What happens when a company grows, but its leaders don’t? It’s called “organizational wreckage,” and it can be avoided easily — if you know the tell-tale signs, according to one executive.
George Mason University’s School of Business’ executive in residence Dr. John Hillen this month spoke to WashingtonExec’s General Managers Council on how to evolve as a leader as a business expands.
Hillen co-wrote the book, “What Happens Now?: Reinvent Yourself as a Leader Before Your Business Outruns You,” set for print release in May 2018. It discusses how to avoid the “organizational wreckage” that occurs when scaling a business without a plan to scale executive judgment and leadership skills.
General managers and those with functional business backgrounds oftentimes rise in organizations thanks to their highly valued technical and tactical skills focused on good operations. First “doers,” then sometimes managers, these key employees frequently struggle with transitioning from an executing mindset to a leading mindset. Operators are taught to use managerial tools to overcome the challenges of a more complex business, rather than understanding the obstacles that confront them not from more business complexity, but from more business sophistication — two very different sides of the same organizational coins.
Leaders who can conquer the latter, more difficult terrain most often have to reinvent their leadership skills, mindset and behaviors to do so. Hillen’s book has several dozen case studies outlining this phenomenon through the lens of seven common leadership “stalls” and tips for how to see them and work through them.
The group also discussed how an organization’s most dangerous employee is a top performer who lacks interest or won’t change and grow with the company as it advances. Many C-suite leaders choose to retain these workers because they perform well in their current functional role.
Ultimately, these employees, often key executives, who can’t scale with the business and acquire the new skills and behaviors to perform at the next level, hold back the entire organization. Hillen’s book lays out a formula for spotting this dynamic early and adapting executive development plans to grow leaders along with the company.
“Most leaders requiring reinvention are in that position because of their success in growing the business, so it is doubly hard for a successful executive to sometimes see the need to continue their development and change,” Hillen said. “But time and time again, our experience and research show that every new playing field requires an entirely new approach by leaders.”
The General Managers Council is a platform for leaders to gain advanced and targeted knowledge on best practices for operating, winning and growing their respective businesses across the federal marketplace. Executive members are direct reports to CEOs/chief operating officers and run P&Ls of $100 million in revenue and above.