Leadership Insights
from the Untangle Doctor®
Blog Post Archive
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How to Build a Culture of Fear in 3 Easy Steps
Leaders, follow these three easy steps if you want to ensure that tough issues are never raised, that you don't receive early warning signs, and that employees are seen and not heard. If you follow these steps faithfully, you and your executive team will hold all the power. You will be secure in your conference room, knowing that no outside influences sway your decisions. You will be assured that you are right, and all others are wrong! But beware; pursuing this path could result in a totally avoidable train wreck. What if Merrill’s Board of Directors hadn’t turned a blind eye to internal risk managers who saw the dangers of collateralized debt obligations? What if AIG’s Board had recognized the folly of not holding its executives accountable for unsavory business practices?
What Yoga Teachers Can Teach Leaders About Untangling
I just returned from what is now an annual week-long sojourn to the Ixtapan de la Sal Spa in Ixtapan de la Sal, Mexico. Located two hours south of Mexico City, in an idyllic village, it is easy to unwind, reflect, and relax. The spa itself is reasonably priced and clean, with friendly staff. Visitors enjoy pampering and a veritable feast of classes. Every day, I attended a yoga class with Maria. Maria has a soothing voice with a German accent and guides students through a series of stretches and exercises that calm the mind and body.
More Crooked Tangles—Who Can We Trust?
In the past week, I have been repulsed by news of one of the biggest scams of all time. Bernard Madoff, head of Bernard L. Madoff Securities, allegedly conned scores of wealthy investors, lulled by promises of higher-than-average yearly returns. Madoff was the CEO of a company with over 200 employees. We don't yet have all of the facts. However, what is remarkable to me is that so many, including Madoff employees, did not question consistent financial returns that defy explanation. How could so many allegedly smart people believe that there are special algorithms that are immune from market forces? And how could so many ignore the red flags of a leader who became gruff and angry when questioned about his strategies?
Building Trust During Merger Integrations
According to a November 2008 McKinsey study, 22% of over 1400 executives from a cross-section of industries, geographies, and functional areas anticipate that they will be seeking merger and acquisition opportunities. That is, those companies that are still in fairly good financial shape will take advantage of opportunities to purchase complimentary companies at a lower price than usual.
When times are tough, it is human nature to batten down the hatches. However, when business is reduced to just a set of metrics and numbers without consideration to the human side of business, growth and productivity are unintentionally squelched. Several years ago some colleagues and I were making a sales pitch to the CEO of a large chemical manufacturing company set to make major large-scale change. We argued that there was a need to manage the human side of the change in order to get the desired return on investment. The CEO remarked that his employees would just have to "get over it." Fortunately, we were able to persuade the CEO and CFO that they could not afford to be distracted by employees who were not on board and aligned with the desired changes.