World-Changing Anniversaries

This week marks two world-changing anniversaries -- they will go unnoticed on your Outlook calendar or CNN's news crawl. You won't hear your favorite NPR or PBS commentator wax eloquent about these propitious days. The blogosphere and talk show hosts, left, right, and center, will not be foaming at the mouth about them...BUT...

On May 25, 1787, the U.S. Constitutional Convention officially opened in Philadelphia. Delegates from 12 of the 13 states were drifting in with different agendas and expectations. Some thought they were just going to spend a few weeks making some amendments to the existing Articles of Confederation that had governed the new nation for a handful of years. Some weren't sure what was going to happen but they knew something had to be done to get the country out of the crisis at hand. A few had come to defend the status quo and try to stop any changes from being passed. And then there was that core group of conspirators that were preparing to commit treason for the second time...but more about them later...

What was that crisis facing the U.S. in 1787? A few years after the hard-fought Revolution, the country was on the verge of collapse.

• With no central currency or monetary policy, states printed their own worthless paper money, driving triple-digit inflation.
  
• Inflation led to foreclosures on many farms in the largely agricultural nation.
  
• Taking matters into their own hands and led by Revolutionary soldier Captain Shays, a gaggle of Massachusetts farmers closed down the courts that were taking their farms, and marched on the arsenal in Springfield, declaring a second revolution. Although they were routed by the state militia, Shays' Rebellion sent a shock wave through the country.
  
• The British, Spanish, and French were circling like vultures waiting to pick apart the new nation like road kill.
  
• Meanwhile the states were feuding with one another over boundaries, fishing and navigation rights, and trade. Several were preparing to go to war while others considered abandoning the fragile union and going it alone or allying with a foreign power.
  
• And what of the Confederation Congress? It was impotent since it could not impose any legislation on the sovereign states and could only beg for money, which was seldom forthcoming. The Articles could not be amended unless all 13 states agreed and that seldom happened.

Back to those treasonous conspirators...James Madison, Alexander Hamilton, Ben Franklin, and a handful of others decided that the time had come to overthrow the Articles of Confederation and establish a new constitution that would have authority over the states. To this end they called the convention, connived to get Congress to approve the session, and enlisted George Washington to come as a representative from Virginia and provide the political cover they needed to create the new constitution.

Of course, the Convention, as one of its first acts, elected Washington to preside over the meeting. And this brings us to our second important date, May 29, 1787.

On this day, the conspirators tipped their hand to the shock of many of the delegates. Edmund Randolph, the Governor of Virginia and host of the Convention, rose to present his opening remarks on the crisis and then read out the Virginia Plan. Authored for the most part by James Madison, it laid out a radical proposal for a republican form of government with representation of the people in a tripartite organization of legislative, executive, and executive branches. These were designed to check and balance one another. This bombshell plan became the agenda for debate that lasted for another four months. But in the end, the Constitution that we know today was written and then ratified by enough states to go into effect.

As the Convention ebbed and flowed, the delegates used many of the techniques we recognize today as strategic planning. In my new book, Conventional Wisdom: How Today's Leaders Plan, Perform, and Progress Like the Founding Fathers, 20 contemporary leaders describe how they use these same techniques.

• Luda Kopeikina, CEO of Noventra, describes how she encourages debate and idea generation.
  
• John Zumwalt describes how he uses a common mission to drive successful action at PBSJ just as that quintessential mission statement, the Constitution's Preamble, sets out our country's mission.
  
• Howard Putnam, an early CEO at Southwest Airlines, used his planning session to set the floundering company on a new path and unite his team behind it.
  
• Michael Howe describes his evolution as a strategic leader who decided to change the face of health care.
  
• Alan Levine, now Secretary of Health and Hospitals for Louisiana, relates how he turned a county health care system into a world-class operation delivering high value to patients and lower costs to tax payers.

What can we learn from these remarkable anniversaries?

In times of crisis -- seek bold, break-through solutions -- reject the status quo and your comfort zone -- stick to your mission.

