Wednesday, March 10, 2010

The NFP CEO of the future

Over the next decade the majority of existing nfp CEO's will retire. You might shrug your shoulders and say, so what, the same happened in the past decade. Probably not. Even if it did, the next generation of CEO's will face a different environment to those currently in the hot seat.

The next generation of CEO's will be faced with generational change on an unprecedented scale, with labour shortages, rising costs, reduced government funding, greater accountability and greater scrutiny from Boards of Governance.

What does your organisation need to look for when recruiting its next CEO?

Any CEO works at three levels. The first level is the governance team. The second level is external stakeholder groups and the third level is with people working or volunteering in the organisation. This is not an order of preference or priority. Most CEO's would be working with all three levels simultaneously.

When working with the governance team a CEO provides two services, the first is to provide information on the emerging external and internal environment that enables the governance group to make informed decisions. The second service is to facilitate the strategic planning process. Increasingly governance groups are comprising experienced professionals, many with considerable strategic and management experience gained in the corporate world. Such people have greater expectations of the CEO;they do not believe they are there simply to rubber stamp operational decisions. They expect to be able to question the CEO as to intent and plans and progress. The CEO of the future will need to be able to demonstrate an ability to tap into the collective wisdom of the governance group while also understanding the needs of this group.

A large part of any CEO's role is liaising with external stakeholder groups. These can range from funding bodies to end users in the community. The CEO that isolates themselves from external stakeholders does so at their own peril and to the disadvantage of the organisation. External stakeholders provide access to broad collective wisdom. They provide an indicator of the emerging environment and its potential impacts.

The third group of people that a CEO is required to work with are those employees and volunteers in an organisation. Here the key skill of the CEO is the ability to listen, to explore, to understand how systems and processes act as barriers to progress, develop more effective processes and people and nurture a pathway between vision, mission, strategy and outcomes.

What should you look for in your next CEO? Firstly the ability to learn constantly from experience. A CEO who believes they know it all is a liability. CEO's do make mistakes. Many mistakes made by CEO's are errors of judgment, bought about by their inability to sense the emerging environment or their inability to develop open and transparent channels of communication. The ability to reflect upon past errors and point to the learning and development. An understanding that they as an individual can never know all the answers and have the ability to tap into the collective wisdom of all stakeholder groups.

Look for someone able to demonstrate their ability to recognise potential and to develop that potential. This is a sign of someone able to develop trusting and respectful relationships amongst employers and volunteers. This is essential for future succession planning. It will be essential for attracting and retaining high quality employees.

Nfp organisations are a business. Yes they are mission driven, yes they often have a unique set of values; yet only those with a focus on outcomes will remain around long enough to deliver on their mission and vision. A CEO must be able to demonstrate their ability to balance revenue and costs and where necessary increase one and/or reduce the other. A CEO must be able to demonstrate a record for achieving outcomes and results consistent with strategic direction.

The challenge when recruiting your next CEO is to find someone able to demonstrate their ability at all three levels. Should your CEO turn out to be deficient in one of these three areas then the success and potential of your organisation is at risk.

Let The Journey Continue
John Coxon

Taking You From Frontline Manager to CEO

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Tuesday, March 2, 2010

The truth is not always important!

A couple of years ago I publicly slam dunked a colleague in a manner that was cruel - even though the sequence of events as reported were factual. At the time another colleague said to me, the truth isn't important, you cannot treat others in this manner. At the time I apologised for the method used (email) but not for the words used. I still believe the truth is important yet I have learned there is more than one way to speak the truth.

A few weeks back the CEO of the colleague I attacked approached me and said 'you were right, this person has been nothing but problems'. Revenge isn't sweet, it isn't about being right and I write about the experience as both a means of reflection and a way of sharing the experience for the benefit of others.

We should all aspire to tell the truth; yet sometimes the price for doing so can be high. Look at the number of whistleblowers who have lost their job, despite being supposedly protected by legislation, simply for telling the truth. I recently read a report of someone being prosecuted for posting slanderous comments online on social media. Tempting as this may be for some people, it is a practice to be avoided. Stuff you place online can come back to bite you long after you thought it had disappeared.

