Patti Cotton

Executive Coach & Career Strategist

compassion

Cracking the Accountability Code

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Cracking the Accountability Code
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Most executives in charge will find that accountability eludes them. In an effort to get things done, a senior executive may create a culture that is severe and unforgiving, with employees being terminated in rapid fashion. The executive hopes that different people will perform better than the ones dismissed – in most cases, faulty thinking.

Another senior executive will develop a soft culture, thinking that accountability is harsh – again, faulty thinking. This results in people at top levels chasing, babysitting, or actually doing the work of others in order to ensure that things get done.

Those who remain staunch in wanting to crack the accountability code will purchase expensive people management systems that ultimately may not work because of other factors. This kind of system focuses on just one of the three building blocks needed to reach healthy accountability.

The Three Building Blocks of Healthy Accountability

  1. Leadership Development.
  2. Performance Management
  3. Risk Governance

When carefully orchestrated, integrating these three building blocks will make a significant difference in a company’s sustainability, profit, and growth trajectory. On a more personal level, it supports the executive’s cognitive and emotional capacity, which means the executive will enjoy less stress, have a greater ability to think strategically, focus on what matters, make better decisions, and model and develop her people.

Let’s examine each building block and see how it plays out in business scenarios.

(Note: No matter what the size of your company, these three building blocks are still valid and necessary!)

  1. Leadership Development

Executives will need to shift their leadership style from traditional command-and-control to more empowering and coaching roles.

This involves:

  • Fostering empathy, compassion, and vulnerability.
  • Building psychological safety to encourage innovation and problem-solving.
  • Acting as a coach to facilitate constant learning and skill development among employees.

Leadership Development in Action: Elysian Enterprises

At Elysian Enterprises, CEO Sarah Jones noticed that her team’s creativity and problem-solving capabilities were stagnating under the traditional command-and-control leadership model she had inherited.

To begin addressing this, she embarked on making the shift to a more empowering leadership approach.

  • Empathy and Compassion: Sarah began by instituting regular one-on-one meetings with her team members, aimed at understanding their personal and professional challenges. This shift was inspired by a practice at Google, where managers are trained to start meetings with personal check-ins, enhancing team cohesion and emotional safety.
  • Psychological Safety: To cultivate an environment where employees felt safe to express ideas and concerns, Sarah introduced a ‘no blame’ policy for failed projects, focusing instead on learning from mistakes. This mirrors practices at companies like Pixar, where ‘brain trust’ sessions are held, allowing creative teams to present ideas without fear of criticism or repercussions.
  • Coaching Instead of Controlling: Transitioning from a director to a coach, Sarah facilitated workshops and provided resources for continuous learning. Inspired by the coaching culture at Microsoft under CEO Satya Nadella, she focused on growth mindset training, significantly enhancing her team’s adaptability and innovation.

  1. Performance Management

Effective performance management is crucial for holding people accountable. This includes:

  • Setting clear, challenging yet achievable targets.
  • Ensuring transparency in how these targets align with the company’s overall objectives.
  • Maintaining open communication about performance, where metrics are actively discussed and not just passively reported.
  • Instituting appropriate rewards and consequences to reinforce the importance of meeting targets.

Performance Management in Action: Orion Industries

At Orion Industries, CEO Mark Liu faced issues with underperformance and unclear accountability.

He overhauled the performance management system to align individual goals with corporate strategy.

  • Setting Relevant Targets: Mark introduced a system where targets were co-developed with employees, ensuring they were challenging yet attainable. This was similar to the approach at Intel with OKRs (Objectives and Key Results), where ambitious and transparent goal setting is standard practice.
  • Transparency and Communication: To improve transparency, Mark implemented a dashboard visible to all employees, showing real-time data on performance relative to targets, akin to Salesforce’s use of similar dashboards to drive sales performance.
  • Rewards and Consequences: Recognizing the power of incentives, Mark revamped the reward system to include both financial bonuses and recognition programs, such as ‘Employee of the Month’, which not only rewarded results but also behaviors aligned with the company’s values.

