Leading Off: How to operate at peak performance: A leader’s guide

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ESSENTIALS FOR LEADERS AND THOSE THEY LEAD

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Brought to you by Alex Panas, global leader of industries, & Axel Karlsson, global leader of functional practices and growth platforms

Welcome to the latest edition of Leading Off. We hope you find our insights useful. Let us know what you think at Alex_Panas@McKinsey.com and Axel_Karlsson@McKinsey.com.

—Alex and Axel

As a leader, the list of to-dos can seem endless. On any given day, you may need to present to the board, meet with R&D leads to align on next year’s strategy, talk about innovation with a big customer, or lead an earnings call with investors. How does one person manage such a large and complex web of relationships and responsibilities? It starts by connecting with yourself. Effective leaders think critically about their strengths and shortcomings so they can develop their own operating models to get their most important work done—and done well. This week, we look at how leaders can operate at their best to achieve maximum impact.

AN IDEA

An image linking to the web page “Warning: Upgrade your personal operating model” on McKinsey.com.

Upgrade your ways of working

Just as our phones and computers regularly alert us to update their operating systems, leaders can do the same for themselves, say McKinsey’s Arne Gast and Suchita Prasad. According to the authors, leaders should build their personal operating models around four drivers: their priorities, the roles they choose to play, how they spend their time, and how they sustain their energy. Leaders need to be vigilant about reviewing and upgrading their operating models at key inflection points in both their professional and personal lives: for example, starting a new role, leading an organizational transformation, or dealing with urgent family needs. This ongoing self-evaluation is particularly important in today’s fast-changing business environment. “Leaders who continually upgrade their personal operating model report being more productive, working more consciously, and driving change more effectively,” the authors say.

A BIG NUMBER

2/3

That’s the share of chiefs of staff who are appointed from within their organizations, according to a McKinsey study of the role. A high-performing support team is critical to a senior executive’s personal operating model because a capable chief of staff—along with skilled executive assistants—can help leaders focus on priority work and cover their weak spots. McKinsey’s Andrew Goodman and his coauthors note that the percentage of in-house appointments “reflects the value that principals place on a chief of staff having deep institutional knowledge and strong internal networks so they can hit the ground running.”

A QUOTE

“One of the most important—and most challenging—aspects of being a top leader is getting expert, unvarnished, and diverse insight into yourself and the world around you.”

That’s McKinsey’s Celia Huber, Ishaan Seth, Kurt Strovink, and Meagan Hill on lessons for aspiring CEOs. One core component of a leader’s personal operating model is assembling a trusted “kitchen cabinet” of colleagues, friends, mentors, and others who can advise on thorny issues and provide honest feedback. Seeking counsel from a diverse group offers leaders valuable perspective, and “it’s also good training for the sensitive collection of insight that will be central to your success as a CEO leading a team of people with a range of conflicting needs,” the authors say.

A SPOTLIGHT INTERVIEW

An image linking to the web page “Author Talks: How minor stresses add up to epic fails” on McKinsey.com.

The ability to sustain good health and energy levels is part of an effective operating model. But leaders’ well-being is often taxed by personal and professional “microstresses” that can compound quickly, Babson College professor Rob Cross says in an Author Talks interview. Such stressors include bad news on social media, a friend’s health scare, or minor errors made by a colleague. “The problem is that we are hit with 20, 25, 30, sometimes more of these microstresses in small moments,” Cross says. “We’re conditioned to kind of fight through. But our bodies absorb it.” Top performers counter the effects of microstresses by maintaining meaningful relationships outside of work that bring them moments of joy. On the job, they can take small steps such as restating expectations at the end of every meeting to ward off errors. “The small micromoments are the answer as well as the problem in different ways,” Cross says.

KNOW WHEN TO FOLD ’EM

An image linking to the web page “Author Talks: What poker pro Annie Duke can teach you about quitting on time” on McKinsey.com.

Understanding when to walk away from a certain project or task is essential for leaders as they set their priorities. “People have the idea that quitting slows you down, that it stops your progress, but in reality, quitting really speeds you up,” says Annie Duke, a retired professional poker player turned decision strategist. Leaders often wait too long to abandon failing or nonessential projects because they’re afraid of wasting resources or being stigmatized as a quitter. But much like a poker career, life is “one long game,” and the biggest winners are also the most strategic quitters, Duke says: “If people are afraid of quitting until it’s so certain that that’s the only choice—which is well beyond the point at which they should have walked away—that’s a problem for you as an organization.”

Lead by updating your own operating model.

— Edited by Eric Quiñones, senior editor, New York

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