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Integrity in Leadership - WCP 2014

Showing Integrity, Leadership and Respect.

Leadership goes hand in hand with Trust and Respect and to build a reputation for Trust and Respect you need to demonstrate a high level of Integrity, however, integrity can be a contradiction in today’s workplace.

The label of integrity is hard to earn and yet it can be lost in a single action. It is not something we consciously look for in someone but we tend to notice when it is missing.

Once we regularly consider our own actions and evaluate how they align with our personal values, intentions, and deeds, we recognise the changes we need to make and thus we start to make a contribution to the world of integrity.

We are each responsible for our own integrity and the best leaders create cultures that nourish the integrity of others.

At its root of the word integrity we find; to “integer” and “integrate”, it speaks of unity and wholeness. We still think of the word in this original sense when we talk about “structural integrity,” the quality that enables a building to stand and that which, when lost, lets a building collapse under its own weight.

As US Rabbi Jonathan Omer-Man said, “Integrity is the ability to listen to the place inside oneself that doesn’t change, even though the life that carries it may change.”

Most of us evolve and develop throughout our journey as leaders. Our character and our integrity are remembered long after the glitter of the deals has faded.

Having integrity leads to the building of trust as we practice honest conversations with others. Integrity is a positive deposit in the bank of our connections.

Trust is an inherent part of integrity. People need to trust that leadership is serving everyone’s best interest and leadership needs to trust that team members are fulfilling their own responsibilities.

HOW DO WE IMPROVE LEADERSHIP INTEGRITY?

“The strength of a nation derives from the integrity of the home.” Confucius

This possibly varies person to person but the following points, in my opinion, cover integrity within leadership.

Respect – practice integrity with others by treating them with respect — even when they do not live up to your personal expectations of them. Recognise that your own standards can be subject to question. We get and give the best of each other in a culture that supports respect.

Reliability – This is a more functional definition of integrity and a basic practice of a natural leader. It includes showing a little humility, keeping promises, meeting important deadlines and being there when people need you.

Sharing – It’s important for leaders to clearly articulate their values and expectation of integrity. Share these values as a culture-building objective as to how we collectively define integrity.

Responsibility – We need to acknowledge our responsibility for every one of our actions. It demonstrates that we are not using other people or external events as the cause of our problems. Wherever possible blame no one, accept the behaviour of others and the circumstances of an action as a given, and move forward.

Considered Actions – This is the leader’s obligation to take the right action. It means embodying our integral principles and accepting the consequences for our actions.

Thinking 360° – Think of the whole not just this one problem or decision, integrity can be viewed as a culture of wholeness, of being able to support all of the components for the long term good of all.

I have to admit that I have on numerous occasions made decisions or taken a course of action that would not withstand scrutiny of the points above. This is where self-awareness comes in and that question; “What is the correct course?” and remember life is a journey, good and bad……we can only do our best as we see it at the time!

Corporate responsibility and integrity make strange if not incompatible bed fellows and over the years have formed much discussion over the dinner table. In this article I am really only trying to examine questions of integrity in leadership.

Examining integrity at an intellectual level seems to raise more questions than answers. Mistakes will always made and occasionally poor judgement will be shown. Importantly we are now aware of some of the questions and it’s what we learn and how we adapt to our mistakes that we should now contemplate.

“The supreme quality for leadership is unquestionably integrity. Without it, no real success is possible, no matter whether it is on a section gang, a football field, in an army, or in an office.” – Dwight D. Eisenhower

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By, Neil Steggall

 The Barking Mad Blog

Business Advice with Bite

http://wp.me/p401Wv-jp

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Transition - WCP 2014

Strength Through Diversity & Change

Diversity and Change are catalysts to growth and development, to new ideas and to improvement throughout the world in which we live. Darwin’s evolution of the species demonstrated how through diversity and change the world is able to constantly evolve and improve.

Why then are so many of us suspicious of both diversity and change, why do we fight to protect the status quo? Is it as simple as a fear of the unknown? It brings to mind Franklin D Roosevelt’s famous speech “….the only thing we have to fear is…fear itself”

If we are to get the best outcome from any human endeavour we require continuing diversity and change at all levels. Diversity of age, experience, education, gender, race, outlook and expectation, imagine a team encompassing such diversity tackling the big and complex issues within your business. Can you envision the team’s potency and its potential to drive change?

Increasingly business is global, multi-cultural and can no longer assume the gender of decision makers on either buy or sell side transactions. Successful teams and organisations need to reflect this diversity and change to embrace it.

Managing change requires both vision and courage but the rewards are enormous, when we think of Apple today we think of iPhone’s and iPad’s first and computers second. This reflects their ability and capacity to change and yet it still overlooks their leading edge position as a global leader in integrated retailing.

The days of proud “national manufacturers” are a fading memory as global organisations position differing operations in the global location most suited. R&D may take place in California, IP is held in Ireland, manufacturing close to the source of labour or raw materials. Management and staff are drawn from universities and institutions from all points of the globe and across many faculties.

A modern corporate board is just as likely to include a female graduate in PP&E as a male holding an MBA. Shareholders are increasingly focused on “whole of business” concept as opposed to the out dated “short term profit” position. The CBA board must now be wishing it could wind back the clock a few years to avoid its current publicity.

Change isn’t always good, some mistakes will always be made but hand in hand with diversity we are now more open to the faster assessment of ideas and their success or failure and prepared to act quickly to recognise mistakes, clear them out and move forward.

Don’t just accept diversity and change, embrace them, use them and remember:-

“….the only thing we have to fear is…fear itself” – Franklin D Roosevelt    

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By, Neil Steggall

 The Barking Mad Blog

Business Advice with Bite

http://wp.me/p401Wv-ji

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Win-Win WCP 2014

 

How To Become A Great Negotiator

Most of our successful leaders and entrepreneurs are great negotiators. The skill of negotiation is recognised as one of the important ingredients of success and yet so few of us truly understand what it is that makes a great negotiator.

It is often said that children are great negotiators; they are persistent and return to their objective time and time again, attempting differing angles to win their parents around. From here it often goes wrong as well-meaning parents impose rules and suggest that this constant negotiation is both bad manners and plain naughty!

Recovering from childhood scaring we recognise that negotiations are a fact of life, we are constantly negotiating in both our personal and professional lives.

