• Leadership Principles Are An Absolute Must
    Mar 5 2025

    Harvard Business School, Stanford Business School and INSEAD Business School are all awesome institutions. My previous employer shelled our serious cash to send me there for Executive education courses. Classes of one hundred people from all around the world engaging in debate, idea and experience exchange. One of my Indian classmates even wrote and performed a song at the final team dinner at Stanford, which was amazing and amazingly funny, as it captured many of the experiences of the two weeks we all shared together there.

    When you get off the plane and head back to work, you realise that the plane wasn’t the only thing flying at 30,000 feet. The content of the course was just like that. We were permanently at a very macro level. The day to day didn’t really get covered and the tactical pieces didn’t really feature much. This isn’t a criticism because you need that big picture, but the things on your desk waiting for you are a million miles from where you have just been.

    Fortunately, there are some leadership principles which can cover off the day to day needs. Principle #22 is “begin with praise and honest appreciation”. Such an obvious thing, how could this even be mentioned as a principle? It may be obvious, but are you a master of this principle? We talk about providing psychological safety for our teams. Well that is great and just how do you do that, when you have pressure to produce results from above and are feeling the stress of the current business disruption? It is too easy to begin with an interrogation about the current state of play, the numbers, the revenues, the cash flows. How about if you started every interaction off with finding something real to praise about the team members. Not fakery but something real, that shows you are paying close attention to what they are doing well.

    Mistakes happen. Except in Japan. In Japan mistakes are not allowed and the penalties to career advancement are large. “Fail faster” might make you a legend in Silicon Valley but would see you cast out in Japan. That is why the entire population here are all ninjas at concealing any errors, so that the boss never finds out. How do we get innovation going if we can’t tolerate mistakes? That is one big reason why there is so little white collar work innovation in Japan.

    Principle #23 says “call attention to people’s mistakes indirectly”. Rubbing in it some one’s face that they screwed up is a pretty dumb, but universally adopted, idea by bosses. Principle #26, “let the other person save face” isn’t an “oriental idea”. It is a human idea and no one likes losing face in front of others and it doesn’t increase people’s engagement levels. In fact, is has them thinking about leaving for greener pastures. Principle #24 also helps, “talk about your own mistakes before criticising the other person”. We want our team members to feel empowered to take responsibility, to step up and try stuff. That is how we create an innovation hub inside the organisation. If you have a hotbed of ideas from your team and the competition is still canning people who make mistakes, then you will win.

    Principle #25 is so powerful. “Ask questions instead of giving direct orders”. Bosses are staff super-visors, because we have super-vision. Probably true once upon a time in the olde days, but no longer the case. Business is too complex today, so we need to grow our people and to be able to rely on their ideas. If I spend all my time telling you what I think, I haven’t learnt anything. Bosses need to think of questions which will push the team’s thinking muscle hard and get people really engaged. Instead of laying our your thoughts, chapter and verse and falling in love with the sound of your own voice, try asking questions instead. After asking the question, shut up and let your people answer without interruption. It may be killing you, but do it. Being asked for your opinion and ideas is empowering. Maybe the boss has all the answers, great, but what if the staff have questions the boss hasn’t even thought about. In Japanese business, asking the right question is more valued, that having the right answer.

    All of these principles have things in common. They are common sense, but not common practice. They are super easy to understand, but devilish to execute consistently. They are game changers in our relationship with our staff. Having some leadership principles to live by just takes the action of thinking out of the equation. These become the reflex actions we take because they have become a habit. These are the types of habits we need to cultivate.

