Each time Newport Board Group helps companies create alignment around the Four M’s (Market, Management, Model, and Money), we revisit the basic principle that Management begins with leadership from the top. Companies trying to move up the growth curve face complex transitions and organization development challenges. One of the most important transitions is creating leadership that can scale - to drive the organization to its next plateau, without the cost, disruption and potential risk of bringing in a new CEO or other member of the top team.
Create a Culture of Leadership
There is no greater contribution that a business owner or CEO can make to their enterprise than creating the right culture of leadership - and disseminating it throughout the organization. Leadership that deploys the right mix of inspiration and discipline, vision and accountability, openness to the market and internal execution is very likely to make their company successful.
I have seen well-intended but ill-equipped leaders push employees relentlessly to work harder and longer. My observation: when individuals are pushed to simply do more, the result is a decline in both the quality and quantity of performance. I have also seen management teams that, whatever they say, really believe that they are the key ingredient of success. They see the rest of the organization as made up of fungible “resources.” They are unlikely to succeed.
Effective leaders are those who present a compelling vision of where the company is headed, motivating employees to see a promising future for themselves if they help the company reach its goals. A culture of leadership requires its employees to collaborate, not compete for management’s favor. Individuals - regardless how talented, dedicated and ambitious - who work largely on their own will not drive scale. Groups and teams working together effectively will.
It’s not enough for employees to basically understand and be able to recite the company’s strategy and value proposition. Winning organizations are those whose employees help shape the execution of the strategy and value proposition in their day-to-day activities.
In the next part of this article, I will discuss the activities that are needed to truly create a leadership culture: coaching, mentoring, and teaching.
To learn how to create alignment on the 4 M's (Market, Management, Model, and Money) for your own company, download our ebook, "5 Steps to Survive No Man's Land."
About the Author
Bill’s career has focused on the markets Newport serves: emerging growth companies that need to get past No Man’s Land and private equity firms that invest in these firms. Contact or learn more about Bill here.
Connect with Bill on LinkedInPhoto Credit: Freedigitalphotos.net
