and handling relationships – even if they are inclined to. Not only are
more individual managers recognizing the importance of managerial
abilities and the connection with bottom-line performance, but there
are also external pressures. Investors are unhappy with the
speculation that often accompanies annual reports and the
chairman’s statements, and are inadequately informed by the
accounts (which, after Enron, we now know can bear little relation to
reality). Investors need to form some sense of a company’s potential,
and hence its value. They are asking – sometimes directly, sometimes
indirectly – about managerial ability. They are putting a price on
your ability to lead and handle people.
In a recent newspaper article, Warburg Dillon Read stated, ‘the value
of £500m on Granada management is based on analysis of earnings
growth compared with peers.’ This may seem a crude measure, but
the importance is in the focus: Warburg Dillon Read are asking about
managerial ability. The establishment of a sound strategy and a
coherent business structure is not enough. What analysts and
investors are also examining is whether there is a process in place to
implement a solid foundation of appropriate skills and behaviours.
In other words, is this precious managerial ability due solely to a
talented individual or two currently on board, or is there also a
programme of development and succession planning that will
maximize the chance of developing and attracting high performers in
the future?
Can I change? Will it change my personality?
Once you accept intellectually the need for development of
management skills and behaviours, there can still remain doubts
about your ability to adapt. We can believe, falsely, that we ‘can’t
change’ if we are from a particular profession, or we are over 40, or if
we are married, or some other reason. This chapter explores the fears
and doubts that inhibit us, and encourages a belief in relentless
improvement. Let’s take some of the fears or grounds for scepticism
in turn.
momentum complete leadership chapter two
27
pages 26 /