Inspirational and informative, The CEO Code shares real-life stories of success and failure from author David Rohlander's personal journey and work as a mentor and coach to CEOs and executives of Fortune 500 companies, mid-sized companies, and start-ups. The book will give you:
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Introduction: How Do People Really Change?,
Part I: Communication,
Chapter 1: Trust,
Chapter 2: Respect,
Chapter 3: Understanding,
Chapter 4: Empathy,
Chapter 5: Resolution,
Part II: Execution,
Chapter 6: Action,
Chapter 7: Repetition,
Chapter 8: Habits,
Chapter 9: Attitudes,
Chapter 10: Feelings,
Part III: Operations,
Chapter 11: Teams,
Chapter 12: Delegation,
Chapter 13: Systems,
Chapter 14: Accountability,
Chapter 15: Rewards,
Appendix I: Resources,
Appendix II: Interview Questionnaire,
Notes,
Bibliography,
Index,
About the Author,
Trust
Trust must be earned. Fundamentally, people trust each other when they do what they say they will do. All too often trust is lost when there is a difference between what a person says and what they actually do. This can be illustrated in numerous ways.
When you say you will be at work at 8 a.m. and you don't show up until 8:30 a.m., your behavior belies what you say. If you say you will call someone and you don't, people will hesitate to believe you in the future. You say you care; you express concern and say you want to help someone, and then you never follow up. What do you think others will conclude? Any promise you make that is not honored will compromise trust. This may seem simplistic, but people notice and remember these behaviors. They may not say anything, but they will remember.
People make judgments about other people based on small — what many consider to be trivial — things. They also observe nuances of behavior. They perceive someone with "shifty eyes," a "glib tongue," or inconsistent patterns of behavior as not being trustworthy. The ultimate litmus test is based on behavior, not who you know, what you say, or how smart you are.
Competence
Nothing in my personal or business life has even come close to the trust relationship I experienced flying fighters in formation. When I reflect on my military combat experience, there are many lessons that are useful and apply directly to civilian life and business.
The qualifications to be a United States Air Force pilot are rigorous. When you fly fighters, you have to meet all the basic pilot requirements, plus you must be proficient in flying formation. That means you fly a few feet away from another aircraft, sometimes close to the ground, sometimes in the clouds, and sometimes in beautiful blue skies. There is always a lead, and the rest are wingmen. As a wingman, you follow lead, and where lead goes, you go.
The first two critical factors for fighter pilots in formation flying are competence and good judgment. In combat, lack of competence or poor decision-making can result in not only your own demise, but also the death of your wingman.
When I graduated from pilot training I was able to fly very precisely. I consistently pegged the altitude, heading, and airspeed. However, being a good fighter pilot requires a lot more than simple precision flying. After flying a couple of years and having logged 208 combat missions, I was a much better pilot, and had better judgment and high competence. Flying the airplane was almost automatic, and the mission or hitting the target was my primary focus. The airplane became an extension of my own body.
My squadron in Vietnam lost several aircrews and aircraft. On more than one occasion, I was assigned to investigate aircraft losses, and brief the general on what happened and what we could do to avoid the same mistake again by another aircrew. Gradually it became apparent that there were patterns of behavior, some good and some bad, that became habits by the pilots. Some planned very thoroughly, others had a tendency to take high-risk chances, and unfortunately all pilots are not equally gifted with superior skills.
One of the biggest lessons I learned is that usually it is not one mistake that causes you to crash or get shot down. It is multiple things that happen at the same time. It might be a combination of poor weather, not being at your peak physically, and a slip-up in communications. Having an engine problem is usually manageable, but if and when it is combined with all these other problems, you are suddenly at great risk. You may crash, and if you are flying over enemy territory, it may result in getting shot down.
It's exactly the same in business. The good news for businesspeople is that it usually is not your life in the balance, like it would be in combat. Let's look at a simple example. Maybe the economy is plagued with high unemployment, lack of consumer confidence, and confused leadership in Washington, DC. Interest rates are at an all-time low, but new regulations make it almost impossible to get your clients financing. You feel stressed and decide you need a break.
You stay out late dwelling too much on the downward spiraling economy, have that extra glass of wine, and get a slow start in the morning. On the way to the office, because you are rushing and running late, you decide to text someone while you are driving: "I'm on my way."
The reality is that this scenario could turn into a ticket, a car accident, or just getting stuck in heavy traffic. However, the bottom line is you said you would be at work before 8 a.m. It's now 8:30 a.m. and you are late. How would you handle this minor situation? Would you cruise into the office trying to put on a charming smile? What do you say? Do you ignore the fact that you are late? Maybe you are clever, and you make a joke about your car or traffic? How about a very humble apology? But more importantly, you may now have created a complex problem. What is the fundamental problem — the real issue? What has happened to trust?
