A Leadership Conversation

Harry and Elizabeth: A Leadership Conversation

Contents

Foreword (page 4)

Carry your Wisdom Lightly (page 6)

Escaping from your Own Importance (page 15)

Beautiful Mistakes (page 27)

The 100-year Leadership Horizon (page 33)

Leadership as Stewardship (page 41) Leadership Legacy and Succession (page 48)

Letting Go of Power (page 55)

Never Mistake Motion for Action (page 61)

He who does not trust enough, will not be trusted (page 69) The Plumbing to Poetry Leadership Spectrum (page 74)

To See Ourselves as Others See Us (page 81)

Escaping from Passive Leadership (page 88)

Integrity has no need for Rules (page 94) A Leader’s Values (page 102)

Enron: Values Free Leadership (page 111)

We Don’t Have Time for Values (page 120)

Time to Fire your Chief Operating Officer? (page 124)

Choosing a Course of Leadership Action (page 131) Challenging the Passive Aggressive (page136)

Wise Leaders Connect their Past with their Present and their Future (page 145)

Leaders – First, do no harm (page 150) Loyalty is a Two-Way Street (page 156) Trust is Like an Echo (page 162) Making the Big Call (page 167) Chief Innovation Officer? (page 174)

You’re not a fan of psychometric tests, are you? (page 180)

Leading Innovation (page 192)

A Leader’s Vision (page 200)

Mission Command and Commander’s Intent (Page 209)

Leadership Sincerity (page 216) Positivity (page 221) What makes a Great Team? (page 229)

Foreword

‘The Integrity of Leadership: A Confidential Conversation’ draws upon conversations with senior leaders from some of the world’s most successful businesses and is underpinned by the most recent research in the field of leadership. The book builds a narrative that is intended to engage, inform and challenge the reader to reflect upon their own leadership behaviour through the power of story.

“Tell me the facts and I’ll learn. Tell me the truth and I’ll believe. But tell me a story and it will live in my heart forever.” Anonymous

The connecting feature of all of these conversations is the centrality of integrity to the success of inspiring, effective and sustainable leadership. For the purposes of this book integrity is defined as the living out of ethical, authentic and sincere leadership behaviour.

The reality of the mentoring environment means that we can rarely access the confidential nature of these conversations. By creating two characters, based upon a synthesis of many individuals, it is possible to share these lessons in a manner that protects and defends the identity of the individual.

All of the characters who feature in this book are an amalgamation of many different people and no single character is intended to represent an actual person, either living or dead (unless indicated by an asterisk). In a similar fashion the actual stories connect with multiple real-life examples to maximise the learning impact.

The two central characters in the book are Harry, who is the CEO of a publicly listed financial software company, and Elizabeth, who is a retired Fund Manager who lives on Fifth Avenue, New York City. They met in Central Park, when Harry was walking his dog. They now meet for an hour every Saturday morning in Elizabeth's apartment.

As their respective stories evolve over the course of 52 meetings the complex concept of integrity emerges and develops as the core element of successful leadership practice.

At the end of the book an Index allows the reader to search out examples and lessons from the text without disturbing the narrative flow. Each chapter is also connected to a series of key texts that enables the curious leader to follow up the topic in more depth.

WEEK 1

Carry Your Leadership Lightly

I have a great friend called Harry who moved to the US over thirty-five years ago, and who is now the CEO of a global financial software company. Harry and I often correspond and speak about leadership issues in between snippets about our families.

Earlier this year he told me how he had encountered one of the most extraordinary women he’d ever met. Now that came as something of a shock to me as Harry has been happily married to Ruby for thirty years and has four grown up children.

However, Elizabeth is in her early seventies, having been a New York fund manager since the 1960’s and their 'relationship' is purely professional. Harry had met Elizabeth sitting on a bench in Central Park catching a moment to sit in the sun with his dog. They got talking about the weather and his dog, before eventually moving on to what Harry did. According to Harry she didn’t ask any questions but over 30 minutes he’d told her almost everything about his business, his family and the challenges he faces as a CEO.

During the course of the conversation he mentioned me and my interest in Wise Leadership. This seemed to fire her imagination and she explained that she had placed ‘wise leadership’ at the heart of every investment decision she’d ever made during her career. Harry still isn’t sure how it happened, but he agreed to meet her again to talk about wise leadership and his business.

That was six months ago and in that time Harry and Elizabeth have met each other every week at her apartment on 5th Avenue. Harry drops in on a Saturday morning with Jess, his faithful Border Collie. They have tea together and, according to him, he does most of the talking. Yet whenever he recounts a conversation he seems to have come away with an incredible amount in just an hour. So much so that he feels he’s changing as a leader himself in ways he would never have thought possible.

I’ve been tracking their meetings from afar and Harry asked Elizabeth if she would have any objections if I were to write about their exchanges. Elizabeth said that wouldn't be a problem, as long as she and Harry were able to choose their own ‘stage

So, to their first conversation. Harry had been welcomed at the door by the Doorman who had been expecting him – it seems to be a characteristic of Elizabeth that even the smallest details are always covered.

He went up in the direct elevator that opened out into a huge apartment tastefully decorated, with windows overlooking Central Park. Elizabeth had lived there with her late husband, who had been a cardiologist at one of New York’s hospitals, since the late 1980s.

Every meeting starts the same way with Elizabeth bringing a bowl of water for Jess, before she brings through a tray with the teapot and china cups and pours the Earl Grey, without milk, for both of them.

“How do you feel about people who don’t respect you”, she asked.

Harry was a bit taken aback by the question but responded that he was confident enough about himself that he didn’t need people to show him respect.

Elizabeth said nothing and thought a bit more before she said:

“How do you feel if a customer seems to unfairly criticise your business?”

“Now that does make me a bit angry” said Harry.

“Why does it make you feel angry?” said Elizabeth.

“Well, we spend so much time focusing on getting things right for customers that for someone to unfairly criticise us is not something that I can tolerate” said Harry with some exasperation.

“So tell me how you deal with customers like that – and don’t be afraid to choose a situation from earlier in your career” said Elizabeth.

Harry mentally skipped through his career before settling on something that had obviously upset him at the time.

“I was a relatively new vice-president in the business and I had a great team of people working for me. We’d spent a huge amount of time of customer service training, connecting our behaviour with our values and always thinking about how we can put the customer’s needs first, last and always.

Yet we had this one client who never seemed happy with anything we did. The client side manager would always pick up members of my team for small details that he claimed they’d got wrong. He questioned their professionalism and ultimately my own ability as a manager.

Despite everything we did for him he would always focus on what wasn’t right – even if we thought it was. Eventually he wrote to our CEO complaining about me and my team and saying that he felt obliged to complain about our levels of service.”

“I think I get the picture,” said Elizabeth.

“Now tell me exactly how you felt about that person at that time” she said.

“To be honest I felt angry and if it hadn’t been a work situation I would have told him so in no uncertain manner” asserted Harry.

“And do you think he picked up on how you felt? said Elizabeth.

“I’m sure he did, but by then it didn’t really bother me,” said Harry.

“So what was the outcome of all this? asked Elizabeth.

“Well despite everything we did for him he eventually shifted suppliers and we lost the contract – not that it bothered us given the amount of time and effort it was taking to keep him happy.” said Harry.

“And were you keeping him happy” queried Elizabeth.

“Well I don’t suppose we were – but we reckoned that he was never going to be happy with us as he had another supplier that he’d known from his days at University and was looking for an excuse to drop us.” said Harry

“So you gave him his excuse,” said Elizabeth quietly.

“No as I said – nothing we were doing was going to change his opinion,” said Harry.

“And what did losing that account mean for your annual profitability? asked Elizabeth.

“Probably between 3 and 5% so not that much really."

“Do you mind if I play back what I’ve heard? asked Elizabeth.

Harry nodded.

“It appears to me that you invested something of yourself in terms of interpreting the actions of the client.” she said

“What do you mean?” asked Harry

“I mean you let your own sense of self esteem prevent you from truly listening to the person – despite the fact that they might have had legitimate concerns.” said Elizabeth

“But they weren’t legitimate” said Harry

"No – you fell into the trap that too many leaders fall into – you treated the client the same way as you would have treated them if you met them outside work.

In such circumstances it’s legitimate to categorise people as ‘liked’ or ‘disliked’ it’s how we go about gathering friends throughout our lives.” said Elizabeth.

"But you took that into the world of work. You disliked this person – and you let it show in your behaviour,” said Elizabeth

“Native Americans have a saying that the wise leader carries their wisdom lightly.

What they mean by that is that a wise leader doesn’t allow any sense of self-importance to interfere with their judgement.

Regardless of how often members of their tribe might tell them how wise they are.” she pointed out, as she refilled their china cups, carefully straining the tea with a delicate silver strainer.

“What I heard from you was that you automatically took the side of your team against the needs of the client. You took the client’s criticism of your service to be a criticism of yourself. And finally, you assumed that it was the client that needed to change his behaviour, rather than yourself. Ultimately the only thing we ever have control over is our own behaviour,” said Elizabeth, before taking a small sip of her tea and looking out over the green space of Central Park.

Harry leaned forward and was about to speak when Elizabeth continued,

“When I was a young fund manager I met a CEO who had a framed proverb on his wall:

The leader with wisdom Does not insist upon his wisdom, For that reason he has wisdom; The leader without wisdom Never loses sight of his wisdom; For this reason he lacks wisdom.

Elizabeth slowly recited the proverb gently reinforcing the word wisdom in each line.

“He told me he had been given the saying by his first mentor who had modified the original saying from the ancient 6th century

Chinese philosopher Laozi, where the word ‘integrity’ had been replaced with the word ‘wisdom’.

The CEO said that in some of his toughest challenges he would stand in front of the proverb and remind himself not to get carried away with his own abilities, knowledge, experience or status. I can vouch for his wisdom and the impact that this had upon his businesses’ success.”

“I think I’ve got it,” said Harry.

"You mean that the more I try to say that my principles, my behaviour and my standards are beyond criticism – the weaker I actually am?” said Harry incredulously

“Not weaker but certainly not in control of your own behaviour” corrected Elizabeth.

“In my experience great leaders are the ones who can stand outside themselves when it comes to working with others and escape from any idea of their own importance.” she concluded and stood up indicating the end of their meeting.

“Is there anything I can read about this before we next meet?” asked Harry

"Not really but I’d like you to think about that what advice you would have offered your younger self in the position that you found yourself – and start from the basis of carrying your wisdom lightly.” she said as the elevator door gently closed leaving Harry alone to ponder the question on his way down to the ground floor.

WEEK 2

Escaping from your own importance

Harry had been looking forward to his next session with Elizabeth since his last visit to her apartment. Harry’s own week had been another high-pressure headlong rush from one crisis to the next with challenges coming from every direction. The thought of having a tranquil hour with Elizabeth talking about something other than the pandemonium of his last seven days filled him with a surprising amount of pleasure.

It was Harry’s favourite kind of spring morning in New York and he and Jess left home thirty minutes earlier than required to get to Elizabeth’s. He loved to walk a few more blocks to enjoy that magic moment when the flat morning sun aligns with the Manhattan streets.

Arriving outside Elizabeth’s apartment he was welcomed by the Doorman who remembered him from his last visit and took him up to her floor.

Elizabeth welcomed him with a kiss on both cheeks. According to Harry, Elizabeth has a style all of her own. Having worked earlier in her career in Paris and London she carries off the easy chic of French fashion with an eye for English classic tailoring. Elegantly tall she carries herself with real poise without any air of superiority. Her steel grey hair is stylishly pulled back into a loose chignon (according to Harry’s wife) and she wore tailored trousers and a cashmere sweater with a single diamond at her neck. Harry felt immediately at ease and took a seat in the living room while Elizabeth fetched a bowl of water for Jess.

“So did you work out what you would say to your younger self?” she asked.

“Well, despite being so busy over the last couple of weeks the question has been constantly turning over in my mind ever since we met. And in a peculiar way it’s helped me to maintain my sanity” Harry admitted.

“And your insight?” she enquired

“Well funnily enough my advice isn’t just for my younger self but is probably just as relevant for me today as it was all those years ago. I started off by thinking about the proverb you gave me and it got inside my head to the extent that I’ve printed out a copy and put it up in my office at home. I liked the idea of your CEO friend using it as a reminder to himself about his own fallibility. I’d never thought about the idea of challenging my own competence but I think I understand the paradox why someone who claims to be wise cannot ever actually be wise. It’s a game changer – and goes as much for me as a leader.” said Harry as if he was getting a weight off his chest.”

“Go on,” prompted Elizabeth

“It’s funny that for most of my career I’ve spent so much time and effort trying to persuade myself about my competence and abilities, probably to the extent that I’ve been unwilling to accept any evidence that might run counter to that view of myself.” said Harry.

“Is that a bad thing?” said Elizabeth

“It’s a fine line. People are always watching me as a leader for signs of self-doubt or weakness. It’s quite a shift to begin to reveal to my colleagues that I’m not as confident as I make out,” said Harry

“You seem to be equating self-doubt with self-importance? Do you see these to be the same?

“No I don’t, but I suppose squeezing out your self-doubt can lead to an inflation of your own self-importance. I’ve never really thought about it before?” said Harry, perplexed by his own uncertainty.

“Let’s stop there while I get our tea. While I’m doing that ask yourself if you ever had an ambition to be ‘wise’ when you were an aspiring executive.” said Elizabeth

As Elizabeth went through to the kitchen Harry got up and wandered over to the window. He looked out on the trees in Central Park bursting with the bright green intensity of early spring.

He wondered to himself if he had ever thought about becoming wise. He had certainly wanted to succeed in business. He’d done his obligatory MBA, which he had actually enjoyed and gradually progressed through the ranks towards his current position of CEO. If he was honest with himself it had probably always been a target of his. But had he ever had an ambition to be wise? – probably not, he concluded just as Elizabeth came back into the room with their tea.

“It’s a beautiful view. I never tire of it. Tony, my husband, used to sit for hours, just staring out on the Park with the skyline in the background. He called it our back garden,” she said as she put down the Porcelain pot and carefully poured their tea.

“Do you mind if I ask what happened to your husband?” asked Harry.

“Tony was an amazing man. I learned so much about life from him. We met in Paris when he was doing a postgraduate qualification in Cardiology. He’d been born in Hong Kong and his family moved to New York just after the war. We moved back here when he got a job at the New York Presbyterian Hospital where he worked for the rest of his life. It was the ultimate irony that he died of a heart attack visiting a former patient out in New Jersey,” said Elizabeth

“You know the worst thing about that Sunday was that it was one of the only days Tony ever left the apartment without giving me a kiss. I was under the table trying to change a fuse on a plug and he said he was only going out to see a patient, who had become a friend – as they all did – and would be back before lunch. I got a call just an hour later from the hospital to be told that he’d had a massive coronary.”

“I’m so sorry,” said Harry

“Anyway” said Elizabeth, gathering herself.

“I bet I can guess the answer to my question about your ambition to be wise.”

“Go on” said Harry, happy to change the subject.

“I reckon you’ve never thought about becoming wise. You’ve never set it alongside ambitions such as salary, promotion or eventually becoming a CEO” she said looking straight at him.

“Never explicitly” Harry admitted

“So tell me, who was the best leader you’ve ever worked for in your career?” asked Elizabeth

“That’s a bit easier. It was Jacob Irvine, who was the CEO when I first joined the IT industry.” said Harry

“Now describe him using only three adjectives,” said Elizabeth

"Ok- caring and enabling would be two,” he said quickly before pausing and giving it some thought.

“And I suppose the word that comes to me now – although it might be because you’ve planted it is ‘wise’,” said Harry, finishing with a wide smile.

“Perhaps I did, but it’s remarkable how often people use the word ‘wise’ to describe the best leaders they’ve encountered during their career.” noted Elizabeth.

“It’s always fascinated me that it’s a quality that we regard so highly in others yet one which you will rarely hear someone suggest is their ambition,” said Elizabeth

“Aha,” said Harry, as if pleased with himself to have seen a flaw in Elizabeth's logic.

“But I thought the proverb said that as soon as someone thinks they are wise then they can no longer be wise?” said Harry gently challenging Elizabeth

“That’s correct,” said Elizabeth

“But true leaders can only ever aspire to be wise – it’s not for them to say they have reached a state of ‘wisdom’ but for others to ascribe it to them” she suggested to Harry

“Let me give you an example” she said

“Back in the late 70s Tony and I spent some time in London where he had a year working at Guy’s Hospital. During our stay there we met Sir Colin Davis who was, at that time, the principal guest conductor of the London Symphony Orchestra. Colin was perhaps one of the wisest chief executives I’ve ever met.”

“But he wasn’t a chief executive, was he?” asked harry

“I always thinks that’s a strange thing, that we only think of people as being CEOs if they actually have the name attached to their role – whereas I like to think of CEOs as people who lead, inspire and sustain people and organisations – regardless of their job title” said Elizabeth continuing with her story.

“Colin went through a personal transformation in his 30s when he decided to shift from being, in his own words, an obnoxious, angry and self-interested tyrant to be someone who set out to behave in a manner that put other people first. As a consequence he came to worldwide renown for his musical interpretation and leadership capability.”

“I remember him saying to me, “I reached the age of 35 and I just didn’t like anything about myself at all. He said to himself “This won’t do at all” Elizabeth recalled.

She continued,

“And so, with that goal in mind, he turned his back on the image of the conductor as the tyrannical, imperious, controlling authoritarian,” said Elizabeth

“But if he was so successful why did he feel the need to change” asked Harry – captivated by the story which chimed so closely to his own journey.

“What Colin realised was that for all he was a great musician, he didn’t, in his own words, “know how to handle the material”, which for him was first and foremost the human beings in front of him, and secondly the music.” said Elizabeth

“Its been a recurring theme throughout my career meeting chief executives that so many of them reverse that order of importance where the goal of the organisation (the widgets, the money, the outcomes), or whatever else they might be, takes precedence, and only think about the people thereafter.”

“What Colin had come to appreciate was that people don’t function very well under tyranny; yet, paradoxically he understood a deep tendency for people to admire such behaviour.”

Harry nodded his head, transfixed by the story that seemed to mirror his own experience.

Elizabeth went on,

“He called the need for people to admire the authoritarian conductor a 'Jehovah complex' – the people who want an overlord are really the underdogs and they want to think that the man in

“I think it’s this picture of this superhuman, infallible leader that is such a powerful and destructive image for so many people – and so it requires incredible courage for a leader to consciously decide to dispense with the comfort of authoritarian self-important power.”

She went on, lost in her memories,

“One Sunday afternoon Tony and I visited Colin and his beautiful wife Shamsi for lunch in their London home and his wise words still ring out for me,

“A man who sets out to be powerful is finally trapped in his own isolation in the end.”

“Colin set out to free himself so that when he stood up in front of an orchestra he wasn’t “hung up about his position” or “about making a mistake, or about anybody calling me this or that trying to pull myself up into some prodigious mushroom that doesn’t really exist.” said Elizabeth now really warming to her recollection.

“Colin looked at leadership as sharing. He realised that he didn’t need authority that is imposed upon people, because they wanted to play well anyway. He wanted them to feel so at home and relaxed that they can give everything they’ve got because that’s why they became musicians and they didn’t need to be hit over the head with a sledgehammer.” she concluded, before adding,

“I often used to quote Colin to CEOs who complained about their people, for he used to say:

“There is a little bit of gold in everyone sitting in front of me and it’s my job to dig it out.”

“I’ve always wished more leaders could see that such behaviour is far more productive than seeking out the flaws,“ said Elizabeth

“But doesn’t that undermine a leader’s authority?” asked Harry

“Colin was able to use the recognition of his own flaws or deficiencies as a real leadership asset – as opposed to a weakness – which is what most leaders do,” said Elizabeth

“But how did he manage to make such a dramatic change to his behaviour?” enquired Harry.

“Now that really is the captivating part about all of this. For I remember him saying to Tony and I:

“When I came to the conclusion that I had to change my life I dragged my wife back to where I‘d been a child because I wanted to find the child that I was – as Goethe would say – I’ve won back my childhood.” as she recounted his words verbatim.

"The final thing that always stuck with me was the motivation he took from the idea of his own death which enabled him to undergo such a profound change. Yet Colin didn’t say it that way but in his typical mischievous manner" and then she slowly repeated his words:

“From the moment you are born there’s also born a worm who sets out to meet you – and sometimes you see him waving from the distance.”

Elizabeth and Harry laughed at this idea and then both of them sat in silence for while as Elizabeth gently stroked Jess’s head that lay faithfully on her lap.

Eventually Harry said that it was time for him get going as he and Ruby were scheduled to meet one of their sons for lunch.

They both got up and went towards the door. Just as he was about to enter the elevator Elizabeth took him by the elbow and asked:

“Did you enjoy that story?”

Harry paused and then said in reply,

“I think that was possibly one of the most important lessons in leadership I’ve ever heard. I need to reflect upon myself in the same way as your friend – especially now I can see that worm waving at me!”

“We can talk about your reflections when we next meet.” said Elizabeth

The elevator doors soundlessly slid shut between them leaving Harry on his own.

"That can't come soon enough" - he thought to himself.

WEEK 3

Beautiful Mistakes

“How has your week been?” asked Elizabeth as she emerged from the kitchen carrying the tray with their tea.

“Certainly better than the previous one” said Harry, before adding,

“Our share price stabilised on the back of some better news about a major new client announcement”

“I read about that, but were you aware about that when the quarterly figures were released” she said

“We were, but it hadn’t been signed off. So we couldn’t say anything about it. I just had to take the flak on behalf of the company,” he said

“How did that make you feel?” She asked

“I learned a long time ago that it’s one of the key roles of a CEO to protect the team in times of hardship” he said

“I’m interested to know when you first became explicitly aware of that? That’s not a common a feature of too many chief executives in my experience”

“I suppose it goes back to my early days when I had just joined a software company that was expanding out of California. They'd just set up an East Coast office outside Baltimore and I was a young programmer”

“What happened?” said Elizabeth

“I fouled up the code on a client’s contract. We’d been under pressure to complete and I’d had to pull a couple of consecutive ‘all-nighters’ along with the rest of the team.”

“Anyway all had seemed fine until a few weeks later when the entire client system had crashed and the fault was traced back to a small piece of new code that I’d had come up with to solve a problem.” explained Harry

“The client went airborne and demanded the identification and removal of the person responsible for the failure from the team that were still working on their system” he said

“That must have been a frightening experience for you,” she said

“It was, especially since Ruby and I had just bought our first apartment.”

“So what did your manager do?” she queried

“My direct line manager did nothing. Nor did the manager above him, or the manager above her. No - it was the CEO of the company who personally flew out from San Francisco to see the CEO of the client,” said Harry, becoming more animated as he told the story.

Elizabeth said nothing and simply waited for him to continue.

“I didn’t even think our CEO knew who I was but apparently he made a big play about my competence, my attitude to work, and my importance to the business. He then asserted that he - as CEO

- was personally responsible for the failure and that if the client was determined to take action then they should sack the company”

Harry went onto explain that the client was so impressed by our CEO's behaviour that he actually extended our contract with them. However, when Harry’s CEO had come back to the office he’d asked to meet Harry on a one-to-one the next day.

“I can tell you I’ve never been so scared in my life” he admitted to Elizabeth

“I can imagine,” she said, refilling their cups with tea.

“So the next day he met me up in the Boardroom of our office. As I entered the room he got up out of his chair and welcomed me like a long lost friend.

He knew everything about me. My Scottish upbringing, my education, my move to Silicon Valley and my career history - he even knew my father had been an engineer and my mother a teacher,” Harry almost gasped as if the meeting had only just taken place.

He then explained that he had huge faith in me and knew I wouldn’t make the same mistake again. Then he took out a piece of paper from his wallet and started to read it. It was a poem entitled ‘Beautiful Mistakes’ by Douglas Gibson.

“Do you still have it? Asked Elizabeth

“I have it here now in my own wallet and never go anywhere without it”

“Would you read it to me?”

“I don’t need to read it. It’s burned onto the hard drive of my memory” and he started to slowly recite the poem:

BEAUTIFUL MISTAKES We made a mistake A beautiful mistake A simple inadvertence Which confirmed Our humanity Yet what a liberation To revel in our imperfection Let us shout it out aloud “We tried and failed” But together we learned And with such confidence We renew our vows To change our world With smiles upon our faces And our hearts Upon our sleeves

“That’s beautiful,” said Elizabeth without any sense of irony

“If we’re talking about lessons that’s one that has probably had more influence on me than any other experience in my life” said Harry, and then continued

“I’ve tried to live up to that example ever since. It’s my job to protect my people. Make sure we appoint great people. Trust our great people to do the best that they can do. And in times of stress - when mistakes will happen - bare my back and take the blows

Don Ledingham. Ceannas: Leadership by Design © 2019 27 Harry and Elizabeth: A Leadership Conversation on their behalf. Safe in the knowledge that they will have learned from the experience and won’t make that mistake again.”

