Patti Cotton

Executive Coach & Career Strategist

business owner

Beware of Hubris Syndrome

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Beware of Hubris Syndrome
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You have a successful track record. Your company is doing well. But over a period of time, you have lost touch with your employees.

In fact, when you aren’t in the room, they may describe you as “calloused” or uncaring.

But they don’t know what it takes to run a business. You can’t always stop to be warm and fuzzy with everyone.

Is that true?

Not necessarily.

You may be suffering from the beginnings of hubris syndrome.

Neuroscientist Sukhvinder Obhi has found that power damages our mirror-neurological activity — the neurological function that indicates the ability to understand and associate with others.

“David Owen, a British physician and parliamentarian, has dubbed this phenomenon hubris syndrome. He defines this as a ‘disorder of the possession of power, particularly power which has been associated with overwhelming success, held for a period of years.’” (Hougaard, et al).

Are some people just born with an inability to handle power?

Or is a hardened profile required to rise to – and stay at the top?

Hubris syndrome is actually an acquired personality change in people who assume positions of power. There are a few key symptoms that indicate one is suffering from this, and one particularly dark side to it is an inability to have compassion for other people. This can lead to devastating effects, and we’ve all witnessed this. Martin Winterkorn and the Volkswagen scandal. Martin Shkreli of Turing Pharmaceuticals. Hisao Tanaka of Toshiba.

These business leaders are among those who, over time, developed a greed and lust for more power. This caused them to lose their ability to feel compassion for others.

And the results were disastrous.

You are probably saying that you could never turn into a Winterkorn or Shkreli. And hopefully, you are right. However, if you have been in a position of power for some time, you will want to check on your ability to feel and exercise compassion.

Compassion moves beyond empathy, which is the ability to read and feel the emotions of others.

Compassion is a proactive commitment to contribute to the happiness and well-being of others. It’s an intentional attitude that, through regular practice, can be strengthened and become the hallmark of your leadership.

Here are some first steps to begin cultivating your compassion:

1. Seek to support others in your connections.

Each time you interact with others, begin by asking yourself, “How can I be of benefit to this person?” This turns your focus outward and strengthens your intentional commitment to their happiness.

2. Identify a family member who could use some support, or someone in your work who is a difficult personality.

Meditate on that person and send caring thoughts about their well-being. A common intention that people hold for this particular exercise is to repeat the statement, “May you be free from suffering. May you have joy and ease.”

3. Exercise compassion for yourself.

Where are you lacking compassion for yourself? Identify where you might be holding yourself to an impossible standard, or figuratively beating yourself up for past mistakes. Forgive yourself and move forward. Unless we can forgive our own errors, we cannot really do so for others.

You will notice as you begin an intentional compassion practice that your sense of purpose and contribution begin to grow alongside. And, funny thing, others respond well to practiced compassion. Your employees will begin to feel recognized and valued. Trust grows. And in turn, engagement, morale, and all the things that you need in order to sustain your business.

This creates a win-win situation.

(Reference: Hougaard, Rasmus; Jacqueline Carter and Louise Chester. Power Can Corrupt Leaders. Compassion Can Save Them. Harvard Business Review, 2/15/2018.)

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How a Silent Marauder Might Be Threatening Your Business Future

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How a Silent Marauder Might Be Threatening Your Business Future
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Sandra was a first-generation business owner. She worked hard for more than 25 years to build a solid company that served customers well.

This was a business that would provide for her family financially, both now and in future.

Or so she thought.

But a business marauder suddenly appeared in the form of new technology that threatened to put Sandra’s company out of business.

Her hard work and her future could be wiped out in the next 36 months unless she took some quick and powerful action.

Sandra was frozen. Her ways of leading and doing were solid – but they were limited, confined to running the business the way she knew how, to what had worked up to this point.

Unless Sandra acquired agility in her leadership, she would not be able to move forward. She could become part of the 90% of executives who currently find themselves and their business obsolete.

