The Complete Manager

By N Meenakshi, Associate Professor in Marketing at Goa Institute of Management

Yes, the title of this article does suggest that there are incomplete ones. Managers seek sustained high performance in the face of ever-increasing pressure and rapid changes in the environment. Most approaches to sustained high performance connects it primarily with cognitive capacity. However, a complete, successful approach to sustained high performance must consider a person as a whole – it must address the body, the emotions, the mind, and the spirit.

THE BODY

The body is the fundamental source of energy. The key to increasing physical strength is the creation of balanced work-rest ratios. For example, in weightlifting, a muscle is stressed to the point where its fibers start to break down. And then the muscle is allowed to rest for at least 48 hours. The muscle not only heals, but it also grows stronger. But, if an athlete persists in stressing the muscle without rest, his muscle will suffer acute and chronic damage. Conversely, if the muscle is not stressed, it will become weak. In both cases, the culprit is not stress – it is the failure to oscillate between stress and recovery.

Rituals play a strong role in recovery. For example, the best tennis players use precise recovery rituals in the 15 or 20 seconds between points. Their between-point rituals include concentrating on the strings of their rackets to avoid distraction, assuming a confident posture, and visualizing how they want the next point to play out. These rituals have strong physiological effects on players: their heart rate rises rapidly during play, but drops as much as 15 p.c. to 20 p.c. between points. The mental and emotional effects of precise between-points rituals are also significant. They allow players to avoid negative feelings, focus their minds, and prepare for the next point. In contrast, players who lack between-point rituals expend too much energy without recovery. Regardless of their talent or level of fitness, these players become more vulnerable to frustration and loss of concentration, and are likely to choke under pressure.

Managers push themselves too hard mentally and emotionally, but too little physically. They do not realize that physical stress is a source not just of greater endurance, but also of mental and emotional recovery.

EMOTIONS

Positive emotions drive high performance, while negative emotions drain energy. Negative emotions like frustration, impatience, anger, fear, resentment, and sadness increase heart rate and blood pressure, increase muscle tension, constrict vision, and ultimately cripple performance. For example, a manager worked long hours and traveled frequently. He was a critical boss, whose frustration and impatience sometimes boiled over into angry tirades. A regular workout regimen built his endurance and gave him a way to burn off tension. He also developed a precise five-step ritual to contain his negative emotions whenever they threatened to erupt. First, he became more aware of signals from his body that he was going to explode – a physical tension, a racing heart, tightness in his chest. When he felt those sensations rise, he closed his eyes and took several deep breaths. He then consciously relaxed the muscles in his face, and made an effort to soften his voice and speak more slowly. And then he tried to put himself in the shoes of the person who was going to be the target of his anger. Finally, he focused on framing his response in positive language. Initially, he felt awkward practicing the ritual, and often went back to his old ways. But, after a few weeks, the ritual became automatic.

There are a number of other rituals that help to offset feelings of stress and restore positive energy. For instance, music has powerful physiological and emotional effects.

Body language also affects emotions. In an experiment, actors were asked to portray anger and then were subjected to many physiological tests, including heart rate, blood pressure, core temperature, galvanic skin pressure, and hormone levels. Next, the actors were exposed to a situation that made them genuinely angry, and the same measurements were taken. There were virtually no differences in the two measurements. It means that effective acting produces the same physiology that real emotions do. Therefore, if a manager carries himself confidently, he will start to feel confident, even in highly stressful situations.

Close relationship is the most powerful means for promoting positive emotions and effective recovery. Spending time with family and friends induces a profound sense of security and safety. Such feelings are closely associated with sustained high performance. By spending more time with their families and friends and setting clear boundaries between work and home, managers will be reenergized and they will perform better at work.

THE MIND

The idea is to increase managers’ cognitive capacities, most notably their focus, time management, and critical-thinking skills. Focus means concentrating energy in the pursuit of a goal. Anything that interferes with focus dissipates energy. Meditation helps to train attention and promote recovery. An adequate meditation technique involves sitting quietly and breathing deeply, repeating a word each time a breath is taken, or just counting each exhalation. Meditation quiets the mind, the emotions, and the body, promoting energy recovery. Meditation slows brain wave activity and stimulates a shift in mental activity from the left hemisphere of the brain to the right. People so often find solutions to vexing problems when they are doing something ‘mindless’, such as walking, working in the garden, or singing in the shower. This happens due to mental oscillation, i.e. mental activity shifts from the left hemisphere of the brain to the right. Therefore, managers must learn to align their work with the body’s need for breaks every 90 to 120 minutes by alternating periods of stress and recovery. For example, an investment banker used to working endless hours without breaks, built a set of rituals that ensured regular recovery. Once in the morning and again in the afternoon, he did deep-breathing exercises for at least 15 minutes. At lunch, he walked outdoors for 15 minutes. He took fruit and water breaks every 90 minutes. He worked out six times a week after work. In the evenings, he often left his office early to spend more time with his family. At home, he and his wife made a pact never to talk business. He decided not to work on weekends. He instituted a monthly getaway routine with his wife. The result: he was far more productive, and the quality of his thought process measurably improved. He was doing more on the big things at work and not getting bogged down by detail.