“You see,” said Harry warming to his theme

“In our industry if people are scared to stretch beyond what is known and scared to make mistakes, then we’ll be overtaken by the next new kid on the block. It’s my job to create that headroom for experimentation, failure and eventual progress,” he proclaimed

Elizabeth thought to herself about whether or not such behaviour might create an over protective environment but thought better of it. She’d learned a long time ago that some questions are best left unsaid and filed away for a future conversation.

Elizabeth and Harry continued to talk about the incident and the poem but it was obvious to Elizabeth she had just been privileged to have heard such a profound and influential story.

Later that day long after Harry had gone, Elizabeth took out a piece of paper from her antique French writing desk and using a Royal blue Meisterstück fountain pen, that she had been given on her retirement, wrote out Harry’s poem in a copperplate script – relying only upon her remarkable gift of recall that had not diminished with age.

She read the poem again to herself before folding it carefully and placing it inside the drawer, mindful that one day she might need to remind Harry of its existence.

WEEK 4

The 100-year Leadership Horizon

“What will your company to look like in one hundred years time?” asked Elizabeth, her question rocking Harry firmly back on his heels.

Harry was used to dealing in quarterly reports, annual plans and three-year strategies. The idea of taking a hundred year perspective was something that had never even occurred to him.

“Sorry Elizabeth. You’ve lost me. I don’t think I could tell you what my company would look like in five years - never mind one hundred,” said Harry

“The exponential pace of change in technology, society and the environment makes it impossible to predict much beyond ten years at the outside – and even that might be too long.” he continued

“Is your father still alive?” she asked. Harry was learning that Elizabeth had a tendency to ask tangential questions, only for them to make eventually make sense.

“No he died last year aged 80” said Harry

“I’m sorry to hear that. So he was born in 1937?

“That’s right,” said Harry

“And when was his father, your grandfather, born?” she asked quietly

“Let me think – it would have been 1916” he said

“So 101 years ago your grandfather was born,” she said

“Does that seem like a long time ago to you?” she asked

“In many ways it does, when I look at technological advancements, two world wars and the coming of the digital age” said Harry

‘Now think about it this way. Has your life seemed to have passed quickly over the last thirty years?” she looked at him intently as she asked the question

“Oh, Elizabeth, all too quickly. It seems no time at all since I was a student without a care in the world. And the older I get the quicker time seems to pass” he said

“Now think thirty years forwards - does that seem like a long time?”

“Thirty years from now would mean that my kids will be in their fifties and I’ll be coming up 90 – if I’m spared” he added

“Yes, I’d have to say that it does seem like a long time away. Although experience tells me that it will pass all too quickly.” he said

“Now stay in that frame of mind and answer the question again – what will your company look like in 100 years’ time?” she asked.

“Mmm” said Harry, thinking to himself

“But we just don’t measure company survival in terms of human generations”

“Do you know that there are ten companies in Japan that are over one thousand years old.” she said

“But our business lives in the world of IT – where most companies rarely survive more than ten years” said Harry

“So that’s your horizon is it? Ten years?” she concluded

Harry was beginning to wish he hadn’t introduced the topic of succession planning when he’d first come into her apartment that morning.

“It’s not my horizon. It’s the horizon of our industry - and of the markets,” he said – keeping himself in check

“So it’s other people who are preventing you from taking a 100 year point of view?” she continued

“OK, OK you win!” he said – holding his arms aloft in mock surrender.

He took a moment to gather himself and then started on a description that took him by surprise.

“In 100 years our business will still be at the leading edge of supporting customer relationships, using the latest technology and creating a conversation between companies and their clients.” he said

“Go on” said Elizabeth

“Our company will be a global player and a trusted name due to our long term commitment to providing a reliable, unobtrusive and useful service. Our competitors, who relied upon aggressive sales strategies will have long run out of steam, and trust,” he paused, then added,

"We will have gradually acquired other companies where they add value to our business but always remembering that we don't grow for growth's sake," the words began to flow as he warmed to his theme.

“Our employees will love working for our company and feel connected to our heritage by understanding their place in our history and the legacy that they has been passed on to them by their company forebears.” he said

“Our shareholders will understand that we avoid over-leveraging ourselves with debt and that we have turned down buy out attempts - in order to retain our independence to reinvest our profits in research and development and sustain our place in the industry.” said Harry

“And, above all, leaders in the business will feel a deep personal obligation and commitment to continuously uphold and promote the values that represent the company”.

“Is that enough for now?” Harry asked leaning back in his seat and taking a drink of his tea.

Elizabeth smiled, “I think that will do very well”

“I found it interesting that you shifted the focus from short-term profitability to longer term sustainability simply through shifting your time horizon” she observed

“When I was a fund manager I spent a great deal of career visiting businesses in Asia. It wasn’t unusual to speak to chief executives of large businesses who were genuinely thinking towards a one hundred year horizon” she paused and walked over to the window, before motioning Harry to join her.

Looking down on Central Park she observed,

“That piece of land down there has a real estate value of over £600 billion dollars. Yet some people decided, over one hundred and fifty years ago, that it should be preserved for future generations to enjoy in the future”

“Not one of bit of that landscape is natural. The ponds, the meadows, the streams and trees are all entirely landscaped as set out in 1858.” she said to Harry never taking her eye off the view.

“There’s a London Plane tree down there beside the reservoir that was planted in 1862 during the American Civil War.” she said, continuing to stare down at the Park.

“The person who was responsible for the planting of that tree wasn’t thinking three years, or ten years but a hundred years forwards and beyond,” she said

Turning back towards Harry she said,

“I’d like you to go home and imagine that your great-grand daughter, who is yet to be born, will be running your company in 2117. What would you need to change about how you are currently operating the business to allow that to happen?”

“But what if I really don’t think our company will be here in one hundred years time – isn’t this exercise just a waste of time.” Harry asked

“Think of it this way. Even if your business sells out in ten years, or goes under in twenty – the benefits of thinking about how you would enable your company to thrive and survive for one hundred years will prove valuable, if even one of those ideas comes to fruition,” she said

She smiled at Harry, enjoying the perplexed look on his face.

“When we meet again next week I’ll share a story about an amazing company in India that I first encountered over forty years ago, who have an annual revenue of over $4 billion a year and have been going for over 120 years.” and with that she wished him farewell with her customary kiss on both his cheeks.

WEEK 5

Leadership as Stewardship

When Harry arrived outside Elizabeth’s apartment that morning he was surprised to see her standing outside. She was wearing a classic trench coat with the collar turned up against the wind and a vivid silk scarf wrapped around her neck. Her black trousers were tucked into high suede boots and the whole ensemble topped off with a felt fedora pulled down over one eye.

“I’m sorry,” she shouted above the traffic noise, before she bent down and slipped Jess a dog biscuit.

“I forgot to tell you that I’m having a new floor laid in our kitchen,” she said to Harry before linking her arm in his and directing him down Fifth Avenue.

“You can buy me breakfast,” she laughed

“My pleasure” said Harry

“So have you been able to give any thought to what we were talking about last week?” she asked

“To be honest I’ve been flat out – but when I have tried to think about it I can’t get beyond the immediate challenges we’re facing right here and now” Harry admitted with some reluctance

“So you think the one hundred year horizon isn’t for you?” she queried him

“It’s not that it isn’t for me, it’s just that I don’t think business works that way any more?” he paused as they waited to cross the street.

“I’ve spoken to a few colleagues about the idea of a one hundred year horizon and I’m sorry to say that no one seemed to take it seriously,” he said, trying not to upset Elizabeth.

She didn’t seem phased at all by Harry’s revelation and then she observed,

“Over the last thirty years people’s business horizons have become more and more foreshortened. At the end of my career when meeting company managements, I think sub-consciously I increasingly divided people I met into those who lived and dreamt their organisations, and those who cared very little about them.”

“Do you think it’s necessary for people to care about the long term future of their organisations for it to be a success? Harry ventured one of his few questions to date

“Talking to people involved with start-ups these days, it does seem always to revolve around exit strategies rather than building up something that will be around in a hundred years time.” she said

“But if you look at the price these start ups are selling for can you blame them?” he asked - two questions in one morning – he was getting brave he thought to himself.

“I understand the temptation to come up with an idea, develop it, and then look to capitalise upon the intellectual property before it runs out of steam or competition enters the market.” she said, before responding with her own question.

“When you married Ruby did you have an exit strategy in mind before the wedding?”

“Well, obviously I saw it as being a long term commitment” Harry answered, puzzled, yet knowing that she was probably setting him up in her own inimitable fashion.

“But I don’t see what that’s got to do with long-term horizon businesses.” said Harry

“Think of it this way. When you met Ruby and you shared dreams of family, happiness and a long life together. That dream shaped how you behaved. It shaped your future and probably got you through difficult times – because you were looking beyond the immediate situation.” she said

“There will always be a place for those who establish businesses with a view to the very short term. In some way they like the buzz and excitement of a new challenge. They love the allure of the new. But they get bored quickly. They need to move on from one challenge to the next. In much the same way as some people need to move from one relationship to another.” she concluded just as they arrived outside Le Pain Quotidien on East 53rd.

They took an outside table and Jess tucked herself in under Elizabeth’s feet. Harry went inside and returned a few minutes later with an apple turnover and an Earl Grey tea for Elizabeth, and a skinny latte for himself.

As Harry took his seat Elizabeth continued their conversation as there hadn't been a pause,

“One of the great things about advancing age is that you begin to see patterns, trends and cycles that keep repeating themselves.”

“So this is just a cycle?” asked Harry

“Probably not a cycle. There will always be those who start from their exit strategy and build from there. But I think the market – and society – will begin to tire of the ephemeral nature of many businesses, who shine brightly for a short time only to burn out and leave nothing behind” she mused

“You were going to tell me something about an Indian company,” Harry said, moving the conversation on (or so he thought)

“Yes, I was, and I’m glad you reminded me,” she said, although Harry suspected she was in total control of the conversation.

The waiter arrived with their order, and Elizabeth took a bite of her pastry.

“Delicious” she exclaimed

“When I was a young fund manager my first manager used to keep repeating a quotation from William Wordsworth”

“Let us learn from the past to profit from the present, and from the present to live better in the future,” she recalled

“He drummed it into me day after day not to get lost in the bubble of the present.” she said, taking a sip of her tea and nodding approvingly.

“Have you ever heard of the Godrej Group?” she asked Harry

“No I can’t say I have,” said Harry

“If I told you it serves over 1.1 billion customers and has an annual revenue of $4.1 billion would you be surprised?” she asked Harry

“Wow – these are some numbers!” he said and whistled through his teeth.

“It was established in 1897 and the Godrej family trust donates 25% of dividends from the group to philanthropic activities.”

“I had the privilege of meeting the chairman Adi Godrej on a number of occasions during my career and his mantra was that businesses can only develop when they align with society.” she said, and then continued

“So here he is in 2017 and his belief in sharing wealth with the people of India is as strong as it was for his grandfather and founder of the company Ardeshir Godrej.”

“But that’s a family business – other businesses can’t operate the same way - they have to meet the needs of shareholders.” said Harry

“Let’s look at it another way. I come from Idaho where my family has farmed for nearly 80 years. In fact my nephew still owns the family farm,” she explained to Harry, who blinked as he absorbed such a throwaway revelation.

“Each generation has developed and improved the farm but the common characteristic has been the idea of stewardship.” she said watching for Harry’s response.

"I don’t think I’ve heard that word before,” admitted Harry.

“Stewardship is actually an ethical and sustainable way of behaving that’s been around long before such language became the norm,” she explained to Harry.

“Although my father, and my brother, and now my nephew all owned and worked the farm, they knew – and know - that they were only guardians of the land for the next generation. With an obligation to leave it in a better state than when they found it,” she went on

“If I’m understanding you correctly,” said Harry

“In my role as CEO I should be the steward for the future of the business?” proffered Harry

“By Jove, I think he’s got it!” said Elizabeth, in a good-natured take off of the famous line from the My Fair Lady musical.

“I suppose if a company like Godridge” he said, before being interrupted by Elizabeth.

“Godrej – G – o – d – r – e – j,” she corrected”

“If Godrej – with a revenue of $4 billion - can do it for 127 years then you’re asking what’s preventing my company from adopting a similar outlook?” asked Harry

“And I think I know the answer – but that can wait until next week.” she said, finishing the last of her tea before standing up and saying to Harry that she was happy to find her own way home as she had some errands to runs.

And before he knew it she had kissed his cheeks and set off towards Fifth Avenue at a pace that belied her years.

Harry watched her disappear into the crowd and realised that this relationship was changing him in a way he might never have suspected when they first bumped into each other in Central Park five short weeks ago.

WEEK 6

Leadership Legacy and Succession

As Harry made his way up in the elevator to Elizabeth’s apartment he couldn’t help but think about the contrast between the cultured woman he had come to know and that young farm girl from Idaho.

These thoughts quickly disappeared as she welcomed him into her home with her customary Gallic embrace.

She spent a great deal of time welcoming Jess and there was no doubt that the intelligent dog had won yet another admirer.

“I’ve been meaning to ask you for some time but why did you choose a Border Collie? They are quite an unusual breed of dog for New York,” said Elizabeth stroking her hand down the full length of Jess’s black back.

“When I was a youngster we used to go on holiday to the West Coast of Scotland to stay in an old cottage by the sea. The neighbouring crofter had a collie and I used to stand for hours and watch him work the dog on his sheep” said Harry as he fondly recalled those childhood memories.

“Isn’t it funny how childhood memories can influence the choices we make forty or fifty years later” Elizabeth observed, before heading off for the kitchen to fetch their tea.

A few minutes later she entered with the bowl of water for Jess before returning with a tray carrying their Earl Grey tea. As ever she turned the pouring of the tea into a slow motion ceremony. Harry had come to enjoy this extended process, in direct contrast to his own natural impatience and sense of urgency. He’d also grown to appreciate the flavour which he pitched somewhere between an orange and a lemon with a little grapefruit lurking in the background.

“So last week you said that your nephew had inherited your family farm” said Harry, almost tentatively.

“I did and I also noticed your reaction - were you surprised?” she asked

“I probably was” admitted Harry

“I’ve spent some time this week wondering how a farm girl ends up in Fifth Avenue,” he said

“Very simple really - I was a girl and not a boy. Had I been a boy then the expectation and pressure to take on the farm would have closed down any other options.” said Elizabeth without any note of resentment. And then went on,

“As it was I loved working on the farm but despite being the eldest child I was freed from the burden of succession.”

“But didn’t you feel that you were treated unfairly?” asked Harry

“It’s the way farms worked back then — and still do in many cases. There is also a self fulfilling expectation, which can limit a boy’s choices - channeling him into farming. I was lucky in that there were no such limiting expectations for me,” said Elizabeth and then continued after a short pause,

“My nephew was aware of the legacy he was inheriting from an early age” said Elizabeth

“Are you suggesting that legacy is a bad thing?” said Harry, seeking clarification from Elizabeth

“Not at all - but I do think that in leadership parlance we use the word legacy to suggest something negative.” said Elizabeth.

“Surely not” responded Harry, perhaps a bit more forcefully than he had intended.

“Well, think of the number of times we refer to having to overcome the ‘legacy of the past’” she said emphasising the last three words, and then went on,

“Over my career I saw so many successful businesses ruined by new leaders who came in with the express intention of wiping out any vestiges of the previous regime, regardless of how valuable they might have been” she said.

“But surely that’s the job of a new leader. To renew and transform,” said Harry

Elizabeth held back a stifled laugh,

“I was there in the late seventies when ‘transformational leadership’ was all the rage” she said, and continued,

“It started off as a well intentioned concept – relating to higher moral ideals and standards, but too many leaders saw it an excuse to destroy any trace of their predecessor’s legacy, irrespective of how successful some of that might have been”.

“I do know what you mean” said Harry, “but I suppose even I played that game earlier in my career”

“It was the expectation placed on you by senior execs, or boards – they wanted new things and it was your job to give them what they wanted.” he said

“Update the vision statement, mission statement, the values and then reorganise the company. And if that doesn’t work reorganise again,” said Elizabeth with more than a hint of exasperation.

“But it takes a brave – or perhaps even foolish leader - to disregard those expectations, doesn’t it” asked Harry

“Let’s go back to my nephew,” said Elizabeth

“He has inherited a farm and he has inherited a legacy.” she said, and went on,

“But that doesn’t mean that he has to do things exactly the same way as his uncle did, or his grandfather did. No, he shifts, he nudges and on occasions take things in a completely different direction but he does it in a way that is full cognisant of his obligation to the past.” she said

“I’m sorry, but you’ve lost me there. How can your nephew do something completely different from his forebears, yet still be respectful to his inherited legacy?” said Harry, really trying to absorb what Elizabeth had being saying.

“Do you remember what I was saying last week about stewardship?” asked Elizabeth

‘Yes” said Harry, “It’s been playing on my mind all week”

“Well stewardship is a recognition of a person’s obligation to the past, but also a recognition of their same obligation to those who will inherit their legacy in the future,” Elizabeth spoke slowly to emphasise her point

“A wise leader takes all those good things they have inherited from their predecessor, but on occasions they might have to drop everything if those obligations meant that the entire company,

Don Ledingham. Ceannas: Leadership by Design © 2019 46 Harry and Elizabeth: A Leadership Conversation organisation or farm, for that matter, would fail.” she said, and continued after a short pause to stroke Jess’s head,

“In other words, obligation to the future takes precedence over obligation to the past, or even the here and now.”

“I think I can see what you’re trying to say but I have to say that I struggle to think beyond the end of the week sometimes – and as long as I keep the Board off my back and shareholders happy then I’ve done my job” said Harry.

“Now Harry,” scolded Elizabeth, and added

“In the short time I’ve got to know you I know that’s not true”.

“Well it sometimes feels like that,” said Harry

“You talked a few weeks back about succession planning?” said Elizabeth

‘This conversation is at the very core of succession planning.” she said, emphatically.

“You were aware about the legacy you inherited from your predecessor. You have built upon that legacy, dropped some things for good reason, added others and now you want to think about the legacy you are going to pass on to your successor.” she said

“Mmm” said Harry, not sure what to say next

“My successor has got nothing to do with me,” he said

“Oh but it does. And perhaps you need to start giving it a lot more thought? Especially if the Board invites you to become Chairman,” she observed with a smile playing on her face.

“That’s supposed to be completely confidential,” said Harry with some surprise

“Harry, you of all people should know that there are no secrets in this city. And besides – people like telling me things” Elizabeth said, before standing up to clear away their tea.

“That woman,” thought Harry to himself as he made his way down in the elevator.

“She gets inside my head?” he said out loud to his reflection in the elevator mirror.

WEEK 7

Letting go of power

Saturday mornings were quickly becoming a time in Harry’s week that he looked forward to, although today was always going to be slightly different.

Elizabeth had called him earlier in the week and had invited Ruby to accompany him on his next visit.

Harry had then asked Ruby if she’d like to meet Elizabeth, and she had surprised him by readily accepting.

Ruby wasn’t the typical executive wife, in that she likes to keep a distance between herself and Harry’s work. That’s not to say she isn’t fully supportive, just that she prefers to maintain her own professional identity as a Vice President in a Real Estate business, as opposed to being known as the ‘chief executive’s wife’.

However, she had become intrigued by the impact this woman was having upon her husband. Without fail Harry would return from his visits to Elizabeth with a full commentary of every detail of their conversation, plus a bit more in terms of his accounts of Elizabeth.

And so, on the allotted hour, they found themselves making their way up in the elevator to Elizabeth’s apartment.

“Bonjour, Ruby” said Elizabeth without any hint of affectation, before gently kissing both her cheeks.

“You didn’t tell me how beautiful she was” she scolded Harry, as she embraced him in the same manner.

“Let’s go through and have our tea – I’ve just set it out,” she said leading the way

“I’m so pleased to meet you,” said Ruby

“You must have been wondering about our Saturday assignations,” said Elizabeth

“I’ve certainly been intrigued” said Ruby, and continued,

“Harry has always absorbed most of what goes on at his work. But recently, perhaps due to your conversations, he’s been talking much more about the job and how be does it,” said Ruby

“But we’ve always talked about the big stuff,” interjected Harry

“We have - I’m just saying that you’re opening up a bit more,” said Ruby

How does she manage that? Harry wondered to himself as Elizabeth seemed to open up a vein without any apparent effort.

“So what do you think of the possibility of Harry moving on to become chairman? said Elizabeth, as if reading Harry’s mind.

“I’m not sure. He says he’d quite like to get away from the day- to-day running of the business but I can’t help but think that it’s that buzz that gets him out of bed in the morning?” said Ruby looking towards Harry as she spoke.

“Do you think he would make a good chairman?” asked Elizabeth

“Again I’m not sure. On two counts - I’ve only really known one chief executive close up - and that’s Harry. And I’ve only seen one chairman up close and that’s Susan, who’s been Chair ever since Harry became chief executive,” said Ruby thoughtfully

“Harry and Susan are very different kinds of people. She doesn’t interfere in the running of the business but from what I can see it’s her that keeps the board in line and represents them in their dealings with Harry and his team. I think they make a great partnership,” Ruby concluded and took a sip of her tea.

Elizabeth said nothing and simply nodded her head.

Leaving a silent space in conversation that Harry felt obliged to fill.

“But I would develop a similar relationship with my successor” he said

“I’m not saying you wouldn’t but after having had your hands on the reins for 12 years, if you include your time as number two, then it will be a jump” said Ruby

“Why a jump?” asked Elizabeth

“Because the business is his baby. Because he spends a lot of time inspiring and motivating people, and because of who he is people will come to him before they come to his successor - whoever they are,” said Ruby emphatically.

“Wow - you’ve never said that before,” said Harry

“No, but I’ve thought it,” she said, and continued,

“When Iliya founded and then left the business after the IPO you took over his baby and made it your own. I just think that you will find it difficult to let go and let someone else drive the business.”

There was a moment’s pause in the conversation before Ruby turned to Elizabeth and asked.

“Do you mind if I ask you why you invited me here today?”

“Certainly not. Firstly, if I were you I would have wanted to meet this other woman my husband was meeting every week. But secondly - and much, much more importantly - I believe that a leader’s partner plays a huge role in their who they are as leaders” said Elizabeth.

“It’s an unspoken fact in senior leadership that most leaders consult their life partner on key business issues - having met Harry, I wanted to meet the woman who so obviously keeps his feet on the ground and connected to reality,” Elizabeth observed

“There are some leaders who are consumed by financial gain, status and power. Having met you I now understand why Harry isn’t one of these leaders,” she said quietly

“So if I’m not motivated by any of these factors why do you think I might not be suited to being the chairman” enquired Harry of Elizabeth

“I don’t think I’ve said that you aren’t suited to being chairman,” corrected Elizabeth

“But both you and Ruby seem to have a question mark over me taking over the role” he observed

“It’s not a question mark,” said Ruby

“It’s a statement on your exceptional competence – and how difficult that competence might make it for your successor” said Elizabeth and Ruby almost in tandem

‘So what’s the solution? asked Harry

“I don’t think you can work that out here and now but at least you are asking the right questions,” said Elizabeth, before adding,

“In my experience it can work – but only when the chief executive had a real awareness of how they need to change their behaviour in the new role”.

Not for the first time in Elizabeth’s apartment he felt under siege but in strange way the experience felt liberating and totally unlike how he was treated by colleagues in his work – especially with the Ruby factor added in.

“Now enough of all this I want to hear from you about your four daughters” Elizabeth said to Ruby

And for the remainder of their time together Elizabeth and Ruby shared stories about their respective families and the ups and

Don Ledingham. Ceannas: Leadership by Design © 2019 52 Harry and Elizabeth: A Leadership Conversation downs of bring up children, while Harry sat and pondered the preceding exchange, nodding distractedly as he was occasionally brought into the conversation.

When it was time for them to leave Elizabeth walked them to the door linking an arm either side of her, and then said

“When you get to my age you sometimes think that you’ve met all the friends you will ever have. Having met you both today I know that’s not true.” WEEK 8

Never Mistake Motion for Action

“Ruby asked me to give you these,” said Harry, as he passed a bouquet of spring flowers to Elizabeth.

“Aren’t they wonderful. I did enjoy meeting her so much.” Elizabeth said as she gave Harry his customary welcoming kiss.

“So Ruby enjoyed her visit last week?” Elizabeth enquired, as they sat down beside the window overlooking Central Park.

“She loved it,” said Harry, before adding,

“Even though it made me feel a bit uncomfortable with the two of you ganging up against me.”

“I’m sure you can handle it - and in your own way I suspect you quite enjoyed it,” said Elizabeth

“Enjoy isn’t quite the word but I suppose the two of you said things to me that no-one at work would say to me,” admitted Harry

“Isn’t it a strange phenomenon how people find it difficult to speak ‘Truth to Power’“ observed Elizabeth

“I’ve always prided myself on how open I am to my team but I guess there are some things that even my closest colleagues won’t say to me” said Harry

“I think that lack of candour towards leaders is one of the most risky things that can happen to a business,” Elizabeth stated in her typically ‘to-the-point’ manner.

“How so?” Harry returned.

“A leader who presents themselves as confident, dynamic and assertive creates a force field around them that is frequently their undoing” she said.

“But surely these are positive qualities for any leader?” Harry replied.

