GBS leaders must align their shared services for the digital age or face extinction

by Jamie Snowdon

Enterprise leaders are under increased pressure to pivot their businesses to meet the needs of consumers and ensure operations are agile enough to support these needs. Yet, the engine room of most organizations’ services — global business services (GBS) — often struggles to do little more than apply cosmetic changes that fail to address the complex changes really needed, placing the future of many GBS leaders in jeopardy.

GBS must increasingly provide innovation and agility

Over the past couple of decades, GBS has been a key operational lever enterprises could use to balance efficiency, cost savings, and quality of internal services. However, organizations are increasingly expanding this remit to include a new dimension — a source of innovation and agility across the organization. We used this to change the old IT adage, “We offer three kinds of IT services: good, cheap, and fast. You can only have two.”  We replaced “fast” with “innovative.” You can have innovative and good, but it won’t be cheap.

  • You can have good and cheap, but it won’t be innovative.
  • You can have cheap and innovative, but it won’t be good.

Crucially, the common GBS criticisms we hear are linked to innovation and agility—the very areas enterprises are looking to expand. Typically, these complaints stem from GBS’ inability to: Continue reading

How Leaders Can Maximize Their Impact

by Henrik Bresman, INSEAD Associate Professor of Organisational Behaviour, and Deborah Ancona, Seley Distinguished Professor of Management, MIT Sloan School of Management

 

Effective leaders need to know whether their ‘people hat’ or ‘P&L hat’ fits most comfortably.

A leading supermarket chain in an eastern European Union country feared an 8 percent drop in sales as discounting giant Lidl was about to enter its market. So, in collaboration with researchers, it decided to run a randomised controlled experiment. The goal was to reduce its costly personnel turnover problem, in a bid to improve quality and operational efficiency. Selected store managers received a letter from top management, encouraging them to do something about the 90 percent yearly staff turnover. It worked: Over the next three quarters, the monthly quit rate fell by 20 to 30 percent. However, surprisingly, this vast improvement led to no discernible effect on the predefined performance metrics (sales and value of perished food). In interviews, the researchers found the explanation. As store managers focused more on HR issues, they spent less time interacting with customers (to increase sales) and dealing with the flow of goods (to reduce food wastage). Continue reading

Are Your High Expectations Hurting Your Team?

During a recent interview with a member of my client’s executive team, a leader said to me, “Nothing I do is ever good enough for [the CEO]. We’re all starting to ask ourselves why we bother trying.” When I later debriefed the assessment findings with the CEO, she said, “People consistently disappoint me. It’s always been that way. I have high standards. That’s why I get the results that I do.”

When we discussed the unintended consequences of her expectations, it had never occurred to her that she was undermining the very results she sought. Conventional management wisdom suggests that setting a high bar for employees is a good thing. But when employees can never reach that bar, those high standards become weapons, leaving bitterness and unrealized potential in their wake.

This study of more than 300 executives in 10 countries shows that approximately 35% of executives fail because of a tendency toward perfection. That’s because achievement-oriented leaders tend to be chronically dissatisfied. While you may be thinking that you’re “just pushing them to be the best,” you may actually be setting them up to fail. Step back and reconsider whether your constant pushing may have unwanted side effects. Here are a few you might see: Continue reading

A framework for succeeding as a first-time CEO

We’ve all seen the signs of a floundering first-time CEO: leadership attributes and behaviors we can all agree are not only ineffective but sometimes harmful. Although well-intended, there are four damaging leadership attributes and behaviors first time CEOs often display:

• Over-helping: First time CEOs are often eager to help their new teams gain trust and build relationships. However, this instinct can occasionally turn into over-helping, which often becomes micromanaging or functional leadership.

• Egocentrism: Perhaps born from a fear of failure or insecurity, first-time CEOs often fall into the trap of being driven by their egos. They take on the hero mentality and the accompanying sense of martyrdom.

• Overcapacity: While CEOs should be eager to get involved, they shouldn’t book themselves over capacity. Frequently, first time CEOs try to do so much they become frantic and unavailable. At the worst of times, this devolves into seagull management.

• Ambiguity: At the start of a first time CEO’s tenure, it may seem like the game is moving too fast. As such, the organization may suffer from an unclear vision, strategy and culture. This can manifest in slow or poor decision making and living in ambiguity. Continue reading

When managers break down under pressure, so do their teams

  • by David Maxfield and Justin Hale

As a leader, much of what you do is relatively forgettable. We don’t mean to insult, but your routine actions on routine days are experienced by your direct reports as, well, routine.

But for non-routine days — the days when you are under the gun, feeling the heat, or pushed to your limits — how you respond under the pressure makes an indelible impression on the people around you. Our latest research shows that your temperament in these crucial moments has a tremendous impact on your team’s performance.

When the hammer comes down, are you calm, collected, candid, curious, direct, and willing to listen? That would be ideal, wouldn’t it? Or would your direct reports describe you as upset, angry, closed-minded, rejecting, or even devious?

We asked more than 1,300 people in an online survey to describe their leader’s style under stress and the impact of that behavior on their work. We found that a large majority of managers and leaders buckle under pressure. Specifically, respondents reported that, when under pressure: Continue reading