Rituals that encourage positive thinking also enable sustained high performance. People have to create specific mental rituals that allow them to move from peaks of concentration into valleys of relaxation. For example, a golfer sharpened his concentration as he walked onto the tee and steadily intensified his concentration until he hit his drive, but descended into a valley of relaxation as he left the tee through casual conversations with fellow competitors. Visualization also produces positive energy. Visualization does more than produce a vague feeling of optimism and well-being – it reprograms the neutral circuitry of the brain, directly improving performance. It builds mental muscles, increasing strength, endurance, and flexibility.

THE SPIRIT

Spiritual capacity is the energy that is unleashed when a person taps into his deepest values, and when he discovers a strong sense of purpose. Spiritual capacity serves as a sustenance in the face of adversity and is a powerful source of motivation, focus, determination, and resilience. For example, a female executive tried unsuccessfully to quit smoking, blaming it on a lack of self-discipline. Smoking took a visible toll on her health and her productivity at work. But she quit smoking when she became pregnant and did not touch a cigarette until the day her child was born. Quitting was easy when she connected the impact of smoking to the health of her unborn child – a deeper purpose. She started smoking the day she was out of the hospital. Understanding cognitively that smoking was unhealthy, feeling guilty about it on an emotional level, and even experiencing its negative effects physically were insufficient motivations to change her behavior.

Making connections to one’s deepest values requires a person to regularly step out of the daily chores of deadlines and obligations to take time for reflection. Managers keep doing whatever seems immediately pressing while losing sight of the bigger picture. Rituals that give people the opportunity to pause and look inside include meditation, journal writing, prayer, and service to others. Each of these activities also serve as a source of recovery, i.e. to break the linearity of relentless goal-oriented activity.

A complete manager is akin to an athlete giving his best performance. The ability to manage all four aspects of the self – body, emotions, mind, and spirit – will aid in optimizing performance.

Do we really need a ‘charismatic’ leader?

By N Meenakshi, Associate Professor in Marketing at Goa Institute of Management

Charisma is a set of personal qualities that inspire awe and submission in others. A successful leader is often described as charismatic. Lee Iacocca, Jack Welch, Steve Jobs are considered charismatic leaders. A board of directors will look for charismatic leaders to lead their companies. But charisma was not always an essential qualification for a leader. In the era of managerial capitalism that lasted till the 1980s, a CEO was an organization man who worked his way up the ranks. He was hardly known outside his company. In the 1980s, due to long-standing decline in corporate profits, investors began to label senior managers as insulated, self-interested elite, and ill-prepared to face the challenges of global competition and rapid technological changes. In the new era of investor capitalism, investors started looking for CEOs who could shake things up and put an end to business as usual. At around the same time, the public began to invest in companies, and the mass media expanded coverage of corporate doings and business personalities to serve the public’s appetite for business news. Lee Iococca is probably the first charismatic business leader. The turnaround of Chrysler was attributed to his inspirational leadership, and he became a celebrity. Steve Jobs gave a contemporary spin to inspirational leadership. He created a corporate culture in which employees were supposed to work ceaselessly, uncomplainingly, and for low pay not just to produce and sell a product but to realize the vision of the messianic leader.

The charismatic leader has exaggerated self-importance, is a celebrity, and is either an entrepreneurial founder or has been brought into the company from outside. He is not a predictable organization man. He offers a vision of a radically different future and attracts and motivates followers for a journey to the new future. He uses dialogue to inspire employees to work harder, and to gain the confidence of investors, analysts, and business press. He has the magical powers to bring a dying company back into life and to vanquish much larger, more powerful competitors.

THE TRAP

The fervent and irrational faith in the power of charismatic leaders is part of human nature. It is fostered by tales of heroic figures who rescue people from danger. Major events are easier to understand when people can attribute them to the actions of prominent individuals rather than having to consider the interplay of social, economic, and other impersonal forces that shape and constrain even the most heroic individual efforts. People overestimate the impact of individuals – presidents run countries, finance ministers run economies, generals win wars, and so on.