As a management coach a part of my role is to guide others to 'see their own truth', regardless of what I believe, it not my perspective that is important it is what the client sees that is so. When I slam dunked my colleague some time ago I neglected my hard earned coaching skills and went on the attack. Despite being right in essence, the consequences to myself were significant. While it didn't cost me any loss of revenue, I certainly damaged my personal credibility and had to work very hard to regain it.

We need to think before we speak. We don't need to think about whether we should or shouldn't; we need to think about how we should, what means will be most effective while least damaging? Regrettably the world is full of liars and cheats and while none of us is perfect, when the time comes to stand up and tell the truth. Remember this, the truth is important.

Let The Journey Continue
John Coxon

Taking You From Frontline Manager to CEO

Tuesday, February 23, 2010

How new managers gain respect

I came across this blog post on another website recently and felt it worthwhile copying both the original question and my response here for everyone to read.

Im 27 years old and got a job as a PM in a highly prestigious organization. Unfortunately, I look a bit young even for my age and every body else I am working with is at least 20 years my senior. the look on their faces when i step in the room says it all " would you like a barbie to play with,little girl?" How do i not let this get to me?

This was my response:

Your age is not the issue, nor is the lack of respect from others your issue it is their issue. Can I suggest you focus on the things you can control. You have control over your demeanour, how you behave, how you present information and how much knowledge you have. These are the things that will gain you respect - in particular how you relate to, interact with and build relationships with people.

I would like to suggest you try to identify at least one, influential old timer you can build a relationship with, develop a way to work together where you share your combined knowledge and he/she becomes a mentor. Others will see this and understand you are not coming across as a 'know all'. That you are open to learning from the experiences of others.

Let The Journey Continue
John Coxon

Taking You From Frontline Manager to CEO

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Monday, February 1, 2010

Action Centred Leadership


John Adair, British-born expert on leadership is renowned for his work on leadership and on how to motivate people.

Adair developed the action-centred leadership model, essentially three overlapping circles representing the individual, the team and the task. Effective leaders focus on all three elements. The task needs work groups or organisations to come together in a collaborative manner as often one person alone cannot acheive the outcome. The team needs constant attention to who is in the team, differing skills and experiences, personalities. Adair believed in the 'united we stand, divided we fall' principle. The individual needs must be attended to, in addition to remuneration is physical comfort and safety, recognition, being engaged in the process and a social need to share with others. Adair's model suggests that for organisations to be effective leaders need to focus on all three circles without neglecting any single one of them. Key reading - Action Centred Leadership. 1984. McGraw Hill.

Do not be fooled by the simplistic nature of Adair's model. Leadership and management is not rocket science. Leadership becomes complex for some due to an inability to understand what is expected or required of them. There is no mystery about leadership. As a leader you need to have some knowledge and understanding of the people you work with, and other stakeholders. You need to be able to motivate them in a manner that will see them work together and helping each other. This is not 'command and control'. You need to have a clear vision of the task and the desired outcome and be able to involve others in that vision. Adair's model is applicable today as it was 25 years ago. Sure the contemporary organisation, in some instances, has moved towards a flatter structure however this doesnt reduce the need for leadership. The elements of success remain the same, develop the potential of your people, create a collective vision, manage time, tasks and processes and encourage people to work together collaboratively.

If you would like help to develop the leadership capacity in your organisation please call John Coxon on +61 03 55612228 or email john@johncoxon.com.au

Let The Journey Continue
John Coxon
Taking You From Frontline Manager To CEO

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Friday, January 15, 2010

Living Out Our Expectations

For the past 80 or so years organisational managers have taken a reductionist approach to organising labour and achieving productivity. The theory being that if we understand what makes people tick, and we break down a task into its necessary component, then marry predictive behaviour with prescriptive tasks, work will done in the most efficient manner.

The benefit of hindsight and access to far greater amounts of information than ever before means that we now understand people are not machines, they do not perform in a preformatted manner and even when a task is broken down, there are often environmental factors that impact in an unpredictable way. This means we manage and work in a world of uncertainty.

