Dear Wannabe CEO,
The Wikipedia defines Young Turks as, "groups or individuals inside an organization who are progressive and seek prominence and power." Does this description fit you? If it does, then, I am sure you would have noticed the exciting headline in the Economic Times (30th June 2011) which said, " Young CEOs Add More Zip to Companies than the Old! The report quotes the findings of a study of BSE 100 companies which show that CEOs under 50 (the young category) added an average of 26.43% value to their companies as against the old guard (over 55) whose value addition was only 4.34%. Now you will notice that the young category in this case stretches up to age 50, but I am guessing you as a young (and I mean young) aspiring executive with fire in your belly, fierce ambition and sharp focus are under 30. If you are, then please read on.
The Wikipedia defines Young Turks as, "groups or individuals inside an organization who are progressive and seek prominence and power." Does this description fit you? If it does, then, I am sure you would have noticed the exciting headline in the Economic Times (30th June 2011) which said, " Young CEOs Add More Zip to Companies than the Old! The report quotes the findings of a study of BSE 100 companies which show that CEOs under 50 (the young category) added an average of 26.43% value to their companies as against the old guard (over 55) whose value addition was only 4.34%. Now you will notice that the young category in this case stretches up to age 50, but I am guessing you as a young (and I mean young) aspiring executive with fire in your belly, fierce ambition and sharp focus are under 30. If you are, then please read on.
As a member of the old guard, my experience tells me, that as a part of your preparation for the leadership game, you need to gain clarity about a few key factors. Two things to begin with;
- Your Values and Beliefs
- Your Risk-Benefit Quotient
Sorry to sound patronising, but since many of your tribe rarely make time for self-reflection, I propose the following simple start to your journey.
STEP 1: Take stock of your Values and Beliefs by identifying your school of leadership:
The clearer you are about what you value and believe in, the happier and more effective you will be.
Values are about how we have learnt to think things ought to be or people ought to behave, especially in terms of qualities such as honesty, integrity and openness.
Beliefs are generalizations that people use to give themselves a sense of certainty and a basis for decision-making in an uncertain and ambiguous world.
Adapting the work of G. Richard Shell, author of Bargaining for Advantage in the context of business, leaders can belong to three schools of leadership:
1. The Poker School - "It's a Game"
To poker players, business is a game and anything that can be done to gain advantage within the rules of the game (generally speaking, the laws of the land), is fair and just.
To poker players, business is a game and anything that can be done to gain advantage within the rules of the game (generally speaking, the laws of the land), is fair and just.
E.g. The Ambanis
2. The Idealist School - "Do the right thing, even if it hurts."
To the idealist, there is no separation between business and life. If you would not lie to your loved ones, you do not lie to your clients. If it's OK to tell a "white lie" to protect the feelings of a friend or prevent a tragedy, it's OK to tell a "white lie" to protect a corporate ally or prevent a business tragedy. While two idealists may differ in the specific set of rules they live by, they share the rigidity of doing what they believe to be "right", even when it seems contrary to their business goals.
To the idealist, there is no separation between business and life. If you would not lie to your loved ones, you do not lie to your clients. If it's OK to tell a "white lie" to protect the feelings of a friend or prevent a tragedy, it's OK to tell a "white lie" to protect a corporate ally or prevent a business tragedy. While two idealists may differ in the specific set of rules they live by, they share the rigidity of doing what they believe to be "right", even when it seems contrary to their business goals.
E.g. N. R. Narayana Murthy
3. The Pragmatist School - "What goes around comes around."
The behaviour of a pragmatist may be inseparable from that of an idealist, but the motivation is different. While the idealist tells the truth and treats people fairly because it's "the right thing to do", the pragmatist tells the truth and treats people fairly because they believe it is the most effective way of getting things done. However, they will not hesitate to use deception as a necessary tool in pursuing their aims. Because pragmatists value their reputation (being seen to be honest), they will tend towards "misleading" statements over outright lies.
The behaviour of a pragmatist may be inseparable from that of an idealist, but the motivation is different. While the idealist tells the truth and treats people fairly because it's "the right thing to do", the pragmatist tells the truth and treats people fairly because they believe it is the most effective way of getting things done. However, they will not hesitate to use deception as a necessary tool in pursuing their aims. Because pragmatists value their reputation (being seen to be honest), they will tend towards "misleading" statements over outright lies.
E.g. Barrack Obama
To which school of leadership do you belong?
STEP 2: Assess your risk-benefit quotient
The JISC Infonet defines risk as: 'A future event (or series of events) with a probability of occurrence and the potential for a) loss or b) impact on objectives that can be either positive or negative.'
No decision can ever be completely free of risk, but you also have to weigh up the benefits. How good have you been at assessing the probability of risk vs. the benefits? Use the Risk Matrix below to assess six major decisions you have made in the past as below;
1. Analyse each of the six decisions based on two parameters; Risk and Impact
2. Enter the results of each finding by ticking the appropriate box in the matrix
3. Enter your scores in the table below.
Zone | No. Of Decisions | Risk Type |
| Purple | Aggressive risk-taker | |
| Orange | Balanced risk taker | |
| Pink | Unjustified risk-taker | |
| Yellow | Risk averse |
This analysis should help you increase your awareness of your ability to assess risk vs. the attendant gains. Considering that different positions and profiles need different degree of risk taking ability, you can draw your own conclusions about your suitability for each.
Call to Action
You have assessed yourself for two important factors in your success as a leader; values and beliefs and risk type, but bear in mind these tools are only meant to heighten your awareness of the two. To be better prepared for the leadership game, you need to constantly work on analysing and evolving yourself as a leader, not only in these two areas but many others as well!
All the Best!
Your Well-wisher.
All the Best!
Your Well-wisher.
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| Uday Arur, Business coach |
