HBR's 10 Must Reads for New Managers (with bonus article “How Managers Become Leaders” by Michael D. Watkins) (HBR's 10 Must Reads)

1. The transition from functional to enterprise leadership requires mastering seven seismic shifts

It truly is different at the top.

Dramatic increase in scope and complexity. The leap from leading a function to running an entire business unit represents a critical inflection point in a leader's career. This transition involves a fundamental transformation in perspective, skills, and responsibilities. New enterprise leaders must rapidly expand their purview beyond their area of functional expertise to oversee all aspects of the business. They face novel challenges in strategy, operations, finance, and stakeholder management that test the limits of their experience and capabilities.

Seven key shifts in mindset and approach. To successfully navigate this transition, leaders must master seven critical shifts:

• From specialist to generalist
• From analyst to integrator
• From tactician to strategist
• From bricklayer to architect
• From problem solver to agenda setter
• From warrior to diplomat
• From supporting cast to lead role

These shifts require leaders to radically change how they think, make decisions, allocate their time, and interact with others. Mastering them is essential for effectiveness at the enterprise level.

2. Shift from specialist to generalist: Develop broad business understanding

It would be wonderful if newly appointed enterprise leaders were world-class experts in all business functions, but of course they never are.

Broaden functional knowledge. New enterprise leaders must quickly develop a working understanding of all business functions, not just their area of expertise. This requires deliberate learning about finance, operations, marketing, HR, and other domains. Leaders should resist the temptation to over-manage their former function while neglecting unfamiliar areas.

Cultivate holistic business acumen. Enterprise leadership demands the ability to see the big picture and make sound judgments across the entire business. This involves:

• Understanding how different functions interconnect and impact overall performance
• Recognizing trade-offs between functional priorities
• Developing financial and operational literacy to interpret business results
• Learning to ask the right questions of functional experts
• Building relationships with leaders across functions to gain diverse perspectives

Successful enterprise leaders balance breadth and depth, knowing when to defer to functional experts and when to challenge their recommendations based on broader business considerations.

3. Shift from analyst to integrator: Connect the dots across functions

To make the transition successfully, executives must navigate a tricky set of changes in their leadership focus and skills.

Synthesize cross-functional insights. Enterprise leaders must move beyond analyzing data within a single domain to integrating information and perspectives across the entire organization. This requires:

• Identifying connections and patterns across disparate business areas
• Facilitating collaboration and knowledge-sharing between functions
• Resolving conflicts between functional priorities to optimize overall outcomes
• Communicating a cohesive narrative that ties together all aspects of the business

Promote systems thinking. Effective integration demands a holistic view of the organization as an interconnected system. Leaders should:

• Map key interdependencies between functions, processes, and stakeholders
• Anticipate ripple effects of decisions across the business
• Foster a culture of cross-functional teamwork and mutual understanding
• Develop metrics and incentives that reinforce an integrated approach

By becoming skilled integrators, enterprise leaders can unlock synergies and drive more coordinated, effective action across the organization.

4. Shift from tactician to strategist: Focus on long-term vision and planning

Like Harald, many rising stars trip when they shift from leading a function to leading an enterprise and for the first time taking responsibility for a P&L and oversight of executives across corporate functions.

Elevate perspective to long-term value creation. Enterprise leaders must shift their focus from short-term tactical execution to long-range strategic thinking. This involves:

• Defining a compelling vision and direction for the business
• Analyzing industry trends, competitive dynamics, and emerging opportunities
• Making resource allocation decisions to support long-term objectives
• Balancing short-term performance with investments in future capabilities

Develop strategic acumen. Effective strategists cultivate specific skills and practices:

• Scenario planning to anticipate potential futures
• Competitive analysis to identify sources of advantage
• Business model innovation to create new value propositions
• Portfolio management to optimize resource deployment
• Strategic partnerships and M&A to accelerate growth

Enterprise leaders must resist the pull of day-to-day firefighting and carve out dedicated time for strategic reflection and planning. Regular strategy sessions with the executive team and board are crucial for maintaining this long-term orientation.

5. Shift from bricklayer to architect: Design and shape organizational systems

Quite intentionally, the company had assigned him to run a small but thriving business with a strong team.

Shape the organizational context. Enterprise leaders must move beyond executing within existing structures to actively designing the systems, processes, and culture that enable organizational success. This includes:

• Defining and reinforcing core values and behaviors
• Establishing governance mechanisms and decision rights
• Designing organizational structures and reporting relationships
• Implementing performance management and incentive systems
• Fostering a culture of innovation and continuous improvement

Architect for agility and scalability. Effective enterprise leaders create adaptable organizations that can evolve with changing market conditions:

• Build modular and flexible structures that can be easily reconfigured
• Implement scalable processes and systems to support growth
• Cultivate a learning organization capable of rapid adaptation
• Balance standardization for efficiency with customization for local needs
• Establish mechanisms for sensing and responding to external changes

By thinking like architects, enterprise leaders can create the conditions for sustained high performance across the entire organization.

6. Shift from problem solver to agenda setter: Proactively define key issues

Without a basic level of trust, a boss feels compelled to check all of a subordinate's decisions, which makes it difficult to delegate.

