Do People Leave Managers or Do They Leave Companies?
My last few posts have focused a bit more on culture and leadership (or lack thereof); in today's post, I'll continue the trend with a focus on management sins. I found three separate items that I wanted to share with you, all quite interesting, some with overlap.
The first is a whitepaper I recently came across titled 7 Deadly Sins of Management™. It comes from the Management and Leadership Network (MLN) and the Center for Competitiveness (CforC). They conducted research among executives in Northern Ireland to determine if there was a common understanding or thread as to why businesses in the region fail. Apparently, there is a "management and leadership deficit"in the UK. According to their research, the following leadership behaviors cause a business to under-perform or to fail.
- Lack of vision (No desired future state identified to be working towards)
- Lack of focus (Lack of focus on the areas of the business which add most value)
- Inappropriate role model (not leading by example - actions not matching words, not open to learning, not taking ownership)
- Not close enough to the business (lack of understanding of markets, customers, staff or product evolution)
- Lack of accountability or discipline (no action for non-performance, chaotic/fire-fighting environment, too fluid)
- Lack of constancy of purpose (Not staying the course because of the distractions or opportunities which causes the “eye to be taken off the ball”)
- Too much focus on the numbers (short-termism, lack of patience, mechanistic environment, blame culture)
Without a doubt, these behaviors are 110% detrimental to any business. When there's no clarity for employees, when they see leaders fumble around trying to figure out next steps, and when they feel like leaders don't understand the business itself and what they're supposed to be doing, employees begin to question whether they want to continue to work for these folks. And worse, employees decide to leave.
The next item I found was Dr. W. Edwards Deming seven deadly diseases of western management, which he notes are:
- Lack of constancy of purpose
- Emphasis on short-term profits
- Annual rating of performance: “it is purely a lottery”
- Mobility of management (i.e., job hopping)
- Use of visible figures only, with little or no consideration of figures that are unknown or unknowable
- Excessive medical costs
- Excessive legal damage awards swelled by lawyers working on contingency fees
For any business to be transformed, for businesses to survey, clearly these diseases need to be cured. The first five are his original "diseases," and he added the other two later.
And finally, the third item is a book by Dr. John Collis, The Seven Fatal Management Sins | Understanding and Avoiding Managerial Malpractice, in which he calls out and defines the following sins:
- The character flaw: erosion of trust and integrity
- Blind ambition: focus more on managing your career than managing the organization
- Short-term scare mentality: managing for survival
- Indecisiveness: unclear on when and who decides
- Blurred focus: the fuzzy vision
- Employees perceived as an expense, not as an investment
- Managing unchecked: lack of real accountability
Pundits actually ponder if people really leave managers, not companies. With traits like those listed, why would an employee want to stay. An interesting observation is that none of these three really put a heavy focus on employee development; each one stated only one sin that pertained to the employee, although, ultimately, they all impact employees,
From these lists, some of the deal-breaker behaviors for me - ones that I've witnessed fairly consistently over the years, unfortunately - include:
- Lack of vision
- Lack of focus/constancy of purpose
- No real accountability
- Too much focus on the numbers
- Not leading by example
- Lack of trust and integrity
- Managing for survival
Based on your experience, what else would you add to the sins outlined by the three sources I've noted? What sins have you seen your managers or leadership team commit? What are your deal breakers?
So much of what we call management consists of making it difficult for people to work. -Peter Drucker
Most Read IRIS Articles of the Week: April 17-21
Here’s a look at the Top 11 Most Viewed Articles of the Week on IRIS.xyz, April 17-21, 2017
Click the headline to read the full article. Enjoy!
Like so many others in the industry, I was wrong. For years, I was certain that the bull market was nearing its end. I thought the market was over-extended, and that, surely, the wild equities run was coming to an end. But everyone else was bullish, and perhaps rightfully so. And while I’ve watched equities continue on their spectacular rise, I do think now is the time (really!) to put a hedge in place. Here’s why. Here’s how. — Adam Patti
The realities for fixed income investors have changed. How is this being reflected in markets? Bond investing has become increasingly difficult over the past decade. Markets have been heavily distorted by ultra-low interest rates and quantitative easing, as well as by extreme risk aversion in response to the global economic crisis and the eurozone debt crisis. — Nick Gartside
Is being a financial advisor worth it? I am an optimistic person and I encourage other people to keep a positive mental attitude (shout-out to Napoleon Hill and W. Clement Stone). However, by taking a good, hard look at the negatives in life, we can successfully pivot towards the positive aspects that will help us achieve our goals. — James Pollard
How do you treat one of your most valued, existing clients? Here’s a list of some things that come to mind. — Andrew Sobel
According to many advisors I speak with, the only clients that leave are those who have died. And while attrition may not be a big problem in this industry, I have to assume that at least a few clients change advisors without doing so via the funeral home. — Julie Littlechild
I was talking with an advisor last week about how to get into conversations about what he does. He was relaying the story of going jogging with a friend who could be a good client but is, more importantly, connected to a large network of people who fit this advisors ideal client description. — Stephen Wershing
Big picture thinkers are not unicorns - rare and mystical. And they were not born with the innate ability to think big. They do, however, pay attention to the broader landscape and take the time to think, analyze and evaluate. — Jill Houtman and Danny Domenighini
Your reputation is who you are and how you show up, Monday to Monday®. Many of us take our image and reputation for granted. Give careful thought to the kind of reputation that you would be proud of Monday to Monday® and that would resonate with your purpose and priorities. — Stacey Hanke
The generational changing of the guard is a fact of life as old as time. Young replaces old in responsibility, importance, control and culture. Outside of the family, the workplace is perhaps where this is seen most regularly by most people. — Shirley Engelmeier
Next time you hear your prospects give you price objections, it’s not because of the price. The give price objections because they don’t know the full value proposition that they’d be paying for. And it’s not based on their need, or your features and functions. It’s based on the buying criteria they want to meet internally. — Sofia Carter
Last week we wrote about the economic rationale behind going independent vs. moving to another major firm as an employee. As a follow-up topic, we thought it prudent to analyze transition packages attached to big firm moves and peel back the layers of the onion to show the components of these deals. — Louis Diamond
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