Those that are not strong negotiators tend to fall into one of two camps: the first dislike or avoid negotiating and this can lead to problems in resolving issues or progressing their careers, the second see the first rule of negotiating as the need to “win”.

Both attitudes are problematic the first is both self-defeating and confusing to others and the second is always going to leave behind a bruised “loser” – neither is a good outcome.

There are THREE key steps essential to becoming a great negotiator:

Applying these three negotiation processes will significantly increase the impact and success of your future negotiations.

1.0 NEGOTIATING ATTITUDE

What you bring to the table in terms of your attitude and approach will have a significant bearing on the outcome, you should always:

Show Respect & Trust

See the other team or person as an equal and treat them with the courtesy and respect you would expect, it’s surprising how this opens real discussion.

Listen to what isn’t said

Look carefully at what the other side is really saying, this will tell you what they really want.

Remain Flexible

Successful negotiators view each key point from multiple perspectives; they are flexible in which points to concede to achieve the end game. Be prepared and willing to change.

Target Continuity

Always view the other team as a valuable, respected and long term contact. Armed with this attitude you will never be tempted to “rip off” the other team.

Win-Win Outcomes

This is the ultimate outcome in any negotiation; it will leave all parties satisfied and lead to productive, successful long term relationships. Sound groundwork, an open mind and a fair approach will find more win-wins than you would at first imagine.

2.0 THE NEGOTIATION

A successful negotiation is usually based upon 3 distinct stages: Preparation, Negotiation and Documentation. Each stage is of equal importance; a great negotiator knows this and allows for it when planning.

Preparation

“By failing to prepare, you are preparing to fail.” (Benjamin Franklin).

The key to preparation is to place yourself mentally into the other party’s position. Assess where they are at within the negotiation, what they want, what they need and what they can live with. Understand their motivation, perspective and opinions on the topic. What are the minimum conditions they can accept and at what point are they likely “to walk away”.

Define your own goals and objectives, analyse what you must have, what you can concede and where your fall-back position is. Develop several potential options; identify your best possible outcome and your least attractive “fall back” position.

Search for “win-win” solutions

Negotiating

Be relaxed, respectful and most importantly be prepared to really hear what is being said and retain an open mind.

Listen rather than speak, silence is your friend. Search for common points of agreement rather than the differences; agree these early to develop trust and comfort.

After the initial discussion take the initiative and start the actual negotiation by tabling your offer. This initial offer forms a subconscious reference point, a middle ground if you like. If you are buying start low and if you are selling start high.

An excellent tactic is to make multiple offers each with different terms and conditions this demonstrates your flexibility whilst the other party’s response to the choices tells you much about what they really want or need.

Always show “Samurai Sympathy”; that is do not box the other party into a corner from which they cannot escape without a loss of face.

Once you have established the other parties bona fides and you are satisfied they want to reach a genuine solution don’t be afraid to be the first to concede points but do so in a “give and take” scenario. Know what you want to take. Focus on the end point rather than the current position. Being pro-active will build trust and goodwill.

Showing respect for the other party does not mean that you cannot show strength or participate in the theatre of negotiating. If unreasonable demands or proposals are put forward demonstrate your dissatisfaction, show your surprise and your disappointment strongly but do not allow any genuine anger or frustration to develop, remain calm and remain in control.

Don’t be in a hurry, abide by your timetable (especially when buying), confrontations will occur, board approval may need to be sought, lawyers consulted all of which are normal. A great negotiator allows for this, allows time for parties to cool off when discussion becomes overheated. If tension builds, ask if you and your team can have 10 minutes alone to discuss the situation, be pro-active, remain flexible and remember your objective.

In the closing stages of a negotiation the great negotiator seeks a creative solution, they look beyond the box, they expand the available options rather than fight the detail and they stand firm to their position. This is the time to bring everything you have learnt into play in the best win-win solution you can offer.

3.0 DOCUMENTATION

I have seen people leave a negotiation “pumped-up” by the result and ready to party only to find out a day or two later that the other party has had a “change of mind” and called the deal off.

After reaching agreement around the table it is best to re-iterate the key points of the agreement, hand write them have two copies made and each party sign them off. This isn’t a binding agreement but it is a moral statement.

Confirm the agreement in a written Heads of Agreement and get this document signed within 24 hours of the meeting. The HOA should cover any conditions precedent and a timeline to contracts.

Call the other party as soon as appropriate after the meeting to thank them for their time and professionalism, work with them and strengthen the bonds for the future.

Finally food for thought…………….

“Let us never negotiate out of fear, but let us never fear to negotiate”

Unknown Quote        

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By, Neil Steggall

 The Barking Mad Blog

Business Advice with Bite

http://wp.me/p401Wv-jd

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Why is my business stalling?

Business Stalls - WCP 2014

If you were to receive a substantial capital investment into your business would you engage outside expertise to help further develop and improve your business? There are few business leaders I know who would seriously answer no to this question, which if you really think it through is very odd.

Why is it odd? Because if you need help after receiving a substantial capital investment you needed it even more before that receipt!

The conundrum is the reluctance of small to mid-cap businesses to spend money on the sound professional advice which they need. Within larger organisations external advice is sourced as a matter of course; marketing, strategic, structural, legal and accounting advice is outsourced on a regular basis.

A recent Forbes article stated:-

  1. 98% of Small-Caps or Start-Ups seeking equity investment fail to attract it

  2. Over 95% of Small-Caps or Start-Ups fail to proffer a business or investment plan suitable to allow a measured investment decision or to attract funding.

These statistics hurt because for a relatively small investment these businesses could have been funded.

As an example at WCP we are frequently sent IM’s or funding requests from entrepreneurs seeking to fund growth or a start-up and after reading  through pages of technical and product detail we seriously have to ask: “what exactly does your business do and how are revenues generated?”

The idea may be sound but the presentation is poor. I and many others like me simply do not have the time to invest in learning what potential might lay behind a poor document. As a consequence I miss out on making good investments and the entrepreneur misses out on a capital raising.

A very high percentage, 90%+ of new client enquiries we receive at WCP are from businesses which have generally:-

  1. Left their approach to us too late

  2. Lack a sufficient skill base or framework to meet their business goals

  3. Run perilously short of working capital

  4. Failed to develop a professional support structure

Most of these businesses are sound, most of the entrepreneurs are intelligent, most can be helped but why did they not seek professional external advice from day one?

