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Interpersonal Skills: Vital tools for today's leader.

By Keith Malo, Research Manager and Christ Blauth, Senior Product Manager.

Senior leaders are responsible for translating strategic focus and direction into day-to-day operations. These leaders must possess technical competence and enterprise-specific knowledge. Of greater importance, however, is their ability to work successfully with people.

Often leaders are required to produce results through others, and to accomplish their desired objectives, leaders must be able to manage people. Contemporary executive leadership research suggests that interpersonal skills have become increasingly more important to achieving business results as individuals advance through organizational ranks of responsibility.

STRATEGY TO RESULTS THROUGH PEOPLE

AchieveGlobal believes that people are the key to business success. Until people take action, goals and strategies are nothing but words on a sheet of paper. Results come from people equipped with the appropriate skills and energized to do the right things at the right time. Any seasoned business leader knows that even the most brilliant of strategies will collapse if an organization fails to invigorate, invest in, andsupport the people responsible for implementing it.

To better understand the link between business results and individuals, as well as to illustrate how an organization may produce results inan efficient manner, AchieveGlobal has developed the model "Strategy to Results Through People" :

  • Individual Contributors DELIVER Organisational Results
  • Managers DEVELOP leaders
  • Senior Managers DIRECT Resources to Transform the vision to action
  • Executives DEFINE Strategy

First, strategy owners define the result they want to achieve. Then they ask, "What needs to happen to bring about this result?" The response is the plan of action to bring about the defined end result: the strategy.

Next, senior managers direct the resources and processes to transform that vision into reality. It is critical that this group is successful, as they are the bridge that unites the organization's vision with the organization's producers, resulting in the end product.

Thereafter, it is the responsibility of frontline supervisors and managers to develop the capabilities within the individuals, processes, and systems of the organization to execute and implement the strategy.

Finally, individuals deliver the results through productive behaviors. They take appropriate and timely actions - supported by knowledge, commitment, and ability - and get things done. Once again, organizations get results when individuals are equipped with the appropriate skills and are energized to do the right things at the right time.

People deliver results.

THE IMPORTANCE OF INTERPERSONAL SKILLS

Supported by a vast library of literature and AchieveGlobal's own collective experiences of over 30 years of working with organizations to develop leaders, it is apparent that the most successful organizations have senior leaders with solid interpersonal skills. It makes sense to rely less on technical competencies the further one advances from the delivery line.

Despite intense "management training," many studies over the years have shown that most senior managers are less effective because they don't know how to motivate and coach staff, solve conflicts, or relate to other people. This deficit poses a major challenge to meeting organizational goals, as leaders are required to produce results through others. To realize the desired objectives, these leaders must effectively be able to relate interpersonally.

Today's senior leaders continue to be charged with bridging the gap between strategic goals and daily operations. In a world with constantly changing landscapes and backdrops, this is no simple task.

Moreover, each day leaders are pulled in multiple directions as they address various business issues, implement the objectives of strategy owners, and balance the needs and expectations of their clients, direct reports, and frontline staff. Research clearly shows us that individuals who advance through corporate leadership ranks often do so as a result of their proven commitment to the organization, or because of their mastery of profession-specific or technical skill and not because of their ability as effective people managers. Once promoted, however, these managers are not always successful.

To survive and thrive in today's global workplace, leaders need to be more than book smart and friendly. They need to know how to bring out the best in others. Today's leaders must be equipped with the people skills that will bring optimal efficiency, productivity, and profitability to their organizations.

In a series of focus groups conducted by Achieve- Global with senior and mid-level managers across the United States and the United Kingdom, one director succinctly described his view on the popular system that promotes managers as a "double whammy." Citing the common occurrence of the "best salesperson being promoted to sales manager," he stated: "First you lose your strongest producer on the delivery side and then realize conflicts and challenges on the management side." He further explained that the new managers often lack the necessary human skills to manage conflicts with other managers and the skills to coach and mentor direct reports.

To build on this theme, another senior manager recalled her organization's recent downsizing experience and stated, "It was the only layoff we have had since [incorporating in] 1991. In all honesty, I personally don't believe it was managed as well as it could have [been]. Mostly I think it was due to the newness of it all to the managers." She went on to recall how poorly the managers executed the layoff notifications and how unsuccessfully they managed the morale and productivity declines of the remaining employees.

This manager later disclosed that their managers were not equipped to handle the human sensitivities related to downsizing or stabilizing and reinvigorating the remaining work force. To make matters worse, at a crucial moment in the organization's quest for survival, these managers lacked critical interpersonal skills.

