Tag: modern leadership

Let’s imagine you are the Chairman of the Board for a large international company. During a board meeting, the CEO and his sales team are presenting a market thrust in Germany. You’ve been losing market share to a major competitor and the plan is to pump €40M into the market to take back that market share and the market leader position. After the presentation a lively discussion arises on the pros and cons of the plan, likelihood of success and the potential ROI. The board is relatively supportive and is approaching a decision when the computer sitting (do computers sit?) at the end of the table says “May I object? Your investment of €40M would have a higher likelihood of success and would give a significantly better ROI if it was invested in Kazakhstan.”

 

Now what?

 

How do you handle a suggestion like this from a computer?
(This question was posed by Erik Korsvik Østergaard to Martin Risgaard and myself over a Tuborg at Tuborg Havn.)

 

But let’s start somewhere else…

Google Maps

How do you handle a suggestion from Google maps when you enter a destination and ask for directions? Do you doubt that Google gives you the best solution? Maybe a bit. You maybe have had an experience with Google maps where it sent you on a freeway that ended up being filled with traffic…

 

That’s probably the position I had until a few weeks ago. I was driving to the other side of Copenhagen for a meeting with a potential client. Google maps sent me out on the freeway – and the traffic was more than just a bit heavy. I asked Google again – just to be certain – and it confirmed – stick to the freeway. I was going to be a couple of minutes late if I did.

 

So David’s brain kicked into overdrive – ahhh – Google seems to have forgotten that little back road that I’ve used so many times. We’ll take that one instead – we’ll beat Google. Things worked brilliantly – there was still traffic – but less than the freeway. And then suddenly the traffic all disappeared – beautiful! Until I realize that the reason there was no traffic on this road was that the road was CLOSED!

 

So what did I do? Checked back with Google which could now tell me that I would be 9 minutes late for my appointment – and then gave the client a call to let them know that I was running late.

 

So – do I still think I’m smarter than Google? My confidence in Google’s “omniscience” on the traffic situation has certainly grown and I don’t think I’ll be suggesting alternatives to myself in the near future. 🙂

#move37

Remember #move37!

 

move37

 

Let’s take a look at another bit of input to the AI discussion.

In March 2016, DeepMind’s “computer” AlphaGo was playing the strategy game of Go against Lee Sedol – the undisputedly best Go player of the past decade. AlphaGo won the match 4-1 (Lee had predicted he would win 5-0 or 4-1).

 

During game 2, move 37, AlphaGo made a move that baffled all the professional Go players who were watching the game and it so unnerved Lee that he got up from the table and took a break for a couple of minutes.

 

What was so unnerving about #move37?

 

It was unnerving because no human being had ever made that move and none of the professionals (including Lee) could understand why it had made that move. Either it was a mistake or else AlphaGo was so “smart” that we didn’t understand why it made that move.

 

The correct answer is the latter.

 

It was only after the match that the programmers were able to go behind the scenes and understand what AlphaGo was “thinking” when it made #move37.

 

AlphaGo had been fed thousands of professional games and thus had learned from the best. But this wasn’t a move that it had ever seen a professional make.

 

It had also been taught to play the game against itself – and learn from these games. This is where it becomes interesting. It was able to collect data from these simulated games and the result was that it had taught itself #move37 as a viable option – the winning move!

The boardroom

So – back to the boardroom!

 

We still have a ways to go. If you want to know more about where we actually are, then get in touch with Erik Korsvik Østergaard – he plays with some of this fun stuff.

 

In reality – what IS our response when the computer starts beeping?

 

After discussing with Erik and Martin my own response was that I would request an explanation from the computer – just as I would today if it was one of the other board members that suggested a move into Kazakhstan instead of Germany. If the explanation was sufficient and could be validated, then I would choose the Kazakhstan option.

 

Now remember – this was pretty much my thought about Google maps – I didn’t even actually ask Google (not sure I know how…) – I just assumed that I knew better and took a shot at a shortcut. Today – I don’t even ask – I just shut up and do as Google tells me to do! 🙂

It only took me one mistake to figure out that I don’t actually know better!

 

How many mistakes would I have to make before I just accepted what the computer suggested?

 

There is no doubt that there could be a temptation to let the computer make those decisions at some point in time – however, the real value-creator here is using AI to augment our own intelligence. We need to always ask critical questions of AI – just as we need to do so with our colleagues when making significant business decisions.

 

There is no doubt that the future will be highly impacted by Artificial Intelligence. Do we need to fear? I choose not to! I choose to make use of AI to augment intelligence – and ultimately make better decisions.

