Behaviour Impacts the Choices You Make

Visual Courtesy: The GOODVIBE.CO
Visual Courtesy: The GOODVIBE.CO
Often leaders are in a tough situation and faced with tough choices.

A key role of a leader is to make decisions. In other words exercise their choice based on evaluating all the facts available to them and factoring in the impact of that choice on the long-term strategy. Whilst many are able to have that line-of-sight often times there is a knee-jerk reaction.

This reaction comes about from the individual leader’s behaviour.  A leader’s daily habit is formed through the behaviour expressed. Unknowingly many a leader displays leadership traits that set the cultural tone through behaviour. If the leader is in survival mode—fear & flight—then choice comes across in behaviour as one that ensures self-preservation. What that means is that there is indecisiveness and inordinate delays on critical decisions. On the other hand if the leader has strong engagement, both at the C level and operational levels, then choice exercised would be expressed as a best-case scenario based one.

As leaders how can we ensure our behaviour matches what we say?

As the saying goes—lead by example. There’s no better way than to set an example, by doing what you want others to do. What this means is that one has to get one’s hands dirty but getting into execution and influencing the desired output. This sends a very strong message to all in terms of culture and expected behaviour.

This is more so important in the Asian context where employees behave as they see their bosses do.

As leaders how can we get the engagement?

Getting employee engagement is hard. Not impossible but hard. You can’t make all the people happy all the time. You can make some people happy some of the time. So it is with getting employees to be engaged.

As a leader it’s critical to have an open door relationship with your operational leadership team and actually practice it. If the operational leadership team has to always make an appointment to discuss an issue or an idea, then it’s not open door. On the contrary, the message communicated is that the leader of the organization is not interested.

The impact of such behaviour affects choices greatly.

Lack of regular interaction and access to the C suite leadership coupled with lack of ownership within the C suite, of critical organizational initiatives, leads to:

  • Lack of morale
  • Lowering of trust (in the leadership)
  • Questioning the time, energy & effort (spent) on critical initiatives

Ending in the organization losing the operational leaders and losing its way.

Is your organization showing any of these?

If yes, it’s time to have a very open, no-holds barred, heart-to-heart chat with the concerned leaders and to put the facts on the table for the leadership to imbibe, evaluate and choose wisely for the long-term benefit of the organization.

 

What Happens When Leadership Dies

Visual Courtesy: www.pininterest.com
Visual Courtesy: http://www.pininterest.com

This post was sparked by an excellent article on this subject by an expert
Moyra Mackie who I respect tremendously for her insights into leadership development. In her recent article—Where leadership goes to die—Fear and (self-loathing)in the C-suite– Moyra deftly links data to the impact of leadership failures and how it can be avoided.

Her article made me think of the importance and impact leadership has on an organization’s purpose—its’ very reason for being in existence– and its attitude in pursuing and delivering that purpose.

Today if any organization is not seriously evaluating its leadership and the effectiveness of that leadership then it’s simply fooling itself.

Strategy is as good as its execution—goes the saying.

But in developing an effective strategy listening and leading from the front are two key elements that are instrumental in creating a positive or
can-do attitude. It’s this kind of attitude that galvanise people, providing them with a cause, a bigger purpose over and above the revenue targets and cost efficiency that delivers results and, more importantly, create stories that are shared  all through the organizations’ eco-system and adds hugely to its reputation.

Do leaders really understand what leadership actually is?

In the course of my career in various industry sectors across Asia, I have noticed how leaders fail in their understanding of leadership due to some of the issues highlighted by Ms. Mackie in her article. From an organizational perspective such failure results in critical leadership gaps which leaves them paralyzed or, worse still, broken in the long-run without any warning.

The critical gaps are:

  1. Lack of strategic business understanding:

Arises from a self-denial behaviour, with regards to inability in understanding business purpose and needs beyond the P&L, and in enlisting necessary support. Resulting in creating a self-inflicted isolation and being dis-engaged.

  1. A survival not growth focus approach on projects:

Flowing from the isolated approach key projects are directed on a survival-mode manner i.e. cost-cutting and higher short-term profits at any cost and not from generating a planned effective growth in the long run.

  1. Lack of clarity and direction to the next level down:

A survival-mode approach results in the inability to engage, fruitfully, in explaining the long-term benefits and results in lack of direction.

