Full disclosure: I produce the podcast for Leo Bottary, co-author of the book THE POWER OF PEERS. Maybe it produces a bias. Mostly it produces insights and enthusiasm around the topic as indicated by the subtitle, “How the company you keep drives leadership, growth and success.”
Chapter 1
“CEOs are faced with a singular reality: there are very few people they can reply upon for impartial advice.”
According to a study conducted by the Center For Leadership Development And Research at Stanford Graduate School of Business, Stanford University’s Rock Center for Corporate Governance and The Miles Group, many CEOs struggle with isolation and a sense of loneliness. Almost two thirds of CEOs don’t receive any outside leadership advice. 100% of the respondents said they’d be open to making changes based on feedback.
Sir Richard Branson, “Many people think that an entrepreneur is someone who operates alone, overcoming challenges and bringing his idea to market through sheer force of personality. This is completely inaccurate. Few entrepreneurs — scratch that: almost no one — ever achieved anything worthwhile without help.”
CEOs can teach one another. A CEO can question the validity of joining a peer advisory group comprised of diverse leaders, “How will CEOs who know nothing about my specific business or my industry help me?” And some may wonder, “How much time are we really going to spend on issues that impact my company?”
By coming together CEOs help each other realize their individual goals. Instead of learning through reading case studies, they work in real-time on actual business issues. It provides a broader range of perspectives and business issues. Far more than a CEO would be exposed to from people at their own company.
But there’s something else…another benefit. CEOs in such groups begin to view their companies vertically and horizontally. They pay closer attention to the power of peers within their own organizations.
The power of peers is partly found in not getting answers, but in being questioned. That benefit is sparked because of a few fundamental elements found in an effective peer advisory group.
One, impartiality. Fellow CEOs aren’t bothered with the considerations of employees, board members, suppliers or customers. They have no agenda other than helping one another grow their business.
Two, shared challenges. CEOs in these groups serve completely different customers perhaps, but they share common challenges about employees, growth, profitability, executive development, technology, and a host of other things. Their diversity results in enhanced learning. The more they talk, the more they realize they have a lot in common.
Three, learning. Shared ideas across different industries, at different stages of growth…makes for rich conversations where deep learning happens. Sharing wins and losses builds trust, further deepening the conversation and learning.
Four, empathy. It takes one to know one. People who have never been a CEO can’t relate, but fellow CEOs can. The empathy of people walking in the same shoes is vital to creating an environment where shared experiences enrich everybody’s life.
Five, owning the solution. Peer advisory groups aren’t consulting firms. Instead of offering solutions they help members arrive at their own. And each member decides for themselves what actions they’ll take.
In 1991 Etienne Wenger-Traynor and Jean Lave coined the term communities of practice. It’s been described as “groups of people who share a concern, a set of problems, or a passion about a topic, and who deepen their knowledge and expertise in this area by interacting on an ongoing basis.” That’s exactly what happens inside a peer advisory group of CEOs or business owners.