If you are an executive or business owner, I can guarantee that technology and other marketplace changes will affect how you lead. You may have a shelf life of just up to approximately 36 months if you don’t have the agility required to work with change. This is about how long it takes before we experience the spiral that results from not shifting with change.

And this happens a lot with excellent leadership.

You are successful for a period of many years, and then suddenly, changes emerge that demand an agility from you and a way of operating that are foreign to your context. These changes and challenges leave you bewildered. You become frozen and overwhelmed, or you dig in your heels and insist on leading in the same way you always have.

You can’t tough this one out. Change is not going to go away.

Sandra had led well. Her company had been a solid contender in the marketplace.

But she was in trouble now. She called me because she couldn’t seem to move forward as she faced this new development.

Having shown herself smart, capable, and competent during her entire tenure, she agreed that the competition was real, but she couldn’t seem to muster the higher gear required to begin wrestling with new structures and processes. She hoped her company product would still be greatly loved by her loyal clients, and wondered if the business simply accelerated some tried-and-true strategies with more sales staff, if she could help the company remain viable.

She couldn’t. The changes Sandra would need to make in order to remain viable demanded a new approach – and an agility to make it happen.

When we met, Sandra pulled out a drawer and showed me several unused strategic plans. She admitted that she had never been able to take the time to figure out how to practically apply any of them. It seemed like there was never enough time, and fulfilling customer orders took precedent over all else. She said that this had served well enough in the past, but she now knew that she needed to take some sort of action fast, in order to save the business from crumbling.

Sandra exhibited what I see in a lot of seasoned leaders.

When one has led for many years, she can become accustomed to focusing on what is working well, and forget to check the horizon for what is coming ahead.

Changing conditions in the marketplace, in the economy, in politics, and in disruptive technology (and more!) can dictate that a leader pay attention. Many, however, just dig their heels in to work harder at doing the same thing, rather than to evaluate strategies and approaches that will best support these changes. This can quickly result in trouble spotted too late.

Sandra was certainly in trouble, admitting that she might need to do differently, but that she didn’t know where to start. It was clear that she not only needed a quick medium-term plan to respond to the looming competition, but that she would also need to develop more behavioral agility in order to flex and adapt to needed transitions and change.

Sandra asked if I wanted to see the strategic plans stored in her office. The latest one was dated two years prior.

“That’s too old,” I said. “These days, you want to revisit and update your strategic plan every year. Changes are coming too rapidly for an older plan to support the future.”

We got busy and went through a quick strategic planning process to accommodate the next 36 months. This plan would need to be clear, concise, and it would need to be actionable. I didn’t want this one to sit in a drawer.

Once we had the 36-month plan in place, Sandra and I worked on a medium-term action plan designed to meet the impending competition.

We were on a tight timeline to stay out in front. With coaching, Sandra was able to develop the necessary agility to execute the plan well.

Those in charge find they operate best if they have someone to help them with this. Tackling a new plan requires not only focus and buy-in from all involved, it also often demands that we operate in new and novel ways to support the future.

This is agility – the one thing that will keep us current in our leadership.

Leadership agility is “the ability to take effective action in complex, rapidly changing conditions. Only 10% have mastered the level of agility needed for consistent effectiveness in our turbulent era of global competition.” (Joiner and Josephs, Leadership Agility: Five Levels of Mastery for Anticipating and Initiating Change).

It follows that agility is necessary in company teams and in the entire enterprise, as well.

Acquiring agility demands not only new or improved direction and actions, it also asks that we develop the necessary mental and emotional capacity to implement these actions.

This is why 90% of those in leadership fail. As rapid change and complexity continues to emerge, a lot of very fine business owners and other executives fold. It isn’t from a lack of desire – it’s from a lack of understanding how to meet change effectively and to make the personal leadership shifts necessary to do so.

Back to Sandra: I’m happy to report that after we rolled up our sleeves and quickly got going, she was feeling confident about her direction, her company’s future, and her ability to meet it successfully. We hit some bumps as she expanded her agility, but we laughed a lot and she grew exponentially, setting up the company to meet the future successfully.

