Phillip Van Hooser - Transformational Leadership

A few days ago, I was in Chicago preparing to address the Chairman’s Forum for the Independent Community Bankers of America. I had an opportunity to talk with Philip Smith and Jeff Gerrish. Philip is President of Gerrish McCreary Smith and Jeff serves as Chairman of the Board. Their firm serves as consultants and attorneys to community banks, thrifts, credit unions, and their respective holding companies.

We were discussing ways to manage change and provide strong leadership in an industry that has been turned upside down by the financial crisis of recent months.

Successful leadership in the midst of chaotic change requires a mind shift. Traditional leadership has the mindset that “if it ain’t broke, don’t fix it.” A transformational leadership approach says, “It’s already broken, or it’s going to break. How can we seize the opportunities we have now to make it better?”

Managing change with this transformational mind set requires that leaders know what they are up against. There are some critical truths about change that need to be recognized before getting a firm grasp on any changing situation.

Truth # 1: Change is inevitable – it’s going to happen.

The question for leaders is – will you see it coming? What steps are you implementing to survey the changes in your industry? Have you developed plans for innovation and contingencies? If not, why not? Transformational leaders are visionary.

Truth # 2: Change impacts everyone, at some point, at some time.

We don’t live and work in a vacuum. And unfortunately, we are sometimes innocent bystanders who get caught in the groundswell of change. Consider, for example, the honest owner of the auto dealership whose livelihood is cut off as a result of the disassembling of Chrysler and General Motors. Transformational leaders understand the ripple effect of change and realize their organization can be impacted by the decisions of others.

Truth # 3: Change is most challenging for those who are most comfortable.

Traditional leadership thinks: “I like the way it’s always been done.” “Why worry about what MIGHT happen?” “Business seems to be going nicely, why mess with a good thing?” Transformational leadership says: “We must innovate or fall behind.” “What can we change that will take our processes, products and people to the next level?”

Truth # 4: If leaders wait until everyone realizes change is necessary, it is often too late to manage the situation successfully.

Successful leaders must accept the responsibility for setting the vision and direction of their organization. That includes accepting the responsibility to make difficult decisions in a timely manner.

Truth # 5: Most often, change is a result of force, not choice.

Again, the U.S. auto industry is a classic example. Transformational leaders have the mind set to change voluntarily. They seek out the parts of their organization – and themselves — that need improvement and implement the change before that change is forced upon them.

Truth # 6: When change occurs, new problems and new opportunities are always created.

Yes, managing change is a huge headache. It is also a huge oyster filled with opportunities never before available. The need to reduce U.S. dependence on foreign oil coupled with the restructuring of the U.S. auto industry has spawned an explosion of new “green” technologies. Transformational leaders understand the value of seeking out and maximizing the opportunities that exist each time something changes.

Whether it’s the banking industry, manufacturing, energy, healthcare or some other industry, opportunities abound for those organizations whose leaders embrace these truths and transform the way they manage change.

Mr. Smith and Mr. Gerrish shared a few of their thoughts on leadership and change with me. I think you’ll find their comments valuable as well. Check them out here:

Philip Smith, President, Gerrish McCreary Smith

Jeff Gerrish, Chairman, Gerrish McCreary Smith

Phillip Van Hooser
Leadership Expert, Author & Keynote Speaker
phil@vanhooser.com

Although you and some of your industry colleagues may fill the role of leader now, think back if you will and remember the period shortly after you accepted your first supervisory position. Can you recall any of the “professional enlightenment” you received during that period? Specifically, did anyone offer you the following advice? “Congratulations! I know you have a lot to learn, but I am going to tell you something right now that, if remembered, will save you many headaches. Don’t get too close to your people. If you get too close to your people, you won’t be able to make objective decisions concerning them.”

How many of you have received guidance along these lines? I know I did and I’ll bet many of you did, too. The only problem with this recommendation, no matter how sincere it was when offered, is that it is not valid. As relationships and expectations among employees and employers have changed over the years, so have the unwritten and often unquestioned concepts that have governed behavior. It is time to dispel myths, such as this one, once and for all. Consider the following thought, which I believe is much more appropriate for our day.

