Want to be a great athlete, I mean business leader?

Want to be a great athlete, I mean business leader?

We all admire world-class athletes. I have had the fortune to meet a few and what I have learned is that to be a world-class athlete requires two things, natural ability, and work. I remember the first time I watched a water skier ski a course at 38’ off while riding in the boat, that no matter how hard I worked, I would not reach that level. The second thing is that they work at it relentlessly. What does that mean?

Train – usually six days a week and a day off
Food – what they need for the demands on their body
Sleep well – they recognize deep sleep is required for their bodies to recover.

For more, here is Roger Federer’s workout; however, if we look behind this, what else.

 

Skills

As part of the training, they work on their skills by practicing, Malcolm Gladwell’s 10,000 hours. But it is not just practicing; it is practicing the right thing. How do they know if what they are practicing is correct? They have a coach. Besides, they review their past events and practices with videos or discussions with coaches. Even Maria Konnikova, who decided to become a competitive poker player, used to review every hand of her last tournament with her coach to analyze why she made the decisions. However, that practice also involves practicing interacting with teammates. Joe Montana’s great passes to Jerry Rice didn’t happen because both practiced in isolation. Instead, they practiced while the defensive team tried to stop them.

 

Play against an opponent

If you compete against opponents in your sport, e.g., poker, squash, tennis, rather than yourself, e.g., golf, you need to practice against opponents, mostly better ones. While you can hit perfect tennis balls against a practice wall all day to improve your swing, it won’t help you when you have an opponent who does something unexpected. An opponent changes the entire dynamic of the game. They make their own decisions, which affect the tempo, your positioning, and your mental game. Just ask Garry Kasparov. In his 1997 rematch Game 1 against Big Blue, Big Blue made a move due to a programming error. However, Kasparov didn’t realize it and “concluded that the counterintuitive play must be a sign of superior intelligence.” This caused Kasparov to lose the second game.

 

Learn from others

The great thing about competitive sports is that we can see what our opponents are doing to win and emulate them. As Oscar Wilde said, “Imitation is the sincerest form of flattery that mediocrity can pay to greatness.” I remember John Battleday telling me how all the best water skiers at one time were battling to do a forward flip on a trick ski. However, once one person figured it out, the rest could quickly do it. That happens everywhere. It takes a long time for someone to figure out how to do something new and improved, and it is adapted in now time by the entire community, e.g., the Fosbury Flop.

 

Coaches

Finally, they have coaches and teammates that push them outside their comfort zone so that real development takes place. No matter who we are, it is easy to justify to ourselves why we are not pushing ourselves, but coaches and teammates call B.S. and force us to get and keep going. They help us improve our skills by pointing out our mistakes, asking us questions to understand why we did what we did, and role-playing with us. When Maria Konnikova decided to become a champion poker player, she didn’t know how many cards there were in the deck, but she did know she needed a coach, so she got one. In Roger Federer’s team, he has two tennis coaches, a fitness coach, and his wife, an ex-top tennis player.

A couple of years ago, Vistage speaker Jack Daly said, “Top athletes practice constantly; why don’t businessmen?” That statement hit me then and has stayed with me since.

It appears that for the majority of CEOs and business leaders, once the white smoke rises and they are chosen, there is an assumption, they should have all the answers and not need any more learning or insight from anyone. I have heard this from Private Equity Groups of all people who say, “We hire great people, so they don’t need to spend more on personal development.” Really! I reach peak physical fitness and then stop working out because hey, I am here!

 

As a Vistage Chair, I meet lots of CEOs who I talk to about joining Vistage or a peer group with coaching. The reasons I get for not joining are:

 

Time

Time is the one thing that we cannot buy more of. Not only that, but as we move up the corporate ladder, there are more demands on our time from our company, and then there are demands on our time from family and friends. Since time is fixed, we turn to the adage, “Work on the business, not in the business.” Easier said than done. You start your day, and the emails and calls come in disrupting your plans to do X. Typically, what happens is we deal with “the urgent,” both important and unimportant. But what we struggle to deal with is “the important but not urgent.” How does a peer group help? Well, one day a week, you get away from emails, interruptions, and phone calls. You get time to reflect, present ideas to your peers, and get feedback. That is feedback is not the “right solution,” but rather may be:

  • Asking questions you have not considered.
  • It is offering alternative solutions that achieve the same results.
  • Telling of their experiences at doing the same thing, which either worked or didn’t.

Since the group has no incentive behind helping you other than you will help them, they are often the ones who help you, as Jim Collins says, “Confront the brutal facts.” However, their questions, suggestions, and insight can save you time and money far above what you would have spent otherwise.

 

Cost

Yes, groups and coaches cost money, but they provide a real ROI. If they didn’t, why would so many world-class athletes use them? Although I am a Vistage Chair, I remained a member. Why? Because I need:

  • People who hold me accountable and ensure that I did what I said I would. It is too easy to be the cobbler’s children, providing coaching and not having anyone coach you.
  • A group that I could bounce ideas off because working for myself, I don’t have anyone else on my team.
  • A group that I can bring issues to, without fear or concern, and know they will help me work out a solution and then hold me accountable for doing the work to resolve them.