After asking the question many times over the past 25 years there are two main answers given:

  1. There are so many shonky “consultants” we were sceptical

  2. We did not think we could carry the expenditure

Both easily addressed! Take the last question first; you simply cannot afford to build your business in the dark, budget for professional assistance and let that assistance enhance your revenues. As to the first question do your research, how long has the consultancy been in business, will it provide testimonials, what are its core competencies, which team member will handle your business and how good a fit is that person?

Good professional advice should be a self-funding proposition. Seeking advice and engaging a consultant is not an admission of failure it is the corporate equivalent of using your doctor, dentist, tailor or hairdresser – you use them to stay on top!

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By, Neil Steggall

 The Barking Mad Blog

Business Advice with Bite

http://wp.me/p401Wv-iV

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Connect with me on LinkedIn, Twitter or Wardour Capital:

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Crash - WCP 2014

 “How important is profit?” this question in one form or another is one of the most common questions we receive from start-up owners or potential start-ups and surprisingly it’s not a simple answer.

Some time ago I sat down for a chat with a highly intelligent friend who had recently joined the board of a mid-sized family company. “I just don’t get it” she said “everyone tells me the business is booming, sales are up, profits are up yet from what I read the company is broke”.

My friend had sat down with the half year results and looked at the first two quarters performance against budget. Revenues were up by around 35%, Gross Margin was tracking, as a percentage, around 5% better than budget and operating expenses were around 11% lower than budget leaving a very healthy EBIT compared to budget and management applauding themselves all round.

Where is the problem? I hear you ask.

Cash or rather the lack of it was the problem. As revenues and revenue projections grew the funds allocated to the raw materials and finished goods needed to service such growth had increased exponentially as had the debtor’s ledger.

Yes the business was producing more at lower cost and selling every item produced at a profit but amongst the excitement no one had calculated the impact on future cash flows.

If you achieve an EBIT of 20% (which is on the generous side) it means you have to outlay costs, in advance, of at least $0.80c in every dollar of anticipated revenue. You may offset this to some extent by negotiating an extension to trading terms with your creditors but that is a very slippery slope and best avoided.

If you sell your product to a major retail chain, they will look to pay you in 60 days from the end of the month in which you invoice them. So you could easily wait 60 to 90 days for payment. For every $10 of widgets you sell them each month your cost is $8 and if you carry that and the subsequent monthly sales until you are paid, you are out of pocket by $24 before you receive a cent. On top of which you have had to lift your finished goods to 60 days stock to meet varying demand and raw materials by 45 days so you are roughly $50 out of pocket as you wait for the $10 to be paid of which you retain $2 profit or EBIT.

Yes you are still profitable but your short term cash burn is exceeding income and without a rethink your fast growing, profitable enterprise is going to crash.

“A profitable business without a cash flow is dead in all but name!”

My friend could see where the company was heading whilst the sales manager was elated by high revenues, the production manager proud of the COGS and the operations manager satisfied by the low level of OPEX. In all businesses good cash flow management and budgeting is essential.

There were several funding options available to secure this company’s future once the threat was identified. But within 60 days the company may have been in turmoil and no funder wants to lend into a panic.

So in answer to the question; profit is very important but it is just one of what I call “The Four Pillars of Business”: Revenue, Cost, Profit and Cash; and always remember that whilst the first three are very important CASH IS ALWAYS KING.

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By, Neil Steggall

 The Barking Mad Blog

Business Advice with Bite

http://wp.me/p401Wv-iL

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Connect with me on LinkedIn, Twitter or Wardour Capital:

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Procrastination V4 - WCP 2014

Why do we Procrastinate? ……Well, I’ll tell you tomorrow!!

Procrastination is a problem for the sufferer, it’s a problem for business and it can ruin cohesive team work. It is a universal problem in businesses of all sizes and yet we rarely discuss it.

“Procrastination is the bad habit of putting off until the day after tomorrow what should have been done the day before yesterday.” Napoleon Hill

I was surprised when reading an article in Psychology Today, to find it claiming that around 20 percent of people chronically avoid putting their heads down and getting on with the job. In fact these people actively look for distractions!

This seemed a little excessive until I looked at my own behaviour and that of my immediate team. I recognised that we all occasionally put off certain actions despite our valuing efficiency, team work and timelines as much as we do. The big question is, why?

Sometimes we put off those mundane things – like reconfiguring our computer files, organising our social media, reconciling bank accounts, or updating our web site. But often we procrastinate on bigger things that require more time, more commitment, and put us at an increased risk of failing, looking foolish or feeling emotionally bruised. Things like finalising our business plan, confronting a complex new task that threatens us, or not pursuing a long held ambition.

It appears procrastinators are not born as procrastinators; rather we are trained to some extent from birth. That’s the general consensus of psychological research into the art of procrastinating. One increasingly popular theory is that procrastination has its roots in childhood, where it functioned as a means of early of rebellion against authority figures or as apathy in the presence of a strong parental pressure to perform.

Doctor Joseph Ferrari, associate professor of psychology at De Paul University in Chicago, suggests that there are three types of procrastinators in the world:

  1. The arousal types, who get a thrill from rushing through projects at the last minute, whether they come out on top or not.

  2. The avoiders, who don’t want to get to the end of any given project because the fear of change keeps them paralysed.

  3. The decisional procrastinators, who simply cannot make any decisive choices because they can’t bear the results of their actions.

I find it interesting that these three types of procrastinators apparently use multiple “tools” to help them procrastinate whilst still appearing to function. Understanding which type of procrastinator an employee is and recognizing which of the following methods they use to procrastinate will help us to work with them and hopefully overcome the problem.

“Procrastination is like a credit card: it’s a lot of fun until you get the bill.” Christopher Parker

As with most management issues, understanding the cause is 90% of the solution and there is much we can do to help the procrastinator overcome their problem.

Let’s look at the common causes:

Perfectionism

We don’t always have to do things exceptionally well, often “good enough” is quite enough. The ingrained desire to get everything 100% correct every time can lead to a paralysing fear of failure and multiple revisions that just waste time. A phrase which springs to mind is “analysis paralysis”.

