Getting to the Heart of a Great Leadership Team

Preparing for a leadership team meeting can feel like preparing for battle: we arm our defences, prepare our strategies and tactics, and proceed with caution to navigate the tensions and facades that may lay waiting in the room.

No doubt, we operate in a ‘VUCA’ world – a term originated from the US Army to describe conflict conditions – and going into battle is exactly how it can feel as we prepare to meet our fellow leaders to drive our organisations to succeed when volatility is at an all-time high. Expanding regulation and evolving customer expectations means that finding solutions that suit all parties becomes an increasingly complex task. At times, decisions must be made in the face of ambiguity and under intense scrutiny, and change is constant.

Leadership teams operate in the midst of this pressure – having to manoeuvre swiftly, often on the fly and for every decision that hits the mark, there are also those that miss entirely. Is it any wonder that in the very space where teamwork should abound, leadership team meetings can become places where trust is eroded and personal agendas take precedent?

Developing a leadership team that can confidently say that it is built on trust, cohesion and authenticity is a conscious act. Teams need to carve out time to immerse themselves in the work to build the foundations for true debate and engage in constructive conflict. We then reach a stage where all members are committed to a common and agreed outcome and only then can we arrive at decisions that provide the right outcomes for our organisation, customers and staff – and even when those decisions have been made under pressure, they can still hold up under scrutiny.

When a leadership team builds this level of trust and creates true team cohesion, leaders will feel committed to the decisions they make and will then take them confidently to their teams. They will communicate expectations clearly and with conviction, knowing that there is a well-constructed strategy behind them. They will also feel more confident holding people to account: when decisions have undergone team the scrutiny of the team and are robust and logical, the tension of holding someone accountable to that decision disappears. 

Frequently in the work we do at Lysander, we see that old tensions and facades melt away and are replaced with a high energy that allows teams to set direction and engage people in the journey.  True dialogue abounds and work becomes a better place for the leaders – and also for the people they lead.

Flipping Leadership Learning

The digital age brings with it a plethora of opportunity and of course, an avalanche of challenges. Sifting through the sheer volume of information we are constantly bombarded with is in itself, somewhat overwhelming.

For leadership learning, this brings an intense opportunity. For years, leaders have walked away from workshops full of enthusiasm and great intent, but with time and other pressing commitments, have failed to execute the level of change first intended.

Buyer beware! Digital learning is not a silver bullet, and particularly in isolation can have very real limitations. However, when curated and designed well into a blended journey, it can have tangible impact on creating palpable evidence of learning, behavioural shift and most importantly, a translation to increased organisational performance. 

With well-designed blended learning, leaders access carefully curated digital micro-learning where important content is introduced to build knowledge prior to each workshop; and are then immersed more deeply into practice and richer exploration of concepts and real-world issues during workshops. 

Embedding is powerful, as it becomes a journey rather than an event (often varying between six and eighteen months), assignments and application occurs in alignment – with day-to-day and month-to-month responsibilities, and cohorts build strong support networks to fill a somewhat lonely gap that often accompanies being a leader. 

Our clients are witnessing transformational results via these journeys. Increased engagement, lower absenteeism, truly engaged and empowered leaders eager to keep growing and fully committed to personal and team improvement. Makes me so clear on why I’m passionate about what we do…

Social Condition and Strategy: Reimagining Risk after the Royal Commission

In the Australian financial industry, risk has traditionally been measured in terms of its financial elements, but as we observe the fallout of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, what can we learn when chastened leaders confront their own ‘risk blind spots’ to reimagine a more holistic understanding of their organisational strategy – one that manages social risks (relationships, trust, accountability to the community) as much as financial risks, such as market, credit and operations?

The Importance of Managing Social Risk

According to Ian Laughlin, former Deputy Chair at APRA, “institutions have failed to understand and manage relationships with society and their associated social risks (which has) resulted in great reputational damage and loss of social capital for those institutions.”

