January/February 2020

Leading Insight
Do You Have the Traits to Run With the Bulls?

In the recent economic climate of rising share prices and market growth, what characteristics of engineering leaders contribute the most to growth, success, and prosperity?

To determine what leadership qualities can help engineering executives take advantage of a bull market, the consulting and investment banking firm FMI Corp. recently studied over 150 executive-level leaders around the country. The executives came from general contracting firms and A/E firms of various sizes.

Based on their findings, FMI came up with three leadership classifications:

• The coach,
• The stabilizer, and
• The firefighter.

In their report, A Detailed Look at E&C Leadership Styles During a Bull Market, FMI noted that while many of today’s execs had some similarities that include leveraging executive teams around them and looking for opportunities to reduce operational inefficiencies, some unique differences exist.

The coach, for example, is focused on positioning his or her business for future success and does not allow the business to rest on its laurels during success in a flourishing market.

Coaches, according to the report, often had a robust strategic planning process and were “laser-focused on identifying the talent necessary to execute on strategy.” In short, the coach is more focused on people—recruiting and investing in talent that will allow the company to thrive in the future.

The second leader classification, the stabilizer, is slightly more practical and strategizes in a way that focuses on operational excellence versus strategizing toward a desired future state. The stabilizer is usually more concerned with how strategy translates to operational implications while the coach focuses on talent implications.

The third style, the firefighter, is described in the report as a “jack-of-all-trades and a master of none.” These leaders are more focused on risk management and were more likely than the other two types of leaders to be reactionary in their strategic planning. “While other leader types are thinking about the future and being proactive, this leader tends to remain in an immediate, damage-control mindset,” the report states.

The report notes that the coach and the stabilizer leaders were the ones fully taking advantage of the bull market, experiencing higher profit margins during growth compared to recession. Firefighters, however, showed no improvement in profit margins.

“Through this study we’ve confirmed what many have instinctively known over the years: Intentionality on how we lead and where we place our focus as leaders has direct, bottom-line implications,” the report states. “In short, determining the right leadership style for your organization and then developing those competencies essential to leading today with the future in mind just make good economic sense.”