 

But where will AI fall short? What will the role of leadership be? I’ll be back… 🙂

 

David

Over the years there have been a plethora of attempts to distinguish between leadership and management – and then those who take the position that the two are just synonyms.

 

Have no doubts – I do take a position in this long-term discussion. 🙂

 

My short and unscientific description of the difference between the two is that Management is about systems and processes, whereas Leadership is about people.

 

However, this post is not about trying to differentiate between the two.

 

I want to argue that to have success as a leader/manager that you have to master both sets of competencies!

 

Successful leaders master both the specific professional competencies of the area of business where they are managers. At the same time, they also master the art and science of people.

 

Just like we humans are equipped with two legs – a successful leader also needs two legs – management and leadership. As with us human beings, we function best if both legs are equally long. People who are in the unfortunate situation to have legs of two different lengths, experience many physical issues which can be linked back to this imbalance – issues with their back, hips, knees, etc.

 

The same with leaders – they need to be balanced. A leader who focuses more on leadership than management, will create a business that maybe has difficulty developing a business strategy – or difficulty understanding its own finances – or difficulty in operations.

 

On the other hand – a leader who focuses more on management may have all the systems and processes in place – but without people who are motivated to actually create results, the results will be at best mediocre.

 

 

 

magic-happens

 

Just for my own benefit, I drew the above figure – and I think it actually sums up the concept pretty well. I could probably pep it up with what happens in the three other quadrants – but that will have to wait until another post.

 

The point is – the magic happens when you have a healthy balance between management and leadership. This is where success appears for leaders.

 

Good luck to everyone striving for this balance!

 

David

An Oath?

Physicians take the Hippocratic oath.
Why? Because through their work, they have a huge impact on people’s lives and well-being and actually have a position where they could do physical harm to their patients.

 

What about leaders?
We don’t really fear that they physically will inject poison into our veins…
But in reality, leaders have a position of power where they too have a huge impact on people’s lives and well-being – and where, in reality, they can actually do psychological harm to their employees.

 

That is why I would like to take this opportunity to bring your attention to The Leadership Oath – a movement which envisions a day when business leaders will hold themselves to the higher standard of integrity and service to society that is the hallmark of a true professional.

 

I, personally, took this oath a number of years ago and strongly encourage every leader to take the oath – and to help others do the same.

 

May I bring your attention especially to “I will manage with loyalty and care, and will not advance my personal interests at the expense of my enterprise or society.”
I would have loved to see a small reformulation at the end of this statement – “…at the expense of my employees, colleagues, enterprise or society.”

 

But I can take it as it is! 🙂

 

The Leadership Oath

As a business leader I recognize my role in society.

My purpose is to lead people and manage resources to create value that no single individual can create alone.

My decisions affect the well-being of individuals inside and outside my enterprise, today and tomorrow.

Therefore, I promise that:

I will manage with loyalty and care, and will not advance my personal interests at the expense of my enterprise or society.

I will understand and uphold, in letter and spirit, the laws and contracts governing my conduct and that of my enterprise.

I will refrain from corruption, unfair competition, or business practices harmful to society.

I will respect the human rights and dignity of all people affected by my enterprise, and I will oppose discrimination and exploitation.

I will respect the right of future generations to advance their standard of living and enjoy a healthy planet.

I will report the performance and risks of my enterprise accurately and honestly.

I will invest in developing myself and others, helping the management profession continue to advance and create sustainable and inclusive prosperity.

In exercising my professional duties according to these principles, I recognize that my behavior must set an example of integrity, eliciting trust and esteem from those I serve. I will remain accountable to my peers and to society for my actions and for upholding these standards.

This oath I make freely, and upon my honor.

Credit: www.theoathproject.org

 

If you would like to take the oath, please find more information at www.theoathproject.org
And if you are ready to sign – http://theoathproject.org/?page_id=47

Pass it on!

 

I have no affiliation with The Oath Project – I just believe this is a piece in the puzzle of 21st century leadership.
Maybe even a significant piece…!

 

Please comment if you do take the oath – or have already taken it.

 

David

As always, the youngest generation entering the job market is viewed with just a bit of scepticism. Currently we experience the entrance of what we so fondly call millennials – or other more or less flattering names – Gen Y/Z, the Internet Generation, Digital Natives, the “selfie” generation…

 

millennials2

Reality is that these young people are different than us “oldies” (read here anyone over 30+) – just as every generation has been different than it’s predecessors. As humans, we don’t naturally like “different” – it scares us just a bit.

