Saturday, 27 January 2018

Sports star turns to leading systemic change

Bruce Fordyce has been famous for winning the Comrades Ultramarathon 8 times in a row, and nine times in total. Yet he is creating a bigger legacy as a systems-inspired leader in South Africa, via the parkrun movement. Free parkruns are getting South Africans out into our parks, waterfronts and other natural areas to run and walk weekly for joy and good health – over sixty thousand participants across the country at over 120 locations just last weekend, for example.
Bridgetown parkrun, 2017. Fordyce backs community leaders to create events like this
What impresses me is that his leadership is deeply empowering.This is not all about him, it is about his energy and backing enabling 2000 volunteers across the country to put on wonderful welcoming healthful events in their local communities. 

He shows up, he encourages and he inspires – but as a leader he doesn’t do the work, he doesn’t control everybody, he creates space for others to lead. As Prof Andrew Thatcher, a parkrunner with over 200 under his belt, says: "Bruce's leadership is about offering his support, encouragement, and occasionally his advice. The real work gets done by inspired teams of volunteers and passionate parkrunners."

It was a big honour to meet Fordyce this morning after he opened a new parkrun in my neighbourhood. What he says is that the change parkrun is bringing to South Africa is his biggest legacy – where winning Comrades brought personal fame, backing parkrun is bringing systemic change.

This is the kind of leadership we need – and actually community health is a good place to start. And the leaders I see succeeding most in business are those who share the Fordyce approach: give direction, inspire others and create space for them to lead.

Wednesday, 24 January 2018

Lessons from the person who bought my business

Just over ten years ago, I sold my shares in the hi-tech business I had co-founded, and stepped out of the founder-CEO role. Recently I asked the buyer (who took over as CEO) to look back on the time of negotiating my departure and his takeover.
Dealmaking limited mainly by your own dedication and creativity
Vision, creativity and confidence backed by the numbers create extraordinary space for change in business

Since then he and his team have taken the business to new heights, leaving me filled with joy to see "my baby" thriving in a difficult commercial environment.

Deal making "to the limits of your own creativity" 

So I asked him how he did it: getting a founding owner-manager-CEO to go peacefully? The secret, he said, was "do your research thoroughly - and then back yourself. The only real limit to deal making is your own creativity." What I see is that he did that. Every time he figured out something I or my co-founding partners wanted, he came back with an adjustment to the deal that honoured that need. Yet every deal he offered was also smart and good for him. He knew - as I know now - that when owner-manager-founders leave, there has to be a discount on the share price.

There is real risk that the business value drops when its founding spirit moves on. And what he bet on - and won big on - is that there is real opportunity to create new value from the fresh approach of new leadership. This is something the wider market can't be sure of. But the new leader can, as my successor so correctly did, back himself.

Keep your focus on what the owners really want 

What my successor did brilliantly (while continuing to keep an eye on his own interests) was to maintain a diamond focus on what the business owners wanted. He kept digging, and he didn't take our word for it. He used every signal and channel available to deduce our needs. At our recent lunch, he shared some of the top concerns he identified, and how ten years ago he was constantly juggling to figure which needs were really our top concerns:

  • New ideas for the business? 
  • Cash for the departing CEO? 
  • Cash for the other shareholders?
  • Investment in the business?
  • The ultimate legacy of the founders? 

Translate needs into numbers 

As I look back on those days, what I think the person who bought my share of the business I co-founded did particularly well, was to translate his insights into our needs and wants into hard numbers. He juggled share prices, options, profit warranties and strategic vision with remarkable dexterity and wisdom beyond his years. In the end I believe he made a deal that fairly benefited the departing founder-CEO, the business, the remaining founders and himself.

And there is a lot for him to be proud of!