Essential Skills: Building Alliances to Secure Resources

While traditional managers combine assigned tasks with appropriate resource allocation, leaders operating in the margins of corporate activity function in a resource scarce environment. Margin leaders rarely have the authority to directly appropriate the resources they need, yet initiatives still require assets (human, capital, knowledge, equipment, etc.).

Managing in the margin requires leaders to form alliances with asset holders in other divisions or even external to the company to source projects. How? By identifying what value they can derive from the investment and building rapport and trust.

First, partners need to know they will receive something back that is greater than what they are being asked to give as few people will part with anything of value for sake of corporate advantage or the "greater good". This could be direct ROI in the form of revenue, but just as effective are indirect benefits such as corporate recognition or new skill development that can lead to heightened prestige within the company or a raise.

Second, managers in the margin must develop rapport and trust to create and sustain partnerships. Proven success, likability, and position can all come into play in maturing the bonds that will keep people in the game when things get rough.

By combining benefits, trust, and rapport, margin managers can bring together alliance networks that have the resources to implement new programs.

Viewpoint: Companies Seeking Creative Leaders

There is an increasing demand for leaders who manage in the margin. A recent BusinessWeek article entitled What Chief Executives Really Want (Frank Kern, May 18, 2010) suggests corporations are increasingly turning to leaders with traditional "margin manager" skill sets. IBM's Institute for Business Value conducted the survey of 1,500 chief executives which found CEOs seek creativity above all other qualities for leadership positions. According to the article, creativity is desired as leaders confront an increasingly complex global marketplace.

"CEOs have seized upon creativity as the necessary element for enterprises that must reinvent their customer relationships and achieve greater operational dexterity....As CEOs tell us that fully one-fifth of revenues will have to come from new sources, they are recognizing the requirement to break with existing assumptions, methods, and best practices."

Leaders adept at managing in the margins are well versed in the disruptive creativity required by global corporations. We break up the status quo with new, fresh ideas for improving performance. We pick apart traditional ways of doing things to explore new markets and business opportunities. We understand how to manage the inherent risks of new ventures.

"Something significant is afoot in the corporate world. In response to powerful external pressures and the opportunities that accompany them, CEOs are signaling a new direction. They are telling us that a world of increasing complexity will give rise to a new generation of leaders that make creativity the path forward for successful enterprises."

If the researchers are correct, the labor market for leaders who can manage in the margins can only get stronger.

(see: http://www.businessweek.com/innovate/content/may2010/id20100517_190221.htm)