Sandra noted that not only was the process rewarding and energizing, she also enjoyed less stress – a great bonus. She decided to invite me to help coach her team and other key players in agility, at that point, as part of her succession planning.

How strong is your leadership agility? Are you able to survey the landscape, identify potential threats and opportunities, come up with a strong plan of action, and effectuate this well?

How to Create Your Leadership Manifesto

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 How to Create Your Leadership Manifesto

Part II of Making Your Leadership Work

Does your leadership count, or are you just the next “suit in a seat” in a succession of many?

If you want to make a significant impact on the world around you, you need to take a stand.

It’s time to revisit your leadership manifesto.

Don’t have one? It’s time to craft yours.

A manifesto is a declaration of principles that include your:

  • Intentions – what actions you intend to take
  • Key beliefs – your stance on things
  • Vision – the world as you wish to see it

There are a few reasons formulating your leadership manifesto is important.

It’s a formidable exercise in authenticity.

Authoring your manifesto forces you to identify your most important beliefs – a “stop and think” exercise for most of us. Then, it requires that you create a powerful vision in response to these beliefs, and to outline your intentions about how to create the change. If you think about it, this is a formidable exercise in stating who you are and what is important to you above all.

It brings focus to your work.

Your manifesto brings tremendous focus, helping you to reflect on what aligns – and what does not – in your work and life.

It helps you to stay the course in turbulent times.

Your manifesto serves as a GPS, supporting your ability to move toward your vision, even in the midst of significant challenges.

Ready to craft your leadership manifesto? Sit in a quiet place and reflect on the questions below. Many executives with whom I work go through these questions twice. During the first round, they answer the questions in the context of life; during the second round, they relate it to the workplace.

  1. I believe in ____
  2. I want to live in a world where ____
  3. Here is what I know for sure: _____
  4. The one problem I want to solve during my life _____
  5. The changes the world will see as a result ______
  6. What is at stake here is ______
  7. I will show the world ____

As you review your answers, what becomes clear for you? And what, in your life and work, needs to change?

A Multi-Million Dollar Company with No One Leading

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A Multi-Million Dollar Company with No One Leading

Mediation and Conflict Resolution

All names and other identifying information have been changed to protect confidentiality.

I was called to work with one of the largest construction companies in the Midwest, which was a recent merger of three very successful smaller construction companies.

“I want you to find out what’s wrong with these employees of mine,” said the president, looking at me across the desk. “These people aren’t putting in the sweat equity they should. In fact, I think a few of them are lazy – some need to be fired. Most are complaining that they haven’t gotten a raise in a long time, but before I go handing out candy, they need to show their stuff and get these back orders out.”

“Back orders?” I asked.

“Yes,” he said. “We have $40 Million in back orders we cannot fill, and the bank is telling me I have 90 days to get it fixed, or they are calling in the loan. We may fold before spring if these lazy employees don’t get cracking.”

The president (we will call him Max) gave me a bit of background about the company. He was formerly the owner of a smaller construction business. Two years prior, he had purchased another construction company, and then invited the president of a third company, Jim, to join him so that together, they formed the largest company in the industry in the Midwest.

As Max gave me more details about this very critical situation, I proposed that we meet with the other owner, Jim, as well as their new COO, Tom, to design a quick, impactful plan to get the back orders out and avoid the bank’s loan recall.

“Oh, no, I don’t want Tom in this. I’m still teaching Tom the ropes of the business, and I want to see how well he does before I give him more responsibility. And Jim and I aren’t, uh, talking to each other right now. He isn’t interested in this side of the business, anyway. He just stays out in his warehouse office and works on his invention.”

“His invention?”

“Listen,” Max shot back, “The co-owner doesn’t care about anything but sitting in his office down the street all day playing with some new product that is supposed to revolutionize the industry. I hate to admit it to you, but he hasn’t seen the financials for more than a year. I’ve been busy putting out other fires. It would be a little embarrassing for me to let him in on what’s happening right now.”