“This is the paradox of leadership that every asset displayed by a leader has a potential downside when over-played” Elizabeth spoke looking out the window,

“Think of it this way” she said, pausing briefly as if allowing the words to come her, before continuing,

“The leader who presents as supremely confident and unburdened by any sense of uncertainty, shuts off, deliberately or otherwise, a means of checking that their behaviour doesn’t become too extreme”

“But surely we can expect senior people in organisations to speak up if they see the chief executive going too far” Harry said - half defending himself.

“Oh Harry, if I had a dollar for the number of times a Chief Executive had told me their ‘door was always open’ then I could afford another apartment on Fifth Avenue.” Elizabeth wryly observed

Harry said, nothing in response, as Elizabeth had anticipated the very words he was about to have used to describe his own behaviour.

“Open doors mean nothing - if people never cross the threshold”

“So how are things going at work?” She asked, pirouetting on the topic.

“Good, I think, I’ve spoken to Susan and said we should give the discussions about me becoming chairman another twelve months. So I suppose what you and Ruby were saying last week was very helpful,” said Harry

“All the other moving parts of the business are going quite well but I’m worried that we aren’t creative enough as an organisation to match our competitors’ innovative edge.” Harry grudgingly admitted

“Why do you think that might be?” She asked, carefully crossing her long legs and resting her cup and saucer on her knee.

“I’m not entirely sure. Everyone is working flat out, the business is expanding, turnover is increasing yet I’m not convinced that all this effort is going to help us succeed over the next five years.” said Harry, who had finished his tea and now stood up to stand with his back to the window.

Elizabeth said nothing and studied Harry carefully. He was two or three inches shorter than her and with a thick neck and stocky body befitting someone who had played rugby in his youth. Much to Ruby’s exasperation he had a developed what she called his ‘beer-belly’, which seemed to be gradually expanding as the years went by – regardless of her attempts to get him to regulate his diet and take more exercise.

“It sounds like you need to stop “making the dirt fly” she said

“I’m sorry ‘make the dirt fly’?” Harry asked

“It’s one of my favourite stories. And I think every leader can learn an important lesson from its telling” she said

“Go on. I’m intrigued,” said Harry

“Many leaders and organisations are so committed to achieving their goal that they often mistake immediate and furious activity for worthwhile endeavour” she began, “We’ve all seen it throughout our careers, and if we’re honest, we may have even been guilty of it ourselves (I know I have) – mistaking ‘busyness’ for constructive action.” Elizabeth paused to ensure that Harry was following her. “In 1904 the American Government took over the construction of the Panama Canal from the French. This was a task that had a very tangible and definitive objective, and John Findlay Wallace was selected to be the chief engineer with an unambiguous instruction from President Theodore Roosevelt to “make the dirt fly”.” Elizabeth emphasised the last four words “However, Wallace was faced with three key problems: a proper railway to remove the spoil; the prevalence of yellow fever which led to high mortality rates; and the lack of any facilities for the entertainment and relaxation for the workers, which led to violence, drunkenness and many men returning home each year.” Elizabeth held up a slender finger in the air as she counted off the issues. “It seemed like the harder he drove his men the slower the progress they made but he was left with no alternative given the prime directive to always be seen to be taking action – even if there were other more pressing issues to be resolved” Elizabeth took a sip of her tea and then continued, “Such was the pressure to get things done at all costs that Wallace eventually resigned to be replaced by a new chief engineer, John Frank Stevens, who immediately realised that the simplistic directive to “make the dirt fly” was the problem not the solution.” “So what did he do?” asked Harry transfixed by the story “Very simple. He instructed his men to stop digging, which went in direct contravention to the directive from his President. Over the next two years Stevens set about building an

Don Ledingham. Ceannas: Leadership by Design © 2019 56 Harry and Elizabeth: A Leadership Conversation infrastructure that included building a railway to run alongside the canal to remove soil as it was dug out. He also focused on the eradication of yellow fever by targeting the mosquitoes which carried the disease.” She paused before adding, “And I love this last piece, which was to establish a series of clubhouses, managed by the YMCA, which contained facilities to entertain the men, including bowling alleys, ice cream parlours and libraries. Baseball fields were constructed and special trains took people to the games.” “Stevens’ focus on getting the infrastructure in place had the desired effect and two years later everything was in place for the project to resume in terms ‘making the dirt fly’. A railway that resembled a ‘conveyor belt’ could remove spoil; Yellow fever was completely eradicated; saloon trade dropped by 60% and the number of workers leaving the project dropping very significantly. In addition to Steven’s focus upon the infrastructure he managed to cut through the bureaucracy and red tape, and resolved to take action first and seek approval later.” “So did it work?” asked Harry “Absolutely! When they started digging again they removed over 3 million cubic yards per month (the equivalent of digging a Channel Tunnel every 3 months) and the Panama Canal was eventually opened in August 1914.” said Elizabeth concluding her tale “I love it,” said Harry “Over my career I’ve seen so many leaders who are consumed by needing to ‘make the dirt fly’ that eventually the spoil that’s building up around them falls in behind their efforts and the whole thing crashes to halt.” Elizabeth observed “I’ve often felt a bit like that engineer” said Harry, continuing “Digging a hole only for it to fill in behind me” “It’s the wise leader who can step back from the simplistic goal

Don Ledingham. Ceannas: Leadership by Design © 2019 57 Harry and Elizabeth: A Leadership Conversation e.g. “dig me a canal from here to there”, and consider what they need to put in place to allow others to achieve that outcome.” Elizabeth observed And then added, “I loved what Ernest Hemingway said about the tension between intention and action: “Never mistake motion for action.” “It sounds a bit to me that your company is in danger of confusing the two” and before Harry could reply she had moved the conversation on again to Ruby and whether or not Harry would object if the two of them met for lunch one day. They chatted on for while after but once again Elizabeth had planted a thought in his mind that meant his attention wasn’t quite what is should have been and to his surprise he found himself out on the sidewalk with Jess almost unaware of what they had spoken about after the Panama story. “That woman!“ he said to himself, as a couple walking past watched this strange man laughing out loud for no apparent reason.

WEEK 9 He who does not trust enough, will not be trusted

On Wednesday morning an envelope appeared on Harry’s desk marked ‘personal and confidential’.

The sloping script was written in a careful and contained style but with the occasional flourish in certain letters. Without knowing who it was from Harry suspected that the letter had come from Elizabeth.

He opened the meticulous correspondence with unexpected pleasure – and thought to himself how rare it was to receive a handwritten letter. The envelope and paper were of high quality and reinforced his suspicion of the sender’s identity.

Sure enough, Elizabeth’s address, neatly positioned in the top right hand corner, confirmed his guess. As he unfolded the letter a small piece of paper fluttered to the ground. Harry picked up the fragile note and found it also contained a handwritten message, but not by the same hand as the letter: For trust is like an echo It returns to whence it came And if you dare not speak it You will never hear its name

With a small addendum underneath, which read: To my little big girl, Pop.

Harry held the note carefully in his hands and read the verse over to himself a few times before he turned his attention to the letter.

Dear Harry

I’m so sorry but I'm going to have to cancel this Saturday as I have to go back home to visit my brother.

He had a stroke on Sunday and is in hospital in Idaho Falls. He’s had a couple of small strokes before but this seems much more serious.

Anyway, I’ve been giving a lot of thought to what you were saying about how worried you are about the company not being creative enough, and then connected that to what we were talking about last week in terms of how difficult it is to ‘speak truth to power’.

I have enclosed something that my father sent to me when I first went to University. He was always sending me little thoughts and verses that he found in books or newspapers – he was a voracious reader. I suppose that’s where I get it from.

This particular note related to something he felt very strongly about, which was that we should start from a position of trust when we meet new people, which went completely against the grain of most parental advice to young girls going off to university in the 60s – but that was Pop.

Like all of his notes I kept it filed away with all the others and found myself returning to them years later when a particular incident triggered a memory.

I remember visiting a business in California back in the 1980s, in which our fund had invested, and speaking to the Chief Executive who was bemoaning the lack of creativity amongst his senior executives. He made a great issue of the fact that, in his opinion, all

With this in mind I offered to meet with each of his colleagues in order to try to find out why that might be the case, and, much to my surprise, he agreed. I can only imagine that he wanted me to conclude that the success of the company was dependent upon him.

Over the next few days I managed to have time with each of the other five directors and in the course of these conversations I asked them about their creative capacity. Without fail they all said the same thing, which was that anytime they suggested or tried something new the chief executive would turn it down or berate them if it went wrong. The common phrase they all used was that the chief executive didn’t trust them.

So when I went back I told him that his colleagues believed that he didn’t trust them. I considered that this was probably about the worst thing any leader could be accused of, so you can imagine my shock when he admitted that he didn’t.

In fact he went further than that, and said that he didn’t really trust anyone, and traced it back to an incident, which he didn’t expand upon, that happened in his teens between his father and mother.

The next time I met him I took a copy of the verse my father had given me all those years before, and we discussed the impact his lack of trust had upon those around him. It was as if he had suddenly seen something that had never been apparent to him before. The concept that stuck with him was the idea of trust being an echo – if you don’t give trust you don’t get it back.

To be fair to him he focused his attention on trying to change that ingrained behaviour. Of course, no one can change overnight but a year later I visited the business again and spoke to three of the directors who were still with the business. The impact of that small – yet so significant - change in his behaviour seemed to have had a remarkable effect upon the success of the business, with directors released to generate ideas and try things out for themselves.

Now as you read this I don’t want you to think that I’m caricaturing you as a leader who doesn't trust his colleagues, but sometimes – as the Panama Canal story highlighted – there are certain things we can do as leaders that can lead to significant positive impact, which don’t seem to be directly connected to the organisation's core purpose. All ‘you’ need to do is work out what it is you need to change bout your behaviour to release the innate creativity that resides in your business (and believe me that’s not as easy is it sounds!)

I look forward to seeing you again a week on Saturday.

Please pass on my best wishes to Ruby

As ever

Elizabeth x

PS I came across this saying by the Chinese philosopher Lao Tzu a few years ago that seemed to say the same sort of thing that my Pop had put into his note to me:

“He who does not trust enough, will not be trusted”

WEEK 10

The Plumbing to Poetry Leadership Spectrum

“Where are you on the plumbing to poetry spectrum?” asked Elizabeth

“I beg your pardon,” said Harry

“The plumbing to poetry spectrum” Elizabeth repeated

“I thought that’s what you said - but I’ve absolutely no idea what you’re talking about,” replied Harry

“In my experience all leaders can be placed on the plumbing to poetry spectrum - even if they don’t know what it is. My guess is that you started out nearer to the poetry end and have gradually moved towards the plumbing end with each successive career advancement.”

“I’m sorry Elizabeth but I can’t see the connection between what I do and poetry and plumbing,” said Harry, trying desperately not to offend Elizabeth

“Plumbing is where the leader is focused on making sure everything is fixed together properly. No leaks, no faults - the system delivers what you ask of it. As long as it does that, the leader is happy. Poetry is where the leader makes an emotional connection with the purpose of work. The leader gives a deeper meaning to work by connecting people to the purpose of their activity. Are you with me so far?” asked Elizabeth, and then continued when Harry gave an almost imperceptible nod.

“Imagine a leader who operated only at the extreme poetry end of the spectrum. People would be inspired, fulfilled and emotionally connected to their work but such would be their aversion to anything remotely practical and technical that nothing would ever get done.

Now imagine a leader who operates at the extreme plumbing

Don Ledingham. Ceannas: Leadership by Design © 2019 63 Harry and Elizabeth: A Leadership Conversation end. They would be so absorbed by the delivery and maintenance of the system that they had no time - nor saw any need for any fluff (as they see it) to do with the deeper purpose of their work.”

“What has always fascinated me is why so many leaders have no reluctance to solely inhabit the plumbing end of the spectrum. In fact they define themselves as no-nonsense practical people who get things done”

“And what’s the problem with that?” asked Harry

“The problem with that is that it eventually runs out of steam and energy due to the fact that there is no emotional or higher purpose to give people’s work meaning and purpose,” she explained

“The plumbing focused leader simply sees people as parts of the machine, as tools in their box, as part of their neat and efficient system. Such leaders miss the need for human beings to be connected to some sort of higher purpose that gives meaning to their lives. Now the reality is that no leaders only remain at either of the extreme ends of the spectrum. However, the vast majority of leaders tend towards the comfort and apparent safety of the plumbing end.” Elizabeth used her hands throughout to show the opposite ends of the spectrum

“I’m not sure about this idea of poetry,” said Harry

“Why not just call the two ends practical and emotional? I can understand plumbing but why poetry?” Harry enquired with a genuine sense of puzzlement

“When did you last attend a funeral?” asked Elizabeth taking the conversation off in a seemingly unrelated direction

Harry was getting used to this so he didn’t show any surprise and replied,

“Three weeks ago Ruby and I went to our neighbour’s memorial service.”

“And did anyone read a poem?” she asked

“Now I come to think of it there were two” I can’t remember what they were though. But one was written by her husband who read it out at the service” said Harry

“And why do you think people use poetry at such times? Elizabeth inclined her head towards Harry as she asked the question

“That’s not something I’ve thought about before but I suppose it says something about the person in a way that can’t be captured in a simple description” he suggested

“Exactly” exclaimed Elizabeth, and continued,

“Now I’m not suggesting that leaders should start to communicate in verse but they should be searching out those elements of people’s work that makes their own and other people’s working lives worthwhile and meaningful.”

“But what if I can’t write poetry?” replied Harry

“It is not so much writing or speaking as a poet – but ‘thinking’ as a poet that can liberate leaders and their colleagues from the potential monotony of only concentrating upon the plumbing.”

“But what if I like plumbing?” Harry continued his theme, admiring himself for standing up to Elizabeth

“That’s the point of a spectrum of behaviour Harry. To be able to appreciate, enjoy and employ behaviours from across the spectrum as appropriate to the situation. But to only reside at one end is to seriously narrow and limit your effectiveness – regardless of much one might like a inhabiting a particular end” she explained retaining eye contact with Harry as she spoke, until he broke her gaze to look down to stroke Jess’s head.

“Thinking like a poet forces leaders to look at a complex problem or environment and then distil that down into something that

Don Ledingham. Ceannas: Leadership by Design © 2019 65 Harry and Elizabeth: A Leadership Conversation people can begin to have empathy for, and understand,” she explained, continuing, “It’s often this lack of empathy that prevents people from collectively getting behind the purpose of the organisation – especially if that mission is only really understood and owned by the senior leaders. The poet is also seeking to make connections for others and in so doing helps them to see how the subject matter relates to their own lives.” Elizabeth spoke slowly and purposefully and Harry realised that this was something that she was truly passionate about. Harry reflected for a few moments before he replied

“But what if a leader is so uncomfortable with the poetry idea that they can’t even begin to contemplate behaving like that. Aren’t you closing the door to people who might be very good at plumbing?”

“To only operate as a plumber is to be a manager – not a leader” she concluded and continued

“Yet when I reflect upon the truly great leaders of the most successful companies and organisations that I encountered during my career they had a facility to switch comfortably between the two ends of the plumbing - poetry spectrum as needs dictated. Such leaders were not self-limited by either ignoring the needs of the system or ignoring the needs of their people”

“So you think I’m a plumber?” said Harry

“Actually I don’t. Everything I’ve come to know about you suggests that you can be as comfortable engaging your emotional and passionate self as you are concentrating on the hard-nosed practical business of running a very large organisation” Elizabeth assured Harry

“However, for whatever reason I think you don’t articulate or tap into that poetry end nearly enough. I’ve not yet been able to work out why that is the case but it might explain why you are

Don Ledingham. Ceannas: Leadership by Design © 2019 66 Harry and Elizabeth: A Leadership Conversation considering stepping down as chief executive; why your people are not as creative as you might like; and why you are enjoying our conversations as much as you are,” as Elizabeth checked off each of the reasons Harry felt himself give an involuntary flinch.

Elizabeth noticed Harry’s discomfort and switched effortlessly to telling Harry about her trip back home to Idaho and how her brother was making a gradual recovery. They continued this conversation until it was time for Harry to go and just as he was about to leave her apartment he asked,

“Do you think it’s possible for someone who has drifted towards the plumbing end to shift back towards the poetry?” he asked

“Yes – I do think it’s possible” and smiled her beatific smile as she kissed Harry farewell.

WEEK 11

To see ourselves as others see us

Harry and Jess were waiting to cross Fifth Avenue when he thought he saw Elizabeth standing outside her apartment speaking to the doorman.

Whoever it was, the woman certainly had Elizabeth’s height, posture and presence – yet her steel gray hair was cut short to her head into a stylish crop rather than her classic bun. As Harry got closer he could see that it was indeed Elizabeth.

“Hey – I love your new look,” said Harry embracing Elizabeth

“Even Nelson seems to like it,” said Elizabeth nodding towards the doorman, and continued,

“When I came back from Idaho I thought to myself that it was time for change. Perhaps my brother’s illness has had more effect on me than I imagined? But for whatever reason I just asked my stylist to do something different and this is what he came up with. You won’t understand it being a man, but it’s been one of the bravest things I’ve ever done in my life”

“I doubt that very much,” replied Harry

“Come on, I want show you and Jess something in the Park” she said waving across the street in the direction of Central Park

As they walked down the sidewalk towards the crossing Elizabeth quietly said, without looking at Harry,

“I think it’s sometimes better to walk rather than sit facing each other when there’s a difficult conversation to be had”

Time and again she anticipates what I’m going to be saying, Harry thought to himself, and then he said,

“I’ve certainly been thinking a lot about what we were talking

“I didn’t say you were plumber, I simply said that you had probably drifted towards plumbing over the course of your career.” said Elizabeth

“To be honest, I find the poet analogy quite difficult, I know I shared one with you a few weeks ago but that’s the only poem I know. I find it most of it unnecessarily and frustratingly complicated and often want the poet to say, what he means to say, in a simpler less flowery way. But I certainly understand what you are on about in terms of vision and emotional involvement versus a mechanistic process, and above all the importance of a sense of purpose.” said Harry

“Go on” said Elizabeth anticipating that Harry had more to say on the matter

“But my board and my shareholders judge me on my ability to do the plumbing. They’re not interested in the poetry. So surely the attention of any chief executive needs to stick to the plumbing.”

Harry paused for a few moments as they crossed the road and entered the Park

“Share price, quarterly reports, volume of business - that’s what matters. Not whether or not I can give people an emotional connection to their work. Come to think of it people are paid to do the plumbing. If I have a software developer working for us I want him to produce the best software possible. Like a plumber - we need it to be fitted together properly. We don’t want it to break down and finally we want it to deliver what our customer wants from it when he or she pays their money.”

“And so that’s enough?” she said

“We pay our people way above the market rate - they stick with us. It seems to be working well enough without any reference to ‘poetry’ as you put it.”

“I’m sorry Elizabeth, I don’t want to upset you but this is something that I really don’t agree with.” Harry said with possibly a bit more emphasis than he had intended

“Aren’t you confusing the metaphor?” asked Elizabeth

“How can I be confusing the metaphors – they are your metaphors?” once again Harry regretted his tone the moment he uttered the words.

They walked on in silence as Elizabeth hooked her arm into his. There had been a light shower earlier that morning and the sky was overcast with a westerly wind blowing through the trees. Yet for all it was cooler than usual for that time of year it was very comfortable temperature for taking a stroll through the Park.

They were walking down the Mall with it’s Cathedral like canopy of elm trees providing them with shelter from the wind, when Elizabeth came to an abrupt halt

“Here it is”

Harry looked around and wondered what she was referring to and then he noticed to his left a statue he’d never really registered before. He read the inscription etched into the stone in gold leaf ‘Robert Burns’ and to his right another statue to “Sir Walter Scott”.

“Us Scotsmen get everywhere!” he joked

“Don’t you just” Elizabeth happily replied

“Do you know any of Burns poetry?” Elizabeth asked Harry

“I can remember a couple of lines from ‘Tae a Moose’ that we did at school and I can remember some of an “Address to a Haggis” but that’s about it” he said

“How about, “Oh would some power the giftie give us, To see ourselves as others see us.” Elizabeth recited the line in her best

“What does that mean?” she asked Harry

“I remember it now – I think its saying that if only we could stand outside ourselves and see us as others do then it would only do us good?” he replied

“That’s certainly what I’ve always taken it to mean. And I’ve used that line all over the world with some of the best leaders you can imagine.” she said

“The metaphors are about leadership. Obviously if you employ a plumber you want them to do the plumbing – but leadership isn’t just about plumbing. I think if you could have seen yourself as others saw you ten or fifteen years ago you would have seen someone who could employ the gifts of a poet to motivate and communicate with his staff” she quietly suggested and she continued to walk on down the Mall.

“But can’t I focus on the plumbing and let someone else who is better at the poetry take on that role?” he asked

“So what message is that giving people in the business? That the chief executive concentrates on what matters and employs someone else to do the ‘soft stuff’ that doesn’t really matter?” she suggested

“The tone of any organisation – like it or not – comes from the top. What the leader values is what’s valued in the business. I like to think of it this way – the leader is the custodian of the soul of the business. If the leader is only interested in mechanics of the business then that’s what gets amplified throughout the business, getting louder and louder as it filters through the layers.”

Harry didn’t reply. He was lost in his own thoughts. He’d been thinking about this conversation in some way or another for the entire week and he had been sure of his ground until they had started on their walk. Could it be possible that he’d lost that ability to motivate and energise his people? Even Ruby had said to him

Don Ledingham. Ceannas: Leadership by Design © 2019 71 Harry and Elizabeth: A Leadership Conversation that all he seemed to talk about now was share price, turnover, and quarterly reports. Could he be wrong?

“Oh wad some power the giftie gie us, To see oorsels as others see us.” he repeated Burns’ lines out loud – dragging the pronunciation out from some elementary school memory.

“It is such a difficult thing to do – but if anyone can do it. I think it would be you.” said Elizabeth and they continued their walk in calm silence as the wind blew through the high trees above their heads.

WEEK 12

Escaping from Passive Leadership

Harry sat back and looked around Elizabeth’s living room. She was taking a call in the kitchen and it gave Harry a chance to take in his surroundings in a way he had never been able to do on any of his previous visits

The room was furnished in that seemingly effortless style of someone with impeccable taste. Paintings and photographs covered the high cream walls without ever appearing cluttered. Antique tables and chairs were carefully placed around the room and small pieces of sculpture caught the eye wherever you turned, while table and floor lamps were cleverly positioned to provide the greatest effect.

A black lacquered grand piano dominated one corner of the room and two enormous bookcases occupied the entire wall to the left of the windows, which were draped in rich terracotta coloured curtains.

A wide ottoman, with neat piles of reference books, stood in front of the ornate fireplace and elegant rugs covered the parquet flooring. Two sofas sat facing each other on either side of the fire.

Harry sat in a comfortable antique chair at a small round table near the French windows, which opened out onto the small balcony overlooking Central Park and reflected on how much he felt at home in this apartment.

He’d been giving a great deal of thought to what he and Elizabeth had been talking about the previous week and he had spoken to three of his closest colleagues about their own perception of him as a leader over the last five years.

Their reply had surprised and shaken him in equal measure. In their own way each of them had said the same thing, albeit expressed in slightly different ways. The essence of their observations was that Harry had done a tremendous job taking over as CEO from the founder.

Iliya, his predecessor, had been a remarkable individual who had relentlessly driven the company to a position of market dominance. He had been an inspirational character and gained the confidence of investors and employees in equal measure. He had appointed Harry as Chief Operating Officer very early on in the company’s journey. Harry and he had been a great team, but when Harry took over as CEO after 7 years as COO he had focused much of his attention on engaging with investors, keeping the board informed and dealing with strategic issues.

Yet despite the growth of the company and the positive things they all had to say about Harry the common message from all of his colleagues was that he’d drifted away from driving the business – which they all reckoned had been an essential ingredient in the success of the IPO.

“I’m so sorry Harry” he heard a voice behind him and turned to see Elizabeth returning from her call carrying a tray with their tea.

