| An acquaintance of mine coined the title | | | | commitment. This commitment will not flourish |
| phrase of this article in a discussion we | | | | in workplace environments where the leaders |
| were having regarding creating success in | | | | worry about power and politics.During his |
| wholesale distribution. At the time, I | | | | DREF interview, Chuck Steiner, former CEO of |
| perceived that to be "consultantese," another | | | | Branch Electric, said,"Refinements to |
| cliché to be used in the speaking arena. | | | | industry practice, refinements to operation, |
| However, since that original perception, I | | | | excellence in what you do [and] continuous |
| have come to realize a deeper meaning in | | | | improvement aren't words. They're a way of |
| those words."It's time to stop thinking about | | | | life. When you understand that they're a way |
| power and politics | | | | of life, then the change that you have in the |
| | | | way you perform is beyond comprehension |
| and start applying principle and | | | | because you just wind up operating at a |
| process."Principle and process form the | | | | different level, and if you can find a way to |
| baseline of effective leadership. Power and | | | | capture that in the culture of your business, |
| politics are old school and have | | | | in the culture that you emanate to your |
| traditionally led to ultimate failure. We | | | | people, then as this culture structure |
| have experienced many unfortunate examples of | | | | changes, you have an opportunity for a |
| this kind of failure recently, including | | | | superior level of excellence, and that's what |
| Enron, Tyco and WorldCom. Behind each of | | | | in the end it's all about. Excellence breeds |
| these failures stands a towering figure: a | | | | a high level of profitability."Companies that |
| CEO or business leader who may have embraced | | | | put power and politics ahead of principles |
| power and politics over principle and | | | | and process will create a culture within the |
| process. Most of the CEOs of these failed | | | | workplace that breeds distrust and paranoia. |
| companies were considered great leaders at | | | | Most employees devote a major portion of |
| one time. That is scary. Remarkably, many of | | | | their lives to the job. Many "live to work" |
| their qualities fit the definition of | | | | instead of "work to live." They need more |
| effective leadership. Leaders that cause this | | | | from their job than just a paycheck. They |
| kind of destruction can't reach the position | | | | deserve an environment that encourages |
| of power they attain without demonstrating | | | | initiative and empowers them to use that |
| admirable qualities. Generally, they are very | | | | initiative. They need leadership that |
| intelligent individuals. Perhaps, however, | | | | understands listening to their employees is a |
| there came a time when their focus shifted | | | | prerequisite for success. Executive |
| more to power and politics than principle and | | | | management has responsibility for the |
| process.Power and politics in the business | | | | direction and results of the organization. |
| world can lead to devastation if principle | | | | The key role of the executive team is to |
| and process are ignored. Principle is built | | | | establish and execute company strategy. The |
| on integrity. Process keeps execution within | | | | single most important determinant of |
| the realms of ethical business practices.When | | | | long-term success is effective leadership. |
| a CEO begins to believe their primary purpose | | | | Effective leaders understand communication is |
| in life is to instill a belief in their | | | | critical to the success model. That concept |
| vision, doing everything possible to get | | | | is based on principle. Every employee must |
| everyone to buy into it, with a paranoid | | | | understand and support the company strategy. |
| belief that those who don't rally to the | | | | Managing for growth and success requires that |
| cause are undermining that vision, they have | | | | leadership focus with laser light clarity on |
| lost sight of principle and process. This | | | | the determined activities that are going to |
| practice is not only unnecessary, it is | | | | produce the desired results. Focus from the |
| destructive. A true leader welcomes a | | | | leadership ensures that the process necessary |
| challenge to their vison. It creates a | | | | to achieve the predefined activities required |
| balance, a reason to reflect upon personal | | | | for success are in place and |
| values, intuition, and to make sure the | | | | operational.Leadership in ActionSuccessful |
| vision has foundation. Effective leaders | | | | leaders believe in principle and process. |
| don't need 100% endorsement of their vision | | | | They take the time to listen, imagine and |
| to carry out its execution, but what they | | | | investigate numerous alternatives. With the |
| cannot afford to give up is the right and | | | | others' involvement they forge creative |
| responsibility of the executive staff to | | | | solutions to difficult problems. They |
| question and challenge that vision.The | | | | challenge their people to stretch, go beyond |
| National Association of Wholesalers (NAW), | | | | their previous boundaries and think outside |
| funded by its Distribution Research and | | | | the box. Successful leaders feed off their |
| Education Foundation (DREF), did a series of | | | | employees and allow their employees to feed |
| interviews with seven of the most successful | | | | off of them. They give credit where credit is |
| CEOs known in wholesale distribution. | | | | due. They give recognition as a means of |
| Listening to those interviews and reviewing | | | | gaining respect. They believe individuals can |
| the transcripts is what cleared my thought | | | | make a difference. Through these methods, |
| process and provided real meaning to the | | | | they learn to create new insights and |
| phrase:"It's time to stop thinking about | | | | possibilities. They insist upon best practice |
| power and politics and start applying | | | | and a process that defines responsibilities, |
| principle and process."Leadership Models & | | | | provides clarity and embraces |
| The Ego FactorEffective leaders are driven by | | | | accountability.Successful leadership means |
| a model. A model is a tool used to predict | | | | creating a sense of urgency, getting mutual |
| future outcomes of current decisions. | | | | commitment to action. Action steps are always |
