'e used to say that if you 'ad workers, it wasn't so important to be liked as it was to be respected, and it was possible to respect someone without actually likin' them.
So I put down Birds of a Feather and picked up Ram Charan's slim book, What The CEO Wants You To Know.
A consultant, Charan summarizes the lessons that he has learned working with top CEOs of major corporations all over the world.
His book is a fast, insightful and very thought-provoking read that I finished in one sitting.
Leadership
- A good CEO is able to break down the most complex business down to the fundamentals - This concept is reflected in the slimness of Charan's book compared to other bloated business books.
- Coaching - Give positive feedback and *specific* instructions to build a skill. Self-confident, secure leaders love to give true feedback, saying what they really think. Not just behavior, but business side - is the individual cutting through complexity, focusing on right priorities?
- Mismatches - Mismatches become a drain. Most common answer for CEO mistake when dealing with people is waiting too long to remove/address a mismatch. When someone's aptitude or attitude gets in the way of execution, address the issue.
- Synchronization - Synchronize efforts and link them to the business priorities; clear, simple list. Linking business needs to people's natural talents; right people in the right job. Increase information flow, coordinate work, make the group more decisive, build the team.
- Lessons from a Street Vendor - A street vendor represents the fundamentals of a business: sales forecast, inventory, cash, merchandising/advertising, product mix, profit margin, consumer focused, best practices. Look at the big picture for opportunities and priorities, keeping in mind the fundamentals.
- Nucleus of a Business - Cash generation, return on assets, growth. Growing the right way means that the growth has to be sustainable and profitable. Finding the right growth is business acumen.
- Consumers - When you can't get the price or margins that you want, talk to the consumer to find out why.
- Things you should know about your company:
- What are your company sales?
- Is your company growing?
- What are the profit margins? Are they growing, declining, remaining flat?
- How does the profit margin compare to competitors'?
- What is your company's inventory velocity? Return on assets?
- Is the company's cash generation increasing or decreasing?
- Is your company gaining or losing against competitors?
"CEOs who deliver results have mastered both the business side [selecting the right business priorities] and the people side."
"Some of you have the intellectual capacity to cut through the complexity but are indecisive or afraid of being wrong... Have the courage and conviction to provide focus for your area. You have to decide what your department, division, or business unit must do and what it must stop doing.
You have to determine the business priorities, and those priorities have to be consistent and aligned with the corporate goals. You can’t have too many, can’t keep changing, and have to communicate them clearly and repeatedly...
You should be able to explain what you need to do in clear, simple terms, and you should be able to explain how it will improve money making."
Fundamentals
As a testament to Charan's focus on the fundamentals, the business acumen and leadership lessons in this book are still valid in today's business world.
Published over a decade ago, the CEOs and superstar companies profiled are in a vastly different place today (e.g. Ford, Dell, GE), but the content of the book and advice given remain relevant.
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