(c) Rebecca Staton-Reinstein

Check out the book for more tales of strategic leadership both at the Constitutional Convention and in today's successful organizations. http://ConventionalWisdomCenter.com/

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Opportunity trumps cost cutting

Folks, the word is in from some strategic leaders...Opportunity trumps cost cutting for companies that will succeed in this economic environment. Now this is not a new concept but you wouldn't know it if you only listen to the TV news, cable or network. Yes, it's tough out there and most companies don't have money to throw away, but, and it's a very big but...

Why am I saying this? Because in the last couple of weeks I've chaired two very different panels of people who are strategic leaders who all say the winning strategy is looking for the opportunities -- the top line, revenue generation through innovation and grabbing the vast opportunities that are out there, is where the winners are. You cannot cut your way to profitability or success.

Two weeks ago I chaired a panel of five of the executives I interviewed for my newly published book. (Conventional Wisdom: How Today's Leaders Plan, Perform, and Progress Like the Founding Fathers.) They included Greg Swienton, CEO, Ryder System, Ben Baldanza, CEO, Spirit Airlines, George Hanbury, COO/EVP, Nova Southeastern University, John Stunson, City Manager, Oakland Park, Florida, and Evan Rees, former banking executive and fundraiser for the Boy Scouts and homeless. Today I chaired a panel of technology executives speaking at an international conference on software quality. They were Jason Kalich, General Manager, Relationship Experience Division, Microsoft, Mike Zanillo, CIO, WMS (gaming entertainment industry,) and Phil Beckman, VP of Research and Development/Products, SpringCM, (on-demand content management solutions.)

These executives from diverse industries, geographical regions, backgrounds, and areas of expertise ALL said the same thing. It's about opportunity. Do you hear that? Opportunity.

A few blog entries ago I reminded people about the Chinese ideogram for the word "Crisis" that contains the symbols for "Danger" AND "Opportunity." These folks all echoed the same understanding of the universe. We must acknowledge the danger and then focus our energies on the Opportunity. The framers of the U.S. Constitution and the entire revolutionary generation that we acknowledge as the founders of the U.S. understood this. They knew their lives were at stake -- the danger was physically hanging on the gallows or the nearest tree. Like the panelist they were not unrealistic in their assessment of the danger. But unlike the talking (empty?) heads on TV, they did not allow that to constrain their thinking and creativity. These leaders, ancient and modern, focused on opportunity, on finding new areas for success, of capturing the future and not miring themselves in the present or the past.

Think times are tough? It's a matter of perspective. Think again, it's the time of opportunity. Read my earlier blog on the manufacturer who captured the lawn flamingo market...or look at the origins of Microsoft or other great companies that took carpe deim literally -- seize the day!

April 1 is not a foolish day

April 1 is an important day in American history, although few people know it. This is the anniversary of the first day the new Congress under the new Constitution met, had a quorum, and could conduct business. April 1, 1790. No foolin'...James Madison and the other delegates assembled to begin the business of putting the newly ratified Constitution into action. They began the business of ensuring the fragile union survived and grew strong.

This was no easy task. This was a new form of republican government. The delegates were serving two year terms in the newly established House of Representatives. They knew they would have some real power to get things done and to levy the necessary taxes to meet their obligations. Under the now-defunct Articles of Confederation, they were only able to beg the states to support initiatives with money. Now they represented specific geographical constituencies and each had a vote unlike the one vote per state under the Articles.

The crisis that brought on the Constitutional Convention and resulted in the new government was still raging; foreclosures, inflation, threatening foreign powers, creditors demanding payment for war debt, and more. The situation was not unlike today, although the country was more vulnerable than now.

As usual, James Madison had made a thorough study of the issues. He had the responsibility for seeing that George Washington's agenda made it through the new legislature. To gain ratification of the new Constitution, he had promised to bring a bill of rights into the amendment process. He would also have to see to it that the proposal for funding the debt and establishing a national bank would pass even though he had grave doubts about it. However, Alexander Hamilton, the new Secretary of the Treasury had convinced him it was a necessity to deal with their disastrous financial and credit situation.

