True Leaders Are Also Managers

Ever have occasion to do an in-depth review of the academic and practical literature on leadership? I have — twice in the past five years. The first time was for a 2006 book with Jeff Pfeffer, Hard Facts, Dangerous Half-Truths, and Total Nonsense. The second time was for my new book, Good Boss, Bad Boss.

It is impossible to read it all.

Tens of thousands of books have been written on leadership and there are several academic journals devoted entirely to the subject, including The Leadership Quarterly and The Journal of Leadership and Organizational Studies. Perhaps the most definitive review and integration of the leadership literature was Bass and Stogdill's 1,200-page Handbook of Leadership, which was published in 1990 (and still does the best job of making sense of the literature, for my money). And if youreally want a long book on leadership, you can get the four-volume Encyclopedia of Leadership, which at 2,120 pages weighs in at 15 pounds, and costs a whopping $800. Clearly, the task of reviewing the leadership literature — and acting on it as leader — isn't to understand it all (that is impossible), but to develop a point of view on the few themes that matter most.

In my reviews of the writings and research, I kept bumping into an old and popular distinction that has always bugged me: leading versus managing. The brilliant and charming Warren Bennis has likely done more to popularize this distinction than anyone else. He wrote in Learning to Lead: A Workbook on Becoming a Leader that "There is a profound difference between management and leadership, and both are important. To manage means to bring about, to accomplish, to have charge of or responsibility for, to conduct. Leading is influencing, guiding in a direction, course, action, opinion. The distinction is crucial." And in one of his most famous lines, he added, "Managers are people who do things right and leaders are people who do the right thing."

Although this distinction is more or less correct, and is useful to a degree (see this recent interview with Randy Komisar for a great discussion of the distinction), it has unintended negative effects on how some leaders view and do their work. Some leaders now see their job as just coming up with big and vague ideas, and they treat implementing them, or even engaging in conversation and planning about the details of them, as mere "management" work.

Worse still, this distinction seems to be used as a reason for leaders to avoid the hard work of learning about the people that they lead, the technologies their companies use, and the customers they serve. I remember hearing of a cell phone company CEO, for example, who never visited the stores where his phones were sold — because that was a management task that was beneath him — and kept pushing strategies that reflected a complete misunderstanding of customer experiences. (Perhaps he hadn't heard of how often Steve Jobs drops in at Apple stores.)

That story is typical. "Big picture only" leaders often make decisions without considering the constraints that affect the cost and time required to implement them, and even when evidence begins mounting that it is impossible or unwise to implement their grand ideas, they often choose to push forward anyway .

I am all for dreaming, Some of the most unlikely and impressive things have been done by dreamers. But one characteristic of the dreamers I respect — Francis Ford Coppola, Steve Jobs, folks at Pixar like Ed Catmull and Brad Bird — is that they also have remarkably deep understanding of the industry they work in and the people they lead, and they are willing to get very deep into the weeds. This ability to go back and forth between the little details and the big picture is also evident in the leaders I admire most who aren't usually thought of as dreamers. Anne Mulcahy's efforts to turn around Xerox were successful in part because of her in-depth knowledge of the company's operations; she was very detail-oriented during the crucial early years of her leadership. Bill George, one of Jim Collins' level 5 leaders, told me that, in his first nine months as CEO of Medtronic (a medical device company), he spent about 75% of his time watching surgeons put Medtronic devices in patients and talking with doctors and nurses, patients, families, and hospital executives to learn the ropes.

I guess this is one of the themes that I have written about before, especially in The Knowing-Doing Gap (with Jeff Pfeffer). But it is bothering me more lately, as I've had some conversations with project managers who have been assigned tasks by naive and overconfident leaders — things like implementing IT systems and building software. When they couldn't succeed because of absurd deadlines, tiny staffs, small budgets, and in some cases, because it simply wasn't technically possible to do what the leaders wanted, they were blamed. Such sad tales further reinforce my view that thinking about what could exist, and telling people to make it so, is a lot easier than actually getting it done.

I am not rejecting the distinction between leadership and management, but I am saying that the best leaders do something that might properly be called a mix of leadership and management. At a minimum, they lead in a way that constantly takes into account the importance of management. Meanwhile, the worst senior executives use the distinction between leadership and management as an excuse to avoid the details they really have to master to see the big picture and select the right strategies.

Therefore, harking back to the Bennis theorem I quoted above, let me propose a corollary: To do the right thing, a leader needs to understand what it takes to do things right, and to make sure they actually get done."

When we glorify leadership too much, and management too little, there is great risk of failing to act on this obvious but powerful message.

