{"id":46915,"date":"2024-09-25T17:06:46","date_gmt":"2024-09-25T21:06:46","guid":{"rendered":"https:\/\/directiveconsulting.com\/uk\/?p=46915"},"modified":"2024-09-30T14:09:20","modified_gmt":"2024-09-30T18:09:20","slug":"leadership-advice-for-b2b-saas-brands","status":"publish","type":"post","link":"https:\/\/directiveconsulting.com\/uk\/blog\/leadership-advice-for-b2b-saas-brands\/","title":{"rendered":"Why “Hire Smart People and Get Out of Their Way” is Misguided Leadership Advice"},"content":{"rendered":"

You\u2019ve heard the leadership mantra: \u201cHire smart people and get out of their way.\u201d Seems like sound advice.\u00a0<\/span><\/p>\n

But I have bad news for you: This hands-off approach is misguided and fundamentally flawed.\u00a0<\/span><\/p>\n

Actually, that\u2019s putting it mildly. In the words of <\/span>Directive<\/span><\/a> CEO <\/span>Garrett Mehrguth<\/span><\/a>, \u201cThis is TERRIBLE leadership advice and always leads to firing and stagnation.\u201d<\/span><\/p>\n

The Problem with “Hire Smart People and Get Out of Their Way”<\/strong><\/h2>\n

What\u2019s the real problem? This idea of \u201cgetting out of the way\u201d as a leader implies that once you\u2019ve assembled a team of top-notch talent, your company will automatically thrive without further intervention. But that\u2019s simply not true.\u00a0<\/span><\/p>\n

When leaders adopt an overly passive or permissive approach, they inadvertently set the stage for a dysfunctional workplace, marred by a lack of accountability, lack of cohesion, and lack of direction within their teams.\u00a0<\/span><\/p>\n

The result? A floundering business on the fast track to failure.\u00a0<\/span><\/p>\n

Consider a few of these leadership missteps that serve as harrowing reminders of what <\/span>not<\/span><\/i> to do:\u00a0<\/span><\/p>\n

BlackBerry<\/strong><\/em><\/h3>\n

Jim Balsillie and Mike Lazaridis led BlackBerry as co-CEOs for well over a decade\u2014from 1998 to 2012. While they were praised for the company\u2019s initial success, they grew overconfident and chose to settle with stagnation rather than engage in innovation.<\/span><\/p>\n

As Apple and Android came out with touchscreen smartphones and new apps, BlackBerry\u2019s leadership remained fixated on its outdated, keyboard-centric devices. This complacency, coupled with a failure to prioritize software development and user experience, led to the company\u2019s ultimate downfall.<\/span><\/p>\n

By the time leadership finally attempted to act, adapt, and shift their strategy, it was too late, and BlackBerry eventually stopped manufacturing smartphones or other hardware devices altogether.<\/span><\/p>\n

Yahoo (pre-acquisition)<\/strong><\/em><\/h3>\n

Yahoo faced a slew of challenges from the mid-2000s to 2017, thanks in part to the poor leadership of CEOs Terry Semel, Jerry Yang, and Marissa Mayer. While each leader had unique strengths, they were all ultimately <\/span>faulted<\/span><\/a> for their lack of cohesive direction and inability to keep up with all the rapid changes in tech.\u00a0<\/span><\/p>\n

Frequent shifts in leadership managed to compound these issues, and Yahoo missed a few golden opportunities\u2014i.e., the chance to acquire Google and Facebook\u2014which could have dramatically altered its trajectory.<\/span><\/p>\n

As Yahoo struggled to compete, it became increasingly clear that passive leadership and a lack of accountability were significant roadblocks. The company’s failure to innovate and adapt ultimately led to its sale to Verizon in 2017.<\/span><\/p>\n

General Motors (pre-bankruptcy)<\/strong><\/em><\/h3>\n

Rick Wagoner was Chairman and CEO of General Motors (GM) from 2003 to 2009. He\u2019s been widely <\/span>criticized<\/span><\/a> as a leader that, though personable, didn\u2019t challenge company culture, respond well to crises, or demand innovative solutions from his team.\u00a0<\/span><\/p>\n

