Young and Profiting with Hala Taha - Ron Carucci: Preparing for Leadership | E39

Episode Date: September 25, 2019

The next generation of leaders are rising to power! In #39, Hala yaps with Ron Carucci, founder and managing partner of consulting firm, Navalen. Ron has an impressive thirty years of experience help...ing executives tackle challenges relating to strategy, organization, and leadership. He has worked with start-ups to fortune 10 companies in over 30 countries. He’s also the author of “Rising to Power,” and his work has been featured in HBR, Business week, Fortune among other publications. In this episode, you’ll get a guidance on how to navigate a new leadership role by learning ways to avoid failure, how to improve self-perception to better manage weaknesses and why we should avoid binary decision making at all costs. Fivver: Get services like logo creation, whiteboard videos, animation and web development on Fivver: https://track.fiverr.com/visit/?bta=51570&brand=fiverrcpa  Fivver Learn: Gain new skills like graphic design and video editing with Fivver Learn: https://track.fiverr.com/visit/?bta=51570&brand=fiverrlearn If you liked this episode, please write us a review! Want to connect with other YAP listeners? Join the YAP Society on Slack: bit.ly/yapsociety Earn rewards for inviting your friends to YAP Society: bit.ly/sharethewealthyap Follow YAP on IG: www.instagram.com/youngandprofiting Reach out to Hala directly at Hala@YoungandProfiting.com Follow Hala on Linkedin: www.linkedin.com/in/htaha/ Follow Hala on Instagram: www.instagram.com/yapwithhala Check out our website to meet the team, view show notes and transcripts: www.youngandprofiting.com Learn more about your ad choices. Visit megaphone.fm/adchoices

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Starting point is 00:00:00 This episode of YAP is sponsored in part by Shopify. Shopify simplifies selling online and in-person so you can focus on successfully growing your business. Sign up for a $1 per month trial period at Shopify.com slash profiting. Hey guys, if you're an avid listener of Young & Profiting podcast, I'd like to personally invite you to YAP Society on Slack. It's a community where listeners network and give us feedback on the show, vote on episode titles, chat live with guests, and share your projects with the group.
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Starting point is 00:01:27 They start at just $20, but what you could learn is priceless. Check out the links in our show notes to learn more. You're listening to YAHP, young and profiting podcast, a place where you can listen, learn and profit. I'm your host, Halataha, and today we're speaking with Ron Karuchi, co-founder and managing partner of Consulting Firm, Neville. Ron has an impressive 30 years of experience helping executives tackle challenges related to strategy, organization, and leadership. He's worked with startups to Fortune 10 companies in over
Starting point is 00:02:02 30 countries. He's also the author of Rising to Power and his work has been featured in HBR, Business Week, and Fortune among other publications. In this episode you'll find out why some leaders fail while others succeed, had to improve our self-perception to better manager weaknesses, and why we should avoid binary decision-making at all costs. Hey Ron, thanks for joining Young and Profiting podcasts. It's great to have you on the show. Hey, how are you? Great to meet you.
Starting point is 00:02:29 Thanks for having me. So, Ron, I see that you are currently the co-founder and managing partner at Nevilleant, helping CEOs and executives pursue transformational change for their organizations and industries. How did you end up becoming interested in organizational change? And how did you make your way to become an expert in this field? Could you just share a bit about your career path with us?
Starting point is 00:02:51 Sure. I've always been fascinated, even as a little kid, by you know, the organizing of human endeavor. If there was a fundraiser at school, if there was a neighborhood stickball game, if there was a blocked party, I wanted to be the one organizing it. I loved the idea that people could come together and contribute things to a larger effort and produce something they couldn't produce on their own. That's always been fascinating to me. I began my career in the arts, so in a field far away from the one I'm in right now. And I was in Europe in the 80s working with a company that we had a contract with
Starting point is 00:03:23 the military and state department to do work with a variety of departments and both state department and all branches of the military. And we were at the cow and back then they didn't have the term diversity and inclusion, but had they had the term that's what this workshop would have been on. It was on how to deal with differences. And we were using a variety of arts and medium to bring about a conversation between military civilians, Germans, Americans, and of course the symbolism of being at the cow of what places the chapel was not lost in anybody. And in the middle of that conversation, a young soldier not much older than
Starting point is 00:03:55 me stood up and talked about how tired he was of being trained to hate. And my first thought was, well, I can't believe something I did up here on the platform made him think that. But then I wanted to know more. I wanted to understand, well, what was he going to do about that? So even after we processed as a group for a few minutes, his views and other people waiting about whether they agreed or not, we went out for beers afterwards because you're a munit, and you got for beers. And I think that was at the beginning of a turning point for me, how I don't know that
Starting point is 00:04:22 I could have named it at the time, but telling great stories from the stage was an interesting thing to do, but engaging other people in their stories, that was really fascinating for me. And I learned early on that I bore recently, and that was never gonna be boring for me. Every day was a new story. And so I think that's where I began
Starting point is 00:04:40 to move into organizational behavior and the field of industrial psychology and began to make my shift toward doing works that helped bring about change. Very cool. And so you said you started out as an art major. Did you learn everything about organizational change totally on the job or did you have any formal training
Starting point is 00:05:00 and education in regards to that? I went back to school and got my master's in organizational behavior and got training and took some entry-level jobs. I was able to build on my experience in the arts and the performing arts. So I was able to make the shift in my platform work more naturally because I'd done training work and I'd done other entry-level OD work before continuing on my career to purely into the OD space. The transition looks far more elegant in retrospect than it actually felt like when I was doing it. And so how did you get the idea to start your own consulting firm? So I think that idea sort of found me. I realized early on, I spent much of the early parts of my OD
Starting point is 00:05:36 career inside big companies. And what I learned was politically it's very difficult to tell the truth and part of being a great OD practitioner means you have to be honest about what's happening. So I realized that what got me to some political trouble inside companies actually got me paid pretty well outside the company because as a consultant you're expected to be a broker of the truth. So I realized you know if I was going to live out my passion for organizations it was going to have to be by not being part of one. And so I joined a large consulting firm in New York City and had a wonderful run there for eight years.
