Something no one is talking about

The game inside the game is being played out before us. In the midst of the economy shutting down, doors being closed and employees working from home, there is both jubilation and sincere frustration taking place among companies in the U.S.

As we all know, in business, survival of the fittest is real. It dictates the ebb and flow of corporate evolution, market dominance, and provides the guides for risk and reward. While many companies are being granted a "get out of jail free" card, the corporations that will be reflected on the positive side of history in the midst of these unfortunate times, who have conducted business in an aggressive yet responsible manner, are being forced to skip their turn.

The circle of life

Have you stopped to consider the impact that it will have when the wounded animal in the proverbial safari is reborn instead of contributing to the circle of life? Companies on the brink of financial extinction that everyone in the industry knew prior the pandemic, was just a matter of time before they were either acquired or, met their fate. With the government bailing out such companies, the opportunity for other organizations to benefit from their unfortunate demise is lost. Instead, they witness the potential for increased market share, elevated stock values, the ability to acquire technology, and the release of available talent into the market slip right through their fingers, due to no fault of their own.

Like a lion hiding in the tall grass, these, whether we like it or not, are the realistic opportunities and market corrections that evolve when the market is left to its own devices, and nature is allowed to take its course.

What side are you on?

On the side of companies who were facing the reality of their own poor business decisions, they now find jubilation in light of a lifeline that our government, with the best of intentions, has extended them. But for those who have fought tooth and nail for years, to strategically place themselves in a position of strength in order to be afforded an opportunistic moment in time, frustrations mount and heads shake in disbelief as the opportunities that were rightfully theirs are squandered.

Does this interruption of progress help or hurt the economy in the macro? Are we throwing good money after bad if the direction of these companies, imposed by their leadership, isn’t altered? Are they to be rewarded for failing and given a second chance that by all rights they don’t deserve? I don’t mean to sound harsh or unforgiving, but as they say – business is business, it’s not personal… or, should it be? The fact is we all make choices and have to live with the consequences of our actions, both in life and in business. Why should this be any different?

Now… Do I hold a corner office with my name on the door inside a massive structure located in the heart of Silicon Valley, Boston or New York? No, I do not. Although I do have my own private parking space. What I do have is a tad bit more gray hair than I’d like, and a massive amount of personal one-on-one knowledge under my belt that only three decades in the search industry can allot you. Over the course of my career I’ve placed a series of C-Level executives, including CEO’s, and have been invited through open, in-depth communication to experience the framework of their world. To intimately gain an understanding as to their mindset, desires, previous challenges, demands, pressures and perspectives. I hear unspoken stories of the corporate life they lead as well as their aspirations of making a difference. In addition to that, I talk with such leaders practically every day. It’s simply what I do.

I’m not judging

There is an old American Indian proverb that says… “Never criticize a man until you've walked a mile in his moccasins.” This is something that I truly take to heart. As I express my views, please understand that I do not sit here in judgement, but in observation, doing my best to make sense as to what I see and the profound impact I believe it may have on an outcome that will eventually affect us all. I then submit these views in the form of writing, to a passionate, intellectual forum for conversation, debate, and most of all, clarity.

Much of what I choose to address stems from collaboration within that forum, which is comprised of an elite community of thought-leaders that we have established here on this platform. It is the combination of meaningful exchange, words that inspire, provoke thought and carry exceptional insight that tends to lead the way. Just last week for example I made mention of someone I highly regard as an exceptional leader, someone who possesses many of the necessary qualities that I have discussed here in this article. Upon reading the piece, he was thoughtful enough to express the following, which of course gave me not only food for thought, but additional context around a man whom I had already known to be a unique individual.

Mike Baker, President at Middle Atlantic Products, Inc.

“Steve, Thank you for the mention. I, like all of us, have been shaped by those around us. Companies are living organisms and our success is driven by those who choose to participate and follow us. In these times, the concept of “family” has never been more appropriate. Empathy is a concept I preach and our caring for each other should be stronger than ever and is something I believe in strongly. I thank you for all of your writings and love your challenging all of us to be critical thinkers. Thank you.”