“You mean your co-owner doesn’t know the bank is threatening to recall the loan? That you have $40 Million in back orders you can’t fill?” I stammered.

Max just grinned sheepishly and stared at me.

At this point, dear Reader, you may be thinking this story is fabricated. After all, a real company cannot operate like this, can it? Yes, it can. I was there.

But it was due to fold – with problems obviously starting and ending at the very top.

“Max,” I said, “Before we do anything else, we have to let the co-owner and the COO in on the problem – you are going to need help and buy-in with the solution.”

“It’s all over, then,” he buried his face in his hands. “You don’t understand these guys – they don’t know how to run a business like I do. And they are difficult to deal with.”

I sat in stunned silence. Of course, you know that what was running through my mind was that Max didn’t know how to run a business either – and he was difficult to deal with, too.

How did the company come to this point? It starts and ends with leadership, doesn’t it? The health or lack of health in leadership is felt at every level of any enterprise. And there are several key factors that fell short in this particular case.

But I’ll talk about three important ones here:

1. Lack of clear roles and responsibilities.

Max and Jim had decided that Max would operate as CEO, but they didn’t know what this meant. And they never defined any responsibilities for either of them. Max fell into running the company because he liked being the boss. Jim busied himself with doing what he loved best – tinkering to invent a product that would put the company on the map. Max brought Tom in to fix the “employee problem,” but hadn’t allowed him to get near any employees, yet, except for a small satellite office at the other end of the state. Max said he “wanted to test Tom’s abilities, first.” This had been going on for months when I got there.

2. Lack of accountability.

As you can see from #1 above, none of the executive team was holding themselves or each other accountable. Max loved to sell and make deals, so this is what he was doing with investors – and yet, he wasn’t managing the directors and managers so that the company could run effectively.

Tom, the new COO, had tried to insert himself several times by proposing to oversee the management team, but Max shut him down each time, saying “You need to do what I’ve given you to do first so I can cut you loose.”

Max had, in fact, made the fatal mistake of assigning Tom to a small area of the company that had little to do with production and the problem at hand. And Max wasn’t investigating the real problem, either.

And then, there was Jim. Jim loved to tinker. Alone in his office all day. I still don’t know how he survived his original business before Max brought it on to combine it with his own.

3. Lack of communication.

How in the world did three men who held such high responsibilities find themselves in a place where no one knew what the others were doing – and the company was going down?

A multi-million dollar company with no one leading.

Why didn’t Max communicate? Max claimed that he couldn’t talk to Jim because the latter had a temper, so Max avoided keeping Jim up to date with financials, challenges, and other vital pieces of information. And Max claimed that Tom was too new to know what he was doing and so withheld information from him that could have helped Tom to help the company.

Why didn’t Jim communicate? He told me he thought Max was an arrogant idiot who was so hard-headed that it was impossible to talk with him. Jim said that Tom was a nice fellow, but he wasn’t sure he trusted him because Tom was always in Max’s office.

And Tom? Tom didn’t communicate with Max because he had asked too many questions too many times and been shut down to the point where he was silently contemplating quitting and moving his family back East. And he didn’t communicate with Jim, because Jim always had his door closed down at that warehouse office.

At every turn, there were unspoken conversations and unresolved conflict because people weren’t asking the hard questions, and providing tough information to each other.

Avoiding these critical conversations had resulted in one giant fiasco.

You can guess that the initial meeting with the four of us was not a gentle one. Tempers and voices flared, and it took some mediating to reach an agreement as to how to talk with each other and work through the problem so that we could get to the issues at hand. We finally reached consensus on what strategies to take, who would be responsible for what, and how to hold self and each other accountable through this critical process.

I frankly breathed a sigh of relief. Mediating and coaching conflict in such a situation are not easy, but we came out linking arms.

