FT Innovative Lawyers 2013: Claudia Parzani

The FT Innovative Lawyers is a great award. I am so honoured that our “In the Boardroom” program was part of the reason for Claudia Parzani’s being acknowledged by the FT. In addition, I love to think that how women are changing Italy is only a beginning of how they will keep transforming the world for the better.

Live from Planet Paola

Claudia ParzaniOne of the ten winners in this year’s FT Innovative Lawyers survey, among over 600 participants, is Claudia Parzani of Linklaters, chair of corporate association Valore D and co-creator of In the Boardroom, an initiative she developed with GE Capital and Egon Zehnder to provide training and skills to prepare women for boardroom positions. Claudia also created the Breakfast@Linklaters network, featured in this year’s Client Service category.

Kudos to Claudia! I am proud to be participating in her boardroom program and honored to be in her circle.

Update & Correction (Oct. 17, 2013): post corrected to clarify that In The Boardroom was developed through collaboration among Linklaters, GE Capital and Egon Zehnder. The supporting member companies of Valore D can be found on this page.

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A few thoughts on leadership in a collaborative world

In a context of collaborative innovation, how does leadership change? How does leading interfaces with collaborating?

I look at leadership as a sum of hard and soft skills, which evolve during our life. Competencies are behaviours, ways of doing things.

In theory, we can do things with or without other people’s involvement. This is a first, important point. We can have non people-related (which we often call hard) competencies, where our ability to do things does not necessarily depends on interacting with others. For example,orientation to results (how determined we are towards achieving our goals) could be measured in situations where interaction is absent, if only for the sake of the argument. Other hard skills include all sorts of technical skills required for our job, plus a number of additional competencies such as market knowledge and even strategic orientation. In abstract, again, one’s ability to craft a business’ crucial strategic lines does not necessarily require immediate collaboration with other people. Implementing the strategy does.

Then we have what we often call soft competencies, or people-related competencies. These are ways of doing things which can only happen through relating to other people. It can be through collaborating with colleagues or influencing them (what we call collaboration & influencing) or leading and motivating a team (team leadership), or changing the way a group of people works (change leadership).

One of the simplest, perhaps most banal yet best kept secrets is that after a certain point, rather early on in life, hard skills start to decline in absolute terms. The very same me today is clearly far less results-oriented, all things being equal, than I was ten years ago. It takes me more effort to be updated, to reach a similar level of knowledge.

At the same time, “social”, interpersonal skills, by then, take off. For best-in-class talent, they continue to grow over time. From that point onwards, growth in soft skills more than offsets the decline in hard skills. The same me today, all things being equal, can be far more effective in interacting with others than I was years ago.

The sum of hard and soft competencies is a proxy for leadership, as well as for one’s satisfaction, and can be measured.

Both our leadership and our satisfaction grow, from a certain point in time on, if we are able to more than compensate a decline in hard skills through an increase of hard in soft skills. In other words, all of our incremental satisfaction, from a certain point on, depends entirely on our ability to grow interpersonally.

The key message of all this is the following: what we do is important, that’s clear. More important, though,is for and with whom we do what we do, whose needs we address through what we do. This opens up an entirely new element, which we’ve kept unconscious for so long. We live a life of overexposure to connecting, not the opposite. How do we sharpen the focus, then?

Growing interpersonally means becoming better at leading a team, but, even before that, better at collaborating and influencing people. Collaborating means connecting effectively, persuading, understanding, listening to their needs, identifying needs and selecting those we like to satisfy. All of this requires the ability to connect, and to do so in a wise manner, through careful selection. Selection is choice. Choosing whom we like requires thinking, open thinking, and listening, making room for other people’s needs.

Most of us would highly benefit from broader focus on relationship and connection.

Tommaso Arenare 

 @tommaso_arenare

This post is my contribution to “Making Weconomy 04 – Human (R)evolution“, an open access paper which can be found here.

Three things to look for in a successful Non Executive Director

All of us working for a better corporate governance have often been asked such questions as these:

How can we tell who is right for which board?

What are the key competencies that make a newly appointed Non Executive Director succeed?

Of the many talented people we can come across, who will make exceptional Non Executive Directors?

In most cases, the answers will depend on a number of circumstances in the kingdom of Obliquity and Black Swans, i.e. totally unpredictable events. Yet, identifying a candidate for a board search and assessing them against a specific situation can make the likelihood of success significantly higher.

What are the three things we look for in a Non Executive Director candidate?

