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Study: Execs Deserve a D Grade

February 20th, 2009 @ 7:02 am

1 Comment

Categories: Management, Research, Uncategorized

Tags: Executive, Leadership, Management, Jessica Stillman

The Takeaway: These are extraordinary times in the business world and they call for extraordinary leadership. Unfortunately, that’s something which is sorely lacking if DDI’s study is to be believed. The consultancy tested 3,623 executives from 49 countries (two-thirds were American) at their assessment centers around the world, watching how they performed during realistic simulations that revealed their ability to make decisions, communicate in a crisis and develop strategy. What grade did the executives receive? A big, fat D, or to put that in more professional terms, “threats of dysfunctional leadership ran from moderate to very high on six key leadership challenges posed by a crisis.” DDI found four main failings:

  • Almost half of leaders won’t take operational control. 29 percent of executives were deficient in their ability to drive execution and another 20 percent were strong or moderately strong candidates for derailing due to a lack of discipline.
  • Executives threaten innovation. Three in ten executives were weak in change leadership, while 41 percent were at high or moderately high risk of resisting change under stress.
  • Leaders as loose cannons. Nearly 20 percent of executives were at a high or moderately high risk for being emotionally unpredictable under pressure.
  • Downbeat executives don’t inspire hope. One quarter of executives lacked the temperament to communicate in a way that builds trust, or were so emotionally detached that they have trouble relating to others.

For those interested in the complete analysis, it is available here.

The Question: Go ahead, what grade would you give the c-suite at your company?

(Image of fail road sign by fireflythegreat, CC 2.0)

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    Joe E S

    02/24/09 | Report as spam

    RE: Study: Execs Deserve a D Grade

    I agree with the findings. In all the leadership development I have done, I have found that there are two types of leaders today. There are the "Black & White" leaders, and then there are the "Gray Leaders."

    Many leaders today, (not all) cannot lead through the "gray areas" of decision making. You know you are in the "Grey Zone" when you can't find applicable rules that work, and as a leader, you retreat of the "gray zone" when pressed to make a decision, and into the safe "black and white zone" to be more certain and comfortable to rely on rules to make a decision.

    "Black and White Leaders" are most comfortable in enforcing "black and white" rules. And, to many, thorough knowledge of rule and their enforcement is power to them. However, when it comes to entering situations where there is an ambiguity of direction, where people need to know what to do when they are on the border line of conditions vs. rules, and where rules cannot be applied to make them... many leaders cannot lead through this kind of uncertainty. Leaders in this situation are threatened, scared by what a "wrong decision" would mean to maintaining their power base.

    In my experience, I have had to create simulations that focus on leadership functionality in the "Grey Zone." I have found that we need to focus on developing the skill of "Grey Leadership" today if we are to get through tough times. After all... great leaders did not make progress just by enforcing the rules. They knew where existing rules did not apply anymore, and were experienced, knowledgeable, and strong enough to take the risk and accountability for forging ahead to establish new rules. Most leaders are terrified at the possibility of making new rules and shunning the old, for fear of losing their power, or for paying the consequences if they made a wrong decision.

    The proof of that is in so many situations in the news today where common sense leadership is just not exercised in most obvious situations. Take all the stories we have been hearing about schools and policy enforcement with students. How many stories have you heard where a school administrator, teacher, or administration vs. teacher vs. student situation defies common leadership logic? In many cases, we have seen where a school administrator, who can not apply the common sense of leadership will call the police, have a 5 year old kid arrested by the in class, have the police handcuff them, just because that kid had a plastic knife, something that resembled a gun, or a piece of candy that liked like a gun!

    These people are "black and white managers" not true leaders, and from that, kids see this example and grow up to be "black and white" leaders. Where are we developing, through example, the strength of what the "Gray Leader" can do... lead people through uncertainty, through the gray areas in tough times where there are no reliable black and white rules.

    Another example: Today's financial leaders. The financial industry is notorious for hiring consultants to train its leaders. So why is it today, there are no strong financial leaders who have come forth with an original idea or direction out of this financial crisis. Why? They were all bred to lead by the rules... and they are scared today because they are in gray areas where black and white rules do not apply anymore. They can't lead us out of this situation, because "thinking gray" is too terrifying and risky for them.

    Do not fear the gray... think about leading through the gray! Today's leaders need to skilled at gray thinking, and move out of the "black and white" leadership zone they have been so comfortable in for the past decade.

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