Senior leaders must possess technical competence and enterprise-specific knowledge. Of greater importance, however, is their ability to work successfully with people. Contemporary research suggests that interpersonal skills have become increasingly more important to achieving business results as individuals advance through organizational ranks of responsibility.

1. INTERPERSONAL SKILLS:
VITAL TOOLS FOR TODAY’S SENIOR LEADER
By Keith Malo, Research Manager
and Chris Blauth, Senior Product Manager
Senior leaders are responsible for translating strate- developed the model “Strategy to Results
gic focus and direction into day-to-day operations. Through People” (Figure 1).
These leaders must possess technical competence First, strategy owners define the result they want
and enterprise-specific knowledge. Of greater to achieve. Then they ask, “What needs to happen
importance, however, is their ability to work to bring about this result?” The response is the
successfully with people. Often leaders are plan of action to bring about the defined end
required to produce results through others, and to result: the strategy.
accomplish their desired objectives, leaders must
be able to manage people. Contemporary execu- Figure 1
tive leadership research suggests that interpersonal Strategy to Results Through People
skills have become increasingly more important to
achieving business results as individuals advance
through organizational ranks of responsibility.1
STRATEGY TO RESULTS THROUGH PEOPLE Executives
AchieveGlobal believes that people are the key to Strategy
business success. Until people take action, goals
and strategies are nothing but words on a sheet of Senior Managers
paper. Results come from people equipped with
the appropriate skills and energized to do the right Resources to transform the vision to action
things at the right time. Any seasoned business
Managers
leader knows that even the most brilliant of strate-
gies will collapse if an organization fails to invig-
Leaders
orate, invest in, and support the people responsi-
ble for implementing it.
Individual Contributors
To better understand the link between business
Organizational Results
results and individuals, as well as to illustrate
how an organization may produce results in commitment » » assessment » » knowledge acquisition » » skills practice » » reinforcement » » application
an efficient manner, AchieveGlobal has
Strategy to Results Through People
1. AchieveGlobal draws this conclusion based on an extensive literary review of works related to executive development and training. Some suggested reading on this topic
may include. “Primal Leadership: The Hidden Driver of Great Performance,“ (December 2001) and “The Young and the Clueless,” (December 2002) each in Harvard
Business Review, along with selected works by Daniel Goleman and Stephen J. Zaccaro.
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2. Next, senior managers direct the resources and with bridging the gap between strategic goals
processes to transform that vision into reality. It and daily operations. In a world with constantly
is critical that this group is successful, as they are changing landscapes and backdrops, this is no
the bridge that unites the organization’s vision simple task.
with the organization’s producers, resulting in
the end product. “Success is painting the vision and having
people really know how they impact that
Thereafter, it is the responsibility of frontline vision on a day-to-day basis.”
supervisors and managers to develop the capa-
bilities within the individuals, processes, and – Assistant Vice President, Information Technology,
systems of the organization to execute and Insurance Provider
implement the strategy.
Finally, individuals deliver the results through Moreover, each day leaders are pulled in multiple
productive behaviors. They take appropriate and directions as they address various business
timely actions – supported by knowledge, issues, implement the objectives of strategy
commitment, and ability – and get things done. owners, and balance the needs and expectations
of their clients, direct reports, and frontline staff.
Once again, organizations get results when indi-
viduals are equipped with the appropriate skills Research clearly shows us that individuals who
and are energized to do the right things at the advance through corporate leadership ranks
right time. often do so as a result of their proven commit-
ment to the organization, or because of their
People deliver results. mastery of profession-specific or technical skills
and not because of their ability as effective
THE IMPORTANCE OF INTERPERSONAL SKILLS people managers. Once promoted, however,
these managers are not always successful.
Supported by a vast library of literature and
AchieveGlobal’s own collective experiences of To survive and thrive in today’s global work-
over 30 years of working with organizations to place, leaders need to be more than book smart
develop leaders, it is apparent that the most and friendly. They need to know how to bring
successful organizations have senior leaders with out the best in others. Today’s leaders must be
solid interpersonal skills. It makes sense to rely equipped with the people skills that will bring
less on technical competencies the further one optimal efficiency, productivity, and profitability
advances from the delivery line. to their organizations.
