Why CEOs Can't Let Go

Being next in line for the big job, you may understand in a few years what makes it so hard for any leader, including the CEO, to move on. If you have personally been through a departure, you may laugh as you relate to the examples I'm about to give. You may remember how difficult it was to let go.

Nearly all of the leaders I have talked to over the years have assured me that they will be different when it's time to move -- that they will have no problem letting go of their jobs. When it comes down to it, however, it's smarter to accept and make peace with the fact that it will be difficult to let go.


Though as a CEO or leader, one may have faced an incredible amount of stress and pressure, the job naturally also came with many great benefits. Recognize that a leader who is moving on will have to give up some or all of the following:

Wealth

Company leaders make a great salary. They may not be interested in showing off their riches; they may choose to give much of their money away to their favorite charity; they may want for absolutely nothing; and yet it is still hard to let go of the "personal scorecard" that money easily becomes. Money can become a way to count how valuable we are and when we make less of it, we may feel we are less valuable -- this is not the case, of course, but just knowing that has never stopped a feeling!

Perquisites

Some company leaders are lucky enough to go to sports games and sit in the special "company box;" they may fly around in the company jet; they may have a great personal assistant. It can be very difficult to face long airport security lines, bad seats at the game, and scheduling calls and meetings yourself after so many years with these great perks. My suggestion to retiring executives? Hire a personal assistant. You can afford it and you will free up your time to do the things that are personally rewarding to you and that make a contribution to others.

Status

Being a leader or company executive, you learn to live with an incredible amount of status. You have been introduced for years as "So-and-so, the head of the company." Now you are introduced as "So-and-so, the person who used to be..." The people you meet may be less admiring or pass by you to talk to more significant people in the room. Make peace with this loss of status. Learn to enjoy others' success.

Power

Studies indicate that most leaders have a higher need for power than most people ... although they often don't realize it. Power is very hard to let go of. For instance, one little suggestion from the CEO quickly becomes an order. Even if the CEO didn't mean it to be an order, her word is law. Over time as you move into higher and higher levels of authority, you have gained more and more power...gradually. But when you decide to leave your position, you will lose all this power ... suddenly! This can be hard to take.

Now, stop and review what the CEO gives up when she transits out of her job: money, status, perks, and power. This is to say nothing of the immaterial benefits of being a leader, such as relationships, happiness, meaning, and contribution.

My advice is be gentle on the transitioning leader. If any transitioning leaders are reading this, then be gentle on yourself. Make peace with letting go, and look forward to creating a great rest of your life!

Life is good.

Marshall

My newest book, MOJO, is a New York Times (advice), Wall Street Journal (business), USAToday (money) and Publisher's Weekly (non-fiction) best seller. It is now available online and at major bookstores.

http://www.MarshallGoldsmithLibrary.com

#MOJOtweet

http://www.LeadingNews.org

http://www.MarshallGoldsmithFeedForward.com

Marshall's Upcoming Schedule

Entrepreneurs and Succession

In my book, Succession: Are You Ready? I describe the challenge of succession for the CEOs of major corporations. I'd like to address the unique challenges for succession in entrepreneurial family businesses.

My good friend and colleague, Dr. Steven Berglas, and I are currently writing a book that addresses this specific question. Given major demographic trends in the United States, this topic has become more critical today than at any time in our country's history.

Millions of aging Baby Boomers who have founded businesses are now past or approaching the age of sixty. In a related vein, more than half of all family businesses expect a leadership change by 2013.

Entrepreneurial founders can unwittingly sabotage the succession process.

While it is often challenging for major corporate executives to pass the baton of leadership, Steven and I believe that the succession process can be even more difficult for entrepreneurial leaders — especially founders. Whereas corporate CEOs are taught to consider the care and feeding of a successor part of their job description, entrepreneurial founders often avoid even considering succession until those around them start clamoring for the process to begin.

Similarly, corporate leaders are accustomed to making career transitions. They typically start in operational roles or first-line management and work their way up the ladder to the top. By the time they become CEOs they have made many transitions. The same cannot be said for founders. After they start their companies they often remain exclusively committed to the CEO role for decades. On one hand, the extended tenure as "top dog" provides founders great benefits, both personally and professionally. On the other hand, after being in charge of a business for decades, when they contemplate passing the baton they react as anyone would to something very unfamiliar: with trepidation and avoidance.

How Sabotage Occurs

Successful entrepreneurial founders:

* Are usually driven people. They like to win. They are used to relying on themselves — and taking personal responsibility for decisions. It can be very difficult for a driven winner to let go and create an environment where others take the lead and do the winning. This hesitancy can inhibit successful transition — even in cases when the incumbent leader has every intention for the succession to work.

* Are a big deal in their communities. They often play important roles in local society. Leading a successful business brings social prestige and status. It can be hard to give up adoration and respect. While many founders claim to have little interest in social status — they are just as human as the rest of us. The prospect of facing a decline in status can make unconscious sabotage a real possibility.

* Are the go-to people in their world. They are not accustomed to asking for help, assistance, or directions while working their way out of a morass. Unlike corporate CEOs who have many advisors — both right- and left-hand men and women — assisting them. This may seem like a trivial concern — how hard is it to learn to ask for help — but if you have never said, "gimme a hand with this," doing so for the first time at age 60 may feel like an admission of weakness — or even worse — old age!

* Have usually focused on one market over a long period time. They are not jacks-of-all-trades. Corporate leaders generally have to deal with a wide range of products, markets and geographies and get exposed to a variety of jobs (or Boards) they can segue into should they wish to work after passing the baton. Not so for founders. Their specialization and focus on a restricted market niche can make it hard for them to transition to a new role in a different type of business. Facing the prospect of leaving — with no place to go — founders may feel their interests are better served by staying right where they are.

* Often have their name on the door of the business. Even if they don't literally have their name on the door, they are personally identified with the business. It is their business. For founders, leaving the business can feel like leaving an important part of their personal identity. It is hard to be replaced, especially when the replacement is not only doing what you did but becoming who you were.

* Are often parents, whose children may be involved in the succession process. While it can be difficult for corporate leaders to choose between two candidates who are equally respected, it can be much more difficult for founders to choose between two children who they equally love. This Sophie's Choice dilemma may make it harder to decide and easier to postpone the selection decision.

The Good News

The good news for entrepreneurial business founders is that they are inherently less risk averse than "corporate types." In fact, we believe that there exists a direct correlation between the success of the business they must plan to cede control of and their ability to take, or at least tolerate, risks. Therefore, we are confident that once founders makes the decision to engage in succession planning, they can do so with the same passion and commitment that drove them to achieve success in the first place.

Entrepreneurs who create and build businesses from scratch are nothing if not street smart. They know business, as well as the trends that impact businesses. I am not certain that all successful family business founders know this statistic: most (60-70%) of all family businesses that lose a founder to retirement or death are sold or liquidated — i.e. not passed on to the founder's heirs.

Many theories attempt to explain why entrepreneurial ventures fail to thrive under the stewardship of a founder's heirs. Most pin it on the loss of founders' charismatic leadership and their personal devotion to the business. Assuming this is so, the fact that so many founders fail to prepare for the life of their "other child" — the business — after they are gone is very unfortunate.

Suggestions to Founders Who are Facing Succession

Our goal: To prevent the ancient Chinese adage about family firms — Shirtsleeves to shirtsleeves in three generations — from proving true.

Given the devastation brought upon an entrepreneurial venture that has not prepared for a founder's departure, I advise all business founders to follow the procedures outlined below as soon as possible, even if they have no intention of retiring before age 99. It's an ounce of prevention that is worth infinitely more than a pound of cure.

The first step in preparing for an entrepreneurs' passing the baton involves adjusting their perspective vis-à-vis the leadership role they have held:

* In preparing for transition, founders first need to face the reality of the personal dependence that their companies — and their families — may have on them. Founders need to begin managing the practical implications of departure long before they leave the business.