How Crowdsourcing Could Help the SEC

The magnitude and duration of Bernard Madoff's Ponzi scheme demonstrated the compelling need to dramatically improve the Security and Exchange Commission's ability to detect financial fraud. Fraud detection is a tedious task that can involve sifting through large amounts of data seeking a signature pattern of discrepancies. This is a task in which crowdsourcing, the chief concept underlying Wikipedia, may be quite useful.

In the context of fraud detection, crowdsourcing entails making the relevant data available on-line and inviting the public to access it and report suspected irregularities. The concept has already proven itself in Britain where The Guardian newspaper created an online database of 700,000 expense claims by UK members of Parliament for anyone to search; the erroneous and outrageous expenses identified by some 20,000 participants fueled a national scandal.

How could crowdsourcing be used by the SEC? Assessing investment advisor performance claims and reviewing tips are two of the major tasks on Chairman Schapiro's plate that lend themselves to this approach. The investment community possesses crucial skills and information that could supplement the SEC's efforts. These private sector resources go far beyond what is available to the SEC, and many private practitioners would volunteer their expertise if a suitably-designed website application existed where they could do so.

Cross-Checking Performance Claims

Using third-party data (such as trading and position records) to test the performance claims of investment advisors is the "gold standard" of review, but it has not been standard practice at the SEC. The Inspector General's report reveals multiple occasions when investigators considered obtaining independent data to determine whether Bernard Madoff was misrepresenting his trading activities, but they failed to do so. In the system we envision, this job could be crowdsourced for all advisors, not just those under investigation.

We propose that the SEC require advisors to report their quarter-end assets under management by account code and, separately, by position. We would also require custodians to report the quarter-end positions of each advisor. Individual account owners — the advisory clients — would be invited but not required to enter into the system the total asset value on their account statements.

If even a handful of individual clients accessed the system to validate their own positions, an investment advisor who reported higher numbers to clients than to the SEC would risk swift detection. A scheming advisor could overstate account values in its reports to the SEC as well as on client account statements, but then it would need a complicit custodian to avoid detection. Otherwise, anyone who compared the asset tally reported by an independent custodian to the overstated tally obtained by summing the advisor's account-level numbers could spot a discrepancy.

If these were its only elements, our multiple-source reporting proposal would not have exposed Madoff because he provided self-custody and hence could have reported the same fictional asset values to the SEC as he did to clients. To detect fraud in cases with a controlled or complicit custodian, the "crowd" (here limited to the advisor's clients, custodian, and regulators) would also need access to third-party trading data. Accordingly, we would recommend that trading data from the Depository Trust Company also be disclosed via the system.

A Better Way to Review Tips

Crowdsourcing could also help the short-staffed SEC identify patterns and connect the dots among the hundreds of thousands of tips that it receives annually. This system could extend beyond investment advisors to also cover brokers, public companies, underwriters, municipal issuers, and products. Anyone would be able to enter or examine reports of suspected malfeasance and record their own assessment in the database. The accuracy and integrity of individual tips could not be assured but over time, some would be reinforced by the collective experience of the crowd and others undermined or left to languish.

The well-documented reports about Madoff that whistle-blower Harry Markopolos submitted to the SEC beginning in 2000 might have fared differently had tip review been crowdsourced at the time. Even if the identity of the author (an industry participant who feared retaliation) were not disclosed, the red flags that Markopolos raised about Madoff's peculiar business model (no fees), astonishing investment performance (consistently high returns and low volatility), and extraordinary options volume (more than the CBOE total), among others, would likely have triggered a wider reaction. In the public domain, Markopolos's astute assessment would have won endorsements and been reinforced by anecdotes, data and analysis from portfolio managers, traders, retail investors, academic economists, and financial journalists. The reaction of the crowd would have pressed the SEC into shutting Madoff down long before he self-destructed.

Likely Objections

Both crowdsourcing proposals are admittedly radical, for they would put vast quantities of information that's now kept private into the public domain. Confidentiality would be a sensitive issue, but it could be addressed through careful program design. The performance validation program would be costly to build and operate, but it could be self-funded by the advisors it covered, whose clients would of course be the main beneficiaries. To contain total costs, it might be made mandatory only for those advisors whose clientele included retail investors. All advisors would have the option of participating, however; many might choose to do so as a way of providing comfort to wary current and would-be advisory clients.