Despite intense “management training,” many In a series of focus groups conducted by Achieve-
studies over the years have shown that most Global with senior and mid-level managers
senior managers are less effective because they across the United States and the United
don’t know how to motivate and coach staff, Kingdom, one director succinctly described his
solve conflicts, or relate to other people. This view on the popular system that promotes
deficit poses a major challenge to meeting orga- managers as a “double whammy.” Citing the
nizational goals, as leaders are required to common occurrence of the “best salesperson
produce results through others. To realize the being promoted to sales manager,” he stated:
desired objectives, these leaders must effectively “First you lose your strongest producer on the
be able to relate interpersonally. delivery side and then realize conflicts and chal-
lenges on the management side.” He further
Today’s senior leaders continue to be charged
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3. explained that the new managers often lack the emphasis on possessing more technical and
necessary human skills to manage conflicts with strategic qualities. However, some have argued
other managers and the skills to coach and that the appropriate balance was a third each of
mentor direct reports. strategic, technical, and leadership or interper-
sonal skills. Consider the idea that “middle level
To build on this theme, another senior manager managers need the same one-third of the skill
recalled her organization’s recent downsizing mix in interpersonal skills. These managers are
experience and stated, “It was the only layoff we sandwiched between the lower level managers
have had since [incorporating in] 1991. In all and the top managers – requiring finely tuned
honesty, I personally don’t believe it was people skills to survive.”3
managed as well as it could have [been]. Mostly
I think it was due to the newness of it all to the The viewpoint has shifted. More recent litera-
managers.” She went on to recall how poorly the ture, in particular some works by Stephen J.
managers executed the layoff notifications and Zaccaro on the nature of executive leadership,
how unsuccessfully they managed the morale and suggests a greater need for interpersonal skills the
productivity declines of the remaining employees. higher one progresses in organizational
This manager later disclosed that their managers level.(Figure 2)
were not equipped to handle the human sensitiv- Figure 2 4
ities related to downsizing or stabilizing and re-
invigorating the remaining work force. To make
matters worse, at a crucial moment in the orga-
nization’s quest for survival, these managers
lacked critical interpersonal skills.
These situations are not unique.
In another research study2, AchieveGlobal asked
respondents to assess the presence of leadership
behaviors within their organizations. The care- Again, as leaders advance within an organiza-
fully recruited online sample of executives, tion, interpersonal skills become increasingly
managers, and non-managers across the United important to achieving success. Whether it is
States and the United Kingdom replied that the managing a small group of managers, leading an
most observed behaviors were more operations organization-wide initiative, or working with an
related, such as self-motivation, commitment, external party such as a client or vendor, the
and competence. ability to communicate a plan successfully and
manage the human interactions throughout
From our most recent primary research2, it is execution is crucial to accomplishing business
evident that today’s global workplace, from the objectives.
perspective of managers and non-managers alike,
continues to be managed by technically compe- “I think it is showing that you are human.
tent individuals who lack the required interper- You can be all of that – decision maker,
sonal skills to bring an organization to greatness. problem solver, strategic – but you could
be a robot. If your team doesn’t feel you
Historically, it was believed that as one moves to
are approachable, it won’t work. It’s
higher levels within an organization the need for having a ‘human side.’”
interpersonal skills remained relatively
unchanged. This previous generation of executive – Head of Direct Marketing, Mobile Telephone
development thought leadership placed greater Retailer
2. AchieveGlobal primary research includes (a) focus groups conducted in the United States and the United Kingdom with director-level and above audiences and (b) an on-
line leadership survey across the United States and the United Kingdom in which 32 percent of the total sample represented an executive management position or a posi-
tion of vice president to CEO.
3. Buhler, Patricia. “Managers: Out with the Old and In with the New – Skills That Is.” Supervision, June, 1998. 4 Stephen J. Zaccaro, Ph.D, The Nature of Executive Leader-
ship: A Conceptual and Empirical Analysis of Success, American Psychological Association, Washington, D.C., 2001.
4. Stephen J. Zaccaro, Ph.D., The Nature of Executive Leadership: A Conceptual and Empirical Analysis of Success, December 2000.
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4. TOP BUSINESS ISSUES THROUGH THE EYES OF
SENIOR LEADERS “You have to know your environment.
Our greatest denominator for success
To better understand the priorities of the over the past 15 years was our
modern-day global workplace, AchieveGlobal willingness to change. If we hadn’t,
conducted a research study to identify the key we’d be like several of our competitors
business issues of senior business leaders in the who are no longer in business because
United States and the United Kingdom. The focus they refused to change.”
group participants represented a cross-section of
industries and company sizes, including govern- – Director of Transportation, Automotive
Parts Manufacturer/ Distributor
ment and military, and all were director-level and
above in their positions.
CRITICAL SKILL SETS THROUGH THE EYES OF
The top five global business issues that emerged SENIOR LEADERS
from this effort may be found in Table 1.
