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by Tom

Leadership Wrap-Up

Dezember 15, 2011 in Financial Services, Investment Banking, Private Banking, Success Stories

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So to wrap-up all of these practices into a short but comprehensive summary:

  • leaders create an environment of active mutual support.
  • And any environment is only defined by what we create, promote or allow.
  • In that sense leadership has nothing to do with organizational rank or financial powers but all to do with your inner wiring and worldviews.

You can start leading today. Just don’t believe everything you think.

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by Tom

Stories – the leadership conversation

Dezember 9, 2011 in Financial Services, Investment Banking, Private Banking, Success Stories

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But how can you determine a good leadership conversation? Practiced and mature leaders have established a solid social identity through conversations and they apply the following:
- They challenge business as usual and think beyond what’s deemed appropriate and possible
- In speaking for the future they inspire alignment along a shared vision
- They are enabling others and foster collaboration amongst teams and individuals
- They model the way, act as a role model and “walk the talk”
- And they encourage the heart in recognizing success and celebrating it

Obviously putting this guidance into practice will not be straightforward and you will have to be prepared to deal with setbacks and iterations. And that is the crucial point where you really can make a difference. Whenever you and your team commit to a new possibility and run into an obstacle you can choose a response in both speaking as well as acting. So whatever you say or do will either perpetuate the status quo or move you further on the path towards your objective. And to do the latter it is best to seek the active support of your colleagues and to reaffirm the commitment originally pursued. It is this spiral of setting an ambitious objective and dealing with setbacks that takes time and perseverance. To honor this path you will have to take a clear stance towards what you consider realistic and ambitious: “A true leader always speaks respectfully about the past, realistically about the present and optimistically about the future”, says Jack Weber, Professor of Business Administration at the Darden Graduate School of Business at the University of Virginia. In his over 20 years of researching and teaching leadership Jack and his wife Carol have helped many global organizations to manage the transformation towards a leadership driven culture.

Another practice that differentiates the leader from the manager is how this positive attitude towards a great future is established. While managers usually make assertions, leaders make declarations. An assertion is something that can be underpinned by a plan and usually can be proven. And though this is certainly required for many administrative tasks it will not promote thinking outside the box of your trained worldview. When JFK dreamed of putting a man on the moon within a ten-year time frame, people didn’t think it would be possible and he himself had no idea how it could be done. But still in declaring this visionary possibility and by repeatedly re-asserting his commitment to that endeavor he was able to motivate and align a whole nation to work towards a glorious target. And it’s these BHAGs – big, hairy, audacious goals – that fuel many amazing leadership feats. Take for example the young team that decides to turn an average fish stand in a Seattle open air market into a buzzing, thriving and globally known example of business leadership (check out the great videos at http://www.pikeplacefish.com/). Obviously you will have to determine and pursue your own BHAG and be sure to keep a firm grip on it during setbacks and disappointments. One fact that can also help you through these difficult stages is the statistic, that true innovation adoption only requires a mere 16% of critical mass. In his book, “The tipping point”, Malcolm Gladwell outlines how new ideas and trends become mainstream. Usually only 2% of any sizable population can be considered pioneers, who take on risk and try out new ideas early. Another 14% can be considered early adopters who observe and evaluate the experience made by the pioneers and are eager to still obtain a fast-mover bonus in utilizing new trends and technology. And once you have convinced those 16% you will enter the mainstream and late adopters usage patterns where existing trends propel themselves without the need to be actively pushed forward.

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by Tom

Possibility thinking

Dezember 3, 2011 in Financial Services, Investment Banking, Private Banking, Success Stories

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Usually the lifecycle of new ideas progress through several stages: First it is ridiculed, negated and called impossible. Then it is labeled irrelevant and at last it becomes what everybody knows. When you want to move an idea from the first to the last stage you have to employ possibility thinking. The bestselling author Milan Kundera found his own metaphor for the fact that as leaders we have to think, listen, speak and act differently than when we manage. He wrote: “When the heart speaks, the mind finds it indecent to object.”

So as we have started with our own thinking and learned about the possibility to break free from our inner box by reflecting on our own worldviews, we now have to move to the second most important lesson in leadership – on how to listen. Most of the times we don’t pay special attention to the way we listen. It is something intuitive and we do it so regularly that almost everyone considers himself a good listener. But most of the time we are listening in one of two modes.

  • When we are in evaluative listening mode we are trying to find the flaw in whatever out communication counterpart is saying. We constantly check what is said with what we know ourselves and are quite ready to intervene or at least, in a more polite manner, mentally note down the flaws and counter arguments for later use.
  • The second regular listening mode is when we listen for action. Here we constantly ask ourselves how what is said will or might impact ourselves. Often political conversation within companies is full of evaluative and action screening listening.
  • The third and rarely applied mode of listening is how leaders try to listen: In a constant state of active mutual support.

When we listen for possibilities we are trying to support what is said by our own stories and experience. And even if we are skeptical of what is said we try to think about the possibility and what experiences could indeed make that possibility a reality. When you are in that mode of listening, you are constantly trying to speak for someone or for something.

And indeed it is a great daily exercise for every aspiring leader to pick one person in your professional environment and actively speak for him or her in front of other people. You will find that it is very unusual at first and depending on the level of leadership culture that prevails in your company it might even trigger some cynical comments. Do it anyways and make it a habit and you will find how this practice starts to change the way your communication flows. Because leadership indeed occurs in conversations it is very much about which stories are people telling about you whenever you are not there. Hence another definition of leadership is to leave your environment saturated with positive stories. With every story you can choose to manifest ones worldviews or to alter them.