He suggests that ‘relationships and associated risks’ need to be understood and taken seriously by boards and leaders of financial institutions, and that the associated ‘social condition’ of an organisation is as important as the financial condition to its success and sustainability. “Manage and mitigate ‘social risk’ as seriously as financial risk”, is the clear warning, and responsive, responsible businesses are listening.

It is a challenging view, where leaders have overlooked critical social risk factors and must now look inwards at cultural and structural conditions that allow these conditions to flourish unchecked. It is a tough reality that when organisations don’t behave in line with the values they espouse. If they become blind to community expectations, overlook poor behaviour without thought of customer perception, or expose themselves to “revenge risk” (the term Laughlin uses to describe angry customers airing their complaints via social media), they expose themselves to the same level of damage and disruption as any financial risk they should be responsible for mitigating.

Internally, social risk includes critical ‘people’ measures such as employee engagement, which, when measured as poor, can indicate serious issues such as lack of trust in leadership and confusion around organisational values, behaviours and strategy – issues that will undoubtedly show up in poor customer satisfaction scores and falling brand loyalty.

What if leaders started to understand that social risk does exist in these less-measured but equally potent forms, and it is their job to address it? The Haynes Report, handed down after the Royal Commission, starkly spelt out what can leaders can expect if they underestimate or ignore social risk – fines, reputational damage, even gaol terms, let alone the damage they have caused their customers – the very people they are meant to be serving.

The work that needs to be done by leaders isn’t to double-down on existing risk mitigation practices, nor to abandon them – but instead to develop leadership awareness and capabilities to create and embed ‘speak-up’ cultures, where unethical, destructive and potentially illegal organisational norms can be challenged and replaced by a more human-centred approach to culture and strategy. This approach still requires leaders to inspire and support their team to achieve business strategy, but in this new scenario, they do so without condoning or ignoring a culture where financial risk is managed, but equally-potent social risk is not.

Banking Royal Commission: Our case study

Senior leaders working in one of the Big Four banks had begun to recognise the importance of culture in the early days of the Royal Commission. Whilst the terms social risk and social condition were not then widely used, these leaders had already understood the importance of culture in achieving strong financial conditions and social conditions.

Lysander partnered with the organisation to design a Culture, Leadership and Collaboration program that would develop and support leaders to co-design, communicate and embed deep cultural change that was so urgently needed. The aspirations of the program were clear: build stronger internal and external relationships, enhance collaboration skills amongst and between teams, identify clear accountabilities around behaviour, and create an explicitly safe speak up culture, where unethical, non-compliant and non-inclusive practices could be called out.

They may not have used the term ‘social risk’ back then, but by initiating this Culture, Leadership and Collaboration program, the leaders had recognised the social risks that a ‘business as usual’ approach was exposing them to and were committing themselves to strengthening the social condition of the business to benefit the organisation as a whole.

Lysander took the leadership team through a culture strategy process at the beginning of the program to establish vulnerability, trust and team cohesion – creating a common language and set of ‘above and below-the-line’ behaviours to form a success map to roll out across the business. Ongoing leadership development and coaching was crucial to equip leaders to engage their managers, who they then coached to drive and embed transformation throughout their teams. Interactive team culture workshops at the start of the program allowed everyone to share their experiences and ideas around existing culture, and built team cohesion – two significant factors in the success of the program. Finally, a series of coaching and collaboration workshops were run for every team to build collaboration and coaching skills that enabled everyone in the business to build productive, authentic relationships with all their customers and partners.

The Culture, Leadership and Collaboration program ran during a time of upheaval, uncertainty and public shaming, yet the results have been exceptional, with the business even winning an important industry award. The work is ongoing, but the momentum is there and people speak of feeling energised to continue the transformation.