Table 1 In the business issue research study, AchieveG-
lobal also asked the participating senior
TOP FIVE BUSINESS ISSUES managers to think about critical skill sets or
competencies they believed were most needed by
Surviving in a changing economy and marketplace
themselves and their peers to meet or overcome
Operating at more profitable levels the challenges of their top business issues. The
Daily delivery of customer service
top five skill sets that emerged from this effort
are (Table 2):
Meeting the demands of owners and stakeholders
Table 2
Maintaining quality control
TOP FIVE SKILL SETS
In a separate AchieveGlobal online survey with
business leaders in the United States, four of the Communication skills
top five business issues listed in Table 1 (those Strategic skills
shaded) were also top priorities of that sample.
Problem solving skills
The business climate of the twenty-first century
will undoubtedly be classified as a time of great Technical skills 5
challenge. The future, analysts and opinion Decision-making skills
leaders report, will bring even more uncertainty
as we all adapt to this “new world.” In a time with rapidly changing markets, contin-
uous movement of targets, and unforeseen obsta-
Yet, despite contemporary events, business leaders
cles appearing daily, leaders – now more than
in the United States and the United Kingdom
ever – need to have the skills necessary to map
continue to be focused on core issues that drive
their way through a maze of issues and dilemmas.
business survival and growth. Traditional
concerns associated with remaining competitive The senior managers placed the highest emphasis
such as shifting gears in a changing marketplace, on the communication skill set and believed
attaining greater margins of profit with declining many attributes were vital to success, including:
revenues, and the daily delivery of solid customer
service, along with maintaining quality control
carry on as top concerns for many organizations.
5. An “umbrella” term that encompasses non-soft skills content areas such as personal computing, software and hardware; enterprise-specific (e.g., company policies,
processes, procedures); profession-specific (e.g., CPA, engineer); financial (e.g., reading a P&L or U.S. Securities and Exchange Commission 10K or other management
report with financial data); project management; sales, and marketing.
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5. ■ Being perceptive to the audience and tailoring employees. The need for committed employees is
the message accordingly, while simultane- critical due to our shifting business environment,
ously remaining self-aware of one’s own body which seems to be placing greater premiums on
language and mannerisms in delivering the increased productivity and profitability to
message. achieve competitive advantage.6
■ Listening to what the audience and others
have to say. Often, the senior managers “When we were working on getting our
suggested, managers will hear, but fail to workforce stabilized, we did employee
listen to what peers, direct reports, superiors, surveys and found that communication
and clients are saying, and that can hurt was our biggest animal. The more we
across a number of lines, internally and exter- communicated, the more engaged our
employees became, and the higher the
nally.
productivity became, and believe it or not,
the better our financials became.”
■ Sharing information to empower teams and
to build credibility and loyalty. Openly – HR Manager, Manufacturer
sharing information, such as financial
performance, can make a significant differ-
ence in creating high performance teams, High levels of employee loyalty have been linked
especially during tentative or challenging to an estimated 11 percent boost in productivity.
times. Commitment issues also explain more than 34
percent of employee turnover. And this outcome
■ Equally important to sharing information, the can cost organizations an estimated 100 to 150
senior managers repeatedly stressed the need percent of the departing worker’s annual salary.
to share with teams and others the “why.” Furthermore, loyal workers enhance an organiza-
The senior managers believed that explaining tion’s reputation in the marketplace and this also
helps to recruit better employees. Employee
the reasons why a decision was made (or not
commitment is one of the most important meas-
made) was critical to further building under-
ures of leader success. Worker commitment reaps
standing, credibility, and overall cultures of
benefits far beyond improved organizational
trust. performance. 7
Leader communication has long demonstrated Strategic skills, the managers believed, were
itself as a critical factor in worker motivation and important not only in the visionary sense, but
performance and has great potential to aid also in a practical and tactical context. Their
organizations in their quest for committed prevailing opinion was that executives truly set
the organizational vision and mission. Senior
“I’m in a position where I’m over the
managers, they believed, have to understand
production staff, the mechanics, the
those goals so they are able to develop their own
electrical people, the instrument people
department or division-wide strategies to support
and all of those folks have to give me
feedback. Communication is of the utmost
the larger organization’s objectives. In addition,
importance to solve problems they believed their role was to continuously
expeditiously. Time is money if we remind direct reports and delivery-line staff of
have a machine down.” their individual roles in meeting overall organiza-
tional success.
