Sydney Finkelstein
March 23, 2018
Kundapur Vaman Kamath was a teacher. But he didn't work in school, standing at a blackboard. His lessons took place in the office: for 40 years, he imparted knowledge to employees — first as a top executive and then as head of ICICI Bank of India. Whether he was giving advice on communicating with shareholders or explaining the importance of ambitious goals, Kamath always found an opportunity to give his subordinates a special masterclass in management. Over time, this approach made the company a true incubator for leaders and accelerated its growth. ICICI has become one of India's largest and most innovative banks, and Kamath is considered the «father of an entire generation of banking executives in the country.
For more than 10 years I have studied what distinguishes outstanding leaders — such as Kamath, — from other managers. I have been surprised by how much emphasis they place on individual training of subordinates — in-person and remote — in the course of their day-to-day work. Cognitive psychologists, teachers and educational consultants have long recognized the value of personalized learning: it helps not only to gain knowledge, but also to develop the right skills and independence. However, in the business environment, this type of learning still looks unfamiliar. I have noticed that most leaders prefer traditional methods of staff development: coaching, formal evaluations, and career recommendations. Although some managers occasionally share important advice with subordinates, few make this practice a core part of the job.
At the same time, the brilliant leaders I studied were teachers to the core. They spent a lot of time with employees, sharing knowledge, tactics, ideas and life experiences. The learning was informal and flowed organically from the tasks at hand. It had a visible effect: their companies were among the top performers in their fields.
Fortunately, you don't need special talent to teach like the best leaders; it doesn't require special training and doesn't take much time. Just follow their lead. Below I'll tell you what and when to teach and how to make your lessons memorable.
Unforgettable Lessons
The great leaders teach many things, but their best lessons — are so relevant and useful that subordinates apply them for years and pass them on to the next generation, — deal with three things.
Professionalism. A manager who worked for businessman and investor Bill Sanders said he often gave professional advice: how to prepare for meetings, how to communicate his vision in sales and how to see the industry not as it is, but as it could be. Kamath's students said he taught how to manage people constructively: guiding them, but also respecting their independence. Other managers admit to having learned from leaders the value of honesty and high ethical standards. «He started with trust, — says former Burger King head Jeff Campbell of his former manager, the late Norman Brinker, a legend in the fast-food industry. — He cared about how customers felt and what kind of people worked for him». A manager who worked under Tommy Frist Jr. when he ran Hospital Corporation of America (HCA) said Frist reminded doctors to think of the patient first. «Your duty, — he told them, — is to do what you committed to do when you took an oath. If you are asked to do what you think is wrong, — call me. The day we start doing that, we'll start closing hospitals».
The day we start doing that, we'll start closing hospitals.
Skills. It may seem that many executives give others detailed instructions on how to run a business. But stars like former hedge fund head Julian Robertson and fashion designer Ralph Lauren have trained subordinates with the kind of measured approach based on extensive knowledge and experience that they themselves adhered to. According to one of Robertson's subordinates, he «knew so much about different companies that one's head could go wild. Mindy Grossman, head of Weight Watchers and former top executive at Polo Ralph Lauren, recalled listening to Lauren talk about how to achieve originality and model integrity — «whether it was a $24 T-shirt or a $6,000 crocodile skin skirt». Those who worked at Oracle under Larry Ellison noted that he constantly shared his knowledge of software architecture. Jim Sinegal, co-founder and former head of Costco Wholesale, recalled how his former boss, Price Club founder Saul Price, regularly expanded his subordinates' retail knowledge: «He would check on us every day and if something was going wrong, he would show us how to fix it.
Life experience. Of course, great leaders don't confine themselves to working moments — they share life wisdom. It may seem redundant, but managers see great benefit in it. An HCA doctor, for example, recalls how his former boss, Frist, once showed him a card with short-, medium- and long-term goals. The lesson the doctor learned was that Frist updated these goals every day — and was surprised that most people don't do it.
The doctor's lesson was that Frist updated these goals every day — and was surprised that most people don't do it.
Another example — Mike Gamson, LinkedIn's first vice president. He told Business Insider that his first meeting with new head Jeff Weiner turned into a discussion about Buddhism. Gemson said he wanted to be a responsive leader, and Weiner asked why he wasn't a participative one. They discussed the difference between these traits by turning to religion. Gemson realized that both types of leaders understand other people, but the empathetic leader risks being dominated by emotions, while the participative one tends to remain calm and sane, and thus can be better at providing support. This lesson from Weiner changed Gamson's view of leadership.
The Perfect Time
The question of when to teach is almost as important as what to teach. Successful leaders don't wait for grades or tests. They find and create opportunities for knowledge transfer themselves.
