What is Leadership?

What is Leadership?

I was on an interesting call this week where the question of “What is leadership?” arose.

Today, there are many definitions, and the concept of leadership has changed over the last seventy years. However, I think the adage that “Great leaders are forged through adversity” still holds. In adversity, great leaders come to the fore as they can get their teams to outperform others during that period when everyone is struggling to achieve their goals and leave a lasting legacy. To me, the “adversity” qualifier is like Warren Buffett’s saying about you don’t know who is swimming naked until the tide goes out; well, adversity is the tide going out.

So, what defines a great leader? Let’s start with the things that don’t.

  • Leadership has nothing to do with seniority or one’s position in the hierarchy of a company. In most cases, people are promoted to leadership positions because of tenure or technical skills; leadership ability is rarely considered.
  • Leadership has nothing to do with titles. Just because you have a C-level title doesn’t automatically make you a “leader,” and you don’t need a title to lead. A great example is Greta Thunberg who has become a leader but without title or seniority.
  • Leadership has nothing to do with personal attributes. While people often associate “leader” with a domineering, take-charge charismatic individual, leadership isn’t an adjective.
  • Leadership isn’t management.  This is the big one. Leadership and management are not synonymous; managers manage things. Leaders lead people. Given the above qualifiers for what leadership is not, some definitions try to capture it but fail.

“The only definition of a leader is someone who has followers.”

This definition, while simple, fails because it is similar to titles. In the video above, the first one dancing is the leader, but I doubt he is still leading once the followers start.

“Leadership is influence – nothing more, nothing less.” This sounds good, but what is the source of influence? If it the leader’s position, e.g., the CEO or the power to cause harm, e.g., your kidnapper, I wouldn’t define it as leadership.

“Leadership is the capacity to translate vision into reality.” Many can translate a vision into reality. An architect or a builder? A painter or sculptor? But I wouldn’t define them as leaders because there are no “others” that they are leading.

Maybe looking at the traits of great, leaders we can better come to a definition. What are the traits of great leaders?

 

Acknowledge people’s fears, then encourage resolve.

The first part is empathy. While this is a personal attribute, which is excluded under the definitions above, I believe without it, you cannot be a great leader because it enables so many of the key attributes. By acknowledging people’s fears, we don’t cover up the crisis and deny its existence. But with the fears on the table, we can then address them and encourage resolve to overcome them. In a crisis, everyone knows that things are bad, but much of the energy and fear exists because of the unknown. Being honest about the situation and facing it allows people to come to grips with the unknown, which enables them to move forward.

 

Give people a role and purpose.

Real leaders charge individuals to act in service of the broader community. They give people jobs to do. But I would add to that; they frame everything within the outcome being sought so that the jobs are not mindless but have a purpose which they can see. It is not about the leader but the great community. I think Shackleton was a great example of this, but I always fall back to David Marquette’s Turn the Ship around.

Inspire others to see opportunities in everything.

There is no playbook in a crisis, so it is up to the leader to be open-minded enough to find possibilities that will help serve their community through their discussions with their team and their data.

 

Be flexible to anticipate the unexpected.

As said above, there is no playbook in a crisis, and leaders must quickly get comfortable with widespread ambiguity and chaos. To get out in front of the crisis they cannot be fixed on any one route but need to see around, beneath, and beyond what they seek. To fully succeed here, they need to get their followers to be flexible, which requires them to understand the greater goal and their role in it and use its core values as their guidelines.

 

Manage everyone’s energy and emotion, including their own.

Crises are exhausting, taking a toll on all of us and possibly leading to burnout. A critical function of leadership is to keep your finger on the pulse of your people’s energy and emotions and respond as needed.

 

Unleash their team’s passionate pursuits.

Passion is what drives experimentation and learning. If everyone is passionate about the outcome, they will seek new ways of addressing the crisis, and great discoveries will be made. Not only will passion drive greater discovery, but it creates more energy. The best example I can think of Apollo 13.

 The Respect to Lead to Leave a Legacy.

Legacies are born during crises. While leaders are most respected based on how well they reacted and responded to all the chaos and uncertainty around them, I believe the key measure is how much of a legacy they leave. Does the organization continue to thrive when they are gone? Do the others in the organization go on to greater and better things? Are the behaviors that enabled it to survive and thrive now part of the company’s DNA. There are many leaders who get the organization through a crisis but leave no lasting mark. I would argue, that they are not great leaders.

So, in conclusion, I would define Leadership as, “A process of social influence, which maximizes the efforts of others, towards the achievement of a goal, and leaves a lasting legacy.”

The key things about this definition are:

  • Leadership stems from social influence, not authority or power
  • Leadership requires others, and that implies they don’t need to be “direct reports”
  • No mention of personality traits, attributes, or even a title; there are many styles, many paths, to effective leadership
  • It identifies the maximization of “efforts”
  • It includes a goal, not influence with no intended outcome
  • Finally, it ties in with a lasting legacy.

Not everyone will become a great leader, but everyone can become a better leader and your organization will thank you. So, start your journey today and if you need help, call me.

 

Copyright (c) 2020, Marc A. Borrelli

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Vistage’s Chief Research Officer, Joe Galvin, presents Vistage’s Q2 CEO Confidence Index Survey recapping our members’ opinions on the economy, financing, and the prospects for their own business. You can see the report here – “The First Steps of the Hard Climb to Recovery Begins.

