Summing Up
Is There Really a Formula for Great Leadership?
The overall sense of responses to our question for the month is that the leadership stars of today—Jobs, Bezos, Gates, etc.,—should not cause us to change our time-honored ideas about great leadership. Among the notions advanced were that they: (1) are special, (2) are entrepreneurs first and leaders second, (3) or represent a kind of leadership important for only one phase of the longer-term development of a business. Comments did suggest, however, that some ideas about leadership can benefit from a reexamination.
Tema Frank addressed a couple of these points when she said, "The fact that we can name so few leaders as readily as the ones cited in the article is because they are exceptions. There is no question that brilliant, strongly mission-driven founders can inspire people to follow them, despite personality flaws." Once the excitement fades, a different type of leadership is essential. Bill Eickhoff would compare Jobs, Bezos, etc. to Ford, Edison, etc. "No one ever raves about their so-called 'leadership' style. These men were outliers. Their style is not duplicable."
Kim Forbes set forth an interesting hypothesis in commenting that "We will always be able to identify examples of leaders that 'buck' the now orthodox definition of the balanced, emotionally intelligent, people-focused leader… the likes of Gates and Jobs may have highly effective leaders below them and they are the true heroes of these large successful corporations, in spite of their dysfunctional 'leadership'."
Today's leadership heroes, however, stimulated debate about just what constitutes leadership. It is an important discussion, as several pointed out. Paul Stavrand put it this way: "We need to be concerned about the outcomes of business practices and products on our global society, and evaluate leaders accordingly." Yadeed Lobo commented that "the mark of a great leader is the impression they leave on any employee." G. P. Rao added that the lack of humility and leadership appear to be inconsistent, if not contradictory. "In the ultimate analysis, however everything boils down to perception of the team members or subordinates or followers of the leader concerned."
The importance of maintaining an open mind on the subject of leadership was stressed by several. Ronnie Kavuma commented that, "I think that there is a place for both kinds of leaders and/or their schools of thought in the modern high tech and versatile business environment." David Wittenberg said that an "effective leader must be true to himself. Personalities differ, so leadership styles differ. It is a common fallacy that there is only one style that leads to leadership success." Pradip Shroff added: "The simple fact is that leadership is an art and science of blending various styles based on the situation." Yan Song summed up this point by commenting that, "Stereotyping leadership might be the greater danger here. Evolution neither begins nor ends with current crops of leaders. In all practical situations, one needs a mixture of different leadership styles to induce human energy … " Jerry Houser advised us to consider that "understanding leadership means understanding the emotions of leaders and followers. Brain science is making me question much of the literature I've read on leadership."
These comments call for the question: Is there really a formula for great leadership? What do you think?
Original Article
Just as I began to conclude that I understood leadership pretty well, I've begun to wonder. Let's start with the leadership associated with large organizations with relatively long histories.
In recent years, we have been educated by concepts such as MBWA (management by walking around, introduced by Tom Peters and Robert Waterman), Level 5 Leadership (described by Jim Collins as centered around personal humility and professional will), servant leadership (defined by Robert Greenleaf in terms of service to others as a leader's most important role), and authentic leadership (characterized by Bill George as comprising leaders who understand their purpose, are true to a set of solid values, lead with their heart, establish connected relationships, and demonstrate self-discipline), among others. These philosophies, based on a lot of anecdotal evidence, describe the kind of people we'd want to work for. They are associated with large, well-established organizations that I studied and admired in graduate school, the kind that Collins and Jerry Porras wrote about as being "built to last."
Then I read biographies of today's business heroes. They portray people who are not short on vision. But are these people who meet the standards for great leadership described above? For example, both Steve Jobs and Jeff Bezos are said to have challenged people to do their best work, but in somewhat demeaning ways. They, along with Bill Gates, threw public tantrums. Whether it is a consequence or not, there appears to be a trail of former executives of Apple, Amazon, and Microsoft. (I specifically referred to heroes in my question, because potential heroines like Sheryl Sandberg and Marissa Mayer have just recently risen to high levels in the high-tech world.)
Maybe venture capitalists have the answer. They have followed a long-standing practice of cashing out founders and entrepreneurs at the time of a first or second round of outside funding. The idea is (or was?) that at that stage of development, an organization needs professional leadership of the kind that Peters, Waterman, Collins, Greenleaf, George, and others describe.
Maybe Jobs, Bezos, Gates, and others are the exceptions that didn't get cashed out. They survived the venture capitalist's "purge" by growing their companies in ways that allowed them to retain ownership and control. Or they made their genius indispensable to the success of their companies (in the eyes of funders). When asked the standard "cash out" question by venture capitalists, "Would you rather be rich or be king?," they must have answered, "Both," and made it work.
Should we attribute a few examples of the Jobs-Bezos school of leadership to the diversity within any small group of leaders, or to the world of high-tech startups? Regardless, they cast long shadows in that they appear to be the inspiration for a new generation of entrepreneurs who are founders of companies getting very big very fast with neither formal leadership training nor thought of cashing out.
Are founders and entrepreneurs a separate breed? Should they be excused from a discussion of great leadership? Or are the most successful among their ranks a harbinger of the future of management in a fast-moving, high tech competitive world that increasingly rewards innovation, transient competitive advantage, and the kinds of leadership that produce them? Are today's business heroes challenging our ideas about leadership? What do you think?
For Additional Reading:
Jim Collins, "Level 5 Leadership: The Triumph of Humility and Fierce Resolve," Harvard Business Review, January 2001, pp. 67-76.
James C. Collins and Jerry I. Porras, Built to Last: Successful Habits of Visionary Companies (New York: HarperBusiness, 1994).