As John Henry Newman, Anglican Deacon and author, once said, “A man would do nothing if he waited until he could do it so well that no one could find fault.”

Fear of Failure

Fear of failure is a major factor for some. Failure can be seen as having far-reaching implications. For some it’s how they perceive themselves and how they think they are perceived by others.

On the other hand, if this same person breaks all records, they fear all future projects will be held to a much higher standard. Some people are willing to do anything, including nothing, in order to avoid being taken out of their comfort zone.

Being Overwhelmed

If a project is complex, the individual steps may seem endless! Instead of seeing individual steps and taking them, the procrastinator thinks they can see all the steps that lead to completion but has no idea which one to take.

If someone is overwhelmed by targets (either the ones they’ve set for themselves or the ones they’ve been given by others), they may find themselves feeling unable to disassemble tasks into constituent components. As a result they simply don’t know where to start.

This feeling of helplessness usually feeds upon itself until it eats away at their resolve, making workplace distractions a welcome escape. This leads to a loss of focus and thus motivation.

One method of overcoming this form of procrastination is to create an action list that’s prioritised and reduces a complex project into smaller, more achievable steps.

Prioritisation

What if someone simply can’t prioritise? Chances are they will spend hours working on non-essential tasks and fooling themselves into thinking that everything is okay.

Unlike those who get overwhelmed, those who can’t prioritise correctly don’t see anything wrong. These are the people that spend an hour deciding which font to use on the monthly report but don’t leave time to get the actual writing done.

One symptom of this type of procrastination is filling hours with “activity” rather than “action”. Often the excuse of being “flat out” is used, when really; this is just another form of procrastination.

As with the overwhelmed procrastinator the method of overcoming this form of procrastination is to create an action list that’s prioritised and reduces a complex project into smaller, more achievable steps.

Lying to Cover

Procrastinators are constantly lying to themselves. They lie to justify their failures (“Oh the System was down”). They lie to justify their successes (“Oh Fred did most of the work”). They lie to justify their justifications (“I’m sorry about the inventory debacle; it’s the warehouse, they screwed up again”).

Some procrastinators just don’t know how to not lie. Learning responsibility is the key to beating back the lies and overcoming procrastination. Help them take ownership and live up to their actions.

Lack of Motivation

Goals have to be worthwhile and achievable or managers and staff are probably going to give up on them. If the task isn’t interesting enough, intellectually satisfying enough or it’s simply dull, a procrastinator’s passion for the task is going to evaporate and they’ll find themselves looking for ways to occupy their minds. Suddenly the sun pouring in through the window becomes an irresistible magnet and they find themselves offering to head out and buy coffees for the team.

If you find this happening a lot, restructure the tasks so that they excite or add a personal reward to the end of every project. For example show real appreciation and praise if you get the monthly finance report on your desk by mid-day.

In a properly functioning and caring work environment management and or team members would ideally recognise the indications of procrastination and work together to break the cycle.

If as suggested procrastination is learned, then with help it can be unlearned. By looking out for and identifying procrastination as it’s happening, you can discreetly help by restructuring work habits, adding motivation and removing distractions.

I am convinced that a simple solution lies in planning and time management. Personally I always work from a rolling weekly task list and each day I write down the 5 things that I absolutely must do that day. This keeps me on the straight and narrow when my mind starts to wander.

Procrastination costs business a great deal in lost productivity and we should work to fix it but don’t expect overnight success. Lifelong habits are difficult to overcome and take time but the first step is always a hard yet positive move.

As Dr Ferrari says in his book “Still Procrastinating: The No Regrets Guide to Getting Things Done”:-

“Eliminating procrastination from our lives is like trying to stop a moving train; it’s not easy.”

Now avoid moving trains and….do it quickly, don’t procrastinate!

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By, Neil Steggall

 The Barking Mad Blog

Business Advice with Bite

http://wp.me/p401Wv-iD

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Connect with me on LinkedIn, Twitter or Wardour Capital:

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Leadership

5 Traits of a Great Leader

Leadership is an extraordinary skill so much so that it is often difficult to define that certain something which differentiates the great from a good leader.

 When assessing investment opportunities we always look at the leadership first and foremost, particularly in start-ups. To guide us we have developed the 5 Key Trait test. It is rare to find all of the traits in one person but when we do we know we have a winner.

 So what are the 5 Key Traits?

 1. Simplicity of Vision.

Einstein once said that if a theory couldn’t be explained simply it was probably false and much the same can be said of a business. A leader needs to convince investors, employees, bankers and customers that their vision is sound and each person needs to be able to understand, believe in and take that vision on board the first time they hear it. This sounds simple but it it’s not, indeed it is extremely rare, most leaders become bogged down in detail and blur the vision.

 2. Persistence.

An exceptional leader is motivated, single minded and above all persistent. We look for leaders who when knocked down get up and get back on track. Taking Churchill’s advice they “Never, Never, Never, Give Up.”

In today’s competitive and constantly challenging business environment the great leader quickly recognises potential corporate risks or opportunities, assesses the situation and develops strategies to move forward. This style of entrepreneur isn’t a talker they are doers and they deliver.

 3. Focus.

It is so easy to be distracted when managing a dynamic, growing business, as CEO you are deluged with ideas about finance, marketing, stakeholders and more. It takes extraordinary courage and focus to identify the small number of key actions which absolutely must be completed for the greater good of the venture, to stick with those actions and to complete them perfectly.

The more focused a leader is the more comfortable we are in believing this person can and will deliver results.

4. Culture.

Again a great leader understands and manages the value of culture. They care about the details which build corporate culture and brands; they manage those details because intuitively they know the importance of the seemingly small in building large. You can never be too important to let go of this detail. Look as Steve Jobs and Apple, how he micro managed form and function to build culture, brand and following. Those small details became the definition of his corporation.

 5. Magnetism.

Great corporations are built by great leaders who build the strongest teams. A great leader, supported by a strong team will always succeed. To attract the best people to a business, prospective employees need to believe in its leadership, to want to work within it, to help share and build the vision. To achieve this a great leader needs a special charisma, something we call magnetism.

Leadership is complex and ever changing but understanding these 5 Key Traits has proved helpful to our company when identifying great leadership.