– Production Manager, Juice Company
6. Mayfield, Jacqueline, and Mayfield, Milton. “Leader Communication Strategies Critical to Improving Employee Commitment.” American Business Review. June, 2002.
7. Ibid.
5

6. Daily decisions need to be made and problems
resolved. The participating managers strongly “The real skill is knowing when you have
believed that decision-making skills and enough information to make a decision
problem-solving skills were also critical for because the chance of you having 100 percent
senior managers. And the managers were careful is nil. Can you make it at 50 percent or do you
to note that decision making and problem solving need 60 percent? Knowing when you have
are two unique skill sets. enough information to make it is the skill.”
With respect to problem-solving skills, the – Administrative Manager, Municipal Government
managers believed that a model problem solver
can sift through information overload or a
number of issues and emotions to identify the
base issue and then develop solutions for poten- INTERPERSONAL SKILLS AND TODAY'S
tial implementation. This skill, they agreed, BUSINESS ENVIRONMENT
requires taking the base problem down to smaller
parts for more effective resolution and manage- So what does this mean?
ment. For the most part, it was held that problem
Consider the business issue, “surviving in a
solving is more of a team oriented exercise than
changing economy and marketplace,” which may
decision making.
include a period marked by recession-like pres-
Decision-making skills were considered the sures such as reduced spending, labor reductions,
ability to choose an option with the best increased costs, lower profits, and contracting
outcomes for all parties, including having the and shifting markets.
wherewithal to foresee the impact of a decision
To survive these conditions, organizations must
on another party, directly or indirectly affected. It
develop and execute any number of strategic
was agreed that most decisions are made on
alternatives. For example, some organizations
limited information. Moreover, it was perceived
may reposition themselves by promoting their
that a good decision maker has the confidence
customer service orientation and/or making
and self-esteem to assume an unpopular stance
themselves the lowest cost provider within the
for the greater good of the organization. One
market. Other organizations may send senior
senior manager noted that her organization
leaders to the field to articulate a clear strategic
would call an effective decision maker a “true
vision that rallies the team around a common
believer.” The prevailing opinion of the managers
focus during tentative times – all in an effort to
was that senior managers are more apt to be
keep employee commitment up and production
charged with decision-making responsibilities as
on track. Some organizations will focus on
the context of the decision may have widespread
lowering and controlling the costs of customer
implications related to policy or strategy.
and employee retention to weather the storm. Yet
Research has shown that employee loyalty, others may promote teamwork and secure
morale, productivity, and satisfaction are greatly systems that support the people who interact
influenced by a manager’s interpersonal skills with customers.
and technique. To remain competitively viable, it
Each of these strategic alternatives comes with
is crucial that senior managers adapt skills that
significant human considerations and challenges.
commit to sharing, listening, and directing.
For example, effectively leveraging the contribu-
tions of all team members in light of rightsizing
activities requires a number of critical leadership
skills.
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7. Likewise, successfully meeting goals, financial or CONCLUSION
otherwise, in light of constant restructuring and
organization-wide changes, requires critical lead- Regardless of the state of the economy or current
ership skills that will maintain morale during the world events, today’s business leaders continue to
tough times, keep operations at peak level in be responsible for translating strategies to the
spite of lower headcount, and facilitate the tactical level. They must direct the practices and
acceptance of change to remain competitive. processes that support and develop competent
and confident individuals. Development that
Consider another business issue, “maintaining recognizes and helps senior leaders shape and
quality control.” Customers and shareholders are reinforce desirable individual behaviors trans-
once again expressing a preference for quality lates into measurable organizational advantages
standards and processes such as ISO 9000 regis- such as superior customer service, greater
tration and Six Sigma. productivity and profitability, and uplifted team
morale.
To respond to this concern, organizations are
executing a number of strategic alternatives. For
instance, some organizations are attempting to
understand and measure the value of quality
standards. Others are establishing quality teams
for analysis, planning, and implementation.
Some organizations are establishing universal
corporate values, while others are participating
in formal registration or qualification programs
and processes.
Once again each of these strategies comes with
some human considerations. For example, identi-
fying and recognizing employees who identify
ways to build quality at the source or achieve
quality goals may be an obstacle for leaders not
trained or experienced at delivering recognition.
Additional challenges may arise in terms of
performance development – specifically, in build-
ing empowered teams to solve problems or devel-
oping individuals to be effective problem solvers.
In each of these situations, senior leaders must
work with other individuals and support teams.
They must exhibit strong interpersonal skills.
Remember people deliver results. And to accom-
plish the objectives, leaders must execute a
combination of interpersonal skills that will
develop and maintain employee buy-in to the
goals and incessantly improve morale and
productivity to remain with and ahead of the
competition.