“You looked lost in thought there,” she observed

“I suppose I was – I’ve been trying to see myself as others see me” he replied

“Ah, the power of the bard’s words. And what are you seeing?” she asked

“That’s the funny thing – I don’t think I’m recognising the man I thought I was. I’ve spoken to some of the members of my senior team this week and asked them to tell me straight how they saw me as a leader – and although everything they said was mostly very positive – they all seemed to say that I no longer had a big impact on the business itself.” Harry admitted – almost ashamed by his own observation

“Did they really say that you didn’t have an impact on the business? asked Elizabeth

“Not exactly, but that’s my summary of what they were trying to tell me.” said Harry

“So, it’s only your interpretation” she asked again

“I think it’s a bit more than an interpretation. What I heard was that I’ve lost my focus on how things get done in the business. That such is the level of trust I place in others in the business that I’ve actually lost any opportunity to influence others” said Harry

“That’s fascinating,” observed Elizabeth

“But how can trust be a bad thing?” she asked

“Early on in my CEO days I went on a two-week leadership programme for chief executives. It was incredibly intense but the thing which probably had the most influence upon me was the need to share leadership with my colleagues, and to create a culture where everyone in the business had a say” said Harry

“That doesn’t sound too bad” observed Elizabeth

“Perhaps it isn’t but I think I’ve come to realise that I’ve taken that good advice and taken it too far by cutting myself off from the business operations” said Harry as if searching for his words

“I used to be much more hands-on in terms of influencing how we went about our business, how we should behave, how we wanted to change the face of our industry. When I look at the business now I think all of those things have slipped – and I think it’s down to me.” he said

“But isn’t it generally accepted that it’s the role of modern CEOs to focus on strategy rather than operations?” asked Elizabeth

“It is – but I think I’ve taken that too far. As the former COO I wanted to provide space for my own successor and I stepped away from all operational issues immediately I took over from Iliya. Bob’s done a great job but he’s a real operations man and focuses in on the operational details of the business. As you might say he only concentrates on the ‘plumbing’ with no capacity or inclination to capture the ‘poetry’ of our business.” said Harry

“My goodness. I never thought I’d hear you use language like that with me,” said Elizabeth

“It might not look like it, but I have been listening” Harry laughed

“So what are you going to do about it?” said Elizabeth returning to her questioning

“Well I’ve talked it through with Ruby and I think I’ve become far too passive. It’s been very gradual, but I think, and Ruby agrees, that I could reengage on some of the key issues facing the business and provide some real leadership to allow us to reenergise our people, reignite our innovative capacity and revitalise our leadership team over the next twelve months before I really think about stepping up to take on the Chairman’s role.” said Harry

“But what do you mean by “passive’?” asked Elizabeth

“I think I swallowed the manual when it comes to giving people more autonomy, power and control over their own performance. It aligns with my natural sense of justice and fairness. But as I look at how things have gone over the last five years I think it’s directly contributed towards a slide that I don’t think anyone else would have noticed” Harry explained, and continued

“I think we’ve lost our edge. I think we’ve lost that sense of purpose that drove us so hard when we were working towards the IPO. We are in a comfort zone. People are happy with the status quo – and because I operate up in the clouds, as far as the ordinary people in the business are concerned – no-one is taking ownership of the leadership agenda so lost are we in our own functional responsibilities”

“So what are you going to do?” asked Elizabeth

“I’m going to speak to Susan, our chairman, on Monday over lunch and I’m going to suggest to her that I shift over the next year to take on a more active role in the business, not in operational details, but in giving our business that edge it used to have, to give everyone a clear and unambiguous direction of strategic travel and how they contribute towards that direction, and finally to reengage with our values and to champion them throughout our business until they take on a life of their own.” Harry explained gradually becoming more and more passionate as he spoke.

“Well I will be very interested to hear about that when we meet again next week. Now I think I’m going to have to go and refresh our tea” which had been ignored throughout their conversation.

“You might like to take a look at that score on the piano while I’m out” she said

Harry wandered over to the piano and turned the score back to the front page:

I'm Beginning to See the Light" written by Duke Ellington, Don George, Johnny Hodges, and Harry James, 1944

Harry smiled to himself and shook his head. He was getting used to this.

WEEK 13

Integrity has no need for Rules

Elizabeth had woken that morning at 6.30am and walked the two blocks to the gym where she completed her daily routine of 40 lengths before showering and changing into black, high-waisted slacks, a long white silk shirt which she wore over her trousers and a pair of classic sandals.

As was her habit she went to the club’s comfortable lounge where she had an espresso and a croissant while reading the weekend edition of the Wall Street Journal. On weekdays she added a copy of Le Figaro to her reading list.

At nine she set off for home and was all ready for Harry’s arrival at ten.

Elizabeth heard the elevator doors open and stepped out to welcome Harry and Jess in her customary manner.

“Hi Elizabeth, you’re looking very summery today” said Harry.

“I walked to the gym and back without a jacket – I know it’s summer when that happens for the first time,” she said to Harry, showing him through to the living room before setting off to get Jess her bowl of water.

“I half thought you might have wanted to have gone for a walk in the Park today” Harry shouted through to the kitchen.

“Not today, too much to talk about” she said, arriving with Jess’s bowl on the same tray which carried their tea.

“Mmm – so we have a lot to talk about do we?” said Harry putting on a playful frown.

“Why of course, I want to know how your conversation went with Susan and what she said about you stepping forward a bit more as CEO” she said, as she went through her well-practised tea ceremony.

“That’s what was so surprising” Harry said, and continued,

“I thought we could say anything to each other, such is the long- term nature of our relationship. But when I explained to Susan what I was thinking of doing she said that she had wanted to suggest that to me for at least the last couple of years.”

“And why hadn’t she?” asked Elizabeth.

“She’s liked having me close to the Board and was also aware how much I wanted to give my senior colleagues space to operate without too much interference from myself. I think she was also influenced by how our share price has gone up over the last five years, so at the very least nothing was broken.” Harry explained.

“So why the need to change?” Elizabeth enquired.

“We both think our company has been a bit complacent as we’ve not really had to fight for business. Our competitors are looking to dominate the market and there are newcomers who see it as a flabby industry with lots of room for improvement and efficiency.

If we don’t keep renewing ourselves then we’ll be squeezed out.” Elizabeth listened attentively as Harry set out the challenge.

“There are three things I want to do over the next twelve months. The first is to connect everyone’s heads and hearts – and I do mean everyone in our business - to our fundamental vision, that is then lived out in our performance; the second is to place ethical thinking at the forefront of every decision we make; and, finally, I want to create an environment where we become world leaders in terms of innovation, creativity and productive thought” said Harry.

“My goodness, you have been giving this a lot of thought, but why these three?” asked Elizabeth

“Over my career I’ve come to realise that failure is usually associated with taking on too much - and achieving nothing as a consequence. Although the goals are big, I see the three to be fundamentally connected which will give a real focus to my work,” said Harry.

“Have you thought about what you’re going to drop in order to achieve this change?” again Elizabeth responding with a question.

“That’s the challenge but it will probably mean that some of the things that I currently do will have to be picked up by others in the senior team.” said Harry.

“I suppose you could say that this is an excellent opportunity for them to take on CEO level tasks,” Elizabeth observed

“That’s exactly how I want to present it”

“And what about your Chief Operating Officer - how are you going to present this to him?” she asked

“As I’ve said before, Bob is an operations man and doesn’t really see the need for this kind of thing. I want him to work with me on this, without him taking his eye off the ball - but also to use his analytical mind to provide a check and balance to my own work.” Harry explained.

“So how are you feeling about the prospect of this change?”

“Ruby says that she hasn’t seen me quite as fired up for over twenty years - that probably says it all,” said Harry.

“I can tell just from speaking to you that this seems to have touched a deep reservoir of passion and energy. But how will you maintain this once you get hit with the daily left-field knocks that are the lot of a CEO?” said Elizabeth

“I’m glad you asked that. It’s my greatest fear that good intentions are wiped out by events. That’s why I’d like to involve you.”

“Me?” Elizabeth queried.

“Yes - I’d like to put our weekly meetings on a more professional footing” said Harry.

“What - you’re going to pay me?” said Elizabeth.

“At the very least I feel I need to offer – I don’t think you realise how helpful you’ve been to me over the last few months.” said Harry.

“Well thank you for saying that but I’m afraid that won't be happening. The fact is that I enjoy our meetings and the very thought that I might be making a positive contribution in some way is more than enough recompense.” she said, sipping her tea thoughtfully.

“I suspected that’s what you would say but you do understand that I had to ask. At least let me and Ruby take you out for dinner sometime soon?” said Harry.

“I’d like that very much. But can you tell me a bit more about the ethical focus you want to take?” asked Elizabeth.

“Every company I look at just now talks about integrity as being one of their core values – but when I look at how they behave in business it’s singularly missing. I was doing a bit of reading last weekend following our chat on Saturday and came across a piece about Andrew Carnegie. I’m not suggesting I’m anything like him by the way, but he did emigrate from Scotland and built up one of the world’s most successful businesses at the time. Anyway. His favourite saying was:

“Thine own reproach alone dost fear”

What was amazing was that this was a line from one of Robert Burn’s poems, and the fact that we had been talking about Burns only the day before was an incredible coincidence to me.” Harry seemed genuinely moved by his story

“Do you think that Carnegie is really the best person to using as a role model for good ethics?” asked Elizabeth, trying not to puncture Harry’s enthusiasm.

“To be honest all I know about Carnegie was that he was one of the world’s most successful industrialists,” said Harry.

“Carnegie was not known for being benevolent to his work force— bringing in cheap Chinese labour to depress wages and troops to curb labour unrest. He would also have been put behind bars today for insider trading — but not illegal or even regarded as immoral then, so not so relevant perhaps.” Elizabeth explained.

“So how do you define integrity?” Harry asked.

“Well the idea of integrity is dependent upon what constitutes the ‘right thing’, when we know that the perception of the ‘right thing’ varies according to cultures and historical eras. What was ‘right’ in Carnegie’s time – wouldn’t be ‘right’ today.” Elizabeth said as she paused and took a sip of her tea.

“But I would say that integrity is connected to a set of internal moral and ethical guidelines that inform behaviour, which are much more than simple compliance with the law. I always liked what Albert Camus, the French philosopher had to say about this, when he argued that:

“Integrity has no need for rules.”

So really ethical behaviour is about: ‘Ought’ and ‘ought not’, not just ‘must’ and ‘must not’.” Elizabeth emphasised the latter part of the phrase and then concluded with,

“How does that sound to you?”

“That’s exactly what I’m driving at,” said Harry

“Why is this so important to you?” asked Elizabeth.

“I want to create a culture in the business where our people are internally driven by a commonly held set of principles, as opposed to me and my team setting a set of rules and laws which people then set out to find ways of getting around” said Harry.

“And don’t you think the business operates like that at the moment?” asked Elizabeth.

“No, I don’t – but I think we could, and it could be an incredibly powerful way of differentiating ourselves from our competitors in an industry that is quickly becoming known for cheap salesmanship. But more than that I think it could bind people together and make them feel good about themselves and about our business in ways that could really benefit our bottom line. So you see it’s not completely altruistic” said Harry.

“I understand probably better than you think.” said Elizabeth.

Harry nodded knowingly.

“Here’s to the next twelve months,” said Elizabeth, raising her teacup in a toast to Harry.

Harry lifted his own cup – cold and untouched - and tapped it gently against Elizabeth’s.

“To the future” he said.

WEEK 14

A LEADER’S VALUES

“So has this been an ethical week?” asked Elizabeth, as she poured their tea.

“Well, you might not believe this, But I think it has” replied Harry.

“Tell me more” she said.

“When I got home last week after our morning tea Ruby and I had taken the train up to our house in Bedford” said Harry.

“I didn’t know you had a place up there” said Elizabeth.

“We’ve had it for nearly fifteen years and it really feels like our bolthole from the Manhattan hustle” he replied.

“On the way up, I was explaining to Ruby what we had been talking about that morning, especially the bit about ethical behaviour. She was really pleased that you had pushed me away from the Carnegie example” he said.

“I don’t think I pushed you away, I merely pointed out that values aren’t a free for all that provide you with a licence to behave as you best see fit” she countered.

“I get that, and that’s what I was saying to Ruby, and so she questioned me about what my own values are,” said Harry.

“And what did you say?”

“That’s the funny thing when you really begin to think about what your values are it comes out in such a clichéd way about integrity, fairness, honesty, respect and all the other words that seem to appear in every company report I’ve ever come across.” said Harry

“And did Ruby have any suggestions about what your own values are?” asked Elizabeth.

“She did and what she came up with was far better than anything I could have said.”

“That doesn’t surprise me – it’s often someone that knows you intimately that has a better handle on your lived-out values than you do yourself” said Elizabeth

“So she reckoned there are three things that I’ve lived up to in my life. The first is ‘compassion’, the second is ‘honour’, and the third is ‘selflessness’.”

“That’s fascinating. And did you agree?” she asked

“On first hearing I was quite flattered as they sounded pretty positive to me. But after giving it a bit more thought I began to think that they are perhaps a bit ‘soft’ for the CEO of a listed company” said Harry.

“How so?”

“Compassion sounds good and I take it to mean that I’m kind, considerate and caring. And don’t get me wrong these are great qualities but it got me to wondering if they have perhaps prevented me from taking necessary action in my career because I tend to inhabit the other person’s shoes a bit too much. What do you think?” asked Harry

“I think you are right – they are great qualities. And from everything I’ve come to know about you Ruby has absolutely got you. Why are you seeing it as a downside?” said Elizabeth.

“Not a downside but sometimes I don’t take action when perhaps I should because I can understand why the person has taken the action they have – even if it’s been against instructions and expectations. I suppose I always err on seeing the positive and discount the negative.” said Harry

“I still don’t see that as being a bad thing” she said.

“No, you wouldn’t but I think sometimes people take advantage of the fact that they know they’ll get a second chance”

“So what about honour?” she asked

“We talked a lot about that I asked her why that word, rather than trust, or reliability. She thinks I am a “man of honour” - her words not mine – where my word is my bond. It sounds a bit old fashioned, but Ruby knew that this was one of my father’s most important sayings. If you promise to do something you don’t need contracts, or fear of punishments, or other negative consequences you just need to shake hands and that’s enough. I hadn’t really thought about his influence before, but it is definitely something that means a huge amount to me.”

“So what was your last one – selflessness wasn’t it?” she asked

“It was, and that surprised me as I actually think I’m pretty selfish. But Ruby reckons that I always put other people’s needs before my own.” said Harry

“And do you?”

“It’s important to me but there have been plenty of times when I’d had to lay people off or sack them or do other things which have been pretty tough – and I’m sure the people effected didn’t think I was anything but selfish then.” said Harry.

“Perhaps I can help here. If you were to think of a continuum with selfishness at one end and selflessness at the other, where would you put a cross that represented where you were” said Elizabeth, describing the ends of the continuum with her hands extended about three feet apart.

“Show me where on the line you would place yourself” she said.

Harry reached forwards and pointed to a point just a few inches from the selflessness end, “About there” he said.

“So we have compassion, honour and selflessness as your values. That’s quite an unusual set of values for a chief executive,” said Elizabeth.

“They feel right to me but I’m not sure if they cover everything,” said Harry.

“What do you mean?”

“It just feels that there’s something missing about what drives me to run a business. I mean I like the three we’ve come up with but I can’t help but think that there’s more” Harry said

“So take me back to when you first took up a senior position. What was it about you that made you different from others?”

Harry paused a moment and stared out of the window and pondered Elizabeth’s question.

“Accuracy – it would have to be accuracy. I liked to get things right. If you’re going to do something, then it’s worth doing it well and I tried to get that through to everyone who worked with me. Especially if we had a client who was paying a lot of money for our services” “Interesting – now is that really accuracy or is that ‘service’ to the customer?” Elizabeth asked

“Now you’ve got me.” Harry paused again

“No, I do think service is important – but if what we do isn’t accurate then it doesn’t matter how well we treat our customers. They pay us to lift the burden from them – if we make mistakes then we haven’t done our job.,” said Harry

“OK – so accuracy it is then. Now what might be your last value as a CEO – and one that you’d like to be reflected right across the business by everyone who works for you?” asked Elizabeth

Once again Harry looked out the window but this time he fidgeted

Don Ledingham. Ceannas: Leadership by Design © 2019 89 Harry and Elizabeth: A Leadership Conversation in his seat and made faces to himself, and finally put his head in hands as he wrestled with Elizabeth’s question. Eventually he lifted his head.

“Positive contribution” he said

“I’m sorry what was that?

“Positive contribution. If there’s been something that’s driven me throughout my life, it’s been a desire to make a positive contribution. That’s been in teams; in individual jobs; in every business I’ve worked in; and hopefully – in a small way – to wider society.” said Harry

“And do you see that across the business?” asked Elizabeth

“Do you know what. It’s probably the single thing that annoys me most about some of my colleagues. All many of them seem to think about is how their own functional responsibility is going, how their own team is doing – with no thought as to how they can make a more positive contribution to the wider business.” said Harry

“But aren’t they making a positive contribution by just doing their own job well.”

“No – it’s just not enough. They need to be thinking about how they can add something more. Constantly striving to add something by helping others to succeed.” said Harry

“Go through these values again for me.”

“Well we had: Compassion; Honour; Selflessness; Accuracy; and Positive contribution.” said Harry as he mentally checked them off.

“Now tell me how consciously aware of these values have you been?” asked Elizabeth

“Until this moment – probably never. But I think they are the things that drive me – aside from looking after my family. But if we’re talking business then these five values probably represent me very

“I certainly can’t think of many companies I’ve encountered in my career who had such a set of powerful values,” said Elizabeth

‘But these aren’t the company’s values – these are my values” said Harry

“And remind me what role you have in the business again?”

“I’m CEO – but surely these values need to be shared and owned by everyone if they’re going to have a chance to shift behaviour” said Harry

“Absolutely – but remember what we were saying a couple of weeks ago about passive leadership. If you’re going to step forwards and lead the business in a more proactive fashion, then perhaps a starting point might be to share your values more explicitly and why they mean so much to you and the business?”

“Elizabeth can we pick this up again next week? Ruby and I are catching the train to Bedford at 12.00 so I’ll need to shoot off a bit earlier than normal.” said Harry as he got to his feet

“Anyway. I’m exhausted!” as he lent forwards and kissed Elizabeth’s cheeks.

Her habit was catching.

WEEK 15

Enron: Values Free Leadership

Elizabeth and Harry sat at a table at Le Pain Quotidien, outside the Mineral Springs pavilion in Central Park. Jess lay down dutifully at Harry’s feet, keeping one eye on Harry and Elizabeth and another on a smooth coated Weimaraner at a nearby table.

“Aren’t we lucky to live so close to the Park, especially on a day as beautiful as this” said Elizabeth.

“It’s one of the main reasons we moved to the Upper East Side nearly fifteen years ago.” said Harry.

“Isn’t it funny how we’ve both lived here for so long and yet never met before.”

“I’ve wondered about that before – especially how our paths must have crossed so many times during that time.” said Harry

“So how has your week been? Have you done anything with the values we were talking about?” she asked.

“I have, in fact they’ve taken on a bit of a life of their own.”

“How so?” asked Elizabeth.

“It started off on Monday when I had a one-to-one with Isabella, our marketing director. She was showing me the proofs for our new advertising campaign and I happened to ask her what she thought about our existing company values.”

“And what did she say?”

“Well, one thing about Isabella is that she’ll always tell you the truth - even if you don’t want to hear it. So she told me that she had no idea what they were and that they made no impact upon her or her team,” said Harry.

“Did that surprise you?” she asked.

“No - not really - we had revised our values a few years ago but after the initial burst of enthusiasm they were things that no-one really paid much attention to. I’m now beginning to blame myself for that.” said Harry, before continuing,

“Anyway, I told Isabella about the thinking I’d been doing about the values that drive me and she started to get quite excited about the impact they could have upon the business.”

“Why did she think that?” said Elizabeth.

“According to her she thinks that we have sacrificed something of our soul over the last few years in our drive to grow and expand.”

“How did you introduce them to her?” she asked.

“That was the funny thing - it felt totally natural, just like I was telling a story. Except I took the values we had been talking about and last week and linked them to how they could impact upon our business.” he said.

“Could you repeat that story for me now?” she asked.

“OK but it might not be exactly the same word for word.”

Elizabeth nodded and filled their cups.

“We’re a service business; we’re here to serve others. At the core of that is the concept of compassion - although I shifted it a bit to focus on empathy. Great service companies start by putting themselves in their customers’ shoes. They think like customers, they start everything from that point of view and they never lose sight of that.” said Harry, becoming more animated as he went on.

“What did Isabella make of that?” asked Elizabeth

“She loved it and said it reminded her of why she came into this business in the first place.” he said, and continued,

“The second value was selflessness. Now this was a bit trickier to get across as it sounds a bit disingenuous that a sales business could ever be selfless - but once again Isabella liked it and took it forwards by saying that sales are all about putting your own needs second to that of the customer. I liked the phrase she used “It’s a privilege to serve”.

“That sounds more like someone in the hospitality industry than a hard-nosed business-like software support. I have a friend who used to be the manager at the Waldorf Astoria and his mantra was “We’re here to serve” and he turned that simple term into a way of life for everyone in the hotel.” said Elizabeth.

“But that’s exactly what I want us to be like. We are in the customer relationship management business - the key words there are customers and relationships, if we don’t get these right then the management system will never be fit for purpose.” he explained.

“I understand what you’re saying - although your industry is one that I’ve only read about since meeting you. Now what comes next?” said Elizabeth

“We talked about honour. Isabella liked the principles behind the word, but she worried that it had gender and religious connotations.” he said.

“Explain,” she said succinctly.

“When we spoke last week, I had talked about being a ‘man of honour’ - yet you never hear about being a ‘woman of honour’. Isabella also reminded me about ‘honour killings’ where women who are deemed to have brought dishonour to their family are punished - in the most severe circumstances by murder.” he said.

“So, did you come up with an alternative?”

“Honour is all about keeping your word and delivering on promises. We teased that out a bit more and came up with “We

Don Ledingham. Ceannas: Leadership by Design © 2019 94 Harry and Elizabeth: A Leadership Conversation don’t let people down” - now I really liked that, as it’s one of the things that would make a real difference to us as a business. I also liked the idea of capturing our values in a few words, rather than a single word,” said Harry.

“I know what you mean, over the course of my career I can’t begin to tell you how often companies said that ‘integrity’ was at the core of their practice, yet no one seemed to have any idea how that was going to inform their day-to-day practice.” she said.

“I think I’m just beginning to understand that - despite having gone through so many exercises during my working life to work out our company’s values - the effort was all up-front in working them out, but no one invested any time in how these words were going to be lived out.” admitted Harry.

“Do you recall the Enron scandal?” asked Elizabeth.

“Of course I do - it was the biggest bankruptcy ever, where they hid billions of dollars in debt from failed deals and projects. A bunch of executives went to jail and the accountancy firm Arthur Andersen went to the wall.” said Harry.

“Exactly, yet did you know that Enron listed one of its core values as Integrity – which they defined as working with customers and prospects openly, honestly, and sincerely. Yet when it came to the acid test the leaders singularly failed to pay any attention to that value and - it transpired - never had.”

“No, I didn’t know that – but as you said most companies probably have integrity as one of the key values” said Harry.

“I find it disturbing that the focus of the collapse of Enron was on accounting systems and lack of governance, but no-one mentioned the failure to live up to a value that was supposed to characterise the company,” said Elizabeth, and then continued,

“I think that’s why I treat such words with such caution - it doesn’t matter if every other person behaves with integrity - if the leaders don’t - then it counts for nothing!” said Elizabeth, her unequivocal

“Are you suggesting that values only count for leaders in a business?” he asked.

“Not at all, but in my experience too many leaders commission values exercises in the company in order to shape the behaviour of their employees but don’t see the outcome as having anything to do with their own behaviour.” she said.

“That’s what I’m coming to realise – yet I would probably count myself amongst these leaders. Looking back our HR function would usually lead the project and report back to us as managers but I’m coming to appreciate that it has to come from us if it’s really going to have the impact we intend upon the whole business.” said Harry.

“I can’t disagree with you on that one. So what about the other two values you identified last week?” she asked.

“We had ‘accuracy’ but when I explained it to Isabella she picked up on something I said along the lines of “We aim to get things right first time”. I’ve learned the value of hearing my own words being replayed to me from our own conversations and I think I liked that more than just the bare bones of ‘accuracy”

“And the last one?” she asked

“That was ‘positive contribution’ but after we had spoken I wasn’t too keen on it. I tried it with Isabella and she thought it was too open to interpretation. She suggested that I was really saying was “step up and be counted” – what do you think of that?” said Harry

“I think she’s very good at translating what you were saying into language that is more readily understood – she must be a good at her job.” observed Elizabeth

“She is – and I liked how she built upon the ideas and used them as a catalyst for creating something that can have an impact on the whole business,” said Harry

“So what are you going to do next?” asked Elizabeth

“Isabella has offered to work up the values we had talked about into a presentation that I could share with our Executive Leadership Team at our next meeting. I’ve agreed and asked her to work it up and we’ll talk about it next week.” said Harry.

“How are you feeling about all this?” asked Elizabeth

“I think I’ve said this to you before, but I can’t quite believe how excited I am about it. It’s as if I’ve got my mojo back. I really do believe that it could have an amazing impact on our business if we can align them with great business practices – or perhaps that should really read the other way around.” said Harry

Elizabeth nodded and they both sat back and looked around them, taking in their surroundings for almost the first time since they had taken their seats.

WEEK 16

We Don’t Have time for Values

Dear Elizabeth

Please find copied below the text of an email I received from Bob, our COO, this evening.

I’m afraid I won’t be able to make tomorrow as our flight has been brought forward to tonight.

We’re away for the next couple of weekends.

But I’d love to hear your thoughts on the email.

Best regards

Harry

Dear Harry

I’m sorry if I reacted inappropriately this afternoon when you were telling me about your ideas for revisiting the company’s values.

You and I go back a long way and I don’t want anything that I said today to be taken in any way as disrespect for you.

However, I meant what I said when I believe that we just can’t afford to take our eye off the ball at the moment – and going through another internal navel gazing exercise is definitely going to take our eye of the ball!