By, Neil Steggall

 The Barking Mad Blog

Business Advice with Bite

http://wp.me/p401Wv-iy

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Passion

 

We are often told that great leadership and success flows from the passionate vision held by the entrepreneur or CEO and how they followed their dream fuelling their passions as the company prospered.

I may be a sceptic but this raises two questions in my mind, firstly what is it about “grey widgets” that fuelled such passion and secondly is the passion story really true or a heroic post script?

Passion (let’s set aside the boy meets girl and….) is a much confused state, for instance is it about the activity or the outcome? Let me give you a couple of examples:-

  • As a teenager I really enjoyed dismantling and reassembling cars and motor cycles. Learning all I could about the intricate detail of what enabled these machines to function was a wonder to me. Wow a natural engineer claimed my parents!

  • As a mature adult I turned to cooking in my spare time, restaurant quality food perfectly plated. Wow, open a restaurant my friends cried!

Let me be clear I not passionate about engineering or restaurants but I am passionate about taking a complex problem and delivering solutions. I am not rewarded by the repair or the cooking but by the solution, one could say I am indifferent to the action but passionate about the outcome.

Today I watched a Barista making my regular coffee, her face a study in concentration yet as she placed the coffee on the table in from of me her face was a picture of happy satisfaction. Whether she realises it or not her passion is in pleasing people.

Back to our successful entrepreneurs and CEO’s; are they really passionate about the production of “grey widgets” or are they in fact passionate about a task well done? I think it is generally the latter!

Perhaps we should look at what turns us on rather than our passions – a new take on the Chicken & Egg?

Neil Steggall

Barking Mad with Neil Steggall

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Business Advice with Bite

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New Ideas - wcp 2014

Leader or Manager? – Vive la Différence!

The terms leadership and management are often used to describe the same person or even used as though the words are interchangeable. They are not. The differences between leadership and management are vast and varied and placing the wrong person in the wrong position could have dire consequences for your business.

Leaders are rarely great managers and vice versa. Both are much needed and both have very different skill sets needed to build and sustain a successful modern business.

In his book: Management, the Individual and Society, Peter Drucker stated that “Management is doing things right; leadership is doing the right things.” Whilst the phrasing of this is a little “clunky” I have thought about the quote over many years and I cannot really improve upon it.

There is no hierarchy between the two but it is important to recognise which is which as early as possible both to ensure each individual receives the best training and support and to plan where in your organisational structure these Leaders and Managers are going to fit. Understanding who your leaders and managers are will assist in strengthening your organisation and its corporate culture and morale.

Good leaders have a unique ability to rally team members around a vision. Their belief in the vision is so strong, and they are so passionate about achieving it that team members will naturally want to follow them. Leaders also tend to be willing to take risks in pursuit of the vision.

Managers, however, are far more adept at executing the vision in a very precise and systematic way, taking responsibility for the infrastructure and detail of the vision and working with the team to see the job done. Managers are usually very risk-adverse.

It is the combination of these two skill sets working in harmony which often differentiates two seemingly similar organisations.

I have often likened leaders & managers to composers and conductors. The composer creates the dream or vision and the conductor delivers it.

By, Neil Steggall

 

The Barking Mad Blog

Business Advice with Bite

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 www.wardourcapital.com

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Business Clown - WCP 2014

The Essence of Public Speaking

This is a further article in my “Essence of Series” Again it is short pithy and to the point – a mere Essence.

I was recently asked to comment on a speech still “under construction”, my colleague, a technically brilliant and a generally funny person, had detailed graphs, charts, photographs and a final wrap up slide show but he lacked The Essence of a good presentation without which you will leave your audience FLAT

To truly connect you need to fully deliver on three levels: Emotion, Novelty, and something Memorable.

1. Show Emotion

It’s so easy given the structured way in which we are trained to work to think that a similar format will work in a presentation: WRONG!

Forget the data, statistics, buzzwords, and marketing jargon and firstly connect with your audience emotionally.  The communicative connection to emotion is well documented and has been covered in detail in several of my blog articles over the past year. Initially engage emotionally by sharing something about you, something that demonstrates your vulnerability and thus your human side and follow this up with a strong emotional connection by demonstrating your passion for the topic or product you are addressing. The most successful and engaging communicators are those who can and do wear their passions on their sleeves and engage their audience emotionally.

2. Introduce Novelty

There are many ways to describe a pencil, or to say no, or ask for another chance, if you want to be successful find the most novel way of saying it. My Twitter account is @barkingmadblog and as with all other users I am limited to describing myself in 140 characters. A tough ask so I differentiate by using a photo of a cute dog at a computer, it’s a novel and subtle way of saying something more about me and our business – check it out! See what you think.

Last week I clicked “un-subscribe” from a site and was taken through to an exit page where the saddest and most lovable dog, with melting eyes, asked if I really wanted to leave him. Yes I did but I am still thinking and telling you about it – I bet many others turn back at that point, great novelty value!

Novelty doesn’t have to be vaudeville just present your case in a manner the audience doesn’t expect!

3. Be Memorable

Remember the lovable dog which tried to hold onto my subscription? Well I un-subscribed from about 6 sites that day and I cannot remember a single thing about the other five. Same action, same click, same outcome but one stays in my mind.

Now this is how your presentation or speech has to be structured, it HAS TO BE MEMORABLE!

These 3 winning points above do not detract from your subject. When you are asked to speak on a topic the organiser isn’t asking you for a slide show with facts and words they want an engaged audience that will leave having learnt lots of facts, tips and ideas, whilst enjoying a great time.

That way the audience returns, they recommend the series to their friends and colleagues and you get asked back at an even higher fee $$$$.

By, Neil Steggall

 

The Barking Mad Blog

Business Advice with Bite

http://wp.me/p401Wv-gz

 www.wardourcapital.com

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3 Short Steps to Success 

3 Short Steps to Success - WCP 2014

Some years ago, a small number of our organisations global executives, myself included,  met in Buenos Aires to engage in an intimate three day intensive workshop with a “management guru” who was at that time considered to be one of the world’s greatest “thinkers”.

This was my second session with this guy in 18 months and I knew he would drive us hard and along unconventional routes. On the second day and without warning he asked “Neil take a pad and paper into the interview room and over the next 30 minutes prepare in as few words as you can, a presentation on  – what you need to be a success – you have to be fully prepared to discuss and defend your theory on your return”……WOW!