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    12 mins
  • Leaders Need To Empty Their Cup
    Feb 26 2025
    Tokusan the scholar visited Ryutan the Zen Master to learn about Zen. Tokusan was a very smart fellow and very confident in his knowledge and experience. He was good at impressing others with his capabilities and many people looked to him for guidance and advice. After about ten minutes of conversation, Ryutan invited Tokusan to enjoy some green tea. As the Zen master poured the hot tea into the cup, the tea began to flood over the brim, but Ryutan kept pouring the tea. Tokusan became agitated and said to stop pouring, because the cup was already full. Ryutan then told Tokusan that he couldn't understand Zen until he emptied his own mental cup, to allow new ideas to enter. This is a famous zen story in Japan and we leaders are Tokusan. We can be convinced of our ideas and become stubborn and inflexible about departing from them. We have risen through the ranks based on our abilities, experience and results. We had to work things out for ourselves and our decisions were correct. Over time we came to believe in ourselves and our decisions and we would plough ahead regardless of what others might have thought. We have always had to overcome resistance. We are now in the leader danger zone. There is tricky line between knowing what you are doing and actually being correct. We became the boss because our previous ideas were proved correct and superior to what others were advocating. We have seen off the idiots, doubters, naysayers, critics and rivals. We have climbed the greasy pole and they haven’t. Everyone should listen to us and believe what we say, because we are right and they are wrong. Case closed. This is the classic hero journey favoured by the independent, tough, driven, Type A, alpha mammals. For a very long time this worked just fine. Business however has grown more enmeshed with technology changes. More complex organisations have arisen and operate at hyper speed. Also, a different animal has been entering our companies, coming in straight out of college. Are we actually able to deal with these unparalleled changes? Charles Darwin’s theory of evolution put more importance of adaptability than strength or brains. Are we maintaining our full cup and therefore not well placed to adapt? Are we trying to do it all by ourselves? Many bosses are unable to hire smart people, because they cost too much, relative to the size of the cash flow in the company. Others won’t hire smart people, because they are scared of becoming a victim of future corporate internecine struggles, where they can be replaced with someone younger and cheaper. How exactly can we work through others? Covid-19 has disrupted business globally and the future is uncertain. How do leaders know what to do going forward? How do you know if your strategy is the correct one or not? Strong willed leaders see asking others for advice as a sign of timidity and weakness. They have attached their personal inner resilience to always knowing the correct answer, to being right, to being smarter and more savvy than everyone else. Complexity today exceeds the capability of one person leading the team to have all the answers. A superman or superwoman is no longer required. What happens though if you, as the leader, have low self awareness and can’t see that you need to empty your cup? Exactly how do you empty your cup? What should go inside the now empty cup? Lack of self awareness is one of the biggest hurdles to overcome. Once that is accomplished then the emptying and refilling of the cup can start to happen. We have to face ourselves and ask why do we think we are able to keep operating as we have always done, when the current situation is more difficult. There are no indications we are ever going back to how things used to be? Emptying the cup requires humility, often in short supply with powerful leaders. Running faster, pushing aside and overtaking the other lemmings to ultimately be sprinting off the cliff, is of no help. This is the moment to stop and consider your own cup. Is it full of your baloney, that you have convinced yourself is correct? Have you surrounded yourself with “yes men” or the meek and compliant? Have you bullied everyone into submission? Are there ways to tap into more ideas and solutions than you can possibly produce by yourself? Are there people closer to the action on a daily basis, who will have greater and better insights than you can possibly have. Your frontline experience is way out of date by now, as you have arisen through the ranks over these many years. This is scary. Your self belief is what has driven you thus far and questioning it unravels a lot of your personal construct about your right to lead others. That is the old model of leadership, so let it go. The used by date has expired on that one. Empty your cup and your ego and find ways of learning more from others, including those who work for you and may ...
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    14 mins
  • Leadership-Key Competencies Needed To Lead Others – Part Two
    Feb 19 2025
    In Part One we looked at two broad categories of leadership competences around being Self-Aware and having Accountability. In this next tranche, we will look at being Others-Focused and at being Strategic. Others-Focused has many sub-points, but today we will investigate five key aspects Inspiring Through role modelling and communication skills, leaders can and should inspire followers. The olde days of the boss having to know more than everyone else has gone. The focus has shifted to developing followers, through personal interest and example. Are you consciously, systematically doing this? Develops Others Once upon a time, certainly when I first started work, there was no particular concept that it was the leader’s role to develop others. Individuals had to step up and do it by themselves. This is fundamentally what all leaders had done in the past. Today however, business is more complex and fast moving, so everyone needs help. One of the issues is the struggle between selfishly focusing on your own glorious career and the role of others in boosting that cause and your own efforts to selflessly boost the careers of your direct reports. Companies need leader producing machines. The talented rise faster and higher by demonstrating they are that very elevating machine. Those who can demonstrate they can produce leaders are given a bigger remit to do that at scale. Can you do it and are you doing it? Positively Influences Others Rabid rivalry and internecine warfare between competing thrusters amongst the leadership team permeate the wrong messages to those below. Disciples pin their hopes to the banner of the thruster they think will go higher and take them with them. Everyone is grasping the greasy pole, trying to climb over each other to the top. Politicians and sycophants abound inside companies and are a vicious form of poison, because they are playing all ends against the middle to feather their own nest. The leader sets the tone. Not whining about others in the company, not playing petty internal power games and keeping firmly focused on beating the external rivals is the correct path. Are you and all of your colleagues on it? Effectively Communicates Personal capabilities and mastery of one’s designated tasks are the usual path to promotion. Being 100% responsible for oneself is different to being responsible for a team. This is where leadership communication skills are soon shown to be frayed and tatty. Speaking the