Today's leaders face many of the same crises as the those in that first Congress. In fact the parallels are startling. They also face tough, even unpleasant choices. Several of the contemporary leaders profiled in my new book spoke at a seminar for local business people on March 27. They agreed with the premise that now is the time to focus on opportunity while doing what is necessary to get through the short term.

Greg Swienton, CEO of Ryder System, repeated his philosophy from his profile in the book. He has charged his team with looking for every alternative saving before letting an employee go. That means getting rid of things that make their lives more convenient or comfortable but do not actually contribute anything. He had already led the way by getting rid of the corporate jet when he became CEO.

Ben Baldanza, CEO of Spirit Airlines, was also on the panel and interviewed in the book. In a piece about him in the New York Times on Monday, the reporter was incredulous at his plain office in a nondescript office park. Baldanza was photographed with his own vacuum cleaner he uses to keep his office clean. But this is exactly the leadership image he is trying to set.

The key for all of the leaders on the panel is to focus on important isses with strong, decisive actions that are congruent with their larger mission.

So, no foolin'...take these leadership lessons to heart on this historic day.
(c) Rebecca Staton-Reinstein

Read more about these modern leaders and those of the early republic today -- Conventional Wisdom: How Today's Leaders Plan, Perform, and Progress Like the Founding Fathers http://www.conventionalwisdomcenter.com/

The full panel included: Greg Swienton, CEO, Ryder System; Ben Baldanza, CEO, Spirit Airlines; John Stunson, City Manager, Oakland Park, Florida; George Hanbury, COO/EVP Nova Southeastern University; Evan Rees, former President, CNL Bank, now working full time to raise money for the Boy Scouts and the Partnership for the Homeless.

The panel presentation will be available soon on our website. http://www.advantageleadership.com/

Casting a longer shadow

It seemed like an insignificant thing at the time. Jim, the CEO of a Midwestern printing company, decided to start drinking bottled water. He made no pronouncement and asked no one else to do the same. Six months later, every manager and supervisor was drinking bottled water and bottled water dispensers had been installed throughout the plant and offices.

What happened? It's a phenomenon known as 'Shadow of the Leader.' Put very simply, people unconsciously begin to act like, and even think like, the leader of the group. For many it is completely unconscious. The leader doesn't force it to happen (unless of course you're dealing with a dictator or megalomaniac or other negative leader.) But great leaders set out consciously to create an enduring culture.

The Shadow has great consequences for the organization. I've been looking at how this plays out in the way things get organized and then get done for almost 40 years. Back in the 1970s a new take on leadership and corporate culture started to emerge. This Shadow of the Leader concept was first studied in depth by Larry Senn in his 1970 dissertation. My own dissertation explored the same phenomenon in a grassroots, community organization. Later as a corporate officer, I went through training by the Senn Delaney company on applying Senn's insights. The idea had come full circle with me.

In my new book, I was back on the same quest -- not to look for trivial examples like drinking bottled water but to find examples that would be useful for every leader in today's new tough reality. Perhaps one of the best examples from the history I explored was George Washington.

Washington was not always an iconic leader. His early military career did not look too promising. But he had a characteristic that ultimately propelled him to the top. He determined to mold his own character into someone he and others could admire. So when he was appointed to head the Continental Army and wrest the country from the British empire, he was ready. He turned a rag tag bunch of farmers, merchants, and ne'er-do-wells into a disciplined fighting force.

But it was his peace-time leadership that illustrates the Shadow concept best. First, at the Constitutional Convention he was immediately and unanimously elected to serve as president of that historic session. Delegates watched his body language closely to see which ideas he favored. Although he never took part in the public debates, his views were well known and held great sway with the delegates. On the last day, when he finally spoke and suggested changing the number of voters for each congressional district, the assembly passed it without discussion.