Starting point is 00:06:08 But that firm got sold to a much bigger firm. And then when that happened, you know, now you're part of a massive organization. It's about revenues. What's it about the craft anymore? And so a few friends and I said, you know, we love this work too much to just do it to make money for the firm. We can go do this on our own. So really what launched our firm was our desire to work together as colleagues and friends and to do great work for our clients.
Starting point is 00:06:32 The goal wasn't actually to go start a firm. So when we started our practice together, when it meant well, if we wanted to do large products, we were going to need help. And so we had our higher people. So the idea of growing a firm was sort of we backed into it by our goals for wanting other things in our life. Yeah. And so a lot of my listeners are at this stage where
Starting point is 00:06:52 they're an employee and they're considering becoming an entrepreneur. What were your major challenges when you decided to start your own business? And was there anything unexpected that you came across? It was all unexpected. I don't know that I ever set out to be an entrepreneur. And it's funny when I think about the journey was certainly an entrepreneurial one.
Starting point is 00:07:14 But whenever I hear folks thinking about their frustrations and being a big company or being in a cubicle farm or I don't want to work for the man anymore and they think the answer to that is go start my own business. I'm always really thoughtful about that's not for everybody. And you have to really understand the psychological and emotional challenges of what it means to go start your own business and go a bit distance. Having a great idea doesn't make you an entrepreneur, having a great personality doesn't make
Starting point is 00:07:40 you an entrepreneur, having people to sell things doesn't make you an entrepreneur. personality as a make you an entrepreneur, having people to sell things as a make you an entrepreneur. And so I tell people over time try a side gage, try a side hustle, experiment, because just the idea of marketing, we started our firm 15 years ago. The idea of leadership at organizational work was a side dish that were not that many specialized firms working in it. It was a unique niche. We were one of the best at it. 15 years later, everybody and their mother is a coach. Everybody, their uncle and their cousin, is doing leadership at organizational work. They use the same language. They have the same website pictures. They have the same blog
Starting point is 00:08:12 posts. There's literally, literally tens of thousands of practitioners now more than there was then, which means if we want to get picked, if we want to be in the decision path of a good client, of somebody we want to work with, we have to find some way to set ourselves apart from all that noise. And we never saw that coming. We never anticipated that. 10 years into our 15 year story now, that became a major requirement. I was an entirely new set of muscles.
Starting point is 00:08:39 None of us had ever built before. None of us wanted to. So when you're thinking about going out and starting your own business, start with the acceptance of the fact that you may think that your idea is the most unique brilliant thing in the world. And when entrepreneurs fall in love with their own ideas, that's the kiss of death.
Starting point is 00:08:53 You have to know that there are already gazillions of other choices for what it is average you think you're gonna do. And if you're not so clear strategically on what you can do differently, what you can do better and be honest about that and what it's going to take to carve yourself a space and already cluttered space. Well, your first job, big side, and because you also have your website and you'll print your business cards and you'll do networking meetings and you'll call yourself whatever you are, this thing you think you want to do, you need to really do your homework, really recognize that you're in for a multi-year journey to get to the place where you're really actually getting paid to do it and loving it.
Starting point is 00:09:34 And I think a lot of people, especially in Europe, you're set, how are just not clear on what that's going to be. They say, oh, I can do it. But I don't know that they really prepare for that journey, isn't it required? Yeah. I think you bring out a good point that you're marketing and positioning, like really has to be super clear and on point and professional and you need to stand out
Starting point is 00:09:51 and your value proposition needs to resonate with the people that you're trying to target. So I think you bring out a lot of great points there. Something very fascinating I found about you is that you've worked in over 30 countries. So that's very diverse. That means you're probably very familiar with culturally how different countries work when it comes to business. So is there any insight you want to share to specific countries and how they operate
Starting point is 00:10:16 when it comes to business? Well, I think just going in and accepting that there are different cultural nuances and expectations and laws if you have a desire to do business overseas. If you're going to have a website, just the fact that Europeans require you to say certain things about your website that Americans don't yet, but we will. You have to know that there are going to be people scrutinizing your website differently in China than they are in other parts of Asia versus the Middle East versus Europe. So I think recognizing that there are implications,
Starting point is 00:10:45 assuming that your consumer or your tire customer is the same in those countries, that you're solving the same problem is naive. So recognizing that what you think you're selling in, what they're actually buying may be very different. How people treat hierarchy or honesty or the idea of how people consume content, or whether it's even okay to consume certain content
Starting point is 00:11:04 in certain cultural contexts. How people treat women, how people consume content, or whether it's even okay to consume certain content in certain cultural contexts, how people treat women, how people treat younger people or older people. There's so many different cultural nuances that change how people will metabolize you, that if you don't know what those are, you're going to make a huge mistake. Early on, I was in Israel, and I was told that I would have to choose between working with Palestinian clients or Israeli clients, that I would have to choose between working with Palestinian clients or Israeli clients, but I would never be able to work with both. And I was defined.