* If founders plan to pass the baton of leadership to their children, they need to realize that this may well become not only a financial drama but also an emotional drama. Surprising heirs and potential leaders after the death of the founder is a terrible idea. Founders need to have thorough communication with family members about both who is going to do what as well as who is going to get what before the actual transition occurs.

* Founders need to pick a successor before they leave, and not put off this difficult decision until the last minute. This can be especially tough for parents, who have to balance their desire for the future success of the business with their desire for the future success of their children.

* Founding parents need to get objective third-party advice during the selection process. Even if the selection decision is made, it can be hard for parents to realistically assess the developmental needs of their own children. We have seen founding parents be both unrealistically positive — and unrealistically negative — about their children's potential for leadership.

* In some cases, eternal advisory boards may facilitate the succession process. Even though the founder may make the final call, family members may be more likely to accept the decision when external advisors make the recommendation.

* Parents and siblings need to be aware of — and avoid whenever possible — a common problem that Dr. Berglas defines as splitting. Splitting occurs when family stakeholders may go to Mom if they don't like what Dad is doing (or vice versa). They may also go to siblings and develop "sides" that end up in conflict. If founders are not careful, the succession process may begin to resemble the Survivor TV series more than an orderly transition that benefits the business. By counseling children about the dangers of splitting before it happens, founders can reduce the odds that it will happen.

In planning for transition, founders need to not only consider the needs of the business, they need to consider their own needs.

* Entrepreneurial founders typically prefer action to introspection. If they do not consider their own needs before the transition, their needs will begin to become obvious as the transition time nears. Transition is challenging — especially for founders. While many founders may seem themselves as tough business people, they may be very emotionally vulnerable when it comes time to let go of their business. By facing up to their own fears and concerns, they can be more honest in communication and planning with successors.

* Family members need to be advised to help more and judge less during the transition process. If family members are aware of the founder's vulnerability during this process they will react more with sympathy — and less with cynicism or judgment. The more supportive the families members are, the more likely the process will work effectively.

* One simple piece of advice that I give any of my friends who are getting a divorce is to reach an agreement as soon as possible. No matter how unfavorable the settlement may seem before the lawyers get involved, it is almost always better (for both parties) than the settlement after the lawyers get involved. I have the same advice for entrepreneurial leaders and their families. Reach an agreement concerning succession — make peace that everyone will not get everything that they want — and live with it. If a founder dies or leaves the business and a legal dispute follows — everyone will probably lose. Lawyers will make lots of money, family members will damage relationships, and competitors will rejoice — and may even recruit family factions to join them.

* Finally, entrepreneurial leaders need to find something else to do before they depart. If they don't, they will probably drive their spouses, adult children, and leaders of their business crazy. By finding work that will provide happiness and meaning after leaving the business, leaders can be much more effective in planning for transition while leading the business.

Life is good.

Marshall

My newest book, MOJO, is a New York Times (advice), Wall Street Journal (business), USAToday (money) and Publisher's Weekly (non-fiction) best seller. It is now available online and at major bookstores.

http://www.MarshallGoldsmithLibrary.com

#MOJOtweet

http://www.LeadingNews.org

http://www.MarshallGoldsmithFeedForward.com

Marshall's Upcoming Schedule

Why You Should Choose an Internal Successor

I'm getting ready to move on. Should I look for my successor inside the organization or find a candidate on the outside?

Developing a great successor is one of the most important accomplishments that a CEO — or any senior-level executive — can achieve. But, what's best for your organization, and for you? Should you develop an internal or an external successor?

There are many reasons, both personal and professional, to invest in development for an internal candidate. To start, if a new CEO comes from outside the company, the board will expect a name-brand leader who has a proven track record of success. There aren't that many of those out there, and to hire such an executive, you're going to have to pay a ton of money and provide an expensive golden parachute if things don't work out.

High-profile disaster stories — Home Depot, Hewlett-Packard — have shown exactly how much this type of failure can cost the company. The main damage, however, is not the amount of money spent; it's the damage to the organization's reputation if its new rainmaker fails.

CEOs from the outside who fail — and then get tens or even hundreds of millions of dollars from the company for getting fired — provide incredibly negative stories for the business press that can lead to long-term PR damage for the organization.

The damage is even worse inside the organization. When CEOs fail, employees are often dismissed and resources cut, and it's very hard to explain to 20-year veteran employees why they have to take less so a failed, externally-hired CEO can get more.

In short, hiring a name-brand CEO from outside the company who fails is usually a disaster. The board of directors looks like a group of idiots, and this sad drama only reinforces the increasingly common perception that CEOs are overpaid and that executives and board members are ultimately looking out for their own interests, not the interests of the company.

I am not suggesting that organizations should always hire internal candidates. Obviously there have been cases where external CEOs made a huge difference — IBM, for instance — but external candidates come with extremely high risk. Talent managers should develop an internal successor if at all possible, if only because the need to look outside sends the wrong message about an organization's leadership development capabilities.

I teach in a corporate leadership development program with one very famous CEO who was hired from outside the company. This executive personally instructs management training courses for vice presidents and above. In each session he makes the point that his own hiring is indicative of a failure in leadership development for the company. He clearly states his personal commitment to nurture talent from within, and to develop his own successor.

Your company should ask leaders at all levels to develop talent. Every manager has to answer the question, "If you were hit by a bus tomorrow, who could take your place?" When you, the CEO or senior-level executive, cannot develop your own successor, it indicates you have not been practicing what you preach. Do you want to send a message that you have not succeeded in something you've been asking frontline supervisors to do for years?

Hiring an external successor brings great risk and sends the wrong message about development. Effective internal succession can produce the opposite, positive outcomes.

Hiring an internal candidate shows that you have made the same effort to develop internal talent that you are asking of everyone else. As your successor moves up to the C-suite, a top-level position opens up so that another internal executive can be promoted.

You have a vision for the company. After putting in years to make this vision a reality, you find it important that you vision continue after you leave. By developing an internal successor, you can be assured your vision will be carried out after you depart. You want your successor to bring a fresh perspective, but you don't want him or her to negate all you did in the past.

By carefully developing your successor from inside the company, you can dramatically increase the probability of a positive transition and a successful future.

When developing your successor, remember that a senior-level executive — especially the CEO — transition process is extremely personal. Prior columns have been aimed at helping you face the reality of passing the baton of leadership — and getting you ready for the hand-off — developing an internal successor is all about getting that person ready to take the baton and ultimately become a great leader for your company.

Life is good.

Marshall

My newest book, MOJO, is a New York Times (advice), Wall Street Journal (business), USAToday (money) and Publisher's Weekly (non-fiction) best seller. It is now available online and at major bookstores.

http://www.MarshallGoldsmithLibrary.com

#MOJOtweet

http://www.LeadingNews.org

http://www.MarshallGoldsmithFeedForward.com

Marshall's Upcoming Schedule

Five Global Leadership Factors

In today's complex global business environment, no single model of leadership fits the broad range of situations that leaders encounter daily. However, there are certain qualities of leadership that were important 100 years ago and will still be important 1,000 years from today. Elements such as demonstrating integrity, leading by example, creating a vision, motivating people, developing talent, ensuring customer satisfaction, and maintaining a competitive advantage were important in the past and will be important as long as businesses exist.

What are some of the emerging trends of global leaders? A few years ago, my co-authors—Cathy Greenberg, Alastair Robertson, and Maya Hu-Chan—and I did a research study that asked 200 high-potential managers from organizations around the world how leadership has changed and is changing. We published the results of our study in Global Leadership: The Next Generation (FT Press, 2003).

We found five factors that differentiate the leader of the future from the leader of the past:

1. Thinking globally

Historically, the vast majority of leaders focused on local or domestic issues. Later, businesses began to turn into suppliers and customers of organizations from other counties. In the future, leaders will have to be much more aware of the impact of globalization on all aspects of their business.

