Peer Advantage and Connections

Yesterday, I spoke to an audience of CEOs and business leaders at the Vistage Executive Summit in Washington, DC. I was doubly excited about having been invited because I not only knew it would be a great event, but I’d also get to visit my youngest daughter who lives in DC. I arrived a day early where we met for a lovely lunch, enjoyed a trip to the Smithsonian’s Renwick Gallery, and took in a Nationals game. For the purpose of this post, I’d like to focus on the Renwick Gallery.

The featured exhibit is called Connections, and I was struck by the first paragraph of its description painted on a wall:

“The Internet has fundamentally transformed the way we think over the last quarter century. We now see the world through an infinite web of “hyperlinked” ideas. We have information at our fingertips like never before and our attention has shifted from the data-driven to the interpretive, seeking out patterns and cultivating relationships. Connecting is at the heart of modern life, and the connections we make whether factual or fantastic, tell us stories about ourselves and the world among us.”

I was also intrigued by a quote I discovered later during our tour of the exhibit:

“Everything eventually connects – people, ideas, objects. The quality of the connections is the key to quality per se.” – Charles Eames

When we talk of peer advantage, we mean people connections with individuals and in group settings. I incorporated what I saw at the Renwick Gallery into my presentation to the CEOs and business leaders at the event the following day. As you might imagine, it added a certain weight – a special brand of gravity to the value of the people we surround ourselves with and how and why they matter so much. It’s these connections that so often either lift us up, drag us down, or hold us at bay. Food for thought for the weekend, as you are hopefully spending time with those whom personally lift you up the most.

*The featured image is from the exhibit – a woven sculpture by Janet Echelman. I invite you to read its description here and check out her amazing work by clicking on her name.

HBR Takes On Why Leadership Training Fails

In the October issue of Harvard Business Review, Michael Beer, Magnus Finnström and Derek Schrader wrote a piece titled Why Leadership Training Fails — and What to Do About It. I’d like to share the comment I left on HBR’s site and expand upon it a bit.

I really enjoyed the article! It offers solid evidence for a phenomenon I first described in 2011 as Trickle-Down Leadernomics: “Episodic training designed to stimulate positive behavioral changes, aimed to help executives be better leaders who inspire commitment rather than mere compliance, resulting in a more productive work environment and happier employees who, ultimately, will improve the company’s bottom-line somewhere down the road.”

Doesn’t sound very promising when you put it that way, does it? That’s because, as you all pointed out so eloquently, it isn’t.

Trickle-Down Leadernomics isn’t just troublesome because of the “trickle-down” part; worse yet, it tends to function as a linear process rather than a reinforcing one. Meaning, if you can’t really measure the impact of the executive development program to the organization, it won’t serve to inspire future investments in learning. And without a mechanism to implement learning, such as the cross-functional work teams that were used by MEPD, it will never become evident in the organization in a meaningful way.

With myriad challenges facing today’s leaders, it will take more than gravity to assure that the substantial investments being made in leadership development are positively impacting the bottom line. The problem has to be addressed horizontally, rather than vertically. This is where I believe cross-functional teams of peers working together is at least one good answer. Thanks for shining a bright light on this important topic!

The real challenge here is that executives attend leadership training programs, acquire a few new tools, learn some interesting concepts, and within a few weeks’ time, they’re back to the same old, pre-training behaviors. This happens largely because there is no mechanism for integrating what they’ve learned into their day-to-day lives. By the time, they catch up on everything they missed while they were out of the office, they get caught up in just keep their heads above water.

To be fair, our expectations may be a tad unrealistic, but until we stop treating leadership learning as a separate activity, it will never take hold. By using a more integrated approach, like the cross-functional work teams described in the article, executives can enlist the support of their peers as they work to implement and perfect better ways of leading.

John Dewey once wrote, “There is no such thing as educational value in the abstract.” So if you want to become a better leader, adopting and perfecting new behaviors will take more than participating in a training exercise. You’ll need a peer support mechanism to make it all stick. It’s among the 5 reasons 2017 will be the Year of the Peer! If you want to read about the other four, check out my article at Shaping the Odds. Thanks!

Image from HBR.org

The Intersection of Mindfulness & Peer Advantage

Yesterday, I embarked on a four mile hike in Crested Butte, CO (one of my favorite spots on the planet) to enjoy the fall aspens and a magnificent panorama that lacked any of the traffic or the stop lights of southern California. To paint a more complete picture, I spent part of my hike listening to Earth, Wind & Fire’s greatest hits through my ear buds. I haven’t listened to that “album” in years, and I can’t for the life of me tell you why I selected it, but I felt transported.