 

The survey shows that while CEO Optimism was one of the three lowest ever recorded, most CEOs are experiencing an increase in activity with the lifting of lockdowns. However, the survey data is before the initial wave was increasing in the South and West. I feel that we are “At the end of the beginning, rather than the beginning of the end.”

 

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  2. Back to Work/ Work from Home. The pandemic has changed the workplace forever. CEOs have to redesign the workplace with physical health and safety as a priority, and also creates a feeling of protection for those employees returning to that workplace. Compound that with the broad acceptance of remote working as a proven option, which forces leaders to adapt their culture and communications to incorporate remote workers, engage in hybrid meetings, and accept that work-from-home is a permanent fixture in the new reality.
  3. Growth. Leaders need to crank the growth engine back on from a cold start. For 80% of businesses, revenue is down at some level since customers shut down or postponed non-essential purchases over the last three months. Creating new demand, re-engaging with customers, and rebuilding opportunity pipelines are all prerequisites to rebuilding business volume. Quickly adjusting to changed customer behaviors and shaping messages that connect to their new reality will accelerate the return to the growth curve.
  4. Uncertainty. Undercutting everything is the uncertainty leaders feel and face in every direction. There has never been a business scenario like this except in classrooms. Uncertainty about the pandemic’s length, the economic outlook, and the unknown impact on their markets are some of the difficulties facing leaders. Forecasting has become a black art once again, as pre-COVID financial models have lost relevance. The absence of data or clear direction will force leaders to rely on their instincts and judgment to make the best decision and be prepared to adapt quickly.

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World War II started 80 years ago today with the German invasion of Poland. It ended six years later, with over 70 million dead.

I would argue hubris was a significant contributor to World War II. Hubris is the wanton insolence or arrogance resulting from excessive pride or passion. It is the classic temptation of mortals who, finding themselves garbed in the unaccustomed robes of leadership or success, start imagining themselves bulletproofed against disaster — and so tempt the fates. Their own belief that they will prevail is enough to qualify as excessive hubris when they are defeated.
I believe that there is a theme of hubris in the cause of the war and the eventual outcome, as set out below:

  • World War I. Russian hubris started the war. However, the arrogance of the British, French, and Germans encouraged it as each believed in they were right, and they would win the war quickly. Four and half years later and 40 million dead was the cost.

  • The Treaty of Versailles, due to the hubris of the victors, included the War Guilt clause, which John Maynard Keynes referred to as a “Carthaginian peace.” Although there were anti-war rallies at the end of World War I in Germany, many Germans remembered the humiliation of the War Guilt clause. It was this humiliation that made it easier for Hitler to convince the German people that there was a need for more war in the lead up to World War II.

  • German rearmament, in violation of the Treaty of Versailles, began shortly after the Treaty was signed, but exploded after the Nazis came to power in 1933. Despite warnings from Carl von Ossietzky, Winston Churchill, and others, Western leaders were willing to condone a rearmed and powerful anticommunist Germany as a potential bulwark against the emergence of the USSR. I would argue that their hubris, like those of the Weimar political parties, led them to believe they could control Hitler while needing him.

  • The Munich Agreement and Chamberlain’s “Peace in our time” was done to stop the outbreak of war. However, Hitler was potentially weak because of a planned coup by the German General Staff; and as Czechoslovakia had a modern well-equipped army, a war would Germany many lives. Finally, not defending Czechoslovakia made Hitler confident that the Western powers would never effectively oppose him. I would argue that hubris once more played as a role. Chamberlain believed that through appeasement, he could prevent war, and as his main concern was the USSR, he ignored all evidence and information to the contrary.

  • World War II began, as a result, of the British “guarantee” to the Polish colonels, who were on the verge of returning that part of Germany that Poland had acquired from the Versailles Treaty. The Poles, not realizing that the British had no way of standing behind the guarantee, refused to return the lands to German. The refusal was an act of defiance that was too much for Hitler and the superior Aryan race, Germany invaded Poland, and Britain and France declared war.

  • The Battle for Moscow, the first significant defeat of the Wehrmacht at the hands of an ascendant General Zhukov, was a turning point in the Russian campaign.

  • The Battle of Midway was intended to be the knockout blow that Pearl Harbor was not, where the American carrier fleet could be lured out and decimated by the Japanese. However, Japanese indecision and American luck resulted in a significant victory for the Americans, decisively turning the war in the US’s favor.

There are many examples of hubris in business that reflect the destruction of organizations. The greatest to me in recent history was the Financial Crisis of 2008, where all the issuers of CMOs and CDOs believe that property values would always go up. Another recent example to me was the destruction of Sears and KMart by Eddie Lampert.

Thus in life and business, we need to stop hubris before it destroys us. The benefits of the Wisdom of Crowds is known to many. However, these benefits can turn to negatives when Crowds are: not diverse; there is no specific answer, and social influences impose too much pressure. Thus the adverse effects of crowds exist in most corporate environments. How do you keep it at bay? In Vistage, I tell members the role of Vistage is to question your assumptions and stop hubris. I hope you have a group that will help you prevent your arrogance before it destroys you.

 

© 2019 Marc Borrelli All Rights Reserved

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