Starting point is 00:11:29 And this is back in the 80s. This is so conflict, but it's not like it is today. Yeah. And I was in a Palestinian school in the West Bank. During the program, we were being paid for it. The school was very excited to have us there. And I just used the word Israel. And it was early on as I was introducing ourselves
Starting point is 00:11:47 for an hour and a half workshop. The minute I said the word Israel, you could tell the whole room shut down. And for the next hour and a half, it was torture trying to get people to participate in this workshop. I had no idea what I had done. I had no idea what I had done. But the fact that I used a word that they not only did not relate to, did not consider their country to be, but I had no idea what I had done, but the fact that I used a word that they not only did not relate to Did not consider their country to be
Starting point is 00:12:07 But I had offended them. Yeah, and I hadn't even known I'd done it So if you want to do business outside the borders of your own country do your homework Yeah, that's very touching. I'm actually Palestinian so it's so funny that you're bringing this up But yeah, I just think that certain topics are just so sensitive. And like you said, you need to do your homework and it really be well versed before you go ahead and try to conduct business somewhere else. Where do you think people should start?
Starting point is 00:12:33 Is it just researching online? Like is there anything specific that you recommend? Starting the country, I mean, what I did in your home country, how that was a stupid mistake. And what was so sad to me was this was a group of people at a school who really needed what we had to offer and who really wanted us there. And we could have been very helpful to. And I just been more educated and more informed. And frankly, I was an arrogant American. I just assumed, no, I could work with both. And it was just one word, right? That was before the internet was even a thing,
Starting point is 00:12:58 right? Today, there's plenty of information available to you about the country, the laws, the culture, the laws, the culture, the people you're trying to serve, what they're trying to solve for. But I think the problem is that Americans are arrogant. We universalize ourselves. We think we're the standard. So we assume that problems are challenges or opportunities we have and want. Everybody wants.
Starting point is 00:13:19 And that's just dumb. And so, you know, don't be arrogant about where you're starting from. Assume you don't know anything because you have what we don't. And start from a place of all I know is far from all there is to know. And assume you need six months of education, go visit the country, spend time there as a tourist, spend time talking to people in coffee shops, off the beaten path, just go be in the environment and meet the people you believe you conserve before you ever try to. Yeah. That's wonderful advice. So you're also the author of eight bucks.
Starting point is 00:13:51 That's pretty amazing. What motivated you to become a writer? This is going to sound like my entrepreneur started. I don't know that I started out to be a writer. I'm certainly not an author. You know, some people ask me, are you an author? I'm like, no, I am a writer writing Writing for me was the way to solve problems, right? So, my clients would ask me, or I'd start to see patterns with people I was helping of intractable, complex problems
Starting point is 00:14:15 that I didn't have an answer to, that they were asking or they were asking more intensely, or they had gotten themselves sideways because of. And I didn't quite know how to solve it, writing and researching became a way to go learn more. It became my way of, how do I figure this out? How do I go here, what other people have done? By nature, I'm an introvert, so I don't talk to people, so writing is a way to honor my introversion and just go inside and think and talk. I can do interviews and get data, but it's how I learn through writing. And then when I've learned, I can go talk about those solutions. Now writing is a way of marketing, right?
Starting point is 00:14:45 Today, any pathway to a client hiring me goes to the internet. Used to be that they talked to you first, and then if they liked you, they'd get your ideas. It's completely reverse down. Now they vet your ideas first, and if they relate to your ideas or like them, then they'll talk to you. So people can't find my ideas, if they can't find me, and what I think and how I feel and how my experience is with other types of people like them, they're never going to call me. And so now writing is a way to make sure that people understand who I am and how I think and how I think about the problems they're facing and if they can locate their story in my story, I raise the odds of a call. That's awesome, very interesting. So for this interview, I definitely want to spend a good chunk of time on what I think is your most popular book, Rising to Power.
Starting point is 00:15:30 You co-author that with Eric Hansen who's also a managing partner at Neville and I know that my listeners love to learn about power and influence based on my downloads. It's their favorite topic, so can't wait to get into this. So let's just kick this off. Your book is backed up by a 10 year study that you and Eric performed on executive promotions to assess why some leaders fail and others succeed. In the study, you found that more than 50% of leaders fail within their first 18 months of a new position. So what are the reasons for that? To talk to your listeners, I think this isn't just about career pathing up
Starting point is 00:16:05 atop. This is about career pathing where you're at today. So if you aspire to take on a position in life or in your organization that has broader influence, broader reach, broader visibility, these findings apply. If you desire to go start your own business, they definitely apply. But mostly because people start out with assumptions about that role that are flawed, right? So even in the selection process, we set people up to fail. So if you're in a job interview and people ask you or say things to you, let's sound like,
Starting point is 00:16:34 wow, look at these great apps you've built at that last assignment. That's what we need here. Or, oh my gosh, you've turned around two sales forces. We need that here. If you hear anything that sounds like people ask you to repeat your past successes, you are being set up to fail. Because the mythical implication is you have a mandate and a formula. And the mandate is to take your formula and apply it here.
Starting point is 00:16:59 So we've all seen the movie. I'm sure you've seen it too, Halla. What happens? The person walks in thinking they have this mandate to start doing what they done and they start repeating what they've always done. And they start pushing harder to apply their recipe on you and what happens? It doesn't work. So that they push harder. They slap harder. People get more resistant. They go to their higher manager and say, you didn't tell me it was this bad or Oh my god, your people are done more than I thought. And so now your diagnosis becomes an indictment. And you have completely skipped over the most important parts of what it means to
Starting point is 00:17:31 begin in a new role or assignment which is don't hit the ground running, hit the ground learning. Yeah. And you skip the whole point of context of learning the context and accepting the fact that it has as much to change in you as you believe you've been told to change in it. And if you skip that part, you know, then what happens is within a year, we've all held the classic words, it wasn't a good fit. And out you go. Yeah, that's so interesting. And if I remember correctly, 67% of executives struggle to let go of work from their previous roles. So how does that play into failing? The classic micromanager, right?