  1. Risk Governance

Robust risk management systems help ensure accountability at all levels of an organization by:

  • Establishing a clear risk governance framework that defines roles and responsibilities across the organization.
  • Implementing comprehensive controls and regular stress tests to manage financial, operational, and strategic risks.
  • Encouraging a culture where risk-aware decision-making is valued and practiced by all employees.

Risk Governance in Action: Proteus Corp

At Proteus Corp, a multinational company with diverse operations, CEO Linda Zhu strengthened the company’s risk management framework after a major data breach.

  • Clear Risk Governance Framework: Linda established a dedicated risk committee that reported directly to the board, ensuring high-level oversight and accountability. This mirrored the approach of banks like JPMorgan Chase, which have robust governance structures in place to oversee various types of risks.
  • Comprehensive Controls and Regular Stress Tests: Proteus Corp implemented regular IT system checks and scenario planning exercises to assess the impact of potential threats, similar to stress testing done by financial institutions as required by regulations like the Dodd-Frank Act.
  • Culture of Risk Awareness: Linda fostered a culture where every employee was trained to recognize and report potential risks, much like the safety culture at airlines like Southwest, where employees at all levels are encouraged to report safety concerns without fear of retribution.

Together, these steps form a comprehensive approach that a chief executive can use to build a culture of accountability and resilience that supports both individual and organizational growth.

In the next article, I’ll share why top executives still won’t delegate – and if you are one or are supervising one, what you can do to shift this.

© Patti Cotton and patticotton.com. All rights reserved. Unauthorized use and/or duplication of this material without express written permission from the author is strictly prohibited. Excerpts and links may be used, provided that attribution is made to Patti Cotton and patticotton.com, with links thereto.

Reset, Reboot, Relaunch – It’s All About 2021

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Reset, Reboot, Relaunch – It’s All About 2021
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As 2020 comes to a close, it is natural for many to feel hopeful about 2021. We now have a promising vaccine in response to the COVID-19 virus which has, for the majority of the year, dictated how we redirect and lead our lives. We have had a tense Presidential election with significant emotions surrounding the process and the event. Other local, national, and world events have added to this stress.

It is only natural that, coming to year-end, people are reflecting on renewal and relaunching their lives. Whether you are a fan or not of New Year’s resolutions, most all of us hope to enjoy a more positive and enjoyable 2021.

Part of a “great reset” involves three steps:

  • Reflection. A reflection on what went well. What were your accomplishments? For what would you like to congratulate yourself? What did not work well? For example, if you found a creative way to strike work-life balance, this is a win to be congratulated. If you made the commitment to exercise five times weekly and did not meet this, flag this as something that did not work well. Write these wins and losses down.
  • Learning. What lessons have you learned after reflecting on the wins and losses that you have listed? Perhaps you decided to turn off your computer at a certain time each day so that you could turn to your family and respect the work-life balance you created. As a result, the learning might be that putting a structure in place such as specified work hours helps support your goals. And in the case of missing the mark with your commitment to exercise, what did you learn there? It may be that you didn’t leave room in your schedule, or that you didn’t identify what kind of exercise might work for you.
  • Commitments. After listing what you have learned, identify what commitments you want to make to yourself going forward. What do you want to bring forward into the new year, and what do you want to leave behind? Again, using our examples, if your learning is that you want to continue structuring time or being more specific for important goals and priorities, how can you apply this to your goals for 2021?

This is a fruitful exercise, and my executive clients find that it helps them stay sharp in their decision-making and execution moving forward.

However, when it comes to leaving behind those things that they have identified as no longer serving them, it becomes challenging to let go.

Why is this?

We human beings are wired for comfort. This means that we also carry a natural inclination to resist change. It is hard to leave the perch! The first step is deciding how you want to leave behind those things that are no longer useful.

Consider the following three choices as you ponder how to streamline and improve your new year.

1. Release

Let it go. As you look back at 2020, what can you let go without remorse or anguish?

Generally, the kinds of things that respond well to release are low-stakes commitments, decisions, or relationships. Often, they come disguised as enjoyable or previously more important, but upon closer inspection, they may now keep you from having the energy and time you might need for greater or more relevant things. What things might you be holding onto out of habit that should be eliminated from your life or work?