lingua franca is frankly so what? Communicating key messages and inspiring and persuading others to your path are the required skills. Few leaders do a great job because many are locked into the belief that all this communication stuff is fluff and hard skills are the only currency. They are doomed to be low altitude flight path denizens, because companies are looking for people who can move the masses forward. Is what you are doing every day moving them forward? Providing Direction This sounds so simple. I mean how hard can this be? What if it is the wrong direction though? What if we are all being urged to sprint faster off the cliff? This is the VUCA world of Volatility, Uncertainty, Complexity and Ambiguity. Setting the correct direction isn’t the easiest thing for leaders these days. We can’t know if the direction is correct until we start down the path. The clue is to adjust when confronted by unpleasant hints about the actual truth. We need to keep adjusting to the market realities and not become too convinced of our own genius and superiority. Has your leader ego convinced you that you are always correct? Being strategic is one of those tropes of leadership, but what does it actually involve? Let’s look at couple of issues. Innovative This competency sounds obvious and easy except that very few companies, let alone people, are actually innovative. Think of all the companies you have worked for and nominate how many came up with any significant innovations? We are better off developing the innovation muscle of the entire team, than relying on our own scampy offerings. If you are substantially personally gifted in the innovation department then hats off to you. How many people like you then have you ever worked with? The answer is clear. The collective team, if harnessed properly to the task of coming up with innovative ideas, can do it together. The sticking point is, do you know how to marshal your team to do that? Solves Problems The is another obvious competency, except that are you the one running yourself ragged solving everything? Have you delegated tasks sufficiently so that others can share the burden? Leaders should be involved with big strategic issues, not with every small fry decision. If you are in the problem weeds and getting down and dirty with minor issues, it is time to rethink how you have positioned yourself as a leader. Uses Authority Appropriately Does every decision ...
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    12 mins
  • How Decisions Are Really Made Inside Japanese Companies
    Feb 16 2025
    The President of a company is a very powerful force. They drive the direction, the strategy and the culture formation inside the enterprise. In Western corporations, there are big salaries and big incentives tied to the leader’s performance, especially around profit achievement and share price gains for shareholders. We project this idea on to Japanese companies and imagine they are basically built in the same way. This idea seems fine, until you ever have to get a decision from a Japanese company. This is when you enter the twilight zone of differences about how things are really done here. Japan has some specific features which make the leadership terrain quite unique. Mid-career hires are the norm in the West and the exception in Japan, as far as larger firms are concerned. New graduates are malleable and the company leadership wants to install their group think, culture and conservative action methodologies in them. Seniority is a respected Confucian attribute in Japan, which has little currency in the Darwinian, performance outcomes oriented West. Age and stage make sense in Japan, when you spend your entire career with the one firm and are part of the fabric of that company, gradually being stitched in over decades. The risk aversion predominance in Japanese business weighs against change and bolsters constancy. We foreigners represent change. To become a trusted partner with a Japanese firm means they have to make some internal changes to accommodate the new thing we bring to them or the old thing we are tweaking in a new way. The question is, who inside the Japanese decision making hierarchy is going to take responsibility for the change. In Western companies there is a big personal payoff to taking risks, but Japanese salaries and bonuses are not on the same planet as a country like America. So, the upside of taking a risk in Japan is far outweighed by the potential career damage if there is a failure. We have all grown up with a British Raj model of decision making. Convert the leaders and you get the whole company to snap into gear and get with your programme. It doesn’t work like that here unless the President is the founder or the owner. This is the “one man shacho” formula, the classic dictator President, who rules with an iron fist and drives everyone to do what ever they say. Most big corporates though, have a structure where the President has P&L responsibility for the whole company, but the direct reports have P&L responsibility for their part of the business. The President can’t force them to make expenditure allocations impacting their turf without their agreement. Hence the reputation of Japan as the country of glacial decision making. I find this is a bit boring, because the Raj approach is much faster and easier for me. No one in Japan could care less what I want. I deal with a lot of Presidents, as I try my best “convert the Raj” techniques to get them to buy my training services. Being the President of my firm, I can get access to the senior echelons of the client company and get a hearing. This is where Western logic departs from Japanese best practice. The leaders I speak with won’t personally do anything themselves. The company has internal compliance methodologies to reduce risk and protect the firm. The work to investigate my idea will get sent right down to the very bottom of the pile. That lower level designated officer or tanto will start pulling together information on our company, our offer, our pricing, the market, the competitors, resources required and the prospective ROI. The tanto will then present that report to their superior, the next up the line, who if they approve it, will place their hanko or personal seal on the document. This is a public acknowledgment that it has passed their stringent evaluation process and they are willing to take responsibility and place it before their superior. The hanko marks on the document will also include any divisions or sections that will be impacted by the buying decision. This is an internal harmonisation and communication process to provide checks and balances. In this way, there are no surprises and no issues, when it comes to coordinating the execution piece. This process is repeated all the way up to the President’s direct reports who have P&L responsibility to fund the deal. If it is a big enough decision, there may be a senior executive meeting required. This is usually a formality to bless the decision, rather than make a decision. The plan executive sponsor will outline the idea at the meeting, there will be no questions and it is therefore agreed. Next item! The surprising thing is that the President isn’t the final decision maker. And I had such a good meeting with that President too and I thought I had the Raj technique working on steroids! Actually, the person I needed to meet was the tanto. I could either work with...
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    14 mins
  • Leadership-Key Competencies Needed To Lead Others-Part One
    Feb 12 2025