At work. When Sinegal worked with Price at Price Club, he knew he could get a lesson at any time. According to Sinegal, Price «taught day and night» either by talking about retail tactics or by reasoning about how to be a good manager. Chase Coleman III, a student of Robertson's, said he, too, was always «ready for a lesson» and explained «how to run a business».
Some executives do on-the-job training in an open office, where they can observe subordinates, follow project progress and have conversations. Others prefer traditional offices, but have an open-door policy and spend a lot of time among employees, giving lessons when people are better prepared to learn them. Campbell, a disciple of Brinker, gave a good example. One evening in the office, Brinker talked about a memo that Campbell had sent to a member of the group detailing what to do. Campbell admits that he still sees his boss in front of his eyes, saying: «The next time you ask someone like Bill to do something, try putting a goal in front of him and let him decide for himself how to achieve it. That way you'll know whether he's smart or not, and he'll probably come up with something you could never have come up with on your own.
Creating Moments. Great leaders don't wait for the perfect moment. They create their own learning situations — often not in the office, but in unusual places where people feel more at ease. Frist, an amateur pilot, sometimes invited people into his plane. Gene Roberts, editor-in-chief of the Philadelphia Inquirer, would call his subordinates to lunch, over which, according to a newspaper employee's recollection, he would give advice on how to deal with various situations. These were the «best seminars» another manager who learned from Roberts claims. The ICICI manager, who often traveled home from the office with Kamath, knew that the boss was especially fond of sharing knowledge during these times. Kamath was willing to talk about everything —from business philosophy to religion.
Chef and entrepreneur Rene Redzepi, co-owner of Noma restaurant in Copenhagen, also likes to teach informally. In 2012, he flew the restaurant's staff to London to set up a small retail outlet for 10 days. A few years later, the staff went to Tokyo for two months, a year later — to Sydney, and in 2017 opened a temporary restaurant in Tulum, Mexico. Redzepi explains that the goal is — «learning by exploring unusual places and meeting new people». He aims for everyone to broaden their culinary horizons, and says that when they return home together, «apply new knowledge».
Expert pitch
The executives I studied were smart enough to avoid snobbery and not intimidate people with an abyss of information. Their methods were subtler.
Personalized instruction. The best teachers practice personalized instruction, tailoring lessons and supporting each student. Great business leaders do the same. They know that everyone needs to be taught in a way that fits their needs, personality and developmental direction. Craigslist founder Craig Newmark remembers advice from a former boss at IBM after an incident when he acted like a know-it-all. The boss discreetly took him aside and quietly said: «Don't correct people if it's not important».
Sanders' subordinate told a similar story. The employee used the words «you guys» at an important business meeting. Sanders later reprimanded him for his cavalier attitude. The manager recalls, «He gave me a hug and made it clear that while the meeting went well, it could have been even better."
The manager recalled.
Robertson was a master of targeted advice and a personalized approach. «He knew how to motivate people and get the most out of them, —says Coleman. —Some should be encouraged, others —forced to step out of their comfort zone. He chose the tactic he thought was more effective»
Questions. Like Socrates, the best leaders like to ask tricky questions that help them understand something themselves as well. According to a colleague at HCA, Frist «d ask questions to make sense of things. He did it «to learn for himself, not to make you feel like you were doing something wrong».
Brinker also «always asked questions» recalls his former subordinate. «What do you think of this one? What about that one? If this were your restaurant, what would you change?"«. He encouraged others to do the same: «Have you talked to your employees? What did they tell you?"»
Modeling. Great leaders know another great technique — personal example. Andrew Golden, president of Princo, said that his former boss, Yale chief investment officer David Swensen, promised ambitious new hires to do whatever he could to help them not only grow, but to get new positions when they were ready (which is how Golden ended up in his current position). He and others have learned this strategy by watching Svensen follow it, and are now applying it themselves. «It's a great tool for hiring» —notes Golden.
One of Frist's subordinates admitted that he learned how to «become much more entrepreneurial» simply by being around Frist, who was «incredibly creative in building the company». Another Frist manager adds: «Watching Tommy, you learn just as much as listening to him». Sometimes all we need to acquire new habits and knowledge — is a good example.
Great leaders understand that even a small personal lesson can make a big difference. As a leader, you own people's attention, and your lessons are more relevant, timely and personal than any leadership training program. By taking on the role of teacher, you will increase loyalty, accelerate team development, and achieve superior performance. For a good manager, learning — is not «unnecessary load» but a responsibility. If you don't teach anything, you're not a true leader.
About the author. Sidney Finkelstein — Professor of Management at Dartmouth Business School, author of «Superbosses: How Exceptional Leaders Manage the Flow of Talent»