2. Reframe

Look at the situation differently. Reframing calls on us to take a different perspective about a situation or person.

An example might be that you have been seeing a particular situation as irritating, or a person as prickly and thus someone to be avoided. Taking a posture to reframe means attempting to “find the gold” or different aspects of that situation which may lend to you feeling better about it.

This is often adopted when the stakes are higher. What have you been putting up with experiencing this year that you feel you need to see a different way? Where in your life or work might you benefit from greater tolerance, compassion, or appreciation of the larger picture?

3. Reconcile

Bring resolution to the problem.

Notice that the previous steps of releasing and reframing require only action on your part. Reconciliation, however, generally requires two or more people (or two or more parts of yourself!) to work.

We generally seek to reconcile when stakes are high, when we want to save the situation or relationship. This will require a negotiation of sorts. At the very least, it will necessitate a revisit of the situation you deem needs reconciling, a conversation, and a shared agreement to resolve the situation.  Sometimes, it requires that we also forgive either the other person or ourselves in order to feel that all is safely put to rest.

As you reflect on this year, and on rebooting life and work to make it even more meaningful and rewarding in the coming new season, what do you need to celebrate? And what do you need to leave behind?

I challenge you to stretch and take the steps to intentionally embrace 2021.

© Patti Cotton and patticotton.com. All rights reserved. Unauthorized use and/or duplication of this material without express written permission from the author is strictly prohibited. Excerpts and links may be used, provided that attribution is made to Patti Cotton and patticotton.com, with links thereto.

What Does Compassionate Leadership Look Like in a Crisis?

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What Does Compassionate Leadership Look Like in a Crisis?
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Making decisions in a crisis may feel like one arm is tied behind your back. Whether you head one direction or another, the anticipated results are full of challenges.

Compassion is key to moving your people forward and promoting organizational health.

What does it look like when you don’t have all the answers?

I help leaders to lead change. Most typically, leaders call me when they are ready to grow, develop new leadership talent for succession, expand into new markets, or transition through a merger or acquisition. Leading and managing at such critical change points can make or break an organization.

COVID-19, however, is one of those change points that takes us by surprise and has turned the business landscape upside down. Such a cataclysmic event requires all the fortitude, competency, and character of a leader to move through such devastation.

At such a time as this, compassion rises up to be most important.

Compassion is perhaps the most misunderstood characteristic of leading from the heart. Many interpret this to be “touchy-feely,” or devoid of backbone. Yet, compassion is perhaps the strongest trait that a leader can embody.

What does compassion look like in a crisis?

Following are three conversations I have had with leaders in the past few weeks. I’ve protected their identity through slight changes in the profiles.

  1. Containment is more important than reinforcing vision.

“Our people seem to be doing pretty well,” said the CEO. “They are adjusting to working from home and finding creative ways to connect with each other during the pandemic.”

“Well, you can thank yourself and the leadership team for that,” I replied. “I just talked with one of your directors who said you all have made a great difference. He said your president assured everyone that the company was on solid ground. You have been sending personal notes of acknowledgment and encouragement. Your entire team has expanded the “open door” policy to holding virtual “kitchen time” hours so that people to drop in and say hello to you.

“What you are doing is containing or ‘holding,’” I said. “Containing people’s emotions and showing them that you are shouldering with them is key to helping them move forward together. On the other hand, some of your peers are not doing this.”

“What’s happening there?” the CEO inquired.

“We are sadly seeing a lot of anxiety and fragmentation,” I answered. “It turns out that painting a brighter future isn’t effective when your people don’t feel held with empathy and compassion in the moment.”

  1. Asking questions before making judgments yields better results.

“I’m frustrated,” said the president of another company. “We could move a lot faster, but I’m finding people are not performing the way they could. Granted, we are in strange circumstances, but I’m not getting results.”

“Let’s get one of your managers on the phone with us,” I suggested. “You and she have always been able to troubleshoot together, and I’m sensing we need to dive deeper here.”