    Leading is super easy. You are given the title, the authority, the budget, the power and then you just tell people what they need to do. How hard can that be? As we know, leading is a snap, but getting others to follow you is the tricky bit. Our awesome power will certainly bludgeon compliance. Sadly, the troops turn off their commitment and engagement switch whenever they come into contact with kryptonite bosses. We get promoted because we personally did a rather good job on our individual tasks. That is a false flag though when it comes to being able to communicate, coach, set the direction and inspire others. Few great athletes become great coaches. It is a totally different skill set.

    There are four broad areas we will focus on to help us become successful leaders: Being Self-Aware, Accountable, Others-Focused and Strategic. The possibilities are endless, but these four areas will serve us well to elevate our thinking about what is required to be a great leader.

    Under the umbrella of Self-Awareness we have four focus areas.

    Self-Directed

    There is a mental and physical requirement for leadership, driven by a strong desire to be successful. We explore inside ourselves to understand what we need to do and why we need to do it. Someone who can only function on the basis of the advice of others is a follower not a leader. Of course, taking advice is good, but leaders have their own sense of True North and keep moving forward, charting their own course

    Self-Regulated

    Being a self-regulator requires supreme discipline. Knowing what not to do is as important as making action step choices. Shiny objects abound, multiplying like amoeba, but time, money and resources are limited. Be it business focus or our temper, we need to rein them both in and assert control.

    Develops Self

    Constant application of self-improvement sounds obvious, but many leaders are cruising. The more diligent may be doing a good job working in the business, but they are too busy to be working on the business. Is that you? Technology, society, company culture and organisational development overtake some leaders and ultimately they are ejected from the firm. Where is the locus of self-development to be found? Good question and there are multiple options. Good choices will have a lasting impact on our longevity as leaders.

    Confident

    “We don’t know what we don’t know” is a big problem. Before you become a leader there is that misplaced confidence that you know what to do in the role. As you rise through the ranks, you keep making new discoveries. The more you learn, the less you find you really know. Imposter syndrome is a big factor here after we step up into new responsibilities. Constant self-development is the cure for this, as we grow into the job.