Starting point is 00:18:07 So one of the things that happens when you elevate to a higher altitude in a rotation is your timelines change, right? The things you're responsible for are now measured in months and years instead of weeks and months. The ambiguity and uncertainty that comes with decisions you make or outcomes you're controlling is uncomfortable. The role you came from was in the middle of the organization or at the bottom of the
Starting point is 00:18:26 organization is much more about today's results, tomorrow's results, and you became really good at that. It's what you got reinforced for. It's what you got applauded for. It's what set yourself apart. It's probably got you the promotion in the first place. So now you're in this uncomfortable spot of feeling uncertain, of feeling like an imposter and I mean, one of the classic things we hear newly promoted leaders say is I feel like a fraud. I'm going to get found
Starting point is 00:18:48 out. And so you naturally reach back for the things you're already good at. You reach back for the things you've accomplished before and you take with you the things you're good at under the justification of, well, they're not really ready to take it over yet. So I'm just going to keep doing it until I think they're ready. Well, the reality is they're never going to be as good as you at, right? Because you get it for much longer. You have to let go of what you used to be good at in order to get good at the things you're now responsible for. And if you never let go, label the micromanager and control freak and all these other labels that get put on people who are still doing the job they left.
Starting point is 00:19:19 Yeah. And you're never going to learn the job you got. So in your book, you call this having an anthropologist mindset. Can you talk about that a little bit? Yeah, one of the things I love about anthropology is you enter a space as a complete learner, right? Everything is data. And the problem is, when you come in from outside the organization, you really are alien, right?
Starting point is 00:19:37 It is a foreign language. But when you come up with the organization, the problem is you already know a lot about the organization. You already have biases about the culture. You have biases about the people you're working with. If you got promoted in your own department, now it's more complicated by the fact that your bosses are now your peers.
Starting point is 00:19:50 Your peers are now your director of ports. And so everything you know about them could be flawed. And so letting go of what you think you know in order to learn becomes even harder. But you've gotta start out with a a notion of what does this all mean? How did it get to be this way? And even though you may think you have deep insights about what's happening and some of those insights may be correct, you should start with the assumption of this is all brand
Starting point is 00:20:16 new. And if I'd never seen it before, what questions would I ask? What would I want to know more of? How would I go about learning? How can I get reacquainted with people who I think I know, but now I now have a different relationship with. And really study the environment as if it were a brand new world to you. Because you won't know how your biases are getting in the way
Starting point is 00:20:35 unless you first discover what they are. Yeah, sounds very practical and relatable, honestly, because I'm sure many of us are getting promoted and need to understand how to navigate the landscape once we do. Something else that really fascinated me in your book was this concept of summit shock or altitude sickness. And you relate this type of analogy illustrates how executives experience debilitating and disorienting symptoms similar to when we climb high altitudes without giving our bodies proper time to adjust to lower levels of oxygen.
Starting point is 00:21:09 So can you help us understand this concept of summit shock more and explain how idealization and cognitive dissonance play into all of it? Young and profitors, do you have a brilliant business idea but you don't know how to move forward with it? Going into debt for a four-year degree isn't the only path to success. Instead, learn everything you need to know about running a business for free by listening to the Millionaire University podcast. The Millionaire University podcast is a show that's changing the game for aspiring entrepreneurs.
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Starting point is 00:24:36 Shopify is the commerce platform that's revolutionizing millions of businesses worldwide. Whether you sell edgy t-shirts or offer an educational course like me, Shopify simplifies selling online and in person so you can focus on successfully growing your business. Shopify is packed with industry leading tools that are ready to ignite your growth, giving you complete control over your business and brand without having to learn any new skills in design or code, and Shopify grows with you no matter how big your business gets. Thanks to an endless list of integrations and third party apps, anything you can think of from on-demand printing to accounting to chatbots, Shopify has everything you need to revolutionize
Starting point is 00:25:15 your business. If you're a regular listener, you probably know that I use Shopify to sell my LinkedIn secrets masterclass. Setting up my Shopify store just took me a few days. I didn't have to worry about my website and how I was gonna collect payments and how I was gonna trigger abandoned cart emails and all these things that Shopify does for me with just a click of a button, even setting up my chat bot was just a click of a button.
Starting point is 00:25:38 It was so easy to do. Like I said, just took a couple of days. And so it just allowed me to focus on my actual product and making sure my LinkedIn masterclass was the best it could be. And I was able to focus on my marketing. So Shopify really, really helped me make sure that my masterclass was going to be a success right off the bat and enabled focus and focus is everything when it comes to entrepreneurship. With Shopify single dashboard, I can manage my orders and my payments from anywhere in the world. And like I said, it's one of my favorite things to do every day is check my Shopify
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Starting point is 00:26:47 If you ever hiked up a mountain and you know suddenly, you're getting nauseous, you're dizzy, you're struggling to breathe, because the errors change and your lungs are having to adapt. And so great mountain climbers will climb up. They'll acclimatize, they'll climb back down, spend more time there, climb up a little higher,
Starting point is 00:27:02 and they elegantly trying to just to help their bodies and their minds adapt. The same is true in an organization. When you get to the top of an organization, politics are different. As I said before, what they're measuring is different. Relationships are different. How you're expected to talk is different. Suddenly, now people are concocting you.
Starting point is 00:27:22 So now you're more visible. So your life now plays out on a jumbo tron. People are making up versions of you. People are attributing words you have ever said. You have to behave as if you have a bullhorn stacked you on a 24-7. And most leaders show up and they want to be authentic. They want to just be themselves. I think I just want to be me.
