Most Cherished Asset

What is a company's most cherished asset? If you don't know the answer, you probably don't know where you're going.

by Neal Whitten, PMP, Contributing Editor

Here are some common answers to what companies value most--all are important, but only the last is correct.
People? Many companies mistakenly say so in their core beliefs.
Profit? Obviously important to a for-profit company, and sound financials are a sign of effective management even for nonprofits, academic institutions and public sector entities.
Products and services? Magnets for clients.
Clients? Without them, the company has no future.
Intellectual property? Past investments help secure future success.
Brand? How will customers know you otherwise?
Marketing? The only way to tell customers about your products and services.
Cash flow? Solid companies can pay their bills and invest in their future.
Productivity? An ever-rising bar.
Quality? Of course.
Creativity and ingenuity? A company cannot rest on its laurels.
Integrity? Getting warmer ...
Leadership? BINGO! A company’s most cherished asset is its leadership.
If a company has mediocre leaders and the best employees, it will be a mediocre force in its industry. However, a company with the best leaders and mediocre employees will be a formidable force in its industry. Yes, formidable. It’s all about leadership. Interestingly, companies with the best leaders don’t have mediocre employees. Employees rise to the occasion for their leaders.
We all want to follow a leader even if we are leaders ourselves. We want someone in whom we can believe. Someone who helps give our work meaning, legitimacy and purpose. It doesn’t mean we need to always agree with the leader; we can accept different points of view. But we need to believe in the overall vision and direction in which we are being led.
The best leaders lay claim to their “domain of responsibility”--all actions, responsibilities and commitments that fall within the scope of completing their assignments successfully.
A project manager with 10 direct reports, for instance, must interface with dozens of other people related to the project. Human resources, infrastructure, the client, senior management, legal, purchasing, procurement--all of these groups can impact a project. They are all part of the leader’s domain of responsibility.
An executive with a 100-person company is not only responsible for the performance of those 100. The domain of responsibility encompasses people and groups outside the organization who can influence the company’s performance. Customers, potential customers, trade groups, legislators, unions--the domain of responsibility does not stop at the company’s front gate.
Leaders lay out a clear vision for all those people within their domains of responsibility, so everyone understands their mission and steadfastly remains focused. Moreover, leaders identify the major goals to be attained and provide measurements to establish and track those goals to ensure that the journey is deliberate and successful.
A person’s domain of responsibility almost always is far broader than seems apparent. Recognizing that fact and responding appropriately are keys to great leadership. Companies, organizations, projects that are consistently successful aren’t so by accident. Success is due to the passion, boldness and focus exhibited by its leaders.
Are you leading within your domain of responsibility ... or are you waiting for others to lead you?

Neal Whitten, PMP, president of The Neal Whitten Group (www.nealwhittengroup.com), is a speaker, trainer, consultant, mentor, and author in project management and employee development. His books include The EnterPrize Organization: Organizing Software Projects for Accountability and Success and Managing Software Development Projects: Formula for Success.

This material is reprinted from PM Network magazine (November 2003) with permission of the Project Management Institute Headquarters, Four Campus Boulevard, Newtown Square, PA 19073-2399 USA. Phone: (610) 356-4600. Fax: (610) 356-4647. Project Management Institute (PMI) is the world's leading project management association with over 100,000 members worldwide. For further information, contact PMI Headquarters at (610) 356-4600 or visit the web site at www.pmi.org. "PMI" and "PM Network" are trademarks of the Project Management Institute, Inc. © 2003 Project Management Institute, Inc. All rights reserved.

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