01 March 2025

Leading With Self-Control

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"Let your breath be the first word."

—Jefferson Fisher

What contributes to CEO failure? 

"How do CEOs blow it? More than any other way by failure to put the right people in the right jobsand the related failure to fix people problems in time," says Ram Charan and Geoffrey Colvin in a timeless FORTUNE magazine article published in June 1999. 

"Specifically, failed CEOs are often unable to deal with a few key subordinates whose sustained poor performance deeply harms the company. Everyone around the leader knows about these problems, but their opinions are ignored," the writers added. 

CEOs know there's a problem, but they suppress it. 

The article concludes that the failure is one of emotional strength.

Defining self-control

Self-control plays three vital roles: thinking before acting, controlling disruptive emotions and impulses, and saying "no" to temptation. However important this characteristic is, it's often overlooked when hiring. 

Dr. Christopher Barnes from the University of Washington reports that self-control varies over time within the same person. 

The studies point in these directions:

  • It's a time-limited response. Too much is used in one place, leaving less to be used in another. 
  • Think of it as a finite cognitive resource. Exerting self-control can negatively affect future self-control if not replenished.
  • As self-control depletes, one is more likely to succumb to temptation. Even good people can have weak moments.
  • Different types of self-control tap into the same pool of limited resources.
Temperament (personality) and self-control are closely related but not the same. Temperament is innate and influenced by biological factors. Self-control, learned over time, is the key to managing one's temperament effectively. 

Desirable habits

Embracing self-control has many rewards, including better people decisions.

A self-regulated condition means eating healthy, improving job performance, and forming higher-quality friendships. Inspiring and intellectually challenging associates rather than abusing and micro-managing them is a plus.

Without self-control, we revert to impulsive decision-making, emotional outbursts, and difficulty managing stress. The literature cautions against sending a text or email or calling someone when angry, as words written or spoken can never be returned. 

Judicious restraint using the 24-hour reply rule is a teachable moment, as others pay more attention to what we do than what we say.

A reflective leader

Psychologists define reflection as evaluating our thoughts, behaviors, and motivations. This process is about self-awareness, knowing who we are, and clarifying the boundaries of our lives. Furthermore, this prearranged time helps us assess the quality of our circumstances. 

In the age of noise, leaders need to be alone and offline. As the playwright Jon Fosse declares, "The silence speaks."

Suppose we don't periodically reflect on what matters to us. In that case, we can be misdirected by outdated thinking. Or, confused by a disorienting culture whose moral fabric is rated poor by 54 percent of U.S. adults, according to a 2024 Gallup Poll. In that same survey, 83 percent of respondents said that moral values are worsening.  

"Leaders have to get outside the emotional climate of the day," writes Edwin Friedman in A Failure of NerveLeadership in the Age of the Quick Fix. "Vision is generally considered a cerebral event, but the ability to see things differently is an emotional phenomenon," he notes in his last book.  

Widely respected, Friedman, a rabbi turned consultant, makes clear that when attempting to engineer an organizational renaissance, those at the top have to muster the inner strength to overcome resistance and rejection, especially from those within who may have lost their will and way.

The gift of sleep

If energy is the fuel for self-control, how do we tank or power up?

Certainly, diet, exercise, and fresh air make a big difference. Experiencing new environments and including individuals of strong character in our circle of friends helps greatly. Continuous learning renews our minds. Don't forget the encouragement and support from families. 

Nevertheless, a good night's rest is the greatest daily power source for regaining emotional strength and self-control, which can positively influence one's temperament. After all, the wisdom of ruling our spirit is a time-honored instruction. 

Mayo Clinic recommends that adults sleep at least seven hours each night. However, the quality of sleep and routine matter more than the number of hours. REM (Rapid Eye Movement) and deep sleep are required to improve cognitive function and memory, reduce stress, and boost the immune system. Sleep also has a physical healing quality.

Sleep psychologist Dr. Michelle Drerup suggests that the bedroom temperature should be 60 to 67 degrees (15-19 C). "It should be cool, dark, and quiet to enhance sleep," she notes. 

Can you ever make up for lost sleep?

"We don't know," says Dr. David Gozal of the University of Chicago. "If a person goes without sleep for just one night and tries to replace that lost sleepto repay that sleep debt in just a day or two, most likely they will be able to regain normal function. But getting extra sleep does not immediately restore all systems," Dr. Gozal quickly adds. 

Buffer days

The late Bob Buford, co-founder of Leadership Network with Fred Smith, liked introducing something he had been thinking about when opening the Network's conferences. One idea that sticks in my mind is inserting "buffer days" into busy schedules—perhaps one or two days to rest—for you and your colleagues, too.

Back-to-back meetings are sometimes a reality. Red-eye flights may be necessary, and overseas travel can cause jet lag. However, an intermittent buffer day can provide emotional strength, offsetting the physical and mental strain of demanding responsibilities.  

Author Alan Cohen sums it up this way: "There is virtue in work, and there is virtue in rest. Use both and overlook neither."



