Friday, June 19, 2009

Agreeing to differ is key

Senior managers must seek co-operation by appreciating uniqueness and differences in people, writes Winnie Chiu.


Many business issues are caused by interdepartmental communication breakdown and misaligned objectives. When something goes wrong we start to name and blame. Have we ever tried to seek first to understand? Often we will hear that the sales department did not clarify expectations, logistics did not deliver on time, or that technology support did not fix the problem. They screwed things up and it is not my fault. I have my goals and numbers to meet and as long as I meet them, I am successful in the eyes of the company.
Do these statements sound familiar?
How often are managers and business leaders insisting it's their way or the highway? How often are we sitting at the bottom of the well looking up and telling people how big the world is?
We are often convinced that our perceived reality is the real reality.
This week is all about the sixth habit of Stephen Covey's book The Seven Habits of Highly Effective People, which is synergising. Habit four, think win-win is the root to effective human relationships and habit five is the route or the method of putting win-win into practice. Habit six is about achieving unity and oneness with ourselves, our loved ones, our friends and colleagues.
Synergy, originating from the Greek word syn-ergo, or "working together", is the interaction or co-operation of two or more organisations, substances, or other agents to produce a combined effect greater than the sum of their separate effects.
The key to synergy is valuing different perspectives and realising that all people see the world from their perspective and not as it is.
The essence of synergy is really the ability to get to the third alternative - it is not your way or my way, but a higher way. It is a time when we learn to appreciate uniqueness and differences in people whether they be physical or mental.
As senior managers are we creating the synergistic culture which allows the appreciation and celebration of differences?
According to Mr Covey, synergy is a natural phenomenon that produces incredible results.
Researchers at the University of Maryland discovered that growing tomatoes and asparagus together benefited both crops. The asparagus roots exude a chemical that kills many of the parasites that either feed on tomato roots or carry diseases to the plant. Tomatoes, in turn, repel the asparagus beetle. Both plants do better when planted together then either does alone.
We must have a healthy respect for diversity and respect that everyone is unique and original to achieve synergy. We should also learn to value others' opinions whether we agree with them or not. By so doing, we will be more responsive to new ideas and able to create balance.
Develop trust with others by discovering and sharing common interests and do not stereotype. An executive who fails to do so will become increasingly isolated from others who reject the culture in which he lives. His efforts in associating and working with others will be essentially to clone them, to make them over in his own image. He will surround himself with people who think as he thinks, and sees as he sees. Because he does not appreciate or tolerate differences he will experience no synergy. We must remember that synergy is not about compromising, it is about creating a whole that is greater than the sum of its parts. It is about creating and finding a third alternative between your way and my way of doing things.
Synergising produces positive energy. While we synergise, we examine, explore and seek different perspectives openly enough to alter or complete our own beliefs.
It is a win-win co-operation with a mutually agreed end in mind.
How often are we looking at things from another's perspective? How often do we try to understand and how often do we just focus on finding a solution rather than proving who is right and who is wrong? At the end of the day, does this really matter?
Dr Covey was in Hong Kong last November conducting a seminar on leadership greatness and I discussed synergy with him.
He said that in getting two parties to reach the place where they could forgo their visions or demands and open up to the possibility that something entirely different might be possible, was difficult. It required a lot of confidence and a willingness to be vulnerable in letting go.
Dr Covey was asked how people established respect, empathy and trust with other people that was strong enough to foster synergy, especially when starting from a point of conflict.
Dr Covey said that it was simple but required effort. Each person must agree to look for a new alternative. You must be willing to back down to make room for the creative conception of a third way. Declare that you will always restate the other party's position to his or her satisfaction before stating your own point of view. You do not have to accept it, just restate it until the other party is satisfied that you understand it.