These situations are not unique. In another research study, AchieveGlobal asked respondents to assess the presence of leadership behaviors within their organizations. The carefully recruited online sample of executives, managers, and non-managers across the United States and the United Kingdom replied that the most observed behaviors were more operations related, such as self-motivation, commitment, and competence.

From our most recent primary research2, it is evident that today's global workplace, from the perspective of managers and non-managers alike, continues to be managed by technically competent individuals who lack the required interpersonal skills to bring an organization to greatness.

Historically, it was believed that as one moves to higher levels within an organization the need for interpersonal skills remained relatively unchanged. This previous generation of executive development thought leadership placed greater emphasis on possessing more technical and strategic qualities. However, some have argued that the appropriate balance was a third each of strategic, technical, and leadership or interpersonal skills. Consider the idea that "middle level managers need the same one-third of the skill mix in interpersonal skills. These managers are sandwiched between the lower level managers and the top managers - requiring finely tuned people skills to survive."

The viewpoint has shifted. More recent literature, in particular some works by Stephen J. Zaccaro on the nature of executive leadership, suggests a greater need for interpersonal skills the higher one progresses in organizational level.

Again, as leaders advance within an organization, interpersonal skills become increasingly important to achieving success. Whether it is managing a small group of managers, leading an organization-wide initiative, or working with an external party such as a client or vendor, the ability to communicate a plan successfully and manage the human interactions throughout execution is crucial to accomplishing business objectives.

TOP BUSINESS ISSUES THROUGH THE EYES OF SENIOR LEADERS

To better understand the priorities of the modern-day global workplace, AchieveGlobal conducted a research study to identify the key business issues of senior business leaders in the United States and the United Kingdom. The focus group participants represented a cross-section of industries and company sizes, including government and military, and all were director-level and above in their positions.

The top five global business issues that emerged from this effort were:

  • Surviving in a changing economy and marketplace
  • Operating at more profitable levels
  • Daily delivery of customer service
  • Meeting the demands of owners and stakeholders
  • Maintaining quality control

In a separate AchieveGlobal online survey with business leaders in the United States, four of the top five business issues listed above (exception Meeting the demands of owners and stakeholders) were also top priorities of that sample.

The business climate of the twenty-first century will undoubtedly be classified as a time of great challenge. The future, analysts and opinion leaders report, will bring even more uncertainty as we all adapt to this "new world."

Yet, despite contemporary events, business leaders in the United States and the United Kingdom continue to be focused on core issues that drive business survival and growth. Traditional concerns associated with remaining competitive such as shifting gears in a changing marketplace, attaining greater margins of profit with declining revenues, and the daily delivery of solid customer service, along with maintaining quality control carry on as top concerns for many organizations.

CRITICAL SKILL SETS THROUGH THE EYES OF SENIOR LEADERS

In the business issue research study, AchieveGlobal also asked the participating senior managers to think about critical skill sets or competencies they believed were most needed by themselves and their peers to meet or overcome the challenges of their top business issues. The top five skill sets that emerged from this effort are:

  • Communication Skills
  • Strategic Skills
  • Problem Solving Skills
  • Technical Skills
  • Decision-making skills

In a time with rapidly changing markets, continuous movement of targets, and unforeseen obstacles appearing daily, leaders - now more than ever - need to have the skills necessary to map their way through a maze of issues and dilemmas. The senior managers placed the highest emphasis on the communication skill set and believed many attributes were vital to success, including:

Being perceptive to the audience and tailoring the message accordingly, while simultaneously remaining self-aware of one's own body language and mannerisms in delivering the message.

Listening to what the audience and others have to say. Often, the senior managers suggested, managers will hear, but fail to listen to what peers, direct reports, superiors, and clients are saying, and that can hurt across a number of lines, internally and externally.

Sharing information to empower teams and to build credibility and loyalty. Openly sharing information, such as financial performance, can make a significant difference in creating high performance teams, especially during tentative or challenging times.

Equally important to sharing information, the senior managers repeatedly stressed the need to share with teams and others the "why." The senior managers believed that explaining the reasons why a decision was made (or not made) was critical to further building understanding, credibility, and overall cultures of trust.

Leader communication has long demonstrated itself as a critical factor in worker motivation and performance and has great potential to aid organizations in their quest for committed employees. The need for committed employees is critical due to our shifting business environment, which seems to be placing greater premiums on increased productivity and profitability to achieve competitive advantage.