Imagine arriving at work tomorrow. As you wander into work you ask someone where shall I begin? They respond, begin where you believe you will achieve the most impact. You ask who will I work with? The response is, we don't know, whoever else has an interest in the work. You ask how well will they work together? The response is, that is for the future. Finally you ask what are the work procedures? The response is, there are not any, they will evolve with time! Now you have to make some decisions. In this situation there are no correct answers. What is right is what is best for the circumstances, both known and emerging.

Would the work get done? Yes it would. Would you find the right people to work with? Yes you would. Would everything collapse and fall into a heap? Not likely. Why not? Human beings have the ability to self organise. They are able to think, they are creative and they are adaptive.

Brian Arthur in his book titled The Economy As an Evolving Complex System talks about how we make decisions based upon our expectations. This is a place somewhere between reality and fantasy land - where based upon our expectations we can convert something to reality or otherwise. For example, you arrive at work with a vision of being treated with dignity and respect. If you remain open to that vision you will behave in a manner that sees you treat others in this manner and results in you being treated as such. If on the other hand your expectation is that you will be treated indifferently then your behaviour as you walk through the door will likely be very different.

Management techniques of the past 80 years, along with an indifferent education system, have robbed people of their ability to think and causes them to duck for cover behind rules and procedures. We are scared of complexity as it requires us to adapt to an uncertain future. Yet as a species, as an individual you have the ability to work, to manage and to live in a complex environment and survive.

Today, there are millions of people in Haiti that are homeless, without water or food and without employment. Their environment, poor as it may appear, has been flattened in a devastating earthquake. Many have died and many more will die; yet many will be saved. As a community they will survive and they will rebuild. The people of Haiti have the very same abilities as you do; without the benefits. Don't tell me you need rules and regulations and procedures to enable you to work, to survive. What you need to do is develop your inherent ability to observe, to avoid harm, to adapt, to make a decision, to work with others, to the do the right thing and to achieve the best outcome.

As the Nike advt once said - Just Do It! (Please make a donation to help those in need in Haiti)

Let The Journey Continue
John Coxon

Taking You From Frontline Manager to CEO
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Saturday, December 19, 2009

Are You Passionate About Your Work?

This may seem a strange question to ask of people working in the non-profit sector where common mythology would have us believe people work in this sector due to their passion. There is a difference between being passionate about a cause and having passion for your work.

If you have no passion for your work you are simply working for wages. This can lead to disillusion and you may eventually become negative about your work. You can eventually become trapped in a vicious cycle of dislike and negative thinking; unable to be fully effective yet unable to find a way to do something different.

Check out your values. What are the things that excite you? What turns you on each morning and drives you out of bed with a spring in your step, raring to go?

Everyone has the option of choosing the work they do. In today's environment the opportunities to create your own work are limitless. By that I don't mean you must run out and start your own business, though that is an option. You might consider looking at areas of need in your organisation that you have an interest in. You might combine paid work with study and volunteer work or with part time self employment.

How can you become passionate about your work? Firstly, follow your heart. What excites you? What dominates your thoughts and conversations? Ask yourself, if you had a choice what would you love to do? Well you do have a choice and you can do what you love. Think outside the square. Today there are countless opportunities for employment. Avoid being corralled by past experience or by qualifications. Instead look to your strengths and ask yourself what you would bring to this new experience?

Shivani Gupta, author, Passion @ Work refer to this as flying like a butterfly; learning to grow beyond your own boundaries and being in charge of your own destiny. This journey begins when you do something different to what you are currently doing and you realise the world hasn't collapsed around you. You create an environment where you can learn and live and be excited.

Change isn't easy. Taking a risk is scary. So don't go it alone. Seek ideas from others. Note I said ideas rather than advice. The majority of people will advise you to stay where you are. Change is just as fearful to those that don't want to change as it is to those making the change. This means you should surround yourself with people who will be positive, will be mentors and will encourage you. People who will feed you with ideas.

