The CEO Code

Create a Great Company and Inspire People to Greatness with Practical Advice from an Experienced Executive

David Rohlander

• Publisher: Career Press
• Year: 2013
• Print ISBN: 9781601632531
• eBook ISBN: 9781601635389
• Topic: Business
• Subtopic: Management
• Index: Business

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:

Practical advice for dealing with people.

Proven strategies to increase business profits and growth.

Unique and simple solutions to complex problems.

The secret to authentic communication.

PART I

COMMUNICATION

Effective communication takes more than talent. It requires trust, respect, understanding, empathy, and resolution. It is an art. Many elements are under the broad umbrella we call communication. How a leader needs to communicate with his or her people is our focus. Communication is by definition a two-way process, a form of conversation or dialogue.

Popular opinion has a tendency to think communication is mostly about talking and writing, or what we might call “broadcasting.” This is a very limiting perspective. Broadcast brings to mind monikers like: The Great Communicator or The Consummate Speaker, and individuals such as Franklin D. Roosevelt, Ronald Reagan, or Martin Luther King.

Half or more of the communication equation is the “receiving” of information. Being able to read or understand what others are trying to say or relate takes effort. We need to connect with people on a personal basis. Standing on a podium or using a teleprompter or microphone does not help develop relationships or dialogue.

Dan, VP of sales and marketing, was encouraged to get some coaching by his CEO. This VP was under a lot of pressure to produce, was extremely overweight, and yet was very talented. The boss didn’t want to lose him. As is customary, the CEO shared several concerns with me before my first meeting with the VP.

Dan and I met for our first meeting in a small conference room. It was an opportunity to get acquainted, share expectations, and agree on a format and agenda. Dan was very charming, clearly intelligent, and focused on doing a stellar job at the company. After sharing a brief introduction and overview I started to ask a few questions, simple at first: Where did you go to school, what jobs have you had, how about your goals?

He was very open and gregarious. He told me about his background, his past job experiences, and really got animated when he started telling me about his kids. The conversation went on for a good half hour and I was mainly in listener mode.

Finally there was a comfortable pause. I looked him straight in the eye, and very slowly and softly asked a simple question: “Dan, are you married?” There was silence. He blinked, turned his head and his eyes, and then looked down. I could see tension building in his neck. After a bit, I gently said, “You haven’t mentioned a wife.”

At this point, he broke down. His eyes welled up with tears and he said, “I didn’t want to go there. We are having some real serious problems.”

What Dan did not want to talk about was his most significant, urgent, and emotional issue.

It is impossible not to communicate. Even when you choose to be silent, you are communicating. One of the keys to effective listening is to be tuned to what is not being said. This often is more revealing than what is said.

There are many obvious techniques to use while broadcasting or receiving. There are also many nuances to learn. Communication is absolutely critical for you to master for success in your personal life and your professional life. In the next five chapters we will delve deeply into how you can become a great communicator. We’re talking about a lot more than just being a “good talker.”

Chapter 1

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 consci...

Table of contents

• Cover Page
• Title Page
• Copyright Page
• Dedication
• Contents
• Introduction: How Do People Really Change?
• Part I: Communication
• Part II: Execution
• Part III: Operations
• Appendix I: Resources
• Appendix II: Interview Questionnaire
• Notes
• Bibliography
• Index
• About the Author