With the risk of over-simplifying it, I would like to elaborate a bit on the following:

  1. Credibility: no candidate can have positive impact on a Board unless they rapidly build credibility with all relevant stakeholders. Credibility is built through a combination of the candidate’s collaboration and influencing skills, on the one hand, with their “harder”, non-people-related competencies, such as their technical background, their ability to contribute additional market knowledge to the Board and to the strategic orientation of the board itself on the other. Even if a candidate has already exceptional reputation to bring to that Board, they will need to build credibility with all relevant stakeholders, starting with fellow board members. to appreciate and combine the knowledge and experience of individuals with different backgrounds and viewpoints.
  2. Listening & trust building skills: this is an additional and crucial component of a candidate’s ability to succeed on a Board. Listening means, amongst other traits, the ability to suspend one’s agenda and judgement, making room for other people’s thoughts. In the life of a Board, listening means being able to remain silent for long, in order to gather sufficient elements for making up one’s own opinion. Also, listening means being capable of asking proper, effective, most of the time open-ended questions, both during the Board sessions and, even more importantly, between them. Listening implies the ability to wait and select proper timing to act, avoiding the risk of early reactions which may jeopardise long-time effectiveness.
  3. Independence & Integrity: once credibility has been built, through a process which can last from a few seconds in the initial meeting to a longer period of several Board sessions, the Board member will need to be able to use their judgement and speak up, possibly standing against the Board’s prevailing opinion in an effective manner. This is what we call integrity and independence. Being independent requires the ability to influence the Board’s decision making process both ethically and effectively. It requires, amongst other things, the ability to establish effective communication channels with fellow board members and, most importantly, with the Board’s Chairperson.

Credibility, listening & trust-building, independence & integrity are three of many aspects we see when we meet exceptional Non Executive Board Members. They may not be sufficient, yet they represent a strong signal of an emotional intelligent person, most likely to succeed even in a very demanding Board.

Wrong brain, wrong education and that little nudge to help

As a fact, in the US listed companies, about 15 board members out of 100 are women.

As another fact, the US has historically rewarded merit and competencies more than many other countries.

How can then happen that in selecting people, one of life’s most crucial choices, we are so biased as to unconsciously neglect merit and competencies?

Breaking the impasse is possible, if we try to tweak some consequences of two unconscious biases through a little nudge.

Similarity bias happens when we select people that are more similar to us, as opposed to people who appear more different. Evolution has fostered this trait, as a key manner to survive ever since the difficult times when we would live in the savannah, trying to escape from animals and all sorts of dangers.

We have the wrong brain and the wrong education. When making people decisions, we fall pray into a series of unconscious psychological biases, such as surrounding ourselves with similar people with whom we feel naturally comfortable. Many of these biases were very effective for our primitive ancestors, but they are no longer useful for building great teams which require complementary and highly sophisticated skills.

Claudio Fernández-Aráoz, Author of Great PeopleDecisions, 2007

A “similarity bias” results when individuals are more likely to imitate cultural models that are perceived as being similar to the individual, based on specific traits (such, for instance, age, gender, geographical location and so on…).

Similarity bias is even enhanced by our other bias, which we call snap judgement, whereby we unconsciously make up our mind on someone during the first milliseconds after we meet. I have separately written about the many benefits of overcoming snap judgements.

The combination of snap judgements and similarity biases is the one reason why gender diversity (but also age diversity, geographic diversity and possibly many other aspects of diversity) is so difficult to happen without a little nudge (such as that of a proper law).

That little nudge lets us overcome unconscious fears, to the advantage of merit, competencies and corporate governance.

Tommaso Arenare

For a different look at leadership

What competencies make up leadership? How much of leadership is technical as opposed to social or interpersonal?

Competencies are behaviours: for professionals, executives, consultants, leaders, all competencies can be grouped into two sets:

  • non-people-related (or “hard”)  competencies include such behaviours as orientation to results (how determined we are towards achieving our goals), but also all sorts of technical skills required for our job, plus a number of additional competencies such as market knowledge and even strategic orientation.
  • soft competencies, instead, have to do with relating to other people, either to collaborate with colleagues or to influence them (what we call collaboration & influencing) or to lead a team (team leadership), or to change the way a group of people works (change leadership).

In the early stages of someone’s professional development, people-related skills appear relatively less developed, hence we tend to assess and select people on the basis of  hard competencies.  The early stages of one’s professional life are full of episodes where we realise that orientation to results and determination, or technical skills, were the basis of our progress.

After a certain point in life, though, those skills start to decline in absolute terms. At the same time, “social”, interpersonal skills, by then, take off. For best-in-class talent, they continue to grow over time. From that point onwards, growth in soft skills more than offsets the decline in hard skills

The sum of hard and soft competencies can then be measured, over the course of one’s life. The profile of this sum is a very interesting element to consider.

Effective leaders evidence, over time, a profile in line with the example in the following chart:

.

Over time, then, the “sum” of hard and soft skills is a proxy for leadership, as well as for one’s satisfaction. Both grow, from a certain point in time on, if we are able to more than compensate a decline in hard skills.

In other words, all of our incremental satisfaction, from a certain point on, depends entirely on our ability to grow interpersonally.

It’s people, again.

Tommaso Arenare

www.twitter.com/tommaso_arenare