In my training programs, I remind leaders common sense tells us the better we know our “followers,” the more effective our leadership skills become. Now, when I’m talking about getting to know them, I’m not talking about such activities as dating or drinking with them, or going on extended vacations with them. Obvious professional and ethical problems, not to mention perception issues, haunt these situations. I am simply reminding leaders in order to get the best from the followers entrusted to them, they must begin by showing sincere interest in them.

It would be impossible to share all my thoughts on this topic in the space available here, but maybe I can offer you something to think about on your own. Take a minute to think specifically about the people you lead. Would you say you know them well? Whether your answer is “yes” or “no,” test yourself against the following criteria I believe any leader ought to know about their followers. 

1. Know Their Name.

As simple as this sounds, in many ways it may be the most important point. People simply will not invest themselves in your leadership if you have not taken the time to get to know who they are. Do not assume for a minute that every leader knows the name of each of their immediate followers. It simply is not true. And contrary to popular opinion, those generic references to “Bud,” “Champ,” and “Hon” are not considered popular terms of endearment for most employees. Take the time to know your employees–all your employees–and be able to pronounce their name correctly. It is an essential first step.

2. Know Their Spouse’s Name.

I fully realize the challenge here. Not only does this mean there are almost twice as many names to learn, but periodically, the spouse’s name changes! Nevertheless, we need to know the spouse’s name because of the position of importance they hold with your employee.

3. Know The Spouse’s Occupation.

This one gets a little trickier. Should we really get this personal? My answer: only if you want your employees to know they are more than just a pair of hands to you. A large percentage of families are supported by two wage earners. Due to present economic circumstances, two incomes are a necessity for many of us. Knowledge of various scenarios that impact your employee’s spouse in their professional pursuits like downsizing, transfers, relocations, etc. make it easier for leaders like you to understand and anticipate your followers’ needs. Such information should prove helpful in your future planning and decision-making activities.

4. Learn About Their Children.

I constantly hear supervisors and managers moaning and complaining they have so little in common with their employees that there really is nothing for them to talk about. Try talking about their kids. People love to talk about their children. When most people share about their children or grandchildren, they are sharing from their hearts. Don’t miss such an opportunity.

5. Remember Their Birthday!

Nobody wants to remember the year; everybody wants to remember the day. It is the most significant day of the year for each of us. We may not be the type to announce it to the four winds, but we are certainly pleased and honored that someone else might be willing to. I am not suggesting that you buy gifts  for everyone. But, you might be pleasantly surprised what a genuine happy birthday wish from you might do for the attitude and morale of one of your followers.

6. Know Their Service Anniversary Date.

This is my personal favorite. It’s my favorite because so many supervisors and managers so callously overlook it. However, those of us who understand the importance of calling positive attention to professional accomplishments know that the simple act of thanking an individual for four or eight or thirteen or twenty-three years of conscientious and loyal service to the organization will stay with that individual for years. And the best thing of all–it’s totally free! You don’t have to budget for it. Try it. Your followers will never forget you for it.

7. Ask About Hobbies and Personal Interests.

Always keep in mind your followers have a whole other life away from work. I have known employees who spent their personal time on any number of activities including coaching a little league team, gardening, building and racing stock cars, fishing, boating, and many others. Taking time to inquire about these outside activities can propel our professional relationships to a whole new level. Plus you might just learn something.

Well, there they are. How did you do? Five out of seven? Three out of seven? On my scale, do you know your employees as well as you thought you did? If so, congratulations. If not, maybe you should begin working to strengthen those relationships. There is one word of caution, though. Always remember that if you can’t do these things sincerely, then you shouldn’t do them at all. Your employees will be able to see right through insincere actions. But with sincere commitment, the results of your efforts may prove exhilarating.

 Phillip Van Hooser
Leadership Expert, Author & Keynote Speaker
phil@vanhooser.com