2. Appreciating cross-cultural diversity

In the U.S. 100 years ago, there was little diversity in leadership. Almost all business organizations were run by white, male Americans. In the recent past, "diversity" has been a term that Americans used to describe relationships with women and minorities in the U.S. In the future, cross-cultural diversity will mean an appreciation of differences that span religions, cultures, and peoples around the globe.

3. Developing technological savvy

While leaders have always had to understand their businesses' own core technologies, they have not had to understand the larger impact that those technologies had on society and their customers. In the future, leaders will not all need to be "technologists," but they will have to understand the impact that new technology has on their businesses, their customers, and their world.

4. Developing alliances and partnerships

IBM (IBM) is a great case study of the "past vs. future" in building relationships. In the "old days," IBM had almost no partnerships or alliances. It was very proud that it internally produced its products and services. Today, IBM forms alliances and partnerships every week. The leaders of the future will not just run linear organizations. They will manage complex sets of relationships from around the world.

5. Sharing leadership

As Peter Drucker noted: "The leader of the past knew how to tell. The leader of the future will know how to ask." More and more leaders of the future will manage knowledge workers. These are employees who know more about their work than their bosses do. It is hard to tell people what to do and how to do it when they know more than we do. Leadership in the future will involve more two-way involvement and sharing—and less one-way direction.

Life is good.

Marshall

My newest book, MOJO, is a New York Times (advice), Wall Street Journal (business), USAToday (money) and Publisher's Weekly (non-fiction) best seller. It is now available online and at major bookstores.

http://www.MarshallGoldsmithLibrary.com

#MOJOtweet

http://www.LeadingNews.org

http://www.MarshallGoldsmithFeedForward.com

Marshall's Upcoming Schedule

Authentic Personal Branding

With all of the social media opportunities today, personal branding is frequently being used not just in personal, but also in professional roles. It can be quite a dilemma for people to brand themselves successfully without losing their real selves in the process.

I am frequently asked questions about branding because of my success at "marketing me." For a different perspective, I called Hubert Rampersad, an authority on authentic personal branding, and asked about his thoughts on the subject. Rampersad recently wrote a best-seller entitled Authentic Personal Branding: A New Blueprint for Building and Aligning a Powerful Leadership Brand. In it he provides a sorely needed guidebook that shows us all how to build our own authentic personal brand—and just as important—how to persuasively communicate this brand to the world.

Hubert and I talked about his blueprint for authentic personal branding, the connection it has with personal brand coaching, and how his holistic system helps to attract success, build credibility, separate individuals from the crowd, and cultivate happiness. Edited excerpts of our conversation follow:

Hubert, what is authentic personal branding?

The image of your brand is a perception held in someone else’s mind. Personal branding entails managing this perception effectively and influencing how others perceive you and what they think of you. Building an authentic personal brand is an evolutionary and organic process that should emerge from your search for your identity and meaning in life. It is about getting clear on what you want, giving it all your positive energy, doing what you love, and improving yourself continuously.

What are the benefits of an authentic personal brand?

Having a strong authentic personal brand is an important asset in today’s online, virtual, and individual age. It is the key to personal success, and it's the positioning strategy behind the world's most successful people, such as Oprah Winfrey, Richard Branson, and Bill Gates. Everyone has a personal brand, but most people don't manage it strategically, consistently, and effectively. It's important to take control of your brand and the message it sends, as it will help you distinguish yourself as an exceptional professional.

How does your innovative approach differ from traditional personal branding concepts?

Traditional personal branding concepts focus on personal marketing, image building, selling, packaging, outward appearances, and self-promotion. As a result, people may perceive you as egocentric and selfish. Rather, your personal brand should be authentic—it should reflect your true character. It should be built on your dreams, purpose, values, uniqueness, genius, passion, specialization, characteristics, and favorite activities. If you are branded in this organic, authentic, and holistic way, your personal brand will be strong, distinctive, relevant, meaningful, and memorable. You will create a life that is fulfilling, and attract the people and opportunities perfect fit for you. This new approach places more emphasis on understanding yourself and the needs of others, and how to meet those needs while staying true to your values.

You mentioned that your system entails a guide for turning personal financial crisis into opportunity. How do you see that working?

Especially in times of financial crisis you need to be independent and redefine yourself in order to create and attract new creative opportunities. Remember what Albert Einstein said: "In the middle of difficulty lies opportunity" Now is the best time to engage in meaningful dialogue with yourself and to build your personal brand to better master the financial crisis with your unique value proposition. This can be realized successfully according to my four-stage authentic personal branding model.

Based on your approach, how do you build, maintain, and cultivate an authentic personal brand?

Building an authentic personal brand consists of four phases:

1. Define and formulate your personal ambition. This means [assessing] your personal vision, mission, and key roles—and make them visible. It is about developing self-awareness and identifying your dreams: who you are; what you stand for; what makes you unique, special, and different; and what your values are.

2. Define and formulate an authentic personal brand promise that you can use as the focal point of your behavior and actions. Your personal brand statement entails the total of your ambition, brand objectives, specialty, service-dominant attribute, and domain.

3. Formulate your personal balanced scorecard. The emphasis at this stage is to develop an integrated and well-balanced action plan based on your personal ambition. It's about translating your personal ambition and brand into manageable and measurable personal objectives, milestones, and improvement actions in a holistic and balanced way.

4. Implement and cultivate your brand. Personal branding has no value unless you make it a reality. So create and maintain your brand effectively.

How is your personal branding system related to personal coaching?

The personal brand coaching framework involves 15 phases with comprehensive exercises, tools, and activities associated with each phase. It is meant to be helpful to build, implement, maintain, and cultivate an authentic personal brand, which is in harmony with your goals and aspirations. The emphasis is on excelling in everything you do, making the right choices for your future, having a happier and more fulfilling life, and facing new life challenges.

My mission is to: "Enjoy the freedom to develop and share knowledge, especially if this can mean something in the life of others."

Life is good.

Marshall

My newest book, MOJO, is a New York Times (advice), Wall Street Journal (business), USAToday (money) and Publisher's Weekly (non-fiction) best seller. It is now available online and at major bookstores.

http://www.MarshallGoldsmithLibrary.com

#MOJOtweet

http://www.LeadingNews.org

http://www.MarshallGoldsmithFeedForward.com

Marshall's Upcoming Schedule

When People Don't Want to Change -- Don't Waste Your Time!

My job is to help people achieve positive, lasting change in behavior. Every once in a while I run across someone who doesn't want to change. What do I do to convince them the change is good for them? Nothing!

Have you ever tried to change the behavior of an adult who had absolutely no interest in changing? How much luck did you have with your attempts at this "religious conversion"? Have you ever tried to change the behavior of a spouse, partner or parent who had no interest in changing? How did that work out for you?

My guess is that if you have ever tried to change someone else's behavior, and that person did not want to change, you have been consistently unsuccessful in changing their behavior. You may have even alienated the person you were trying to enlighten.

If they don't care, don't waste your time.

Research on coaching is clear and consistent. Coaching is most successful when applied to people with potential who want to improve -- not when applied to people who have no interest in changing. This is true whether you are acting as a professional coach, a manager, a family member, or a friend.

Your time is very limited. The time you waste coaching people who do not care is time stolen from people who want to change.

As an example, back in Valley Station, Kentucky, my mother was an outstanding first grade school teacher. In Mom's mind, I was always in the first grade, my Dad was in the first grade, and all of our relatives were in the first grade.

She was always correcting everybody.

My Dad's name was Bill. Mom was always scolding "Bill! Bill!" when he did something wrong. We bought a talking bird. In a remarkably short period of time the bird started screeching "Bill! Bill!" Now Dad was being corrected by a bird.

Years passed. When Mom corrected his faulty grammar for the thousandth time, Dad sighed, "Honey, I am 70 years old. Let it go."

