CHAPTER 2 Building Your Independent Executive Business of One Top Characteristics of Successful Independent Executives
We understand that most independent executives are at the top of their field. They are the best at what they do and can solve most CEOs' problems. So why isn't anyone signing on the dotted line or referring more? By far, doing one's own business development and sales is the most challenging part of being an independent executive. We often hear, "It is so much easier to sell someone or something else than myself." One would think that, because nobody knows an executive better than him- or herself, he or she would be the best person for the task. So why are some executives really good at it while others struggle year after year? Independent executives don't become successful without having extensive knowledge and years of experience. However, there are some who go on to be more successful at securing opportunities than others. We have seen this more influenced by traits and characteristics than work history and methodology. Not all are needed at all times, and fortunately, most can be learned if they currently don't sit on top of your "strengths" list. As obvious as most are, there is a fine line between executives who can check them off on a list versus those who leverage them for success.
Honesty Honesty goes well beyond the obvious "do not lie" principle. Being honest with clients and oneself can have a ripple effect in many areas. First, executives should be honest with what type of work they want to do and what they are really good at. Find the passion and don't lose sight of it. While it is true that clients are attracted to those with impressive credentials, that doesn't mean an executive should lie or embellish accomplishments. Exaggerating work experiences and skills might land a client but will put the executive in a position they won't be qualified to deal with or take more time while they learn, causing issues for the client and damaging the executive's reputation in the process. If executives are honest about their capabilities, they'll find the clients best suited for them. Next, an executive should not lose sight of why he or she was brought in by the client. Fear of losing a client due to telling them something the client doesn't want to hear rarely ends well. We have seen executives not be upfront with their clients about what they see because it could cut an engagement short or upset them. When working with clients, they and their company come first, so tell them the reality and not just what they want to hear. Given the nature of the situations executives are brought in to address, leaving out key pieces of information or not speaking up can be just as harmful as a flat-out lie. Bob was working with a company situation that involved internal conflicts with the investor group, the board, and the CEO. The company was losing millions of dollars, and the cause could not be agreed upon. The investor group was looking at selling the company, but the rest of the stakeholders felt otherwise. Bob was brought in as an interim CFO to provide due diligence on the situation and his expert opinion on what should be done. Bob was retained and given SOW direction by the investor group. Within a few days of starting on the engagement, the CEO started changing the SOW to nonrelated items. The items did not correspond to Bob's original SOW created by the investor group; neither did they relate to his expertise. It was not difficult to realize there was no chance of a successful outcome in this situation. Rather than immediately contacting the investor group or bringing the situation up at the next board meeting, Bob instead chose to preserve his relationship with the CEO and the longevity of his engagement. In the end, after months of working on the engagement, this information did come to light, and the engagement was immediately terminated. The blame for the spiraling situation was then placed on Bob, and the individual who had referred him was left to do damage control. Bob never heard back from anyone in the investor group, the leadership, the board, nor the referral partner again. Conversely, Craig was working with a similar situation in which he was brought in by a Private Equity (PE) firm for due diligence. Craig had specific industry expertise, and the PE firm wanted some outside perspective. The firm gave Craig no indication about their current position with the potential acquisition in order not to influence his findings and opinion. Craig was scheduled to spend about two weeks at the company. After four hours, Craig contacted the PE firm and, in one sentence, summed it all up: "This is not a good investment; don't do it." Craig went down the list and confirmed each item the PE firm had suspected but did not feel they had sufficient industry background to substantiate. Craig's engagement was concluded at that point, along with a lasting positive impression, and received a number of ongoing assessment requests from the firm.
Communication Skills Good verbal and written communication skills are useful in a variety of situations. It starts with communicating what executives do best, how they do it and the impact they can have for clients. It continues when they are initially meeting with clients, the ability to quickly understand their needs, and effectively communicate their thoughts and input. It then becomes more critical than ever as they work with clients and need to convey everything from progress to problems. As we saw in the prior examples of Bob and Craig, lack of communication can lead to or help avoid critical situations. Open and succinct communication can make the difference in getting referrals-or not.
Expert Knowledge One of the main reasons executives are approached by clients is for their expertise, which the client expects to be significantly better than that possessed by anyone internally. Because of time constraints, the client looks to the executive for help with troubleshooting problems they have no time to learn about. The executive's knowledge should be broad enough to know what questions to ask, where to research for solutions, and when to involve other executives or experts. If an executive reaches a point at which he or she is stuck and doesn't feel like the best person to solve the issue, the executive can use contacts within his or her network to reach out to for help and advice, or refer them in to the client as the expert for that particular issue. We were contacted by an executive who worked with a group of experts within the consumer goods industry. The group was presenting to a client who wanted to automate his plant. The group had an extensive amount of experience within this industry, including operations and technology backgrounds, having done this many times before. However, they did not have specific experience on some of the automated machinery the client was looking to implement. The group had done quite a bit of research and had enough combined knowledge that they certainly could have figured it out. Instead, they searched out someone who had the specific engineering background needed and brought him in on the engagement. One of the core values they offer clients is that they are all seasoned at what they do and there is no learning on the job. An executive's knowledge should also be current. He or she can stay updated through magazines, training, conferences, and networking with other professionals in the industry. Executives should know their expertise and their sweet spot rather than try to be all things to their client. Every penny the client spends should be invested in the best person to do the job. Additional classes, seminars, and certifications can be useful to deepen an executive's level of expertise and keep current on a range of topics that are important to clients. Reputation An executive's reputation is one of the most important pieces to building a successful business and can be easily harmed in a number of ways, from interactions with clients, referral network, and/or other executives. Executives should take care to maintain their reputations above everything else because once damaged, these are hard to fix. This is why so many executives carefully vet people they work with and clients they take on. According to the 2015 The Independent Executive survey
6, almost 63 percent of all new business comes from referrals. Having any of your referral network question your integrity or abilities can have a lasting impact. This starts with being realistic with what an executive can do for a client, what the client needs, and what is best for the client, rather than focusing on how much money the executive can make. If the executive isn't the best match for what is needed, he or she needs to refer the client to someone who can do a better job for them. Next, it's important to be clear about what is realistic and plausible. Yes, most clients' visions are possible, but be realistic with them about what it will take to get there. Finally, be respectful of fellow independent executives. We have seen executives so focused on getting their next engagement that they lose sight of the value of their referral relationships and are willing to undercut, circumvent, or promise beyond what is possible to get work.
Analytical Skills Clients don't entirely trust executives who seemingly create solutions...