My response... Thank you Michael. I believe your comments just made my point on exceptional leaders. This type of leadership speak is not common. I know you have hired leaders of the same ilk. I especially liked your references to empathy and living organism and would like to add a little more if I may. Like you, I believe the lifeblood (both figuratively & literally) of a company is talent - it’s something you need to "take care of." Yes, I’m in search, but I carry this belief innately. It’s not rocket science - it's choice. There’s been so much talk about EQ (empathy) as if it’s a foreign term to many. While I am the biggest proponent of tech, there is no question that it has impacted the ability to relate one-on-one. The end result, less of an ability to place oneself in another's position. Whenever I hear the latter, I am reminded of quaking aspens, the largest living organism in the world, its roots spread underground (which no one sees) and it's where it all unites. Symbolically the heavy, selfless work no one sees but must be done. However, even aspens reach a size that is not sustainable. I have been concerned for a while that the heavy M&A appetite may reach an unsustainable point wherein your most vital aspect (talent) is under attended.”

Different types of leadership

Brief conversations such as these allow me to formulate ideas, to connect to other occurrences that may present an opportunity to illustrate significant points in future articles. Take the word “sustainable” that I just used in the comment above. For me, it speaks to leaders who have forged a foundation that is built for the long-term, tirelessly prepared for what may lie ahead, and who have positioned themselves in our current chaotic environment, as the hunter and not the prey. If I had to choose one leader who reflects this among the companies that I encounter each day, my attention would have to turn to the likes of Chris Perry, President of Broadridge Financial Solutions. Back in February, Broadridge was recognized by Barron’s as one of the 100 Most Sustainable Companies in America. Considering the current conditions of the market, and quite possibly the state that your organization finds itself in, I think you would agree that this is no small feat, and it doesn’t simply happen by chance.

When the dust settles, there is no doubt that they will not only be left standing, but thriving in the aftermath, with their stockholders emanating confidence in the decision that they made.

Leadership mindset

When I think of the mindset behind leadership, I look to those with perspective, who see things in the micro as well as the macro. Someone who isn’t afraid to step out of their comfort zone, possessing not only vision, but an executable, carefully crafted plan for what they may encounter. In this context, I’d say that the person who immediately comes to mind is Carolyn Homberger, Executive Vice President & Chief Risk Officer at ACI Worldwide. Carolyn is a leader who unselfishly stretches herself beyond her immediate responsibilities and makes her presence known. She is an advocate for the leadership and growth of women in her industry and is recognized as one of the most influential women in her space. In fact, she is also responsible for launching ACI’s own Women’s Initiative. I point to these qualities because they underline the mindset of a strategic executor, and not simply someone who is content staying in their lane. While leading, she champions others with a passion that resonates not only with those in her company, but with those in her industry.

Compassionate leadership

And then there are leaders who openly and willingly share the wealth with other leaders in times of need, such as the one that we are all experiencing today. This pandemic is unknown territory for most, regardless of the position you may hold within an organization. But when you see a company who making an effort to publish content entitled: COVID-19: 10 ways boards can help guide the business during the crisis, sharing their insight with the intent of aiding board members of other companies, in order to help them navigate the waters of this crisis, when they could have written against any other topic, what does that say to you about the character of its leaders? In my view this is compassionate leadership, perhaps the strongest kind. In a market where it is every man/woman for themselves, EY Financial Services, led by Partner/Principal, Reetu Khosla turned their resources and attention towards aiding their peers. Just imagine what they must be doing for their customers and the talent within their organization.

Leading by example

You tend to notice them when their actions speak louder than their words, when their character, integrity, accountability, strength and convictions match the carefully crafted paragraphs found in their corporate brochure. Such is the case of a company by the name of Fiserv Inc.

On April 13th, the company announced that their top executives were taking temporary base salary pay cuts in order to compensate employees who are experiencing financial hardship due to the Coronavirus. The company disclosed that its chairman & chief executive officer Jeff Yabuki, and president & chief operating officer Frank Bisignano have each agreed to forgo 100 percent of their base salary, along with a 20 percent pay cut for other members of their executive staff. In addition, the company’s Compensation Committee of the Board of Directors approved to suspend the payment of all cash compensation payable to non-employee directors as well, which they say will also be used to provide assistance to company associates related to COVID-19 through their Fiserv Cares Fund.