 

Our job as leaders is to create a working environment where these energetic and innovative young people can thrive and enrich our companies and cultures.

So what characterizes these young people? REMEMBER – these are generalizations!

  • Want to make a difference
  • Want to be known – known for their competencies and results
  • Entrepreneurial spirit
  • Love being part of a team
  • Want to be led – feedback (2-way) is important
  • Don’t necessarily realize that there are “rules”
  • Conscious of their own value – as an individual, group and consumer

 

Motivation? Social groups – The Team

Work ethic? They work when it makes sense – time and place are less relevant (hence the photo of work being done in the coffee shop in the evening)

Loyalty? Loyalty lies with their purpose. If the company purpose aligns with theirs, then they can be extremely loyal – but don’t be surprised if they are starting their own company on the side…

 

So how DO we create this fantastic working environment where these young people can thrive? There are two critical elements – Purpose and Trust.

 

Millennials and Purpose

When our company has a clearly stated purpose and is living that purpose, then we attract people who believe what we believe (quote: Simon Sinek). This is also the case for our employees. With a clear purpose, we will attract young people who actually want to make a difference for our purpose.

This gives these young people a chance to actually make a difference and an opportunity to actually be known for creating results. Having the clear purpose also appeals to their need for being part of a team – they are part of the team that delivers what they believe in. They want to be able to tell a cool story when they meet new people and when they tell friends about what it is they work with. Clear purpose gives them that opportunity.

 

Millennials and Trust

Trust is the other element to creating a thriving working environment for millennials. If you haven’t read it, then please read my blog post on Trust.

Several elements of building trust drive motivation with these young employees.

Take for example Autonomy and Self-Management. Both of these create an environment where the employees feel the entrepreneurial spirit and they themselves “become the rules”. Then they don’t need a manager to tell them the rules.

Giving them the opportunity to Master their job and develop their competencies enables them to be proud of themselves.

Openness and honesty gives them leaders who actually can and do lead and who aren’t afraid to give them honest feedback – and who also expect that feedback is 2-way.

 

Millennials and their colleagues

There is no doubt in the world that young people coming into the job market have a lot to learn! This requires a fair amount of humility on their part – but this isn’t different than it was for any of us. They also need to learn that there are differences between the generations and learn how to act and react in a working environment where many of the older generation (30+) may be characterized by significantly different drivers than themselves. Being part of a team requires personal flexibility. Leaders need to create safety on a team where these differences are openly discussed and even celebrated for the diversity they bring.

 

Leading Millennials

Give them feedback – they actually do want to learn. Praise them when they have done a good job (builds trust) and most certainly, give them constructive criticism when that is appropriate. You must also be prepared that they expect feedback to be 2-way – so they will often also give you constructive criticism (and praise!)

You have a big job aligning the expectations of the “oldies” with the millennials. Here is where trust comes into play again. Talk about it – openly! Don’t be afraid to laugh together about the idiosyncrasies of the different generations – with respect! This openness will create respect for each other’s differences while at the same time making it legitimate to actually speak about these topics and bring up things that irritate some colleagues.

 

A scary example of what actually happens. A HR representative in a large Danish company was asked how they handle the millennials coming into the job market. This person’s response (paraphrased) was – we peel all that off them in the first six months and then they fit into the form.

What a tragedy! Innovation, new thinking, drive, engagement, motivation – all squashed within the first 6 months. Fit into the form or get out.

 

As every generation before, the job market needs to learn to accommodate the youngest generation. The key here is that these young people are the most global generation so far and they can give us a huge competitive advantage in the global world – if we are able to include, engage and motivate them.

 

Wishing all leaders and companies out there the best of luck in bringing these fantastic young people on board and giving them a working environment where they thrive and create value.

 

David

Very few leaders will dispute the fact that trust is a key to a good working environment in business.

The question is – do we know how to actually create, develop and maintain trust in the workplace?

In recent years, science – specifically neuroscience – has enlightened us on why we trust.

And it looks like this!

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I’m working on a post on Trust – so in the meantime I hope you enjoy this short – and a bit provocative post. 🙂 

me-we

What drives your ego?

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Purpose

As human beings we have a fundamental desire to make an impact.

Credit to GoPro who has captured this fundamental desire in two gentlemen from rural China who despite their physical challenges and social status are making a difference in their community!

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Leadership in the 21st century requires a paradigm shift from leadership of the past century. We are 16 years into this new era and awareness of this fact is awakening in business slowly but surely. My hope is that this blog can be a catalyst to that continued awakening.

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