If you are still trying to change people who have no interest in changing, take Dad's advice. Let it go.

Life is good.

Marshall

My newest book, MOJO, is a New York Times (advice), Wall Street Journal (business), USAToday (money) and Publisher's Weekly (non-fiction) best seller. It is now available online and at major bookstores.

http://www.MarshallGoldsmithLibrary.com

#MOJOtweet

http://www.LeadingNews.org

http://www.MarshallGoldsmithFeedForward.com

Marshall's Upcoming Schedule

Focus on Results

Recently, the following question was posed to me: "I work in strategy and business development within a major university. How can I change our mindset from a non-profit to a profit mentality?"

This was such a provocative question, that I thought I'd share my answer.

My first response is that this person should rephrase the goal!

I served on the Board of the Peter Drucker Foundation (now the Leader to Leader Institute) for twelve years. We have worked with thousand of leaders in non-profit organizations. Many would be annoyed by the very wording of the question.

The question implies that "profit mentality" is good -- while "non-profit mentality" is bad. Peter Drucker believed that many of the greatest leaders he had ever met (including Frances Hesselbein, former CEO of the Girl Scouts) came from the non-profit sector. The idea of changing one group of leaders to more closely resemble those in another sector will not sell very well. Several decades ago, I was a dean. From my experience with professors, I strongly believe that many faculty members would rebel at the very idea of having the strategy of their university copy the strategy of a for-profit institution.

Putting aside the wording of the goal, my guess is that the intent is to make the university more focused on results -- and less on process or activities. Drucker would applaud this desire to make this change happen.

Here are a few suggestions for those looking to make their institution more focused on results:

- Involve key leaders throughout the institution -- as well as their key stakeholders -- in clarifying the strategy. The more the strategy comes from them (not you), the more likely they are to be committed to making it work. Without their commitment to the strategy -- and its execution -- the institution won't get the results that it needs.

- Work with them to paint a picture of desired outcomes.

- Focus on results that are actually measurable -- not vague generalizations. Set clear timelines.

- Hold leaders accountable for achieving results -- and describe what this accountability will actually look like.

- Make peace with what you cannot change. Focus only on differences that can be made. Don't waste your political capital on debates that you cannot win.

- Read Peter Drucker's Managing the Nonprofit Organization for many more ideas.

Life is good.

Marshall

My newest book, MOJO, is a New York Times (advice), Wall Street Journal (business), USAToday (money) and Publisher's Weekly (non-fiction) best seller. It is now available online and at major bookstores.

http://www.MarshallGoldsmithLibrary.com

#MOJOtweet

http://www.LeadingNews.org

http://www.MarshallGoldsmithFeedForward.com

Marshall's Upcoming Schedule

Giving Thanks No Matter What

Giving Thanks No Matter WhatThanksgiving is a time to give thanks -- but in today's more difficult times, it can be a stretch to find gratitude. Many of us have been feeling economic pressure -- perhaps are houses are not as value as they used to be, our stock portfolios and our net worth have diminished. Perhaps our retirement plans are on hold or we've lost a job through no fault of our own.
Even with some gloom in the atmosphere, I nevertheless find that many of the people I encounter in my travels around the world are meeting challenges and viewing changes in positive ways. Following are some comments from my friends, partners, and clients that show gratitude and great spirit, as we rebuild from tough times:

• "There is no use dwelling on the past. What is done is done. In hindsight, would I have done some things differently? Of course! I cannot change that now. I wake up every morning and take one day at a time. I am focused on creating a great future. I am grateful for the opportunities that I have."

• "In a strange way, my recent 'disasters' have actually made me more thankful. I was lost in the frenzy of striving for more, more, more. I have given up a lot of material worth. I now realize that what I have lost doesn't matter that much. I still have my health, friends, and family. I am grateful for the fact that I now understand what really matters."

• "I have a good job. I used to gripe about all kinds of minor annoyances at work. There are a lot of people out there who are much worse off than I am. Now I am very grateful to have a steady income and health care benefits. All the little things that bothered me so much don't matter anymore."

• "I have more time now. I am using it to invest in my future. I am doing what I always said I was going to do--but never quite got around to doing. I am grateful that I have a chance to do what I should have been doing all along."

• "I love my work. As an independent contractor, I have had to cut my fees. Who cares? I still love what I am doing and am grateful to be doing what I love."

• "My company lost almost all of its value and has been bought. I am going to be working for another company now. They used to be our competitors. We used to make such as big deal out of 'beating' them. I now realize that this is just a game. I am going to do my best to make a contribution, but I am no longer going to 'worship the Corporate God'--and put so much of my soul in the hands of people who are just trying to make money. I am going to take responsibility for my own life--and live my own values. I am grateful to have this realization while I am in my 40s."

• "My family is closer than ever. Some of us aren't doing so well. We are doing whatever we can to help each other. I am grateful that we love each other and support each other when times are tough."

Personally, I'm very grateful to have the opportunity to communicate with you, my readers. Many of you have sent me wonderful comments and e-mails. I have learned so much from you, and I am very grateful for your interest in what I write.

"Great is the need of the student to learn -- far greater is the need of the teacher to teach." As a teacher, trying to help you out -- even a little -- adds value to my life. Thank you!

Life is good.

Marshall

My newest book, MOJO, is a New York Times (advice), Wall Street Journal (business), USAToday (money) and Publisher's Weekly (non-fiction) best seller. It is now available online and at major bookstores.

http://www.MarshallGoldsmithLibrary.com

#MOJOtweet

http://www.LeadingNews.org

http://www.MarshallGoldsmithFeedForward.com

Marshall's Upcoming Schedule

Short-Term or Long-Term: Where Do You Live?

In analyzing how we spend our time, whether personally or professionally, it can be helpful to consider two dimensions: short-term satisfaction and long-term benefit. Both have value. It can be disappointing to live our lives with no meaning or pleasure in the here and now, just as it can be unfulfilling to live only for today.



Questions like, "Does this activity make me happy?" or "Do I find meaning in the activity itself?" can help us gauge the degree of short-term satisfaction that we get from any activity. Questions like, "Are the results achieved from this activity worth my effort?" or "Is the successful completion of this activity going to have a long-term positive impact on my life?" can help us gauge our expectations for potential long-term benefit from any activity.

The graph above shows five different modes of behavior and how they can characterize our relationship to any activity -- either at work or at home.

Stimulating is for activities that score high in short-term satisfaction but low in long-term benefit. An example of a "stimulating" activity may be the use of drugs or alcohol. While the activity may provide short-term satisfaction, it may be dysfunctional for long-term benefit. At work, gossiping with co-workers may be fun for a while, but it is probably not career- or business-enhancing. A life spent solely on stimulating activities could provide a lot of short-term pleasure but still be headed nowhere.

Sacrificing is for activities that score low in short-term satisfaction but high in long-term benefit. An extreme example of sacrificing could involve dedicating your life to work that you hate because you feel like you "have to" to achieve a larger goal. A more common example might be working out (when you don't feel like it) to improve your long-term health. At work, sacrificing might be spending extra hours on a project to help enhance your career prospects. A life spent solely on sacrificing activities would be the life of a martyr -- lots of achievement, but not much joy.

Surviving is for activities that score low on short-term satisfaction and low on long-term benefit. These are activities that don't cause much joy or satisfaction and do not contribute to long-term benefit in your life. These are typically activities that we are doing because we feel that we have to do them in order just to get by. Charles Dickens frequently described the lives of people who were almost constantly in the surviving box. These poor people had countless hours of hard work, not much joy, and not much to show for all of their efforts. A life spent solely on surviving activities would be a hard one indeed.

Sustaining is for activities that produce moderate amounts of short-term satisfaction and lead to moderate long-term benefits. For many professionals, the daily answering of e-mails is a sustaining activity. It is moderately interesting (not thrilling) and usually produces moderate long-term but hardly life-changing benefit. At home, the day-to-day routine of shopping, cooking, and cleaning may be viewed as sustaining. A life spent solely on sustaining activities would be an O.K. one -- not great, yet not too bad.

