Top executivest I biggest mistakes

By Alex Cunningham President Profit Management Consulting

rnHE top executive's leadership |. ability and management style are two key indicators of a company's success. Is the person at the helm of your company guilty of one or more of these common mistakes?

Mistake #1: Failure to Plan

Just as no architect would build a house without blueprints. no company should be built without a business plan. Without a definite direction, a company becomes reactive to unanticipated events-with haphazard results. Who is responsible for planning?

In the end, it's the owner's choice: trSr to succeed by design or by default.

Mistake f2:Failure to Listen

Undoubtedly, failure to listen is the most prevalent shortcoming among executives. Yet. listening reveals what a company's customers want and need, what the competition is doing, what problems the employees are experiencing, and how to build a better organization. Don't underestimate the value of employees and their ability to share information. Employees watch situations unfold, discuss controversial matters, complain about management, and have strong opinions about it all. The people in the trenches are the ones who really know what's going on.

The business owner who chooses to ignore employee input or who only pretends to listen is doomed to making decisions based on incomplete or incorrect information. Successful leaders realize that effective leadership comes from listening, not talking.

Mistake #3: Failure to See the Big Picture

Many ceos hide behind the security of their daily routines so they can avoid dealing with the more vital decisions. Priority issues must be isolated. Owners must stand back and determine what's really important to building and running their businesses successfully. By formulating the big pic- ture, the planning process becomes easier and less intimidating.

Remember that the big picture isn't just projecting out three or five years, but also annually. Quarterly progress reviews allow for adjustments along the way versus realizing that a company must shut down without recourse.

It's the owner's choice:

try to succeed by design or by default.

Mistake #4: Failure to Delegate Studies show that ceos share many characteristics. One is a strong ego, which often translates into a heavier workload for the ceo. Certainly that shouldn't come as a surprise considering that many have gotten where they are through sheer grit. Naturally, they'd want to be involved in every aspect of running their business. However, it does become an obstacle when they believe their way is always superior to that of any employee.

What works better is hiring good employees and delegating to them as much as possible. In turn, employees experience a sense ofcompany ownership through their sfrong level of commitment. By gaining accountability, they learn what it's like to either srumble or receive the accolade. Warning: give accountability without authority and any purpose will be defeated.

Mistake #5: Failure to Expect the Best Owners typically get what they expect. If they don't expect the best, employees sense the lack of commitment and react accordingly. Owners must first demand the best of themselves. Adhering to "best practices" dramatically affects the corporate culture and bottom line. Owners can get workers to reflect the tone of manase- ment by demonstrating this attitude in their interaction with them. The ageold example is the boss who, when needed, comes in early and stays late.

Mistake #6: Failure to Take Responsibility

No amount of delegation ever absolves ceos from ultimately being responsible. The buck does siop witf, them, and they should never seek to dispense blame elsewhere. On the contrary, when employees excel at what's been delegated, the accolade belongs to no one but them.

Ceos who shoulder all the responsibility find it has a trickle-down effect. Employees who watch the owner step up to the plate feel more obligated to be responsible themselves.

Mistake #7:Failure to Learn

With change a constant of every organization. companies must ever learn new ways of succeeding. Failure is a valuable teacher only if something is done with it. Don't repeat the same ineffective behavior and expect a different outcome.

Good management means understanding the purpose and limitations of the tools available. Many ceos approach problems one building block at a time, when the solution may already exist through training, consulting, automation or focus groups.

Mistake #8: Failure to Lead by Example

Subordinates tend to reflect the traits of their leaders. When a company reaches a pinnacle of success, there is rarely a lack of pride. Yet, over time this pride at the top turns into complacency and drives up other costs, fosters inappropriate decision-making based on "what it used to be like," and ultimately erodes gross margins.

Questioning their own performance often comes too late for owners or ceos. They've been sending out one message to their people for so long that it's difficult for their people ro accept anything else from them.