It reminded me of how, as a kid, when I listened to music, I was always fascinated by the harmonies and instruments playing in the background – it’s what, for me at least, gives music its richness. I thought about why I always loved bands like Earth, Wind & Fire, Miami Sound Machine, and Chicago (yes, I’m dating myself). The words can be poetic and the melodies are catchy, but the arrangements are pure genius.

I enjoyed my time alone yesterday. Nothing else in the world mattered. I was living in the moment, enjoying sights and sounds that rendered anything else completely irrelevant. It was my personal brand of mindfulness. As I sit here now, I’m contemplating what I’ll call the intersection of mindfulness and peer advantage. If I am more mindful, will I experience peer advantage more fully for myself and create more value for others? Based on a piece I read recently by Dr. Melanie Greenberg in Psychology Today, I would have to say, “Yes, of course!” Her article speaks to nine essential qualities for mindfulness including being fully present, openness to experience, non-judgment, and connection, to name a few. Turns out that her nine qualities align perfectly with the five factors required for experiencing peer advantage for yourself and others.

Next month, I will participate in a mindfulness workshop delivered by Amy Sandler. (I’m really looking forward to it.) My guess is that Amy will reinforce the idea that being more mindful as an individual will only make me a stronger peer – that being truly mindful and being connected more deeply with others gives life its richness, too. Can’t wait to tell you all about it!

Fashioning A New Approach

Using our new P–E–E–R method for telling peer advantage stories, read Xavi Gutierrez’s* story and consider submitting one of your own using this simple outline. To review the guidelines for submitting stories, click here!

*The member’s name and other details in this story have been changed to protect member confidentiality.

Preface

Xavi Gutierrez is the Founder and CEO of a tech startup which provides customized ecommerce solutions for fashion stores. His company was doing pretty well in the Spanish market, and after securing an additional round of funding to expand his business, Xavi set his sights on finding a partner in the UK and eventually expanding globally.

Expectation

After Xavi received the funds to go global, with a specific focus on Europe during this first growth stage, Xavi tried without success to identify and hire a partner in the UK. Given the international diversity of the peers (namely from the UK market) of the online mastermind groups available at CEO World, he decided to become a member and join a group with the hope that the members might provide him with the support he needed to achieve his goals.

Experience

Xavi shared his challenge with the group during his very first meeting, focusing largely on how frustrated he was at his lack of success. After only 20 minutes of conversation, it became evident that Xavi’s pitch was missing the mark for a UK audience. It was also clear that the value being offered wasn’t appealing enough for someone to risk investing in this partnership. After a few rounds of clarifying questions, the group members learned enough to suggest additional resources Xavi should explore before moving forward, along with some ideas that Xavi could use to make his pitch and his offer more attractive to a potential partner. This would involved Xavi securing a few UK clients himself first.

Not only did Xavi make a commitment to the group that he would rethink his approach, but also several group members volunteered to work with Xavi outside the construct of the meeting – which they did. Xavi’s peers also saw to it that he remained committed to the goal, as opposed to focusing on obstacles or making excuses.

Results

After 12 weeks (three, two-hour mastermind sessions later), Xavi hired his first UK client. Twenty-six weeks later (6 sessions later), Xavi’s team hired 10 UK clients, and soon after, Xavi convinced a local partner to sell his services in the UK market. Xavi’s initial goal was achieved. During the following year, Xavi would use this approach to break into 5 new European markets. As Xavi sets his sights on entering the United States and Asia, he plans to do so with the help of his peers as part of a new mastermind group, with peers who are experiencing the same “business stage” issues and who understand the American and Asia markets.

A New CEO World For Entrepreneurs

Imagine being the founder of what you believe will be the next great company. You’re in the embryonic stages of forming your organization. You know you’re headed down a long and lonely road, and a potentially rewarding one, assuming you don’t screw it up! Now consider what it would be like to be approached by a major player who leads peer advisory groups for CEOs and business leaders in your area.

At first you might conclude, “Excellent, this is exactly what I need!” You salivate at the prospect of meeting with your peers on a regular basis in a forum where you can talk about your toughest challenges and greatest opportunities. You’ve read just enough to know how well these groups tend to help people become better leaders and grow their companies. But then you find out how much it costs and how much time it will consume. (Turns out this is the stage where both cash and time can be really tight). What’s more, because of your unpredictable travel schedule, you know before you start that your participation at locally-based monthly meetings may be unreliable at best. It’s a situation that could be bad for you and unfair to the group. Oh boy. Now what?

Turns out Miguel Dias has something to show you. Recently, CEO World launched its new website. Miguel’s peer advantage solution not only tackles the issues of time, money and participation, it offers you access to other CEOs around the world who will give you an all new perspective to help you think and act more globally.

