Stephen H Baum Leadership

You have heard a lot about management by walking around over the years and it becomes more important as the business world moves to warp speed and global employees. But here is a terrific take from a CEO I respect a lot.

To paraphrase his remarks in a private conversation, first, he always learns how things really work from the front line. And it is often different from what the C-suite and next level executives believe. So walking around is a learning experience in and of itself, a way to stay current on how employees are adapting to current challenges.

But he goes further. He likes to ask what he calls “unexpected questions” during an impromptu meeting in a walk around. What does he ask and why? Let’s say he has heard something from a customer that he believes may warrant re-thinking what we do or how we do it. He will ask questions during his walk that let him test the assumptions underlying the profit model. if the profit model is dependent on customers trading up in equipment and services, for example, but he hears from a customer that they have been “over-sold,” sold more than they need, he asks questions that elicit data about take rates and trading up. Or that prompt the collection of such data. In the process he also learns if the manager or employee is on top of the data about his business and identifies people who are thinking about the need to adapt. A triple whammy.

He warns against making decisions based on a few data points, especially anecdotal information. But the job of the CEO is worry about what could derail the best plans. And knowing and testing the most critical assumptions is part of the job. Actually, it is part of the job at all levels, dont you think?

That’s just my view. What’s yours?