Anyone in a leadership position walks a fine line everyday, balancing the needs of clients and employees. Achieving this delicate balance requires plenty of flexibility. Jack Burke examines what it takes to succeed as a leader in today’s business climate.
When my philosopher friend Mike Manes of Square One Consulting talks about change, he reminds people about those big bad dinosaurs that couldn’t survive climatic change and died.
Recently I received this letter from a partner in an insurance agency:
'I have one business partner who thinks that to be successful in the future, you must merge with other agencies, open non-standard offices, and hire new producers. I have to agree with him about all of those options. We merged with an agency more than two years ago and with another agency just over a year ago. We’ve also looked at opening up another office and hiring a new producer.
'However, my biggest concern right now is being prepared internally for the future, and keeping up with the latest technology. My partner is in his 50s and doesn’t want to change the way he does business. He still requires the CSR to pull the file and come into his office to discuss the file or for him to ask a question. He has very little computer knowledge and does not want to go to t-filing in CL or to start using a scanner.'
The problem isn’t a new one — in fact it’s legion. And it’s not limited to the insurance business. It’s rampant throughout nearly every industry. I have frequent conversations with experts and consultants about this topic: the inability of a business owner to change.
Does this mean the owner must jump into the electronic pool with both feet, attend classes to learn computer technology, and begin subscribing to high-tech publications? Not a bad idea. Hearken back to an earlier day and ask yourself how well a business owner might have survived if they’d refused to integrate that new technological contraption — the telephone — into their business. Or how productive might that business have been if the secretary had to write letters in longhand because the owner didn’t trust typewriters.
Unfortunately, many of us baby-boomers cling to our first impressions of early automation technology, when it seemed that computers (think data processors) merely doubled the workload. After all, automation meant doing everything twice: once for the computer and then again using the old methods because we didn’t trust computers. Thankfully, those days are gone and only a true 'dinosaur' doesn’t appreciate the improved productivity of computer usage.
THE JOB DESCRIPTION
Before we castigate recalcitrant business owners, let’s look at the job description of an owner. I believe it can be summed up fairly easily:
- Provide the vision upon which the future of a company will be built.
- Create a nurturing, motivational, and empowering environment for staff
- Present the philosophical framework to serve the clientele.
- Generate a fair return on investment for the company.
Although this might seem oversimplified, these four categories cover just about everything a true leader must do.
To use a metaphorical example, the executives of a national bakery can run the company without ever having baked a loaf of bread — as long as they understand the process and are keenly aware and sensitive to both employees and customers. The conundrum, in the case of our friend’s partner, is that technology is an essential component for every facet of the owner’s job description.
THE VISION
Businesses are building the future technological block by technological block. Forget the retail side of Internet commerce; think in terms of communication, information resources, and back-end supply chain. Some pundits say that Jack Welch of General Electric blew his chance to retire with a bang when the Honeywell merger fell through. I disagree. Welch has already given GE the most valuable farewell gift possible: an introduction to the Internet.
Initially blind to the possibilities of the Internet, gentle spousal coaxing opened his eyes to a remarkable vista of electronic opportunity — not necessarily in selling products and services online, but in using the Web to more effectively manage the business of GE’s far-flung empire. My guess is that GE will save nearly a half billion dollars per year through more efficient Web-based management. By coordinating all travel electronically, the company already saves more than $1million per week (and that’s only one small area).
Even if true leaders never touch a computer keyboard, they must understand and appreciate the value of technology both today and in the future. How can one envision a future while ignoring the tools that will build it?
EMPLOYEES
A friend of mine manages one of LA’s top Hispanic radio stations. When the corporate ownership switched from English-speaking rock to Hispanic, he was soon the only person there who didn’t speak Spanish. Within a month he had a tutor at his office daily, and culminated his training with two weeks of immersion learning in Mexico City. He realized that he couldn’t manage a staff that spoke a language he didn’t understand.
We baby boomers grew up in an analog world. The young people we’re hiring have grown up in a digital world. We not only speak different languages, our brains are hard-wired differently. True leaders must acknowledge this fact and adapt to it by rewiring their brains to understand their technosavvy workforce. This wonderful prayer comes to mind:
'Lord, grant me the serenity to accept the things I cannot change,
the courage to change the things I can,
and the wisdom to know the difference.'
Even if you can’t perform the simplest task on a computer, you need to foster a high-tech environment that will allow your employees to maximize their productivity and usefulness to the company. Encourage their experimentation and support their accomplishments.
CLIENTS
Here’s the rub: Business isn’t about you, the owner. Business today is all about the customer. A business that lacks sensitivity to the needs, wants, and desires of its clientele will soon be out of business. You, as the business owner, no longer set the expectations of your clients. They already have their expectations — it’s up to you to meet and exceed them!
Today’s customers — after their experience from the Internet and from the performance of countless companies — expect speed, expertise, and 24/7 service. A company’s electronic presence and performance is not an optional, value-added benefit; it’s only the entry fee for doing business in today’s world.
A wonderful television commercial ran this past year in the Los Angeles area. In the dark of night, a crowd of people began gathering in a parking lot. As they left their vehicles, a look of profound amazement came over their faces as they stared in disbelief at a dark store with a closed sign on the door. Today’s consumer wants you to be there when they need you. And apart from manning offices on a 24/7 basis, the only viable way to do that is with technology.
The enlightened leader knows that the true leader is the customer and that the successful business leader is a follower trying to keep pace.
THE PROFIT
This one’s easy. Unless you embrace the new technology, there won’t be any profit to manage. The dinosaur will merely manage the process of placing the company in bankruptcy court, while others use technology to increase efficiency, better serve their customers, decrease expenses, and create greater profit.
A recent study showed that CEOs are no longer taking the long vacations that were common in the past. Most successful CEOs today feel that about five days is the longest that they can be away from the business. The reason: information and change is being processed so quickly, that they’d be foolhardy to absent themselves any longer than a week.
Leadership doesn’t mean the leader has a PhD in computer technology or is the brightest electronic star in the business. Leadership means a willingness to embrace change, so that your company can navigate the daily journey of business with the most powerful tools possible.
Remember, it’s not about you — it’s about your customers. If you can’t get them to where they want to go as quickly and as comfortably as possible, they’ll be looking for another ship on which to make their journey.