Tip review also raises concerns about undeserved reputational harm, both from the airing of misguided suspicions and by the purposeful trashing of rivals. Libel laws and anti-fraud statutes would provide some protection from the latter, but probably not enough to allay this concern. Still, baseless claims would eventually be discredited through exposure to public scrutiny and, the fraud detection benefits of crowdsourcing tip review would likely outweigh the harm arising from nefarious schemes only possible via the system.

Crowdsourcing offers a new approach to the policing of financial markets. Relying on the public to help scrutinize companies would be a departure from the SEC's current way of operating, but it could provide an effective response to the public's demand for dramatic improvement in the SEC's fraud detection efforts.

Being Direct About Social Media Marketing

Compared to typical direct marketing efforts (snail mail, DRTV, email, etc) where an offer is created based on a company developing a product and packing it to meet a need or purpose, a social media marketing program will focuses on creating awareness, relationships and possibly involving communities with creating the offer before it’s every promoted.

As a comparison, take a look at what a typical direct marketing program might look like:

  • Develop top level messaging
  • Research and build an email list
  • Acquire snail mail lists and segment
  • Create and implement a series of email offers to the list with landing pages
  • Create and implement a series of direct mail pieces
  • Setup and run PPC campaign(s) with landing pages
  • Craft story and press releases
  • Research publications for planned stories and journalists covering the topic
  • Distribute optimized press releases via wire services
  • Pitch story to industry and regional publications, editors/journalists
  • Leverage coverage from pitching as part of final email promotions
  • Solicit feedback from those signing up and use as testimonials for subsequent promotions

The list could go on and on really, depending on the budget, timeline and objectives. From the perspective of a traditional marketer, it seems pretty logical, right? It’s a straightforward marketing campaign based on developing an offer, defining a target audience and creating a series of messages intended to communicate the offer and convert. It also uses public relations to augment direct marketing efforts in addition to leveraging positive feedback for subsequent promotions.

While the above overview marketing plan is pretty straight forward, it runs contrary in many ways to the kind of digital marketing programs that companies the world over are warming up to: Social Media Marketing.

With social media marketing, there is an assumption that there is already involvement with the social communities involved – profile(s), network of friends, content submission, voting and participation. That’s the big mistake most marketers make when trying to promote products and services on the social web. They’ll create an account on a social media site, put up some content and expect the social media world to be their oyster without having built a network first.

So, what would a social media marketing focused program look like as an alternative to the direct marketing promotion above? Â Let’s take a look:

  • Monitor discussion on social communities and networks for key conversations, keywords and topics
  • Identify top concerns relevant to what the company is promoting and develop messaging for solution
  • Identify influentials in the social communities, bloggers and authorities – ask them their opinion
  • Identify media types most often used with topics and communities – text, video, image, podcast as well platforms for communication: blog posts, comments, microblogging, status updates, social network notes, social news and bookmarking and as possible, direct messaging and IM
  • Create messaging specific to media type and platform as way of sharing information about the offer
  • Create content destinations that explain the offer and that also offer the opportunity to interact, share opinions and comments – blog posts, video, event pages on social networks (like a landing page, but focused on being informative and encouraging discussion, not salesey)
  • Reach out to influentials on a one to one basis, recognizing them for sharing their opinion, explaining the offer and your goals – ask them to join in in spreading the good word. Explain what’s in it for them and what’s in it for the community.
  • Monitor the communications that result in the most signups and provide feedback on progress
  • Offer influential bloggers a “free pass” to blog the event or a preview of what’s being offered
  • Recognize participation and contribution to reaching goals
  • Continue to engage interested participants and communities

Seems like a lot of work and possibly more effort than it’s worth to a traditional direct marketer. But to those involved with social media and social communities, it’s familiar territory. Focusing on developing solutions based on what the audience wants, then involving the community in developing and promoting creates evangelists for the promotion. Recognizing participation energizes the community and can multiply the speed and breadth of message distribution, discussion and action.

Social marketing invests in social communities with useful content/solutions as well as participation and recognition. That investment delivers long term dividends far beyond a one time promotional program using direct marketing tactics.

If the budget, timeline and resources warrant it, a combination of both sets of tactics can be very appropriate.

Business Blogging for Realtors Posted by: Stephan Spencer of Stephan Spencer's Scatterings on 07/7/10 No Comments : Linking Blogs : Add to del.icio.u

Blogs serve many purposes for companies and individuals alike. As easy to use content management systems, blog software enables companies that are “content challenged” a mechanism to create content for subscribing customers and search engines.

While many companies start blogs with SEO in mind, there are many overzealous claims and exaggerated expectations about what works and what doesn’t.

