Here is an excerpt from an article co-authored by Heike Bruch and Sumantra Ghoshal for the Harvard Business Review blog. To read the complete article, check out the wealth of free resources, and sign up for a subscription to HBR email alerts, please click here.
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If you listen to executives, they’ll tell you that the resource they lack most is time. Every minute is spent grappling with strategic issues, focusing on cost reduction, devising creative approaches to new markets, beating new competitors. But if you watch them, here’s what you’ll see: They rush from meeting to meeting, check their e-mail constantly, extinguish fire after fire, and make countless phone calls. In short, you’ll see an astonishing amount of fast-moving activity that allows almost no time for reflection.
No doubt, executives are under incredible pressure to perform, and they have far too much to do, even when they work 12-hour days. But the fact is, very few managers use their time as effectively as they could. They think they’re attending to pressing matters, but they’re really just spinning their wheels.
The awareness that unproductive busyness—what we call “active nonaction”—is a hazard for managers is not new. Managers themselves bemoan the problem, and researchers such as Jeffrey Pfeffer and Robert Sutton have examined it (see “The Smart-Talk Trap,” HBR May–June 1999). [Note: They later developed their insights in a book, The Knowing-Doing Gap, published by Harvard Business School Press in 2000.] But the underlying dynamics of the behavior are less well understood.
For the past ten years, we have studied the behavior of busy managers in nearly a dozen large companies, including Sony, LG Electronics, and Lufthansa. The managers at Lufthansa were especially interesting to us because in the last decade, the company underwent a complete transformation—from teetering on the brink of bankruptcy in the early 1990s to earning a record profit of DM 2.5 billion in 2000, thanks in part to the leadership of its managers. We interviewed and observed some 200 managers at Lufthansa, each of whom was involved in at least one of the 130 projects launched to restore the company’s exalted status as one of Europe’s business icons.
Our findings on managerial behavior should frighten you: Fully 90% of managers squander their time in all sorts of ineffective activities. In other words, a mere 10% of managers spend their time in a committed, purposeful, and reflective manner. This article will help you identify which managers in your organization are making a real difference and which just look or sound busy. Moreover, it will show you how to improve the effectiveness of all your managers—and maybe even your own.
Focus and Energy
Managers are not paid to make the inevitable happen. In most organizations, the ordinary routines of business chug along without much managerial oversight. The job of managers, therefore, is to make the business do more than chug—to move it forward in innovative, surprising ways. After observing scores of managers for many years, we came to the conclusion that managers who take effective action (those who make difficult—even seemingly impossible—things happen) rely on a combination of two traits: focus and energy.
Think of focus as concentrated attention—the ability to zero in on a goal and see the task through to completion. Focused managers aren’t in reactive mode; they choose not to respond immediately to every issue that comes their way or get sidetracked from their goals by distractions like e-mail, meetings, setbacks, and unforeseen demands. Because they have a clear understanding of what they want to accomplish, they carefully weigh their options before selecting a course of action. Moreover, because they commit to only one or two key projects, they can devote their full attention to the projects they believe in.
Consider the steely focus of Thomas Sattelberger, currently Lufthansa’s executive vice president, product and service. In the late 1980s, he was convinced that a corporate university would be an invaluable asset to a company. He believed managers would enroll to learn how to challenge old paradigms and to breathe new life into the company’s operational practices, but his previous employer balked at the idea. After joining Lufthansa, Sattelberger again prepared a detailed business case that carefully aligned the goals of the university with the company’s larger organizational agenda. When he made his proposal to the executive board, he was met with strong skepticism: Many believed Lufthansa would be better served by focusing on cutting costs and improving processes. But he kept at it for another four years, chipping away at the objections. In 1998, Lufthansa School of Business became the first corporate university in Germany—and a change engine for Lufthansa.
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Heike Bruch (heike.bruch@unisg.ch) is a professor of leadership at the University of St. Gallen in Switzerland. She is a co-author of with Bernd Vogel of Fully Charged, published by Harvard Business Review Press (2011)
Sumantra Ghoshal is a professor of strategy and international management at the London Business School.