Starting point is 00:27:41 And I have to coach my clients to realize, well, yeah, but there's more than one of you now. There's than one of you now. There's a lot of you. And if you're leading people who are further away from you, or they're virtually in a different country, you're concocting. You're a version of yourself. And if you don't learn to control the narrative of how people metabolize you, they're going to make things up you don't want them to understand.
Starting point is 00:27:59 So yes, you have to be authentic and you have to be you, but you have to recognize that who you are to the people you're leading on guiding or responsible to when they're not directly in your presses 24-7 is different than it used to be. And many leaders just struggle to accept that. Yeah, I love this topic. I love the topic of distortions and altered perceptions of people. So let's talk about this more. Once we take an elevated position in our companies, you mention a lot of distortions in your book like larger than life, the megaphone effect, sifted data, and aliens next door. Could you walk through some of these and explain it to our
Starting point is 00:28:35 listeners? I think it's so fascinating. Yeah. So the larger than life is the jump on issue, right? It's the, you give a speech on a video and now instead of talking to 30 people, you're talking to 300 people, instead of talking to 100 people You're talking to a thousand people the amount of biases and perceptions of issues of power issues of leadership It's just of culture that you are now getting filtered through is endless and while you cannot control all those narratives You cannot assume that what's in your head is being matched by their interpretation network So your requirement to lead out loud more to say say things like, what I want you to hear is this. I don't want you to misunderstand this. What I hope you'll hear is the reason
Starting point is 00:29:12 I'm asking for your trust is this. If you took the job from a boss, who they loved, you know, hated. If you took it, the job over from a boss, they hated. You're now hated more, right? So there's a history. The story you stepped into didn't start with you. And you've got to appreciate the biases and beliefs that were shaped by the story before you. And speak to those honestly. You have to know people see who you are and know who you are in an appropriate way. Obviously, they have to be boundaries. You have to recognize that people will want to carry favor with you. People who used to go out for beers with, right, who are now two levels below you.
Starting point is 00:29:48 I'm going to come up to you and say, hey, how's it going? They're going to want the inside scoop and they're going to want special favors and they're going to assume that we're still buddy buddy. And now you have all this power. So you're going to help me out, right? And you have to set those boundaries and say, actually, no, I'm not. Yeah. Or we used to be peers.
Starting point is 00:30:05 Now I'm your boss. How is this going to go? I used to go out for beers with you. Now I can't. But now the flip side of that is you're going to be lonely. You're going to see everybody going out for beers that you used to go with and you can't. And how do you deal with that loneliness? How do you deal with that?
Starting point is 00:30:19 We are different now. And you can't give in to the notion of, hey, I'll go out with them. And I'll be one of the gangs so they can see I'm still me. That's a bad idea. It's a two way street of adjustment, right? They have to adjust to a new role of you and you have to accept the limitations of who you are now in this role. And that's really hard work.
Starting point is 00:30:36 Yeah. It does sound like a lot of hard work. So do we have to have better self-perception and better understand our own weaknesses so we can manage them better? We do. We have to understand like better self perception and better understand our own weaknesses so we can manage them better. We do. We have to understand who we are. We have to assume as a leader, we're all bad observers of our own reality, right? We don't have a luxury of being able to see how we operate and how we're spending.
Starting point is 00:30:55 So if you don't have a source of reliable feedback of somebody who's got your back, who's got eyes on you, who can tell you in meetings when you're being misunderstood, when you is coming across like a jerk, when you're too passive, when you're too assertive, when you're not listening enough. If you don't have somebody who's regularly helping you calibrate how your intentions and your impact are matching or not, you will dangerously widen that gap. And it's obviously even more likely to happen at a high altitude when there's more opportunity to be misjudged. And it's obviously even more likely to happen at a high altitude when there's more opportunity
Starting point is 00:31:25 to be misjudged. And so you've got to have a source to feedback. You've got to have a source of calibration for people to be able to tell you, this is working, this is not. Yeah. And so I know in your book, you mentioned the importance of like detecting patterns
Starting point is 00:31:39 to clear up any organizational distortions. Can you talk about this a little bit? Like why are patterns so important? And how can a leader start to understand the patterns that are going on so they can clean them up? Well, so there's economic patterns or cultural patterns. There are communication patterns. But let's do a culture as an example.
Starting point is 00:31:58 So you may not realize that your culture is a very collusive one. That it's a culture of secrecy, and it's a culture that doesn't value openness yet, or it's too afraid of candor. But at a certain altitude, you're just part of the landscape. But now, when you're in a leadership role, and people are bringing you to start information,
Starting point is 00:32:15 or they're couching what they say, or they're not giving you the full scoop, and you know it, or they're coming to you and saying, hey, Hala, you know, I don't know if you've noticed, but Bill seems to be in a bad mood today. Can you give me some coach and how to work with Bill? Hoping that what you'll say is, oh, you have Bill's a jerk or I'll talk to him or oh, I know Bill is so moody. What you used to do. Well, now suddenly you're seeing a pattern of, wow, we are not honest with each other.
Starting point is 00:32:40 And people aren't being honest with me. Now suddenly the cultural pattern that you are once part of and participated in is now a problem for you as a leader. How do you become counter-cultural enough to get people to be more respectful and honest with you and with each other? And so now you have to decide, do I take the bait about Bill? Or do I say, you know, that's kind of inappropriate. Why don't you talk to Bill about that? If you have a problem with Bill, what are you talking to me for?