    Accountability covers four sub-topics.

    Competent

    This is often mistaken for technical knowledge or business content cover. That capability within your old job is what thrust you into a leadership role. What about your competency as the leader? What do you really know about leading? How persuasive are you? How well do you understand the aspirations of the team? Can you coach others who are just not like you? Can you set the correct course in a raging sea? This requires study and doesn’t happen by osmosis.

    Honest and Having Integrity

    Are you honest? Would your people agree? Seeing people as cogs in the machine elevating your brilliant career, jousting with rivals for the next job using the team resources for that purpose and being all about me, me, me is often the leader reality. Think about some of your bosses up to this point. The crust on top of this reality is a false veneer disguising what is really going on. Subterranean self-interest is often voiced over with pious pronouncements. Being honest is about sincerely wanting to develop the team members and integrity is what you do or think when no one is observing you.

    Manages Progress Towards Goals

    Obvious. Yet are the goals clear to your team? Is there an intelligent plan? Are people engaged and bought in? Are you the pirate captain simply bellowing out orders and threatening the crew with the plank?

    Makes Effective Decisions

    When do you know a decision was effective? Certainly never at the time of making it. In that moment, we are working on hope rather than certainty. Are the team convinced of the wisdom of the decision? Was there any input opportunity for them? Does our power of personality or position power just crush access to the diversity of opinions available? When it isn’t working, are we trapped by pride, ego and arrogance to keep running faster off the cliff?

    In Part Two, we will investigate being Others Focused and Strategy for Leaders.