Sources: Self-control: A vital behavior for leaders everywhere, Sarah Mangia, The Ohio State University, September 15, 2020; Leadership Takes Self-Control. Here's What We Know About It, Kai Chi Yam, Hulwen Lian, D. Lance Ferris, and Douglas Brown, Harvard Business Review, June 5, 2017; Sleep Deprived People Are More Likely to Cheat, Christopher M. Barnes, Harvard Business Review, May 31, 2013; The Skill that Matters Most, Tony Schwartz, Harvard Business Review, September 13, 2011; A Neglected But Essential Leadership Trait--Why Self-Control Really Matters, Prudy Gouirguecheon, Forbes, April 3, 2018. 



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01 February 2025

A Close Look At Skechers Successful Strategy

  
© Skechers

"Opportunities multiply as they are seized." 

--Sun Tzu

Howie Long is an NFL All-Pro defensive end and Hall of Famer who played 13 seasons for the Los Angeles and Oakland Raiders. Long is now a studio analyst for Fox Network's NFL coverage. 

While preparing to write the February Strategist Post, Long appeared in a larger-than-life display advertisement that took up one-third of page 5 in Section 1 of a recent edition of the Orlando Sentinel newspaper. 

In the ad, he wears a white T-shirt, light grey khaki pants, and a navy letterman's jacket. The 6' 5" former tight end and defensive lineman from Villanova University holds a college football (the one with stripes) in both hands and wears dark grey, hands-free, slip-in Skechers shoes (similar in style to the one above). 

The copy reads, "No bending over. No touching shoes. Just step in and go." 

Howie Long's endorsement and those of other football stars, including Joe Montana, golfer Brooke Henderson, and entertainment figures like Martha Stewart, Willie Nelson, and Snoop Dog, have helped make Skechers--a Fortune 500© company with global sales of $9 billion in 2024--the third-best-selling shoe behind Nike and Adidas. 

Skechers backstory

How did a footwear brand based in Manhattan Beach, California, come to offer over 900 shoe styles and have 5,000 stores in 120 countries without generating much media attention? 

The correct answer is slowly.

In 1983, Skechers founder Robert Greenberg and his son, Michael, started L.A. Gear (with endorsements from Wayne Gretzky and Kareem-Abduhl-Jabbar) after an unsuccessful attempt to sell roller skates. Skechers emerged after the Greenbergs left L.A. Gear in 1992 over a dispute with the board of directors. The original plan was to distribute Dr. Martens's shoes, but that arrangement left the Greenbergs with little say about product development and quality control. 

They really wanted their own shoe--and control over its fate in their hands.

The strategic concept

A careful reading of Skechers' history shows that the Greenbergs, with Robert, now 84, as chair and Michael as president, learned from their decade-long experiences that to be successful, one must concentrate on a few things and do them well. 

Product innovation (comfort technology) is the driving force behind style, quality, and affordability. Together, they create a brand identity that must be carefully guarded, and that's what the Greenbergs do: guard the brand. 

Packaging the strategic idea is one thing. Executing is another. 

Marketing plays an important role with generous ad spaces, glossy magazines, large billboards, and television advertisements featuring celebrities wearing Skechers shoes. 

Despite the more contemporary ad campaigns, Skechers still has an image problem, reinforced by ads like the one with Howie Long. They're associated with selling "old people's shoes." (I have a pair of Skechers and their slip-in golf shoes, which is an unpaid endorsement.) 

Product diversification continues across new markets. Skechers is expanding into team sports like soccer and basketball. 

Harry Kane of England's national soccer team has a lifetime endorsement deal for Skechers' soccer cleats. The NBA's Joel Embiid of the Philadelphia 76ers and Julius Randle of the New York Nicks endorse basketball shoes. 

Filling in the holes

An important lesson about Greenberg's achievement is that they found market gaps--young professional athletes, women, families with children, new lifestyles, and, yes, older adults--and are filling them in. Skechers now offers a pickleball shoe made of Goodyear rubber that retails for $115.

What's common to all products? The calculated idea that comfort, style, quality, and affordability are a winning combination. 

Skechers got a boost from Nike*, which closed its stores after the pandemic to focus on wholesaling and direct-to-consumer sales. Nike's price points don't often go below $100, while Skechers offers a variety of styles for less. Their GORUN shoe sells for $45 at Walmart. Children's shoes are around $30 on Amazon, which appeals to price-conscious parents.

In addition to being helped by other shoe companies that stick to their specialties, such as Hoka, which markets to hardcore runners, Skechers is benefiting from cultural changes: people wearing sneakers and sports apparel for non-sports occasions, like the office and social occasions. 

Sometimes, a strategy needs a break from the competition or marketplace to succeed.

An original work

Robert and Michael Greenberg have built a remarkable business, but they would be the first to say they haven't done it alone. Any creative idea pursuing that much growth requires others to achieve its aims. Widespread knowledge among associates of how Skechers differs and why is fundamental to its financial fortune. 

No idea or business constructed by human powers endures forever in its original form. Maintaining product innovation as Skechers' heart and soul while profitably seizing the right opportunities is an investment in its future but not a guarantee.


*Nike is suing Skechers for design infringement. Skechers said it will "vigorously" defend the 2023 patent suit. 


