Beyond Charisma: The 8 Core Practices of Effective Managers

Effective managers, regardless of their diverse personalities or leadership styles, are defined by their consistent adherence to eight core practices. These practices are crucial for acquiring necessary knowledge, translating that knowledge into effective action, and fostering accountability throughout the organization.

Defining Effective Managers

• Effective managers are not necessarily charismatic leaders (e.g., Harry Truman, who was highly effective despite lacking charisma).
• They exhibit diverse personality traits, ranging from extroverted to introverted, easygoing to domineering, generous to frugal.
• Their effectiveness stems from consistently following eight practices: asking "what must be done?" and "what's right for the enterprise?", developing action plans, taking responsibility for decisions and communication, focusing on opportunities, conducting effective meetings, and thinking/speaking in "we."

Acquiring Essential Knowledge

• Practice 1: Asking "What must be done?" – Focus on critical tasks for the organization, not personal desires. Harry Truman shifted focus to foreign policy post-WWII (leading to the Marshall Plan), and Jack Welch prioritized cutting non-leading businesses at GE over international expansion.
• Effective managers concentrate on a single priority, rarely more than two, and continuously re-evaluate "what must be done now?" (e.g., Jack Welch every 5 years).
• They focus on tasks they are uniquely suited to perform, delegating others, understanding that top management performance dictates enterprise performance.
• Practice 2: Asking "Is this right for the enterprise?" – Prioritize the overall well-being of the organization above individual stakeholders (shareholders, employees, or management).
• This principle is crucial in family businesses, where successful examples like DuPont and J. Lyons promoted family members only if their performance demonstrably exceeded non-family peers.

Developing Action Plans

• Managers are doers; knowledge must be converted into action through careful planning, which defines desired results, identifies constraints, and anticipates changes.
• Action plans define expected contributions, outcomes, and deadlines (e.g., for the next 18-24 months) while adhering to ethical, organizational, and legal constraints.
• Plans are statements of intent, not rigid rules; they must be flexible and constantly revised based on new opportunities or changes in the business environment or personnel.
• Effective managers set checkpoints (e.g., at the mid-point and end-point of a plan) to evaluate results against expectations.
• Action plans serve as the foundation for time management, as time is a manager's most valuable and scarce resource, preventing them from becoming "prisoners of events."