Starting point is 00:33:07 And maybe Bill has something going on at home that's he's having a bad day. You have bad days. Why don't you give him a break? Now you have a choice to say something honest, to help somebody be more successful, but that's counter-cultural. And risk having to say, well, gee,
Starting point is 00:33:22 what made you such a jerk? Or sorry, I asked, you know, and be immature about it, but that's what leaders do, right? Leadership is the ability to disappoint people at a rate they can absorb. And the moment with someone's trying to invite you into an unhealthy pattern, you have to disappoint them. This reminded me of another part in your book that I really resonated with, which was the fact that, you know, nothing is more dangerous than pushing decisions up in an organization.
Starting point is 00:33:46 I found out to be extremely relatable and valuable. So can you share why pushing decisions up is detrimental to business and what a good decision-making framework looks like? So every decision comes with risk, comes with accountability, comes with exposure. And if you have a culture that's micro-manages, if you have a culture that doesn't value empowerment, that decision rights have not been distributed to the places where they most belong, because a great decision is best made closest to the place that's most implemented. The further away from a place of impact, a decision is made, the more unreliable it's going
Starting point is 00:34:17 to be. But we think I'm casting off risk. When I push it up to the people who I perceive have more authority, more power, and therefore are more protected from risk, I think I'm off the hook. Of course, that's not true, right? I still have to live with the implications of a decision because when it comes back down, it may be a bad one. And now I have to implement a bad decision.
Starting point is 00:34:37 So the place to construct a great decision is for you to understand what is the right amount of my intuition and experience, what is the right amount of my intuition and experience, what is the right amount of data, and where shall I get the data from, and what's the right amount of other people's voices, and especially disagreeing voices, that I need to include in this decision so that I get to an outcome we all can live with. Most people get stuck into dangerous binaries. Well, we can even do this or this.
Starting point is 00:35:02 And the minute you hear the menu of choices reduced to two, you can automatically assume you're going to make a bad decision. Because there is no problem in the world. There is no issue that you'll be solving for which there are only two options. And so if you're only going to explore two, you should assume that some of the better ones got edited out. And so what you want to do is open up the menu and ask your team, well what else can we do? Well who does agrees with this? Well okay that's what your fact base says, who's got
Starting point is 00:35:29 tooling fact bases for that? And really open up the conversation to make sure that the right data that you wouldn't normally have access to, the right intuition based on your experiences with the same issue, and the right other voices who are going to have to live with the decision when it's made, whether they agree with it or or not have been included in the choice so that when you make the choice you can move forward. And if you abdicate all that and push the decision up, you really impair commitment to that decision, you impair the ability to learn about why it might be flawed and you raise the risk that it's not going to go well when you try and bring it to life.
Starting point is 00:36:04 Yeah, I think that's a fantastic advice. You have like a real life example of when, you know, you burn a situation and they were using just binary choices and that you helped them think bigger than that and found a better solution. Yeah, well, so you see this now today because our whole world is so polarized, everything becomes politicized,
Starting point is 00:36:23 so binarism is natural, right? You know,, they, it's second amendment, organ control, border control, or immigration. We're so predisposed to trigger happy binaries that we've come conditioned to see the role that way. And because so many of our debates play out on social media, we just have sequential posting, right? My conversations are, I post the new post, and we're not listening. So I was with the client once who was deciding whether or not to launch a new product that was in their pipeline. And the debate became down to launch or not launch. And so you had people advocating for their point of view. Well, the reality was there was a need in the market for the product, and there were flaws in the design. Right? None of that was being
Starting point is 00:37:02 discussed. It was just people whose bonuses were being padded by the idea of launching it. We're advocating to launch it. People who would have to live with the risks of cleaning if the mess when it got launched were advocating to not launch it. So nobody was stepping back and asking the question of, do our customers want this and what need are we meeting and how can we invest in that need? So I hold them out to say, let's discuss the benefits and flaws in the product, let's discuss the need in the marketplace, and what's going to happen if somebody else launches a solution instead of us. And let's discuss the real issue here, which is we're trying to compete as a business
Starting point is 00:37:34 and win. Not cover our asses with launching versus not launching. Right. So once we dug up the real issue being discussed was what's in it for me? Instead of how do we serve our clients and compete well, we couldn't change the conversation. Got it. Thank you for sharing that. So, back to power. I know that there are three different types of power, positional power, relational power, and informational power.
Starting point is 00:38:01 Could you unpack this for our listeners? Sure. And by the way, if one of my TED Talks is on this very topic, so if people want to learn more about what I can share here, they can go watch my TED Talk on being powerful. Awesome. I'll link that in our show notes. Part of what I say that, how it is, because we often
Starting point is 00:38:15 associate power with positions, right? With the, you know, if you have a big job, you have more power. We all have sources of power available to us. We all have relationships. We all have sources of information and data.. We all have relationships. We all have sources of information and data. And we all have something in our role that makes us influential by our position. But part of the reason we wanted to study power was we all have seen it abused.
Starting point is 00:38:36 We all know what happens when people corrupt power, use it for self-interest, use it for immoral gain, and hurt a lot of people when they do it. So we assumed, yeah, that's what we were going to find. And that certainly was there. It was not the greatest abuse of power. The greatest abuse of power we saw in leadership was the abandonment of it. People are too afraid to use the power that comes with their role and setting it aside in exchange for creating favor, buying popularity, budding up, doming out way too many yeses to please people because they didn't want to say no. by and popularity, budding up, and don't hang out way too many
Starting point is 00:39:05 yeses to please people because they didn't want to say no. And we label that abuse of power as, oh, he has no backbone or she's just insecure. And the reality is, it's every bit as destructive as self-interest.
Starting point is 00:39:18 Because you're confusing an organization, you're deluding its resources, you're blurring its focus, and you're institutionalizing mediocrity when you won't use the power that comes with your position. And so the beautiful part about having power is that somewhere in your sphere of influence is something that's unjust. There's a process that's unfair. There's a practice that's unfair.
