When Will They Have Had Enough?

By Dr James B. Rieley

reprinted from Leadership Direction, Vol.1, Issue 1

Here is the situation. It is 2004 and businesses from all sectors are still struggling. Wouldn’t you think by now that this wouldn’t be happening? Wouldn’t you think that there have been enough business books written that ‘show the way’ that managers would have figured out how to make their companies better? Wouldn’t you think that by now, the addiction to fire fighting and reactive thinking would have waned? Well, the reality is that for each of these questions, the answer is, ‘it hasn’t.’ And the reasons are scary.

Companies are struggling for several reasons. First, whilst most companies have some highly skilled managers, their ability to lead is not where it should be if the organisations they manage are ever going to be in a position where they can realise their potential. Managing is all about keeping things under control, making sure that things get done when they are supposed to, making sure processes and systems are as efficient as possible, and making sure that ‘the numbers’ are hit each quarter. All these ‘things’ require solid management skills, and it is clear that many companies are staffed with people who can do this…and do it well. But this is not what leadership is all about. Leadership is all about creating an environment in which managers and employees can realise their individual and collective potential. Leadership focuses on helping managers and employees become inspired to demonstrate high performance by helping them see how they can contribute to their individual, and the organisations success. Leadership is about helping managers and employees to become more effective; with the rationale being that if one makes more effective decisions, efficiency begins to occur on its own. In an organisation where leadership is present, managers and employees know what needs to be done to achieve the goals and targets that are set. And when the employees understand, and they are inspired, they rise to the challenge.

But to be an effective leader in an organisation, it means that one must shift the way in which they think, and the way in which they influence others. Organisations where strong, effective, inspirational leadership is present are able to achieve greatness, and, consequently, realise their potential. Organisations that have effective leadership present see a reduction in reactive, short-term thinking that leads to the addiction to fire fighting. Managers and employees work to prevent ‘fires’ from occurring instead of wasting time and efforts on attempting to solve the same problems over and over again.

These issues and behaviours are present in organisations that are teetering on the brink, as well as organisations that, on the surface, are doing rather well. The common denominator between them is that, regardless of financial condition, they are not postured for a sustainable future. And therein lies the problem.

We recently worked with an organisation that was desperate to see a ‘turn around’ in their prospects for the future. They had tried almost everything that they could think of, but their results oscillated wildly. Good years, bad years, inconsequential years; it was a potpourri of results. And it wasn’t until the Board decided that, regardless of whomever was in the CEO’s office, they wanted to see a path that would help the company realise its potential that things began to change.

By working with their decision-making processes, they were able to install strong, effective systems and processes that could support a sustainable future. And by shifting the managerial focus to include clear, demonstrated leadership, they were able to create an environment in which the sustainable future could actually begin to shape itself. This required, as one might imagine, a shift in how managers looked at employees and how employees looked at their jobs.

Was this a difficult shift in behaviours? Clearly. Was it worth the effort? Yes. Turning a business around is the easy part – anyone can put enough heads on stakes to ensure profitability. But sustainably turning a business around – ensuring that a company can realise its potential – requires a serious commitment and a discipline for a more positive future. And without this commitment and discipline, many organisations will continue to struggle. Seems like a terrible waste, doesn’t it?