When you have been in business a long time, several decades in my case, you have the opportunity to observe people in many situations with both good and bad outcomes. This gives the experienced person an advantage. It is the ability to recognize patterns. Let me share a few of the patterns I have seen over the years that relate to the simple story I just told about getting to work a half hour late.
Anyone who is often late has a problem. Obviously, the habit of being late destroys trust. However, the root of the problem may relate to self-concept. Sometimes the person believes his or her time is more valuable than another person's time. But even more telling is how this behavior relates to respect. (Chapter 2 is an in-depth discussion of respect.)
Another issue may be a person's inability to make good decisions. Some people try to pack too much into the time they have. This is commonly known as "being behind the power curve." This expression relates to flying. When you get behind the power curve, your aircraft will lose altitude or stall, no matter how hard you pull back on the stick and try to climb. There simply is not enough power to overcome the weight and drag of the aircraft. The solution in flying is to let up on the stick, push the nose down, and let the aircraft build up speed without the pressure of trying to climb. This goes against natural instinct, especially if you are close to or approaching the ground. In business, when you are caught behind the power curve, you need to take a deep breath, assess the reality of the situation, and reduce your commitments. Ease up on the stick. When people are is not able to manage themselves within time frames, they are considered unreliable. It is a competency issue that will destroy trust.
Good Judgment
Knowing how to make decisions using good judgment is a learned skill. It is valuable to spend time with more experienced people when you are striving to develop the discernment necessary to have good judgment. The simple truth is there is no substitute for experience.
People have a tendency to trust others if they have "been there and done that." That's why the American pioneers would hire a scout to get them across Indian Territory. Today modern business leaders hire mentors and coaches to work with their fast-track managers. The goal is to improve managers' competence at an accelerated rate. Increased understanding will reduce mistakes and build a more complete tool kit for the manager. Mentoring and coaching, when combined with experience, will improve their judgment.
We all make mistakes, and they can be very costly in business. They can also ruin a firm's reputation. However, mistakes can be a great learning tool. Ideally a firm's culture will embrace mistakes and convert them into learning opportunities. It takes good judgment to know how to balance learning from mistakes versus a lack of tolerance for incompetence.
Training is a good way to help people overcome these behavioral shortcomings. Years after my Air Force experience I was introduced to Boots Boothby, a former fighter pilot and retired Air Force Lieutenant Colonel. Boots was a few years ahead of me in Vietnam. After the war, he was commissioned by the Pentagon to analyze why our air combat results had deteriorated when compared to the stellar results we had in Korea.
As a result of his research, he was able to persuade the Air Force to start an aggressor squadron. This group was designed to give pilots actual flying practice against the tactics used by the enemy. You may remember the movie Top Gun. Well, according to Boots, that movie was based on the USAF aggressor squadron he helped create at Nellis Air Force Base in Nevada. When the movie script was completed, the producers were unable to get approval from the USAF generals. The producers then took the script, reworked it, and offered it to the U.S. Navy. They loved it. Smart move by the Navy — it was great public relations and really helped with recruiting.
The United States has dramatically improved air combat results in the several conflicts that have been fought since we were fighting in Southeast Asia. This positive result is directly attributable to the intensive and experiential air combat training provided by both the Air Force and the Navy in their respective programs. Training works in business, too.
Several years ago, Honeywell was having a significant problem in their Western Region. The results were miserable. They were at 70 percent of their forecasted sales. A new regional manager was brought in to turn the situation around. One of my sales reps happened to call on him soon after he arrived in Orange County. She asked me to join her on the second meeting, and he and I hit it off. He was a graduate of the U.S. Air Force Academy and a former fighter pilot.
We worked with his entire sales team for several months. The training included workshops and lesson manuals; back then, we used audio tapes to reinforce the principles. However, the most important parts of the training were going out with the sales reps on sales calls, helping them craft their presentations, and giving them feedback on their performance. In less than eight months, the region was at more than 200 percent of the sales forecast. Intensive and experiential training works. It improves the ability of executives to make good decisions. The improved judgment helps build trust.
Confidentiality
Trust is a primary ingredient required to open a sincere dialogue. When you trust another person, you are more sincere, because you are not inhibited with fear or concern for your own welfare or safety. You are able to be open and honest.
This does not mean that if you trust someone there is no longer a need to think before you speak. There are times when it is best to refrain from full disclosure. In the military, there is a guideline for disclosing information: An individual must have a need to know classified information. That need relates to what is required to successfully accomplish the mission.