Shaken and nervous I found myself 45 minutes later presenting for the first time my “3 Short Steps to Success”.

I hear you ask: “Can it really be so easy as to define a path to Success in 3 Short Steps?”

Yes. I believe it can. I believe I later used this 3 Short Steps to Success method to achieve my first real “non-corporate business success” and I believe you can use it too. The lesson I was taught in Buenos Aires is that often the simple path is best.

Note I used the word believe three times in the previous sentence. It’s not bad writing or bad editing its positive discrimination, more on belief later.

There are three core common factors in achieving anything of significance be it in sporting, academic, professional or business arenas.

THE VISION:

“Dreaming, after all, is a form of planning. –Gloria Steinem”

If you know what you want to achieve, if you can close your eyes and envisage it, taste it, feel it then you are already well along the first step to success. You don’t have to know the detail but you need to understand on a subconscious level where you are going.

I am sure Ray Kroc didn’t wake up one morning and say “hey I am going to build the world’s largest burger chain today”. But I am sure that as an American of Czech origin he knew he wanted his part of the American dream and that dream was something, a vision or dream, he carried with him every moment of every day.

The Success Vision you develop is about your destination rather than the journey. To a large extent your destination will determine the journey.

The first important step is to envisage that destination because if you don’t know where you are going you will probably never arrive!

THE BELIEF:

“Believe you can and you’re halfway there. –Theodore Roosevelt” 

Once you have developed the vision you have to develop the belief in your ability to complete the journey, to follow that vision through to journeys end.

Part of building belief is to break the journey down in your mind into manageable chunks, to start to fill out your vision, understand it and believe in it implicitly.

Essentially you have determined where you are going and you have to train yourself, body, mind and soul to reach that end point.

We each train our bodies and minds in different ways. In this example we are reinforcing our belief in a vision of our making. Quite a task but by imagining scenarios, dreaming, thinking through our vision that vision starts to become reality and when that happens you develop a belief in your vision and your vision starts to become reality.

THE PERISCOPE:

“Certain things catch your eye, but pursue only those that capture the heart. – Ancient Indian Proverb”

Once you have locked in Vision and Belief the journey begins and the specifics of how success is going to be achieved come into play.

When I first started speaking on the 3 Steps to Success I used the phrase “Keeping  Your Periscope Up”  to describe a subconscious search that would be constantly scanning the horizon to  highlight the occasional “blips” of potential opportunity.

Imagine as you go about your day to day business carrying your vision and belief whilst the “Periscope” of your mind is scanning the horizon and filtering the signals to uncover opportunity.  Over a number of years this “Periscope & Filter” approach has thrown up for me many more quality opportunities than I have found or devised brainstorming in the office or any other method.

Let’s return to Ray Kroc once again. Do you think when in 1954 as a kitchen equipment salesman he wandered into the MacDonald brothers store in San Bernardino, California thinking of buying it? No. But he had his Vision and he had self-belief and his periscope radar “pinged” loudly..

His had been a long, tough, journey, he was 52 years old and yet his periscope was up and operating. The fact that this small burger store was so popular as to need 8 new “multi-mixers” started him thinking, the fact that the store was so efficient fed that thought process and his Vision saw a chain of burger outlets.

Never lose sight of the fact that success is many things to many people. A good friend of mine was an acclaimed AFL player for a major team yet he never played in a Grand Final. I asked one day how he felt about that and he said “every time I walked onto the ground and heard our supporters roar, I couldn’t believe I was so lucky or so proud. Win lose or draw I was doing what I had dreamt of”.

This is success. My friend later enjoyed a successful off field business career and now he throws his still considerable energy into chairing a not for profit organisation. A successful life lived well.

Two favourite quotes of mine which have relevance here are:

“The most difficult thing is the decision to act, the rest is merely tenacity”. –Amelia Earhart

Limitations live only in our minds.  But if we use our imaginations, our possibilities become limitless.” –Jamie Paolinetti

 

By, Neil Steggall

The Barking Mad Blog

SMS Advice with Bite

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www.wardourcapital.com

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Winning WCP 2013

The Power of Marginal Gains

I first heard of the power of marginal gains as a student. Back then “the power” of ideas such as marginal gains, marginal pricing,  marginal costing, marginal probability and compound interest were all being used in business studies to show how something didn’t have to be “wiz, bang, new, fast and you beaut” to make a difference. It was power man!

Compounding interest has continued to fascinate me and occasionally I while away the odd hour on Excel running compounding options. Truly fascinating…..really! The largest deal I ever closed was when as a young executive I convinced the board of a major American company to supply us on the basis of marginal costing.

Recently on a quiet Saturday (I know it’s sad) I googled “The Power of Marginal Gains” expecting to find a plethora of MBA theses on the subject but instead I found page after page of British cycling triumphs and a guy called Dave Brailsford – Now Sir Dave all thanks to his marginal gains!

British Cycling…….Why?

No British cyclist had ever won the Tour de France, but as the new General Manager and Performance Director for Team Sky (Great Britain’s professional cycling team), that’s what Brailsford was asked to do.

His approach was simple.

Brailsford believed in a concept that he referred to as the “aggregation of marginal gains.” He explained it as the “1 percent margin for improvement in everything you do.” His belief was that if you improved every area related to cycling by just 1 percent, then those small gains would add up to remarkable improvement.

They started by optimizing the things you might expect: the nutrition of riders, their weekly training program, the ergonomics of the bike seat, and the weight of the tires.

But Brailsford and his team didn’t stop there. They searched for 1 percent improvements in tiny areas that were overlooked by almost everyone else: discovering the pillow that offered the best sleep and taking it with them to hotels, testing for the most effective type of massage gel, and teaching riders the best way to wash their hands to avoid infection. They searched for 1 percent improvements everywhere.

Brailsford believed that if they could successfully execute this strategy, then Team Sky would be in a position to win the Tour de France in five years’ time.

He was wrong. They won it in three years.

In 2012, Team Sky rider Sir Bradley Wiggins became the first British cyclist to win the Tour de France. That same year, Brailsford coached the British cycling team at the 2012 Olympic Games and dominated the competition by winning 70 percent of the gold medals available.