Starting point is 00:39:38 And with your position comes the ability to write that injustice. You have information. You can change people's minds. You have the ability to write that injustice. You have information. You can change people's minds. You have the ability to help people see the world differently with information. You have the ability to change distorted and narrow perspectives with your information. And in the context of your relationships,
Starting point is 00:39:54 you have the ability to invest in people. You have the ability to help others succeed. You have the ability to help people discover versions of themselves that hadn't thought of because of what you see in them. Yeah, Pam, if you're ready to take your business to New heights, break through to the six or seven figure mark or learn from the world's most successful people,
Starting point is 00:40:10 look no further because the Kelly Roach show has got you covered. Kelly Roach is a best-selling author, a top-ranked podcast host and an extremely talented marketer. She's the owner of not one, but six thriving companies. And now she's ready to share her knowledge and experience with you on the Kelly Roach show Kelly is an Inspirational entrepreneur and I highly respect her. She's been a guest on YAP. She was a former social client She's a podcast client and I remember when she came on young and profiting and she talked about her conviction marketing framework It was like mind-blowing to me. I remember immediately Implementing what she taught me in the interview in my company and the marketing efforts that we were doing and as a marketer
Starting point is 00:40:50 I really really respect all Kelly has done all Kelly has built in the corporate world Kelly secured seven promotions in just eight years But she didn't just stop there. She was working in 95 and at the same time she built her 8-figure company as a side-hustled and eventually took it and made it her full-time hustle and her strategic business goals led her to win the prestigious Inc. 500 award for the fastest growing business in the United States. She's built an empire she's earned a life-changing wealth and on top of all that she maintains a happy marriage and healthy home life. On the Kelly Road show you'll learn that it's possible to have it all. Tune into the Kelly Road Show as she unveils her secrets for growing your business. It doesn't matter if you're just starting out in your career or if you're already a seasoned entrepreneur. In each episode, Kelly shares the truth about what it takes to create rapid,
Starting point is 00:41:37 exponential growth. Unlock your potential, unleash your success, and start living your dream life today. Tune into the Kelly Road Show available on Apple Podcasts, Spotify, or wherever you listen to podcasts. Hey, yaap fam! As you may know, I've been a full-time entrepreneur for three years now. Yet media blew up so fast, it was really hard to keep everything under control, but things have settled a bit, and I'm really focused on revamping and improving our company culture. I have 16 employees, so it's a lot of people to try to rally and motivate, and I'm really focused on revamping and improving our company culture. I have 16 employees, so it's a lot of people to try to rally and motivate,
Starting point is 00:42:08 and I recently had best-selling author Kim Scott on the show. And after previewing her content in our conversation, I just knew I had to take her class on masterclass, tackle the hard conversations with Radical Cander to really absorb all she has to offer. And now I'm using her Radical Cander method every day with my team to give in solicit feedback, to cultivate a more inclusive culture, and to empower them with my honesty. And I can see my team feeling more motivated and energized already. They are really receptive to this framework and I'm so happy because I really needed this class. With Masterclass, you can learn from the best to become your best,
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Starting point is 00:43:59 Get unlimited access to every class and right now as the app listener, you can get 15% off when you go to masterclass.com slash profiting. That's masterclass.com slash profiting for 15% off an annual membership. Masterclass.com slash profiting. So our relationships and our information and our positions allow us to change the world for the people around us in ways that not using those sources of power don't. And we all want to have impact. We all want to feel a don't. And we all want to have impact.
Starting point is 00:44:25 We all want to feel a sense of purpose. We all want to feel like we matter. And it's your source of power that allow you to have impact, that allow you to make a difference around you. And so for goodness sake, use them. Yeah. So what's relational power? Like how is positional power, relational power, and informational power different?
Starting point is 00:44:42 Did you cover all three specifically? Yeah. So if I asked you in your organization organization who are the 10 people in any direction from you bosses peers reports that you most rely on to get your job done and Who are the 10 that most rely on you? Those 20 people are people you have power with You can influence with they are trying to be successful in their roles and you couldn help them be successful. You have to find out how you can be more committed. I have one guy in my study, one of the most influential leaders in I've ever met, but has been asking me same three questions, his whole career, even when he was an entrepreneur. He'd ask people,
Starting point is 00:45:19 how can I be a better colleague to you? He'd ask, what are you working on? That's really important to you. What products are you working on? What assignments you're working on that are super important to you? And then he'd ask, how can I help? What can I do to help you with that really important thing? And the amount of power in those three questions, your information power, the ideas you'll offer, your relationship power, is the investment you'll make and your position of power may be the resources you help them gain or the connections you help them make or the priorities you help them become. So just those three simple questions demonstrate tremendous commitment and power to having impact. That's awesome. So these days I know that CEOs are younger
Starting point is 00:45:57 than ever, less experienced than ever. What are the positive and negative implications of this that we should consider? Just if you're going to rise to positions of power sooner in your career than you're prepared for, just know you're not ready. And don't assume that you're entitled to the role. So many people, and this is, you know, people characterize millennials this way. I'm not sure it's all true, but millennials were a generation. They were raised being told they could change the world.
Starting point is 00:46:22 And they believed us. So now we have to get out of that way and help them do it, but it doesn't mean they're ready to. So how do we help them get ready? And they have to start with the assumption of I'm not prepared. I don't have the emotional intelligence, I don't have the resilience, I don't have the experience base,
Starting point is 00:46:35 I don't have the knowledge base. So therefore, if I'm gonna start into a position where there are tremendous gaps and whether or not I can succeed, what am I gonna do about that? It's okay that those gaps are there. It doesn't mean you're flawed. But for goodness sake, if you try and hide those gaps
Starting point is 00:46:49 and keep people from seeing them, you're for certain going to set yourself up into fail. So who can you surround yourself with? What coaching can you get? Where can you train? What experiences do you need? For goodness sake, get a therapist. You should absolutely be in therapy.
