The former chairman of Goldman Sachs describes how to become a more reflective leader
You believe the key difference between successful executives and those who are less successful is the way they deal with periods of confusion and uncertainty. Please explain.
Some people are under the impression that highly-successful leaders enjoy a smooth path, but that is not the case. Every executive -- no matter how successful -- goes through difficult periods: they experience adversity, failures and disappointments. The trick is not to avoid those things completely, it’s to learn how to deal with them. And the best way to deal with them is not to pretend that you have all the answers. You have to be able to step back on a regular basis and ask questions -- the right questions -- and to reflect in order to get yourself back on track.
You have found that when leaders struggle, there is often a mismatch between how they are spending their time and the most pressing needs of the business. Why does this happen?
In the chaos of things, people often fail to take a step back and ask two key questions. First, What is my vision for this enterprise? A vision is a clear articulation of what you would like your enterprise to be if you succeed. How does it add value to its constituencies? What service or benefit does it provide? Related to that, what is its distinctive competence -- what is your company truly great at? It pays to ask these questions regularly, because the world is constantly changing. The way you added value two or three years ago may not be relevant today.
The second critical question is, What are your top three-to-five priorities for achieving this vision? I always try to bring people back to these questions, because when someone is struggling, it is very likely that they are unclear about these two things.
Many people confuse the terms coaching and mentorship. Please summarize the important differences between them.
[This article has been reprinted, with permission, from Rotman Management, the magazine of the University of Toronto's Rotman School of Management]