In 2013, Team Sky repeated their feat by winning the Tour de France again, this time with rider Chris Froome. Many have referred to the British cycling feats in the Olympics and the Tour de France over the past 10 years as the most successful run in modern cycling history.

And now for the important question: what can we learn from Brailsford’s approach?

The Aggregation of Marginal Gains

It’s so easy to overestimate the importance of one defining moment and underestimate the value of making better decisions on a daily basis.

Almost every habit that you have — good or bad — is the result of many small decisions over time.

And yet, how easily we forget this when we want to make a change.

So often we convince ourselves that change is only meaningful if there is some large, visible outcome associated with it. Whether it is losing weight, building a business, travelling the world or any other goal, we often put pressure on ourselves to make some earth-shattering improvement that everyone will talk about.

Meanwhile, improving by just 1 percent isn’t notable (and sometimes it isn’t even noticeable). But it can be just as meaningful, especially over time.

And from what I can tell, this pattern works the same way in reverse (in other words an aggregation of marginal losses) a 1 percent decline here and there — that eventually leads to a problem.

In the beginning, there is basically no difference between making a choice that is 1% better or 1% worse. (In other words, it won’t impact you very much today.) But as time goes on, these small improvements or declines compound and you suddenly find a very big gap between people who make slightly better decisions on a daily basis and those who don’t. This is why small choices (“I’ll take fries with that”) don’t make much of a difference at the time, but add up over a period.

The Bottom Line

Success is a few simple disciplines, practised every day; while failure is simply a few errors in judgement, repeated every day.

Most people love to talk about success (and life in general) as an event. We talk about losing 50 pounds or building a successful business as if they are events. But the truth is that most of the significant things in life aren’t stand-alone events, but rather the sum of all the moments when we chose to do things 1 percent better or 1 percent worse. Aggregating these marginal gains makes a difference.

There is enormous power in small steady wins. This is why the tortoise usually beats the rabbit, the system is greater than the goal.

Where are the 1 percent improvements in your life?

Neil Steggall

The Barking Mad Blog

SME Advice with Bite

http://wp.me/p401Wv-di

www.wardourcapital.com

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Great-Teams - Win - WCP 1014

Great Teams Win!

And Keep on Winning

We Aussies know all about teams.

We have the AFL the NRL, the Premier League, not to mention cricket, hockey, swimming, tennis, netball, bowls and of course the local drinking team.

Every one of us passionately follows a team or two so of course we know all about team work…..don’t we?

In management speak we come across the words team, teamwork, team building, team targets every day without giving a very much thought as to what a team really is and how it functions.

The most simplistic and common dictionary definition of a team is: “to come together to achieve a common goal”. Essentially the objective of teamwork is to achieve more than the sum total of the individual people involved.

Pretty simple hey? And yet recently I came across two comments which demonstrated to me that not everyone finds the team concept so simple.

The first comment was in the form of a question to a SME advice column in a major daily newspaper – “I recently started a small business with a partner and he doesn’t work as hard as me. How can I get him to lift his input?”

The second was a question asked during a seminar “As a team leader I find it very difficult getting everyone in a team to contribute equally; what do you recommend?”

In both instances my thought was that these guys just don’t understand team work!

Let’s return to the definition and to that “common goal”. The first thing a good team leader does is to define the “common goal” the individual tasks out and best match the team members to the task. A simple team check list can help such as:-

  • Very clearly and simply define the Common Goal

  • Determine the best strategies to achieve the Common Goal

  • Identify the individual tasks to achieve the Common Goal

  • Clearly communicate  the Common Goal and the individual tasks to the team

  • Discuss the strategies and tasks with the team and allow for questions and input

  • Analyse the individual team members, their skills and their responses to the Common Goal

  • Allocate the individual tasks to team members. Ensure each member understand what the whole team is doing

  • Lead but allow autonomy within tasks

  • Remember you may be the leader but your objective is for THE TEAM to be successful

  • Build RESPECT & TRUST with each member for the different skills and contributions they bring to the team

Sporting teams are very good examples of team work; as the batsmen toil in the sun chalking up a hundred runs do they resent the rest of the team sitting back in the pavilion? In a soccer game the goal keeper spends most of his time standing around whereas the forwards are running several kilometres, constantly tackling opposing players to gain control of the ball.

These sporting teams understand the essence of team work; it takes different members with different skills to tackle different tasks at differing times to deliver the very best result.

In my experience the more diverse the skills and personalities the more effective the team, be it a corporate management team, taskforce or board. I once served on a board with a co member of ferocious intellect, at times he and I arm-wrestled over finances and governance for an hour or so before reaching agreement. This was frustrating but never personal because the board had that magic ingredient RESPECT.

Without respect no team will function and without leadership no team will build and retain respect.

In summary there are as many differing “types of teams” as there are differing individuals and in theory no one type is better than another. The difference is in the quality of leadership, the clear communication of The Common Goal and the individual tasks task and most importantly the RESPECT & TRUST of the team members.

If you have respect and trust then yes   you are part of a team. If its lacking you are a part of a group of people……..quite a different beast!

Neil Steggall

The Barking Mad Blog

SME Advice with Bite!

Article shortlink:    http://wp.me/p401Wv-cI       

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Entrepreneurs

The Naked Entrepreneur!

“to thine own self be true……………”

Respect and Trust are both vitally important qualities which we look for in an entrepreneur, and I fear both are currently being discarded in the rush for blatant self promotion.

Do you remember when the UK’s Jamie Oliver first burst onto our TV screens as “The Naked Chef”? He was fully clothed but he had stripped away the unnecessary bullsh*t and mystery surrounding cooking. The world fell in love with Jamie a self-confessed dyslexic, a school drop-out from Essex – he was simply and wonderfully himself!

As I read on-line profiles I feel emasculated by the fact that every second person is now “an expert on….”; “an author of” or at the very least an “international public speaker”. Some of these are well known and how lucky we are to have such easy access to the skills and knowledge which they have gained over long and successful careers. Many others and dare I say the majority, are if not bogus, then plain humbug!

Strong words and yet transparency and authenticity are more than just corporate “buzz words” they are amongst the real attributes that B2B’s and consumers now expect from the companies and people they do business with.

