By Lauren Owen, www.redpointcoaching.com
Given the pressures faced by those heading organizations in difficult economic times, it’ss not surprising that many find the phrase “it’s lonely at the top†to ring true for them. Even CEOs of family-owned companies can find themselves feeling isolated in spite of (or in some dysfunctional families because of) being surrounded by other family members.
It’s easy to feel that you are the first or only one going through a particularly challenging situation.
When you’re the boss, for better or for worse, you set the tone for the organization. If you have doubts about a decision, you might be reluctant to share your concerns with your team members for fear of seeming weak or indecisive.
While you probably have close personal friends outside of work, you might not be able to maintain that same level of friendship with those inside your company for fear being perceived as playing favorites.
And unless your company has an outside board of directors or board of advisors, you don’t have anyone to whom to hold yourself accountable. Very few people can function at their highest level with total autonomy.
That’s why Urs and I believe so strongly in the power of CEO peer groups and advocate membership to our CEO clients. CEO peer groups consist of CEOs, presidents, and sometimes general managers, who agree to meet on a regular basis to share best practices, provide accountability and support to each other.
For several years, we organized and facilitated several peer groups within specific industries that included retail jewelry, pharmacy, and flooring. Because our groups were composed of like industry (but non-competitive) companies, our members travelled around the country several times a year to meet at each other’s locations.
As part of the meeting, members shared detailed financial information on their companies in a process they (half) jokingly called “getting naked”. Getting naked paid off: many times we saw our member companies growing faster and more efficiently than the solo companies, as measured by industry benchmark studies. Recently, one of my former jeweler members told me the suppport he received from his fellow group members help him survive the recession.
Some people who consider joining a CEO peer group are concerned about the time and expense involved and decide it’s not for them. Others don’t want their peers to see how poorly their companies are really performing.
That’s a real shame because these are often the very people who could benefit from a greater commitment to working “on the business’ versus’ in the business’ that membership in a peer group requires.
What Makes a Peer Group A Good Investment?
No doubt, joining a peer group is a big investment of time and money. How do you know you’ll be getting your money and time’s worth? Here are the elements we consider essential to an effective group:
- There’s a strong commitment to truth telling, even if the truth is uncomfortable at times. Do group members tell each other what they want to hear or what they should hear? (One of my groups had a favorite phrase: “The truth shall set you free, but first it will piss you off!”). Strong groups practice “Carefrontation”. They care for each other by confronting each other with the messages each needs to hear.
- While lifelong friendships can be formed between group members, the primary purpose is business. Do the group members share a similar purpose of business innovation, growth and excellence or are they there to socialize and tell war stories about the glory days of the industry?
- There’s a diversity of personalities and experiences. One of the greatest benefits from a peer group is access to different viewpoints which you can’t get if you act and think alike. Some of our best groups were composed of owners who represented several different generations who were not afraid to share their often opposing and usually equally enlightening opinions.
- Low tolerance for excuses. Strong group members provide accountability and sometimes a kick in the pants to fellow members. They see the better business and leader within each member and hold each other to this vision.
- It’s not a 50/50 deal. You should go into a group expecting to give 70% of ideas and expertise and get 30% back. If everyone brings that same expectation to the group, each member will end up getting more than their fair share of great ideas.
- A strong facilitator who will provide structure to meetings, keep discussions on track and model good coaching. (And not be too quick to squelch group discussion by stepping in with their sage advice all the time.)
- A strong commitment to confidentiality. “What happens in the room stays in the room” should be the mantra for any such group: giving members the confidence to share confidential information and situations.
- Your commitment. Are you willing to attend each meeting without fail? Are you ready and open to listen to some hard truths? And finally, are you ready to implement the suggestions and ideas you receive when you get back in your business?
Are you a CEO, President and/or General Manager interested in learning how you could benefit from being part of a peer group? Contact me at lauren@redpointcoaching.com.