You know me better than most and you understand how much I care about this business and the need for us to be a profitable and attractive proposition for our investors. A business is a business and I sometimes think we turn ourselves inside out to pretend that we have to have a corporate soul.

You pay me to deliver and that’s just what I do and I need to protect everyone who works under me from anything that might distract them from that purpose.

Without fail every one of these values exercises I’ve been through in my career have been based on the spurious notion that everyone will have ownership of the product and that by giving each other the happy slappy high fives is going to contribute towards our bottom line – not!

I know it’s well intended and that we’ll bring in ‘great people’ to facilitate our ‘journey of discovery’ but I can tell you now the output – and that’s an overstatement – will be at best meaningless drivel: and at worst unintelligible, overcomplicated jargon-laden snake oil!

It was only a few weeks ago that you gave the ExCo a hard time for a lack of innovation and challenge – how can we do that if we’re tied up in something totally unconnected to those goals?

I know the intention is to create something that binds us all together into a single unified group of people but I need to let you know that it only serves to create two silos in the business, i.e. those who believe, and those who don’t. So it actually serves to exclude rather than include – which in my professional opinion is exceptionally dangerous.

Over the last few years you’ve been focusing on working with the Board – and you’ve done a great job with that. But I do think that this means that you’ve kind of been disconnected from what happens in the business – you kind of admitted that this afternoon. It’s my job to tell you straight if I think you’ve got something wrong and I’m sorry to say Harry that this could be a catastrophic mistake if you decide to push this through.

However, if you do stick with this course I need to say that I do not intend to play any part in the exercise and hope you respect my professional judgement on this matter as a successful executive with over 30 years experience.

Please be assured that I will continue to ensure that all the moving parts of the business will continue to run smoothly and that I will keep ort focus on delivering on budget, managing our costs and driving the key managers who keep this business afloat.

As you know better than most I am someone who is driven by very strong personal values – these values have served me well throughout my working life and I have no intention of putting these to one side merely to pretend that I’ve bought into the corporate groupthink that will only have a shelf life of a couple or fears at best.

As I said, I’m sorry if this comes across as a bit negative but I respect you as one of the best leaders I’ve ever worked with.

I strongly recommend that you step back from this exercise and continue to drive the business forwards in the manner that has worked so well for us over the last five years.

Yours truly,

Bob

Chief Operating Officer

WEEK 17

Time to Fire your Chief Operating Officer?

Dear Harry

Thanks for sending me through Bob’s response to your discussion about revisiting the company’s values.

I think the first thing that strikes me about his response is that this is not an unusual perspective from senior managers I’ve encountered over the course of my career, albeit that they might have been a bit more circumspect about revealing their position to their CEO.

In line with our conversations to date I would not presume to tell you what to do – I am singularly unqualified to do so. However, given that it was my job to analyse businesses with a view to where we would invest our clients’ funds, or perhaps more importantly, where we wouldn’t invest their funds, I will attempt to provide an objective point of view.

There can be no ambiguity that Bob is strongly against any attempt by you to lead a values exercise in the company. To be fair to him he has been honest and transparent in that opposition, and as I have suggested before that is something worthy of admiration and respect.

Nevertheless, as your number two it presents you with a singular problem if you believe that the company needs to undertake this exercise. Given that I understand this to be the case there would appear to be six possible alternatives that are worthy of consideration.

Number one: Step back from the values exercise

In this scenario you heed his advice and abandon or park the exercise until a date in the future when conditions might be more conducive to a positive outcome. This is problematic on a number of counts in that it undermines your authority as CEO – Bob could apply this same strategy in respect to any proposal you make that does not suit him. This course of action also assumes that the values exercise has no immediate value to the business, or that Bob’s loyalty and support is more important than any benefit that might be derived from using values as a driver for the business.

I know you’re not motivated to be a seen as an authoritarian person in the organisation – but you do need to consider if it destabilises your role in the company as people come to believe that it is Bob, rather than yourself, who carries the real authority in the business.

On the other hand you could argue that a decision to step back from the values exercise shows that you can heed advice from a senior colleague and that have no need to wield your executive power just to show your seniority.

You could also contend that this solution would certainly keep the ship on a steady course and avoid any risk of a negative impact upon the business which might arise from a split between yourself and Bob.

Number two: Allow Bob to opt out of the exercise and concentrate on his function

Bob appears to be an honest and honourable man – you know him much better than I do so you are better placed to judge the sincerity of his statements in his email.

If this is the case, you accept that he won’t be part of the exercise and rely on him to keep the ‘show on the road’ while you initiate and lead the exercise. The advantage of this route is that it ensures that business as usual is maintained while your attention might be elsewhere – you know how sensitive investors are to a drop in company value and how it can be associated to changes in leadership focus.

Once again, this strategy has a number of drawbacks. For example, how can others be expected to take the exercise seriously when they see that your COO has opted out? I don’t know Bob but in my experience people like him find it very difficult to keep their true opinions to themselves and just by reading Bob’s email I can tell that he will more than likely share his point of view with his colleagues, not to undermine you (again your call), but to demonstrate that he is ‘protecting’ them from a worthless exercise.

I suppose you need to think about whether or not the exercise really will take people’s eyes off the ball as much as Bob suggests – or whether or not he is exaggerating that for his own ends.

Number three: Ask Bob to lead the exercise

Bob says that he is guided by a set of personal values – so he obviously understands the importance of values in shaping behaviour, it’s just that he doesn’t see that happening in businesses.

You could you use this as a way of engaging him and giving him the responsibility to lead the exercise with your support. In this way you use his status in the company as a lever for change and turn him around into the strongest advocate for the values in the business.

This strategy comes with some risk for you have to ask yourself whether or not he would truly represent the integrity of the exercise or simply as an opportunity to keep you side-lined and – in his mind – causing any damage to the stats quo.

Finally, and not without some irony given the previous options, there’s the risk of operations being diminished by your COO losing his focus on the business.

Number four: Instruct Bob to participate in the values exercise or leave the company

You issue a direct instruction to Bob that he will participate in the activity and that you expect him to do so positively and with purpose. The alternative would be for him to consider his position in the company and if he feels that strongly about the matter you would look favourably on providing him with an honourable and well- remunerated exit.

The obvious risk here, if he agrees to comply with your instruction, is that he does it in a half-hearted manner that undermines the integrity of the exercise for all involved. Beyond that the idea of issuing a direct instruction to a chief operating officer, who doesn’t believe in a course of action, carries a significant risk to the long-term future of the business given the importance of the relationship between a CEO and COO.

The other risk with the ‘do it or go’ approach is that Bob decides he will leave the company when you don’t want him to leave and this has a negative impact upon the business. If you were going to go down this route you would have to be comfortable that Bob might leave, i.e. you need to have fully thought this through and weighed up the risks and the course of action you would take.

Number five: You fire Bob

I know this sounds a bit blunt but give the previous option it needs to be, at the very least, part of your thinking.

Bob has made his point of view crystal clear. If you go ahead in the manner you had intended, then the likelihood of him supporting the exercise is minimal. If, as you and your chairman have agreed, you want to adopt a higher profile role in the business by engaging and leading the values exercise – for all the reasons you have previously articulated – then perhaps Bob is an obstacle that needs to be removed.

I know you have enjoyed a long-term relationship with Bob that extends beyond business, but your ultimate obligation is to the company and all the people who rely upon it for their employment and economic success.

It was a feature that I came to recognise quite late in my own career that businesses can outgrow leaders who were once exceptional – especially if they stick with and rely upon what has worked in the

Don Ledingham. Ceannas: Leadership by Design © 2019 105 Harry and Elizabeth: A Leadership Conversation past. I can’t make that call about Bob – but you will know the answer to that question (probably at an intuitive level). The call to remove him comes with all the risks that don’t need to spelled out here – but if you do believe that business needs to shift then perhaps that time has come.

Number six: You resign

Dramatic perhaps, but if none of the above are appealing then perhaps the time has come for you to think about whether or not you are indeed the best person to lead the organisation.

I’m looking forward to catching up again in person next week.

I’ve missed out Saturday morning chats.

Please pass on my love to Ruby.

Elizabeth

WEEK 18

Choosing a Course of Leadership Action

When Harry arrived at Elizabeth’s apartment he found the door open and heard the voice of Ella Fitzgerald drifting through from somewhere inside. He knocked on the door and called out Elizabeth’s name as he entered the apartment. She shouted back and asked him to come in and close the door behind him.

Elizabeth was sitting on the balcony overlooking Central Park and stood up and welcomed Harry and Jess like long lost relatives.

She told Harry to take a seat while she went and got their tea. For the next half an hour they talked about Harry’s holiday in the Caribbean and only once Elizabeth had extracted every last detail did they move on to talk about Bob.

“And how did your conversation go with Bob?” she asked.

“I’ve arranged to see him on Monday when he comes back from vacation.” said Harry.

“And have you decided on what you’re going to be saying to him?” said Elizabeth.

“I think I have, and I found your description of the options to be incredibly helpful,” said Harry.

“I’m sure there are other options but those were the ones that seemed the most obvious to me,” she said.

“It’s strange when you’re so close to things how it helps to have someone looking in who isn’t involved,” said Harry.

“Funnily enough I do feel as if I’m involved” she said.

“So, what would have been your own preferred course of action?” he asked.

“Oh, that’s a bit unfair – as I said in my email I don’t know Bob as well as you do. The ultimate decision needs to take that knowledge into account. I learned a long time ago that all decisions are dependent upon circumstances and people. We make out biggest mistakes when we try to factor out the context and apply a simplistic objective solution,” she replied.

“Ok, I understand that but which of the options would you discount?” he pressed.

“Sorry Harry, but I’m not going to go down that road. I know you’re only testing your own opinion – but all of the options could be seen to be legitimate if they address the situation and the person,” she said

“Jeez, has anyone ever told you that you can be stubborn?” he said

“On many occasions - and I’ve always taken it to be a compliment. So what are you going to do?” asked Elizabeth.

“As ever, your thoughts are extremely helpful because I think my solution does take into account my knowledge of Bob and where we are as a business at this point in time,” he said.

“So, let me begin by discounting some of the alternatives. Firstly, letting Bob opt out isn’t an option. He’s a strong character and the very fact that people see that there are things in the business that are more important than resetting our values would undermine the exercise from the start and allow many other senior leaders to opt out for similar reasons.” he paused a moment.

“Secondly, allowing Bob to lead the exercise would be a disaster given his stated objections to the exercise, in addition his own integrity would probably lead him to refuse the invitation – therefore placing any subsequent solution on the back foot. I also think that this is something that I need to lead as CEO. Thirdly, my own resignation, which took me a bit by surprise, although I can see why you suggested it, isn’t going to happen.”

“Alright, so that’s what you’re not going to do, what are you going to do?” she asked again

“I have to admit that my initial thought when I read his email was that I’d have to let him go. In fact, I had to check my emotional response, as that feeling was incredibly strong. I reckon it was a good thing that I’ve had all this time to reflect upon my response - I’ve made some of my biggest mistakes by rushing a decision’” he said.

“My response is a three-part solution:

Firstly, I’m going to explain to Bob why I believe we need to reset our values. These reasons are that our profits have flat lined for the last two years; the number of businesses entering our market has doubled in that time; and that many of our competitors are ‘out-innovating’ us in terms of new products and approaches to sales. If we don’t reset now then all the evidence is that regardless of how hard we work, just doing more of the same is inevitably going to lead to a downward trajectory for the business. We need to completely reshape how we conduct our business and I believe the starting point needs to be our values and they will provide the foundation for that change.

Secondly, I’m going to appeal to our personal and professional relationship and say that I need him to be by my side as we take this forward – not just in the ExCo team but throughout the business.

Thirdly, I’m going to ask him to bring all of his scepticism and questioning to the team that’s going to lead this and I’m going to ask him to help us create something of value that goes well beyond anything that resembles ‘snake oil’ or ‘gobbledygook’. My only stipulation is that he does all of that within the four walls of the room in which we are going to be working. Outside that space I will require him to get behind the exercise as part of a very clear policy of collective responsibility.”

“And what are you going to do if he says no?” asked Elizabeth

‘That will be another conversation and another decision, but I want to go into this with total integrity and not be pretending that this part of a two stage process to get him out if the business. I’ve seen other people do that too many times in the past and it reeks of hypocrisy and insincerity.”

“I genuinely want to go down this route and I want Bob to be part of it. I think he’ll see how important this is to me – and for the business,” said Harry.

Elizabeth nodded as if she agreed with Harry’s strategy but effortlessly moved the subject on to what she had been up to in the three weeks since they had last met.

WEEK 19

Challenging the Passive Aggressive

“My meeting with Bob was one of the worst, yet possibly one of the best conversations I’ve ever had with a colleague,” said Harry as he started to describe his meeting with Bob.

“That sounds intriguing,” said Elizabeth.

“Taking a leaf out of our Saturday morning play book I had arranged to meet him early at our office to go for breakfast together. I chose a small diner about a couple of miles away that gave us a good chance to walk and talk at the same time,” said Harry.

“Good idea,” said Elizabeth.

“We set off and caught up on our vacation stories - he’d been in Italy and Switzerland walking in the mountains with his wife. All went well until we got to talk about his email,” said Harry.

“How did you introduce the topic?” said Elizabeth.

“I just said how much I had appreciated his frankness and that it was good that we had a relationship where we could be honest with each other,” said Harry.

“He agreed with me and then apologised for having sent such a strongly worded email. He admitted that he was probably a bit burned out before his vacation - although he still felt the same way about the worth of values exercises in business,” said Harry.

“Good for him for apologising - but do you think he meant it?” asked Elizabeth.

“He definitely did - but he’d had a lot of time to think about what he was going to say to me so his feelings unravelled a bit as we walked on,” said Harry

“How so?” said Elizabeth

“I think he’d made the call to stick with his decision to refuse to participate in any way, so he took me through the logic of that in a much more coherent way than had been expressed in his email.” said Harry.

“And how did you respond?” said Elizabeth.

“Well I suppose I surprised him because normally when Bob sets out a possible course of action I usually suggest a tweak here, or an improvement there, and then give my approval. And that has usually been a success for us.

So, when I explained how important this was to me, but more significantly to the business, he was a bit taken aback.

And that’s what when he went on the offensive by saying that we needed to focus on the business rather than get distracted by something so peripheral.

I suppose Bob expected me to back down, but I listed the challenges facing the business, backed that up with the evidence and kept my cool.”

“I’m beginning to like the sound of this meeting,” said Elizabeth.

“Well Bob tried to counter that these figures were just a consequence of market conditions and that all we had to do was to step up the pace and urgency in the business.

I replied that we’d been trying that strategy for the last two years only for us to flatline on profits. I told him we needed to press the reset button.

That shook him a bit and he asked me straight out if that meant I wanted to replace him.” said Harry.

“My goodness he was shaken up,” said Elizabeth

“I don’t think I’d ever seen him so much on the back foot. Especially when I told him that that option had passed through my mind. But I explained how much I needed him by my side - especially if we were going to reshape the business and in so doing reshape our industry.” said Harry.

“Bob had fallen silent at that point, so I pressed on by describing how I wanted him to play a key role in the exercise by testing and challenging everything we do to ensure that it translates into something that leads to real and substantive value to the business - not just for appearances sake.

That idea seemed to appeal to him a bit more but then I emphasised that this wasn’t a licence destroy from within. I said it’s too easy to play the wrecker when you have no stake in the outcome - so I told him I expected him to bring a positive energy to the table.” said Harry.

“What did he say about that?” said Elizabeth

“He said he thought that I wanted him to be dishonest by pretending to be a supporter of the process to the rest of the business when he wasn’t. He said he prided himself on his integrity and that I was placing him in a compromising position.” said Harry.

“What did you say to that?” said Harry

“I went back to why we need to do this. Why it’s about a fundamental shift in how we will behave as a business in the marketplace. Then I pushed him that whatever we will come up with he will have played a part in designing and have ownership of the outcome.

He kept coming back to not being able to tell a lie. And that what I was asking him to do was morally unacceptable.” said Harry.

“That was a convenient defence. How did you dig him out of there?” asked Elizabeth

“I had expected Bob to come up with something like that. He often uses his integrity as a shield for refusing to do things he doesn’t agree with. I remembered how you and I had talked about the power of challenging passive aggressive behaviour by presenting irrefutable evidence that disables their mindset.” said Harry.

“That was one of our early conversations as I recall.” said Elizabeth.

“It was, but it had really stuck with me and it’s only recently that I’ve come to recognise some passive aggressive tendencies in Bob - especially in some of his dealings with me, the most obvious one being the justification for refusing to do something because it goes against his integrity.” said Harry

“Isn’t that a bit ironic given what he’s been saying about values?” said Elizabeth.

“Supremely, and I did say that to him, but he wasn’t really in any fit state to agree.” said Harry

“So, what did you do?” she asked.

‘Well I had it mind to I take him back to three occasions over the last five years where he has withheld information in order to sustain the business - which involved him not sharing his true feelings - without it apparently compromising his integrity.” said Harry.

“However, I decided against using all three as I thought that would have been an unnecessary put down. I remember you telling me that there’s no need to destroy people just because you can.” said Harry

“Well done’” said Elizabeth.

The example I selected was when we’d opened up an office in Washington to have more of a presence in the political arena. Bob had gone down there when it opened and had hosted a big charity fund raising event for politicians, bureaucrats and others in the Washington elite to coincide with our arrival. I’d gone down with Ruby for the night and we had been at Bob’s table with a couple of senators and their wives along with the editor of the Washington Post and the CEO of one of Washington’s biggest companies.

Bob had spent the night sitting beside him, while I’d been on the other side of the table. When Ruby and I got back up to our room she told me that she’d heard Bob talking to the CEO about our business and how we might have been able to help his company. Now I’d been uncomfortable about having the person at the table in the first place because one of our main clients was a competitor in the same industry and it was clearly a case of a conflict of interest.

I didn’t say any more about it until Bob brought it up a couple of weeks later and he told me that he’d met the CEO who was keen for us to help his business.

It was then that I’d had to bring up the point about integrity and that it would be impossible to take on the client due to the conflict of interest.

At the end of the day I’d had to direct him to drop he matter, but he’d countered that sometimes business needs have to take precedence over principles – especially if it means the survival of the company.” said Harry, who paused to check that Elizabeth was still following the story.

“He was obviously uncomfortable as it had touched a nerve, but he denied that he’d ever said that.

That’s when I took out a copy of the email that he’d sent me at the time and showed him where he’d made that case.” said Harry.

“My goodness Harry, that sounds like a checkmate moment!” said Elizabeth.

“It certainly removed any issue about what I was asking him to do being a challenge to his principles. But I followed up with the fact that I wanted him and I to present to the Board next week about our proposals for resetting our vision and values for the business and that he and I were going to work together to turn that into something which drove the company forwards over the next decade and beyond.

Of course, I’d already discussed this with Susan our chairman and she was fully onside with this approach.”

“How did he respond to all this?” asked Elizabeth

“That’s the great thing – by taking him on directly in the way I did, probably for the first time, I think I established a way of working that could prove to be exceptionally successful.” said Harry.

“I suppose the million-dollar question is whether or not you can trust him,” said Elizabeth.

“As I’ve said before I don’t think that’s in doubt – but what I’ve failed to do in the past is challenge his passive aggression that has allowed him to opt out if he didn’t like any particular course of action – especially when he selectively chooses to adopt the high moral ground.” said Harry.

“Well Harry, I think that’s a great description of active leadership. It really does sound like you’ve opened up a new way of working that has a real chance of working. Congratulations.” she said, as she began to clear away their untouched cups of Earl Gray tea.

“Just sit tight and I’ll make us a new pot,” she said as she went through to the kitchen leaving Harry to look out on the endless traffic going up and down Fifth Avenue.

As he stared out of the window he couldn’t help but wonder if he really had made the right decision.

WEEK 20

Wise leaders connect their past with their present and their future

Harry had made his way up to Elizabeth’s apartment fully prepared to brief her on the latest news about his dealings with Bob, so he was surprised when she said she didn’t want to talk about that today.

“You can bring me up to date on that in a few weeks, but I don’t want our Saturday morning chats just to become glorified “show and tell” sessions she said, in her typically calm and plain-spoken manner.

“What I am more interested in is which of your parents has had the most effect on who you are today?” she said.

As ever, she caught Harry off guard and he bought himself some time by responding with a question.

“Do you mean who am I most like?”

“No. I mean who had the most influence upon how you behave now,” she said.

Harry nodded and then took nearly a couple of minutes to think about Elizabeth’s question. He would have felt uncomfortable sitting in silence for as long in anyone else’s company but with Elizabeth he knew that the quality, rather than the immediacy of the response was more important.

Eventually he lifted his head and said,

“Obviously both my parents have had a huge influence on me but if I had to choose one it would have to be my dad,” he said.

“Are you really sure about that?”

“I think so. I always looked up to my father. He was a big

Don Ledingham. Ceannas: Leadership by Design © 2019 117 Harry and Elizabeth: A Leadership Conversation personality and people admired and respected him. When I used to have friends around to the house when I was a kid they always talked about meeting him.

My dad filled any room he entered as he had a great sense of fun and enjoyment.

When I go home to see my mum, who still lives in the same house, I meet people in the street who say how much I look like him and what a great man my dad had been.

I certainly wanted to be like him and I think it’s from him that I get my passion for work from,” he said.

“So you’re more like your father than your mother?” asked Elizabeth.

“Do you know I’ve never thought about it. He’s just been such a strong personality in my life,” said Harry.

“Did you always want to be like him?” said Elizabeth.

“It’s just that he’s been such a big figure,” said Harry.

“But are you like him?” asked Elizabeth.

“I like to think so,” he said.

“You’d like to think so – isn’t the same as you are like him. You haven’t mentioned your mother so far, what’s she like?” asked Elizabeth.

“Haven’t I? She’s just always been there for me,” said Harry.

She’s much quieter than my dad but she has a strong inner core running through her. In fact, she’s probably tougher than my dad,” said Harry.

“That’s interesting. So are you more like your dad in that respect?” asked Elizabeth.

“No – probably more like my mum,” said Harry – almost to his own surprise.

“Did you ever think of using your mother as a role model like you do for your dad?” asked Elizabeth.

“I think it’s difficult for a man to think of a woman as his role model?” said Harry.

“Really – I’m surprised to hear you say that.” she said.

“I think most sons – if they have a positive relationship with their father will associate them as their role model.” said Harry.

“So, can you think of three things about you that your mother might have been the major influence?” asked Elizabeth.

“Mmm, probably my sense of duty. As I told you she had been a teacher and I don’t think I ever saw her miss a day’s work in her life.” said Harry.

“And another?”

“I reckon I learned from her to reflect on things before I take action – my dad was much more impulsive,” said Harry.

“And your last,” said Elizabeth, pushing Harry along.

“Probably my drive and ambition. Dad was a man of the people and loved his job but didn’t have my determination to succeed. If he had there’s no limit as to what he might have achieved in his career. Mum never said anything but I’m sure she was frustrated by that,” said Harry.

“That seems like quite an impact she’s had upon you.” said Elizabeth.

“Gee, I’m a bit stunned by that – I’ve never thought about this before but when it comes out like that it certainly seems like I’ve

“You’re not alone. I used to ask many male chief executives that same question and almost without exception they would initially choose their fathers - who were often strong personalities in their own right. But on further analysis hadn’t had quite the impact that their mothers had on who they had turned out to be.” said Elizabeth.

“I don’t know quite what to say it’s as if this has been staring me in the face all my life and I’ve only just seen it. After all these years thinking I modelled myself on my dad I’m probably much more like my mum,” said Harry.

“From the man that I’ve come to know I think she’s been rather a good role model. But that’s enough of that. I want to know how Ruby is doing. We haven’t talked about her for weeks.” said Elizabeth.

They spent the rest of their time together catching up on what Harry and Ruby had been doing at home and how Harry’s kids were doing. Harry was really pleased to tell Elizabeth that his oldest daughter was expecting their first grandchild in December.

Just as Harry was about to leave the apartment Elizabeth held him gently by the arm and asked him to describe how things were going with Bob in one word.

“Better,” said Harry with a broad smile on his face as he stepped into the elevator.

WEEK 21 Leaders – First, do no harm “So, I answered your question last week about which of my parents had had the most influence upon me. Do you mind if I ask you which of your parents had the most effect on you?” said Harry, “That’s funny because I started thinking about that once you’d left. I suppose the easy answer would be that it would have to be father, given that my mom died when I was an infant,” said Elizabeth. “I’m sorry to hear that,” said Harry. “I’ve already spoken to you about the influence my father has had upon me in terms of stewardship and long-term thinking. But it got me to thinking that probably the more accurate answer would have been my husband Tony. Tony was seventeen years older than me and, in many ways, he provided me with the sort of advice and support that a father might. Tony was half Chinese and I don’t know if that had anything to do with it but he was probably the wisest man I ever met. He had that amazing ability to stand back and look at things from a variety of perspectives rather than simply rushing to judgement.” said Elizabeth. “So, is that the most important thing that you learned from him? I certainly see that in you,” said Harry. “I did learn a lot of that from Tony but my pop’s like that as well. The one thing I probably got Tony that has influenced who I am today is the idea of ‘doing no harm’,” said Elizabeth. “Is that from the Hippocratic oath?” asked Harry. “The physician must have two special objects in view with regard to disease, namely, to do good or to do no harm”. Elizabeth effortlessly recalled the phrase. “When you transfer this concept to business it presents two contrasting challenges that should inform the decision-making

Don Ledingham. Ceannas: Leadership by Design © 2019 121 Harry and Elizabeth: A Leadership Conversation process. Unfortunately, the reality is that such is the desire to take decisive action that little heed is given to the harm that might be a consequence of that decision.

