
It's a common occurrence, a CEO leads a company to record earnings, retires and in months, those once high-flying earnings are dropping like shot ducks.
Observers blame the new leadership team. But most likely the observers are wrong. It's not just the new leaders who are screwing up. Instead, it was most likely the former CEO. Yes, the former, supposedly great CEO. Look to him for what went wrong - and what went wrong provides lessons for leaders at all levels.
The reasons are clear but seldom recognized. They get back to the raison d'être of leadership - which is not the performance of the individual leader but the improved results of those being led. The problems lie in the definition of results. For when results are defined narrowly, i.e. in strict terms of share, margin, shareholder value, profits, organizations lose their elasticity.
And the quality of organizational elasticity is linked to its culture of leadership, leadership with a broader vision of results, encompassing the necessity to hire and develop people who lead others to get results.
So when decline follows the departure of great leaders, the safe bet is that those "great" leaders haven't hired and developed leaders - and so really weren't great at all, no matter what results they got. In fact, they were quite poor.
To paraphrase Vince Lombardi on winning, getting good leaders for your team isn't everything, it's the only thing. The moment that you decide to hire, that very moment, is the living, breathing future of your organization.
A curious chemistry takes place in the hiring process. We don't just reach outward, we also reach inward. In hiring leaders, we invariably hire ourselves - our strengths and weaknesses. So the hand we reach out to shake is not just the other person's hand, it's our hand. Hire to our strengths, we hire strong leaders. Hire to our weaknesses, we hire weak leaders.
I know a brilliant, young executive in a multimillion dollar manufacturing company whose ambition to become CEO of that company may founder on his maddening propensity to hire leaders who may be good but who are none-the-less not the very best.
That's because the leaders he hires must have what is an unstated but at the same time real skill: the ability to curry his favor. Those leaders are ostensibly qualified. But they are often not the very best of the pool because they come equipped with that extraneous skill.
Since results on his teams are also defined as the care and feeding of his ego, that executive is hiring to his weaknesses, so he continually makes what may ultimately turn out to be garbage-in-garbage-out hiring decisions that can ultimately wreck his ambitions.
On the other hand, I know another young executive, not nearly as brilliant, but whose hiring dictum may very well get him farther along in life.
The dictum is: Hire leaders who can not only do well in this position but in the next position and maybe even the position beyond that.
In other words, he hires to his strengths, his inner sense of self-confidence, which allows him to surround himself with people who are smarter and in some ways more capable than he - and so is creating a rising tide of action and results that will further his career in powerful ways.
As Steven Jobs said, "I don't hire people to tell them what to do but to tell me what to do."
Yet hiring people who are capable of supplanting you isn't enough. Do more. Actively develop the knowledge, skills and careers of those leaders to give them the best possible chance of supplanting you.
An epitaph on a 1680 New England gravestone speaks to this:
What I gave, I have.
What I spent, I had.
What I left, I lost.
By not giving it.
That can be an epitaph for failed leaders. By not giving to your leaders, not developing their skills and careers, you lose them, lose the opportunity to have their riches enrich you.
Nobody is a success unless others want them to be. And when you have a passionate desire for their success, for helping them improve and achieve their goals, when they know that working on your team will be a defining experience of their career - then you will have people who want like hell for you to be a success.
The decline following the departure of "great" leaders indicates that those leaders were most likely control-monsters, commanders not convincers, great at getting jobs done themselves but not challenging others to do them.
And when those others are ignored, they become inept.
So let's take an additional yardstick to our leaders and measure their total value, both when they're there and after they have left. Link that value to deferred compensation, bonuses, stock options for executives and to partially-delayed evaluations for middle managers and supervisors - or whatever.
When leaders define their performance beyond their tenure, they will most likely pay more attention to those two factors that are absolutely necessary for any organization's continued well-being: getting and developing exceptional leaders.
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2004 © The Filson Leadership Group, Inc. All rights reserved.