People want honesty in business and expect SME’s and corporations to provide real transparency and authenticity. They also want to know and understand the real people behind the profiles, websites, logos, social media and print.

Be open when describing yourself or your business. If your business is in its first year and you are struggling to make ends meet say so! Potential customers will often give a new business “a go”. How often have you said “hey let’s try that new pizza place”? Don’t invent a “construct” designed to make you look older, bigger, better, busier.

Be yourself! Just started – Johns Plumbing, I want to help! It’s a compelling message.

Today “Corporate Image” is less about status, qualifications, large offices and expensive stationary and much more about the real people, real skills and real results. Over the past week I had three meetings in coffee shops with clients, each of which is highly successful and controls a multinational business. Only one of them has a permanent office, shared with his accountant. Today working from home with a telephone answered or a query dealt with by a virtual assistant can be sufficient. 

Most businesses and consumers today don’t want to hear how clever you are or how important you are or how impressive your office is; they want to know if you can do the job and deliver the result at a price they are prepared to pay.

So rather than building an impossibly impressive on-line profile, simply state the facts; you are warm, human, competent, trustworthy and able to deliver results! It’s about engaging, sharing your passions, and talking about your product or service as it relates to other people and situations.

Here are some ways to show your inner Naked Entrepreneur:

  • Be Genuine: Be you, yourself, the real you and be proud to show it. Strip away the unnecessary bullsh*t and mystery!

  • Share your passions: Show what, how and why you are excited, if you have a dream share it.

  • Share your corporate culture: It says a great deal about who you are and the values you and your team share.

  • Admit your imperfections & failures: We have all at some stage failed, stretched the truth, let people down or just plain stuffed up – I have done all and more. It’s human. How you recover, learn and move forward is the real factor by which you are judged.

  • Show your expertise: Include your skills, knowledge and if wanted, qualifications on your profiles but do so to inform not to impress.

  • Be subtle: Yes you are brilliant, yes your brand is huge and of course your staff and customers adore you but do you need to tell us quite so loudly or so frequently.

  • Understand Yourself: Know your strengths, weaknesses and your limitations. For example I am a dreadful waffler and not the world’s best operational manager but when sat down free of distractions I am a fair theorist, thinker and strategist!

A reputation for being “a good person, hard working and determined to deliver” is probably close to perfection and almost naked!

Do you ever wonder why those global gurus who travel the world to sell their message of how to grow rich and famous in 30 days don’t have to stay home and manage their investment portfolios which must by now be huge? I have always wondered.

I guess they care about us so much they are prepared to travel 48 weeks a year just to help.

By Neil Steggall

Failed Wastrel

The Barking Mad Blog

SME Advice with Bite!

http://wp.me/p401Wv-cm

www.wardourcapital.com

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Integrity 2 WCP

Leading with Integrity

Leadership goes hand in hand with the power team of Trust and Respect. To build a reputation for Trust and Respect you need to demonstrate a high level of Integrity and unfortunately integrity can be a contradiction in today’s workplace.

Some years ago I had to dismiss a team member who was great at his job and he and his wife had become good family friends. The reason was simple; he had made a fatal error of judgement and in doing so had, to the wider team, lost his integrity.

The label of integrity is hard to earn and yet it can be lost in a single action. I am not even sure it is something we consciously look for in someone but we notice when it is missing.

It is only after we have considered our own actions, evaluating how they align with our personal values, intentions, and deeds, that we are most likely to make a contribution of integrity to the world.

We are each responsible for our own integrity and the best leaders create cultures that nourish the integrity of others.

At its root of the word integrity we find; to “integer” and “integrate”, it speaks of unity and wholeness. We still think of the word in this original sense when we talk about “structural integrity,” the quality that enables a building to stand and that, when lost, lets a building collapse under its own weight.

As US Rabbi Jonathon Omer-Man said, “Integrity is the ability to listen to the place inside oneself that doesn’t change, even though the life that carries it may change.”

Most of us evolve and develop throughout our journey as leaders. Our character and our integrity are remembered long after the glitter of the deals has faded.

Having integrity leads to the building of trust as we practice honest conversations with others. Integrity is a positive deposit in the bank of our connections.

Trust is an inherent part of integrity. People need to trust that leadership is serving everyone’s best interest and leadership needs to trust that team members are fulfilling their own responsibilities.

HOW DO WE IMPROVE LEADERSHIP INTEGRITY?

This possibly varies person to person but the following points, in my opinion, cover integrity within leadership.

  • Respect – practice integrity with others by treating them with respect — even when they do not live up to your personal expectations of them. Recognise that your own standards can be subject to question. We get and give the best of each other in a culture that supports respect.

  • Reliability – This is a more functional definition of integrity and a basic practise of a natural leader. It includes showing a little humility, keeping promises, meeting important deadlines and being there when people need you.

  • Sharing – It’s important for leaders to clearly articulate their values and expectation of integrity. Share these values as a culture-building objective as to how we collectively define integrity.

  • Responsibility – We need to acknowledge our responsibility for every one of our actions. It demonstrates that we are not using other people or external events as the cause of our problems. Wherever possible blame no one, accept the behaviour of others and the circumstances of an action as a given, and move forward.

  • Considered Actions – This is the leader’s obligation to take the right action. It means embodying our integral principles and accepting the consequences for our actions.

  • Thinking 360° – Think of the whole not just this one problem or decision, integrity can be viewed as a culture of wholeness, of being able to support all of the components for the long term good of all.

I have to admit that I have on numerous occasions made decisions or taken a course of action that would not withstand scrutiny of the points above. This is where self-awareness comes in and that question; “What is the correct course?” and remember life is a journey, good and bad……we can only do our best as we see it at the time!

Corporate responsibility and integrity make strange if not incompatible bed fellows and over the years have formed much discussion over the dinner table. In this article I am really only trying to examine questions of integrity in leadership.

Examining integrity at an intellectual level seems to raise more questions than answers. Mistakes will always made and occasionally poor judgement will be shown. Importantly we are now aware of some of the questions and it’s what we learn and how we adapt to our mistakes that we should now contemplate.

Neil Steggall

http://wp.me/p401Wv-bj

The Barking Mad Blog

Business Advice with Bite

www.wardourcapital.com

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