There was never a doubt about who the first elected president of the Republic would be. In fact, there were a significant number of leaders who believed that he should be an elected king. But Washington was a believer in the republican cause of representative government and refused to turn his office into a throne. He understood his Shadow and thought long and hard about every decision from the most trivial to the most profound -- he knew history was watching.

When he stepped down after two terms, he established a precedent that held until the Roosevelt administration and was then codified in the 22nd amendment to the Constitution.

Washington cast a long Shadow of leadership that established a dignity about the office of the president. (Now lest you continue to see him as the stiff figure in paintings and statues, remember that he was a renowned dancer and enjoyed partnering the ladies in the most intricate and spirited dances of the day.)

Perhaps the most enduring part of his Shadow for leaders to be aware of today was his courage in the face of every danger -- not just in war. As the country was collapsing in 1787, he stepped forward to take part in the Constitutional Convention -- which gave it legitimacy and ensured others would join in. When he took on the presidency of the new republic, he had to invent it and reached out to trusted leaders for advice and counsel -- Alexander Hamilton, James Madison, Thomas Jefferson. He was willing to face the crises of his day -- foreclosures, inflation, civil unrest, foreign threats, falling credit, piracy, and more. He was willing to invent a new form of government to save the country.

Leaders can learn a lot from walking in Washington's Shadow -- there's a lot of light there.

(c) Rebecca Staton-Reinstein, President, Advantage Leadership, Inc.
Author: Conventional Wisdom: How Today's Leaders Plan, Perform, and Progress Like the Founding Fathers www.ConventionalWisdomCenter.com

A Tweet is NOT Sweet

-- Did you watch the President's address to Congress this week? If you watched the audience of Senators and Representatives closely you saw some of them thumbing away, tweeting to their followers.
-- And your point is?
-- That's just it. There are millions of folks out there who don't find this a problem. You see, millions of folks are delusional. There are two points in that delusion that hit a nerve with me.

First point: Despite those who claim otherwise, we do NOT multi-task. What the brain is actually doing is switching from task to task quickly so it seems to our conscious minds we're doing more than one thing at a time. Here's some proof for you -- if you drive and talk on the phone (even hands free) you have the same chance of crashing as if you were drunk or stoned.

Test it out for yourself -- no, I don't mean drink and drive -- I mean watch the news on your favorite channel. Have someone else in the room sitting with eyes closed just listening to the news. As the news goes on in the central panel, you start reading the crawl at the bottom of the page. If they have one of those places that marks the time or the stock ticker, watch that for a while. If they have one of those pop ups for another show, be sure to watch that. In other words, consciously watch the way you may do it every day. After about 15 minutes, compare notes with the 'listener' about the news stories in the central panel.

If your recall is as good as that of the listener, write and tell me. But it won't be.

Those folks who were tweeting during the president's presentation would not be able to pass a simple test and certainly missed the subtleties, the flow of concepts, the rhetorical flourishes, and body language subliminal signals.

Too bad. How can you make a political or intellectual judgement or analysis if you weren't fully present....Oh, you recorded it? Sorry, it ain't the same as being there.

Point two: What sort of narcissist are you to believe that your every stray thought must be communicated to the universe. And what sort of poverty of mind do you have if you follow some one's every stray thought?
Every one's mind strays, even during a compelling situation. But people with their brain cells functioning train themselves to focus on the important. Think of hero-pilot "Sully." What if he were busy tweeting his stray thoughts while trying to land an airliner in the Hudson River? No, "nothing like the aspect of being hanged in the morning to concentrate your mind."

The framers of the U.S. Constitution were not a lot different from most of us. They knew how easy it was to lose focus or be carried away by their own narcissistic impulses. When they put together their rules for the Convention in 1787, they made a special point of insisting that no one was to write notes, read a newspaper, or talk with his neighbor during their discussions. No multi-tasking allowed. Why? They were astute observers of human nature and knew we could not do it. Period. The End.

