As we move with cautious optimism into 2021, I’m happy to share a recent dialogue with Guy Gage, owner of PartnersCoach, a coaching and consulting firm for professionals in private practice. We focused on what COVID has taught us about growth, change and leadership in difficult times.
Crosley: Guy, it’s great to talk with you about leadership, especially in view of your unique background.
Gage: My approach is a bit different because I started out as a counselor in individual and family counseling. Over time, I had the opportunity to work with management teams and I found I enjoyed working with leaders, especially in team development and team conflict. So I made the decision to transition my practice to leader and organizational consulting.
Most of my early corporate clients were professional service firms, with a concentration in public accounting. Eventually, I would spend almost eight years in a four-office CPA firm, so I understand firms from the inside, and from a human development standpoint.
Crosley: Growth always means change to a firm. How would you describe your overall philosophy about growth and change?
Gage: Fundamentally, growth and change are about people giving up certain beliefs and practices and adopting others that allow growth to occur. In my coaching work, I’m often looking at what gets in the way of people doing what they’re supposed to be doing. I was recently talking with a senior manager who is struggling with an innovation within the firm, complaining that his partners just aren’t following suit. So much of any implementation is about the people changing and adapting.
Crosley: How do leaders effectively motivate others through the evolution and challenges facing a firm?
Gage: The two main issues firm leaders deal with are the drive for stability — status quo — and partner conflict. Working through these issues releases firms to do all kinds of great things. Especially when people feel anxious or uncertain as they have over the past year, the natural inclination is to pull back into what they know.
Large changes generate fear, and there is a desire to protect the status quo, rather than venture out.
Crosley: Are there particular leader types that you’ve identified in your experience?
Gage: Yes. I find firm leaders tend to fall into one of three general categories. First are those with a bold vision who are capable of, and primed to, lead through disruption. Today you might find them at the cutting-edge firms that are embracing advisory services and technology. They see the present situation in terms of opportunity.
The second category is those who excel at leading through tragedy. They have deep empathy for clients and others and are warm and caring in difficult settings. They see the same present situation as one that requires reassurance and support.
The third group keeps things moving forward — they are strong in their execution, ensuring that the trains run on time. The same situation is viewed as one in which to continue the disciplines that have made them successful up to now.
So the same situation can be viewed through three different lenses, creating a leadership approach based on how they see reality.
Leaders are usually capable of two of the three and benefit from reinforcing the weaker approach with other leaders. When others in the firm don’t share the leader’s perspective, it can cause resistance and conflict.
Crosley: It sounds similar to the leaders during the early days of the pandemic, when firms were assisting clients with the Paycheck Protection Program. Many launched live videos to provide good client service and enhance firm credibility. However, firms led by those in the “disrupter” category went even further, recognizing the opportunity to reach out to the broader market beyond their current client base, and drive revenue through consulting.
Gage: I know of one firm that leveraged the PPP experience to engage with their clients in a broader discussion about the business beyond accounting and tax. This led to consulting around HR and resource deployment.
The point is that you need a balanced team where leaders can ensure competence in all three areas. If you’re going to be bold, you still need to care for your people and make sure that production is maintained.
Crosley: Also, if you don’t have enough people in a category, maybe it’s time to go out and get them.
Gage: Yes, and sometimes it’s a matter of empowering other leaders in the firm. Do what you can and do it well within the culture of the firm.
Crosley: That ties into a best practice in product management — it’s the responsibility of the innovator to get the others to understand the innovation.
Gage: Right. Sometimes we fail to understand why someone different from us doesn’t “get” what we get. We use our own perceptions as the primary filter for interpreting the words and actions of others. If someone doesn’t respond the way I want them to, I can say they don’t get it, or are resisting, and dismiss them. Or I can say I haven’t done a good job of communicating so that they understand what I’m talking about.
Crosley: I see this continually in firms. If the leader understands their own strengths, they will fill in with others who can complement them. If they don’t have an accurate read, they end up thriving in some areas, but not others. You see this imbalance play out over time with revenue not growing, or trains not running on time or defection of their talent.
The end result is that the market will either reward or punish firms by flocking to or away from them. The typical symptoms when I get a call are similar — no revenue growth, unprofitable growth, or unsustainable growth. And often it’s tied right back to the culture imbued by the leader and their approach.
Your insights are valuable in the context of how firms can grow starting at the top.
Gage: Thanks, Gale for the opportunity to speak to leaders. They are the primary drivers for moving their firm forward and why they must grow themselves and others to lead effectively.
Crosley: Thanks so much for the great insights, Guy!
