I was talking with a CEO during one of the stock market’s recent wild fluctuations.  As he reflected on what is happening in the broader economy and what it will take for any business to succeed over the next 10 years, he noted two things:

1. The overall capacity in his industry has shrunk.  If demand rises quickly back to previous levels, the industry won’t be able to react quickly enough.
2. Since the “pie” itself is smaller, it’s critical that businesses figure out how to get a bigger piece of it.  In order to do that, he focused on the need to position your company well, finding agreement within your organization about how you are different — or should be different — than your competition.

Some businesses may wait for a “rising tide to lift all boats” — those broader economic conditions that will improve conditions for everyone.  On the other hand, is it wise to bet that conditions will improve substantially soon?  You may want to follow the advice of this CEO and truly distinguish your organization in some way.

What is unique about your organization?  If there is nothing truly unique, what are you the best at?  And does this characteristic generate loyalty from your clients and customers?

Every organization wants to be in a groove.  But no one wants to be in a rut.  The key is to be able to recognize when you’re in a rut and then (figure out) how to get out of it.

Personal change is difficult for most of us — think old dogs and new tricks.  Organizational change is more challenging — think a bunch of old dogs and many new tricks.  A recent article in stategy+business draws our attention to the importance of understanding what neuroscience has to teach us about how individuals learn new behavior and apply it to the organizations we lead.

When I attended the Neuroleadership Summit last fall, I learned that over 90% of our actions are rooted in habits.  In order to change we need to be “mindful” of what we’re thinking and doing.  That is the first step – recognizing the need for change – in what the authors of the article call “The Virtuous Cycle of Focused Values.”  Greater awareness of your current situation and the future you want to co-create with your colleagues is essential if you want to initiate either personal or organizational change.

The awareness of reality is often our biggest challenge since it is so easy to be disconnected from what is really happening in the organizations we lead.  We often believe that what we hope is happening is actually happening.

Are you in a groove or a rut?  And how are you incorporating objective perspectives to help you continually assess the answer to that critical question?

Why should a company invest time and money in clarifying and articulating its identity?

Companies invest in developing products, services, and in new product launches.  There are metrics that attempt to correlate the relationship between marketing investment and return on that investment.  But what about your identity – what you stand for as a company? Can we measure the value of understanding who you are as an organization?

This week, I read an article by Dan Pink on this very subject.  He focuses on purpose (only one element of a company’s identity), and he sheds light on the research of Adam Grant at the University of Pennsylvania’s Wharton School.  It’s a small study and it might not be convincing to everyone, but it demonstrates the effectiveness of employees connecting to a purpose. Studies like this begin to quantify the importance of organizational identity.  It’s a great article and worth the time.

I went to hear Carlos Brito, CEO of AB InBev, speak last week at Washington University.  It was his first public appearance in St. Louis, and I was excited to have the opportunity to hear him speak.

This town went nuts when it heard that our beloved Anheuser Busch was going to be bought by InBev.  It was as if the crown jewel of St. Louis was being stolen.  Washington University sent out notices before the event regarding its intent to have an open conversation and to not bring in signs or protest the event.  That made it all the more intriguing.

I read Joe Nocera’s recent Talking Business column and the second to last paragraph jumped out at me. The article was about the real reason H.P.’s board ousted Mark Hurd. Nocera argues that Hurd might not have been the type of leader that H.P. needs long term. In that paragraph he quotes a former H.P. employee who makes the argument that what H.P. needs is a leader with Carly’s (former CEO Carly Fiorina) strategic sense, Mark’s operational skills, and Lew’s (former CEO Lewis Platt) emotional intelligence.

I’m sure you can guess that from Dialect’s perspective these are very different qualities.  It would be a truly rare person who excelled in all of these areas. In fact, the three qualities described are three of the filters that we talk about in Uncommon Sense. Many of us grew up being told that we could accomplish anything we put our minds to.  Yet, as we learn more from neuroscience how our brains work, it becomes clear that we can’t excel at everything. And I believe Nocera’s column articulates three very different strengths that require very different kinds of wiring. Of course, I’d love to hear examples of leaders who possess all three of the qualities Nocera outlines.  Any takers?

I was reading another post by Michael Hyatt this morning, and it struck a cord with what we do at Dialect and why I wanted to start the company.  Michael was asked a simple question in an interview: “Which is most important – mission, core values, or vision?”

Michael answered that they are all equally important and interconnected.  They are distinguishable but inseparable.  You can read the post here.

Then the comments came rolling in.  One comment on Michael’s post says that he has heard that values are defined first.  Another person was more animated about the need for values to come first.

In my experience, leaders start from many places.  We’ve done work with companies were the leader sees purpose as being the glue for everything else.  In other situations, we’ve had leaders emphasize shared values and the strategy.  In other situations we’ve seen leaders who start with strategy and return later to what it will look like when they get there (vision) and what beliefs and behaviors will be necessary to accomplish it (values).

What do you start with at your company?