And look what they did as they tried to tame their human inclinations. They sat on wooden chairs in the Pennsylvania State House six days a week from 10 a.m. until 4 p.m. with no formal breaks, no designer water bottles, no snacks, no working lunches, no coffee breaks, no tweeting, no phone calls, no ipods, no scrolling...They did this for 4 months in a stuffy, hot, humid room. They listened to everyone -- even the windbags. They focused, they argued, they went back over old territory and reexamined it, they postured, they made good and bad arguments, they pondered, they considered and reconsidered. They wrote a Constitution that has stood the test of time for over 200 years with few amendments.

They weren't perfect. They were very much like us. They understood how easy it is to lose focus, so they worked hard to do as good a job as they could, without giving in to their tendency to be distracted.

We sing the praises of the distracted, multi-tasking, type A personalities. Are we getting more done? Are we getting more important things done? Are we creating greater significance for our own lives, the lives of others or the planet?

One of the most successful leaders I interviewed for my new book, Greg Swienton, the CEO of Ryder System, talked to me about the importance of true balance in one's life. He talked about the discipline of making real time for family, faith, community, and refreshing the spirit.

We could all learn a lesson from Greg and the framers. Stop tweeting and start communicating. Stop tweeting and start listening. Stop tweeting and get a grip on your own place in the cosmos.
(c) Rebecca Staton-Reinstein

Read more about Greg Swienton and other contemporary and historic leaders in Conventional Wisdom: How Today's Leaders Plan, Perform, and Progress Like the Founding Fathers. www.ConventionalWisdomCenter.com

I'm saving the flamingos

Out in the rolling hills of Pennsylvania there are many manufacturing plants that are rollicking along as if there were no constant drumbeat of doom and gloom on TV. I visited two of them this week and it was a pleasant surprise. Both companies have added to their capacity and product diversity by buying up equipment from competitors who have given up. Both are looking for more and more creative ways to cut costs while they expand their offerings. Both are thriving.

One of these plants produces all sorts of gardening and lawn-related items; plant containers, hardware for window boxes, and numerous other things. But what really struck me were the flamingos. That's right, those neon pink birds you've seen perched in people's yards are alive and well. Those flamingos just might pull the company right through the recession and help keep profit rolling in.

The owner bought the injection molding equipment from a company that had shuttered its doors. He was confident that this was one item that he would not have to compete with China to produce cheaply in the U.S. You see, those flamingos are full of air, sort of like a hard plastic balloon. That makes them very bulky to ship in those giant containers you see on ships. You can't get enough in the container to make it profitable.

Now the owner is working on a new jig to be able to dip about 10 of those birds in the paint to get those cute little black and yellow beaks looking just right -- again saving money and time -- no more hand painting.

So what's my point? Pretty simple. As a friend of mine says, when everyone else is zigging, it's time for you to zag.

That's what the framers of the U.S. Constitution did in 1787 when they decided to save the Republic. Remember, at that time foreclosures were destroying farms and families, inflation was destroying every one's financial security, foreign countries were poised for invasion, the government was impotent...there were even pirates attacking our shipping off the cost of Africa.

Sound familiar? 222 years ago, our leaders were facing many of the same challenges as today. They 55 men who made up the Constitutional Convention had decided it was time to zag. Many so-called leaders in the 13 states didn't want to lose their political power and change the disastrous status quo. Even Patrick Henry refused to participate -- he said he smelled a rat!

So George Washington, James Madison, and others met, formulated a new Constitution, shepherded it through the ratification process, and then served in the new government. They took a bold new direction, they innovated, they refused to participate in the dyer predictions of the imminent downfall of America.

So, I'm following their lead and that of that innovative factory owner in Pennsylvania. How about you? What are you doing to zag and thrive in this economic climate?

I said to the factory owner, "I guess the flamingos will save you." "No," he said, "I'm saving the flamingos!"

(c)Rebecca Staton-Reinstein

Read more about this innovative plant owner in my new book, Conventional Wisdom: How Today's Leaders Plan, Perform, and Progress Like the Founding Fathers. It's available now in a special pre-publication offer. www.ConventionalWisdomCenter.com

"I screwed up" or "Mistakes were made"...Your Choice

The news programs ran the video loops endlessly this morning as President Obama took responsibility for nominating people who hadn't paid their taxes. Most of the commenters seemed genuinely surprised to hear a leader say that he had made a mistake. He went on to say he would take the consequences and act to rectify his mistakes going forward.