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8. ABOUT THE RESEARCH Review, Personnel Psychology, Supervision, and
assorted works by Stephen Zaccaro, including
Between December 27, 2002 and January 6, The Nature of Organizational Leadership:
2003, the AchieveGlobal research team Understanding the Performance Imperatives
conducted an online survey on business issues Confronting Today’s Leaders and The Nature of
and skill sets with a random sample of business Executive Leadership: A Conceptual and Empir-
leaders in the United States. A total of 373 ical Analysis of Success.
respondents completed the survey, of which 125
were executive managers (e.g., vice president, C- ABOUT THE AUTHORS
level), while the balance represented other
management ranks. The margin of error is ± 5 Keith Malo is research manager with the
percentage points at the 95 percent confidence AchieveGlobal research team. He brings 12 years
level. of supplier-side research experience to AchieveG-
lobal. Keith’s research career began with the full-
Throughout November and December 2002, the service market research firm National Research
AchieveGlobal research team conducted focus Corporation. Over ten years with National
groups in Omaha, Nebraska; Tampa, Florida; Research he held a number of operations and
and London, United Kingdom. The audience for client service positions, which included the
each session was director level and above. Topics design, management, and execution of various
included the identification and definition of key research projects, quantitative and qualitative,
business issues and the competencies required in utilizing an assortment of methodologies. His
meeting or overcoming the challenges of those career continued with Sterling Research Group,
business issues. In total, nearly 60 individuals Inc., a full-service market research firm, where he
participated in the groups. served as a client services manager. In addition to
his management experience with both firms,
The AchieveGlobal research team conducted an Keith has been a research consultant to a number
online leadership survey October 31 through of clients representing segments within the
November 21, 2002 in which 747 persons healthcare, hospitality/lodging, and entertain-
responded. The survey re-assessed the presence ment industries. With AchieveGlobal, Keith
of critical leadership behaviors in the global manages a number of product and market
workplace. The survey effort included a random research projects. He has authored and co-
sample of workers in the United States, a authored a number of articles and has presented
subsample of U.S. AchieveGlobal research findings at professional conferences.
government/military clients, and a random Keith has a B.A. (political science) from the
sample of workers in the United Kingdom. University of Nebraska-Lincoln. He is a member
Ninety-five (95) percent of the total sample was of the American Marketing Association and the
employed full-time, 40 or more hours per week Marketing Research Association. Keith is a direc-
while five percent were employed part-time, 20 tor-at-large on the board of directors of the
hours or more per week. Thirty-two (32) percent MRA’s Florida chapter.
of the total sample represented an executive
management position or a position of vice presi- Chris Blauth is senior product manager for lead-
dent to CEO. Survey results are ± 5 percentage ership with AchieveGlobal. Since joining the
points at the 95 percent confidence level. AchieveGlobal product management team, Chris
has been responsible for maximizing revenue for
Additionally a number of published articles, numerous products through the creation and
research reports, and books were reviewed and execution of product management strategy. He
consulted, including American Business Review, also guides the organization to develop and
Government Executive, Harvard Business maintain products that meet the training
8

9. industry’s current and future needs. Chris’ recent
accomplishments include launching an asynchro-
nous Web-based tool, designed to reinforce skills
taught in AchieveGlobal’s flagship sales program
Professional Selling SkillsTM, and training
programs addressing competitive selling and
sales presentations. Chris has also facilitated
AchieveGlobal’s popular sales performance and
leadership courses. Prior to joining AchieveG-
lobal, Chris spent seven years with Leica
Microsystems, Inc., holding financial analyst and
product manager positions. Chris earned a B.S.
(accounting and finance) from the University at
Buffalo and an M.B.A. in marketing from Cani-
sius College. Chris is a member of Beta Gamma
Sigma Honor Society and the American Manage-
ment Association.
ABOUT ACHIEVEGLOBAL
AchieveGlobal is the world leader in helping
organizations translate business strategies into
business results by developing the skills and
performance of their people. We are a single
resource for aligning employee performance with
organizational strategy through training and
consulting solutions in sales performance,
customer service, leadership, and teamwork.
With offices throughout North America and a
presence on every continent, we serve more than
70 countries and offer programs and services in
more than 40 languages and dialects. We contin-
ually adapt and translate our programs and serv-
ices to meet the needs of global cultures.
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10. Strategy To Results
Through People
©2003 AchieveGlobal, Inc.
No. M0257 v.1.0 (7/03)
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