Sometime later, after leadership diverted the crisis, I would fire Max (yes, I have fired a couple of clients). I would have loved to stay on to help shift culture, and help the company excel. But Max was not willing to be transparent with Jim and Tom about some critical issues, and he wasn’t willing to work on his own leadership. He just kept blaming everyone and everything else. Shortly after I fired him, his board fired him as well.

I’m glad to say that Tom has taken over running the company, and has really turned things around. And Jim? He is still inventing things in his warehouse office that are bound to revolutionize the industry.

What poor style of leadership have you witnessed or heard about in the past?

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Patti Cotton is a CEO and former foreign diplomat. A sixth generation business owner, Patti not only coaches leaders – she has extensive experience in actually being one. Her experience, record of unprecedented success, and extensive training and certifications make her uniquely qualified to bring value to you and your team in the areas of leading self, leading others, and leading the enterprise.

Patti’s areas of focus include leadership and talent development, with specialization in leadership behavior and communication, conflict management, executive presence, succession planning, and strategic personal, leadership, and organizational growth.

With over 25 years of proven leadership experience, Patti works with individuals, teams, and organizations across diverse industries. As an executive coach, trainer, and Fortune 500 speaker, she will inspire, influence, and impact your organizational leaders to reach new heights of success in their personal and professional growth, and to improve performance across your organization.

For more information on how Patti Cotton can help you and your organization, click here.

How to Move Beyond Growing and Surviving

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How to Move Beyond Growing and Surviving

Your Succession Plan

Are you a business leader struggling to grow and survive? It’s time to get a better game on.

Whether you are a business owner, executive, or other professional, you need a succession plan, now.

What is a succession plan?

Most think it’s simply grooming new leaders who can eventually take over a business or corporation. But it’s much more than that. Succession planning should include getting your “house” in order, making sure that systems, processes, and team are identified and developed to effectively meet the future.

Because of this, succession planning is not something you do when you are getting ready to retire.

In fact, succession planning is something that should be an ongoing process now, if you are a business leader who identifies with any of the following:

  • You want to move the business and your future from surviving to thriving
  • You are proud of your leadership accomplishments and you see this as a legacy that others should enjoy
  • You have a vested interest in seeing that your efforts pay off exponentially, not only now, but in the future (financial gains, heirs, etc.)

Most corporate and business leaders spend their time caught up in the daily worries of running the business or enterprise now. They are in a survival mode, or busy trying to scale the company’s efforts to generate more revenue.

When this happens, it’s tough to get ahead – much less lay the firm foundation for something that will pay off now and in future.

These business leaders may see succession planning as an HR function and not a leadership imperative – to their peril. Planning for the future and laying out the strategies to reach it effectively require vision and global thinking. It requires that you set a clear direction with system-wide goals to carry the business into the future.

This means that if you are in charge of an enterprise or your own business, you need to lead the charge.

What happens if you don’t take action, now? What are potential consequences, if you don’t see succession planning as an ongoing process to ensure a healthy and vibrant business now and in future?

Here are a few scenarios where a lack of succession planning has resulted in rapid business decline and demise:

  • A leader exits without warning, due to illness or another unexpected event.
  • A company replaces the exiting executive with someone who is not yet equipped to take over. This happens frequently in family-owned businesses and in cases where the company has hired from the outside without ensuring that the new leader is culturally compatible.
  • The business neglects high-potential talent inside its doors and the talent goes elsewhere.

What does your succession plan look like? Do you have a system in place to identify and develop high-potential talent, business processes, and systems that will effectively meet the future?

Patti Cotton helps executives optimize their effectiveness in leading self, others, and the enterprise. Her areas of focus include confidence, leadership style, executive presence, effective communication, succession planning, and masterful execution. With over 25 years of leadership experience, both stateside and abroad, Patti works with individuals, teams, and organizations across industries, providing executive coaching, leadership development, succession planning, change, and conflict management. She is also a Fortune 500 speaker. For more information on how Patti Cotton can help you and your organization, click here.