Succeeding is a term for activities that score high on short-term satisfaction and high on long-term benefit. These activities are the ones that we love to do and get great benefit from doing. At work, people who spend a lot of time in the succeeding box love what they are doing and believe that it is producing long-term benefit at the same time. At home, a parent may be spending hours with a child time that the parent greatly enjoys while valuing the long-term benefit that will come to the child. A life spent in succeeding is a life that is filled with both joy and accomplishment.

The perception of both short-term satisfaction and long-term benefit is dependent upon the individual engaged in the activity. Consider an immigrant who leaves a poor country and come to the U.S., where she works 18 hours a day at two minimum-wage jobs. She may have a great attitude toward her work and be saving every possible cent for her children's education. She may define her life as being largely spent in the succeeding category -- filled with short-term happiness and long-term benefit.

At the other end of the professional scale, one CEO could feel resentful and grumpy about her work (and feel trapped) because a drop in stock value means that she will have to work another couple of years to have the $10 million she told herself she needed in order to retire. She might see herself in the surviving category. Another CEO in a similar situation could feel happy and fulfilled at the prospect of leading a major organization through challenging times and see herself in the succeeding category.

The point is two people could be engaged in the same activity but have completely different perceptions of what this activity means to them. It's because no one can define what short-term satisfaction or long-term benefit means for you but you. My suggestion for you is simple. Spend a week tracking how you spend your time. At the end of the week calculate how many hours you spent on stimulating, sacrificing, surviving, sustaining, or succeeding. Then ask yourself what changes you can make to help you create a life that is both more satisfying in the short-term and more rewarding in the long-term.

While the activities that take up our time can be one factor in determining our happiness and achievement, our attitude toward these activities can be an equally important factor in determining the ultimate quality of our lives. If we cannot change our activities, we can at least try to change our attitude toward them.

Life is good.

Marshall

My newest book, MOJO, is a New York Times (advice), Wall Street Journal (business), USAToday (money) and Publisher's Weekly (non-fiction) best seller. It is now available online and at major bookstores.

http://www.MarshallGoldsmithLibrary.com

#MOJOtweet

http://www.LeadingNews.org

http://www.MarshallGoldsmithFeedForward.com

Marshall's Upcoming Schedule

How to Increase Your Leadership Effectiveness

It's an age-old question: Are we influenced more by nature or nurture? Applied to leadership, the question becomes: Are great leaders born or made? It's one of the most frequently asked questions in leadership development.

Let's start with the definition of "leader." My good friend and mentor, Dr. Paul Hersey, defines leadership as "working with and through others to achieve objectives." Given this definition, anyone in a position whose achievement requires support from others can play the role of a leader. I love this definition because it supports the philosophy of "leadership at all levels," which is so critical in today's world of knowledge workers.

Indeed, millions of people who are currently working with and though others to achieve objectives are already leaders. Whether they think of themselves as leaders (not to mention whether they are fantastic or disastrous leaders) is another issue.

So can people who are already working to influence others become more effective leaders? The answer is an unqualified "yes."

My partner, Howard Morgan, and I conducted an extensive study on leadership development programs involving more than 86,000 participants in eight major corporations. Our findings were so conclusive that they are almost impossible to dispute. Leaders who participated in a development program, received 360-degree feedback, selected important areas for improvement, discussed these with co-workers, and followed-up with them on a consistent basis (to check on progress) were rated as becoming dramatically better leaders—not in a self-assessment, but in appraisals from co-workers—6 to 18 months after the initial program.

Five ways to become a better leader

Leaders who participated in the same developmental programs and received the same type of feedback—but did not follow-up—were seen as improving by no more than random chance would imply. Here are some specific ways to increase your leadership effectiveness:

1. Get 360-degree feedback on your present level of effectiveness, as judged by co-workers you respect.

2. Pick the most important behaviors for change—those you believe will enhance your effectiveness as a leader—e.g., "become a more effective listener" or "make decisions in a timelier manner").

3. Periodically ask co-workers for suggestions on how you can do an even better job in your selected behaviors for change.

4. Listen to their ideas—don't promise to change everything—and make the changes that you believe will further increase your effectiveness.

5. Follow-up and measure change in your effectiveness over time.

Are leaders born or made? If you are working with and through others to achieve objectives, you are already a leader. Can you become a more effective leader? Definitely.

Life is good.

Marshall

My newest book, MOJO, is a New York Times (advice), Wall Street Journal (business), USAToday (money) and Publisher's Weekly (non-fiction) best seller. It is now available online and at major bookstores.

http://www.MarshallGoldsmithLibrary.com

#MOJOtweet

http://www.LeadingNews.org

http://www.MarshallGoldsmithFeedForward.com

Marshall's Upcoming Schedule

What to Do When Your Company Is Sold

The business landscape is changing dramatically as many companies are being acquired and/or merging into others. This can be very stressful for the employees of the acquired company who worry about their job security, financial stability, and so much more.

The standard PR hype that goes with an acquisition sounds something like this: "We are so impressed with management and the direction of the company we are acquiring that we have no interest in changing them. In fact, we believe that we can learn a lot from all they have done right."

While the acquiring company may actually believe this message at the time of the acquisition, this love-fest seldom lasts beyond a few quarters. There is one seemingly obvious fact that an amazing number of employees in acquired companies never get: They own you. You must remember that fact, and realize that it has the potential to change just about everything. Here are some things to keep in mind.

As soon as your company is acquired, forget about "us" and "them."

You are now part of "them." The old "us" no longer exists. They can do whatever they want to do. Once you make peace with this fact, your life will be a lot easier. (If your old company's management didn't want to transfer ownership and control to the new owners, it shouldn't have cashed the checks and deposited the money.)

Accept the fact that you are now working for a different company.

Don't make assumptions about the future based upon your history with the old company. Realize that as a professional you may well be starting over, no matter how much experience you had, or credibility with the former owner. Learn what matters most to your new executives and new board.

Look for the positives in the company that acquired yours.

Face it, if you and your leaders were so brilliant and they were so stupid, how could stupid them have acquired enough money to buy brilliant you?

Read the tea leaves.

If it looks like you are going to have no future, because the acquisition will lead to "right-sizing" in your function, start looking for another job. Realize that the acquiring company may well have more loyalty to their previous employees than to you.

Revisit how you are working.

This acquisition may well bring resources that your previous company did not have. Consider how these resources can be leveraged to help you make a larger contribution than you have made in the past. Take advantage of these new resources to better serve your customers and stakeholders.

I hope these suggestions are helpful to any of you in companies that have been—or are about to be—acquired.

Life is good.

Marshall

My newest book, MOJO, is a New York Times (advice), Wall Street Journal (business), USAToday (money) and Publisher's Weekly (non-fiction) best seller. It is now available online and at major bookstores.

http://www.MarshallGoldsmithLibrary.com

#MOJOtweet

http://www.LeadingNews.org

http://www.MarshallGoldsmithFeedForward.com

Marshall's Upcoming Schedule

How to Keep Good Employees in a Bad Economy

As we make our way through the challenges of the global economic crisis, high-impact performers are in demand. I'm speaking here of the indispensible workers who are willing to do what it takes to help the company succeed even in the most difficult of times. Those who pick up the slack when the organization is forced to cut back; those whose ideas save time, money, and effort; those with a positive outlook who help keep the organization moving forward.

How do you retain these people? The answer, simply put, is leaders must manage their human assets (i.e., employees), and they must do so with the same vigor that they devote to financial assets. In tough economic times, this may seem difficult; however, it is critical for the success of the organization.

Here are some steps that organizations can take that will help them keep today's high-impact performers and tomorrow's great leaders.

