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Tag Archives: Malcolm Turnbull

The Terminology of Life at the Top

08 Friday Jul 2016

Posted by Burning Manager in Uncategorized

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BOM, Brexit, Bureau of Metereology, Business Insider Australia, CDOs, CEO, CTC, GFC, global financial crisis, Gonski, Kevin 07, Lafarge, Malcolm Turnbull, Pauline Hanson, PM, Prime Minister, S&P, Standard and Poors, The Construction Training Centre

Kevin 07

My Name’s Phil and I’m Here to Help!

 

I’ve been a CEO over 20 years and this week I passed the milestone of 10 years as CEO of the Construction Training Centre. According to Business Insider Australia the average tenure of a CEO is 9.7 years so I’ve managed, just, to scrape over that particular hurdle.

They rather unhelpfully, from my perspective, think the optimal lifespan of a CEO is a mere 4.8 years. Gulp! That’s to suggest I’ve outstayed my welcome by some 5.2 years. They cite three main reasons why CEO’s generally move on being burn out or loss of enthusiasm for the job, external changes in the market where skill set requirements change and when Board’s decide enough is enough. And I get all of that. It’s hard to maintain drive once you emerge from a purple patch. For many the inexorable torrent of KPI achievement gets to the point when alternatives look rosier. Quite often CEO’s transition to not for profits tired by the singularity of the commercial world. Others, and I’d like to think I’m one of them, aim to expand the outcome metric such that there are a range of measures by which one can evaluate their own performance and therefore continue to grow and thrive.

I call these pivots. In the brave new Australian business world, without the ballast of our resources sector in overdrive, we have to look elsewhere to drive economic growth to generate the prosperity that we have become so accustomed to. As a country we need to pivot. This was one of the messages of the Coalition’s not so successful election campaign in the Federal election. At the time of writing, almost a week on, we are still not definitively clear as to who will govern the country. If you think the lifespan of a company CEO is short, spare a thought for the CEO of our country; the Prime Minister.

Over the last five years we have had something like five Prime Ministers. There are all sorts of performance metrics to determine whether a Prime Minster is successful but it appears to me we only look at a few when making this judgment. The first is the country’s financial performance which in a globalised world is not really in the full control of the government anyway. In CEO terms this is the state of the balance sheet and importantly, in the short-time horizon thinking that besets both Boards and voters, the profit and loss. For Prime Ministers there is the other key measure which is the opinion poll measuring the most nebulous of characteristics – popularity? Be warned. Popularity can easily beget populism.

Rednecks

With the rise of Trump, Lafarge, Xenophon, Hanson et al serious political commentators and writers are warning of the danger of the tide of populism that is entering the world of politics. Populism can mean many things to many people. To some it’s having their local representative totally aligned to their own views and in these cases they regard their politician as ‘on the money’ and ‘in touch’. One of the worst criticisms that can be levelled against a politician is that he or she is out of touch. Populism though for me is a kind of giddy political surfing where the incumbent politician rides a number of waves hoping always to catch the best ride to take them safely to the beach. The only grasp you get of their underpinning values, beliefs and thought processes is the particular fad (wave) of the day.

So how should we measure a politician’s success? One logical way is to define what the criteria for success is from the outset. If we carry the hypothesis forward that the PM is the CEO of the country then we might just be able to use the essential success factors of a CEO as a guide. Getting an overall consensus of what makes a successful CEO is no easy feat but there is a consensus of sorts that suggest the CEO only needs to do three things:

  • Set the overall vision and strategy and communicates this to all stakeholders;
  • Get the best skilled people together to make the vision a reality; and
  • Make sure there’s enough cash in the bank.

Applying this to our recent election then….

The message from Malcolm Turnbull was one of jobs and growth. The rhetoric of this was repeated in a mantra-like fashion but what wasn’t clear to many, I would suggest, is what this means to the individual in the street. Underpinning all of this is this vague concept of innovation. Innovation as a buzz word caught on quicker than a Medicare text alert. As an aside I put myself in Turnbull’s shoes when the Medicare ‘text’ scare emerged. He never really properly neutralised this attack. I would have issued a Coalition Bureau of Meteorology (BOM) storm warning text the morning of the polling saying something like. ‘BOM Beware- dangerous tropical cyclone Hanson on the horizon’. So on the count of clear message Turnbull, the supposed great communicator, was found wanting.