  1. Inability to connect, from the heart, and engage rank and file:

Due to the inability in explaining the long-term benefits, stemming from a lack of understanding the strategic business purpose, such leaders are unable to be authentic and speak from the heart and lose out on engaging employees for the bigger purpose of the organization.

Whilst this may read depressingly it’s not a scenario that cannot be changed provided one is willing to make the change. Accept and acknowledging the help you, as a leader need. Be courageous to ask for that help from the team. This impact positively on the respect your team have for you and, in fact, builds respect as you are reaching out for their expertise and showing them the value you have for them.

Being vulnerable by asking for help will not reduce your leadership respect. On the contrary it will increase the same and have a positive rippling effect across the organization.

 

I’d love to know your story on leadership. Do share here.

Every moment of your business has a fresh beginning

Visual Courtesy: www.successimg.com
Visual Courtesy: http://www.successimg.com

Doing the same thing day in day out brings about routine. Whilst a routine is great in generating efficiency, the flip side is that it makes us lose lateral thinking or what I call joining the strategic dots.

From time to time it’s helpful to simply put a bit of emotional distance between the daily needs of the business and our functional role in order to get some
blue-sky thinking going.

What this does is that it helps generate the links in joining the dots between strategy and tactics to result.

As T.S; Elliot said,” Every moment is a fresh beginning”.

In our present day world of information overload, constant connectivity and erratic business and economic climate, the times can be quite overwhelming. More so the need to have some off or down-time to have clarity of thought and come back with a fresh beginning.

Whether we are running our own business or we are a corporate manager the commonality is ensuring success in our strategy and daily tactics in business.

In this process you need to continually review your operations strategically and refresh your business strategy.

Here’s 5 ways to give your business that fresh beginning.

  1. REVIEW: Undertake a simple review of how the business operations are performing against plans. Are the specific activities bringing the desired results or not?
  2. EXPLORE: The areas of operations that are not delivering results, look at process, strategy and tactics initiated. Is something missing? Would you do something differently? Explore other solutions that may not seem to be the norm, but probably could have significant impact in a longer term.
  3. NEGOTIATE: In any organization, often times, there is a conflict between the strategic direction and the necessary tactics required. Having reviewed and explored options that may be more effective, you would have to present a probable solution tactfully. You’d have to influence your senior team in order to ensure their compliance so as to be able to deliver on the solution.
  4. EXECUTE: A strategy is as good as its execution. Sometimes, the best plans fail due to bad execution.  So when executing a new solution, keep a close eye on the input and reactions and be adept and flexible enough to react and change as you and your team carry out the execution.
  5. WIN: Finally, get ready to win and enjoy the success that comes in. Throughout the process, it’s crucial that you keep a positive attitude that communicates confidence to your team and your clients/customers. Such positivity would rub off during negotiation and execution and bring you achievement of your targeted plans.

I’d be delighted to know how helpful you found this post for your work. Do share your comments and tips.

Can you see the elephant in the room?

Visual Courtesy: www.zazzle.com
Visual Courtesy: http://www.zazzle.com

My earlier post– Does Islamic finance have an economic and societal valuebrought about a query on how we can create change, within current organizations in the Islamic finance sector, in undertaking business activities where societal benefits are the primary focus.

The starting point for this is to acknowledge the need for change.

Given the rapid changes that have resulted from financial, economic and natural crises coupled with technology adoption and usage the environment within which a business operates has undergone significant changes. Using business tools that worked in the past will not give better or same results.  The regular world of business as one had known is no longer in play.

Visual Courtesy: A presentation by Carlos Marchi—VP Sales & Marketing at LinkActiv
Visual Courtesy: A presentation by Carlos Marchi—VP Sales & Marketing at LinkActiv

We have to realise and accept that the Islamic finance sector, like other industries, is being disrupted and without accepting the need to change, it would be next to impossible for businesses to be sustainable. Add to this the necessity of having a very strong understanding of the market or a business’s target group needs, with regards for the community to grow economically, and you have a scenario where approaching profitability through just the lens of increasing short-term dollar value will simply not cut it any more.

This brings us back to the query that came in—How can we create the change to review existing business practices and models in order to put profitability from societal benefits as the purpose of a business.