1. Show Respect: This may seem rote, but genuinely treating employees with kindness, respect, and dignity will elicit the continued loyalty of employees to both the leader and the organization. It is possible to lead people through fear and intimidation; however, the odds of retaining and developing people using this style are slim.

2. Focus on a Thriving Environment: Creating an environment in which high-impact performers want to stay and will put their all into an organization takes more than a gimmick or enrollment in the fad-of-the-month leadership development program. It takes an environment where people are learning, getting training, and developing their skills — where through inquiry and dialogue, the leader creates an environment that allows each individual to thrive.

3. Offer On-Going Training: High on the list for leaders who want to retain high-impact performers is training and on-going education, both of which ensure that people can 1) do their jobs properly, and 2) can improve on existing systems. Cross training — giving people the opportunity to experience and train in different aspects of the company — is a great way to cross-fertilize between departments and across regions. This is a great competitive advantage when organizations are required to cut back on manpower. Cross-trained employees are equipped to handle different functions in the organization far more easily than those confined in silos.

4. Provide Coaching: By working one-on-one with employees in a coaching relationship, leaders can discover and tap the talents of individuals and direct their development, as well as align their behaviors and skills, thus becoming active as agents of change, enhancing the success of the organization.

5. Give Feedback: More than an annual review, leaders may give employees assistance in specific areas, such as developing networks, handling work/life balance, and attaining job and skills training. Providing feedback is more than an annual or semi-annual performance measure. It is a continual process which comes in the form of mentoring relationships, support groups, and action groups.

6. Money and Decision-Making: I haven't yet mentioned compensation, which is an obvious employee retainer, but it's not enough. In addition to compensation, people need to be involved in decision-making. The leader who asks people for their input on how the corporation can increase effectiveness is the leader who achieves buy-in from his or her employees. Not only does this help retain key talent, it also is a great way to generate ideas for organizational improvements.

Developing people is a strategic process that adds value to both the employees and the bottom line of the organization. Highly committed, highly competent people create financial rewards for the organization; organizations that develop their people and provide opportunities for growth are sought-after by high-impact performers. Great leaders know this simple formula. They understand it and strive to create an environment that supports it. And the result is success!

Life is good.

Marshall

My newest book, MOJO, is a New York Times (advice), Wall Street Journal (business), USAToday (money) and Publisher's Weekly (non-fiction) best seller. It is now available online and at major bookstores.

http://www.MarshallGoldsmithLibrary.com

#MOJOtweet

http://www.LeadingNews.org

http://www.MarshallGoldsmithFeedForward.com

Marshall's Upcoming Schedule

How Adults Achieve Happiness

by Marshall Goldsmith and Kelly Goldsmith

Most parents will tell you they just want their kids to grow up to be happy (even if they're nudging them toward the Ivy League). But how does an adult achieve a high level of contentment while living a frenetic and distraction-packed life? The two of us have just reviewed results from our new survey designed to elicit insights into short-term satisfaction (happiness) and long-term benefit (meaning)—both at work and away from it. Our respondents weren't randomly chosen. They're well-educated (more than 60% have graduate degrees) managers, entrepreneurs, and professionals (split almost evenly between the sexes), numbering over 3,000.

Our findings were in many cases unexpected but clear-cut. There is an incredibly high correlation between people's happiness and meaning at work and at home. In other words, those who experience happiness and meaning at work tend also to experience them outside of work. Those who are miserable on the job are usually miserable at home.

The implication is unmistakable. Since work and home are very different environments, our experience of happiness and meaning in life appears to have more to do with who we are than where we are. Rather than blaming our jobs, our managers, and our customers—or our friends, family members, and communities—for our negative worklife experience, we might be better served by looking in the mirror.

One commonly expressed excuse for not getting more happiness and meaning out of life is: "I'm working too many hours." But our results show that the number of hours worked had no significant correlation with happiness or meaning experienced at work or at home. So much for that excuse.

Part of our survey asked respondents to rate their overall satisfaction level at work. Again, our findings paint a clear picture. The amount of time respondents spent solely on stimulating activities (high short-term satisfaction but low long-term benefit) had no bearing on their satisfaction at work. The same was true of more purposeful activities (low short-term satisfaction but high long-term benefit). Overall satisfaction at work increased only if both the amount of happiness and meaning experienced by employees simultaneously increased. This indicates that professionals don't gain satisfaction at work either by being "martyrs" or by "just having fun." Companies may want to reduce communications designed to encourage employees to make sacrifices for the larger cause. They may also want to cut out "fun" morale-building events that lack a meaningful purpose.

We had (mistakenly) guessed that those who spent more time outside of work in activities that produced more short-term satisfaction might score higher on overall satisfaction. After all, we assumed, people don't go home to find meaning; they want to relax. We were wrong. The correlations between happiness, meaning, and overall satisfaction at work and home were very similar. Those who were more satisfied with life outside of work were the respondents who reported spending more time on activities that produced both happiness and meaning.

These links between how we spend our time and how we feel may seem confusing, but specific patterns arose—some commonsensical, some not. Here are a few quick takeaways from our initial research:

• Reduce TV watching. It's stimulating but doesn't increase overall satisfaction with life—at work or home.

• Cut back on surfing the Web for non-professional reasons. It's negatively correlated with the experience of both happiness and meaning.

• Do as few chores as you can (whatever that word means to you).

• Spend time exercising and with people you love (respondents who did this had more satisfaction with life at work and at home).

• Feeling challenged is linked to greater satisfaction, so challenge yourself.

What can companies do differently? They might stop asking, "What can the company do to increase employees' experience of happiness and meaning at work?" which encourages dependency. Instead, managers can encourage employees to ask themselves, "What can I do to increase my experience of happiness and meaning at work?" This strategy may produce a higher return in employee commitment—and do so at a lower cost.

Life is good.

Marshall

My newest book, MOJO, is a New York Times (advice), Wall Street Journal (business), USAToday (money) and Publisher's Weekly (non-fiction) best seller. It is now available online and at major bookstores.

See my other posts at BusinessWeek.com

http://www.MarshallGoldsmithLibrary.com

#MOJOtweet

http://www.LeadingNews.org

http://www.MarshallGoldsmithFeedForward.com

Marshall's Upcoming Schedule

Sorting Out the Bad Apple on Your Work Team

As a leader, you may have to contend with a team member who appears to be poisoning the rest of the group. This person is disconnected from everyone else you manage. The team used to work like a well-oiled machine and everyone got along well, but this year has proved difficult. You believe this team member's bad attitude is causing the problem. What can you do? Here are a few suggestions to manage your team, even when one member has a worm.

Work on improving the team behavior of every member. In this way, the problematic person won't feel "singled out" by you. This will minimize potentially bad feelings toward you and the rest of the group.

Next, have each team member ask every other member a simple question: "In the future, how can I do a great job of helping our team demonstrate effective teamwork?" This will foster healthy dialogue. Encourage all of them to stay positive and focused in their replies to other team members. Listen to them, learn, and express gratitude for the suggestions.

In one-on-one meetings, you might then have each team member discuss with you what he or she has learned from the other team members. As the team leader, after hearing the summary of other suggestions from this person's co-workers, provide your ideas.

Team Must Want the Apple to Thrive

Finally, to keep getting suggestions and to ensure reinforcement, ask each person to commit to following up with fellow team members on his or her plan for improvement. By participating in this process, you will lead by example, rather than just preach.

This series of suggestions will work only if the difficult individual has issues that are behavioral, is willing to try to improve, and will be given a fair chance by the other team members. If he or she is unwilling to try, has a sarcastic or cynical attitude toward change, or will not be given a chance to change by the rest of the team, this strategy won't succeed.

If the team member has a bad attitude, explain that a change in behavior is critically important. Let him or her know that you want to help, however you can, but that he or she has to make the effort to improve. An employee that still doesn't care should be fired. Or if the culprit is a critical contributor who can function well without team interaction, this person should work alone, not on the team.

Life is good.