Getting the best skilled people to make the vision a reality comes down to how we educate and train our people to confront what’s coming. The challenges are many and while, yes, it’s an exciting time to be an Australian I think it’s also a scary time for a young school leaver or graduate (from Uni or TAFE) to firstly choose a career path that has some degree of protection from automation and secondly to be able to ply your ‘trade’ in a meaningful job in your field of study. This to me was the missing opportunity in the campaign. Labor focused on education only with respect to Gonski which I’m still convinced very few Australians (me being one of them) understand the detail of, or rationale behind. We need to radically address education and training across all spectrums of pre-school, primary, secondary, VET and tertiary if we want to compete globally. This is an even better legacy to leave behind than a huge surplus which we partly squandered on school halls. Perhaps our surplus in the Rudd years would have better spent on soft education structures than physical ones.

FannieFreddieCartoon-thumb-510x337

The final measure is cash in the bank. We have had a shot across the bows this week from Standard and Poors who have put us on credit watch suggesting that our much treasured AAA credit rating is in jeopardy if we don’t start addressing our growing deficit. For me this is a simplistic view and I have complete disdain for these rating agencies. We should always remember that they gave AAA credit ratings to bundled collateralised debt obligations (CDOs) that in reality were of junk bond value. And we all know where that led…that’s right the GFC.

Final

As I reflect back on my ten years I have achieved consistently across the three key success criteria. For me though that is no real measure of success. Those three are a given that any CEO is expected to achieve and therefore I don’t think you can really judge your time with any sense of pride if those has been your sole outcome. For a PM one key measure surely must be the degree of community cohesion. This is important right now with elements in the Senate with an agenda likely to cause social division. As a CEO this translates into how well the team is gelling to get results. Perhaps the most important test is how well are those for whom you have stewardship faring. For a PM that is how content and cohesive is the community. For the CEO this translates to the degree of well-being expressed by the work team. Our recent staff survey would suggest that we are in pretty good shape. For me the whole-hearted employee is what we should strive for. Achieve this and you just know your customers will be taken care of. All Turnbull needs to do now, on the eve of his first term as an elected PM, is get his team to work as one, sharpen his message, get it out there, bring us back to surplus and make us all happier and content with the way things are. Good luck with all that. With 20 years under my belt, and to quote a fellow Queenslander, my name’s Phil and I’m here to help!

Channelling Oprah By Accident

15 Tuesday Dec 2015

Posted by Burning Manager in Uncategorized

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accidental manager, authenticity, C K Prahalad, Caroline Myss, CMI, creativity;, David Gelles, failure, flow;, Gary Hamel, innovation, innovation economy, lucky country, Malcolm Turnbull, Michael Porter, Mihaly Csikszentmihalyi, OECD, Oprah, Oprah Winfrey, Pfeffer, risk, risk taking, self-esteem, Soul, spirt, Sutton, Wyatt Roy

oprah_northwestern

I went to the Oprah Tour of Australia in Brisbane recently . There I’ve said it! Fair play to Oprah she did, mid-show, acknowledge the 9 or so of us blokes in attendance, whereupon we were asked to stand and received the ‘love in the room’. It was just a momentary and miniscule glimpse of what it must be like to get adulation like Oprah does. She then went on to regale the audience with her ‘recipe’ for happiness, peppered with anecdotes from her life to illustrate junctures at which important things happened. All events that have helped her form her view on happiness and success. She touched on authenticity, having clarity of purpose, intention, dedication of service and surrender amongst other things. This gave me pause for thought. While her recipe for life seemed fairly common sense I reflected it wasn’t a bad recipe for achieving success in the business world either.

Just a couple of weeks ago now Prime Minister Malcolm Turnbull released the much awaited policy on innovation. In his own words this is the best time to be alive in Australia. That point may be moot but you could prosecute a strong case to say it is perhaps the most interesting (and not in a Chinese proverb sort of way). In short the main issue confronting us is the re-calibration of the Australian economy from one of pulling resources from the ground (Coal, Iron Ore and Gas) to one of innovation. We were once the ‘lucky country’ and now we are striving to be the ‘creative’ one.

Out of the earth we once extracted wealth and now we must extract from our minds and spirits (the well of creative ideas) the new wealth. Once we extracted resources and sent them overseas without much in the way of a value-add, only to buy those goods back as steel and other value-added products. Now we must do the value-add bit here. When the commodity is ideas and we don’t value add in our own backyard it’s called a brain drain. We must have ideas and then shape and polish them if we are to maintain our enviable OECD position in terms of absolute wealth and also in terms of stature and national self-esteem. This is a nice segue to Oprah  who talked a lot about self-worth. Little it appears can be achieved if this is not at its optimal level. The real challenge now will be how we manage creativity and ideas within the workplace. Just the word ‘workplace’ sounds like a misnomer  because creativity, long associated with play, may seem a slightly awkward bedfellow to work (grind) which is what we get up each day for.

