It's really interesting watching leadership behaviour when the results aren't coming in. You often discover the real culture and style of the leadership team!
When results are being met, everyone talks about having clarity of purpose, a well thought through value proposition, and then empowering staff to get on with running the business. That is, of course, until the results start to fall and targets are not being met. We all know what happens then.
Senior teams believe they have the answers; after all, they are senior leaders. They start meddling and start micro-managing. I find it amazing that they belief that suddenly they have all the answers to everything and just need to tell people what to do.
So, what's the impact of poor leadership? Here's what happens when sales start falling and/or margins are being squeezed!
- The Senior Team panic (they may not get their bonus!)
- Marketing get a good telling off.... so start bombarding customers with thousands of offers that makes the customers even more confused and less likely to interact.
- Sales/Operators get a good telling off... and start running around like headless chickens changing everything... often a few times a day.
- The level of reporting goes up, so most people spend most of their time writing reports and dragging historical data off the system, and not serving the customer interactions.
- The level of valueless meetings goes up, which prevents people doing what they are paid to do.
- Innovation declines dramatically.
- All development, coaching and training stops, or gets put back because "we are too busy."
- Blame levels increase as a mechanism to off load any need to change.
- The good people leave, the people who should leave, stay.
- Silo mentality increases as Subject Matter Experts fight their corner.
- The strategy gets very confusing internally and externally, the customers get confused about propositions, so sales start to decline further...
- More meetings are held, more reports are needed and more telling off happens!
- Engagement declines, people start to feel the pressure and go into fight or flight mode.
- People start doing stupid things because their 'thinking brain' is switched off.
- The decline accelerates...
- Shareholders get anxious and start meddling...
- Rightsizing begins...
- And so it carries on!
The impact of poor leadership is dramatic. Why would you do that and let that happen?
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