10/4/09: Leadership Reading to Start Your Week
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Here are five choice articles from the business press to start off your work week. I'm pointing you to articles about strengths that can hurt you, Toyota, the decline of business media, planning for the next recession, and an inspiring and instructive turnaround.
From the Financial Times: Strengths become weaknesses
"Last week, PCL, the business psychology consultancy, published a report, “A decade of the dark side”, which contained a study of 18,000 psychometric tests completed by senior managers during the past 10 years. The test that was used, the Hogan Development Survey (HDS), differs from other tests in that it analyses why leaders fail, rather than just providing a neutral account of individuals’ strengths and weaknesses."
Wally's Comment: This is one of those things that my mother used to warn about. The very things that make you successful can often turn around and bite you. You may not believe my mom or yours, but here's a little research to ponder.
From Business Week: Toyoda on Toyota: "Grasping for Salvation"
"Akio Toyoda thinks he knows what’s wrong with Toyota, the world’s biggest car maker. Success has made it cocky. It has been expanding in an undisciplined fashion. It has been in denial about the peril it faces."
Wally's Comment: Could Toyota be a victim of hubris? Akio Toyoda thinks that might be the case. It's the sin of pride that brings down the most successful companies just about the time they start thinking that the usual rules don't apply to them.
From Strategy + Business: What a Declining Business Media Means to CEOs
"As cost cutting narrows the field of business journalism, it has become more difficult to put out a corporate story — or take one in."
Wally's Comment: Business isn't easy to cover. A reporter needs to know something about business and businesspeople and have some interest in the subject. There are less and less of those as seasoned business journalists are kicked to the curb to be replaced with younger, less experienced, journalists. Don't say, "So what?" This is important. Read this article for more.
From the Washington Post: Time to Plan for the Next Recession
"If ever you were entitled to start breathing easier, now would seem to be the moment. So why am I telling you not to? The end of the recession seems so close that you can almost smell it. The stock market is surging, China and India are firing on all cylinders again, and no one would be surprised if in the next quarter the U.S. economy shows signs of growth, too. Yet this is exactly the wrong moment to let up on the mean and lean strategies you've adopted. In fact, it's time to go further and develop a new, even tougher mind-set: managing for -- yes -- the next recession."
Wally's Comment: Geoff Colvin is a Senior Editor at Large for Fortune. This article is one example of what a seasoned and savvy journalist can produce. No rookie could write this. Colvin used excellent writing to make several important points. His analysis is based on years of working as a business journalist.
From Industry Week: Forging Change: Miller Centrifugal Casting Comeback
"How does a declining company regain strong footing in the marketplace as a high performance organization?"
Wally's Comment: There's always learning in a good turnaround tale and this is one of those. You can learn a lot about business leadership from reading this.
Wally's Working Supervisor's Support Kit is a collection of information and tools to help working supervisors do a better job. It's based on what Wally's learned in over twenty years of supervisory skills training. Click here to check it out.


It's been my position for a long time (which I've written about extensively over at my blog) that Toyota is in an enviable and perilous position. They never wanted to be #1, yet it was handed to them via GM's demise. They were known for quality, and then it faded. They had more demand than they had capacity, then it flipped. They were rarely implicated in product recalls or lawsuits, now they're commonplace. Toyota's long standing history was once a competitive advantage, now its a noose. I believe that Toyota has a multitude of silent problems that have been silenced for years, and are just now coming forward. Yes, Toyota is in troubled waters.
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You make several good points, Rodney. Let me underline one of them. When your company is a model for others and you're seen as excellent it's hard for insiders to take criticism seriously, whether it's from inside or outside. When that starts to happen, the groupthink lets you drift toward trouble with no warning.
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Wally, Regarding "Strengths Becomes Weaknesses." I've always believed that our greatest strengths are also our greatest weakness. We see this in individuals all the time, which directly ties into the Peter Principle.
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I think you and my mother were singing from the same hymnbook. Thanks.
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Wally, I hope you don't mind that I used your article as a basis for a blog entry: http://www.dogsadvicetoleaders.com/a-different-take-on-trust
Jo Ellen Roe
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Certainly not, Jo Ellen. I pick these because I think they're interesting and will spark ideas.
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In the Toyota article it discusses how Toyoda's attempt to change the company's culture will be difficult. We all know changing a company's culture can be extremely difficult, but do you have any advice on some initial steps as a leader to start that change?
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Thanks for coming by, Jennifer. I'll try to answer your question and hope that readers add their wisdom to the discussion. I think you have to change two things to change a culture.
You have to change the reward system. That means all the reward, pay, praise, and preferment. And you have to change the stories.
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