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PERMISSION TO REPUBLISH: This article may be republished in newsletters and on web sites provided attribution is provided to the author, and it appears with the included copyright, resource box and live web site link. Email notice of intent to publish is appreciated but not required: mail to: brent@actionleadership.com
The author of 23 books, Brent Filson's recent books are, THE LEADERSHIP TALK: THE GREATEST LEADERSHIP TOOL and 101 WAYS TO GIVE GREAT LEADERSHIP TALKS. He is founder and president of The Filson Leadership Group, Inc. ? and has worked with thousands of leaders worldwide during the past 20 years helping them achieve sizable increases in hard, measured results. Sign up for his free leadership ezine and get a free guide, "49 Ways To Turn Action Into Results," at http://www.actionleadership.com
AP - President-elect Barack Obama's proposed tax cuts ran into opposition Thursday from senators in his own party who said they wouldn't do much to stimulate the economy or create jobs. Senators from both parties agreed that Congress should do something to stimulate the economy. But Democratic senators emerging from a private meeting of the Senate Finance Committee criticized business and individual tax cuts in Obama's stimulus plan.
AP - The U.N. Security Council called for an "immediate" and "durable" cease-fire in Gaza in a resolution Thursday night even as fighting between Israel and Hamas raged — with early morning airstrikes killing seven Palestinians and pushing the death toll to about 760 in the near two-week conflict.
AP - A key panel unanimously recommended impeachment for Gov. Rod Blagojevich on Thursday, setting up a vote that could make him the first governor to face such fate in Illinois' sordid political history. Blagojevich should lose his job for abusing power, mismanaging government and committing possible criminal acts, including federal allegations he tried to sell off a U.S. Senate seat, the special committee concluded.
AP - Tim Tebow gave Florida the jolt it needed, and the Gators toughed out a second BCS title in three years.
AP - Trying to survive a deepening recession, employers are cutting their work forces to the bone, leaving more Americans unemployed and with dim prospects of finding a new job any time soon.
AP - Less than a month after its first report, a congressional panel overseeing the Treasury Department's $700 billion financial bailout is demanding more answers.
AP - U.S. policy to win in Afghanistan must recognize the poor nation's limitations and its neighborhood, especially its intertwined relationship with U.S. terrorism-fighting ally Pakistan, the top U.S. military commander in the region said Thursday.
AP - Vice President Dick Cheney said Thursday that he sees no reason for President George W. Bush to pre-emptively pardon anyone at the CIA involved in harsh interrogations of suspected terrorists. "I don't have any reason to believe that anybody in the agency did anything illegal," he said.
AP - Prosecutors said Thursday that investigators found 100 signed checks worth $173 million in Bernard Madoff's office desk that he was ready to send out to his closest family and friends at the time of his arrest last month in what is alleged to be largest financial fraud in history.
Reuters - The U.N. Security Council called for an immediate ceasefire in the Gaza Strip but Israeli warplanes launched intermittent attacks on Friday.
Reuters - President-elect Barack Obama warned on Thursday the U.S. economy could stay mired in recession for years without bold action and he urged lawmakers to work day and night to pass a massive stimulus plan.
Reuters - Financial giant Citigroup Inc will support a proposal in Congress to rewrite U.S. bankruptcy law to help troubled mortgage borrowers avoid foreclosure, Chief Executive Vikram Pandit said on Thursday.
Reuters - A legislative committee on Thursday recommended the impeachment of Illinois Gov. Rod Blagojevich, citing widespread abuse of power including allegations he tried to sell the U.S. Senate seat vacated by President-elect Barack Obama.
Reuters - Al Qaeda's operations chief in Pakistan and a top aide are believed to be dead, a U.S. counterterrorism official said on Thursday, in what appeared to be the latest results of a campaign targeting the militant group's leadership.
Reuters - President-elect Barack Obama named Tim Kaine as head of the Democratic Party on Thursday, rewarding an early supporter with a high-profile political post even as he continues to serve as Virginia governor.
Reuters - Europe on Friday looked for a swift restoration of gas supplies, after striking a deal with Moscow on monitoring gas shipments via Ukraine that have been halted by a rancorous pricing dispute with Kiev.
AFP - Israel was under intense pressure Friday to end its two-week-old offensive in the Gaza Strip after the UN Security Council called for an immediate ceasefire as the death toll from the war rose past 760.
AFP - Hopes for a quick resumption of Russian gas supplies to Europe were rising Friday after Russia agreed on the terms for the deployment of monitors in Ukraine.
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