Through Wagoner\u2019s complacency and lack of direct leadership, GM failed to adapt to changing market conditions\u2014and had to file for bankruptcy in 2009.\u00a0<\/span><\/p>\n

The Importance of Active Leadership<\/strong><\/h2>\n

If you don\u2019t want your business to fail, you <\/span>have<\/span><\/i> to take an active approach to leadership. Let\u2019s look at some leaders who\u2019ve done this well:\u00a0<\/span><\/p>\n

General Motors (today)<\/strong><\/em><\/h3>\n

GM\u2019s bankruptcy in 2009 led to a government bailout and huge company restructuring. Shortly after, in 2014, <\/span>Mary Barra<\/span><\/a> took over as CEO and Chairman\u2014and her approach has been anything but passive and complacent.\u00a0<\/span><\/p>\n

Barra\u2019s drive, curiosity, and forward-thinking approach is evident in GM\u2019s current focus on EVs and <\/span>sustainability efforts<\/span><\/a>\u2014a big shift from its global reputation as a gas-powered vehicle manufacturer.\u00a0<\/span><\/p>\n

\u201cDo every job you\u2019re in like you\u2019re going to do it for the rest of your life, and demonstrate that ownership of it\u201d Barra advises.\u00a0<\/span><\/p>\n

Now, with the help of Barra\u2019s direct leadership and innovative spirit, GM is excelling in the automotive industry. Based on a recent <\/span>Forbes<\/span><\/a> article, the company recently reported \u201cstronger-than-expected Q2 2024 results, with revenue rising by 7.2% year-over-year to $48 billion.\u201d\u00a0<\/span><\/p>\n

Apple<\/strong><\/em><\/h3>\n

You can\u2019t talk about active leadership without mentioning Steve Jobs. Jobs is often quoted saying, \u201cIt doesn’t make sense to hire smart people and tell them what to do. We hire smart people so they can tell <\/span>us<\/span><\/i> what to do.\u201d<\/span><\/p>\n

But, Mehrguth counters, \u201cDo you think Steve Jobs was known for getting out of the way?\u201d<\/span><\/p>\n

Nope.<\/span><\/p>\n

Jobs was famous (or, some may argue, <\/span>in<\/span><\/i>famous) for his hands-on approach. This man wasn\u2019t just a visionary\u2014he was deeply entrenched in product development and demanded excellence and perfection.\u00a0<\/span><\/p>\n

Jobs valued finding the best talent, but he also felt strongly that \u201cinnovation distinguishes between a leader and a follower.\u201d In the tech world, Jobs is the ultimate example of proactive leadership; he consistently pushed the boundaries, challenged the status quo, and led from the front.\u00a0<\/span><\/p>\n

Under their current CEO Tim Cook, Apple continues to report <\/span>impressive earnings<\/span><\/a>. Thanks to the solid foundation built on Jobs\u2019 visionary principles and Cook\u2019s own strategic foresight, Apple still dominates the tech industry.\u00a0<\/span><\/p>\n

Amazon<\/strong><\/em><\/h3>\n

Like Jobs, Jeff Bezos of Amazon was actively involved in product development and strategic innovation. And, like Apple, Amazon <\/span>continues to thrive<\/span><\/a>.\u00a0<\/span><\/p>\n

As Bezos himself noted, \u201cWhat\u2019s dangerous is <\/span>not<\/span><\/i> to evolve.\u201d\u00a0<\/span><\/p>\n

Evolution, adaptation, and innovation are critical to success. And to have your company evolve, you need to <\/span>be involved<\/span><\/i>.\u00a0<\/span><\/p>\n

Balancing Autonomy and Guidance<\/strong><\/h2>\n

Let\u2019s be clear: Active leadership is <\/span>not<\/span><\/i> about micromanagement. It\u2019s about providing strategic guidance, building trust, fostering collaboration, and driving results.\u00a0<\/span><\/p>\n

How to Achieve This:\u00a0<\/span><\/p>\n