Write down your goals. Establish an action plan and time frame. Face your fears and accept that you will always be fearful. Convert negative thoughts to positive alternatives. Remember you will make mistakes. These are not a sign of failure, rather they are a sign that you are experimenting and learning.

Put a little bit of 'me' into your thinking and ask yourself will what I am about to do make me happy. If not then don't do it or change something. Being wealthy is a bonus; it is not the reason for living. You and the people you help are the reason for living.

Let The Journey Continue
John Coxon
Taking You From Frontline Manager to CEO

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Monday, December 14, 2009

It's time for non-profits to bounce back

A recent report into not for profit remuneration in Australia (http://bit.ly/4LGiJw)found that in 2009 executive remuneration fell almost 2% on that of 2008. Anecdotally, well not really anecdotally, as we have emails from clients that confirm this, not for profits, over the past twelve months have battened down their hatches in other areas including professional development, bonuses and hiring of staff.

It's time to bounce back. Let's acknowledge that we have emerged from a global financial crisis in better shape than some other nations but not without cost! Let's acknowledge that there remains still some downside risk, in particular uncertainty of ongoing funding from the Commonwealth as it moves to reduce stimulus spending debt in coming years. Let's also acknowledge that continuing to operate with the battens firmly in place could allow the ship to drift onto dangerous rocks.

There comes a time when Boards of Governance, Chief Executive Officers and management teams need to stand up and be counted. That time is now. Yes you are trustees of community organisations however continuing to duck for cover will serve noone in the long term, not the community, not staff and not Government funding bodies. Every management team needs to be able to manage its way through turbulent times and it also needs to be able to identify creative ways of moving out of turbulence and into calmer waters. It is time for the Captain of the ship and the entire team of ships officers to emerge from below, take a place on the bridge and look out over the bow of the ship into the future rather than out over the stern at the past.

Many not for profits will emerge from the current financial crisis seeking a different and better way of doing business. They will seek a model that is more sustainable and less at risk of funding issues. I am prepared to project that over the next 5-8 years many will be forced to reexamine their business model and to look at alternatives forms of revenue. As the movement towards social enterprises continues to grow Government funders will also reexamine how they distribute funds. Any shortfall in Government funding in the foreseeable future will increase the demand for greater accountability by the sector. This in turn will place pressure on management teams to perform to higher standards and become more creative.

The for-profit sector will emerge from the current crisis at full tilt. The demand for employees in the for-profit sector will be insatiable over the next two decades. Not for profits will have difficulties retaining and recruiting staff. Many, many key staff will be enticed away from the sector.

How do non profits minimise the impact of these emerging events? For a start give your current management team something to get their teeth into, something that stretches and develops their potential. In other words give them a reason to stay in the sector, with your organisation. Encourage them to reinvent the future of non profit service delivery rather than asking them to maintain the past.

Encourage your managers to join the Boards of Governance of other non-profits. The sector needs collaborative alliances to move forward into the future. Your organsiation needs managers with a broad perspective of the emerging environment. Every Board of Governance needs a shake up. Too many Boards are sitting on an age old belief that they are there to be trustees of some ideal or a pot-full of old money. Communities need to learn that not for profit organsations must be operated in a business-like manner and that this requires people on the Boards able to look to the future while being mindful off, but not beholden to the past. Even centuries-old, bluestone charities will need a tsunami every couple of years if they are to maintain their level of donations.

Finally, bring your Board members, management team and staff together, frequently to talk about the future. Don't leave this discussion to the board only. The future will not be dependent upon one person, it will happen because of such collaborative activities.

Well that's my opinion. This is my final blog for 2009 for the not for profit sector. I have a parting request. If you disagree with me, or take issue then say something, respond to the blog, send me an email. Let's have some healthy and robust debate about the future.

For those that have followed this blog throughout the year, I thank you, I wish you well for the festive season, however you celebrate, and you should know that I will return in 2010. May each of you mention the word 'peace' at least once in your New Year wishes.

Let The Journey Continue
John Coxon
Taking You From Frontline Manager To CEO
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