Monday, October 17, 2022

NEW INC. MAGAZINE COLUMN BY HOWARD TULLMAN

  

Break Your Resistance to Change Before It Breaks You

The better things go, the less likely entrepreneurs are to change--even if the market demands it. That's what leads to bad behaviors, bad management and a lot of grief. 

 

BY HOWARD TULLMAN, GENERAL MANAGING PARTNER, G2T3V AND CHICAGO HIGH TECH INVESTORS@TULLMAN


One of the greatest impediments to progress is success. It’s very difficult for anyone to willingly part with what’s worked well for them. Why try to change things that aren’t broken, that are getting the job done? We’re all creatures of habit, custom, and comfort; change is always challenging, uncertain, and complicated. But there’s really no choice - other than perhaps the timing. The one certainty today is that we live in a time of constantly accelerating change. So, if someone’s going to eat your lunch, it might as well be you.

 Sadly, entrepreneurs are some of the world’s best talkers and among the world’s worst listeners. They’re also horrible procrastinators because as often as they talk about shooting for the stars, they’re always the last to actually acknowledge in their own lives that things could be better. This “sometimes wrong, but never in doubt” attitude is another corollary to the “fake it” doctrine. Too many entrepreneurs believe in their hearts that, if you can fool yourself and work hard enough, you may have a shot at becoming what you were pretending to be.

Eventually, even the most stubborn or deluded players come to understand the inevitability of change. They’re realistic enough to embrace certain changes, but only within narrow boundaries and to the extent that it basically comes without real costs to them personally. The ones who are actively succeeding are rarely excited about doing anything that might rock their boat. In occasional instances of honesty and clarity, most realistic and self-aware entrepreneurs will talk frankly about ways their own businesses could be better run and managed - sometimes even by someone other than themselves-- although those kinds of outré and hypothetical suggestions are mainly offered as invitations for any given audience to reassure the CEO that he or she is clearly indispensable and irreplaceable.

But it’s those very personal actions, pathologies, and excesses that eventually bring some of the highest-flying firms crashing down. New business builders are under plenty of stress all the time and - in addition to wondering whether they’re up to the task - they believe that they’re carrying the whole business on their backs. Everyone’s looking to them for decisions and results and, not surprisingly, the pressure sometimes becomes too much, and they act out. It’s hard to excuse, but easy to explain if you’ve been there, as every good entrepreneur has.

 Boorish and bossy behaviors, aggressive attitudes, demands bordering on abuse and an overall approach that takes no prisoners and does anything needed to get the business built are all par for the course and readily tolerated in the early stages of a startup by employees, peers, directors, and investors. Until the day they aren’t. In retrospect, the postmortem conversations always end up the same: it worked until it didn’t.

 But things don’t have to end up this way - slamming into the wall with no skid marks - if someone can get the CEO to sit down, slow down, think about why things are consistently and repeatedly heading in the wrong direction. Then talk honestly about how to interrupt the recurring processes, understand what’s causing issues, and put everything and everyone on a smarter, safer, and more successful path forward.

 And, if you’re a CEO, now’s a great time to stop and ask yourself if the shoe fits. You’ll know the answer. It’s just a question of what you admit to yourself. Being honest with yourself is the start and often the hardest step because it’s difficult and scary for a young leader to ask anyone for help or to admit - even to themselves - that they don’t have all the answers. No one does. Too often, leaders behave in ways to deflect, disguise, or avoid admitting that they’re just as much in the dark about some things as anyone else.

The trick is to get some help before you totally drop the ball, and they take you out of the game. The cruelest disappointments are when you let yourself down. Andy Warhol said: “they say time changes things, but you actually have to change them yourself.” Phone a friend or find someone you trust to tell you the truth. It takes guts to believe you can open yourself to someone else and share your feelings with them without losing their respect. Being tough sometimes means making yourself vulnerable and expressing things that are really hard to say.

 Good partners protect you from others; great partners protect you from yourself. The most crucial thing that you can do is to surround yourself with other bright people who will argue with you and tell you the truth.

 First, you all need to agree that these kinds of bad and destructive behaviors aren’t one-off instances or the results of unique situations or unexpected circumstances. They happen too often to be driven by anything other than specific, painful, and inappropriate behaviors on the CEO’s part and the avoidance, feigned ignorance, or grudging acceptance by those around him or her.

 The worst lies are the ones we tell ourselves and pretending that these kinds of eruptions and incidents are normal or will just eventually stop or are just “the boss being the boss” is unhealthy for the team and for the business. They serve some clear need on the CEO’s part that needs to be satisfied.

 The second step, having identified the need (angst, fear, imposter syndrome, too much too soon, blame, or biting off more than anyone can chew), is to work out a plan and a program to address and satisfy that need in another productive and helpful way since it’s a given that the need isn’t going to disappear by itself.

Three preemptive actions are central to success:

            (1) Distribute and delegate the ownership of certain key tasks. Not every buck has to stop with the CEO.

            (2) Diminish the “crisis” mindset and the FedEx culture of indiscriminate urgency. Not everything has to be done yesterday.

            (3) Demonstrate and reinforce that not even the CEO is a superhero. It’s a team sport. No one today accomplishes anything really important all by themselves.

The final step is a small and frank, but not necessarily easy, conversation with the boss.

The main message is simple. What’s gone on to date wasn’t great, but it may have been necessary to get the business to this point. But that behavior isn’t working anymore for anyone, including you. It’s burning out critical employees, infecting, and impairing the constructive and collaborative culture we’re trying to build. And it’s stifling important honest communication, necessary improvements and innovations, and critical changes. Because no one wants to be yelled at or have their head bitten off because they made a sincere suggestion, regardless of its merits.

Nothing headed downhill changes direction by itself. You can blame it on gravity or simply on inertia, but some positive action and effective intervention is essential to course correct and save your CEO from him or herself. The future success of your business depends on it.