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    14 mins
  • The Slings And Arrows Of Outrageous Fortune Running A Virtual Team
    Feb 5 2025
    Japan has some set pieces around leadership. The Middle Manager boss sits at the head of an array of desks arranged in rows, so that everyone in the team can be seen. This is important because this is how the boss knows who is working well in the team and who isn’t. They can be observed every day, all day long. What time they arrive and what time they leave, who is late back from lunch – it is all there in front of the boss. Meetings are easily arranged and follow up is a shout away – “Suzuki, what is happening with that report?”. Now many of the team are at home, away from the constant surveillance of the boss. The boss has little idea how they spend their days and our clients tell us many Middle Managers are still struggling to supervise the diaspora. In many cases, the day would start with the chorei, the morning huddle, getting the team together to go through what is on for that day. These meetups can continue even when everyone is at home. During Covid, we moved it online. Everyone had to be on camera at 9.00am, dressed for business, rather than in a T-shirt. If they didn’t come on camera that was a red flag. There may have been some depression issues bubbling away in the background, as the isolation started to get to people. They began to withdraw. One of my team didn’t come on camera for three days in a row, saying there was an issue with the laptop webcam. Was there really an issue? How would I know that was the case, sitting in my study, at my home? I immediately started organising another laptop to be sent out. I need to see everyone’s face every day, to check how they are doing. In the end, it was a technical issue around the privacy settings in Teams. The point though is, I didn’t really know what was going on. I have to be continuously keeping an eye out for the emergence of any stress or depression in my team. At the chorei we would go through good news reports, the vision, mission, values, the Dale Carnegie Principle for that day, who we are visiting virtually or otherwise and who was visiting us, each person’s top three priorities for the day and a motivational quote. The whole thing took about ten minutes. I usually spent another ten minutes talking about things like taking care of your health, standing up regularly because we tend to sit for too long, issues around coordination which have arisen, the latest news in our business, the cash flow situation and recognising good work. We also had Coffee Time With Dale at 3.00pm every day for anyone who wants to just shoot the breeze and catch up with colleagues, they don’t physically meet anymore. It wasn’t that popular so we dropped it. The meeting cadence with direct reports continued online but it was easy for this to fade or drift. People’s new work from home schedules seem to make it harder to connect. Back in February 2020, when we started working from home, it had a temporary feel about it. On reflection, I didn’t immediately embed some processes I should have. These direct report meetings were a discipline I found I had to really enforce, because many of my staff seem to possess ninja level skills at avoiding talking with boss. I usually want stuff from them, I want it yesterday and I am very demanding. Talking with me is probably a pain, so some are quite creative in escaping the supervision. The biggest issue was coordination across the whole business, as we all descended into our little pockets of responsibility and started losing sight of the big picture. I had to spend a lot more time making sure that key information was being shared and that I was also sharing key information, rather than hogging it to myself. This was a time consuming activity, but we dropped the ball a couple of times because it wasn’t done properly. Before I knew it, timelines started to drift, activities dropped out of completion sequence and confusion was not far behind. This was when I discovered just how detail challenged some people in the team actually were. In the office it got covered off somehow. Being subterranean, it wasn’t noticeable. In isolation from each other however, wrong data inputs have a horrendous impact. They spark a lot of effort to clean up the mess created. It draws people away from what they should be doing, dragging them into the morass of re-work. We tried to get around these coordination and communication issues by creating one truth. There was a live document in Teams that everyone could access and all changes were noted there. As a training company, we had training events scheduled LIVE On Line or in the Super Safe Classroom, so we could see which ones were being executed, which were postponed, who was involved, etc. A limited number of people were allowed to feed into this document to enforce accountability and control. Today, with people at home, you may need a similar live document that tells everyone what is going on, ...
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    14 mins
  • How To Have Executive Presence
    Jan 29 2025
    Clients sometimes ask us to help their Japanese executives have more “presence”. This is rather a vague concept with a broad range of applications. There is a relevant Japanese concept called zanshin ( 残心 ). A rather difficult term to translate into English, but when you see it, you will recognise it. In Karate we do the predetermined, specified forms called kata (型). When someone is performing one of these kata, there are different points of emphasis and after the physical action is completed, there is a residual energy and intensity of commitment that continues. It is the same in the kumite (組手) or free fighting. After a powerful punch or kick is completed, the karateka keeps driving their energy, intensity and focus into their opponent. In business, we call this intensity “executive presence” but usually without the concomitant violence. When the executive makes a comment, there is an energy that remains after they have stopped speaking and the audience feels that intensity. We also call this having gravitas. Emilio Bortin was the CEO of the Santander Bank, which was a shareholder in the Shinsei Bank, when I was an executive there. He was visiting Japan to check on his investment and we were assembled to give him a presentation on what was happening with the Retail Bank. He was a broad shouldered but not so tall man, but when he entered the meeting room, he was like a Spanish Bull entering the arena, looking for a matador to emasculate. He completely filled that large room with his presence. It was absolutely palpable. He hadn’t even said a word, yet you felt his energy, intensity, determination, passion, strength and confidence. He was radiating zanshin - “presence” big time. “When I am a billionaire like Emilio baby, I will have presence too”, you might be thinking. So, did he get presence when he became a billionaire or did he become a billionaire, because he had presence? We know it was the latter. Right, very good, but how do we aspirant billionaire punters get executive presence? The energy being pumped out is a big factor. Low energy, low intensity people have zero zanshin and so zero presence. Softly spoken people can have presence too I guess, but frankly, you just don’t meet too many of those. There is a vast difference though between being raucous and loud and having presence. Being loud is basically just annoying. To have presence, your vocal strength and your body language must both be engaged at a higher than normal level. In casual conversation we speak at a certain level of intensity, usually fairly mild. When we are in a meeting or presenting, we need to ramp that up by at least 20%. When I am teaching participants in our classes to increase their vocal strength and speak more loudly, they struggle. I say to them “double that energy” and they raise by 1%. They resist because they feel like they are screaming. However, when they see themselves on video, it just seems confident and credible, not loud. This is one element of having presence. Pauses, ma (間), are another critical element. This space between the phrases or sentences, allows the audience to actually distill what you are saying. When you rush the words together, each thought overwhelms the previous thought. Each successive idea canibalises its predecessor and so not much content is consumed in the end. Our messages, in effect, are competing with each other. We speak at a good pace, so that the energy button has been pushed, but we need to break the content down to smaller brackets, which people can more easily digest. We are not rushing, so it shows control and no pressure being felt. This emanates confidence. We hit key words for additional emphasis, rather than allotting equal importance to each word. This focuses the audience attention on what we want them to focus on, rather than trying to ask them to swallow the whole talk, in one gulp. This communicates “I am confident”. This level of control requires us to be very concise. Too many words and the message becomes less clear, drowning in surplus words. We need to trim the fluffy bits right back. Our eye contact is a powerful engagement tool. Spraying the eye contact around the room is fake eye contact and meaningless. We focus 100% of our attention on one person, look them in the eyes for 6 seconds and then repeat the same formula with each person, one by one. They feel they are the only person in the room and we are speaking directly to them. Previous American President Bill Clinton was famous for his ability to engage strangers in crowds, when he was mixing with the masses. He focused his eye contact completely on that person in front of him and engaged them at the highest level. Standing up straight or sitting up straight is super easy, but few can do it. They kick out one hip when standing or sway around all over the place, ...
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    14 mins
  • Why We Need Phase Three Thinking
    Jan 22 2025