Comprehension seeds a sense of empathy. Articulating their view defuses confrontation. Follow these ground rules for synergy to occur. Be willing to search for a solution that is better than what either party has in mind. Reflect viewpoints - restate the other's viewpoint to his or her satisfaction before you state your own.Synergy is useful when deciding where to focus efforts such as on where to spend a budget, how to resolve a conflict, how to match people to tasks, and how to improve performance, leverage differences and negotiate agreements. There are two categories of managers, the synergistic manager and the uncreative manager. Synergistic managers recognise the importance and benefits of working with others using creative co-operation. They look for differences and build on strengths to achieve new and better alternatives.They will say: "I constantly look for something better - it's not your way or my way, it's a higher way, a better way. I value differences and it is good that you see it differently. I am willing to look for something better than my ideas or your ideas." The uncreative manager will say: "I tolerate and accept differences and I'm willing to compromise."The key action of a synergistic manager is to look for differences instead of just accepting them. Uncreative managers will surround themselves with others who think similarly. Synergistic managers realise that the strength of their relationships with others lies as much in their differences as in their similarities. They respect individuals with different views and actively find them.The effective executive will see differences as strengths and use them in meetings and projects to bring about synergy - the natural fruit of the creative problem solving, and decision making process.As senior managers, I invite you to rank yourself on a scale of one to 10. How synergistic do you think you are? Winnie Chiu is senior consultant for the Hong Kong office of Right Management, a global human resources consultancy. This is the seventh in our eight week series about how The Seven Habits of Highly Effective People can apply to senior executives. Next week: Sharpen the saw
Transitions: CFO to CEOAs an executive recruiter, I am in contact with ambitious financial directors keen to make the transition to chief executive. John, the CFO for a mid-sized Hong Kong financial services firm, was one such case. In his late-30s and conscious of the ticking career clock, he had recently unsuccessfully put himself forward for a chief executive position. After suffering this setback, he wanted to know what it would take for him to make a successful move - and when would be the best time to do it.
On paper, John looked good - he had a strong record of career achievement, was already on his second stint as a chief financial officer, and was able to demonstrate the concrete value he had brought to his current and previous companies.
Far from being seen as a negative, his financial experience is likely to be seen in a positive light. Familiarity with hard, quantifiable data provides financial directors with a distinct advantage, and many are increasingly involved with strategic planning, mergers and acquisitions, or capital-raising activities. Stronger corporate governance requirements have forced chief financial officers to get closer to the business, to effectively become deputy CEOs.
Despite this, my advice to John was, "First of all - think long and hard. Is this what you really want?"
Before aiming for the top, it is important to critically examine your career objectives, working style and strengths. Be honest with yourself. After fully considering what comes with the job - constant pressure, never-ending responsibilities and extensive accountabilities - many financial directors find they don't want to be CEOs after all.
Leading a company is quite different from overseeing the financials. There are no definite guidelines or rules - nothing is as clear-cut as it can be on the financial side. Vision, communication skills, team-building ability - and of course leadership - are all required skills, yet they are very difficult to define and acquire. And don't underestimate the pressure to implement strategy and deliver returns to shareholders - this can be crushing to those without the temperament to withstand it. I raised John's situation with the chairman of a Hong Kong financial services firm. He believed someone with a financial background would be an asset as chief executive, saying, "I would certainly employ a chief financial officer who was capable enough - and ambitious enough - to later head the firm. But to my mind, there are two types of great chief financial officers - those who are purely focused on the numbers, and those who really understand the whole business and what makes everyone and everything tick within it. Only the latter can make the transition."Many financial directors have the technical skills to lead companies but struggle to master the commercial, communication and people aspects of the job. Less than 20 per cent will successfully make the transition, and those who do tend to have certain characteristics in common. They are strong, goal-oriented leaders who have a clear vision of the future, an external, marketplace-driven focus, and the willingness to take chances.John had these characteristics. And - after much thought - he was still determined to pursue the top job. However, he lacked key line-management experience. Less than half the chief financial officers who become chief executives are promoted directly from that position. Often the most successful way to transition is to make a sideways move.We knew of another financial firm that was looking for a chief operating officer. John's experience made him an excellent candidate and he successfully secured the role. While it was not the direct step up that he initially wanted, he was happy to gain the new skills and management experience that will position him for his next move. Before deciding to "break out of the CFO box", make sure you've done your research, and have the skills and experience to match. And remember that making a lateral move may be the fastest way upwards.

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