A 20-minute 3-way call proved to be revealing. After probing deeper in a couple of key areas, we discovered that although the company’s systems supported this crisis environment, protocols and processes had not been ironed out. Conflict was on the rise, and as a result, productivity was very low. The president called an emergency executive team meeting to help troubleshoot this. Two weeks later, productivity has risen quickly even though people are still working from home.

I debriefed last week with the president. “So, what lessons are you learning from your COVID experience?” I asked.

“Well, Patti, I’m learning that I should ask more questions before I make judgments,” the president answered. “I can’t believe I didn’t dive into the productivity challenge more deeply before talking with you.”

“We most often revert to ‘fire-fighting mode’ when crisis hits,” I said. “And leaders and their teams sometimes have to put out big fires quickly, so let yourself off the hook here. But asking questions before judging is key. Great learning.”

  1. Making business decisions that support the company will best support its people.

Emotions and tensions are high. Executive team members have been working around the clock to cut costs as they incur big losses. Part of the emergency measures can involve layoffs and furloughs, and this is always devastating. Each life involved has a family and livelihood tied to it. And it is in this kind of scenario where compassion may look like ruthlessness.

“The executive team decided 5 week ago that we need to lay off 50 employees,” the CMO shared. “We have cut the budget by 40% and need to cut more in order for the business to stay afloat. We’ve even taken pay cuts at the executive level. But we are going to have to eliminate positions or keep ourselves in extreme jeopardy.”

“I’m so sorry to hear this,” I responded. “Layoffs are always so very sad. But what’s holding you back? It’s been 5 weeks since you made the decision. We are in tough times right now.”

“Truthfully, some of us just can’t face laying off our people,” the CMO answered. “We keep hoping an alternative will emerge.”

“Sounds tough,” I agreed. “But you know a miracle isn’t going to pop up. Allow me to help you reframe this. If you don’t effectuate the layoffs, it will hurt the company. If the company is in jeopardy because you aren’t making the cuts, then this places the rest of your employee base at risk. Right?”

“I guess so,” the CMO said. “Yes, you are right. If we don’t make these cuts, there will be no jobs for anyone.”

“Exactly,” I said. “Deferring to the business case, as strange as it sounds, is the highest expression of compassion. Making emotional decisions for a few at the expense of many is unwittingly destructive.”

“It helps to process with you,” the CMO said. “It’s still hard.”

“Yes, it’s still really hard,” I answered. “I’m sorry you and the team are having to do this. Just keep in front of you the people you are helping to keep afloat by supporting the solvency of the business. It doesn’t fix that hard situations often call for tough choices.”

Exercising compassion in your leadership when facing crisis isn’t always easily detected to the outsider.

In fact, it can seem quite the opposite. It can give the idea to some observing that you aren’t coming up with quick answers when in fact, you are allaying the fears and concerns that otherwise keep your people paralyzed. It can seem to those not involved that you aren’t taking quick action when you are simply asking critical questions first in order to make best decisions. It may even appear ruthless to some when you are really supporting the fate of many.

It is now that the courage to exercise strong compassion is paramount.

“A true leader has the confidence to stand alone, the courage to make tough decisions, and the compassion to listen to the needs of others. He does not set out to be a leader, but becomes one by the equality of his actions and the integrity of his intent.” — Douglas MacArthur

The Clockwork of Excellent Leadership:   3 Essential Gears

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© Patti Cotton and patticotton.com. All rights reserved. Unauthorized use and/or duplication of this material without express written permission from the author is strictly prohibited. Excerpts and links may be used, provided that attribution is made to Patti Cotton and patticotton.com, with links thereto.

When Servant Leadership Doesn’t Work

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When Servant Leadership Doesn’t Work
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It is said that servant leaders – those who truly lead from the heart – are the most effective.  

Indeed, inspiring and influencing others to rise to their personal and collective best yields much greater results. And frankly, this makes a significant impact in the lives of those who are part of this, as well as those clients who benefit.  

But there are situations when such leadership does not work. 

How can you tell whether to adopt this style or not?

First, servant leadership is a philosophy that genuinely puts people first, takes a keen interest in their development, and embraces shared power rather than a hierarchical style.  