    In business we live in the world of shallow statements of opinion. Imagine there is a topic for discussion amongst the leadership team. People will let fly with their thoughts and this becomes the basis for decision making, based on people’s statements on the matter. Usually everyone is pretty busy, so the drill is to listen to what was said and then make the choice from amongst the various alternatives and move on. There is a problem with this. We are trapped in Phase One thinking if we continue in this way. Phase One thinking is that first reaction level of contemplation on what you have just heard. Instantly, you pour out your immediate thoughts on the issue. The problem with this is, although it is quick and saves time, there is pretty light contemplation going on here.

    The famous Greek philosopher Socrates lived from 470-399 BC and was famous for his questioning techniques. He used this method to help others dig deeper into their thinking. We have to take inspiration from him and develop our own questioning techniques. If we do, we will get to a deeper realm of understanding of the issues. This is the platform we need to make the best decisions.

    I notice this issue in our training classes. When we ask someone for their opinion on something, they will give us an immediate Phase One answer. Because Dale Carnegie was a devotee of the Socratic method of asking questions, our teaching methods rely on us digging in a bit deeper. We are trained to never take what someone says at the Phase One Level, but to always push further. This applies to leadership and to sales.

    In both disciplines, the students in the classes are encouraged to go further and question more deeply. In sales, for example, imagine we were talking to a customer. They tell us they need the widget in green. We train our students to ask why they want it in green, as opposed to accepting the green option at face value. This gets us to a Phase Two much deeper answer. That is good information, but it isn’t enough. We need the client to go to Phase Three thinking and we do that through further questions.

    If they said they wanted green, because of XYZ reason, we don’t stop there. In Phase Three we ask, “what would be the impact on your business if your were able to get XYZ?”. We have now elevated the discussion to the achievement of their strategic goals. We have taken them to a much richer source of information to help them clarify what they are doing. In sales, we have started to position ourselves as the customer’s trusted advisor.

    In leadership it is the same thing. Members of the executive team will give their opinions on an aspect of the business. Normally we collect all of these various opinions and then we make a decision based on that discussion. Often, we are influenced by the force of personality behind the opinion. This is only Phase One thinking though. If we ask them to explain why they think that, we have now driven deeper down to Phase Two. Once we hear everyone’s Phase Two level of thinking, we could make a decision at this point. We shouldn’t stop there however, instead we should keep going. Push them to go to Phase Three and tap into their ideas on how XYZ would strategically impact the business.

    This is a tremendously simple process. It does take slightly longer than just tapping Phase One thinking outcomes, but the harvest is so much richer. We have all had the experience of having had a discussion with someone, often an argument and a couple of hours later, we are having a conversation with ourselves. We are telling ourselves genius things such as, “I should have said this” and “I should have said that” etc. This is because in the interval, our thinking has moved way beyond the simple Phase One responses we were applying in the conversation. We have moved to Phase Two and Phase Three thinking, but we have missed the boat.

    Instead of having to wait a couple of hours to get a richer response in meetings, as the leader, we have to get our Socrates mojo working and go for Phase Two and Phase Three responses right there and then. We have to guide our people to start thinking more strategically about the business. You will be surprised by the improved quality of thinking that you trigger. This means the leadership group discussion and the decisions made will also be much better. Let’s all decamp to the Phase Three world and live there from now on.

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    14 mins