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01 January 2025

How Organizations Really Work

(C) Used with permission.

"The sinkhole of change is communication and motivation. It's where change projects go to die."

--Nancy Rothbard, Ph.D.

Bayer, the German conglomerate that invented aspirin in its earliest days, is trying to reinvent itself. 

CEO Bill Anderson is one year into restructuring the company's pharma commercial team in response to a crushing €34.5 billion debt, the litigation-intensive $63 billion acquisition of Monsanto, the parent company of the Roundup weed killer, and the upcoming loss of exclusivity for the blood-clot medication Xarelto. 

Bayer, also home to Flinstone vitamins and Alka-Seltzer, eliminated managers and annual budgets, which Anderson calls the "belly of the beast of bureaucracy," and asked staff to organize themselves into 90-day "sprints" in self-directed teams. 

"Dynamic Shared Ownership" (DSO) proposes reducing bureaucracy, accelerating decision-making, bringing employees and customers closer together, improving overall operational performance, and radically realigning Bayer's internal culture. 

"The beauty of this system is we're not perfecting it before we start," says Christine Roth, head of global commercialization at Bayer's pharmaceutical division. "We're getting to a good place where we can start to experiment and go. And we will learn to adjust as we go," Roth emphasized.

The DSO plan works and becomes a Harvard Case Study on transformation or falls into the heavily populated category of failed corporate change, where nearly 70 percent end up. Or something in between.

Under Bayer's circumstances, doing nothing is not an option.

The role of culture

Dr. James O'Toole, author of Leading Change and former program director at The Aspen Institute, defines culture as a system of beliefs and actions that characterizes a particular group. He includes shared ideas, customs, assumptions, expectations, philosophy, traditions, mores, and values in that definition.

Historically, grasping corporate culture resulted from in-person socialization, close observations of behavior, and conversations with peers and supervisors. Informal mentoring played a big role in the assimilation process. 

Can what was once learned on-site be interpreted virtually?

The Iceberg graphic shows that the more heavily promoted values at the top, such as vision, strategy, and goals, may have less influence than originally thought. Stories, unwritten rules, and traditions at the bottom may impact culture more. Will the approximately 90 percent unseen volume of the iceberg retain its influence in hybrid work cultures? 

Change is hard but possible

What have we learned in a half-century of studying organizational dynamics? The critical importance of everyday relationships. That's a quality you can't do without. Credibility doesn't show up at the last minute when change needs to happen, or a crisis occurs. It's there, or it's not.

There's a huge difference between nurtured and neglected bureaucracies. The former are healthy and adaptive, while the latter struggle to achieve common goals. 

What drives sweeping change? 

An existential threat, such as debt at Bayer or catastrophic accidents involving Boeing planes in 2018 and 2019, killing 346 passengers and crew that grounded the 737 Max jets.  

"Top management teams that are diverse in time orientation, tenure, and experience increase the probability of strategic change," says Success with Change author Patricia McLagan.

Anticipating something new

There are three pre-conditions for effective change:

The first is trust. 

Dr O'Toole writes: "Trust is created by leaders' manifest respect for their followers." 

"People have to believe in you and what you are trying to do," says Paul Brown with FTI Consulting. 

Therefore, mutual trust is necessary.

Secondly, leadership has to gauge the capacity to change. Restructurings or turnarounds can't happen without building on existing capacity. You bring change by working with the system; you can't pretend the system doesn't exist. 

Finally, anticipate people's concerns. They are not only predictable but also addressable. Sometimes, resistance identifies alternative options and produces better results. Associates don't actually resist change; they simply resist being controlled.

Improving the chances of success

Make a case for change: Explain your motivations to employees repeatedly and in detail. Take the time to build a compelling case. Allow for questions and feedback. Announcing change isn't the same as implementing it. Show everyone where the enterprise is, where it should go next, and how to get there by working collaboratively. A realistic timeline helps. 

Involve associates from the beginning. Credit them for being smart and include them in every stage. People don't want to be sold on change. They want to understand it and participate in making it happen. Deliberately engage their hearts and minds. Let them influence its nature and direction. Those directly affected by these decisions need time to make the required transitions. Implementation happens here. 

Maintain integrity throughout the process. Proposals and the leaders who sponsor them aren't perfect. Acknowledging this upfront is an act of humility, not weakness. If leadership communicates probabilities instead of certainty, much can be said. Updating formal and informal channels with the latest information is better than rumor-filled vacuums. Progress, more than success, is the measuring stick of change.

Remember that cultural icebergs are mainly below the surface.


Sources:  Controlling the Perils of Change, Mary Lee Olson, T + D Magazine, 2008; The Irrational Side of Management, McKinsey Quarterly, 2013; Partners In Change, Paul B. Brown, Inc., 2001; Leading Change, James O'Toole; Jossey-Bass, 1995, Cracking the Code of Change, Nitin Nohria and Michael Beer, Harvard Business Review, 2000; Success with Change, Patricia McLagan, T +D Magazine, 2002-2003; The Change Monster, Jeanie Daniel Duck, Crown, 2002; Communicating Change, TJ Larkin and Sandra Larkin, McGraw-Hill 1994. 


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