Throughout my career I encountered leaders who caused much greater harm to the organisation that employed them than any good that might have come from their time in post.” said Elizabeth. “I can think of a few leaders I’ve worked for who caused much more harm than good,” said Harry. “What were they like?” asked Elizabeth. Harry paused and wondered to himself, firstly about the question that Elizabeth had posed but also how he had shifted from being the interrogator to the interrogated. “I suppose when I reflect on the people who did the most damage to organisations it was those who were only interested in the task at hand, i.e. ‘fix the problem’ regardless of any secondary consequences that might arise from that solution,” said Harry. “Can you give me an example?” asked Elizabeth. “I can think of quite a few people I’ve worked with over the years who fell into that category. They were typically motivated by personal success at any cost. Such leaders often progressed up the promotion channels through short term achievements but left very damaged people and places behind them as they made their way up the organisation.” said Harry. “You’ve made your way up organisations, what makes you different from the people you describe?” asked Elizabeth. “Perhaps I’m not the best person to ask? I’m sure there will be people who would say that I only did things for personal gain – but I like to think that I’ve always been concerned about the impact of my decisions beyond the immediate situation,” said Harry.

“So, you were aware of your ‘butterfly effect’,” observed Elizabeth. “Butterfly effect?” repeated Harry. “The ‘butterfly effect’ is the metaphorical example of a hurricane being influenced by the flapping wings of a distant butterfly several weeks earlier. In a similar fashion the small-unintended consequences of our behaviour can gradually accumulate until they reach a proportion that damages the organisation, and those who work there, to a point from which there is no return,” said Elizabeth. “I like that idea. I think I’ve always tried to look at my work like a weather system where one change here can set off another change there. I suppose that’s why I’m always looking for those unexpected interconnections,” said Harry. ‘Which takes us neatly back to the Hippocratic Oath.” said Elizabeth. “Back in the 1990s Tony was involved in helping to update his Medical School’s Oath. I remember him championing a phrase that still sticks in my mind: “I will remember that I do not treat a fever chart, a cancerous growth, but a sick human being, whose illness may affect the person’s family and economic stability. My responsibility includes these related problems, if I am to care adequately for the sick.” said Elizabeth. “I love that! If only leaders in my business could be encouraged to think like that rather than just fix the problem in front of them,” said Harry

“Throughout my career I came across wise leaders who could anticipate the potential unintended consequences and have the wisdom, when necessary, to decide that it is better not to do something, or even do nothing, than to risk causing more harm than good.” said Elizabeth.

“That challenges the idea of leaders being proactive decision makers – the idea of consciously taking no action would be a difficult one for most leaders, me included,” said Harry. “Of course, you’re right, and a reliance on doing nothing can become just as debilitating as a commitment to always take action, just as much as it would be for a doctor being asked to treat a patient,” said Elizabeth. “Nevertheless, leaders who can ask themselves the question – “will this action do any harm?” – will, in my experience, always outperform their counterparts who only look at the short-term gain. I suppose it was one of the defining qualities I looked for in leaders when I was investing my client’s hard-earned cash.” Their conversation then shifted on to Elizabeth describing a few of those wise leaders she had come across during her career. Harry really enjoyed hearing from Elizabeth about how other leaders in his position had handled themselves in challenging situations. As he got up to leave he asked, “Do you think we could speak about how things are going with Bob next week?” “Of course, we can. Especially after what we have been talking about this morning,” said Elizabeth giving him one of her most beatific smiles.

WEEK 22 Loyalty Is A Two-Way Street Harry settled onto the high stool in Elizabeth’s kitchen while she carefully prepared their tea. Jess tucked herself under his feet and immediately fell asleep.

“You love that dog, don’t you?” said Elizabeth.

“That’s an interesting word but I suppose I do,” said Harry.

“What is it about her that makes her so special?” asked Elizabeth. “I suppose like all dogs it’s the loyalty she shows to me,” said Harry.

“Loyalty?” said Elizabeth. “Dogs don’t judge you – they are there for you on an unconditional basis.” said Harry “Unconditional – now that’s another interesting word. What do you take it to mean?” asked Elizabeth. “Well it’s that idea of whatever the person does you won’t give up on them. I’ve always thought that’s how I treat my children.” said Harry and continued. “Jess is just the same with me – regardless of what I do she gives me her absolute and unqualified affection,” said Harry. “Have you ever come across the term unconditional positive regard? It was first coined back in the 50s by a psychologist called Carl Rogers, but it captures the same idea that positive regard shouldn’t be an earned status” said Elizabeth. “No, I haven’t heard of that, but I can follow the idea. When I was at school I remember one of my teachers who stood out because he treated us all with equal respect – even the ‘bad boys’” said Harry.

And do you think that idea has any place in the workplace?” asked Elizabeth, as she laid their tea out in front of them. “There she goes again. Just when I thought we were having a simple chat, thought Harry to himself. “Are we talking about loyalty or unconditional positive regard?” asked Harry. “Both – do you think it’s possible to have one without the other?” said Elizabeth. “Now let me think about that. Are you asking if its possible to be loyal without being treated with unconditional positive regard?” he asked. “In my experience the two go together much more than people think. Everyone seems to connect loyalty with the transactional part of work, if you do this then I’ll give you that. So, we reckon that pay, bonuses, and other benefits will be returned with worker loyalty.” said Elizabeth.

“I’d go along with that,” said Harry. “Do you really? said Elizabeth, fixing Harry with one of her inquisitorial looks. “So, you only treat your employees well on the basis of what they do for you. In other words, your ‘regard’ for them is conditional on what they do for you and the business?” said Elizabeth. “Well no, but our regard for them is explicitly shown through the remuneration process.” said Harry. “So, it is transactional. You pay them well, and you expect their loyalty and effort. Simple as that?” said Elizabeth.

“I didn’t say that” said Harry.

“But you implied it.” said Elizabeth.

Harry was getting a bit frustrated with Elizabeth’s circular argument but didn’t want to show it. “Put it this way. We need employees to allow us to carry out our business at scale. If we make a profit we can retain them and take on more employees. If we don’t make a profit then some of our employees will have to go,” said Harry.

“So profit comes first?” said Elizabeth.

“It has to,” said Harry. “So your employees are just part of the inventory on your books. To be accounted for as you would your capital assets?” said Elizabeth. “They are a necessary cost, but fundamental to our success.” said Harry.

“Now we’re getting somewhere,” said Elizabeth, continuing, “What would happen if you flipped that thinking around to them being fundamental to your success first, and a cost second? “

“I’m not sure I follow you,” said Harry. “What if you saw the value of loyal employees as being at the core of your business. Who in turn could generate and sustain loyal customers, which would then win your investors’ confidence that this was a business in which they could be long term partners?” said Elizabeth. “I would say that it sounds good in theory but that we are much more driven by the day to day reality of our accounts.” said Harry. “So, loyalty is a nice-to-have secondary outcome of a profitable business but not an essential?” said Elizabeth. “I didn’t say that. I believe that loyalty is critical. It’s just that it’s difficult to present it on our accounts in the same way as we can

Don Ledingham. Ceannas: Leadership by Design © 2019 127 Harry and Elizabeth: A Leadership Conversation reflect income and expenditure. It’s inevitable that it takes second place.” said Harry. “What was the name of that teacher you mentioned that treated you all with unconditional positive regard?” asked Elizabeth.

“Mr Shanks” replied Harry. ‘So, do you think he started off with an expectation that he would only teach those who wanted to learn – and disregard the rest? “said Elizabeth. “I can certainly think of many teachers who had that attitude but not Mr Shanks” said Harry.

“And how did people respond?” asked Elizabeth. “That was the amazing thing, so many of the kods who were turned off in other lessons loved being in his classroom – and don’t think he was a soft touch, he was a strict teacher – it was just that we all knew he cared for us as individuals” said Harry. “So, explain to me why that wouldn’t work in the workplace?” said Elizabeth. “Well, for a start, adults aren’t the same as a bunch of unruly kids” and as the words came out of his mouth Harry corrected himself,

“Well perhaps they are,” he laughed. “In so many of the long-term successful businesses that I invested in over the years one of the ever-recurring features was an ethos that saw the employees as being part of the family – and treated them accordingly” said Elizabeth. “But how did they deal with those employees who didn’t play the game?” asked Harry. “They dealt with them as the problems occurred, but the important thing was that they didn’t start off with the expectation that every one of their employees needed the same treatment as the singular bad apples. In that way they got the same kind of discretionary

“Mmm now you’ve got me thinking” said Harry and continued. “But I thought we were going to talk about Bob this week?” said Harry. “I think we just did” said Elizabeth as she gave Harry one of her inscrutable smiles.

WEEK 23

Trust is Like and Echo

Harry entered the building with the same sense of wonder that he had experienced nearly twenty-five years earlier when he had first visited the Guggenheim during a lunch hour and had ended up staying all afternoon in the remarkable building.

Elizabeth had called him earlier in the week and asked him to meet her here for the last day of the Alberto Giacometti Exhibition.

As he stepped beyond the low-ceilinged entrance the rotunda opened out and drew his eye up towards the glass dome seven stories above him. He took one look at the long queue waiting for the elevators and set off up the spiral ramp that gives the building it’s unique shape and atmosphere.

He made good progress and eventually reached the high gallery where he saw Elizabeth standing looking at a sculpture of a tall and elongated figure bent forwards as if walking into the wind.

“Isn’t he beautiful” said Elizabeth, without even looking up at Harry.

“Amazing” said Harry.

“This has always reminded me of my own father. He had that purposeful stride but was always connected to the ground. He was someone who could always be trusted to do what he said - unlike many people I’ve met in my life,” said Elizabeth.

“I’ve been thinking a lot about what we were talking about last week. Do you think loyalty is a consequence of trust?” asked Harry, as they started to walk down the white concrete spiral, pausing at sculptures as they went.

“Ah, the trust question,” said Elizabeth as if she had been expecting the topic to come up.

“And why do you think they are connected?” she asked Harry.

“Well if I can’t trust someone how can I show them any loyalty?” said Harry.

“But what does trust men to you?” she asked.

“Trust, is, as you suggested, if you say you’re going to do something and you can be relied upon to do it then you can be trusted,” said Harry.

“So, if a chief executive said that he was going to exploit his workers, and then he did, would you say that he was trustworthy?” said Elizabeth, wandering on to the next exhibit.

“Well he can be relied upon to behave in a particular way, so I suppose he could be said to trustworthy,” said Harry.

“But would you really use such a word to describe such behaviour – a leader who exploits his employees is ‘trustworthy’?” asked Elizabeth.

“No – I don’t suppose I would,” said Harry

“So, if reliability isn’t the singular definition of trust – what do you think is?” asked Elizabeth, moving on to another of Giacometti’s sculptures.

“I think reliability is important but perhaps it also has something to do with having a positive intention towards the other person?” suggested Harry.

“Now we’re getting somewhere. When my husband used to carry out cardiac surgery his patients trusted him because they believed that he cared about their welfare. But trust is more

Don Ledingham. Ceannas: Leadership by Design © 2019 131 Harry and Elizabeth: A Leadership Conversation than just reliability and caring – his patients trusted him because of his credibility. He had a series of qualifications from some of the world’s top universities and had a reputation as being one of New York’s top surgeons,” said Elizabeth.

“OK – so trust is a combination of reliability, having a positive outlook towards others, and credibility” said Harry as he reeled off the constituent elements.

“Even with all those characteristics it’s still not enough to be regarded as being trustworthy – there are a couple of other things missing. Can you think what they might be? asked Elizabeth.

“Geez, I thought reliability was enough – and you’re saying there’s more” said Harry.

“Let me put it this way – is it possible to be trustworthy in one field and untrustworthy in another?” asked Elisabeth.

“Well I suppose credibility is specific to singular activities – for example I don’t know if your husband was a climber but if he wasn’t then I wouldn't trust him to lead me up El Capitan in Yosemite” said Harry.

“Good,” said Elizabeth.

“Now you never met Tony, but he had the most remarkable bedside manner with people – and he made them feel completely safe in his hands. Can you appreciate that?” said Elizabeth.

“Oh, I’ve met plenty doctors and experts in my time who were exceptionally credible in terms of their competence but whose arrogance and ego undermined any semblance of trust – so yes I do see what you mean.” said Harry.

“It certainly connects to the idea of having positive intentions towards other people’s welfare but if it isn’t manifested in one’s behaviour then the extent to which one is trusted is seriously undermined” said Elizabeth, and continued,

“Do you know that doctors who are perceived to be ‘warm’ towards their patients are much less likely to be sued for malpractice than those who simply rely upon their dispassionate competence.” said Elizabeth.

“I can follow that” said Harry.

“Some call it intimacy rather than warmth – but it connects with the idea of a having a positive outlook towards the other person, rather than obvious and pre-dominant self-interest” said Elizabeth.

“Now you said there were another two things that needed to be present for trust to be manifested – so what is the last thing?” asked Harry.

“Quite simple really. I do not need to trust people unless I am making myself vulnerable to them in some way. For example, Tony’s patients staked the ultimate level of vulnerability – their own lives - when they trusted him. If I buy a bagel from a deli I make myself vulnerable to them in terms of my health and hygiene – but obviously not to the same level as Tony’s patients.” said Elizabeth.

“A bit like my climbing example – if my guide is holding the other end of the rope that I rely upon to save my life in the event of a fall – then I am required to place a high degree of trust in that other person – and the rope of course” said Harry.

“Absolutely” said Elizabeth as she wandered around another of the remarkable artworks, and mused aloud,

“Trust is a state of mind – not a behaviour – in the absence of vulnerability trust is not required. That’s why so many leaders find it so difficult to delegate – because they don’t want to place their vulnerability in the hands of others – so they do everything themselves.

“Do you think I’m like that? asked Harry.

“No. I genuinely don’t think you are like that. But I’m not so sure about those around you.” she said.

“Are we talking about Bob?” asked Harry.

“I don’t know Bob, but from what you’ve told me he has difficulty making himself vulnerable to others which leads him to try to control and manage everything – even you. Whereas you appear to trust him unequivocally. Am I right?” asked Elizabeth.

“You are correct - I do trust Bob. But I also recognise what you’re saying about him trying to control all variables which leads to more a command and control model of behaviour – although I’ve never thought about that extending to me,” said Harry.

“You see – last week we talked about the need for loyalty to go both ways. But I would argue that trust is the keystone of loyalty – so any absence of trust immediately undermines any sense of loyalty. IAs we’ve talked about before, ’ve always thought about trust being a bit like an echo – if you don’t give it – you can never get it back,” and with that she wandered off down the spiral and started to give Harry a one-to-one tutorial on the life and works of Giacometti.

WEEK 24

Making the Big Call

For the first time since he’d met Elizabeth, nearly six months earlier, Harry wasn’t looking forward to their Saturday morning conversation.

“Are you alright?” asked Elizabeth, as she picked up on Harry’s demeanour with her incredible sixth sense.

“Not really. It’s been a difficult week,” said Harry.

“Let me pour our tea,” said Elizabeth and she carefully completed their Saturday ritual, which had an immediate calming effect on Harry.

“I had to ask Bob to leave the company this week” said Harry without any preamble.

“That must have been very painful for you,” said Elizabeth.

“It was probably the most difficult thing I’ve ever had to do in my career,” said Harry.

“Bob was more than a colleague, he was a friend, Ruby and I were at all of his children’s christenings and he’s helped me through many hard times in the business,” said Harry.

“So, what happened?” asked Elizabeth.

“We had an Exec Team meeting on Tuesday with a single agenda item to discuss the poor sales figures for the last quarter, which were even worse than the previous quarter,” said Harry.

Elizabeth retained eye contact with Harry but didn’t venture to say anything.

“Bob was convinced that the solution lay in setting even more ambitious targets for our national and regional sales managers, and selectively removing all those managers who were in the lowest performing 10% to provide an incentive for those who remained to deliver on the new targets,” said Harry.

“And how did you respond?” asked Elizabeth.

“I listened to what others on the team had to say first. Our chief financial officer and chief investment officer both thought that Bob’s idea had some merit, although they didn’t like the costs associated with removing 10% of our managers. The rest of the team felt it would be like trying to squeeze more blood out of a stone – and that we needed to try something different.

When I came to speak I returned to two themes that you and I have talked about before – firstly, the need to release the creativity in the business to design new products, and secondly, the need to review and renew our culture towards one which is much more dependent upon trust, collaboration and engagement with our people, if we are going to survive in an ever-changing industry,” said Harry.

“I can imagine that Bob didn’t respond well to that – would I be right?” said Elizabeth.

“He accused me of going soft and that I was too detached from the sales team to know that they just needed a firmer hand – if he was allowed to deliver his strategy he felt we could turn things around” said Harry.

“And what went through your head in that moment?” asked Elizabeth.

“That’s the funny thing – I was able to almost stand outside myself and observe the situation before I spoke. I suppose our conversations have been helping me to ‘understand’ my behaviour – rather than just being a ‘slave’ to it” said Harry.

Elizabeth nodded but didn’t say anything.

“I called the meeting to a close and asked Bob to join me at the end of the day once I’d had a chance to think things through,” said Harry.

“When Bob turned up at my office he was surprised to see that Sarah, our Director of People, was also in the room. I invited him to join us and explained that I had spoken that afternoon with Susan, our Chairman, who in turn has phoned around some of the key non-executive board members. I explained that they had approved my decision that I should ask Bob for his immediate resignation given the level of strategic conflict,” said Harry, and continued,

“Bob didn’t say anything as I asked Sarah to set out the terms of his severance – which were much more generous than he might have expected were he to be dismissed. I then explained that he would be given immediate gardening leave and that he would be escorted from the building after our meeting.” said Harry.

“Did he respond at all?” asked Elizabeth.

“Not a word – I think he was in state of shock. He just hadn’t seen it coming. I suppose I’ve always just backed down in the past and deferred to him, but this just wasn’t going to happen this time – I’ve changed.” said Harry.

“Well Harry, what can I say?” said Elizabeth.

“I’d like to know if you think I’ve made the right decision?” said Harry.

“Harry, for what it’s worth, I think you have,” said Elizabeth.

“That means a lot to me – probably more than you can imagine,” said Harry.

“And what’s been the fallout from the decision”” asked Elizabeth

“That’s been the amazing thing – the entire Exec Team have all individually congratulated me on making the call, even the two who had supported Bob in the meeting. I don’t think I had fully realised how much power Bob had in the team – which wasn’t always for the best. Ironically, he played a lot on the close bond that he had with me, and people were scared to take him on thinking that he and I always were united on all issues,” said Harry.

“And how are you feeling now?” asked Elizabeth.

“I haven’t slept very well, and I feel very sad for Bob and for the impact that this will have in him and his family – not in a financial sense but through the fact that Bob defined himself through his work. Yet on the other hand I feel released from a burden I didn’t even know existed.” said Harry.

“And your fears?” said Elizabeth.

“Well that’s just the thing – I suppose I’ve put my own neck on the line with the Board – they’ve backed me but if we don’t show improvement in our sales in the short-term – never mind the

“So, what are you feeling the most – scared or excited? “asked Elizabeth.

“Excited – definitely excited” said Harry, as he got up and wandered over to examine a replica figurine of Giacometti’s Walking Man he’d never noticed before.

“It’s for you,” said Elizabeth, as she poured them another cup of tea,

“Just keep your head up and keep your feet on ground and you’ll deliver on your promise – I know you will.”

Week 25

Chief Innovation Officer?

Harry entered the apartment and handed Elizabeth a small, intricately wrapped parcel.

“This is for you, by way of thanks for everything you’ve done for me over the last few weeks” said Harry.

“Thank you, Harry” that is very kind of you.

Harry looked relieved and said:

“I had half expected you to refuse the gift”.

“I learned many years ago never to refuse a gift given with good intentions” said Elizabeth, as she carefully undid the bow and removed the wrapping paper. Neatly folding it and placing it on the table before opening the box.

“This is beautiful” she said, as she removed a classic single row pearl necklace with a yellow gold oval clasp.

“I’m so pleased, I had to travel to Scotland this week and I bought this in Edinburgh at Hamilton and Inches, which is one of Scotland’s oldest jewellers.” said Harry.

“I love it, a woman can never have too many pearls. Now let’s have our tea” she said, as she began to carefully pour each of them a cup of the scented Earl Grey tea.

“My journey home gave me a good chance to reflect on our conversations and also to think about how to take the business forwards after Bob’s departure” said Harry.

“And what were your conclusions?” asked Elizabeth.

“Obviously we’ve had to make a number of short term actions. I’ve split some of Bob’s responsibilities across three of the Exec team and stepped up Bob’s number two as an interim Director of Operations. But I’ve really been focusing on how we get some creative urgency into the business” said Harry.

“Creative urgency?” Elizabeth repeated his phrase.

“As I’ve said before we can’t afford to stand still and rest on our laurels. We need to keep developing new products and services if we are to maintain our position in the industry.” said Harry.

“How are you going to achieve that?” asked Elizabeth.

“I had a consultant in this week who was proposing the establishment of an Innovation Unit in the business. This would pull together some of the best and brightest people in our business with a six-month time frame to come up with a series of products and an associated sales and marketing strategy” said Harry.

“Do you think that will work?” said Elizabeth.

“To be honest I’m not sure - it gives the impression of positive action, but I’ve never been that much of a fan of special task groups within a business.” said Harry.

“Over my career I’ve seen a number of successful companies transition from being traditional and conservative organisations, to become renowned for their innovation” said Elizabeth.

“How did they achieve that?” asked Harry

“What your consultant is suggesting is a very common strategy, but it comes with some health warnings. There’s always a danger that everyone just leaves the unit to get on with it and doesn’t see innovation to be part of their day to day role. But perhaps the most dangerous consequence is that the unit takes on a life

Don Ledingham. Ceannas: Leadership by Design © 2019 141 Harry and Elizabeth: A Leadership Conversation of its own and is reluctant to let go of its emerging ideas until fully tested and perfected - which slows the process down to a snail’s pace” said Elizabeth.

“I can understand that - I was a bit like that earlier in my career when I wanted everything to work perfectly for fear of being associated with failure” said Harry.

“Of course, the other obstacle is that regardless of how good some of the ideas coming out of the unit might be there’s a resistance to implement from other managers as they have no stake or ownership of the idea” said Elizabeth.

“That’s where senior leaders have such an important role to play” said Harry.

“They do, but managers are experts at explaining why something wouldn’t work if they’ve set their mind against it” said Elizabeth.

“So how did those successful companies overcome this?” said Harry.

“As I said before, there needs to be an active and consistent approach towards supporting the innovation process that removes the obstacles and resistance that will be thrown up by managers whose status quo is being disrupted. The strategy needs to have clout, that is enough power to push the changes through. Aside from you - is there anyone else in your senior team that could champion this?” asked Elizabeth.

“That’s part of my problem - everyone is supportive but I’m not sure they really embody the approach I’m looking for.” said Harry.

“Could you bring in someone from outside?” asked Elizabeth.

“Funny you should mention that. I was just talking to our Chairman yesterday about a company we are interested in

Don Ledingham. Ceannas: Leadership by Design © 2019 142 Harry and Elizabeth: A Leadership Conversation buying. It’s based in Hong Kong and has grown from being a start up in the fintech space into having established quite a foothold in Asia” said Harry.

“And what about the people?” said Elizabeth.

“Now I think about it that’s probably the more interesting attraction. The founder and CEO is a young woman called Wei Chi. She studied in Hong Kong and did her masters at MIT before returning home to set up her business. I met her last year at a conference in Zurich where she had been speaking about her business. I like how she focussed on people and how she had created an environment where everyone’s ideas were valued and could be translated into practice - very quickly” said Harry.

“I like the sound of this woman” said Elizabeth.

“She would certainly shake up our team if she joined us.” said Harry.

“What would be the downside of bringing her on board?” asked Elizabeth.

“It’s not really a vote of confidence in our existing team and it closes the door on an internal recruit for this space,” said Harry.

“And do you have anyone ready to step up?” said Elizabeth

“Not really. I blame myself now. I hadn’t really appreciated how closed minded we had become under Bob’s delivery focused leadership. Everyone seems fixated on refining and streamlining existing processes and systems - instead of creating something that allows us to grow” said Harry.

“So there are no internal people. What about an external recruiting process?” asked Elizabeth.

“I’ve thought about that but I can’t help but I think we’ll just get round pegs for a round hole - I’m looking for someone to bring a bit of an edge - to challenge me and the business but from a point of view of having delivered across a business not just a particular silo.” said Harry.