| Effective leaders build their models on the | | | | clearly defined, precise and backed up by a |
| sum of their experiences, knowledge and | | | | commitment to the process necessary for |
| deeds, as well as their mistakes.An emphasis | | | | execution. Often, due to the personification |
| on power and politics is more likely to occur | | | | of the leader's own personality and charisma, |
| if personal objectives are ego-driven rather | | | | employees are eager to leap into action - |
| than profit-driven, based on principles, | | | | without forethought. A successful leader |
| integrity and ethics. Being ego-driven often | | | | recognizes this possibility and takes the |
| leads to putting personal needs ahead of | | | | necessary steps to avoid this pitfall by |
| business needs.During his DREF interview, | | | | teaching precision in planning. They are |
| Steve Kaufman, former CEO of Arrow | | | | clear and explicit. They communicate with |
| Electronics, stated that he did not invent | | | | encouraging clarity that commands ownership |
| the phrase "Servant Leadership," but he leans | | | | by everyone involved in the commitments |
| heavily toward that methodology."The | | | | made.Randy Larrimore, former CEO of United |
| academics tell us a leader's role is to serve | | | | Stationers, stated in his DREF interview,"I |
| those people that report to him. He or she | | | | think you need to realize that the Leader, |
| is not a dictator but their ultimate role is | | | | the President or CEO puts their pants on just |
| to serve, to allow those people to achieve | | | | as you do in the morning, and they make |
| their goals. It's a style that starts by | | | | mistakes. The trick is to make fewer mistakes |
| asking: What do you want to accomplish, | | | | than the next guy. I think it's easier |
| rather than telling them what you want to | | | | sometimes to apply knowledge that you've |
| accomplish. I would say that the servant | | | | gained [from] someplace else to an industry |
| leadership model is the one that I | | | | that hasn't done some of those things. You |
| like."Larry Spears, CEO for Greenleaf Center | | | | can almost become a bit more of a hero by |
| for Servant Leadership said, "We are | | | | transferring lessons learned than trying to |
| beginning to see that traditional autocratic | | | | invent new lessons."The successful leader is |
| and hierarchical modes of leadership are | | | | constantly building advantages into his or |
| slowly yielding to a newer model, one that | | | | her organization. The belief is that you |
| attempts to simultaneously enhance the | | | | don't always have to be better than your |
| personal growth of workers and improve the | | | | competition, but you must be different. This |
| quality and caring of our many institutions | | | | concept demands creativity and innovations. |
| through a combination of teamwork and | | | | However, this creativity and innovation must |
| community, personal involvement in decision | | | | be built into the plans and the process that |
| making, and ethical and caring | | | | support it. It must be distinctive, yet it |
| behavior."Putting power and politics ahead of | | | | must be manageable and predictable. This |
| principle and process creates failure. This | | | | could involve anything from new technologies |
| ego-driven situation can lead to a death | | | | to market segmentation to development of new |
| spiral which often leads to panic response | | | | channels. It is all about improvement and |
| management. A restructuring plan is often | | | | finding newer and better ways of doing |
| adopted. However, in an ego-driven situation, | | | | things. It involves cross-activity |
| this restructuring is more apt to occur from | | | | integration of process and people. Activities |
| the bottom up versus the top-down.In other | | | | must be linked across the entire value chain. |
| words, revenue producing functions or revenue | | | | Understanding this concept is critical to |
| producing people may be prematurely cut. | | | | leadership success. Yes, as I have learned to |
| These people or functions may, at a minimum, | | | | believe, it is essential that leadership |
| be covering their variable expense and | | | | understands:"It's not about power and |
| contributing toward fixed expense to some | | | | politics, it's about principle and |
| degree. Eliminating a revenue producing | | | | process."Dr. Eric "Rick" Johnson () is the |
| function creates a redistribution of | | | | founder of CEO Strategist LLC. an experienced |
| allocated fixed cost which may now jeopardize | | | | based firm specializing in Distribution. CEO |
| the profitability of some other segment or | | | | Strategist LLC. works in an advisory capacity |
| division. This may create pressure to close | | | | with distributor executives in board |
| more branches or business segments, or cut | | | | representation, executive coaching, team |
| deeper into other revenue producing | | | | coaching and education and training to make |
| functions, thus creating "The Death | | | | the changes necessary to create or maintain |
| Spiral."Focusing on principle and process | | | | competitive advantage. You can contact them |
| indicates the right approach is to view | | | | by calling 352-750-0868, or visit for more |
| restructuring from the top-down, including | | | | information.Rick received an MBA from Keller |
| taking a serious look at corporate and/or | | | | Graduate School in Chicago, Illinois and a |
| family overhead.Success CultureWholesale | | | | Bachelor's degree in Operations Management |
| distribution organizations increasingly will | | | | from Capital University, Columbus Ohio. Rick |
| be characterized by a large and incredibly | | | | recently completed his dissertation on |
| complex set of independent relationships | | | | Strategic Leadership and received his Ph.D. |
| between highly diverse groups of people. To | | | | He's also a published book author with four |
| be successful, you must determine how to get | | | | titles to his credit: "The Toolkit for |
| active involvement, innovation and creativity | | | | Improved Business Performance in Wholesale |
| out of your employees. Success depends on | | | | Distribution," the NWFA & NAFCD "Roadmap", |
| more than just "best practice" success | | | | Lone Wolf-Lead Wolf-The Evolution of Sales" |
| drivers. Success demands a superior level of | | | | and a fiction novel about teenagers called |
| leadership - a level that requires deep | | | | "Shattered Innocence. |