High levels of employee loyalty have been linked to an estimated 11 percent boost in productivity. Commitment issues also explain more than 34 percent of employee turnover. And this outcome can cost organizations an estimated 100 to 150 percent of the departing worker's annual salary. Furthermore, loyal workers enhance an organization's reputation in the marketplace and this also helps to recruit better employees. Employee commitment is one of the most important measures of leader success. Worker commitment reaps benefits far beyond improved organizational performance.

Strategic skills, the managers believed, were important not only in the visionary sense, but also in a practical and tactical context. Their prevailing opinion was that executives truly set the organizational vision and mission. Senior managers, they believed, have to understand those goals so they are able to develop their own department or division-wide strategies to support the larger organization's objectives. In addition, they believed their role was to continuously remind direct reports and delivery-line staff of their individual roles in meeting overall organizational success.

Daily decisions need to be made and problems resolved. The participating managers strongly believed that decision-making skills and problem-solving skills were also critical for senior managers. And the managers were careful to note that decision making and problem solving are two unique skill sets.

With respect to problem-solving skills, the managers believed that a model problem solver can sift through information overload or a number of issues and emotions to identify the base issue and then develop solutions for potential implementation. This skill, they agreed, requires taking the base problem down to smaller parts for more effective resolution and management. For the most part, it was held that problem solving is more of a team oriented exercise than decision making.

Decision-making skills were considered the ability to choose an option with the best outcomes for all parties, including having the wherewithal to foresee the impact of a decision on another party, directly or indirectly affected. It was agreed that most decisions are made on limited information. Moreover, it was perceived that a good decision maker has the confidence and self-esteem to assume an unpopular stance for the greater good of the organization. One senior manager noted that her organization would call an effective decision maker a "true believer." The prevailing opinion of the managers was that senior managers are more apt to be charged with decision-making responsibilities as the context of the decision may have widespread implications related to policy or strategy.

Research has shown that employee loyalty, morale, productivity, and satisfaction are greatly influenced by a manager's interpersonal skills and technique. To remain competitively viable, it is crucial that senior managers adapt skills that commit to sharing, listening, and directing.

INTERPERSONAL SKILLS AND TODAY'S BUSINESS ENVIRONMENT

So what does this mean?

Consider the business issue, "surviving in a changing economy and marketplace," which may include a period marked by recession-like pressures such as reduced spending, labor reductions, increased costs, lower profits, and contracting and shifting markets.

To survive these conditions, organizations must develop and execute any number of strategic alternatives. For example, some organizations may reposition themselves by promoting their customer service orientation and/or making themselves the lowest cost provider within the market. Other organizations may send senior leaders to the field to articulate a clear strategic vision that rallies the team around a common focus during tentative times - all in an effort to keep employee commitment up and production on track. Some organizations will focus on lowering and controlling the costs of customer and employee retention to weather the storm. Yet others may promote teamwork and secure systems that support the people who interact with customers.

Each of these strategic alternatives comes with significant human considerations and challenges. For example, effectively leveraging the contributions of all team members in light of rightsizing activities requires a number of critical leadership skills.

Likewise, successfully meeting goals, financial or otherwise, in light of constant restructuring and organization-wide changes, requires critical leadership skills that will maintain morale during the tough times, keep operations at peak level in spite of lower headcount, and facilitate the acceptance of change to remain competitive.

Consider another business issue, "maintaining quality control." Customers and shareholders are once again expressing a preference for quality standards and processes such as ISO 9000 registration and Six Sigma.

To respond to this concern, organizations are executing a number of strategic alternatives. For instance, some organizations are attempting to understand and measure the value of quality standards. Others are establishing quality teams for analysis, planning, and implementation. Some organizations are establishing universal corporate values, while others are participating in formal registration or qualification programs and processes.

Once again each of these strategies comes with some human considerations. For example, identifying and recognizing employees who identify ways to build quality at the source or achieve quality goals may be an obstacle for leaders not trained or experienced at delivering recognition.

Additional challenges may arise in terms of performance development - specifically, in building empowered teams to solve problems or developing individuals to be effective problem solvers.

In each of these situations, senior leaders must work with other individuals and support teams. They must exhibit strong interpersonal skills. Remember people deliver results. And to accomplish the objectives, leaders must execute a combination of interpersonal skills that will develop and maintain employee buy-in to the goals and incessantly improve morale and productivity to remain with and ahead of the competition.

CONCLUSION

Regardless of the state of the economy or current world events, today's business leaders continue to be responsible for translating strategies to the tactical level. They must direct the practices and processes that support and develop competent and confident individuals. Development that recognizes and helps senior leaders shape and reinforce desirable individual behaviors translates into measurable organizational advantages such as superior customer service, greater productivity and profitability, and uplifted team morale.