There are also unmistakable and admirable qualities of character and intestinal fortitude that have stood the test of time, supported by leadership who have weathered more than one storm, learned from their past, and in a somber way, are much stronger today in light of it, such as Akamai Technologies.

On April 8th, Paul Sagan, Managing Director at General Catalyst and former CEO and Director at Akamai Technologies was interviewed on the How I Got Here podcast. He shared his personal and professional insights, provided a look back at Akamai’s challenging history, and set the tone for a company whose leadership can only be described as… invincible. Here is just some of what he had to share…

"First the dotcom bubble burst and people said we would go out of business." (Crisis No 1) Then the tragedy side of the Akamai story came into play. Daniel Lewin, one of the Co-Founders of Akamai was a passenger onboard American Airlines Flight 11, it is believed that Daniel was stabbed by one of the hijackers of that flight, and was the first person murdered during the course of the attacks of 911. Then the thoughts of the market turned to... "Oh, well the inspiration of the company has been killed so you're sure to go out of business. (Crisis No 2 and 3) “Those of us who were there were just damn angry. I think it spoke a lot to the importance of building culture in a company and aligning people. We said to the people that we could afford to keep after the downturn of 911 when we were trying not to go bankrupt, if you stay, this is the mission, and yes we're all angry, but we're really clear-eyed about what we're going to do, and if you stay, you can be a part of winning, and that was a really important lesson." He went on to say… "We had a culture of collaboration, honesty and hard work that allowed us to get through something as traumatic as that." Which for anyone, I think we can all agree, is unimaginable.

Once an MIT startup, Akamai it is now a $3 billion dynamic company headed by Tom Leighton Co-Founder and now CEO, with increased demand for its product and no signs of slowing down. In fact, I honestly don't know of another company out of the dot-bomb era that is still standing on their own today, which again, is another testament to their long-standing leadership.

Paul also mentioned during the interview… "If you are not surrounded by a culture of high integrity and people who are aligned on a mission, you shouldn't stay there." I personally couldn’t agree with him more.

The corporate structure

What I have come to understand is that companies are built from the top down, not the ground up, starting with the CEO and executive ranks. It is the genuine integrity, heart and mindset of that foundation that serves to ultimately design a successful company; and prepares it for the highs as well as the lows. Today, we as a nation sit at a low point in history that we never saw coming, although there is much debate on that topic as well. In the face of this adversity, as I stated, for far too many that foundation of leadership has become cracked, unable to support itself or the weight of those who stand upon its shoulders. On the other hand, for some, like the ones that I have mentioned here, it brings to light the true nature of one’s character and ultimately introduces you to the best in people.

Reward these companies

Now for my closing rant. In my view, these are examples of the types of companies that should be rewarded, not in the form of a governmental bailout, but in the form of financial recognition for the way they have consistently conducted business with integrity, ethics and accountability, and provided a certain level of stability in an extremely volatile and uncertain market. They provide the template that others should aspire to, who lead by example and position themselves to withstand the trials of business, even in times of crisis. Yet, because they are solvent, well run organizations, ultimately, they will end up paying the price – in more ways than one.

About Steve Diedrick...

Steve is the founder of Redmond, a global executive search firm whose clients include world renowned brands and start-ups that are shaping tomorrow's world. As a highly respected authority and pioneer in the field of human capital with close to three decades in the space, his progressive ideas on search-excellence reflect a profound understanding/passion for the global economy and the ever-evolving mindset of the unique talent that propels companies forward. He has personally reached out to more than 100,000 professionals and interviewed over 35,000 potential candidates throughout his career. His personal drive, perspective, discipline and focus is a culmination of his life experience living abroad and the 27 years spent mastering the Martial Art of Qi Gong. His Mantra: There is nothing like direct experience that takes you from knowledge - to knowing.

Email me at: [email protected] or Text me at: 947.222.9200 and let's discuss how Redmond can help you.

? Redmond Research, Inc. 2020