your company have a clearly defined vision, mission and strategy?

2. Is your target market accurately identified and understood?

3. Who are your companies primary, secondary and emerging competitors?

4. Does your company have an ongoing business intelligence effort that tracks ongoing competitive efforts?

5. Does your company exploit its competitor’s weaknesses? == 6.Does your company assess and learn from both internal and competitive mistakes?

7. Does your business leverage competitive opportunities?

8. Does your company possess a uniqueness that easily separates it from competitors? == 9.Given the choice would you use your own product or service or that of your competition?

10. Does your company command a premium or discount price and is this by design or default?

11. Does your company regularly assess customer loyalty and satisfaction? 

12. Is your company sensitive to customer needs and requests?   

13. Does your business focus on innovation?

14. What is your company doing today to ensure that it has the capabilities and resources to compete in the market five to 10 years from now?

The bottom line is this: Given today’s competitive market, if you continue to address the competition in the same fashion that you have in previous years you will see your market share erode, your brand go into decline, your talent and your customers jump ship and your potential never be realized. Remember: Disrupt the competition and prosper. Don’t and suffer the consequences.

The Power of Disruption

By Mike Myatt, Chief Strategy Officer, N2growth

How disruptive is your business model? While much has been written about corporate vision, mission, process, leadership, strategy, branding and a variety of other business practices, it is the engineering of these practices to be disruptive that maximizes opportunities. Without a disruptive focus you are merely building your business model on a "me too" platform of mediocrity. In this week's column I'll examine the power of disruption as a key business driver.

Disruptive business models focus on creating, disintermediating, refining, reengineering or optimizing a product/service, role/function/practice, category, market, sector or industry. The most successful companies incorporate disruptive thinking into all of their business and management practices to gain distinctive competitive value propositions. “Me too” companies fight to eek out market share in an attempt to survive while disruptive companies become category dominant brands insuring sustainability.

So why do so many established and often well managed companies struggle with disruptive innovation? Many times it is simply because companies have been doing the same things in the same ways and for the same reasons for so long that they struggle with the concept of change.

My engagements with CEOs often focus on helping them to embrace change through disruptive innovation. Why didn’t the railroads innovate? Why didn’t Folgers recognize the retail consumer demand for coffee and develop a Starbucks-type business model? Why didn’t IBM see Dell and Gateway coming? Why have American auto-makers been relegated to inferior brands when contrasted to their European and Asian counterparts? How did the brick and mortar book stores let Amazon get the jump on them?

I could go on-and-on with more examples, but the answer to these questions are quite simple. The established companies become focused on making incremental gains through process improvements and were satisfied with their business models and didn’t even see the innovators coming until it was too late.

At one end of the spectrum take a look at the companies receiving investment from venture capital and private equity firms and on the other end of the spectrum observe virtually any category dominant brand and you’ll find companies with a disruptive focus putting the proverbial squeeze on the “me too” firms occupying space in the middle of the spectrum. With the continued rapid development of technology taking the concept of globalization and turning it into hard reality facing businesses of all sizes it is time for executives and entrepreneurs to examine their current business models from a disruptive perspective.

Ask yourself the following questions:

1. When was the last time your business embraced change and did something innovative?

2. When was the last time you rolled-out a new product?

3. When was the last time you entered a new market?

4. Are any of your executives thought leaders?

5. When was the last time you sought out a strategic partner to exploit a market opportunity?

6. Do you settle for just managing your employees or do you inspire them to become innovators?

7. Has your business embraced social media?

8. When was the last time your executive team brought in some new blood by recruiting a rock star?

9. Does anyone on your executive team have a coach or mentor?

10. Has anyone on your executive team attended a conference on strategy, innovation or disruption in the last year?

If you’re an executive or entrepreneur and you can’t answer yes to the majority of the questions above then your company is likely a market lager as opposed to a market leader. If you continue to do the same things that you have always done in today’s current market environment you will see your market share erode, your brand go into decline, your talent and customers jump ship and your potential never be realized. Remember the definition of insanity is continuing to do the same things while expecting different results. Bottom line: change, innovate, disrupt and prosper.