There is no conclusive evidence linking leadership to organizational performance. Various external and internal constraints inhibit an executive’s ability to affect a company’s performance – 30 p.c. to 45 p.c. of performance can be attributed to industry effects and 10 p.c. to 20 p.c. to year-to-year economic changes. When a CEO is considered responsible for a company’s success, he is also held responsible for the company’s failure. When a company fails, directors automatically blame the incumbent CEO and fire him and start looking for a savior, i.e., a charismatic leader. A struggling company often misdiagnoses its problems by attributing them all to the CEO, and then pin its hopes on a charismatic successor. For example, in the early 1990s, Kodak’s then CEO, Kay Whitemore, was intensely criticized for failing to improve the company’s performance. He was fired in August 1993, and Kodak hired George Fisher, who was then CEO of Motorola, as its first outside CEO. Fisher was greeted with much fanfare and high hopes. Fisher was credited with Motorola’s strong performance during the tenure. But, analysis shows that much of the company’s success was due to increased competition in local cellular markets and lower retail prices which led to a more rapid adoption of Motorola’s phones and related technology. If Motorola’s successes were largely the result of broad trends, so were Kodak’s failings. Fisher failed to recognize that Kodak’s fundamental problem was that it missed the shift from chemical to digital photography, which had little to do with company’s executive leadership. Kodak’s fortunes continued to decline even after many acquisitions and divestitures, investment in internet technologies and digital photography, and a wholesale turnover of executives. Since the incumbent CEO was not responsible for the failings of the company, the successor CEO could not reverse its fortune. For all the excitement and optimism that surrounds charismatic CEOs, the fact remains that the factors affecting corporate performance are varied, highly complex, and definitely beyond the power of even the most charismatic leader to influence single-handedly.

IN REALITY

When a company fails, its directors fire the incumbent CEO even if the company’s failure cannot be attributed to him. The directors look for a charismatic CEO who will take the company in a new direction, but they also play it safe because they cannot be certain if a CEO has the charisma to lead the failing company out of trouble. Their initial pool of candidates is narrow and consists of top executives they already know. From this narrow pool, they focus on candidates who will be acceptable to outsiders. The result is that the selected CEO is already of the rank of CEO or president and comes from high-performing, high-status companies. For example, a failing company chose a particular CEO largely because he had worked with Jack Welch in GE. The directors did not attempt to make any connection between the CEO’s performance at GE and the problems facing the company. In the directors’ eyes, the CEO has been imbued with charisma simply through his association with GE and Jack Welch.

The example illustrates an important point: charisma is assumed to be inherent, i.e., it is not borrowed from other people or conferred by the social milieu. But in reality, charisma is more a social product than an individual trait. In primitive societies, leaders wore special clothing, masks, and ornaments that conferred on them a larger-than-life appearance that helped create perceptions of their charisma. In monarchies, kings and queens assume charisma through heritage, and buttress it with symbols, such as palaces, robes, and crowns. In business, CEOs assume charisma through large offices, private planes, expensive suits, and other trappings of corporate power.

It is believed that outsiders are most qualified to lead. The person coming from outside has a clear mandate, particularly if he is coming into a failing company. He is not beholden to anyone. In contrast, there is so much baggage and so many constraints on the internally promoted CEO. There are so many people at various levels in the organization who expect that he will protect their interests. He has been part of the process of building the business and its culture, and it is difficult to imagine an internal candidate getting to the top of the system and systematically destroying the existing business and its culture. This belief in the superiority of the outsider CEO further constraints directors in hiring CEOs. The belief that complex organizational problems can be solved by a charismatic outsider CEO leads directors to ignore the process of finding a CEO who has the experience of handling the type of problems the company is facing. They choose the bold outsider, ignoring better candidates in the process. For example, two banks merged, and the merged entity was stumbling. The bank’s problems stemmed from the difficulty of blending the operations and cultures of the two banks. The incumbent CEO was fired, and the directors settled on a superstar executive who had helped built a banking empire. He had spent his entire career as a deal maker on the investment side of financial services. He had all the mental quickness and the smartness to succeed as a deal maker, but these were not the traits traditionally valued in commercial and retail banking. He did not have any experience in retail banking and credit card operations, which were the bank’s largest businesses. And his hot temper was ill-suited to bridge the difference between freewheeling, entrepreneurial culture of one of the merged bank and the more traditional banking culture of the other merged bank.

DESTROYING VALUE

The cult of the outsider CEO is so strong that even when an insider is elevated to the CEO post, he is often the person who has assumed the traits of an outsider CEO. Jack Welch and Jacques Nasser were both career employees, but they became charismatic CEOs because they showed a willingness to do what outsiders CEOs do: dismantle parts of their companies and convert people to their cause. Charismatic leaders, whether they are insiders or outsiders, destabilize their companies. In some cases, as with GE, the destabilization brings much-needed changes and results in a more robust company. In other cases, as with Ford, the destabilization does more harm than good.

