Tuesday, July 13, 2010

Improved Profits

"How can Third Generation Leadership increase my organisation's profitability?" That was a question posed to me recently. The answer is simple.

Trust the people you work with (not just the managers) and, working with them in a very open session at which everything is "on the table", work through the following process:
  1. Make a list of all the things impact on your organisation's ability to operate profitably.
  2. Sort the list into two groups - those things within your organisation and those things external to your organisation
  3. Sort the "internal" list into the following categories: knowledge, strategy, non-human resources, structure, human process
  4. Very honestly and as impartially as possible, assess each item in each category of this list as to whether it actively enhances profitability, impedes profitability (usually by causing a problem or blockage that affects some other item from functioning effectively), or operates in such a way as to prevent profitability
  5. Determine how to rid your organisation of those things that prevent profitability and clear the impediments
  6. Determine how those items enhancing profitability can be further supported
  7. Sort the "external" list into the following categories: those you can influence, those you cannot influence
  8. Develop a very clear plan for positively influencing each item you can influence and develop an approach for dealing with those items you cannot influence
  9. Empower everyone to make the new plan work

A First Generation Leader or a Second Generation Leader will try to control this discussion and will see as a threat any suggestions which question the leader's thought process and preferred approach. Such leaders will make it clear that some items are not open for consideration. This is a red zone approach.

A Third Generation Leader will operate from his or her brain's blue zone of control. This will allow full engagement with everyone involved and enable new and creative solutions and approaches to be developed. By then trusting people to actually implement what they have worked on developing, their commitment and competence will be harnessed towards achieving what needs to be done.

I'd love to know what you think of this. Please post a comment below.

More information about Doug Long at http://www.dglong.com/

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