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Once the word gets around that a CEO prizes honesty and reality, a lot of good information will be forthcoming.
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Another aspect of the problem is the allocation of your time. Quite often it is taken up with too many activities that keep you from visiting the front. Too many boards, too many committees, too many testimonial dinners. According to one survey, the average CEO spends 30 percent of her time on outside activities. She spends another 17 hours a week preparing for meetings. Since the typical top executive works 61 hours a week, that leaves roughly 20 hours for everything else, including managing the operation and going down to the front. No wonder chief executives delegate the marketing function. But that s a mistake. Marketing is too important to be turned over to an underling. If you delegate anything, you should delegate the chairmanship of the next fund-raising drive. The next thing to cut back on is meetings. Instead of talking things over, go out and see for yourself. As General Secretary Gorbachev told President Reagan on the occasion of the president s first trip to the
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Soviet Union, It is better to see once than to hear a hundred times. You have to put your mind on the tactics of the battle you want to win. You have to focus on your competitors and their strengths and weaknesses in people s minds. You have to search out that one attribute or differentiating idea that will work in the mental battleground. Then you have to be willing to focus all your efforts to develop a coherent strategy to exploit that repositioning idea.
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You also have to be willing to make changes inside the organization in order to exploit the opportunities on the outside. And you must be a doer. The way to spot a nonleader quickly is to watch for should. When a viable suggestion is presented, the would-be leader says, We should do that. Usually, you discover, those shoulds pile up and little gets done. The best leaders share their wisdom with the next generation. Noel Tichy, professor at the University of Michigan Business School, says, Great leaders have to be great teachers. He estimates that Jack Welch, GE s
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revered chairman and CEO, devoted 30 percent of his time to leadership development. (Welch even taught at GE s executive training institute once a week.) That s where he got his leverage, claims Professor Tichy. Ironically, history shows that Welch lost his leverage by putting GE into financial businesses that crashed during our financial crisis. I m afraid Welch was seduced by Wall Street and his stock price. The best leaders know that direction alone is no longer enough. The best leaders are storytellers, cheerleaders, and facilitators. They reinforce their sense of direction or vision with words and action. There was no greater leader in the airline business than Herb Kelleher, the chairman of Southwest Airlines. He became the king of the low-fare, short-haul airline business. Year after year, his airline is on every list of the most admired and most profitable companies. If you ve flown Southwest, you ve probably recognized the incredible spirit and enthusiasm of the airline personnel. They even have a sense of humor that, as one passenger put it, makes flying on that cattle car enjoyable. Anybody who knew Herb realizes that the airline s personality retains Herb s personality. He was an amazing cheerleader who kept those planes moving and morale high. He was indeed walking behind them.
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He also knew his people and his business. In a meeting with Herb, I encouraged him to buy one of the East Coast shuttles that were for sale. It would have instantly made Southwest a big player in the East. He thought for a minute and said, I sure would like their gates in New York, Washington, and Boston. But what I don t want is their airplanes and, more importantly, their people. He sure was right. Cheerleading those East Coast shuttle people would have been impossible.
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