Destabilization can be dangerous. First, the charismatic leader creates a system of authority based on the power of an individual, which is inherently unstable. The successor CEO is compared to the predecessor charismatic CEO, and the successor CEO is tempted to adopt the ways of his predecessor. Jeffrey Immelt had to work hard to avoid comparison with Jack Welch and to remain true to his own identity. Second, the charismatic leader stands in opposition to the past and in opposition to tradition. He proclaims the company’s destiny in the form of a seductive vision and demands that all believe in the vision. He initiates counter cultural policies. For example, Jacques Nasser destabilized Ford by insisting on a forced-curve performance system for employees. Third, the charismatic leader induces a blind obedience in his followers. He exploits the irrational desires of his followers to surrender to a superior being. He creates a ‘yes-man culture’. He rejects limits to his scope and authority. He does not accept checks on his power, and dismisses the rules and norms that apply to others. Enron’s Jeff Skilling persuaded the board of directors to agree to suspend its code of ethics to allow top managers to participate in the off-balance-sheet partnerships.

Most charismatic leaders cripple the organizations they are entrusted to lead. They are brought in as saviors, but they suck the energy and purpose of their organizations. The faith in charismatic leaders is often exaggerated to the detriment of the organization.

Goa Institute of Management Announces Program on People Management Skills

Goa Institute of Management (GIM) is holding an Executive Learning Solutions Program, on ‘People Management Skills for Business Managers’ between 10 and 11 June 2016 at its campus in Sanquelim. The Program focuses on developing a comprehensive understanding of talent and team management and is targeted at Business Managers with people management responsibilities and 3-8 years of experience.

The Program aims to address a modern business manager’s needs in terms of ability to bond, nurture and inspire the teams towards performance excellence since these are critical success factors. The Program will help the participants gain an understanding of the People Management Life Cycle, the roles they need to perform in this cycle, gauging the pulse of teams and inspiring talent.

Elaborating on the utility of the Program, Dr. Venkatesh Naga, Professor at Goa Institute of Management, who is the program facilitator, said “People Management is the most critical and toughest aspect that determines the success or otherwise for a manager. Managers tend to learn the techniques by trial and error methods. Sometimes they realize the need to improve the skills, but continue their life due to work pressure, there by sub-optimizing their performance.”

Further details of the Program and enrollment guidelines are available at http://mdp.gim.ac.in/program.php?id=15

About GIM’s Executive Learning Solutions:

The Executive Learning Solutions programs at GIM provide intense and transformative learning experience designed to fit the constraints of seasoned mid-career executives. The programs will equip the participants with the various critical capabilities to succeed in an ever-changing global business environment.The different programs are designed to create value for participants from a diverse background. The participant’s diversity in such open programs contribute significantly to cross learning and provides a platform to network beyond their own organization.The various programs have been developed by keeping in mind the various value propositions that each executive brings along with himself. The courses try to leverage on the experience of the participants, and are completely aligned with the latest developments in the industry. The programs focus on experience sharing and help an individual to gain an overall perspective for making critical decisions integrating their functional knowledge and general management approaches.

Inception 2016 at GIM turns out to be a musical extravaganza

Goa Institute of Management recently organized Inception 2016, an enthralling musical event that brought together exciting talents on one stage. What started as a musical evening 5 years ago has grown into an Annual Music Summit, which students look forward to. This year the event was held on the Sanquelim campus of the institute on the 6^th of February. It was, to say the least, a night to remember.

Over the years, several big names from the world of music have made their presence felt at the Inception event, including Dill Vineet, Manmohan Raj, Welsey Aaron, Mohd, Arif Ali, Chaitanya, and Sangeet Haldipur. New names were added to the list this year, contributing to the magical evening that hit all the right notes with the audience.

Proceedings began with the ceremonial lighting of the lamp, and a dance performance set the ambience for activities to follow. Pitch Perfect, the solo singing competition, has remained one of the major highlights of Inception and this year was no different, as it led to an intense competition on stage. Finally, it was Abhishek Sharma, who walked away with the top prize. Nishad Matonkar and Gavin Dsouza were the first and second runners–up, respectively.

The Group Dance performance had the audience grooving before Chuck Gopal, aka Deepak Gopalakrishnan, took to the stage for his stand-up comedy act. He was on campus for a second year in a row and presented his unique brand of humor that had the audience in splits throughout the performance. His gags about B Schools, politics and various other topics were well-received by the appreciative gathering.

They were in for another treat as the War of Bands commenced. Within Ceres, Trinity Apocalypse, War Within, GKK Band, Live wire and Placement Cell were the bands that fought for the honours and a cash prize of Rs. 20,000. Within Ceres bagged the top prize and, of course, bragging rights. War Within was the first runner-up and received a cash prize of Rs. 10,000. All the bands had made a lasting impression on the memorable evening.

As the competitions ended, it was time for the headlining act by the Hyderabad-based band – Akshar. The Indie Rock band, known for renditions of some of the classics of Indian music, made a huge impact on the audience and was a fitting finale to the evening. GIM had also organized food counters for the audience to devour. But the music they had heard was definitely food for their soul.