Leaders fail because they over-promise.

Leaders fail because they create unrealistic expectations and don't achieve them.

I have emphasized that the country is in crisis and that the current political approach is to promise immediately cures to solve our healthcare, educational, infrastructure, homeland security and the Iraq war. The theme is a "time for change"...but it is clear that all of these problems can't be solved immediately, especially since we lack the money, people, systems and "will" to do them all.

One prime exampe is solving the mess in Iraq. This has become another devicive unpopular war, like Viet Nam. Solutions proposed is that we "immediately withdraw our troops" and let the Iraq government fix its own problems. Others are vowing to fight until we win, even if it takes decades, both are creating unrealistic expectations and both will fail.

Business CEO get themselves in the same trap because they want to please ALL oftheir stakeholders and especially their stockholders or Wall Street. This is the fatal flaw... you can't satisfy everyone equally and you must set priorities and implement them. Companies in crisis do the same as the politicans and promise to fix the problems quickly and they too fail.

There are no simple solutions to complex problems and situations, they must be segmented into smaller pieces and each dealt with individually... The first step is to set priorities.

Strategic Portfolio Prioritization.
Though the politicans and CEOs run the risk of losing their jobs, I would recommend that they segment the problem or business and focus on those parts where they can win and be willing to delay or ignore those areas that they can't win. This is called Strategic Portfolio Planning and Prioritization.

Do What they Say.
Once the portfolio has been assessed and priorities set, then the leaders and politicans must be will do do what they say and not deviate from the game plan, unless it is not working.

Tactics are the Secrets.
Keeping the key stakeholders informed is vital, but you can't tell them everything. It is okay to communicate the overall strategy, but never the detailed implementation plan. Timing and degree of response are the secrets that must be protected.

For instance if and when the US will withdraw troops from Iraq, it is okay to say we plan to withdraw them, but not the specific units, the number and the timing. These are the keys to success and the enemy must not know the details. The same is true of companies. If a company plans to introduce a new innovative product line, it is fine to tell people you are working on it, but not the detailed execution plan.

In short, creating expectations is vital and it requires sound strategic thinking, decision making, prioritization and precise, secretive execution. "Only promise what you can deliver, if you can do it, say so and move on...even if it means losing your job". You and the key stakeholders will be better off in the long term.

Bill Rothschild, is author of The Secret to GE's Success, Putting it All Together- a guide to strategic thinking and decision making, and How to Gain and Maintain the Competitive Advantage in Business...Each of these books deals with the art and science of creating realistic expectations and all are availabe on his website: http://www.strategyleader.com/


This topic will continue to be discussed in future blogs... your comments and insights are welcome.