Starting point is 00:47:04 Every executive should be in therapy as a sort of an absolute requirement. Because if you don't know your origin stories, you're definitely going to pass those pathologies on to people. You're not going to know your triggers, you're not going to know your reaction. And if you're moody in the middle, you're going to cast a dark cloud of a top. If your quote unquote results oriented in the middle, you're going to leave a wake-up bodies behind you at the top. If you have quote unquote impatience middle, you're gonna leave a lick of bodies behind you at the top. If you have quote unquote impatience problems, you're gonna have rage problems.
Starting point is 00:47:29 Those pathologies only get bigger with more influence. And so if you don't know your origin stories and how they have shaped who you are and how you see the world, you're gonna hurt people. So get help. It's perfectly okay that you're arriving into a role in advance of when you might be fully ready for it But if you don't take responsibility for those gaps, you're gonna hurt people and you're gonna ruin your career
Starting point is 00:47:52 Yeah, I think that's absolutely Fantastic advice. You recently were on my friend Jordan Paris's podcast growth mindset University And you mentioned that you believe that a lot of leaders currently lack strategic clarity. What is the importance of strategic clarity and how can we become better at that? So I just recently been put at a 15 year longitudinal study, so a follow up study to our 10 year study that you mentioned before on an organizational honesty. And what predicts whether or not people will lie with all the truth in organizations. And the absence of strategic clarity, absence of knowing who you are, makes it three times
Starting point is 00:48:27 more likely that people will lie with all the truth in your organization. What's the first thing people want to do when they start a company? Do their mission in values? Dumb idea. But we all have companies that have billboards or posters that talk about his or her mission, his or her purpose, his or her values. And all people do is roll the rise. Why?
Starting point is 00:48:44 Because we're not living them. And we all know we're not living them. Well, the minute you create duplicity like that, when you say one thing and do another, you've now said it's okay in general to say one thing and do another. So now you've institutionalized duplicity. So if you don't really know who you are, you're going to make it up as you go. Yeah. And so if you go around your table of your company and you say, what's our strategy? You already know you're going to get as many different answers as there are people in the room. The fact that there are that many different answers
Starting point is 00:49:10 to who you are and where you're headed means the resources are being diluted. People are lying and making things up to justify their jobs and their budgets. People are afraid of the truth. And you just create this fragmentation of an organization by simply not being who you say you are. So the first thing to know is knowing who you say you are and then actually embodying who you say you are. And so that's what I mean by strategic clarity. And when
Starting point is 00:49:35 you haven't got that, you are setting the stage for disaster. Awesome. Well, thank you so much, Ron. This was such a great interview. Where can our listeners go to find out more about you and everything that you do? Thanks so much, Holly. It's been a lot of fun. Yes, so come visit us and hang out at navlinthnavaelt.com. We've got some great videos and resources. If you're leading some major change of transformation in your life or somebody else's, we have a free ebook for you called Leading Transformation.
Starting point is 00:50:02 And that's at navlinth.com slash transformation. We have a quarterly magazine you can sign up for for you that has all kinds of things about self-development leadership and teams. We're doing a whole series on teams right now. We have a phenomenal rich blog that has all kinds of insights and content by all of our writers. So it's a phenomenal content-rich environment to come hang out with us on. So come visit. Great. Thanks so much Ron. It was a pleasure to have you on the show. How long my pleasure, thanks for having me. Thanks for listening to Young & Profiting Podcast.
Starting point is 00:50:30 If you enjoyed this episode, don't forget to write us a review on Apple Podcasts or wherever you listen to the show. Follow YAHP on Instagram at Young & Profiting and check us out at Young & Profiting.com. And now you can chat live with us every single day on Yacht's side on Slack. Check out our show notes or young and profiting.com for the registration link. You can find me on Instagram at Yacht with Hala or LinkedIn just search for my name, Hala Ta-Ha. Big thanks to the Yacht team for another successful episode.
Starting point is 00:50:57 This episode I'd like to give a special shout out to all of our listeners. It's so cool to hear from so many of you who are enjoying the show, whether it be an iTunes reviews, SoundCloud or YouTube comments, social media posts, or private LinkedIn direct messages. It makes all this work so rewarding and gives our team the motivation to keep going strong. Thank you for spreading the word about YAP and taking the time to give us feedback. We appreciate it so much. This is Hala, signing off. Are you looking for ways to be happier, healthier, more productive and more creative? I'm Gretchen Ruben, the number one best-selling author of the Happiness Project. And every
Starting point is 00:51:37 week, we share ideas and practical solutions on the Happier with Gretchen Ruben podcast. My co-host and Happiness Guinea Pig is my sister Elizabeth Kraft. That's me, Elizabeth Kraft, a TV writer and producer in Hollywood. Join us as we explore fresh insights from cutting-edge science, ancient wisdom, pop culture, and our own experiences about cultivating happiness and good habits. Every week we offer a try this at home tip you can use to boost your happiness without spending a lot of time, energy or money. Suggestions such as follow the one minute rule.
Starting point is 00:52:08 Choose a one word theme for the year or design your summer. We also feature segments like know yourself better where we discuss questions like are you an over buyer or an under buyer? Morning person or night person, abundance lever or simplicity lever? And every episode includes a happiness hack, a quick easy shortcut to more happiness. Listen and follow the podcast Happier with Gretchen Rubin. You're getting a diploma.
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