I wasn't particularly surprised. Not because of some partisan political position but because I’ve been interviewing a large number of executives over the last few years for my new book and they do the same thing. It may not be common for politicians to fess up but strategic leaders everywhere know it is the only way to handle inevitable mistakes.

Consider the alternatives – the ubiquitous "mistakes were made" or outright denial. In 2007, I blogged about that nasty, weaseling-out phrase and quoted from some of my interviewees on the importance of admitting mistakes. (http://conventionalwisdominstitute.blogspot.com/2007/10/mistakes-were-made.html) No need to comment on denial…

Now, in my new book, Conventional Wisdom: How Today’s Leaders Plan, Perform, and Progress, I discuss in detail how even great leaders make big mistakes and, more importantly what they do when the mistake comes to light. These executives all told the same story, summed up in the words of one of them, "When you make a mistake, admit it, get out quickly, and fix it." Sound advice that many would do well to follow whether in public life, managing a department, or trying to lead a decent personal life.

Here is what I concluded in the book:

What Distinguishes Great Leaders?

* How does a leader handle the bad decision? Great leaders acknowledge their mistakes personally. They do not fall back on the passive “mistakes were made” formula. Instead, they say, "I made a mistake." They accept the consequences of that bad decision.

* What does a leader do? Great leaders take personal responsibility, usually without a lot of fanfare. They take the next right action, no matter what others say or do. They move quickly to fix their errors.

* How does a leader show his beliefs? Great leaders act on their beliefs and are courageous role models for their convictions.

* How does a leader use a mistake? Great leaders learn from their mistakes and act differently in the future. They discover the frames [psychological blinders] leading them to the bad decision in the first place. They get more diverse perspectives on their future decisions.

* How does a leader confront his or her frames? Great leaders understand their own perceptions of the situation can cloud their decision making. They seek other opinions. They recognize they are framed, and work to stand outside their own frames and doubt their own infallibility.

* How does a leader help others to admit and correct mistakes? Great leaders understand humans make mistakes. They encourage risk-taking and do not automatically punish mistakes. They make sure people have the opportunity to learn and grow from mistakes and confront their own limiting frames.

How do you stack up on the mistake-o-meter? As difficult as it is, do you admit you screwed up? Do you take full responsibility? Do you find the source of the mistake and correct it?
It's always so much easier to blame someone or something than to stand up and take your lumps. Little kids say, "I’m sorry," and hope that will make everything all better. But it doesn’t. Because the kid doesn’t have any PLAN to get better. As grown ups, as people who need to incorporate sound leadership into our lives, we have an obligation to admit, submit, and fix it.

(c) Rebecca Staton-Reinstein and Advantage Leadership, Inc.

Read some of the real-life examples of big screw-ups and what strategic leaders did to make it better. Go to http://www.ConventionalWisdomCenter.com and take advantage of special offers to get you copy of Conventional Wisdom: How Today’s Leaders Plan, Perform, and Progress Like the Founding Fathers. Then send me your feedback to this special address: ConventionWisdom@cs.com

This is the first book to:
* tie the lessons from the U.S. Constitutional framers to contemporary leaders
* reveal new leadership secrets from George Washington)
* show you how to achieve the impossible by unleashing the Madison Factor
* show you how to get spectacular results using the practical strategic approaches used by the framers and modern executives.

One critic raved: "This is not a book; it’s a catalyst for strategic leadership." Get your copy today.

The book will not be available on Amazon until May 25, the anniversary of the beginning of the Constitutional Convention. Get your copy today and take advantage of the prepublication offers. http://www.ConventionalWisdomCenter.com

Read a recent article on the importance of the Mission -- Be Careful What You Ask For: Getting the Mission Wrong
http://newsmanager.commpartners.com/tappiaotc/issues/2008-12-03.html