The Haynes Report placed a strong emphasis on the need for financial institutions to take seriously the powerful role that organisational culture has on their social condition, and in turn, it’s role in mitigating social risk. Lysander supported the organisation in this case study to cohesively and successfully understand their levels of social risk and then commit themselves to addressing all the cultural issues that contributed to their appearance in the Royal Commission in the first place. 

For leaders and boards managing the demands of shareholders, and customers now hyper-aware of brand reputation – reimagining organisational risk strategy to prioritise social risk as much as financial risk, will inspire a new way of doing business – one that is more sustainable, human-centred and will result in organisations being better equipped to thrive.

You can hear more from Janet as she presents on the impact leadership has on creating positive culture and wellbeing at the RMIA Conference in Melbourne in November 2019. 

The Grit Behind Cultural Transformation

As we rest in the shadow of the Royal Commission, organisations are facing a substantial dilemma as the some of the darkest intricacies, challenges and resulting impacts of organisational dynamics are realised publicly. 

Illumination of cultures festering, where well-intentioned people are not comfortable to speak up; are encouraged to focus on short term rather than strategic outcomes; fall into group think on important issues; accept problems as ‘the way things are’ and are not equipped on many fronts to truly put the customer first, has been an uncomfortable thing to bear witness to. 

The side effects have been shouted from the rooftops and while there is an eloquent simplicity to this problem, there is a profound complexity to unraveling the ways that have come to exist over many years, and re-knitting a new pathway that creates the foundation needed for people and customer experience to flourish.

This requires courageous leadership from the top to accept and own the problem. The work to create the change required is intensive, and yet, incredibly rewarding. Building cohesion and clarity are the building blocks for this. Building trust so teams are able to talk about the real issues with confidence and respect, so decisions are made to focus energy on doing the things that will really make the most difference. While this sounds simple, it requires effort and dedication to achieve.

Organisations, businesses and teams who do commit to immersing into this in a vulnerable, open and authentic way definitely have hard work in front of them, but commence on a journey leading to remarkable transformation – both personally and then more gradually, but also often more spectacularly, at a whole of business level. 

This transformation takes time, commitment and grit, but brings with it the most profound personal satisfaction for those involved, as well as tangible organisational benefits. Financial performance, client satisfaction and staff engagement are all indicators strongly realised by our clients across multiple industries when the commitment is made, and the journey undertaken with vigour and stamina. 

Seeing the problem is the first step. Unfortunately, with seeing this, there are also many other conflicting demands and seemingly critical priorities. Having the conviction to step into it and do more than scratch the surface – to fully commit to the hard work required to transform is the only thing that will allow organisations to properly realise these benefits. This takes time and patience but with this will bring profound rewards.

At Lysander we develop leaders and culture, and help organisations to transform. Our team is passionate about partnering with clients to deliver positive, sustained change in their organisations. To learn more about our client-tailored services, send us a message and we’ll be sure to be in touch.

Invisible Rules That Keep Us Silent

Speaking up in an organisation when something isn’t working: sounds simple right?

The need for this is at the core of what is falling out all over the place as people search to understand the important takeaways from the Royal Commission. And yet, something that is apparently so simple, is also so elusive to many organisations. 

Culture and power in organisations are the invisible rules that frequently prevent people from being comfortable or merely prepared to speak up if something is not working – and when this happens, organisations can no longer be great. Things fall through the cracks, decisions are made without the necessary lens over it to check the implications - on people, customers, for the industry, and certainly for the company as a whole.

We can tell people in our business repeatedly that we want them to speak up – but it’s only when leaders understand the hidden levers – the behaviours and the underlying power relationships that drive actions in an organisation - that they will truly be poised to hear the very important voices of their teams and have an authentic opportunity to be the best version of that business that they can possibly be.

We work with organisations across a range of sectors including financial and health who are ready to transform their culture to one where they are ready to hear those voices. If this sounds valuable to your leadership team, contact us and we’ll be in touch.

Have you observed rules around when it is and isn’t okay to speak out? How do you deconstruct those rules in your business? What happens when we do this?