Why Executives Fail?

I recently received a summary description of professor Sydney Kinkelstein's article of 8 years ago: "Why Smart Executives Fail". In the article the author shared his field experience. Executive failures can be seen through the lens of bad habits. Here we go:

Habit #1. Executives see themselves and their companies as dominating their environment. This lack of respect for the competition can be fatal. Someone sooner or later will invent a better solution, if you are not vigilant. I worked many years ago for Control Data Corporation. The company does not exist anymore. Senior executives thought that dominance of the large computer systems world would make them invincible. Guess what? Here comes the PC.

Habit #2. Executives identify so completely with their company that there is no clear boundary between their personal life and their corporation's interests. This total association might be a manifestation of the character of the executive. You know the type. They introduce themselves with their titles because they have nothing else that matters to them more.

Habit # 3. Executives think they have all the answers. Leaders who have all the answers typically have no great followers. Know-it all leaders are shunned by bright subordinates. I had the opportunity to work for a brilliant man who unfortunately surrounded himself with claques -- clapping at every word, laughing at every joke, hiding their real feelings. A palace coup eventually toppled this executive.

Habit # 4. Executives ruthlessly eliminate anyone who is not completely behind them. This habit creates many yes-men and yes women, and idol worship. People with different ideas are essential in any great organization. I witness the presence of consultants inside an organization whose primary role was to police the loyalty of people toward the leader. Anyone suspected of being less than 100% compliant was soon relegated to the dust bin or pushed out. However, those who live by the sword tend to die by it, we are taught.

Habit # 5. Executives are consummate spokespersons, obsessed with company image. This blatantly way of seeking attention turns people off. Few like soap boxes. I have attended too many rah-rah meetings where everyone is driven to a high degree of fervor. That fervor, however, was not matched by results. Soon the top guy became a joke, not to be believed.

Habit # 6. Executives underestimate obstacles. Excessive hype plus yes-people eventually leads to painful lessons. The air of invincibility masks the potential for disaster. I witnessed during my career executives minimizing problems only to be overcome by them. In one case, a leader in hammer type printers company ridiculed the threat of the jet printer as being dirty and unable to print multiple copies. The growth of the jet printer industry followed. A missed opportunity!

Habit # 7. Executives stubbornly rely on what worked for them in the past. Changing times and changing situations often require a new set of answers and approaches. Talking about the great feats of the yesteryear is no antidote for pressing and tough issues. Getting trapped in a problem solving paradigm is akin to having blinders on.

Anyone of us can associate with at least one or more of the bad habits.

To know which one(s) apply to us makes us aware of the pothole in front of us. There are no perfect people but there are aware people. Awareness can facilitate clearer thinking and decision making. The most dangerous people inside an organization are those who do not know what they do not know. They are blind and ignorant at the same time.

Reflect on your own vulnerability. Manage it. Turn it into a positive. Have fun!

Life is not just breathing, it is acting

I did not say that; the famous Rousseau said it many, many years ago. He said: "la vie c'est nest pas respirer, c'est agir." The title is my translation.

Recently I saw this message on an office wall. It reminded me of the great wisdom and legacy of this great Frenchman. As a high school student (classical track) in Italy, we were required to read the works of all the major European writers, and Rousseau certainly fit that category. We read him in his native language -- French -- not through a translation. I was fluent in French as a teenager but unfortunately over the years I have lost my fluency, although I can read French comfortably. As a youngman, I admired Rousseau in particular. He lived during a critical period of French history. We owe much to the French revolution and the great writers of that period. They had a profound influence on the US declaration of independence.

The message from Rousseau resonates well in the management arena. Here in Silicon Valley, where I have lived for the past 50 years, I have seen variations of Rousseau's admonition, perhaps, not as elegantly as his. The one that I am fond of is "keep moving! To stand still is to fall behind!" In other words, do not stand there, do something (positively).

During our career journey we will encounter many decision forks. Taking a decision has a great deal of risk; too many unknowns, not enough information, or not enough experience. But choosing we must. The cost of not acting is often greater than the cost of acting. I have seen folks freeze as the proverbial deer caught in the head-lights of an oncoming car. I have also seen people choose without thinking through the risks. In the former case, people get run over by the oncoming traffic; and in the latter case, they wind up in places they do not want to go. There are consequences in both cases; but they are not the same. We gain wisdom through lessons learned. With wisdom, we improve our periphery vision, we learn about hidden pot holes along the way.

I am biased toward action. This bias comes from my up-bringing. I was told that "without pain, there is no gain." It has been drummed into my head to "take the bull by the horns." I have been chastised when I stood there, and I did not do something. I heard many times that "the best defense is a good offence." I was told that it is OK to make mistakes, as long as they not of the fatal kind.

I am aware that others with a different up-bringing were exposed to a different regimen of advice and counsel. They might have been reared to not make any mistakes, and to avoid failure. As a result, I see many suffer from "analysis paralysis," trying in vain to avoid risks. It is not easy to let go of a regimen inculcated in us from our formative years, but trying we must.

If others can succeed, so can you. So, don't just breathe, act. Enjoy the journey along the learning curve. You have company; you are not alone.

Know When to Hold Them, Know When to Fold Them

Poker is an interesting game to watch. It requires strategy, skill, and luck. When luck is not there, strategy and skill are essential. Competitors watch carefully your non-verbals. They are keen to identify any clues that will give away a strong hand, a bluff, a lack of concentration, fatigue, hesitation.

Questions: 

Can others "read" your hand? 

What clues do you give away? 

Can others tell when you are bluffing? 

Are you an amateur or a professional player?

Professionals know when to hang on to a dealt hand and when to throw it in. They calculate the odds, they "count" the cards, they watch competitors for clues, they do not give away their hand. They are "poker faced".

Amateurs ignore or play against the odds. They try to bluff others who are not easiy bluffed. Amateurs can win on luck in the short term but lose over the long haul to skill and better strategy. 

Of course, it is always better to be lucky than a better player. Luck makes everyone look like a genius.

I have observed this phenomenon often in the business word. 

I have seen individuals screw up a great career by being called on their bluff to resign over often a petty subject. I have seen individuals who do not know that they have a winning hand, thus settling for a meager win. 

Bet a strong hand. Throw away a weak one.

What kind of a player are you? 

 What are your strengths? 

 Your track record? 

Careers are more important than poker playing. I am using the analogy to drive a few points across. 

I wish you a great ride along the learning curve. Be a winner! God is on your side.