A response I hear from many CEOs is, “I have a board/friends who do that.”

If you have a board, you probably meet quarterly. While the board gives you input and hold you accountable, it is not a place where you can quickly bring up issues and challenges. Also, a lot happens in three months, and you need someone far more regularly to ensure you keep to your commitments and even help you process the feedback you are receiving.

Your friends are precisely that, friends. They will support you. They are not going to challenge you, tell you your ideas don’t work. If they did, you wouldn’t be friends.

I have had members present their websites, sales pitches, investor pitches, and marketing materials to the group, which is a group of CEOs who are the types of people who purchase their products and services. Everyone who has done it has found the feedback to be incredibly valuable. We get so caught up in our mind and decision process that we need unbiased outside voices to point out what we are missing.

Finally, as the CEO or President of an organization, your daily decisions are usually involving something that costs more than $50,000. The final decision on hiring someone, a new production plan, a new marketing plan, new product development, etc. If the group helps you make just one better decision a year, the return is over 200%.

 

I don’t need a group or coach.

Now, this response, I understand. it was my response when I was initially asked to join Vistage. I was overconfident and sure of my abilities. However, a few years later, I realized I did need the group, coaching, and education that Vistage provided. On reflection, I realized my arrogance and attitude had cost me so much.

Atul Gawande, professor of surgery at Harvard Medical School, has studied the question, “How do we improve in the face of complexity?” His solution: having a good coach to provide a more accurate picture of reality, to instill positive habits of thinking, and to break your actions down and then help build them back up again. Gawande says, “It’s not how good you are now; it’s how good you’re going to be that really matters.” See his TED talk below.

I still need a venue to practice, learn, and be held accountable. Even today, I have a coach outside of Vistage to force me to work on those things that I don’t want to do. It is easy to put off the things we don’t want to do, but again to follow Jim Collins’ advice, those companies that succeed do the 20-mile march.

Finally, today we are in a rapidly changing environment. What worked before may not work again. We need to rethink many products and services, develop new ones, enter new markets, or find new supply sources. Also, it is hard; we are all struggling, even you, the CEO. Where can you go and share that experience? Not with your employees, your investors, your spouse. But you can with a group of peers. That is why today, according to McKinsey, more and more CEOs are turning to Peer Groups for help and support.

If you want to be a much better leader, get a coach, a group, and access learning, to help you do the “hard” work. You will be grateful.

 

Copyright (c) Marc A. Borrelli, 2020

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In 2007 the recession hit, and at the time, a partner and I owned a mergers and acquisition boutique that we had built up over three years. In December 2006 we closed our biggest deal yet and had a full pipeline as we moved into 2007. Then things started drying up, and by Q4, there was nothing. Looking into 2008, we figured a few deals would come back to life, but that was not to be the case.

As my partner and I talked through options to save the company and keep us moving forward, we exhibited some of the five dysfunctions of a team. We discussed some hair-brained ideas, including doing what we had done before, but just with more considerable effort. None of the ideas worked, and looking back; we weren’t thinking things through, looking at new markets, and holding each other accountable. Then we did what most of us do when stressed; we fell back doing the things with which we are most comfortable. My partner distracted himself with an executive Ph.D., and I, who was already distracted with the recent death of my mother, my divorce, and my children’s custody, reverted to doing financial analysis and modeling. These distractions enabled us to convince ourselves that we were swamped, which we were, but were not moving the company forward.

I did manage to get us some consulting work, but It was not until 2011, after joining a Vistage group, that we were back on track. However, looking back at that time, I would have given anything to be in a Vistage group from 2006. I needed a group of Peers to:

  • Challenge my thinking and assumptions;

  • Force me to accept what was happening and look for new opportunities;

  • Push me and hold me accountable for commitments;

  • Make me realize what I was doing was ineffective;

  • Challenge me about my concepts of the future and the status quo; and

  • Make me express my vision and strategy.

Not only that, but a Vistage group through its great speakers provides education on so many fronts that there is always something to learn.

As I reflect on this, it reminds me of a moment in 2004 when a Vistage Chair came to see me and tell me about Vistage. I was an overconfident, arrogant, young business owner who believed he didn’t need “no stinking help!” As I said, fast forward several years, and when a second chair proposed joining Vistage, it was like “Throw me a lifeline, I am drowning.”

Few business owners and CEO invest in themselves because they are successful, don’t realize they have stopped learning, don’t think anyone can understand their business, and don’t have time. Over my career, I have worked across many industries, and with many companies and never found a business model I can’t understand. The most significant issue is the confusion is over the myriad of TLAs ( three-letter acronyms) that a unique to a company and industry.” However, remember, as Marshall Goldsmith said, “What Got You to Here, Won’t Get You to There.” Regarding the lack of time, we all find time for what we deem essential. If learning and improving yourself and your business are a priority, then you can find the time. Furthermore, if your business cannot survive for a day without, you are failing as a leader.

