In today's issue
>> A Note From Rand
>> Feature Article: Dialogue — It's Not What You Think
>> Additional Thoughts: If You Want to Manage It, You Have to Measure It
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Note From Rand
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I'm a person with strong faith and hope. I know this because I'm a Washington Redskins fan. The "faith" part has been important because I enter each football season believing that this will be the year. The "hope" part enters the picture at the end of each football season as I look forward to the following year. As I write this, it's two hours to kick-off and the 'Skins are in first place in the Eastern Division of the NFC. I'm hopeful that they discover an offense and rally to a successful season. I need a little more faith, however!
I have both faith and hope that you'll find this month's articles informative. Many people use the terms dialogue, discussion and conversation interchangeably. They are very different concepts and skills. The first article covers the necessity of dialogue for effective leadership.
The second article focuses on the priority of developing relevant organizational performance indicators. It is absolutely true that "if it can't be measured, it can't be managed." I hope you enjoy them both.
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Feature Article: Dialogue — It's Not What You Think
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Leadership is a conversation. Think about it. If the purpose of leadership is to institutionalize change and influence those who must execute, then ultimately leaders must get people - individuals and teams - to want to do what needs to be done. The key word here is want. When I was a 20-something-year-old recent college graduate, one of my first bosses was a guy who managed by fear and intimidation. He was extremely adept at getting people to do what needed to be done, but the only want involved was the wanting to keep our jobs.
Take a look at the top arrow in the diagram. I've illustrated the point that while leadership is a conversation, those conducted by business leaders vary in type and quality. Many leaders try to influence others with diatribes. Those are mind-numbing monologues intended to transmit a demand for action in as little time and with as little discourse as possible. Diatribes occasionally include some contrived "get-one-for-the-Gipper" language, as well. If you were looking through a glass wall at a diatribe, one party (typically, the one with more power or authority) would be doing all of the talking and the others would be doing all of the listening.
Moving across the continuum, the next form of conversation is discussion. In a typical business discussion, the parties bring their preconceptions and points-of-view to an exchange that is often, but not always, unproductive. Most of the time, the intention is not to change minds or resolve a problem just to express an opinion.
At the end of a business debate, presumably, a decision is reached. While debates frequently result in decisions, however, they still frequently create win-lose outcomes that do not engender enthusiastic support.
A dialogue is the most robust and fruitful form of conversation. It creates a "pool of shared meaning." It requires engaged listening. For many managerial leaders, listening is invoked only to allow for catching their breath before resuming their diatribe. Dialogue creates an understanding of context, perspective and insight as well as content.
Effective leaders recognize some key points outlined on the diagram. First, a part of managerial leadership — maybe the most important part — is developing future leaders. Second, learning by all parties ought to be an outcome of leadership conversation. Third, while the time required is considerable, it's a small cost considering the substantial benefits. Fourth, dialogue gives you the best chance to gain commitment to ideas and initiatives. Take a look at the bottom arrow on the graphic. If your organization requires positive energy and voluntary contribution rather than obedience, where do you need to be on the scale from diatribe to dialogue? Remember: Obedience may get you to this quarter's financial targets, but it won't get you to the promised land!
Dialogue is the best route to mutual understanding, conviction, energy, development and commitment. It is not, as some would cynically speculate, the route to terminal niceness; it is the route to the achievement of results.
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Additional Thoughts: If You Want to Manage It, You Have to Measure It
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Since what gets measured regularly has a greater chance of getting done, I frequently ask new clients what they measure. I'm usually amazed at how little a connection they make between the things they measure, on the one hand, and what matters to the success of the business, on the other. My purpose here is to provide a brief tutorial on developing relevant measures for your enterprise, whether you operate a $1 million revenue business or a Fortune 500 multinational.
The first step is identifying the categories of performance in which the business must achieve results. These include, but are not limited to, major financial categories. For a large financial services firm with which I worked, those were pre-tax operating income, human resources, customer focus and regulatory management.
Next, for each category, brainstorm all of the elements, without regard for their hierarchy, that might contribute to the performance of that category. Don't quantify acceptable performance; merely include all of the indicators. As shown in the chart, if you're looking at net income, two of the indicators will probably be expense and revenue. There will obviously be others, as well.
Expand each sub-category by listing the elements that drive performance in each. In the revenue category, three of those might be volumes, prices and mix.
Continue the exercise to another level. Sales opportunities, close ratio and items per close might contribute to volume.
At some point, you'll run out of measures (or patience). Your next step will be to develop specific measures for each indicator. Those can be hard numbers, percentages or significant achievements, depending on the category and indicator. In any event, they need to be measurable or observable. Subsequently, figure out which of these can currently be measured and reported by existing management information systems. Supplement those with manual reports, when necessary and practical. The objective is to measure what you want to manage and not to manage what you currently measure. Your predecessor may have created irrelevant metrics just to have metrics. (It couldn't have been you!)
This approach can be used at any organizational level — corporate, division, staff group, function, department or individual. It should serve as a guide when establishing objectives and action plans, as well.
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About Rand Golletz
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Rand Golletz is a executive coach and consultant. With more than 25 years in leadership roles, including CEO, chief marketing officer of a Fortune 100 company and international strategy consultant, Rand brings an unparalleled level of business expertise to his profession.
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