Here’s my 5-Steps-To-Sustainability Cycle:

5_Steps-To Sustainability Cycle
5_Steps-To Sustainability Cycle

What this model does is to help in showing the stakeholders two key views:

  1. The increase in profitability and sustainability of the business over a longer period of time vis-à-vis higher short-term gains.
  2. The impact, in terms of economic growth of connected businesses of its partners and vendors along with development t of users who make up the community in which the business operates.

These two views, when projected through the lens of the dollar-value, enable a strong business case to be discussed at the board level. From here it’s the level of strategic understanding and willingness to change, at the leadership level, that impact on the final decision.

Will we see the elephant in the room and address it?

 

Does Islamic finance have an economic and societal value?

Visual Courtesy: www.quotes.lifehack.org
Visual Courtesy: http://www.quotes.lifehack.org

As the world reels from a continuous series of financial, economic, humanitarian and natural crisis’s, the world of Islamic finance is growing. In the past decade the various projected global industry growth figures show this industry sector to be going up, up and away. Yet if one were to co-relate this growth with social development a direct correlation is, as yet, hard to find.

Is there an anomaly?

Within the global Islamic finance industry the strain of growth is starting to tell on the business models in use as issues of talent, technology and socially responsible investments are now the topics of discussion in industry conferences. Couple this with the developments occurring in the mainstream finance industry where areas like social responsible investment, alternative currency  and crowdfunding are drawing the organizations to view the disruptions taking place and review their business strategies and models.

On ground, technology has empowered people to be able to seek intellectual, financial and managerial collaborations, generating entrepreneurship and a mushrooming of small businesses. The financial industry, as a whole, is looking at the way investment is changing and the way finance is being run.

Against such a backdrop Islamic finance is beginning to look isolated and bereft of a clearly defined economic and societal value.

Decades ago as Islamic finance came in, as an alternative financial system, organizations took the system for use within the regulatory environment that existed. Regulations changed over time to accommodate market sentiments and with those changes organizations seemed to focus on compliance and not on the purpose of their business.

Therein is the anomaly!

The global industry undertook Islamic finance activities based on their then business models and processes. Models that focused on shareholder return of dollar value as primary objective not social or community development and, thus, it was business-as-usual.

Is there light at the end of the tunnel?

The many financial, environmental, economic and sociopolitical crises, coupled with the advancement and adoption of technology, over the past 20 odd years has brought about seismic shifts in the common man’s buying behaviour. Trust in organizations has eroded given the many scandals. A clearly recorded increase on the dependency of word-of-mouth reference, with regards to engaging with organizations, has come about. Resulting in organizations needing to have specific competencies that simply weren’t in existence 20 years ago. Social media usage has resulted in organizations having to depict simply and authentically their business purpose.

Institutional business has come to the realization that it’s people who make the deals. People who want to work with credible, honest and trustworthy counterparts. Trust has come a full circle and is now at a premium. At the same time, Boards are driving organizations to be more socially responsible and to ensure that the eco-system where a concerned business operates benefits from the services of the organization.

This provides an ideal setting for Islamic finance which, inherently, has economic and societal benefit in-built in its ethical use. Let me clarify through an example—a conventional bank would evaluate various parameters when opening a new branch, in a remote area, including cost-recovery and present a cost-benefit analysis to its board when recommending opening a new branch. The decision would be based on the return its investment would earn and the period in which it would occur. Currently an Islamic bank or financial institution would be doing the same.

But therein is the opportunity!

For an Islamic financial institution the purpose of business is not profit but providing, ethical, financial service to the community. Profit is a secondary objective coming after the benefit to the community has been established. Thus an Islamic finance institution opening a new branch in a remote area should be driven by the societal responsibility of providing services in an area where no such service is available. This involves disrupting the current business models and thinking fresh on the purpose of an Islamic financial institutions business and developing strategy from it to generate required financial gains.

Such gains will encompass developing the eco-system in which the business operates bringing about economic and societal benefit that would not only benefit Muslims but the society at large and enable Islamic finance to show a tangible and distinctive value-benefit.

 

I’d be delighted to learn of your views on the opportunity that the global Islamic finance industry has and how organizations could capitalize on the same. Please feel free to share your observations.

 

 

Should business strategy of organizations in the Islamic finance industry have a clearly understood social & community benefit?