4 ways to be a proactive executive

By Clark Colvin

fiNCE upon a time, before he was \-f c.e.o. of Scott Paper and Sunbeam, Al Dunlap, the famous/ notorious turnaround consultant, was interim c.e.o. of ANI, the largest engineering company in Australia.

After he had fired most of ANI's senior management, sold off branch offices and warehouses and cut head office staff by 907o, Dunlap decided to visit one of the company's out-of-town steel mills. He was met at the airport by a company executive. They walked outside and climbed into a fire-enginered Ferrari. "Either this guy is independently wealthy," Dunlap thought, "or this company is nuts." Upon inquiry, Dunlap was told the Italian sports car was "a company car."

Dunlap then asked the executive for a tour of the mill. "Fine," said the man, "but I don't do tours." As they drove away, the ANI executive related all the other things he didn't do. Dunlap added one more item to the list: "You don't collect paychecks here anymore." He sold the Ferrari, too.

In this anecdote, which is described in Mean Business: How I Save Bad Companies & Make Good Companies

Great, Dunlap put his finger on a major problem in the business world today: too many executives are more concerned with the appearances of power Lhan with the proactive exercise of it. Any executive who is more interested in flashy cars (or Armani suits, expensive wines and membership in exclusive golf clubs) than in rolling up his sleeves and getting down to work is an executive who has his priorities all wrong.

To get ahead and stay ahead in the current super-competitive business environment, an executive needs to be proactive. What are the characteristics of a proactive executive? He:

. thinks positively, but doesn't underestimate the challenges he faces;

. is realistic, but is prepared to "think outside the box" in order to develop winning strategies, and

. takes the time to consider all his alternatives befbre he acts.

A proactive executive always has a Plan B ready to go at a moment's notice, them. Result: your managers will see for themselves that you are personally committed to making your company Number One with the people you do business with.

Lesson 2. Proactive executives are known by their managers.

The first opinion that is formed of an executive's intelligence is based on the quality of the men and women he has around him. When they are competent and loyal he will always be considered wise, because he has been able to recognize their competence and to keep them loyal. But when they are otherwise, he is always open to adverse criticism. because his first mistake has been in the choice of his managers. Therefore, be proactive and hire the best people you can afford. Encourage and reward them. You'll look like a genius for having brought them on board.

L"rrott 3. Proactive executives are tough when they need to be, but don't wallow in blood.

Several years ago, I was interim c.e.o. of a family-owned three-yard retail lumber operation in South Carolina. The family was particularly attached to the oldest yard and couldn't bring themselves to close it despite mounting losses. As soon as I was put in charge, I shut it down. A few tears were shed, but the company survived and today it's as healthy as a trout.

L"rror, 4. Proactive executives are always prepared for trouble.

As a management consultant specializing in turnarounds, I have often, like Al Dunlap, been called on to help put a company back on its feet. Over the years I've picked up some lessons on how to be a proactive executive:

L"rron l. Pibactive executives lead, and they lead by example.

"Do as I say, not as I do" is not going to win the hearts and minds of the people who work for you. Exhorting your managers to work harder or work smarter is effective only if you follow your own good advice. If, for example, you want to make your company more "customeroriented," be proactive: bring customers to the office, show them around and get your people talking to

Proactive executives need to be eternally optimistic. At the same time, they should never allow themselves to be caught off guard when the roof caves in, as it sometimes does on both companies and careers. Many executives, like the rest of the human race, tend not to anticipate a reversal offortune when things are going well. For some reason, the companies-and the executives-that fly highest seem to hit the worst turbulence. Therefore, a proactive executive always has a Plan B ready to go at a moment's notice.

I'll bet that Al Dunlap, who has tasted failure as well as success, doesn't agree to take on an assignment before first planning his escape route. I wonder if it involves jumping into a red Ferrari.

Clark S. Colvin is a Salem. Or-based consultant specializing in corporate restructuring and turnarounds. He has worked for clients in I I states, Canada and Great Brilain.