Yesterday I wrote that trust is one of the most valuable economic assets; it is the foundation of all stellar business, organizational and individual performance. Today I read that Stephen M.R. Covey (the son not the father) is challenging his readers with the idea that trust is a hard-edged economic driver rather than just a soft social virtue. And did I mention that Daniel Kahneman was awarded the 2002 Nobel Prize for economics for his work integrating psychological research into economic science which concluded that business is more about emotions than most businesspeople care to admit? That emotion we feel called trust has been a part of a leader’s lexicon for generations. For those who have used every phrase, every key word, every sound-bite and now every twitter to get leaders to pay more than a passing, inattentive glance to their interpersonal impact, try this one…trust is the leading indicator of your success.

 

Leaders…It’s time to stop looking at your investment portfolio and start looking at your leadership portfolio. 

Many attribute today’s economic conditions to a lack of leadership.  Matthew Bishop, author of Essential Economics, states that trust is one of the most valuable economic assets, hard to create but easy to destroy.  In my work with leaders in all industries at all levels the premise that trust is the foundation of all performance proves itself over and over again.  Trust is a fragile commodity.  Trusting the leaders around us (at work, in our communities, in our government, local and global) is the fundamental step to regaining leadership as the competitive advantage that it once was. 

How is your leadership portfolio performing?

We all know how our investment portfolios have been performing lately; poorly.  They are mere shadows of their former selves.  Yet, do you know how your leadership portfolio has been performing? 

People and organizations operate with many portfolios; financial portfolios, product portfolios, online career portfolios.   Like an artist’s portfolio, which portrays selected good work, we have portfolios of our work as leaders.  A leadership portfolio is evidence of your good work, the positive impact that you have on the business, the organization and the individuals around you. 

Evidence of your impact includes annual performance reviews, business plans, operational goals, 360-degree assessment data, employee engagement survey data, and more.  And, like any portfolio, it is best to periodically check to see how well it’s performing.

The contemporary Leadership Portfolio^© demonstrates the total impact of a leader. 

Business Impact – The degree to which the leader or leaders are producing outcomes aligned with the organization’s purpose and strategic direction.

Organizational Impact – The degree to which the leader or leaders are implementing structure and processes that are aligned with the organization’s purpose and strategic direction.

Individual Impact – The degree to which the leader or leaders are positively affecting the individuals around him or her; this positive impact contributes to the ability of others to optimize their value.

Many people are focusing on economic conditions and personal finances almost to the exclusion of every other issue.  And, financial problems are almost always followed by emotional stress and more complicated interpersonal effects. 

It is right to minimize the stresses on you and others by addressing these issues face forward.  It is right to review and reframe individual goals and financial plans.  The article Eleven Ways to Help Yourself Stay Sane in a Crazy Market, by David Wheat of Axiom Advisors, reminds us to do just that; review and re-frame our personal goals.

We have all been hit pretty hard by the WDMFG (Where Did My Future Go?) virus.  Yet whining is not a privilege of leaders.  We are expected to take charge and move forward on behalf of the people and the businesses that we serve.   

Today, leaders at all levels can best serve themselves, their businesses, organizations and those that count on them by bringing their leadership practices into closer strategic focus.  It is time to review and reframe your leadership goals; gather feedback data, have performance conversations, and learn and use new skills.  Like your investment portfolio, ignoring your leadership portfolio will not make it better. The quality and performance of your leadership portfolio is today’s competitive advantage.   So, how are you doing?

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Contact me at Anne@DeFrancesco.net to share your Point of View.