Morley Salmon passes leadership of EMDA to Brian Koscak

How to get more from your people

I came out of Business School having used the case study method, where the professor speaks 10 percent of the time, and the students do the rest. It’s tremendously valuable in private equity to ask questions rather than do all the "telling". When you need the company to grow, you’ll get better answers than if you, the C.E.O., try to come up with most of the ideas and impose them. You actually get better work out of folks as a result of asking them to bring more to the strategy of the business.
Let me say something that’s going to sound surprising. As C.E.O. today, you actually can’t get anything done without your people. 
Fact. 
We can all understand this as we have all been at the bottom of the ladder, with bosses who inspire and some who do not. As a leader, if I have a really good idea and I go tell people, “Hey, you have to go do this,” or I impose it on them, people wonder, what does she really mean? It’s open to so much misinterpretation and confusion that actually you’re doing more harm for the organization than you are good.
So the job of the C.E.O. becomes, “Hey everybody, what are everybody’s good ideas? O.K., and what’s yours? That’s awesome. What do you think of that? Hmm,.."
Now, anybody can have a different view and it strengthens decision making.
I was reminded of this by a book recommended to me by one of Canada's leading coaches, Sharon Ranson who runs The Ranson Group, coaching executives in the financial industry. The Leadership Challenge is written by Kouzes and Posner and I assumed it would be a quick flip book but slowed down to appreciate the detailed examples. The Leadership Challenge is well worth a read over this holiday season, perhaps with a glass of eggnog?
You can reach Sharon Ranson at sranson At theransongroup.com 

Want to improve, get a coach

Getting a coach is the best thing that you can do. I’ve done four years with two different coaches, and it is just fantastic. There’s what you say and there’s what people hear, and the gap between those two is sometimes enormous. What really matters is what people hear, not what you say.

Being a manager also isn’t about trying to become perfect. You’re not going to stop making errors. But it’s about having a mature appreciation for the fact that you’re a flawed human being. Probably everyone around you is a flawed human being. What are your flaws and how are you going to manage around them? What are your strengths? How are you going to optimize those?

I also learned a good trick, which is to ask somebody, “How are you doing?” They’ll usually say, “Good.” And I’ll say, “No, no, really. How are you doing?” And they’ll answer, “Good.” But then I’ll say, “Tell me what would you say if you weren’t doing good? How would you express that to me?” And then they tell you things. It’s partly little tactics, but the more important part is making it clear that you want to hear what they have to say.

2 Job Interview questions asked by Private Equity

Q. What’s an effective question that you use in most interviews?

A. What’s the best and worst career advice you’ve been given in your career? That gets to the underlying point about what people think is important. The best career advice part gets to what they think is important; worst career advice kind of tells you whether the person is trying to snow you. I want to know if you’re trying to snow me under the stress of the interview and try to tell me things that you know aren’t true — that you don’t make bad decisions, that you haven’t gotten any bad career advice, that type of stuff.

The point is that the interview is uncomfortable, but so are budget review meetings and so are a lot of meetings in day-to-day life. We’re not a bunch of perfect people who work together. We’re all people with flaws. I want to know if you’re somebody who feels comfortable enough to talk about dumb things that you’ve done or dumb advice that you’ve taken. Phrasing it in the form of, “Hey, what’s the worst advice you got?” at least gives you a half-step of distance to it. It tells you something about the character of the person.

Q. What’s the best question people should ask in an interview?

A. When they ask you, “Hey, do you have any more questions?” ask them, “How do I help you get a gold star in your review next year?” The person who’s interviewing you had to go through a lot of effort to get this opening, particularly in this economy. Be empathetic and realize that they are hoping that this position is going to make their life better. Ask them how you can be a part of that.

The "how are you doing" job interview

The “How are you doing?” interview for private equity partnered firms has about a 50 percent chance of success. That kind of interview is just a social call, right? You’re not actually seeking to find out anything about somebody’s performance. All you’re talking about is vague generalities, some task ability and whether there is cultural "fit".

In the Loewen & Partners' Talent method, the structure is more, “What have you done in the past relative to what this job needs?” So if I’m hiring a CFO, we’ll have the CEO and the family business owner and two more in the interview committee, usually Board members. We’ll sit down first and say, there are 51 different areas that could be important that we’re looking for in somebody — a good coach, analyst, public speaker, all these different areas that could be important. 

We have to pick six, and it’s really interesting to have these discussions with your colleagues. In some cases it turns out that everybody’s got a different six, and that’s a problem.

Once you decide on the six characteristics that are most important for the particular job you’re trying to fill, then there’s a series of questions for each one, always focused on past performance. It’s no guarantee of future performance, but it’s the best predictor. What are the tasks to get done and has the person exposure to that work before.