Congratulations to Fortune Magazine, July 24, 2006, for having the “guts” to dethrone Jack Welch’s autocratic management leadership practices in Betsy Morris’s article……….
Titled, Sorry, Jack……….Welch’s Rules for Winning Don’t Work Any More Once upon a time, there was a route to success that corporate
America agreed on. But in today’s fast-changing landscape, that old formula is getting tired. And, a search is on for......the New Rules. Management by Intimidation – The Old Rules – The 80’s & 90’s – Early 2000’s
For over two decades, I worked under the “Old Rules” of the Welsh Management Style directly witnessing CEO’s, CFO’s, COO’s, CIO’s and many senior leader men role-model Directive and Autocratic leadership styles which left me feeling like the little kid in the fable, “The Emperor Has No Clothes” (was I the only one seeing the emotional abuse and bullying of employees all around me?) For example, I worked in an export division of a Fortune 500 corporation, which adopted the management philosophy of “management-by-walking around” (with clipboard), tallying who was caught talking to colleagues, using the bathroom too often, or using the telephone for personal reasons. It could easily have been dubbed, “management by fear and reprisal.”
It is no surprise that the high turnover rate, low morale and decreasing productivity of this facility led to its closing within three years.
In 1999, Jack Welch was named, “manager of the century” earned from brilliantly influencing U.S. leaders to reduce the “fat” out of organizations by downsizing, restructuring, resizing, or right sizing organizations by utilizing stack ranking of employees and eliminating all perceived unproductive, unprofitable facilities, practices, and people! The Directive, Authoritative mantra and rebel yell became “real men make their numbers!” Donald Trump echoes this same management philosophy with his trademark, “You’re Fired!”
The New Millenium – New Age Paradigm Shift – Old Rules/ New Rules
In my article, Managing the CCC’s,........Constant Change Chaos, Sharing Ideas, Summer 2006, I describe the impact of the decades of male dominated management by fear, staff reductions, and restructuring organizations and ask the question, where has all this led us?
The simple answer: by the time when we found out where “slash and cut,” had led us, many of the questions changed,….. the world economy changed, ……and our employees became generations which cannot be managed by intimidation. We also have new questions such as…… “How can we find good people and keep them”…… “How do we find new customers and retain them?”…. “How can we compete with foreign markets?” The old Welch rules no longer work; they had us so in-focused on “cleaning up our fat” that many of us forgot to talk to our customers!
Sample of Old Rules Outlined in Betsy Morris’ article titled, Sorry Jack…
- Directive, Authoritative Managers & Leaders
- Stack Rank Employees, Eliminate Them
- Rank Your Players; go with the A’s – Forget the B’s & C’s Eliminate the D’s
& E’s
- Shareholders Rule! Impress them!
A New Age of Management and Leadership Will Demand:
New Rule: Participative, Facilitative Managers & Leaders
New Rule: Inspiring Employees
New Rule: Hiring Passionate People & Training Skills & Knowledge
New Rule: Placing the Customer as King - Ask Them What They Think!
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The key questions become……………….how can the new rules get implemented, who is best suited to transition corporate America? Gender Research Data: Women Make Better Leaders and Managers
Research data tells us historically that directive and authoritative leadership styles produce effective, short term results BUT in the long-term produce less productivity and disenfranchised employees.
In 2001, Lawrence A. Pfaff and Associates, a Michigan-based human resource consulting firm, issued a press release, having done a five-year study of the management and leadership skills of male and female mangers. The first two studies were reported extensively in the press in early 1995 and 1996 (e.g., Inc., Business Week, Working Woman, Across the Board, Detroit Free Press, etc.) Dr. Larry Pfaff reported:
Now, we have over five years of data and the results are more convincing than ever. Once again, female managers (at all levels) outscored the men,” said Pfaff. “Female managers – as rated by their bosses, themselves and the people who work for them – were rated significantly better than their male counterparts. This difference extends beyond the softer skills such as communication, feedback and empowerment to such areas as decisiveness, planning and setting standards.” The study, conducted over 5 years from 1993 to 1998, shows significant differences in the leadership skill levels practiced by male and female managers in 20 different skill areas. Women rated significantly higher in 14 out of the 20 areas studied! The study included 2,482 managers from 459 organizations across 19 states. Seven Reasons Women Managers/Leaders Outperform Their Male Counterparts:
In addition to the Pfaff research, I spent over 20 years in business, and was led by only 2 really great leaders which were both women! My experience, accompanied by consulting studies of best-practices of peak-performing leaders in the field of a Fortune 500 Financial Services organization validated the Pfaff research that female leaders possess these top 7 dynamic skills:
1) Communication – Verbal and Listening
Women allow time for employees to express opinions,
share ideas, and discuss performance issues (in individual
and group interactions) and supports employees upwardly.
