There is yet another good leadership article in HBR this month. This one, by David Nadler, talks about the CEO’s “second act.” CEOs in the corporate world are often brought in to fix a problem or save a sinking ship (Act I). Successful ones do just that, but after a while,
…the experiences, skills, and temperament that yielded triumph in Act I turn out to be unequal to Act II’s difficulties. In fact, the approaches that worked so brilliantly in Act I may be the very opposite of what is needed to bring Act II to a happy resolution.
This is true of both leadership and strategy. When Jeff and I talk about strategy, we consistently warn clients NOT to wait until the strategy is an utter failure before trying to change it. If you want to keep the organization on its most productive growth curve, you need to think about changing strategy when you are succeeding, not when you are failing (when it will take so much energy to turn things around).
Of course, organizations are resistant to this. It took a lot of hard work to achieve success, so it feels wrong, somehow, to change it. But that is just what this article is talking about. Refusing to change, frankly, assumes the world is not changing. If you assume the world is changing, then it becomes obvious that your particular style or your particular set of strengths (or your particular strategy) will work for a period of time, and then become less effective. Your choice then is to change yourself, change the structure of the organization (so others can pick up the leadership slack), or move on.