The Executive corridor (or C Suite – a term I really don’t like) is populated with managers whose qualifications fall into one of three distinct groups:

  • technical experts with a management qualification tacked on;
  • professional managers whose expertise lies solely in the art and science of the practice of management; and
  • technical experts with no management qualifications to speak of.

In the past knowing more than the other ‘bloke’, and yes it has generally been a male, has been the prerequisite for promotion or advancement in the workplace. This has had two impacts:

  • the most knowledgeable person in the chain has been taken out of the position immediately lowering the knowledge quotient at the pointy-end;
  • a position requiring an altogether different skill set has then been occupied by someone ill-equipped to handle it. Arise the accidental manager.

There is nothing wrong, per se, in promoting a technically proficient worker. This can act as an encouragement to others to strive to do better (or as Oprah might phrase it, to be the best you that you can be). However before doing so there are four precursor activities that need to be set in motion first:

  • working with the soon to be promoted team member getting them to realise there is a whole body of knowledge that they don’t know but will need to;
  • helping them realise that falling back on their default technical knowledge to define their sense of self-esteem in the new role is not appropriate;
  • providing some baseline management training before the promotion; and
  • instilling in them the notion that they are now on a path of lifelong learning.

In short it is necessary to do succession planning, or as Oprah might say, find your thread, follow and nurture it.

Regrettably the world is littered with accidental managers. It has become so acute that the Chartered Management Institute in the UK, the peak body for management professionals, has identified this as a key risk to the UK’s success in the digital age. The impact of accidental managers in the workplace is varied. It ranges from small business failures to meltdowns of global enterprises; the shockwaves of which ripple across the globe. Seldom do such impacts happen without individuals and families being affected. Compare an accidental manager to a not yet fully qualified pilot. At least s/he has auto pilot to rely upon. The promotion of managers without the requisite insight, training and commitment to lifelong learning is a catastrophe waiting to happen. Those who have put in the hard yards of learning and study over the years are often left to pick up the pieces and in ‘repairing’ those mishandled by accidental managers oftentimes find themselves reaching into their wider families to help salve their wounds.

With the need for Australia to generate ideas and turn these ideas into commercial successes, there is a greater need now than ever to have managers in place who are anything but there accidentally. There are four generations in the workplace – boomers (me), Gen X, Gen Y and Gen Z. As managers we will need to add this additional complexity to the existing skills necessary to run a successful business. Add to this the requirement to be able to create a culture where ideas can be encouraged, shaped and presented to market and we can begin to see that not only is the accidental manager well out of their depth but the assured manager may well be coming up short up themselves.

The ability to generate ideas is not enough in its own right anymore. The testing, hot housing, incubating and prototyping will require courage as it involves risk and risk taking. If we are to survive in the digital age and this new era of innovation, our approach to risk must change. Our default position of being risk averse can no longer protect nor sustain  us. This begs the question as to whether the existing breed of assured managers are up to the task (me included). Oprah may well prompt us to ask the question as to whether were are getting our team members to embrace their failures and allowing them to learn from them. We cannot innovate unless we fail some of the time. We cannot grow as individuals without some elements of failure in our lives. Failing in front of our subordinates is a huge display of vulnerability but without leadership by example how can we expect our team members to learn from us?

Failure starts to take us into areas where very few assured managers are comfortable to travel. Many of us may not even recognise that such terrain exists. Failure and success, creativity and innovation start to go to the spirit or soul of a person. To become successful managers we are going to have to embrace the soul and recognise the way it affects those about us. We will need to know about energy and flow. Required reading should now include Csikszentmihalyi, Myss, Chopra and Sheehy while still including Hamel, Prahalad, Porter, Pfeffer et al.

Oprah has a head-start here because she was able to build a successful media empire based on self-belief, focus, intention and surrender. She knows intrinsically that the spirit requires nurturing and in doing so, flow – the well from which we draw ideas – can bring happiness. As assured managers we are going to have to continue to learn and do so in new areas; some of which may not sit that comfortably with our scientist selves.

Highly developed intuition will be required (future blog topic on the way). I suspect business school learning will not be of great help here. Sure we can learn about digital marketing and the importance of cash flow at B School, but to learn about soul and spirit as Oprah would reflect will require us to attend ourselves. Perhaps the way of the future for managers is retreats built along the lines of ashrams? The drive that made us devote our own time to improving our management skills must be re-kindled to encourage us to learn new skills and acquire new knowledge that awakens new dimensions; those that will lead to innovation, business success and above all true happiness in the workplace and beyond.

 

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