Leaders vs. managers

As a follow up to Steve Ventura's leadership post I want to share a revelation that I didn't realize until the last few years...most managers are not leaders.

For most of my career I thought these words were one in the same. How could a manager not be a leader? In the context of my career weren't all sales managers leaders?

I owe much of my "awareness" to the writings of Seth Godin. His book "Tribes" included these memorable comments:

1. Leadership is about creating change that you believe in.
2. Leaders have followers, managers have employees.
3. Leaders change the status quo.  

I could write many posts about the managers I worked for who did not lead. It would be pointless.

The best leader I ever worked for was a visionary. He saw the opportunities in the market and put them into focus. He highlighted my strengths in front of peers to build my confidence and expectations. He did the same for others. In retrospect I did my best work when working for (with) him. I was truly following his lead, and he set a great example.

Leaders initiate. They have skill and attitude. Generosity and bravery. They are in it for the good of all. Managers are great followers, amongst other things.

A "Crash Course" on Leadership

This material came from Steve Ventura at the Leadership & Personal Development Center. I hope you have these leadership themes where you work.

The 10 most important words:
“What can I do to help you be more successful?”

The 9 most important words:
“I need you to do this, and here’s why…”

The 8 most important words:
“That’s my mistake and I will fix it.”

The 7 most important words:
“My door is always open to you.”

The 6 most important words:
“Let’s focus on solving the problem.”

The 5 most important words:
“You did a great job!”

The 4 most important words:
“What do YOU think?”

The 3 most important words:
“Follow my lead.”

The 2 most important words:
“Thank You.”

The MOST important word:
“YOU”

Referral Networking Groups

Are you building a business from the ground up? Do you need a sales team but don’t have it in the budget? How can you get people on the street to tell your story?

Join a business networking group!

The concept of relationship-based business development is cost effective and will bring “perfect customers” to your door. Research groups such as Business Network International (BNI) or something comparable in your area. Attend meetings on a trial basis to get a sense of the professionalism of the group.

Here are key elements to be successful in a networking group:

·        Commit to the meetings and arrive early

·        Take a leadership role

·        Do not pitch your services

·        Build relationships and trust

·        Develop a “how can I help you” approach

·        Prepare a “perfect customer” profile to share with your peers

·        Give, and ask for warm introductions…not leads

·        Follow up on every introduction. Update the person giving the referral on the status.

·        Initiate quality, thoughtful introductions to peers that you trust

·        Schedule one on one time with all other group members to build depth to your relationship.

Commit to this process and soon you will have a large network looking out for you, and vice versa.  

When you win...who knows?

Bad news is on every street corner.

Good news sounds better than ever. I just spoke with an entrepreneur who is coming off of a rocking two week period for her business. It's time to strike up the band!

The power of positive thinking may not solve our economic malaise but it can't hurt.

When you win what do you do? Do you gather testimonials? Do you tell your story to the world? Do you tell prospects who have been holding off on making a decision? Do you share your good fortunes with others?

Your business will pull us out of the recession in spite of the obstacles you face. Get used to telling an inspiring, winning story. We are anxious to hear it.

When do we raise our rates?

Here's how this issue is dealt with using the devil's advocate position:

"The economy is so bad we cannot raise our rates...if anything, we should lower them."

"We must raise our rates because revenues have been down and we must make up for the shortfall."

Are you contemplating this dilemma? There is no simple answer. One of the fascinating aspects of capitalism is that the "market" sets the rate.

A local recreation business raised their rates this year, and business has dropped 10-15%. Are they related? They aren't sure and will spend the next two months scrambling to adjust the rate to drive demand to try to make budget.

How do you determine what the market will bear in your business? One way to find out is to ask customers, former customers and prospects about the perceived value of your services. When I visit my favorite steak house with my wife, spend $120-$150 and come back 6-8 more times in a year we have said that the price is right. If the Fillet Mignon costs $5 more I will continue to go because the experience is exceptional. There is a tipping point based on price and my discretionary income.

Communicate with those who know your business well. Surveys, focus groups and interactive media will assist in the dialogue. They will help you price your product as well as anyone.

Under promise - over deliver

The fastest way to lose a customer and a reputation is to over promise and under deliver. We must strive for the opposite.

This week in Connecticut has been a trying time for many, especially the utility companies trying to restore power in a timely, safe manner.

I watched the news last evening and saw that over promise and under deliver is a predominant theme relating to power restoration. One by one people were interviewed that were without power for five days. Some were told power would have been restored by now. Others had not seen a power truck in their town. The prevailing sentiment sounded like this..."if it will take til next Wednesday tell us so we can plan accordingly". Not only are these people literally in the dark, they feel that the lack of communication has made things even darker.

No sane person can blame the utility companies for the storm. It is fair for customers to have an expectation of communication, even if the news is not what they want to hear.

Expect the unexpected

If you live on the eastern seaboard including New England you will appreciate dealing with the unexpected. Although we were warned most of last week the devastation caused by a tropical storm is a wake up call.

Was your business effected? Are you still recovering? Did you have a plan in place that factored in loss of power for days and possibly weeks?

What will happen if a real hurricane hits this region?

Large companies usually have contingency plans for natural disasters. 9/11 necessitated a new level of preparedness based on the act of terrorism. All of this proves that there is no limit to the number of things a business owner has to account for in the day to day running of their business.

The next time a hurricane is headed this way I am packing my bags...driving west and settling into Sandusky Ohio for a few days.