RAINMAKERS
the course .” Irene Rosenfeld , Former Chairman and CEO of Mondelēz International .
I often say that the primary role of leadership is to point to what matters most , which is the function of setting direction . Setting direction is the domain of deciding what and who you ’ ll become and how you intend to make that happen . Strategy , product development , performance targets , and culture are all examples of critical decision areas that fall under the domain of leadership , and require setting direction . Leaders also need to communicate the decisions they make in those areas effectively and repeatedly over time .
Planning and budgeting are required to successfully execute on the direction that has been set . But they , on the other hand , require coordination - determining the exact details , steps , resources , and timing necessary to move forward - a responsibility that is naturally embedded in each management function .
This distinction holds true not only at the macro levels of an organization - say , setting operational strategy ( a leadership responsibility ) and execution planning ( a management responsibility ), but also at the micro level ( think back to Sarah ’ s frustration with her HR director who wasn ’ t effectively setting direction for the healthcare assessment due to his leadership limitations , but who planned and executed the project well due to his strong management skills ).
A note of caution , particularly as we approach the next quarter and business planning season : long-term planning is not the same as setting direction ! Under the banner of “ strategic planning ,” all too often the actual conversation is 100 percent focused on execution planning , which is essentially what the team wants to “ do .” The critical leadership function of setting direction is overlooked or assumed to be known , so the team spends their valuable time planning to get to a place they haven ’ t clearly defined . Be sure to allocate time for both setting direction and planning as part of this year ’ s annual planning process . If you need help thinking through how , just ask !
Aligning People versus Organizing and Staffing
“ Growth is never by mere chance ; it is the result of forces working together .”
James Cash Penney , Founder of J . C . Penney Stores .
The leadership function of creating alignment is primarily a communication challenge - that is , to have them understand where you , they and the organization are headed .
Most leaders I know under communicate due to social projection , a psychological process through which they expect others ’ beliefs to be the same as their own . This causes leaders to falsely assume ( and believe ) that their people have the same information they do . In fact , nothing could be further from the truth !
Let ’ s say you ’ ve established clarity when it comes to purpose , core values , vision , strategy , and priorities . It ’ s a fantastic start , but how do you share and repeat that information ? And what about metrics or scoreboards to share progress and maintain alignment ? Who sees those , how frequently , and how well is the information understood ?
“ Most organizations I ’ ve encountered have a “ leadership development ” process that produces managers , not leaders ! That kind of confusion won ’ t get you where you want to go . “
What ’ s on your mind as a leader , should be on their minds . One way or another , repetition is the answer .
For managers , on the other hand , organizing and staffing requires careful coordination of resources like people , funds , equipment , and partners , such that the organization ’ s tactical goals can be accomplished . This requires systems , processes , and trade-offs . Details are critical , as is the imperative to get the right people into the right seats to ensure smooth execution and predicted results .
Here ’ s how Kotter sums it up : “ Managers look for the right fit between people and jobs . This is essentially a design problem : setting up systems to ensure that plans are implemented precisely and efficiently . Leaders , however , look for the right fit between people and vision . This is more of a communication problem . It involves getting many people , both inside and outside the company , to believe in an alternative future - and then to take initiative based on that shared vision .”
Motivating and Inspiring versus Controlling and Problem-Solving
“ There are only two ways to influence human behavior : you can manipulate it or you can inspire it .” Simon Sinek , Author and Speaker .
Since the function of a leader is to create change , making change attractive to their team is also essential to the role .
Change is hard for many people . It can be difficult to let go of the status quo , regardless of how well things might or might not be working . As such , organizational change is typically challenging and jarring to staff . Preaching vision in the form of a better future is an example of how leaders motivate and inspire people to embrace change . Here again , repetition pays .
But beware : there ’ s a fine line between hollow cheerleading and meaningful inspiration and motivation . Effective leaders understand the difference and invest considerable time in getting this right and continuing momentum to keep their people engaged over time .
Managers oversee the implementation of change and focus on adhering to a plan , detecting deviations ( or potential deviations ), and course-correcting . This is the essential domain of controlling outcomes and problem solving . Managers create and implement systems and structures to make outputs more predictable , to measure and detect deviations , and to solve the problems that inevitably present themselves along the team ’ s path .
I ’ ve seen entrepreneurs , CEOs and executives mistakenly blend these functions to their organization ’ s detriment . There ’ s no time or space to communicate a grand vision when granular planning and challenging prioritization decisions need to be made . On the other hand , the CEO who describes a very detailed
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