“The Wei Chi alternative is sounding more and more attractive, and what could you offer her?” said Elizabeth

“I’d need to think about that I don’t want to recreate the Chief Operating Officer role - if I brought someone in I’d rather give them a wide ranging role to look at innovation across every aspect of the business rather than get locked into running operations.” said Harry.

“Have you thought about a Chief Innovation Officer?” suggested Elizabeth.

“I can’t say I have – what would such a role involve?” asked Harry.

“Where I’ve seen this done really well there are three key things the best people do, firstly, they champion the innovation process in the company and shift the culture to one where it is valued and supported; secondly, they encourage everyone to analyse and think about customer needs and come up with new commercial ideas to address these opportunities; and thirdly, they direct innovation funding to promising projects and shelter disruptive ideas from managers who are invested in the status quo.” said Elizabeth without so much as a pause.

“I like the sound of that I suppose, but doesn’t that run the same risk of everyone just abdicating responsibility for innovation to a single person instead of a group?” said Harry.

“Not if you give the person sufficient power to drive the change throughout the business.” said Elizabeth.

“Not sure about that, doesn’t that cut across other Exec team responsibilities?” said Harry.

“Harry, if I may, I think that’s exactly what you need at the moment. A change agent who works closely with you but disrupts the status quo - even to extent of breaking a few eggs.” said Elizabeth.

“I’m not uncomfortable with that idea” said Harry

“But are you ready to employ someone who might rattle your cage?” asked Elizabeth

“What do you mean? You know I’m up for challenge” said Harry

Elizabeth smiled and the said,

“Harry, I have grown to like and respect you but I have yet to meet any CEO who is really comfortable with someone in their team who becomes the principal catalyst for change - you would need to prepare yourself for some discomforting times.”

“Okay - that’s probably fair - but at least I’ve got you to keep me in check” said Harry laughing at the thought.

And with that Elizabeth carefully steered the conversation back to Harry’s trip to Scotland and the health of his mother who he had returned to visit.

WEEK 26

You’re not a fan of psychometric tests, are you?

Elizabeth sat watching the rain beat against the French windows while Harry was drying off Jess with an old towel in the hallway.

“What a morning!” he said as he followed Jess into the room.

“It’s the tail end of a hurricane” said Elizabeth.

“I’ve had quite enough hurricanes for one week” said Harry, as he sat down and took a sip of his tea.

“Do tell” said Elizabeth.

“The New York Times did a piece on Bob’s departure. It wasn’t too damaging, but it’s put the wind up the Board who want to accelerate the recruitment process” said Harry.

“So, where are you with that?” said Elizabeth.

“The Board want a more formal process and want psychometric testing done on the three people we’ve got in the frame” said Harry.

“Who are they?

“One is Wei Chi, who I mentioned last week. We’ve bought her company, but the Board want to interview her along with some other options” said Harry.

“Who are the other two?”

“One is the product design director of an insurance business, and the other is the digital director of a supermarket chain.” said Harry.

“And who do you prefer?” asked Elizabeth.

“I had dinner with both of the other candidates this week - good people, although I don’t think they’ll bring the same dynamic that Wei Chi might bring to the business.” said Harry.

“But what if she doesn’t pass the psychometrics” said Elizabeth.

“Elizabeth, you know very well that you don’t pass or fail a psychometric test”

“I know - but I’ve seen too many outstanding people rejected in my career because they didn’t fulfil a narrow view of leadership” said Elizabeth.

“I take it you’re not a fan of psychometric testing,”

“I think it adopts a reductionist view in that people are fixed into a single stereotype and are seen to have no capacity to change their behaviour.” said Elizabeth.

“So how do you go about categorising leaders?” said Harry.

“I think that’s the problem - categorising, stereotyping, pigeonholing are useful rubrics to allow us to make sense of a complex world - but ultimately they limit our viewpoint” said Elizabeth.

“I can understand that, but you haven’t explained how you go about differentiating between different types of leader” said Harry.

“Over my fifty years meeting leaders from every possible industry, culture and background I came up with seven different lenses that allowed me to better understand the leaders I met” said Elizabeth.

“But doesn’t that fall into the reductionist trap?” Asked Harry

“That’s exactly the difference - we are a complex combination of characteristics that are constantly shifting and adapting as we go through our lives” said Elizabeth.

“So tell me about these lenses?”

“When Tony was alive we spent years playing around with a range of alternative perspectives that represented the leaders we knew” said Elizabeth.

“So, it wasn’t based on a psychological foundation?” said Harry.

“Quite the opposite - we were interested in people’s behaviour - what we actually saw. Tony used to observe the surgeons and medics he worked with and I tested it against the leaders I came across in my day to day work” said Elizabeth.

“And what were these lenses?” Asked Harry.

“Well we avoided codes or symbols, colours or letters and went for very simple metaphors.” explained Elizabeth.

“Why was that?”

“Both Tony and I had a strong interest in English as students - despite both following more scientific routes in our studies. When Tony was teaching he used the power of metaphor to help

Don Ledingham. Ceannas: Leadership by Design © 2019 148 Harry and Elizabeth: A Leadership Conversation his students to appreciate the challenges they would face in surgery, and I seemed to adopt the same methodology when trying to explain our investment strategy to clients.” said Elizabeth

“So, what’s the big thing about metaphor?” asked Harry.

“If you go back through history you can follow the use of metaphor to share complex concepts. Religion, philosophy, law and science all relied upon metaphor as a means of transferring knowledge. The thing about metaphor is that it is easily carried around. It’s portable. But more than that it allows two people to share an understanding of something without getting lost in the argument about details” said Elizabeth.

“How so?”

“If I try to explain a complex concept to you in great detail we might agree in broad principles, but you will inevitably find some problem in the detail of my description and so we zero in on that and ultimately disagree. Whereas if I described something as a metaphor, such as, this is like that - then we can agree in that broad likeness which matches 95% of the appreciation- but don’t get hung up in the remaining 5% where the detail lies.” Said Elizabeth.

“I’m still with you.” said Harry

“Over the years we started to see seven broad areas that all leaders needed to address, albeit that they might default towards some characteristics more than others depending on their role.

The first of these is the Sculptor - this is about creativity, inventiveness, intuition and comfort with uncertainty.

Interestingly I found that many leaders squeezed this out at they moved up the ladder of responsibility - but that’s not to say they couldn’t adopt a creative perspective if they wanted to.” said Elizabeth.

“Are you suggesting we are much more the product of our environment than our personality?” said Harry.

“Well some might argue that personality is a consequence of childhood environment, but I would say that our leadership behaviour is much more influenced by experience, influences and context than it is by our personality - in other words we don’t need to be slaves to our personality” said Elizabeth.

“But what about introversion and extroversion- surely you’d go along with that?” Said Harry.

“I’d agree that there are people who enjoy social interaction more than others, but when it comes to the work environment I think you can adapt your behaviour” said Elizabeth.

“Can you give me an example?”

“Actually, I can. Tony was possibly the most introverted and socially uncomfortable man I’d ever met. But put him in a teaching or doctor/patient environment and he was transformed. The difference was that he knew he had to change or it would interfere with the relationship he needed to have with students or patients in order to do his job” said Elizabeth.

“That’s really interesting. I keep coming across people who excuse their own or others’ behaviour by simply saying that they are a ‘victim’ of their personality. Just the other day I had someone say to me “oh don’t mind him he’s a whatever on the Myers Briggs scale and can’t help himself” said Harry

“Precisely, so the second lens we came up with was the Scientist. Which was probably something which covered both Tony and myself given our facility for science and numbers. Yet the important thing here is not to see the lenses exclusive from one another or in competition. It’s possible to be a scientist and a sculptor - in fact Isaac Asimov described imagination to be the rocket fuel of science’” said Elizabeth.

“So, you are suggesting that it’s much more a mix and match, than one or another?” Said Harry.

“That is exactly what I’m saying. To use another metaphor - have you ever gone to the opticians where they interchange the lenses?”

“Yes - in fact I was at the opticians just last week where that happened” said Harry

“Well that’s what I think happens with great leaders. They aren’t trapped by a singular lens but can look at things through multiple perspectives and select the most appropriate behaviour” said Elizabeth.

“And the other lenses?”

“The third is the Builder - which requires planning, sequential activity, management of resources and delivery. Some people talk about completer/finishers, but I like to think of my pop who took great care over all of these aspects in the preparation phase - whereas I know some people who complete at all costs but leave chaos behind them” said Elizabeth.

“Okay, that’s three - what’s next?”

“The fourth is the Gardener. We had originally used the farmer, but we reckoned the Gardener was more inclusive - despite the fact that so few of us have gardens nowadays”

“And what does a Gardener do? Although I can probably guess.” said Harry.

“There’s an ancient Greek proverb that goes something along the lines of “A society grows great when old men plant trees in whose shade they know they shall never sit.” The Gardener is always taking the long-term view. It connects with what we talked about a few months ago about the leader being a steward and looking towards deferred reward – event if it’s not for the leader themselves.” said Elizabeth.

“That certainly appeals to me” said Harry.

“You are a natural Gardener. The Gardener also sees the big picture and how things will come together over time and perhaps appropriately - given what’s happened with Bob - they can make the brave decision to remove things that are preventing growth elsewhere in the garden” said Elizabeth.

“And what’s next?” asked Harry.

“I think that will appeal to you as well. It’s the Parent. The Parent protects, supports and role models – and, of course – as we talked about a few weeks ago ‘unconditional positive regard’.” said Elizabeth.

“But isn’t that a bit patronising - treating people as children?” asked Harry.

“Remember this is a metaphor for a particular form of leadership behaviour, but you do introduce an interesting point. If a leader relies too heavily on any of the lenses - you can turn an asset into a weakness. Think of the leader who over-parents, by smothering their employees with attention and wrapping them in cotton wool to the extent that they never build any resilience or capacity to make decisions for themselves - I think the modern term is ‘helicopter parenting” said Elizabeth.

“I can think of a few leaders I’ve worked with who fall into that description” said Harry,

“The next lens is the Conductor. This was influenced by our relationship with Sir Colin Davies who told us that when he took the platform he had to remind himself that he was no more important than any of the individual musicians in front of him but that they needed him to bring them together by being an active leader. He couldn’t conduct from behind the orchestra - he needed to be up front and in the public eye. More than that he needed to draw out the very best from each individual and bring that together into a harmonised whole that connected to his vision for the piece” said Elizabeth.

“So, I’m a conductor?” said Harry.

“I’d say you were a Conductor, but in recent years you’ve probably let it diminish as you allowed Bob to take more of a lead role in the business as you worked with the Board and investors” said Elizabeth.

“Ouch! Now by my reckoning that is six lenses - Sculptor; Scientist; Builder; Gardener; Parent; and Conductor - what’s the last?” asked Harry.

“The last lens is that of the Villager. This is someone who likes belonging to and creating a sense of community. They are cooperative and willing to do things for others without necessarily looking for an immediate return, underpinned by a sense of duty to their community” said Elizabeth.

“I guess my dad would have been a Villager - in fact probably too much of a Villager for his own good” said Harry.

“You’re getting the idea” said Elizabeth.

“So tell me what you see in me - in the here and now” said Harry.

“Well I see a very strong Gardener who has an eye on the future - rather than being trapped in the here and now. I see a Scientist who is acutely aware of the data and the numbers in the business and I see a Villager and a Parent who cares for individuals and the community he serves. And as I’ve already said you are a Conductor. The other lenses - Sculptor and Builder don’t play a significant current role in your leadership but that’s not to say the couldn’t” said Elizabeth.

“And in the six months you’ve known me how do you think I should change?” asked Harry.

“I actually don’t think you need to change much - as we’ve already noted you perhaps need to adopt a more high-profile conductor role in the current environment but if you get the right person you can step back from that in time. I also think a focus on bringing up the Builder would help you to establish clear and unambiguous plans. You intend you bring someone in with Sculptor assets so you don’t need to personally bring that to the table.”

“I like this. What did you and Tony call the lenses?” said Harry.

“We called them the seven sides of leadership” said Elizabeth.

“I’ve been thinking. Could I ask you to meet Wei Chi next Saturday morning? She’s meeting the Board the following week but I’d like your personal view as to whether or not she and I could work productively together. I’d like to know if her leadership profile would complement mine?” said Harry.

“It would be my privilege” said Elizabeth as she quietly refilled their cups.

WEEK 27

Leading Innovation

“Hello Elizabeth, it’s Harry here, how did your morning go with Wei Chi?” said Harry.

“I was wondering when you’d call. She’s just left. We sent out for Sushi and she joined me for lunch. A quite remarkable young woman” said Elizabeth.

“I’m glad you liked her. So what do you think? Would she and I work well together?” asked Harry.

“I don’t think I’ve ever come across someone who combines such an analytical mind with such a willingness to try out new ideas and translate them into successful business propositions” said Elizabeth.

“The innovative part doesn’t surprise me – given her reputation - but I am surprised by her analytical side” asked Harry.

“We make an assumption – reinforced by psychometric testing – that analysts are quiet, reserved people who are at their happiest tackling an obscure methodical task and not necessarily interested in translating their findings into practical action” said Elizabeth.

“I’m afraid I’d have to plead guilty to that assumption” said Harry.

“Which in some way goes to prove my point about what we were talking about last week. It is possible to inhabit two seemingly separate behavioural worlds without contradiction” said Elizabeth.

“But aren’t analysts more like advisers who leave it up to others to make decisions. We have analysts and they provide information to us because we don’t have time to dedicate to the analytical process?” said Harry.

“That’s interesting, and it perhaps explains why innovation isn’t as central to your business as you’d like it to be” said Elizabeth.

“How so?” said Harry.

“Did you know that the Latin root of ‘analyse’ is actually means to break up or loosen. Whereas we often take it to mean the opposite, which is to make things more absolute, we ask analysts to come up with conclusive findings which can allow us to take definitive action – that’s why I much preferred to conduct my own research” said Elizabeth.

“Is that what Wei Chi does?” asked Harry.

”She does, but she’s driven by a deep curiosity to understand rather than just to know” said Elizabeth.

“What’s the difference” said Harry

“Many leaders like to know things because it gives them confidence and power - you know “scientia potentia est” said Elizabeth.

“Sorry Elizabeth, you’ve lost me there?”

“’Knowledge is power’ – one of the problems in traditional organisations is that that people like to keep knowledge to themselves – especially as they move up the ladder, and that the sharing of such knowledge is then cascaded down the hierarchy of business giving each rung on the ladder the opportunity to reassert their place in the organisation.” said Elizabeth.

“So what’s different about Wei Chi?”

“She exemplifies and encourages a form of curiosity that is based upon a desire to experiment with new approaches that are based upon a determination to better meet the needs of customers – rather than meet the needs of the organisation” said Elizabeth.

“But we have always had a customer focus in our business” said Harry

“By your own admission you have relied upon your core products that were the foundation of your reputation – but the market is changing, and your product offering isn’t. I’d say your focus has been internal rather external” said Elizabeth.

“But what is she doing differently?”

“She encourages everyone in her business to constantly look at issues from multiple perspectives and then experiment with new approaches. I can imagine how her courageous approach gives others confidence to seize opportunities that in your business would be lost in the bureaucratic maze of corporate culture” said Elizabeth.

“But how does she manage the risks that come with such an approach?” asked Harry.

“She sees risk management to be everyone’s responsibility but doesn’t use it as a blocker to innovation. She has managed to integrate innovation into her strategic management agenda – where innovation is encouraged, managed, tracked and measured” said Elizabeth.

“Measuring innovation?”

“Yes, I was interested in that too. She explained how most businesses reward short term performance – which inevitably inhibits innovation which might take a longer time to bear fruit. She holds leaders accountable for innovation and was able to describe how that has made such a difference” said Elizabeth.

“But what kind of metrics does she use?”

“She set a target for the business that 25% of annual revenue should come from new products – in that way her company was continually renewing itself every four years” said Elizabeth.

“There’s no doubt that 25% would be a game changer for us – we’d be lucky if that figure was 5% in our business. But how does she support that process?” said Harry.

“She also explained that she created flexible networks in her business that brought people together with different kinds of knowledge and ways of tackling problems – as opposed to launching large scale innovation projects, in her words it’s the opposite of the bureaucratic, slow moving, inefficient and stressful model that characterises traditional organisations.”

“But how has she overcome people’s bias towards the status quo” asked Harry.

“She talked about the paradox of leadership where middle managers, who can often have the most negative attitude towards innovation are often the most sought after for advice about it.”

“Why would they be against innovation?” asked Harry

“Oh Harry, do you really have to ask that? Think about what they stand to lose if an innovation goes wrong. Bonus, status – even their jobs. They might not admit it, but most middle managers have an inability to balance new ideas with current priorities – they’re not leaders – they’re supervisors - and supervisors don’t take risks, they deliver the job, accurately, to the present specifications – no more no less” said Elizabeth with some force.

“So, your saying that many middle managers are a blockers not innovators”

“Exactly, and they create – implicitly through the remuneration system of the business - a bottleneck to the flow of new ideas and open sharing of knowledge” said Elizabeth.

“And how had Wei Chi overcome this. Has she just got rid of people?” asked Harry.

“No she hasn’t. Of course it’s always easier to get the right people in place when you grow from being a startup but even there you don’t always get it right. She puts it down to establishing the conditions for a vibrant network. She conducted a piece of analysis in her business where she identified how low performing

Don Ledingham. Ceannas: Leadership by Design © 2019 159 Harry and Elizabeth: A Leadership Conversation units had a leader who controlled interactions and had a negative mindset – she used that knowledge to stipulate that project groups don’t have chairs or leaders but a collective responsibility to deliver. It seems to have had a remarkable impact on the productive innovation process.” explained Elizabeth.

“So how do you think she’ll fit in to our company?” asked Harry.

“I think you’ve got the question the wrong way around. How will your business fit in with Wei Chi?”

“What do you mean?” said Harry.

“I mean what alternatives have you got. You know that remaining with the current way of operating will result in a gradual diminution in your market share. You know that market entrants are coming up with more innovative products and services. You know that the Board are expecting you to lead a shift in culture. If not someone like Wei Chi then who is going to bring about that change? – you certainly can’t do it on your own.”

“So if we did appoint her what advice would you have for me?” asked Harry.

“Let me be very honest with you Harry - and I’d prefer to be saying this face to face rather than over the phone – I think you’re going to find it very difficult. Not impossible, but certainly very difficult”

“Why do you say that – you know I want us to change” said Harry.

“I know that, and I do believe you. But we are all capable of deluding ourselves on occasion. If she joins your business she is going to upset people – and sometimes even upset you. She will challenge you openly – it’s part of who she is. She will test your willingness to trust and empower – which I know you want to, but it will stretch your traditional idea of what it is to be a chief executive. And finally. She will need your support – your unconditional support. The best way I can think of it is to use the analogy of ‘air cover’. I’ve never subscribed to leadership as

Don Ledingham. Ceannas: Leadership by Design © 2019 160 Harry and Elizabeth: A Leadership Conversation warfare but she’s going to fight a battle on your behalf; she is going to get into the trenches and she’s going to engage in hand to hand combat. You need to be there for her, supporting her, tending to her wounds and constantly encouraging and backing her up. That’s not to say you can’t’ offer advice and even challenge her – but when it comes to everyone else in the business there can’t appear to be a hair’s breadth between the two of you.” said Elizabeth.

“And so to the $64,000 dollar question do you think the two of us can work together?”

“I’ve been thinking about that all morning – and I would have to say yes. In fact I think it could be one of the most exciting things that you’ve evert taken on in your career – you just need to be prepared.” said Elizabeth

“Thank you for your candour and frankness – I can’t tell you how much I value it. The Board are interviewing the three candidates on Wednesday. I’ll let you know how it goes.” Said Harry

“Let’s leave it until next Saturday - I’d rather see you in person”

WEEK 28

A Leader’s Vision

Harry had taken the longer loop to Elizabeth’s that morning just to give himself a bit more time to gather his thoughts. He’d walked into Central Park and had headed for Cedar Hill where he could let Jess off the leash to run free with a few other dogs.

He’d then headed for Fifth Avenue and talked to Nelson the doorman before heading up to her apartment.

As he travelled up in the elevator he realised – once again – how much he valued these conversations and the chance to step outside other people’s expectations that came with being the CEO of a major corporation.

As ever Elizabeth welcomed him with a Gallic embrace before settling him in the living room and going to fetch their tea. Unusually for Elizabeth, she was wearing a black dress and pearl necklace that he’d brought her back from Scotland, but even in this she maintained her elegance.

“I’m going to a funeral this afternoon” she explained, and continued,

“I seem to spend too much of my time attending funeral’s these days.”

“Was it someone close?”

“Not really, he had been one of Tony’s close colleagues, so I feel obliged to attend on Tony’s behalf.” she said.

“I’m sure he would have appreciated it” said Harry, and wondered out loud,

“Isn’t it strange how we continue to feel obligations to those who are no longer here”.

“Especially to those who did so much for us” said Elizabeth.

“That’s kind of chimes with what I’ve been struggling with this week” said Harry

“How so”

“Well you’ve been very patient asking about the outcome of the interview process” said Harry.

“I know you’ll get there in your own time”

“Well the Board were unanimous in agreeing that they want to appoint Wei Chi” said Harry.

“That doesn’t surprise me. So, what’s the worry?”

“I had a day with Susan, our chairman on Thursday. I flew up to her place in the Hamptons on Wednesday evening and we spent the following day together. The Board think that Wei Chi and I will make a great team and they see her as a potential successor to me – albeit she lacks the necessary large corporation experience – but that’s something for me to work on.” said Harry.

“That’s seems reasonable – I don’t see a problem with that.”

“There isn’t. But Susan and the Board want to meet with me next week to discuss my vision for the company over the next two years” said Harry.

“That’s not a problem. From my perspective you have a clear idea of how you want the business to shift from being a cold, inflexible, machine-like organisation into one which is dedicated to innovating to better meet the needs of your customers” said Elizabeth.

“There you go. That’s why I like seeing you. That’s exactly what I want to do but how do I capture that in a concise vision statement – without falling into the trap of the cliched and trite phrases?” said Harry.

“If you don’t mind you are starting to sound a bit like Bob – if you don’t believe in vision statements then what chance have the rest of the business?” said Elizabeth.

“So, you tell me – why do I need to have a vision?” said Harry.

“Well if you’re asking me I would say that the simple answer is ‘discretionary effort’”

“Discretionary effort – can you explain that for me” said Harry.

“Most people come into work and – as we have discussed before - are principled enough to honour their side of the transactional bargain. That is they will give you an honest day’s work for an honest day’s pay.”

“Yes I recall that – although I think we said that values impacted upon that” said Harry.

“We did but let’s keep our focus on Vision. Which for me is simply what is the thing – other than money – that’s going to get people out of their beds in the morning. Where are you going? – and how are you going to get there?” said Elizabeth.

“Do you really think that can make such a difference?” said Harry.

“Harry, I don’t think. I’ve seen it. I’ve touched it. And I’ve seen how an inspiring vision can transform people where they give effort way above anything that might be contained in their job description. But they were led, and they believed in the value of the vision and how it connected to their own life goals.”

“Come on Elizabeth. Do you really think people are motivated by the vision contained in the front page of a corporate plan?” said Harry

“Of course not. But they are inspired when they hear their leader describe a vision of the future that motivates them give more than they might otherwise – that’s the definition of discretionary effort.

It might seem a bit cliched – but Shakespeare’s account of the Battle of Agincourt captures the essence of an inspiring vision that is connected to a credible and achievable plan – it’s the former that’s often missing from modern vision statements. You’re fortunate, you do have a plan, its credible and its achievable – but only if your people get behind it.” said Elizabeth

“Tell me more – I wasn’t a fan of Shakespeare at school.”

“Obviously the words were Shakespeare’s but they are based upon what actually happened. Henry V is the story of a leader who unites his people around a common vision, overcoming

Don Ledingham. Ceannas: Leadership by Design © 2019 165 Harry and Elizabeth: A Leadership Conversation many obstacles in his path on his way to achieving a remarkable victory against significant odds.”

“I can associate with that” said Harry.

“Not only that but he was innovating how to do battle – and go against the traditional medieval way to conduct war, which was to have knights in armour and large numbers of infantry men. Henry decided to change that by having up to 80% of his army as longbow archers – instead of the standard 20%”

“Faster, lighter and more accurate – just like we want to become” said Harry

“You could say that – although I don’t want you to stretch the analogy too far. However, and this is perhaps where it is more like what you’re going to be facing, it flew in the face of what people were comfortable with. No one had won a battle before with such a plan. His challenge was to get his men to believe in it” said Elizabeth.

“And how did he do that?”

