Tag Archives: management

In search of a better stretch target

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By Ryan Davies, Hugues Lavandier, and Ken Schwartz

Aggressive goals can dramatically improve a company’s performance. But unachievable goals can do more harm than good. Here’s how to stretch without breaking.

The urge to improve is innate in most companies, where better service, stronger performance, and faster operations are inextricably tied to earnings, bonuses, and shareholder returns. The impetus is so strong, in fact, that the practice of setting stretch targets for a company’s performance has become emblematic for the grit and aggressiveness expected of a modern executive. Managers take pride in seeking to achieve the unthinkable.

Sometimes they succeed, surprising even themselves with how much stretch targets can improve performance. But there are limits to how far they can push. The wrong metrics can sap motivation and undermine performance.1 Targets set along one metric without regard for the effect on performance elsewhere can destroy value. And broad-based aggregate measures of profit margin, operating profit, and earnings per share are only loosely linked to valuation. One CFO recently admitted to us that his multibillion-dollar global company would hit its quarterly goals for earnings before interest, taxes, depreciation, and amortization (EBITDA), but only at the cost of reducing its operating cash flow. Signs of unhealthy stretch targets can be quite clear—and any of them can lead to poor behaviors, distracting senior managers and having no impact on value.

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Four pathways to authentic leadership

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By Peter Himmelman

I’m not at all pleased to report this, but even the good ol’ word leadership has become something of a buzzword — a term people bandy about without considering its deeper implications. It’s the same thing that’s happened with words like creativity, innovation and disruption.

In an attempt to service the ever-increasing demand for web content, the pace of creating content has also increased. Sadly, this is all too often accompanied by a decrease in serious analysis. To attract as many readers as possible to their sites marketers tend to overuse certain words that emerge as more eye-catching than others. The trouble is those words get used so often they begin to lose their inherent meaning. This is a problem for both society and individuals when it happens with words that deserve more, rather than less of our attention. To help refocus, here are four pathways to evincing more authentic… (and here comes the buzzword again) —leadership.

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Servant leadership: Who is ultimately responsible for your people’s success?

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By Ronald M. Allen

The emotional high of going to work and being among a group of productive associates, fellow employees with a common goal and supported by an understood incentive, moves people to act like no other force.

The key elements are that the employees feel part of something bigger than themselves. They have a sense of purpose. They are supported by the correct incentives to put forth their best efforts. They come each and every day to give so that the team will receive the benefit of their contribution and be recognized.

When a leader executes accordingly, this show of confidence in one’s fellow employees speaks to the security of the leader and the trust they show in their employees. But before you can learn how to improve your own leadership, you must understand what qualities make up a servant leader.

Here are some of the characteristics of successful servant leaders:

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Can leaders be both likable and respected?

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By Jayson DeMers

Every leader’s ideal relationship to his or her subordinates requires some measure of likability and respect. A likable leader will get along with subordinates on a personal level, and they’ll be able to enjoy each other’s company, making the workday more enjoyable and boosting morale.

A respectable leader, in addition, will command attention, discipline, and obedience from subordinates, which will lead to a more organized workplace, and a firmer hierarchy in the organization.

The problem is, respectability and likability exist, in some ways, on a spectrum. Taking an action that makes you more likable might lose you some respect. And taking an action that commands respect could make you less likable. So, is it possible to be both liked and respected? And if not, which one is more important?

Respect as a necessity
First, as a leader, understand that respect is a necessity, and it can exist both as a form of compliance and in a freely given form. For example, most employees will follow your commands because they know they might be fired if they don’t; this is respect as a form of compliance.

Another group of employees might admire your leadership style, and personally wish to follow your directives so they can align themselves with that style; this is respect freely given.

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7 Ways Outstanding Leaders Do Things Differently

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By Lolly Daskal

It may feel as though we’re in a crisis of leadership, but if you stop to look around it’s not hard to find examples of CEOs, middle managers, elected officials, public servants, neighborhood watch organizers, team captains and coaches, teachers and countless others who are doing a good job as leaders. Most of us are either in that group or working toward it.

Much rarer are the exceptional leaders whose qualities truly shine, the ones who practice the kind of leadership we all aspire to.

In my years of leadership consulting, I’ve learned that most of what makes outstanding leaders outstanding lies not in the things they do but who they are when they take action.

Here are seven of the most important:

1. Outstanding leaders lead with consistency of character.
At the center of all great leadership are two interconnected qualities: consistency and character. Those who lead with character do the right thing 100 percent of the time, even if no one is watching and the benefits of cheating are great. They understand that their actions set the standard for their entire team, and that their influence reaches far beyond themselves.

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