One of the easiest ways for a leader to destroy trust is to openly share information that is not necessary to accomplish a mission. You have probably seen this happen with political leaders who have compromised sensitive information. It soon becomes clear that their intent is to enhance their own image or to get re-elected at the expense of others. Trust will also be compromised when someone is sloppy or undisciplined with confidential or sensitive information. When people are loose with confidential or personal information, it causes resentment, anxiety, and a conscious guardedness on the part of employees or political operatives.
Trust is earned when you honor others. The opposite of this is exhibited when people gossip. People that are aware realize that if a person is prone to gossiping about someone to them, the individual will probably not hesitate to also gossip about them when given the opportunity. This will compromise trust.
Connie Chung, an established news reporter, gained notoriety in 1995 when she asked the mother of a politician to whisper what her son, a politician, really thought of another politician. The elderly woman whispered a response in Connie's ear. The answer was then broadcast on the network, and the fiery commentaries started. Trust is very hard to earn and can easily be lost with one fatal mistake.
Self-Discipline
Self-discipline is a basic requirement to building trust. You must be aware of what you are communicating, and why you are sharing or receiving information. Every contact and exchange you have with another person provides an opportunity to build or diminish trust. People are always watching you.
Self-discipline is exercised when you listen well to another person. It has been said that good listening is a platonic form of making love. When you actively listen to someone and you actually hesitate or refrain from speaking, it gives the person talking the joy of expressing him- or herself, as well as the time to reflect on what and how he or she is saying something. Quality listening takes a conversation to a much deeper level. It also tends to remove anxiety and provides calm and comfort to the person talking.
This level of listening needs to be totally nonjudgmental, even in your nonverbal cues. You must remember that there are many ways to communicate besides talking. You can show disdain or judgment by simply raising your eyebrow. That simple reaction will prompt the person you are with to withdraw or possibly even have an emotional reaction.
When my son was in fourth grade, I started developing the habit of spending time with him alone. There was no agenda — just time together. Sometimes we'd go out to breakfast together, I'd teach him woodworking, or we would just take a long car trip — an absolutely wonderful habit that we still enjoy, though he is now approaching 40 years old! One of the most important keys in our times together is to listen and not be judgmental. It is not easy, but you can learn how to do it. My reward is that today my son and I are best friends.
Intention
Watch what a person pays attention to, and you can tell what his or her unconscious intention is. A few years ago I heard a high-ranking official from the Central Intelligence Agency say in a television interview that it is hard for someone to judge another's intention, so we have to work backward from action. This is how the CIA attempts to determine what the intentions of various countries are. It is not easy.
Leaders in organizations have the same dilemma; they are continually striving to decipher the intentions of their people, their competition, and policy makers in government. We all know that actions are much more reliable than words. This is demonstrated every day on television by the politicians trying to persuade people to vote for them over their rival. How often do they do what they say they will do? Do you trust them?
In the process of coaching, it is critical to understand the difference between what people say and what they do. You have to learn how to do the same thing. I would recommend that you spend some high-quality time and effort to become a student of people.
A considerable part of this book will deal with how to relate to people. I will share insights on how to read people as part of the understanding required for effective leadership and communication in Chapter 3.
The CIA is tasked to go to places and do things that are uncomfortable and potentially dangerous. This is the core of how we achieve the requisite intelligence to defend our country and our way of life. You need to approach your business and personal life in the same manner if you wish to achieve great things. You must push your comfort zone.
Open Honesty
Not long ago there was a glut of investment money available. A large venture capital firm purchased an aerospace manufacturing firm in Southern California and brought in a new CEO to fix it. During his second week on the job, a scruffy-looking fellow walked into his office unannounced. This uninhibited visitor had obviously been there before; he was familiar with the office, but he was surprised to see its new occupant. He was looking for the former CEO.
The new CEO asked him who he was. "I'm with XYZ company, and we pick up and get rid of your trash and waste metal."
"How can I help you?" said the new CEO.
"Gee, I'm not sure," he said. "If Joe is gone and you're the new owner, I guess this is for you."
He then handed him a rather large roll of cash.
The new CEO soon found out that this was just the tip of the iceberg; there was more corruption. This firm had acquired many accounts by providing illicit services for clients — in addition to the heavy drinking and parties.
The sale of the company to the venture capital firm had shocked most of the employees. They were all a bit scared, confused, and nervous about the future. To stay with the company, some had done things that compromised good business ethics and sometimes the law. Several had hired relatives in their departments. Of the 15 people in purchasing, 12 of them were related. Evaluations were based on things other than productive performance.
Excerpted from The CEO Code by David Rohlander, Roger Sheety. Copyright © 2013 David Rohlander. Excerpted by permission of Red Wheel/Weiser, LLC.
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