“King Charles VI had remained in Paris and left his army under the command of his nobles. Henry decided that his troops needed a visible leader – who communicated his vision with passion and belief. The night before the battle he wandered around the campfires and listened to his men and as he did he formed his decisive message which was to stand and fight together – if they were prepared to die in battle, so was he,” said Elizabeth

“So, he had the ultimate skin in the game” said Harry

“Absolutely. And it’s on this fact that Shakespeare created one of the literature’s most famous speeches, which started with the famous words:

Once more unto the breach, dear friends, once more; Or close the wall up with our English dead. In peace there's nothing so becomes a man As modest stillness and humility:

And concluded,

I see you stand like greyhounds in the slips, Straining upon the start. The game's afoot: Follow your spirit, and upon this charge Cry 'God for Harry, England, and Saint George!'” said Elizabeth, recalling the words without any apparent effort

“Now I think about it I think I watched Laurence Olivier in a film and it’s the only part I remember” said Harry

“Shakespeare had the king closely follow the rules of persuasion: Be credible, communicate shared benefits, and use vivid language for impact. Today, many bosses try to keep the positive spin on things. The fact is people in the field know how bad it is long before you do.” said Elizabeth.

“And do you think I can do that?” asked Harry.

“I do, but you need to articulate your vision so that everyone understands it and gets behind it and then you need to live it out day by day with all of your employees. So come on tell me what’s your vision? Where are you taking your people?” said Elizabeth.

Harry paused, stood up, and looked out of the window over Central Park.

“I want us to come up with solutions to our customers problems before they’re even aware of the problems themselves” said Harry.

“That’s good but what is your desired end state? What does success look like for the business? Are you going to be the best in the world?”

“I want us to be recognised to be at the leading edge of the Fintech Industry and that others look to copy everything we do” said Harry.

“I like that – and how are you going to differentiate yourselves from the competition?” said Elizabeth.

Once again Harry paused and thought as he looked out of the window – which he hadn’t taken his eyes off since he’d stood up.

“We’re going to do it together. We’re going to follow Henry V’s example and we’re going to be a truly collaborative company where leaders and workers share in the success and failure of the business” said Harry – almost triumphantly.

“There’s a lot to work on there but from what I’ve just heard you have enough there to create a truly inspirational and achievable vision. It had the key three building blocks I look for in a business’s vision. It describes a desired end state; it sets out the key differentiating feature of your business, and finally it sets out what the output is, that is what your customers are going to get out of it. Do you think that’s going to help you get ready for the Board next week?” asked Elizabeth.

“Elizabeth, I just wish I was walking out of here and meeting them right now.” said Harry, as he sat back down and smiled broadly at Elizabeth for the first time that morning.

WEEK 29

Mission Command and Commander’s Intent

Dear Harry

I meant to say to you that I won’t be able to see you this Saturday as I will have an old friend visiting from Paris.

As ever, I enjoyed our conversation about the challenges you face in your business. For what it’s worth I’m convinced that you are on the right track to lead your company into a new and successful chapter of growth and success.

However, our discussion about a leader’s vision and reference to Henry V’s Battle of Agincourt took me back to a piece I once wrote for the Wall Street Journal about the kind of leadership I look for in successful organisations. After you left I searched around in my files and found an old copy of the paper.

I won’t copy it verbatim here, but I think the core of the piece might help you, as you begin to set out the approach you want to take with your senior colleagues and other leaders in the business – especially as you set Wei Chi free to drive the innovation process.

It’s common for leaders nowadays to talk about empowerment and the need to delegate decision-making to leaders – rather than them having to take all of the leadership decisions themselves. What I found fascinating was that I met so many leaders who aspired to such a culture but were so clueless as to how they might go about translating that ambition into reality.

Anyway – enough of that – for the focus of my piece was on what is known as ‘Mission Command’. Now it might seem surprising to you, given my aforesaid aversion to seeing business as warfare, but I borrowed the concept from Hank, my younger brother, who had been a colonel in the Marine Corps.

During our respective careers he and I used to argue about the difference between leading in the armed forces and leading in a business environment. However, as we got older we came to understand that although both situations are quite different they are probably more similar than people might imagine.

It was he who first introduced me to the idea of ‘mission command’ – which had originally come from the Prussian army commanders in the Napoleonic wars. The idea was basically that if everyone knew and understood the overall battle philosophy and were then freed up to make independent decisions as long as they were in line with that philosophy.

I have to admit that this challenged my rather narrow view of what I perceived to be the default ‘command and control’ model of military leadership.

The essence of ‘mission command’ – as I have come to know it - is that the troops clearly understand what their mission is, but they also understand the greater purpose of the task. This is key because it enables commanders on the ground to use initiative and be flexible if/when the plan begins to wobble (“no plan survives contact with the enemy” and all that!)

Listen to me – don’t I sound such an expert! Anyway the example that Hank used has stuck in my mind , where a mission was to destroy the enemy at Grid 1234 in order to take hill ABC – if the enemy was too strong or if the commander on the ground saw a route to the top of the hill that avoided contact with the enemy, then he could adjust his operation and not engage the enemy, but by-pass them and still take the hill.

The problem I always had with such an example was that non- military leaders don’t set out to ‘destroy’ anything (at least not deliberately), ergo the example fails at the first hurdle. However, after many such arguments with Hank – I got over that and began to see that many of the successful leaders I saw in business

Of course, those of us outside the military have a problem with the words commander and enemy – which again sets up resistance and objection towards translating one world into the other.

For the purposes of my article I replaced words like commander with leader, and enemy with business environment. From a technical perspective ‘mission command’ was defined by the military as the exercise of authority and direction by the leader to enable ‘disciplined initiative’ to sanction agile and adaptive leaders in the conduct of military operations.

For me, this translates perfectly into the business world where I saw great leaders capitalise on their people’s ability to take action to achieve the desired end state.

I’ve always liked this idea of agile and adaptive leaders who use their initiative when it comes to deciding upon which actions to take. They accept they will often have to act despite significant gaps in their understanding.

If I contrast that with leaders who want every decision to flow through them, then I see monolithic, slow and eventually declining organisations who can only move as fast as the leader (which is never fast enough).

At the core of ‘mission command’ are four principles:

• Build cohesive teams through mutual trust. • shared understanding. • disciplined initiative. • leader’s intent.

Mutual Trust

You and I have talked a lot about the need for mutual trust but I came to appreciate from Hank that soldiers need to see ‘values in action’ before they come to trust their leaders. I suppose I naively thought that army leadership was just about issuing orders – but my brother explained, that even more so than in civilian life, that two-way trust is a foundation for mission command.

I think this is where you have a great advantage over other leaders in that you have accumulated a huge degree of trust right across your organisation that will allow you to translate ‘mission command’ into action.

Shared Understanding

The second element of ‘mission command’ is the idea of creating a shared understanding of the operational environment, the operation’s purpose, problems, and approaches to solving them.

I know this probably sounds self-evident to you but throughout my career I constantly came across leaders who failed to share their view of the strategic landscape with their colleagues. In a perverse irony they rejected any idea of a command and control methodology, yet their abject failure to engage with their people to create a shared appreciation of the environment led them to issue edicts that people neither owned nor understood.

Disciplined Initiative

At the core of Mission Command is the concept of disciplined initiative. Once again, my own unconscious bias against the military model of leadership led me to believe that military

Don Ledingham. Ceannas: Leadership by Design © 2019 172 Harry and Elizabeth: A Leadership Conversation leaders depended upon the fact that subordinates are ‘obligated’ to follow their lawful orders – whereas in many organisations leaders have to persuade and win over people to get them to follow their directions.

Hank explained to me how leaders who exercise disciplined initiative create opportunity by enabling action in the absence of orders, when existing orders no longer fit the situation, or when unforeseen opportunities or threats arise.

The beauty of Disciplined Initiative is that it frees up leaders to focus on higher value tasks and decisions – as opposed to trying to micromanage every situation.

Many leaders aspire to such a culture but all too often they fail to define the limits within which supporting leaders may exercise initiative. Without such limits these leaders don’t have the confidence to apply their judgment in ambiguous situations because they don’t know the mission’s purpose, key tasks, and desired end state – which leads us to the final element of Mission Command – the Leader’s (Commander’s) Intent.

Leader’s (Commander’s) Intent

The Leader’s intent is a clear and concise expression of the purpose of the operation that provides focus to the staff, and helps supporting leaders act to achieve the desired results without further orders, even when operation don’t unfold as planned.

The higher leader’s intent provides the basis for unity of effort throughout the organisation. Each subsequent leader’s intent nests within the higher leader’s intent.

I do believe that this is an area you can build upon from what you were describing last week. What is your intent? Does everyone in the organisation know and understand their role in allowing that goal to be achieved? Do they know the boundaries that should govern their own decision making and behaviour?

I believe you need to be able to capture your intent in no more than five sentences that everyone can understand and get behind. You made a great start last week but keep in mind the clarity that would be required in a military situation.

I look forward to seeing you and Jess in a couple of weeks, but meantime please bear in mind the words of General George S. Patton:

“Never tell people how to do things. Tell them what to do and they will surprise you with their ingenuity.”

With all my best wishes

Elizabeth

WEEK 30

Leadership Sincerity

Harry settled down into Elizabeth's sofa while she set their tea down on the wide ottoman table in front the fireplace.

“Thank you so much for your email. It arrived a couple of days before I spoke to the Board. I didn’t make any reference to Mission Command or Commander’s Intent, but I used the overall concept to frame my vision for the future of the business” said Harry

“I’m so glad it helped. And how did it go with the Board?” said Elizabeth, pouring their tea in her timeless fashion.

“Probably much better than I expected. I don’t think I fully realised how much personal support I have within the Board. It was as if they’ve been waiting for me to talk more about my vision, rather than the standard reporting back on performance, targets and strategic delivery.” said Harry.

“That’s very good to hear. What were they saying after you’d spoken?”

“They all talked about how I’d spoken with sincerity.” said Harry

“The American philosopher, Ralph Waldo Emerson, said “Every man alone is sincere. At the entrance of a second person, hypocrisy begins.”

“Are you suggesting what I was saying was hypocrisy?” said Harry.

“Not at all. I believe sincerity to be one of the mainstays for any leader – and I would agree with the Board – it is probably one of your greatest qualities. The issue with sincerity is that it can only

“Now you’ve lost me”

“An antonymic definition is where you define something by saying what it isn’t – or its opposite” said Elizabeth

“Can you give me an example?” said Harry

“I suppose the classic antonymic definition relates to death – you can’t describe death without referencing life. The two states are inextricably connected.”

“That’s a bit heavy for a Saturday morning but I understand what you mean. You’re saying that sincerity and hypocrisy are two sides of the same coin?” said Harry

“As you might have come to expect I prefer to think of them being on a spectrum rather than exact states. Most people’s behaviour exists on that spectrum. As Emerson suggests – we live our lives internally in absolute sincerity but the moment we speak to someone else we lay ourselves open to hypocrisy” said Elizabeth.

“I’m still not sure you’ve defined the word for me – apart from being at the opposite end from hypocrisy what does it actually mean?” said Harry.

“The meaning that means the most to me – and which I’ve used throughout my career - is the “absence of wax”” said Elizabeth, with a wide smile on her face.

Some people have suggested that this is apocryphal, but ‘sine’ is the Latin for without, and ‘cera’ is Latin for wax. It refers to the time when dishonest marble sculptors in Roman times used to hide their mistakes by covering them up with wax. A truly honest

“So what’s wax for you?” asked Harry

“I used to call it the ‘sincerity sniff test’. When I was a Fund Manager I’d visit companies and listen to chief executives. I’d obviously look in depth at their numbers and performance, but as a long-term investor we were interested in how the chief executive saw the future and how they were going to get there.” said Elizabeth.

“Would I have passed your test?”

“I don’t think you really understand how different you really are. Those who fail the test do one of two things. There are those who overstate and overuse adjectives. Think how often we hear people say what they do is ‘transformational’, or ‘revolutionary’ or ‘life changing’ – when it’s obvious to anyone that they are overstating the reality – they are obscuring with wax.”

“And who are the other group?” asked Harry

“It comes back to being able to trust someone’s intentions – do I believe that this person means what they say and will deliver? When I listened to chief executives I used to try to put myself in the place of their employees. Did they convince me that what they were saying was translated into their practice. If employee engagement is as important as everyone suggests, then believing that what a leader is saying is true – is critical – particularly in the long term.”

“So the sniff test was between sincerity and hypocrisy?”

“The challenge is that many people don’t set out to be hypocrites. Often circumstances lead them to twist the facts in order to make the truth a bit more opaque. I’m not talking here about criminal cover ups. I’m talking about a culture where

Don Ledingham. Ceannas: Leadership by Design © 2019 177 Harry and Elizabeth: A Leadership Conversation people have become conditioned to shape-shift reality in order to make it fit their collective view of the world” said Elizabeth.

“Is that a bit like the emperor’s new clothes syndrome?” asked Harry.

“Indeed it is. Just as in that tale everyone knows the truth that the emperor isn’t wearing any clothes – but they are afraid to say. The organisation where the truth doesn’t match the rhetoric is contaminated to the point that when someone shouts out that the emperor isn’t actually wearing any clothes - then the entire empire collapses” said Elizabeth

“I don’t think I’ve ever thought how about how important the concept of sincerity is. But isn’t it just another word for integrity?” asked Harry.

“Obviously they are related – but I like to think of sincerity being connected to what we say, how we communicate. You are at a great advantage over other leaders in that people see a huge connection between what you say and how you behave. It’s going to be that asset that you’re going to have to leverage as much as possible over the next few months as you set the business on a new course.”

WEEK 31

Positivity

“Good morning Elizabeth. How are you this fine day?”

Elizabeth appeared with their tray of Earl Grey tea from the kitchen.

“I’m very well. Would I be mistaken in saying you’re in a good mood?” she asked, placing the tray on the table and ushering Harry to take a seat.

“Is it that obvious?”

“Well let’s say you’ve been a bit distracted recently” she said.

“I suppose I have – my apologies. I hope I haven’t been too much of a burden”

“Not at all. And what is the cause of this uplift?” she asked.

“We had our first senior executive meeting this week with Wei Chi in post, and I just can’t believe the impact she’s made on the team. She is just so positive – it’s as if nothing is impossible” said Harry.

“Do you think you and your team had become too negative?” asked Elizabeth

“I don’t think we were aware of what had happened to us over the last few years – especially trying to tread that fine line keeping Bob happy”

“The fable of the boiled frog comes to mind” Elizabeth observed.

“I’ve heard of that - remind me”

“I always through it as a bit macabre but that’s probably what makes it so memorable. If you place a frog into a pan of very hot water, it immediately jumps out. If you place the same frog into mildly warm water, it stays put. As you put the pan on the stove it doesn’t notice the gradually increasing temperature until it’s too late and it can’t escape” explained Elizabeth.

“I remember now. That’s probably a good way of putting it. I don’t think we were like that three years ago, but the team ethos gradually diminished without any of us noticing. I blame myself” said Harry.

“It’s exceptionally difficult to pick up gradual shifts in culture – especially when it’s in a negative direction” said Elizabeth.

“Well if I was ever to see the difference between negative and positive then it was this week” said Harry.

“The Nun’s will be pleased” said Elizabeth.

“I’m sorry, the Nuns?” asked Harry.

“It’s a study that captivated me when I first came across it. I suppose I was a victim of confirmation bias in that the results confirmed my own bias that positive thinking has a wide variety of benefits” said Elizabeth.

“And what was it about?”

“Back in the 1930’s nearly two hundred nuns were asked to keep an autobiography. Seventy years later these autobiographies were grouped into those with a negative outlook and those with a positive outlook. The researchers then correlated longevity for the two groups and were able to demonstrate that those nuns who demonstrated positive emotional content in early-life autobiographies were strongly associated with longevity seven decades later. A positive outlook on life has remarkable benefits

“How do you remember this stuff?”

“This stuff, as you call it, is what keeps me engaged, alive and positive” said Elizabeth.

“So, tell me more about how positivity benefits work”

“Well, I suppose I could ask you a question: Does success in business make people happy or is it just that happy people succeed in business?” she asked.

“Now is this a trick question?”

Elizabeth shook her head

“Do happy people succeed in business?” Harry repeated the question to himself.

“Looking back over my career I’d say that more often than not it was the positive, upbeat people that succeeded more than the determinedly miserable” said Harry.

“Then you would be right” said Elizabeth, and continued

“A study published in 2005 – I think the researcher’s name was Lyubomirsky - confirmed that people with a positive outlook – to whom they ascribed happiness, - were more likely to succeed in business than those with a more negative outlook”

“So, what are you saying – that I should get rid of everyone with a negative outlook?” asked Harry.

“You know very well that’s not what I’m saying. So, tell me what Wei Chi was saying that got you so excited?” said Elizabeth.

“Actually – now I think about it – she wasn’t running down people who had a negative outlook. She differentiated between leaders who are positive and those who provide a useful sense check to innovation” said Harry.

“Now that’s interesting – Gramsci, the Italian radical, was famous for saying:

“I’m a pessimist because of intelligence and an optimist because of will”.

“There is a risk to any organisation where, what is the saying? Ah yes, where everyone “swallows the cool aid”.” said Elizabeth.

“That’s what Wei Chi was saying. She wants us to create a culture where people are free to challenge with data, but not simply to support a personal tendency to be negative for the sake to being negative” said Harry.

“That is a powerful ambition, especially given that there are probably so many people in your organisation who have learned to be risk averse in order to survive under Bob’s leadership” said Elizabeth.

“Wei Chi talked about the naysayers as being the antibodies in an organisation. Just like in our own bodies antibodies attack foreign invaders in order to maintain the status quo. She described such people as being critical to protecting the organisation from unnecessary risk but that they become a threat to the organisation’s survival when they attack any change – especially those changes which might save the company” explained Harry.

“Fascinating. You know how much I appreciate a good metaphor. So what is her solution?”

“She set out three strands. The first is that leaders have a fundamental responsibility to adopt and promote a positive

Don Ledingham. Ceannas: Leadership by Design © 2019 182 Harry and Elizabeth: A Leadership Conversation mindset that aligns with our vision of the future. Anything less than that is simply toxic to the change process.” said Harry.

“And what, may I ask, what is a positive mindset?” asked Elizabeth.

“I took her to mean approaching life’s challenges with a positive outlook. It doesn’t mean avoiding or ignoring the bad things; instead, it involves making the most of the potentially bad situations, trying to see the best in other people, and viewing yourself and your abilities in a positive light” said Harry.

“So, she’s distinguishing between drains and radiators”

“That’s it. The drains draw upon everyone’s energy if all they can do is highlight the downside of everything. She wants to reenergise people to the point where they radiate a realistic confidence where people see the possible as opposed to the impossible” said Harry.

“And her second strand?”

“Secondly, she proposed that we – as senior leaders – and myself in particular - champion the need for change, not any change but change that meets the needs to our customers. She used a phrase that I particularly liked:

“The pace of change will never be as slow as it is today”

Yet there are people in our company who would tell you that the pace of change is too fast and that we need to slow down and consolidate.

I tell you Elizabeth – it certainly reenergised me.” said Harry

“You said there were three strands” observed Elizabeth.

“Thirdly, she called for what she described as ‘industrialising innovation’ in the business.” said Harry

“That’s an interesting idea. What did she mean?”

“She said that we needed to use the operating rigour of our business and direct it towards the internal entrepreneurship process” said Harry.

“I’ve seen that kind of thing work before. Although not perhaps as explicitly as she describes”

“She explained how we need to rethink the innovation process in the business. She talked about milestone-based funding; about bringing external experts into the equation; and above all the idea of creating new funding vehicles through new partnerships.” said Harry.

“What sort of partnerships?”

“She said that we should become the partner of choice with the entrepreneurial community in the field of fintech – rather than seeing them as our competitors.” said Harry.

“And how did you feel as she set this out?” asked Elizabeth.

“That’s perhaps the strange thing – I think earlier in my career I would have felt threatened and possibly put up barriers to reinforce my own seniority in the business. I’m not sure if it’s down to our weekly conversations but I didn’t feel any such urge – in fact I simply wanted to get started.” said Harry.

“My goodness Harry. That is a powerful observation. Confucius would be proud if you.” Said Elizabeth.

“How so?”

“What the superior man seeks is in himself; what the small man seeks is in others.” said Elizabeth as she gathered up their cups and placed them on the tray.

WEEK 32

What makes a Great Team?

“Elizabeth, what’s the best team you’ve ever seen on your career?” asked Harry

“The best team I’ve ever seen? I remember going to watch the 1960 Boston Celtics and thinking that they were able to read each other’s minds. But I suppose you’re asking about the best leadership team I’ve ever seen.” said Elizabeth.

“I was - but it’s interesting that most of us do go back to sports teams when we look for great examples of teamwork” said Harry

“Back in the late 1970s I remember visiting a global business based in Denmark who had that same characteristic that I’d seen in the Boston Celtics. They were a remarkable group of very different people, but they seemed to intuitively understand and appreciate their differences – but more than that they knew how they could complement each other to add value above beyond what they could do as individuals”

“Is that the idea of the whole being greater than the sum of the parts?” asked Harry

“And do you know who first suggested that concept?”

“Not a clue – I supposed it was some leadership guru” said Harry

“That leadership guru – as you call him – was Aristotle the Greek philosopher”

“I didn’t know that.” said Harry

“You’ll be interested to know that Google conducted a research project entitled ‘Aristotle’ where they explored why some teams succeeded and others failed.”

“And what did they come up with?” said Harry

“Well they examined if the best teams were composed of people with similar interests? Did they have the same personality types? Did they socialise together? Everything they could examine they examined – and do you what they discovered from all of these patterns?”

“Probably that you need a mix of people?” said Harry

“No – they found no pattern - not a single thing – there is no magic recipe for building a team. The bottom line – much to everyone’s surprise is that the ‘who’ doesn’t matter – it’s ‘what’ they do that matters” said Elizabeth.

“That kind of flies in the face of all the psychometric testing we do when building teams – where we try to balance the make-up. Are you suggesting that’s a waste of time?” asked Harry.

“I am merely describing the results of Google’s study – but if you were to push me I would say that you were.” said Elizabeth.

“So ‘what’ does make the difference?” said Harry.

“There appear to be three things – which certainly mirror what I observed throughout my career. The first were a set of standards, they called them norms, that informed how everyone behaved. Sometimes these norms are explicit and at other times they are unspoken – but the bottom line is that they shape how everyone is expected to behave”

“Can you give me an example?” said Harry.

“Some teams encourage debate and disagreement; others go for consensus; others keep things light and humorous; others stay focused on the matter at hand. – the bottom line was that everyone understood and subscribed to those standards.” said Elizabeth.

“And the second characteristic of great teams?” said Harry

“It’s something that you and I have talked about quite a lot in our previous discussions- although you might not immediately recognise it from its title. It’s Psychological Safety. What do you think they mean by that?” said Elizabeth.

“I reckon it must have something to do with the idea that people have your back. That they won’t let you down – basically you can trust them” said Harry.

“Exactly right Harry. In an atmosphere of psychological safety people are prepared to place their vulnerability in their colleagues’ hands knowing that they can trust them not to let them down”

“So, if I was in team like that I’d know my colleagues won’t punish, embarrass or reject me for speaking up” said Harry.

“Google went so far as to say this is the critical factor in making a successful team” said Elizabeth.

“You said there was a third characteristic of great teams?” asked Harry.

“Its technical term is “conversational turn-taking”, I much prefer 'turn-taking'– which basically means that everyone makes an equal contribution to the conversation. What they spotted in great teams was that people were sensitive about enabling others to speak – rather than hogging the conversation between small number - this allows the group to maximise its collective intelligence” said Elizabeth

“That’s fascinating. When I look at some of the teams I’ve belonged to in my time it was either a competition to speak – or people just opted out and made no contribution.” said Harry

“So, what do you think your senior team is going to be like? Is it going to be a team or just a group of individuals.” asked Elizabeth.

“I know what I want it to be – funnily enough the departure of Bob has probably meant that there’s more willingness to speak up than there was in the past. His body language when others said something he disagreed with was enough to put people off” said Harry.

“It just takes one person to destroy a team. The challenge for you is build the level of synergy to the point where they benefit from the ‘power of team”.

“Power of team” don’t you mean the power of the team?” said Harry

“No. I mean the Power of Team.” said Elizabeth.

“What’s that?” asked Harry.

“When something is multiplied by a power it increases exponentially, that is rises at an increasingly high rate”

“Remember I did study math at university”

“I'm sorry. I just like to make sure we're on the same page. So, let’s say that you and a colleague are working in synergy as part of a team – remembering that synergy is ‘what’ you do – not ‘who’ you are. She increases your effectiveness and you increase her effectiveness. Remember these are the behaviours that relate to enhancing the effectiveness of your colleagues. In such circumstances you are so much more than just two people working together” said Elizabeth.

“So if there were six people in a team and well worked in perfect synergy we would be enhancing effectiveness to the power of 6, or E to the power of 6?” said Harry, quite pleased with himself.

“You’ve got it. But when I worked I used to gauge team effectiveness out of a maximum power of 10. That allowed me to compare one leadership team with another.”

“So, what would you score our team?” asked Harry.

“I don’t know your team but from what you’ve told me I’d say it would be around E to the power of 5 .”

“Wow – that leaves a lot of headroom for improvement” said Harry.

“I’ve always believed that this is the true measure of a great leader. Great leaders can create teams that maximise the collective intelligence and collective effectiveness. With Wei Chi joining you I think you are in a remarkable position to make start on that journey.”

“Now that’s something that really does excite me” said Harry as stared out of the window and stroked Jess’s head.