Do association CEOs have what it takes to lead in the reset economy?
Let's face it: none of us have really been here before. Yes, we've all navigated tough times, but not like this. The foundations of our economy have fundamentally changed, and things may never be exactly as they were.
A while back, Paul Pomerantz, worldwide executive director of the Drug Information Association, shared with me a Business Week article titled "Is your CEO recession capable?" It suggested that many for-profit executives weren't equipped to lead in these times and that a rethink of competencies and behaviors is essential. While the U.S. economy is now growing, it's clear that things are very different—and difficult.
It struck me—and a number of my CEO colleagues—that we need to start a new conversation about what's really different and how we may need to grow and develop to ensure that we're able to help our organizations fulfill missions and goals and realize personal fulfillment.
After initiating the conversation with the ASAE Fellows group, Paul, Henry Chamberlain (president and CEO of BOMA International), Pamela Kaul (president and founder of Association Strategies) and I joined about 50 CEOs at the 2010 ASAE Annual Meeting & Expo in Los Angeles for a conversation on what it takes to lead in these crazy times. It was a beginning. First, a couple of assumptions that framed our conversation:
- This isn't like any other downturn we've ever seen, and reprising past practices won't be enough.
- Nobody is perfectly equipped to lead now based purely on experience in tough times.
- A new mix of competencies and behaviors will be necessary to lead effectively.
- It's time for CEOs to grow.
Rather than list all the takeaway points from our conversation, I'd like to share three key themes that emerged. Your thoughts are welcomed.
- We need to rethink our teams and how we function. We must become effective at getting more minds with diverse skill sets into the game and encourage them (and ourselves) to "challenge authority" in a constructive and effective way. The consensus was that we need to encourage and support our teams by promoting development and sharing authority and visibility.
- We need to rethink how we develop ourselves and spend our time. According the Business Week article I referenced above, the optimal "recession CEO" time allocation may be 20 percent CEO, 40 percent COO, and 40 percent CFO. Given that many of our groups have enjoyed the fruits of long, continuous growth, I wonder if many of us have grown to become strategic thinkers and visionaries who are less connected to operational realities. Is it time to get back to basics and all the development or choices that come with it?
- We need to exert even more future-focused leadership while not being perceived as controlling or overly directive. Now that boards are expecting more than ever before—while sometimes, paradoxically, being more risk averse—successful CEOs will need to deliver more creative and practical approaches to vexing problems than ever before. Many of us have done as much as possible on the expense side, and the expectation is that we will need to grow our way out. One participant suggested that, in order to succeed, we need to demonstrate "vulnerability to our boards and staff while at the same time exuding confidence." Like I said, we need to grow.
In a future post, I'd like to share some thoughts that emerged about the concept of "fail fast, fail small, learn, and adapt."
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Comments
Looking forward to your future posts on this topic.
The foundations of our economy have fundamentally changed is one of those assertions that undoubtedly gets heads nodding, and I'm not necessarily disputing it.
But, it is such a significant statement that I think it needs to be backed with data and examples if CEOs are really going to think differently about the enterprise and their role within it. Those shifts should be tied to how the economy has fundamentally changed (if it indeed has) and not making them explicit is potentially problematic. I'd like to see a chart of key indicators (for associations) and data/examples of the way it was, the way it is, and the way it might be in the future.
Posted by: Jeffrey Cufaude | January 14, 2011 5:11 PM
Love love love your post. I feel like it's rare to have access to the inner thoughts of CEO's about how business is changing, despite the fact that there is a massive and constant swirl of conversation everywhere about how to adapt and even stay ahead of the turbulence. The paradoxes you describe - getting your team to challenge authority (when you are the authority), and the push and pull with boards - are great to read about and leave me wanting more.
Can't wait for your next post!
Posted by: Maddie Grant | January 14, 2011 10:17 PM
Joel
As Patton said, "There is no security on this earth. There is only opportunity." How will we challenge and develop leaders at every level, paid and volunteer, to move forward no matter the turmoil? And, if not now, when? If not us, who?
Can't wait to see where this conversation goes.
Cheers
Ann Oliveri
Posted by: Ann Oliveri | January 14, 2011 10:17 PM
Tammy Erickson talks a lot about how Generation X leaders may be uniquely equipped to lead during these challenging times. I blogged about it last year at http://thehourglassblog.blogspot.com/2010/01/xers-and-recessionary-leadership.html.
Everyone complains when someone starts applying generational traits to every individual in that generation, but to my way of thinking, there is some logic to the concept that those who came of age during a time of uncertainty and change would be better prepared to lead during a similar time.
Posted by: Eric Lanke | January 16, 2011 9:39 AM
Jeffrey: Point well taken. I think we can debate the depth and scope of recent developments in our economy and how we characterize them. My point was that some of the foundational drivers, such as housing, and the wealth and discretionary income generated from these assets, have changed to the point that the impact on the economy and the enterprises we lead is profound.
I would point to the next phrase in this sentence, “…things may never be exactly as they were.” To me and a number of my peers this is a critical point. If the perception is that we are in a very slow recovery then perhaps application of tried-and-true ideas are indicated. If things are fundamentally changed then different thinking and approaches may be needed.
You raise an interesting point about the importance of evidence in motivating CEO behavior. My characterization aside, and I would love to hear my colleagues chime in on this, but my impression is that today’s chief staff executives are not so quantitatively focused and respond to a broad range of indicators including things that appeal to their intuitive sense of what’s real. That said I really like your idea of a chart showing past, present and future as a way of seeing the evolution of things. Perhaps the future portion could even show different scenarios.
Maddie: Paradox is a good word to describe the seemingly contradictory aspects of the CEO role in this new environment. The challenge is to overcome—and help others overcome—the cognitive dissonance that we feel when we try to embrace these contradictions. I guess my point is that we’re all learning and CEOs are no exception.
Eric: Really interesting post. Generalizations (and their inherent weaknesses) aside, it may be that in addition to being uniquely equipped to lead in uncertain times—Xers may be great “reverse mentors” to us Boomers who may bring other unique qualities to leadership.
Ann: Thanks for the great and profound quote on change and opportunity. We're all in this together and we might as well share in the important work of creating a better future for our organizations and those they serve.
Posted by: Joel Albizo | January 28, 2011 9:44 PM