At MarketingBlog.com we’re currently running a poll with business bloggers to better understand the perceived SEO impact of business blogging and would greatly appreciate 1-2 minutes of your participation: http://bit.ly/6Lr4Xb

Responses will be aggregated early next week and an executive summary will be published here on Business Blog Consulting. Full results will also be available in a Business Blogging and SEO Report.

If you’re a business blogger, please take and share the survey.

New Survey: Are Blogs Still Important for SEO and Why?


A large number of companies are familiar with the process of starting a blog, but few have experienced the challenges of maintaining and growing a blog for more than a year. Understanding long term benefits is key to sustainable business blogging. One of the most notable benefits of publishing blog content, especially if optimized, is the compliment to search engine optimization efforts.

TopRank’s Online Marketing Blog recently conducted a survey with 326 Corporate, Agency, Small Biz and Independent marketers. Long time readers of Business Blog Consulting understand the SEO value of blogging, however, we wanted to check in with marketers with a variety of blogging experience to see what their experiences have been firsthand.

Key findings:

95% indicated blogs are used as part of their search engine optimization efforts
87.4% successfully increased measurable SEO objectives as a direct result of blogging
90% cited blogging as important, significantly important or a primary SEO tactic

Blogs are started for many reasons ranging from corporate communications in a newsroom format to conversational posts from executives or subject matter experts. When it came to SEO benefits from blogging, the top choices were:

* Creat new optimized content
* Linking from blog posts to optimized web site content
* Attract external links
* Increase crawl rate / frequency
* Community building for content/links promotion
* Content Syndication

The timeframe between starting a blogging effort and seeing results is a very common question for companies considering a blog as part of the marketing and communications mix. In the TopRank survey, respondents reported seeing SEO results fairly quickly:

94% of bloggers reported seeing measurable SEO benefits from blogging within 12 months
54% of respondents start to see SEO benefits from blogging within 3 months

After timeframe to see results, the next most common question about building a case for a corporate blog are the results. Adding a SEO effort to a corporate blog allows companies to increase the outcomes and reach of the content published. The top benefits from blog SEO included:

* Increasing company site traffic
* Increase company leads/sales
* Inbound links
* Referrals from the blog
* Lead generation from the blog
* Improved web site rankings
* Increased blog traffic

Starting a blog purely for SEO reasons will make content sustainability difficult in the long run. A blogging strategy must meet meet other goals as well, especially those that involve engaging customers or interactions with readers. Other success measures from blogging include:

* Increase overall online exposure. They won’t know about you if you don’t say anything, participate
* Contribute to company’s bottom line goals in at least a semi-direct way
* Branding and owning SERPS
* Increase quality of site traffic
* Improve visibility and prominence in search engine results is by far the most important, it’s all about search
* Branding
* Incease visibility and demonstrate the company is “up to date”

Convincing management that a corporate blog or any kind of blog is not always easy. Nor is long term creation of content and promotion. Many of the comments about obstacles to blogging centered around time, resources, measurement and a lack of awareness.

* 67.2% cited resource issues as the most common objection to implementing a blog
* 42% cited content sourcing issues
* 35% didn’t see the benefit of blogging
* Regulated industry or legal issues got in the way for 19.3

Is blogging here to stay? 92% of respondents feel blogging will continue to be an important content optimization and marketing tactic for the next 3+ years.

Read the full results of the Blogging and SEO Survey here along with a large number of comments from respondents on measuring success and SEO applications of blogging. Follow @leeodden on Twitter for more insights into Social SEO and Blogging.

12 Tips for Marketing New Blogs

Plenty of new B2C and B2B blogs are launched every day and the sheer volume of content makes standing out increasingly difficult. My personal experience as a B2B Marketing pro, is that blogs can be one of the most effective ways create connections with prospects and customers through useful content. However, that content will go unnoticed unless you promote it. To that end, here are 12 tips for marketing a new blog.

1. Add A Link – If it’s a company blog, or if it’s attached to another site, add a link to the blog from the main navigation on the parent website.
2. Create A Badge – On the main website, add a badge to the homepage, or sidebar, that promotes the blog. Images are a good way to catch a visitor’s attention.
3. Email – Add a link to the blog in your email signature.
4. Newsletter – Announce the blog in the company newsletter.
5. Network – Announce the blog to your Twitter followers, Facebook fans, Linked in connections and any other social networks that you are apart of.
6. Press Release – If you feel that the blog is important enough to support a press release, put one out.
7. Submit – Submit the blog to blog & feed directories.
8. Share – Share your blog with co-workers, friends and others in your network. You never know when they might promote it for you.
9. Link – One way to get other bloggers to notice you is to link to them. Summarize someone else’s long blog post, expand upon someones shorter post, or just write your thoughts on a topic that someone else wrote about and link back to the original post.
10. Give Away – If it’s a product blog, run a promotion on the blog giving away one of your products. Sometimes the value that can come out of giving something away can be more beneficial than all the items above.
11. Guest Post – If there are other blogs in your industry, ask around and see if they’d allow you to guest post for them. In return, you’d get a link back to your blog in your profile, or post, on their site.
12. Ask – Tap into the social networks within the industry you’re trying to reach and ask them what they’re interested in. Here’s an example of a post that did just that on Twitter for this blog. Show interest in the interest of your audience and they’ll pay more attention and share your content.