Marshall

My newest book, MOJO, is a New York Times (advice), Wall Street Journal (business), USAToday (money) and Publisher's Weekly (non-fiction) best seller. It is now available online and at major bookstores.
See my other posts at BusinessWeek.com

http://www.marshallgoldsmithlibrary.com/mojo/
#MOJOtweet
http://www.leadingnews.org/
http://www.marshallgoldsmithfeedforward.com/
Marshall's Upcoming Schedule

Disagreeing with Your Reports

I often write about the importance of encouraging ideas from co-workers, but what if you are a manager with direct reports who already have strong opinions on a topic—and you wholeheartedly believe their suggestions just won't work? Here are my ideas on the subject:

First, my teacher and mentor Paul Hersey always taught me that "leadership is not a popularity contest." You, as a leader, have to focus on achieving the mission, which can sometimes mean disagreeing with your direct reports and taking a stand on tough issues. On the other hand, as my friend and colleague Jim Kouzes points out, "leadership is not an unpopularity contest." Great leaders focus on building positive, lasting relationships with the people they lead, and they should be sensitive to how direct reports perceive them.

Begin with a philosophy of doing what is right while at the same time involving and empowering great people. Ask yourself a simple question: "Is winning this battle worth it?" If you believe this is an important issue for the company, stand your ground. If it is important to your direct reports and insignificant to the company, let it go.

What If You're Wrong?

Another tip that will help you in many situations: Try not to prove that your direct reports are wrong. Chances are your direct reports are generally bright and interested in what they are doing—especially the ones who take the initiative to make suggestions. The fact that your ideas differ from their ideas does not always mean they are wrong. As difficult as it may be to believe, sometimes you are wrong.

Make it a point to listen and think before responding. Sometimes if you just back away and reflect, you will see things from a different and clearer perspective. And if you can execute components of their ideas, do so. Your direct reports do not expect you to do everything they suggest.

And, finally, if you just plain disagree, respectfully let them know that you have listened to their suggestions, thought carefully about them, and chosen not to execute their ideas at this time. Explain your logic. Let them know that well-meaning, intelligent people can disagree.

Don't win them all. Be open to going with their ideas when you can. When they disagree with you—and they prevail—support their ideas, just as you want them to support your ideas when you get your way.

I hope these ideas are helpful.

Life is good.

Marshall

My newest book, MOJO, is a New York Times (advice), Wall Street Journal (business), USAToday (money) and Publisher's Weekly (non-fiction) best seller. It is now available online and at major bookstores.

See my other posts at BusinessWeek.com

http://www.MarshallGoldsmithLibrary.com

#MOJOtweet

http://www.LeadingNews.org

http://www.MarshallGoldsmithFeedForward.com

Marshall's Upcoming Schedule

How Entrepreneurs Should Handle Succession

Entrepreneurs who create and build businesses from scratch are nothing if not street smart. They know business, as well as the trends that impact businesses. I am not certain that all successful family business founders know this statistic: most (60-70%) of all family businesses that lose a founder to retirement or death are sold or liquidated — i.e. not passed on to the founder's heirs.

Many theories attempt to explain why entrepreneurial ventures fail to thrive under the stewardship of a founder's heirs. Most pin it on the loss of founders' charismatic leadership and their personal devotion to the business. Assuming this is so, the fact that so many founders fail to prepare for the life of their "other child" — the business — after they are gone is very unfortunate.

My last post examined some of the most important factors responsible for this anomaly. This post will provide suggestions to founders who are facing succession. Our goal: To prevent the ancient Chinese adage about family firms — Shirtsleeves to shirtsleeves in three generations — from proving true.

Given the devastation brought upon an entrepreneurial venture that has not prepared for a founder's departure, I advise all business founders to follow the procedures outlined below as soon as possible, even if they have no intention of retiring before age 99. It's an ounce of prevention that is worth infinitely more than a pound of cure.

The first step in preparing for an entrepreneurs' passing the baton involves adjusting their perspective vis-à-vis the leadership role they have held:

* In preparing for transition, founders first need to face the reality of the personal dependence that their companies — and their families — may have on them. Founders need to begin managing the practical implications of departure long before they leave the business.

* If founders plan to pass the baton of leadership to their children, they need to realize that this may well become not only a financial drama but also an emotional drama. Surprising heirs and potential leaders after the death of the founder is a terrible idea. Founders need to have thorough communication with family members about both who is going to do what as well as who is going to get what before the actual transition occurs.

* Founders need to pick a successor before they leave, and not put off this difficult decision until the last minute. This can be especially tough for parents, who have to balance their desire for the future success of the business with their desire for the future success of their children.

* Founding parents need to get objective third-party advice during the selection process. Even if the selection decision is made, it can be hard for parents to realistically assess the developmental needs of their own children. We have seen founding parents be both unrealistically positive — and unrealistically negative — about their children's potential for leadership.

* In some cases, eternal advisory boards may facilitate the succession process. Even though the founder may make the final call, family members may be more likely to accept the decision when external advisors make the recommendation.

* Parents and siblings need to be aware of — and avoid whenever possible — a common problem that Dr. Berglas defines as splitting. Splitting occurs when family stakeholders may go to Mom if they don't like what Dad is doing (or vice versa). They may also go to siblings and develop "sides" that end up in conflict. If founders are not careful, the succession process may begin to resemble the Survivor TV series more than an orderly transition that benefits the business. By counseling children about the dangers of splitting before it happens, founders can reduce the odds that it will happen.

In planning for transition, founders need to not only consider the needs of the business, they need to consider their own needs.

* Entrepreneurial founders typically prefer action to introspection. If they do not consider their own needs before the transition, their needs will begin to become obvious as the transition time nears. Transition is challenging — especially for founders. While many founders may seem themselves as tough business people, they may be very emotionally vulnerable when it comes time to let go of their business. By facing up to their own fears and concerns, they can be more honest in communication and planning with successors.

* Family members need to be advised to help more and judge less during the transition process. If family members are aware of the founder's vulnerability during this process they will react more with sympathy — and less with cynicism or judgment. The more supportive the families members are, the more likely the process will work effectively.

* One simple piece of advice that I give any of my friends who are getting a divorce is to reach an agreement as soon as possible. No matter how unfavorable the settlement may seem before the lawyers get involved, it is almost always better (for both parties) than the settlement after the lawyers get involved. I have the same advice for entrepreneurial leaders and their families. Reach an agreement concerning succession — make peace that everyone will not get everything that they want — and live with it. If a founder dies or leaves the business and a legal dispute follows — everyone will probably lose. Lawyers will make lots of money, family members will damage relationships, and competitors will rejoice — and may even recruit family factions to join them.

* Finally, entrepreneurial leaders need to find something else to do before they depart. If they don't, they will probably drive their spouses, adult children, and leaders of their business crazy. By finding work that will provide happiness and meaning after leaving the business, leaders can be much more effective in planning for transition while leading the business.

Life is good.

Marshall

My newest book, MOJO, is a New York Times (advice), Wall Street Journal (business), USAToday (money) and Publisher's Weekly (non-fiction) best seller. It is now available online and at major bookstores.

See my other posts at HarvardBusinessOnline.com

http://www.MarshallGoldsmithLibrary.com

#MOJOtweet

http://www.LeadingNews.org

http://www.MarshallGoldsmithFeedForward.com

Marshall's Upcoming Schedule

Build Your Self Confidence Like a Leader

What can I do to build my confidence in my capabilities as a leader?

You won't get to the top without self-confidence; to build it, you have to believe in yourself. Don't worry about being perfect — put up a brave front and do the best you can. That's it in a nutshell. Here's a little more background for you.

Last year, as I often do, I taught a seminar for MBA students at the University of California at Berkeley's Haas School of Business. A second-year student approached me and told me he'd read my book What Got You Here Won't Get You There. "In the book you talk about classic challenges faced by your clients," he said. "I noticed that you never discuss self-confidence problems. How do you deal with your client's self-confidence problems?"