Today we are experiencing a variation of 2008’s crisis. Our success as a leader is determined by how we emerge from the disaster. Many will emerge batted and beaten, some will appear as they went in, on a form of autopilot, and then some will develop more robust and resilient, and in a market leadership position.

To make sure you are among the latter, you need to be a member of a Peers Group, i.e., a Vistage Group:

  • where the members’ only price for helping you succeed, is helping them achieve their success;

  • to challenge your assumptions and prevent hubris;

  • to hold you accountable for your commitments;

  • to provide resources to help you and your organization succeed.

My groups are currently meeting weekly to:

  • Provide Emotional Support and Mental Health – We take time to discuss how we are all doing What is happening in our lives, with our families. This discussion occurs before we get to business.

  • Provide Information and Support – The members are helping each other with finding community banks that will provide PPP funds. Helping refer new business to each other. Advising in the areas that are the key competency to the others.

  • Charting the route forward – questioning each other about what the future holds and how they will be successful in the future. Who to keep and let go to ensure they have the right resources in the future. What clients need attention or cultivation and which need to be “fired” as they are too expensive to keep.

  • Employee Care – How to deal with employee issues from hiring in a virtual world to firing. We are discussing how to bring the workforce back safely and avoid litigation. Other topics are how to compensate them for extra efforts, promote those that have risen to the occasion, and what to do with those in leadership positions who didn’t.

Bart Garvin, Owner, and President of Garvin Industries expressed the benefit of such groups, “Because we’re all human, every business owner or CEO has multiple blind spots. Those blind spots often give us a distorted perception of truth inside our company, and it’s all based on our past experiences. [The group] forces me to step outside my business and be intellectually honest about my blind spots so I can change them.”

Looking back at the Great Recession, Vistage Member Companies outperformed their peers, as shown below. Vistage members grew revenue by 5.8%, while non-Vistage members saw a 9.2% decline. Many ask, “Is it the Chair, the peer advisory, the insight, the outside perspectives, the tools, the resources, the research, the speakers, the decision model……?”  No, it is all of them in a group like Vistage.

Vistage CEO member companies who joined in 2006-2008 and were active members in Feb, 2010. CAGR for Vistage member companies calculated for period covering year prior to joining Vistage through 2009. CAGR for D&B US companies based on 2005 – 2009 revenues, weighted to match Vistage company distribution per year during the same period. All companies had >=$1MM annual revenue, >= 5 employees. Vistage: 1,265 companies. D&B: approximately 1MM US companies.

A peer group is not an expense, but an investment and one, similar to a gym, if you go and use correctly, will pay huge dividends. Do you want to be a company represented on the left or the right of the above graph? Now is the time to get involved and push to make you and your organization stronger. Leave it too long, and those who do will have leapfrogged over you. If you want to learn more, contact me.

 

Copyright (c) 2020, Marc A. Borrelli

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Reflecting on this, (Apologies for unabashed self-promotion as I run Vistage groups), that is what a Vistage group does. As I tell prospective members, we are here to:

  • Challenge your assumptions

  • Prevent your hubris

  • Provide advice; and

  • Have carefrontational conversations – we will tell you, your baby is ugly.

The group is not dependent upon you for a paycheck, or income, or anything other than to know you will help them if they help you. Many prospects tell me, I don’t need such a group, I have friends, a board, customers, or father/father-in-law who does this. However, let’s examine these groups.

 

Friends

Our friends are our Cheerleaders and Supporters. They help us when we are down and tell us how wonderful we are. They are unlikely to have carefrontational conversations with us. If they keep telling us that our baby is ugly and our ideas are wrong, the friendship will not last.

 

Customers

Really!! You will tell your customers that your largest customer has just declared bankruptcy, and you are not sure you have enough cash to last a week! Or, that your product is failing and you are considering the following three plans to fix it, which do they like?

 

Your Board

Your board is the right place, but how often do you meet, and how often can you go to them. Also, can you go to them when you don’t know? Can you bring a personal crisis to them? If you are having a personal crisis as a member did where his wife gave him an ultimatum on their marriage, you know he was not focused on his business, but need a place to talk this through.

 

Your Father/Father-in-Law

Well, one issue you can’t bring to your father or father-in-law is that you want to fire or get rid of him. A couple of other areas that may be difficult are:

  • What if you want a divorce?

  • What to do about getting rid of your sibling?

  • What about killing off the division, product, they started?

 

So where to?

Find a group of people that have no reliance on your for a paycheck or income, and who will help you if you help them, but will challenge you and enter into those confrontational conversations when needed. If not Vistage, then some similar group, but one that will do the above, as Vistage members on average outperform their non-Vistage peers by 2.2x revenue growth, and higher profit margins.

 

© 2019 Marc Borrelli All Rights Reserved

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