Of course, there’s no substitute for good content, so even the best blog marketing tactics will be fruitless unless those visitors find something useful AND the blog publisher has made it easy to share that content. This is a simple, yet effective formula at the center of our blog marketing services.

What tips and tactics have you found to be effective for promoting a new blog?

Content Curation in B2B Marketing


Many of the B2B companies that publish corporate blogs have long realized the value of publishing useful content in the form of white papers, case studies, webinars, newsletters and other types of educational content.

Business buyers typically seek additional information and resources for information on business products and services. In the growing content marketing field, some companies choose a pure creation strategy (often using blogging platforms for publishing) and find it to be a challenge.

Within the field of content marketing, content curation blends a mix of new content with the filtering and management of useful information streams from blogs and other RSS resources. The curation of useful content for B2B marketing serves as a productive and manageable solution for providing prospective customers a steady stream of useful information from trusted sources. Â Pure content creation is demanding. Pure automation of content aggregation doesn’t foster interaction. For B2B marketers, content curation provides the best of both worlds.

To make more sense out of the notion of content curation, here are some useful thought leader definitions of the topic and insight into where curation might fit within a digital marketing program:

Joe Pulizzi – Founder Junta42 and Content Marketing Institute, Co-Author of Get Content, Get Customers.

Content curation is editing on steroids.

As more content floods through all aspects of the web (as well as print and online), we’ll need more brands stepping up to make sense of what we really should be paying attention to. Content curation is as important in the content marketing toolbox as is creation. We need both…and curation doesn’t work without creation (much like Google trying to save the newspapers because they need great news to survive, but that is for another story). For some brands, curation may be enough. You can’t find the resources to develop the most valuable, most compelling content in your industry? Then just tap into your network that does, and package that content to present you as the trusted industry leader. It’s still a needed service, just a bit different from creation.

Where it will go, no one knows…but I’ve heard from smarter people than me that content curation is the future (even present) of media. I’d rather say curation and creation go together like Macaroni & Cheese…a splendid combination.

Pawan Deshpande – CEO, HiveFire, Makers of Curata

Content curation is the cure for a broken content marketing strategy. Content marketing is about a brand producing valuable content, and prospects being educated with that content. It’s valuable, it works and it’s not going away.

But the only problem is that day by day, it’s less effective as everyone produces more and more content. Brands are increasingly competing to get their content noticed. At the same time, prospects are increasingly spending more time searching for relevant content.

Content curation has emerged as a new and powerful way for marketers to seamlessly sift through the flood of content available to prospects. Like the owner of a high-end art gallery, you have to sift through the information from across the web and “curate” it to ensure that it is relevant to the customer. You will be navigating your prospects through this sea of content by leading them to the most relevant important information.

It’s already happened in the consumer world: Sites like Digg (social curation) which have little or no original content have become key resources for information. Similarly we are seeing leading businesses take a similar approach to become the experts for their respective areas.

Paul Gillin – Consultant and Author of The New Influencers and Secrets of Social Media Marketing

I define content curation as the process of assembling, summarizing and categorizing and interpreting information from multiple sources in a context that is relevant to a particular audience. I think this discipline will be absolutely essential to content marketing in the future because of changes in the media landscape.

Marketers can build trust with their constituencies by providing focused curation in areas that matter to their constituents. Original content will always have value, but curation is coming to have nearly equal value.  The key is to stake out unique topic areas and to become the most trusted source in those areas. You don’t need a lot of money to do this. You just need to know the subject matter very well.

So it seems that not only do companies need to enter the world of publishing, but undertake the role of digital librarian as well. I cannot imagine the need for original blogging going away anytime soon. But I can see blogging complemented and even facilitated by the incorporation of curated feeds (excerpts) from other blogs and information sources. Citation and links benefit the sources and the collection of useful information benefits the readers. Â Satisfied readers can turn into interested prospects and satisfied customers.

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