This question really made me think. I rarely encounter self-confidence problems in my work with CEOs and potential CEOs. It is almost impossible to make it to the top level in a multibillion-dollar corporation if you do not believe in yourself. On the other hand, I am frequently asked to speak at business schools, and I have noticed that students in my seminars often want to talk about it.

This is such an important topic. I thought I would share a few suggestions about how you can build your self-confidence. I also hope you, my readers, will offer your own suggestions.

1. Don't worry about being perfect. There are never right or wrong answers to complex business decisions. The best that you can do as a leader is to gather all of the information that you can (in a timely manner), do a cost-benefit analysis of potential options, use your best judgment — and then go for it.

2. Learn to live with failure. Great salespeople are the ones who get rejected the most often. They just ask for the order more than the other salespeople. You are going to make mistakes. You are human. Learn from these mistakes and move on.

3. After you make the final decision — commit! Don't continually second-guess yourself. Great leaders communicate with a sense of belief in what they are doing and with positive expectations toward the achievement of their vision.

4. Show courage on the outside — even if you don't always feel it on the inside. Everyone is afraid sometimes. If you are a leader, your direct reports will read your every expression. If you show a lack of courage, you will begin to damage your direct reports' self-confidence.

5. Find happiness and contentment in your work. Life is short. My extensive research indicates that we are all going to die anyway. Do your best. Follow your heart. When you win, celebrate. When you lose, just start over the next day.

Life is good.

Marshall

My newest book, MOJO, is a New York Times (advice), Wall Street Journal (business), USAToday (money) and Publisher's Weekly (non-fiction) best seller. It is now available online and at major bookstores.

See my other posts at HarvardBusinessOnline.com

http://www.MarshallGoldsmithLibrary.com

#MOJOtweet

http://www.LeadingNews.org

http://www.MarshallGoldsmithFeedForward.com

Marshall's Upcoming Schedule

Leadership Isn't About You

I am having a difficult time leading my team. The team members will not follow my instructions, which I am sure would make our project much more successful. What am I doing wrong?

What you're doing wrong is very simple: you have simply forgotten that your team is more critical to the success of your project than you are.

Over the years, I have worked with many great leaders as an executive educator and coach. One client, Charlie (not his real name), in particular is still one of my favorites. He is the one who showed the most improvement — and he is the one who I spent the least amount of time with.

Charlie was president of a division with more than 50,000 employees. His CEO recognized his talents and asked me to help Charlie expand his role, provide more leadership, and build synergy across the organization. Charlie eagerly involved his team in this project. Each person took responsibility for creating positive synergy with cross-organizational colleagues. They regularly reported their efforts, learned from their colleagues, and shared what they learned. They thanked people for ideas and suggestions and followed up to ensure effective implementation.

What I find interesting is that of all the clients I have every coached, Charlie is the client I spent the least amount of time with. This inverse relationship between our spending time together and he and his team getting better was very humbling. At the end of our project, I told Charlie about this observation. "I think that I spent less time with you and your team than any team I have ever coached, yet you and your team produced the most dramatic, positive results. What should I learn from my experience?"

Charlie thought about my question. "As a coach," he said, "you should realize that success with your clients isn't all about you. It's about the people who choose to work with you." He chuckled; then he continued: "In a way, I am the same. The success of my organization isn't about me. It's all about the great people who are working with me."

What an insight! This isn't what most of the conventional wisdom of leadership dictates. Most leadership literature exaggerates, even glamorizes, the leader's contribution. The implication being that everything begins with the leader, that she is responsible for your improvement, she guides you to victory, without the leader there is no navigator.

This isn't true. An oft-quoted proverb says: "The best leader, the people do not notice. When the best leader's work is done, the people say, 'We did it ourselves.'"

Truly great leaders, like Charlie, recognize how silly it is to believe that a coach or a leader is the key to an organization's success. The best leaders understand that long-term results are created by all of the great people doing the work — not just the one person who has the privilege of being at the top.

Life is good.

Marshall

My newest book, MOJO, is a New York Times (advice), Wall Street Journal (business), USAToday (money) and Publisher's Weekly (non-fiction) best seller. It is now available online and at major bookstores.

See my other posts at HarvardBusinessOnline.com

http://www.MarshallGoldsmithLibrary.com

#MOJOtweet

http://www.LeadingNews.org

http://www.MarshallGoldsmithFeedForward.com

Marshall's Upcoming Schedule

An Exercise in Changing Yourself

When I first began my career as an executive educator, I challenged my clients to pick one to three behavior patterns for personal improvement. Now I realize that three patterns were too many.

The problem was not a lack of motivation or intelligence — the problem was that they were just too busy. I teach my clients now to pick the one behavior pattern for personal change that will make the biggest difference, and to focus on that. If we pick the right area to change and actually do so, it will almost always influence other aspects of our relationships with people. For example, more effective listening will lead to being more successful in building teamwork, increasing customer satisfaction, and treating people with respect.

A Wonderful Exercise

My friend Nathaniel Branden is a psychologist and the author of about 20 books. He has a wonderful exercise that helps people isolate the pattern that makes the most sense to change, because it helps people figure out the benefits of change. This is how he helps people decide whether change is worth it: Five to eight people sit around a table, and each person selects one practice to change. One person begins the exercise by saying: "When I get better at..." and completes the sentence by mentioning one benefit that will accompany this change. For example, one person may say: "When I get better at being open to differing opinions, I will hear more great ideas."

After everyone has had a chance to discuss their specific behavior and the first benefit, the cycle begins again. Now each person mentions a second benefit that may result from changing the same behavior, then a third, continuing usually for six to eight rounds. Finally, participants discuss what they have learned and their reactions to the exercise.

When Branden first explained this exercise to me, I was polite, but skeptical. I couldn't see the value of simply repeating the potential benefits of change over and over. My skepticism quickly went away when I saw the process work.

Moved to Tears

Nathaniel and I were facilitators at a large conference that included many well-known leaders from corporations, nonprofits, the government, and the military. The man sitting next to me was a high-ranking military leader directly responsible for thousands of troops. He also was extremely judgmental and seemed to be proud of it. For example, when conference participants discussed the topic of character, he said: "I respect people with real character — and organizations, like mine, with real values. I don't believe in this situational crap!"

When we began Nathaniel's exercise, our military friend chose: "When I become less judgmental..." as his behavior to change. I was skeptical about his sincerity and thought his participation in the exercise would be interesting to observe. True to my expectations, the first time around he coughed and grunted a sarcastic comment rather than talk about a real benefit. The second time around he was even more cynical. Then something changed. When he described a third potential benefit, he stopped being sarcastic. Several rounds later, he had tears in his eyes, and said: "When I become less judgmental, maybe my children will speak to me again."

Since that day, I have conducted this exercise with several thousand people. Many start with benefits that are "corporately correct," such as: "This change will help my company make more money," and finally end with benefits that are more human, such as: "This change will make me a better person." I will never forget one hard-driving executive who chose: "When I get better at letting go" as the behavior he should work on. His first benefit was that his direct reports would take more responsibility. His final benefit was that he would probably live to celebrate his 60th birthday.

Try It for Yourself

Now, it's your turn to pick a behavior pattern that you may want to change. Complete the sentence: "When I get better at..." over and over again. Listen closely as you recite potential benefits. You will be amazed at how quickly you can determine whether this change is worth it for you.

Life is good.

Marshall

My newest book, MOJO, is a New York Times (advice), Wall Street Journal (business), USAToday (money) and Publisher's Weekly (non-fiction) best seller. It is now available online and at major bookstores.

See my other posts at HarvardBusinessOnline.com

http://www.MarshallGoldsmithLibrary.com

#MOJOtweet

http://www.LeadingNews.org

http://www.MarshallGoldsmithFeedForward.com

Marshall's Upcoming Schedule