Shape the strategic agenda. Enterprise leaders must move from reactively addressing issues to proactively defining the key challenges and opportunities facing the business. This involves:

• Identifying emerging trends and disruptive forces in the industry
• Framing critical strategic questions for the organization to address
• Prioritizing initiatives and allocating resources to drive the agenda
• Communicating a compelling narrative around the chosen direction

Cultivate foresight and influence. Effective agenda setters develop specific capabilities:

• Environmental scanning to detect weak signals of change
• Systems thinking to anticipate second and third-order effects
• Stakeholder management to build buy-in for the agenda
• Storytelling skills to inspire action around key priorities
• Political savvy to navigate competing interests and perspectives

Enterprise leaders must resist the temptation to focus solely on solving immediate problems. By setting a forward-looking agenda, they can align the organization around a shared set of priorities and create a sense of purpose and direction.

7. Shift from warrior to diplomat: Navigate complex stakeholder relationships

To find out how, I took an in-depth look at this critical turning point, conducting an extensive series of interviews with more than 40 executives, including managers who had developed high-potential talent, senior HR professionals, and individuals who had recently made the move to enterprise leadership for the first time.

Manage diverse stakeholder interests. Enterprise leaders must shift from an adversarial, win-lose mindset to a collaborative approach that balances multiple constituencies. This involves:

• Building relationships with board members, investors, regulators, and partners
• Navigating competing priorities across different business units and functions
• Aligning internal and external stakeholders around a shared vision
• Resolving conflicts and fostering cooperation between diverse groups

Develop diplomatic skills. Effective enterprise leaders cultivate specific capabilities:

• Active listening to understand different perspectives
• Emotional intelligence to navigate sensitive interpersonal dynamics
• Negotiation and influence skills to find win-win solutions
• Cultural awareness to operate effectively across diverse contexts
• Coalition-building to mobilize support for key initiatives

By embracing the role of diplomat, enterprise leaders can create the alignment and goodwill necessary to drive major initiatives and changes across complex stakeholder landscapes.

8. Shift from supporting cast to lead role: Embrace being the public face of the business

They must confront a whole new range of tough questions: What are the big issues on our corporate agenda? What opportunities and threats does the whole business face? How can I ensure the success of the entire organization?

Embody the organization's identity. Enterprise leaders must step into the spotlight as the primary representative of the business to internal and external audiences. This involves:

• Articulating the organization's vision, values, and strategy
• Building trust and credibility with employees, customers, and partners
• Representing the company to media, investors, and other external stakeholders
• Setting the tone for organizational culture through words and actions

Develop executive presence. Effective enterprise leaders cultivate specific skills:

• Public speaking and presentation abilities
• Media relations and crisis communication
• Personal branding and reputation management
• Authentic leadership to inspire and motivate others
• Gravitas and poise in high-pressure situations

Enterprise leaders must become comfortable with increased visibility and scrutiny. By embracing their role as the face of the business, they can shape perceptions, build confidence, and rally stakeholders around a shared purpose.

9. Successful transitions require time, support, and deliberate skill development

The setup seemed perfect, but a few months into the new position, Harald was struggling mightily.

Recognize the challenge. The shift to enterprise leadership is a major transition that takes time and effort to navigate successfully. Organizations and individuals should:

• Set realistic expectations for the learning curve involved
• Provide structured support and resources to aid the transition
• Create opportunities for gradual skill-building before the full transition

Invest in development. Effective transitions require deliberate focus on building new capabilities:

• Executive coaching to accelerate learning and provide feedback
• Formal training programs on enterprise leadership skills
• Stretch assignments to build cross-functional experience
• Mentoring from experienced enterprise leaders
• Peer networks for sharing challenges and best practices

Organizations should view the transition to enterprise leadership as a critical investment in their talent pipeline. By providing the right support and development opportunities, they can dramatically increase the success rate of new enterprise leaders.

10. Enterprise leaders must balance breadth and depth in decision-making

To further clarify our analogy between the monkey on the back and the processes of assigning and controlling, we shall refer briefly to the manager's appointment schedule, which calls for five hard-and-fast rules governing the "Care and Feeding of Monkeys."

Navigate the generalist-specialist tension. Enterprise leaders must find the right balance between broad oversight and deep functional knowledge. This involves:

• Knowing when to defer to functional experts vs. challenging their recommendations
• Asking probing questions to test assumptions and uncover potential issues
• Synthesizing diverse inputs to make informed decisions
• Recognizing their own knowledge gaps and biases

Develop decision-making frameworks. Effective enterprise leaders cultivate specific approaches:

• Defining clear decision criteria and processes
• Assembling diverse perspectives and encouraging healthy debate
• Using data and analytics to inform choices
• Considering both short-term and long-term implications
• Balancing analytical rigor with intuition and judgment

By striking the right balance between breadth and depth, enterprise leaders can make sound decisions that optimize outcomes for the entire business, not just individual functions or stakeholders.

11. Effective enterprise leadership hinges on building a strong executive team

Continuing his string of successes, he was promoted to vice president of marketing and sales for the polyethylene division, responsible for several lines of products, related services, and a staff of nearly 200.

Cultivate a high-performing leadership team. Enterprise leaders must shift from being individual contributors to orchestrating the efforts of a diverse executive team. This involves:

• Selecting and developing the right mix of functional leaders
• Fostering collaboration and trust among team members
• Aligning the team around a shared vision and strategy
• Creating a culture of accountability and results

Leverage collective intelligence. Effective enterprise leaders tap into the full potential of their teams:

• Encourage healthy debate and diverse perspectives
• Delegate authority and empower leaders to make decisions
• Facilitate knowledge-sharing and cross-functional learning
• Build complementary skills and experiences across the team
• Create mechanisms for surfacing and addressing team dynamics

By building a strong, cohesive executive team, enterprise leaders can exponentially increase their impact and effectively manage the complexity of the entire business. The team becomes a crucial source of support, insight, and execution capability for driving enterprise-wide initiatives

Last updated: August 15, 2024