2) Sets Clear Goals and Expectations
Women ensure that individuals know what they are expected
to do, implements clear direction and provides their
expectations in writing – they set high standards
by encouraging people to do their best and provide
them the resources to be successful.
3) Coaches employees consistently to improve their performance
and manages each employee by honoring his diversity
and identifying learning and working styles.
Uses coaching tools and follow-up documentation
to monitor employee progressand they follow up with progress
reviews.
4) Recognition – Women sincerely and consistently recognize
success of individual
and team performance success.
5) Teamwork – Women encourage employees to talk to each
other, share successes gained from knowledge to improve
individual success.
6) Facilitates Change – Women inform individuals of changes
and they explain “why” and discusses ways to work through
and overcome obstacles; they ask for employee input to
support change.
In summary, the New Rules of business clearly indicate a need to collaborate with employees and customers, learn about their needs and become innovative and creative in delivering to those needs; therefore, key is No. 7 reason why women leaders have superior skills according to research. Female leaders demonstrate a:
7) Participative/Approachable Style – Employees are comfortable
talking about issues
with a woman. Women leaders asks for input from employees
and are open to new ideas for getting work accomplished, and
will make necessary changes as a result of input from staff.
The Imagination Economy – Fortune, July 10, 2006 When looking at the “New Age Rules” of Management and leadership, it is clear that women must be called upon more than ever before to lead in the New Imagination Economy, described as innovative, creative……Left-brained logical rigor has been the foundation of economic growth for more than 300 years. Most people instinctively rebel at the notion that touchy-feeliness could power the greatest economy on earth. ….The future will bring industries we can’t imagine and jobs which we lack the vocabulary to describe…………American workers need a new formula for raising their living standard. Experience says they’ll find one. But they need it soon. Watching out for it, discerning it early, and jumping on it—whatever it may be—has become one of the most important things we must do.
Yet, this is not original, who better has role modeled this type of thinking than Colleen Barrett, President and Chief Operating Officer of Southwest Airlines, based in Dallas, Texas, known as the Queen of Hearts…………creative, imaginative, profitable, with a dedicated, loyal workforce which is constantly challenged by Colleen to implement more originality all the time!
Formula for Performance – Never Acknowledged by Old Corporate America
In my article, Feelings Drive the Real Bottom-Line in Organizations, Spring, 06 Sharing Ideas Magazine, I shared the strategically key performance formula:
Skills + Knowledge + Feelings = Performance
Authoritative, directive dominated organizations are extremely good at hiring for skills and knowledge but have rejected the Feelings part of the formula as “weak minded” and right brained…….not for real men!
Employee Evolution – New Rules for the New Worker
In their new book, The New American Workplace, James O’Toole & Edward E. Lawler III, makes the case for a “high involvement,” in which employees get a say in management of their own tasks and there’s a strong sense of a “supportive community” at work. They argue that too many executives still treat employees as an expense rather than an asset.
I go further and suggest that in the New Rule Book of managing employees: Employees are neither to be regarded as “expenses” or “assets” but real “resource partnerships.” Generation Xers and Gen Y’s will only be attracted to and retained by corporations who treat them this way.
Call to Action:
Currently, women represent 50% of the management workforce (mid-level) but only about 10% at the top. The reasons for this are complex but one screams out: Women have not been privy to the “Good Old Boy Network”……………….
The research documents it, the US economy demands it, and the infrastructure of corporations whose glass ceilings are crystal clear must confront their own “Good Old Boy Club” with the truth of the New Age/New Rules. Corporate America MUST RECRUIT and learn from the skills of talented women leaders; The New Imagination Economic future demands changes immediately if the USA is to command an economic spot in the world economy!
The innate management and leadership skills of female leaders as evidenced by statistical research data can and must be learned by men…… women are excellent role-models, facilitators and trainers who can teach them!
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Peggy Pattison, Author, Speaker, is an acknowledged expert in management/leadership, KISSuccess™ Performance Solutions (a peak-performing management training series), and the author of “At First You Cry…And, Then You Fly!” and Your Power Formula to Success, http://www.peggypattison.com