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by Tom

Understanding world views

November 25, 2011 in Financial Services, Investment Banking, Private Banking, Success Stories

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To understand the nature and power of ones world-views is an important element in judging, whether an action is fit to lead. We are wired to our experiences and prejudices. What we have seen and learned during our lives determine in large parts how we react to similar or related situations. Mostly this happens beyond our conscious thoughts and without any reflection – whether you judge a clear and loud statement at work, as being rough or firm could be such a wiring. Whether you understand actively selling products to people as a genuine service or as a pushy and questionable practice would be another example. In that sense world-views govern the attitude of people, govern what they think is appropriate or possible. And this attitude in turn rules their behavior and thus guides them towards compliance or commitment.

And while we hardly ever reflect upon our own world-views, they play a large part in who we are as leaders. To a certain extend our world-views form the infamous box that creative minds ask us to think outside of. Past events and experiences have formed rules and stories and conclusions inside our head that we use to interpret and evaluate new events. In our regular day-to-day thinking we are limited by this box and training your mind to extend beyond its borders is called “possibility thinking”. Carol C. Weber of The Cahill-Weber Group leadership institute links this to her favorite saying: “Don’t believe everything you think.”

Leaders have to be aware of role world-views play when they interact with their staff but they should refrain from trying to change people’s world-views. What good leaders can do is to create new experiences and realities that drive their employees to adopt and extend their past views. This approach follows in large parts the famous advise that if you want to build a ship, you shouldn’t order your staff to draw up a plan, cut down trees and sew new sails but instead awake in them the longing for the sea.

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Who really wants a single source of truth?

November 9, 2011 in Financial Services, Investment Banking, Private Banking

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Whenever I speak in front of expert communities about the holy grails of Business Intelligence and Sales Analytics the buzzword most often heard is single source of truth. But whenever I look at my daily practice with any of our clients the truth is rarely single. And usually the multiplicity of truths is due to one of the following:

  • expertise along a certain function
  • responsibility along a certain geography
  • broken value chains that still honor Taylor’s ideas in the digital age
  • ignorance of the big picture / complete business model
  • the fear of losing independence or flexibility

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So do we need to put the ideal of corporate Analytics to rest? I do not think so. Instead we need to find analytical practices that preserve the benefits that private truths offer while at the same time, unify data, calculations and processes.
We have come across a new practice recently that aims at merging corporate integration and functional or personal flexibility. The main architectural components building the framework of this ideal are described in a compact mode in this and in a more detailed fashion in the sub-sequent posts.

 

  • 4 Layer data model – build up your data architecture along a four layer fashion from the start. While the first layer mirrors the source systems in an original and 1:1 mode the second layers starts to form certain concepts of a common denomination. For examples this second layer may form one common concept of clients or products based on the multitude of client or product representation that are living in the operational systems of records. The third layer then builds one integrated and common data model based not on the operational layers but on the second layer of abstraction. This will help to keep both the common data model and the operational data independent and flexible from each other. The fourth layer in turn is used to translate the “single truth” semantic into detailed and function specific views, replacing the former private truths with new but integrated versions of expertise, geography or process steps.
  • Common Master Data – a data governance and data stewardship framework that aligns the main dimensions of the company along agreed standards. While you may continue to have multiple views and flavors of clients and products a common and central logic needs to exist, that links the private to the corporate truth.
  • Federation capability – instead of developing and clinging to hard and inflexible ETL processes and logic, the entire transformation logic from operational data store to the final report (across all 4 layers of data models) will be entirely transparent and non-persistent. Instead of copying data around, the federation component will translate and access on the fly and create an evolving enterprise virtual data warehouse.
  • Central Data Store – while federation might take the place of traditional ETL there still is the need to create a central analytical data store over time. To preserve reporting, KPI and performance management history data and the point in time snap-shots of shared data the former data warehouse will evolve into a more operational role – both looking forward as well as looking into the past.
  • Open Reporting Layers – and at last we should refrain from trying to standardize and centralize reporting in any medium to large scale organization with distributed responsibilities. Instead we should make sure, that the important logic is not refined to the reporting tools but made re-usable by applying transformation logic within the third or fourth layer within our data architecture. And have any tool use the same baseline.

Obviously even this advanced approach towards a truly integrated data management policy will take lots of effort and time. But it can at long last bridge the gap between tactical benefits and strategic direction. And it will let us work towards a single truth yet supporting all the private truths on top. Feel free to discuss…

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What elements constitute a Strategy?

April 14, 2011 in Financial Services

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Ever heard the sceptical sentence from your clients – “you know this looks nice, but it’s just too consultancy….”

Too be honest – I did and while it made me scream for the first time – I had to agree with the verdict and since am asking myself with every buzzword used and every chevron drawn: How can you be more consise? So what consitutes a good strategy – these are my 5 pennies and I welcome yours:
- Everyone needs to grasp the big picture
- Value context over content (while the devil may be in the detail, the trick is in the interfaces)
- Include benefits and time-to-market
- Show transparently what will change (from today to day 1 and to target state)
- Delineate what will not be tackled / which expectations will not be met

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