CEO World assembles and professionally facilitates mastermind groups specifically for entrepreneurs and leaders of early stage companies. The groups are comprised of 6-8 people just like you (and yet not exactly like you at all) who meet online once a month for two jam-packed hours, including 30-minutes with a guest CEO who has been where you want to go. You not only get the kind of help you need, but it’s offered at a fraction of the cost, in two-hour sessions (versus a half-day or full-day), and can be accessed from wherever you may be traveling (assuming you have a decent internet connection).

So does CEO World deliver something that Vistage, EO, Renaissance, TAB, or YPO doesn’t? The answer is, yes and no. CEO World is a different model, delivered on a different platform, and designed to meet the needs and requirements of an entirely different demographic. CEO World opens up the world of peer advantage to those who otherwise might find it difficult, if not impossible, to access and makes it work for them. That’s CEO World’s killer app! Over time, the market will decide for itself whether this is a gateway drug for traditional, in-person groups or a stand-alone alternative that meets their specific needs on an ongoing basis. My guess is that leaders will be attracted to both options in greater numbers.

That said, CEO World is not a competitor to the big guys, so much as a companion. If they all play their cards right, you’ll see what 1 + 1 = 3 really looks like! If your organization leads CEO mastermind or peer advisory groups and you’re delivering true peer advantage to your members, tell me about it. I’m more than happy to spread the word about what you’re doing. Why not create a new world for everyone!

If You Want to Go Fast, Go Together!

Last week, my friend Phil and I drove to Petco Park for the third game of the three game series between the Boston Red Sox and the San Diego Padres. We live in San Diego, but we both grew up in the Boston area. If you know anything about Red Sox fans, you know we are always Sox fans, no matter where we live, and as you might have guessed, we attended all three games. In case you had any doubts, Red Sox Nation is real.

But I digress… so as we were driving to the game from Del Mar to downtown, traffic was at a standstill and showing no signs of loosening up. With two of us in the car, however, this afforded us the opportunity to drive in the High Occupancy Vehicle (HOV) lane. We could simply get out of the lanes where everyone was driving alone and bypass all the traffic. Which we did.

HOV lanes have been around in the US since the 70’s. Since I’m always on the lookout for peer advantage metaphors, it occurred to me that the African proverb that appears at the open of The Power of Peers: “If you want to go fast, go alone. If you want to go far, go together.” had to have been written prior to 1969 because we were going much faster together than any of the drivers going it alone.

As we sailed by hundreds of cars, we estimated that we saved at least 40 minutes getting to the game. For us, it was the difference between making it on time and showing up in the third inning. Turns out that together, you can go far and fast. Think about that the next time you hesitate to collaborate with someone for fear it will slow you down. It’s more likely that you’ll discover a new road – the one less traveled.

*Image from washingtontimes.com

Why NPS & Our Peers Matter More Than Ever

A company’s Net Promoter Score (NPS) may matter more today than when it first came on the scene in 2003 – not the score so much as the behavior it inspires. Here’s why:

The 2016 Edelman Trust Barometer revealed that “respondents are increasingly reliant on a ‘person like yourself’, who, along with a regular employee, are significantly more trusted than a CEO or government official. On social networking and content-sharing sites, respondents are far more trusting of family and friends (78 percent) than a CEO (49 percent).”

Richard Edelman said, “We must get beyond ‘The Grand Illusion’ that the mass will continue to follow the elites. This ‘Illusion’ was predicated on the belief that the informed publics have access to superior information, their interests are interconnected and that becoming ‘an elite’ was open to all who work hard. But the democratization of information, high-profile revelations of greed and misbehavior, coupled with rising income inequality, have squashed those beliefs. The trust of the mass population can no longer be taken for granted.”

As trust in institutions erodes – when 92% of people trust their peers over branded content (The Shelf) – then people will continue to turn to their peers in increasingly high numbers. This is where a company’s Net Promoter Score (NPS) enters the picture.

Here’s a quick refresher on NPS: It is the brainchild of Bain & Company partner Fred Reichheld. Reichheld created NPS as an answer to conventional, often lengthy customer satisfaction surveys that were largely ineffective. A company’s NPS is determined by obtaining the answer to what’s now regarded as The Ultimate Question:

On a zero to ten scale, how likely is it that you would recommend us (or this product/service/brand) to a friend or colleague?

Respondents are placed in one of three categories: promoters, passives, or detractors. Customers identified as promoters, who answer the question with a nine or ten, are far more likely than passives or detractors to be ambassadors (or even evangelists) for a product or service.

Today, because people trust their peers far more than institutions, seeing NPS only as another customer satisfaction metric would be missing the boat – the same one we’re all in, by the way. Companies that understand how to use it, see the score as a verb rather than a noun. Doing so serves to encourage reinforcing behaviors and a culture that inspires and creates even more promoters. The more friends and family members who graduate from passives to promoters, the more likely sales of that company’s product or service go up. Pretty simple really. It’s how (and why) the power of peers matters now more than ever.