In fact, leading from the heart – another way to describe servant leadership at its finest – requires embracing and modeling 7 traits: 

  1. Trust  
  2. Authenticity 
  3. Empathy 
  4. Compassion 
  5. Humility 
  6. Courage 
  7. Motivation  

The problem is, when leaders don’t incorporate all 7 traits, the power of leading from the heart is compromised. 

The question becomes, “Are you willing to work on adopting all 7 traits?”

Ask yourself the following: 

  • Trust – do my directives and communication reflect integrity? Are these consistent, and if not, am I willing to course-correct this with others so that I build trust with them? 
  • Authenticity – do I come from “center” with ease, not trying to emulate the style or persona of others?  
  • Empathy – can I easily detect the emotions of others, place myself in their shoes, and affirm them? 
  • Compassion – do my decisions and actions reflect that I put people first? 
  • Humility – do I respect others as much as I do myself, and can I recognize their gifts and talents as much as my own? Do I realize that without my team and the employee base that we could not accomplish what we do? 
  • Courage – am I willing to confront the tough stuff, even when the topic and decisions I may need to make are not popular ones? 
  • Motivation – am I motivated first by what is best for the organization, or am I preoccupied with what is best for me? 

If you are willing to sharpen these 7 traits, you will find that your team and culture will reflect greater satisfaction, higher engagement, and the innovative spark to help you and the organization meet the future. 

Which of these traits is most important for you to work on as you begin to up-level your leadership?

HOW MUCH

DO OTHERS REALLY TRUST YOU?

​Learn the two vital parts to trust and how they can help you become a more highly effective leader.

GET THE INFOGRAPHIC

Three Ways Compassion Makes Your Business Better

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Three Ways Compassion Makes Your Business Better
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In a recent CBS This Morning interview, Jeff Weiner, CEO of LinkedIn, expressed the importance of compassion in the workplace.

Regarding the organization of the future, Jeff said, “It’s about walking the walk… It’s about looking at different perspectives…it’s about those interpersonal or soft skills…that will set yourself, your team, and the organization up for success.”

To some people, this may sound like fluff.

After all, what’s love got to do with it?

How do you link compassion with success in a way that makes business sense?

First, let’s define what compassion is – and what it isn’t. A short definition of compassion is to have concern for the well-being of others. For more on this – and to learn what it isn’t – see my article on compassion and boundaries.

How does having concern for the well-being of others increase the bottom line?

Here are three ways compassion directly impacts your revenues.

1. Communication.

When compassion is absent from communication, it reflects a lack of willingness to walk in the other person’s shoes.

It is evidenced by little or no interest in hearing the perspectives of others, or in seeking to understand. It is also evidenced by a heightened tendency for reactive and judgmental thinking.

Poor communication can actually cost your company an average of $26,041 in productivity per employee per year. It can cost your managers the ability to perform the work and manage others; and it can cost you your leadership reputation.

2. Team and organizational alignment.

When compassion is absent from a company, teams and team members within teams work in silos.

Silos are responsible for missed deadlines, arguments over who is responsible for what, distrust, poor assumptions about others, conflict – the list goes on. The energy in such a business is negative and draining to the soul, and productivity is low as a result of it.

Do you consider yourself a compassionate leader? Be careful. Hubris Syndrome can creep up quickly, and you may discover you have actually compromised your leadership. For more on this, see my article: “Can You Lead with Heart and Get Results?”

3. Competitive advantage.

Caring for others gives you a corporate edge. But when compassion is absent, it has been proven to compromise your employees’ feelings of safety and loyalty.

They doubt that learning, collaboration, and innovation are possible at your company and can shut down, which impacts the bottom line. Service quality suffers without compassion, and the employee’s desire to empathize with others and move beyond personal bias to form a team suffers as well.

It is time to identify and take action on strategies for the workplace that ignite compassion, because, as you see, love and results do, indeed, go hand in hand.

Inspired by the book, Awakening Compassion at Work: The Quiet Power that Elevates People and Organizations (Berrett-Koehler Publishers, 2017, 272 pages)

HOW MUCH

DO OTHERS REALLY TRUST YOU?

​Learn the two vital parts to trust and how they can help you become a more highly effective leader.

GET THE INFOGRAPHIC