Know-How: The 8 Skills That Separate People Who Perform from Those Who Don't

Q&A with Ram Charan

Q: You identify 8 know-hows. Can you take us through one of them?
A: In this time of continual change, money making or business models are becoming obsolete more frequently than ever before. It wasn't that long ago when AOL was king of the hill. That leadership was taken over by Yahoo. Now Yahoo is at a crossroads and the leadership has been taken over by Google. So far Google is ahead. It has the central recipe to increase its revenues via advertising because it knows how to measure advertising effectiveness better than anybody else. Leaders at both AOL and Yahoo must be scratching their heads trying to figure out how to reposition the company to make money in the new context. Repositioning is a know-how. It's hard work, and it requires imagination. We will have an opportunity to see about the decision made by Time Warner top brass to summarily replace Jim Miller with Randy Falco of NBC Universal. Randy has a distinguished record. He will have to demonstrate one of the most crucial know-hows in this book: Can he reposition AOL for the new game, and in time? Cost cutting is not the answer.

Q: How can you build your know-how, or help others develop theirs?
A: No talented athlete ever became a champion without consistent regular practice in the right way, along with feedback and hard work. There are no short cuts.That's why you should start practicing early in your career by taking assignments that will help you cultivate the know-hows and seeking out bosses you can learn from.

Q: Many people think of leaders as having innate traits that set them apart from the rest of us. Are you saying we should be looking at skills instead of personality?
A: At the time somebody enters the work force, a great deal of his or her personality has been formed. Most people who talk about leadership today talk about personality, personality, personality. Personality traits, presence, charisma--they will experience attrition if you don't practice them in the context of know-hows. Personality traits and know-hows reinforce each other. In the 21st century, the transparency of results is immediate. Failure is detected very early. Dependence on personality traits without the mastery of the know-hows is a recipe for disaster.

Q: What do you think about the future?
A: The future is very bright. The global economy will continue to expand. There will be more demand for leaders than ever before. Master the know-hows. Hone your personality traits while you're mastering the know-hows. Don't forget that your success must come in the context of global competition. Take the opportunity to win.

Read the First Chapter of Know-How

The Substance of Successful Leaders

Know-how is what separates leaders who perform--who deliver results--from those who don't. It is the hallmark of people who know what they are doing, those who build longterm intrinsic value and hit short-term targets. What gets in the way of finding people who can perform is the appearance of leadership. All too often I see people being chosen for leadership jobs on the basis of superficial personal traits and characteristics, such as:

• The seduction of raw intelligence: "He's extremely bright, incisive, and very analytical. I just feel in my gut he can do the job."

• A commanding presence and great communication skills: "That presentation was awesome. How she ever boiled down all that data onto the PowerPoints is beyond me. Shecertainly had the committee in the palm of her hand. Mark my words, she's going to the top."

• The power of a bold vision: "What a picture he painted of where we are going, moving forward."

• The notion of a born leader: "The people in the unit love her. Such a morale builder and motivator!"

Certainly intelligence, self-confidence, presence, the ability to communicate, and having a vision are important. But being highly intelligent doesn't mean that a person has the knack for making good business judgments. How many times have you seen people confidently making decisions that turn out to be disastrous? How often have you heard a vision that turned out to be nothing more than rhetoric and hot air? Read more from Chapter 1...

--This text refers to the Hardcover edition.

From AudioFile
The type of performance discussed in this lesson is that of a CEO or other high-level executive who has broad responsibility for a complex organization or group of business units. The skills discussed are organized into eight areas that Charan explains are critical for a business to be competitive and profitable. With crisp vignettes, the author fleshes out the thinking and behavioral strategies that work in each domain. His sweeping insights about the business and economic landscape and his descriptions of personality and emotional factors are priceless and far-reaching. Thanks to Morey's interpretive clarity and enthusiastic tone, an appealing narrative drive is created, keeping Charan's message alive and creating anticipation for what is to come. T.W. © AudioFile 2007, Portland, Maine-- Copyright © AudioFile, Portland, Maine

Reader Reviews
This review is from: Know-How: The 8 Skills That Separate People Who Perform from Those Who Don't (Hardcover) In an era of constant change, there is a crying need for leadership. Although change is a constant, today's magnitude, speed and depth, is unlike previous renditions. Multibillion dollar businesses emerge from nowhere. Highly-valued institutions and organizations are rendered impotent over-night. Yet, many cling to choosing future leaders on the basis of superficial personal traits and characteristics. How many times have you heard an anointed future leader described as "intelligent," "a commanding presence," "a great communicator," "having a bold vision," or "a born leader?" Ram Charan, a consultant with a Harvard Business School MBA and doctorate, has identified, eight skills - he calls them "know-hows" - essential for leadership success: 1. Positioning and Repositioning. The ability to find an idea for the organization that meets customers' demands and makes money. 2. Pinpointing External Change. The ability to identify patterns that place the organization on the offensive. 3. Leading the Social System. The ability to get the right people with the right behaviors and the right information to make better decisions and business results. 4. Judging People. The ability to calibrate people based on their actions, decisions and behaviors and matches them to the job's non-negotiables. 5. Molding a Team. The ability to coordinate competent, high-ego leaders. 6. Setting Goals. The ability to balance goals that give equal weighting to what the business can become and what it can achieve. 7. Setting Priorities. The ability to define a path and direct resources, actions, and energy to accomplish goals. 8. Dealing with Forces beyond the Market. The ability to deal with pressures you cannot control but affect your business. Citing case studies from his consulting practice, Charan identifies personal traits of leaders that help or interfere with the know-hows. 1. Ambition. The drive to accomplish something but not win at all costs. 2. Tenacity. The drive to search, persist and follow through, but not too long. 3. Self-confidence. The drive to overcome the fear of failure and response, or the need to be liked and use power judiciously but not become arrogant and narcissistic. 4. Psychological Openness. The ability to be receptive to new and different ideas but not shut other people down. 5. Realism. The ability to see what can be accomplished and not gloss over problems or assume the worst. 6. Appetite for Learning. The ability to grown and improve know-hows and not repeat the same mistakes. Charan reduces the concept of business leadership to essential qualities. Know-How is readable and insightful. By linking personal attributes and business success, he delivers a vital message to a society starving for true leadership.  Comment | Permalink |  (Report this)