Bill George, Authentic Leadership: Rediscovering the Secrets to Creating Lasting Value (San Francisco: Jossey-Bass, 2003).
Robert Greenleaf, Servant Leadership (Mahwah, N. J.: The Paulist Press, 1977)
Walter Isaacson, Steve Jobs (New York: Simon & Schuster, 2011).
Thomas J. Peters and Robert H. Waterman, Jr., In Search of Excellence: Lessons from America's Best-Run Companies (New York: Harper & Row, 1982).
Brad Stone, the everything store: Jeff Bezos and the Age of Amazon (New York; Little, Brown & Company, 2013).
Note: There is no reference to a biography of Bill Gates. While several are available, I don't believe the definitive biography for him as a business leader has yet been written.
Once again, CEO tenure is beginning to shorten and accordingly, these leaders view their roles as short term stewards to accretion and not necessarily as stewards of longer term sustainable positioning and value.
As such, many of these leaders, founders/visionaries or not, place their personal and professional interests above those that they lead. In times of uncertainty and in the face of a rapidly reforming global economy characterized by technology and asymmetrical aspects, this is especially prevalent.
Winning trust among leadership teams is essential to building winning but flexible strategies and effective execution. Today, we are "brain driven" by talent in every respect. And, if top talent isn't fully engaged and in an environment where trust of competency and action leads to winning, it see no barriers or any alternative but to exit.
In the ultimate analysis, however, every thing boils down to perception of the team members or subordinates or followers of the leader concerned. The projection of humility by the leader may be perceived as his genuine face or act of concealed hypocrisy.
In addition, leadership at all levels of the organisation is important so the like of Gates and Jobs may have highly effective leaders below them and they are the true heroes of these large successful corporations, in spite of their dysfunctional 'leaders'. This phenomenon too I have witnessed.
I understand that CEO compensation is very complicated and for very important reasons. How do you motivate CEOs to act like owners of the Enterprise, i.e. act in the best long term interest of the Enterprise, when in fact, the majority of their potentially astronomical compensation package comes from stock options, that both they and the real owner of the Enterprise, the Stock Holders are very motivated and even demanding to see the value increase this quarter, not a year or two down the road, much less the three to five years necessary to see strategic change take root?
The answer to that seemingly self-contradictory problem is probably as difficult as the central one we face in my industry, Managed Health Care. How do you motivate providers and user of healthcare to control cost when a third party is paying for it; talk about complicated and convoluted solutions we come up with!
I do not claims to have the answer to either dilemma; however, I do believe the problem of CEO motivation became hopelessly complicated and dysfunctional when the Boards that are supposed to hold CEO's accountable for performance, also became compensated by stock options.
Now the Board is essentially in the same bed as the CEO and no matter what types of complicated and convoluted checks and balances that are created to make sure everyone in acting in the best, long term interest of the Enterprise, the whole system it too easily "Gamed" to the advantage of all those who are supposed to prevent such "Gaming" in the first place!
The CEO and Board are being incentivized to go for short term gain. Throw in Golden Parachutes and I fail to see what real risks a CEO runs if he or she chooses to "Game" the system to get rich quick, regardless of the medium to long term consequences to the Enterprise and as I have pointed out, the Board may significantly benefit by such behavior as well.
Most respected leaders in Indian business, till the mid-90s, followed the traditional culture of humility, remaining in the background in public, of treating the organization as family. Maybe this was rooted in Indian culture of living as a large undivided family, where four or more generations lived together, of bending and mending to absorb and accumulate different viewpoints, but rarely splitting.
That has changed to nuclear families, and that has affected values and thinking. We are increasingly becoming a "transactional" society from being a "relationship" based society. I guess we have to accept this and go with the evolution.
let's hope that the current crop of leaders understand these time tested wisdom and get extraordinary efforts from their people.
So a true leader should know when to exhibit the different traits. He should know when to take charge and when to step back
In the leadership class I teach, we discover that an effective leader must be true to himself. Personalities differ, so leadership styles differ. It is a common fallacy that there is only one style that leads to leadership success.
This does not excuse bad behavior by leaders, nor does it signify that the ends justify the means. It merely reminds us that followers may give their hearts and minds equally to either tough-minded and prickly or soft-hearted and gracious leaders as the circumstances dictate.
ng small, third or fourth generation family enterprises, unsullied by the oppression of large corporate performance management / long-term bonus schemes? In their own quite way, they are putting mighty dents in the universe.
Unfortunately in today's world, narcissism and the cult of personality is so pervasive. It has become hard to distinguish between the image portrayed and what the person actually is upfront.
With so many autobiographies/secretly paid for biographies being published(like the recent one from New Zealand's sitting Prime Minister) it almost seems as if everyone wants to prove/justify their leadership in words not earn their leadership in genuinely intentioned actions.
I guess the mark of a great leader is the impression they leave on any employee.
One I think which is very important is the ability to genuinely listen and then actually follow-up. To the rank and file in any organisation who just wants to make their voice known and feel a bit important, that can make all the difference.
storic circumstances that you willingly put up with sometimes cringeworthy behavior in order to be part of those things. To be fair, if he thought you were ok and part of the team, then you were not often subject to the objectionable behavior.
re humility. In any age, what dominates the popular press is hardly the leading edge of evolution. Jobs, Bezos and Gates are hardly the pinnacles of leadership nor the most ruthless organizers of human endeavor in history. We could all learn something from their great accomplishments without necessarily embracing the abrasive aspects of their imperfect personality as is the case for the rest of us.
While going through various theories of leadership, particularly, with my ongoing teaching career, I found every theory speaks about leadership in an unique way. Every theory has a situational relevance and no theory can be best fitting to all situations. Personally, I feel, in today's context Higher Ambition Leadership is most appropriate in ideal situations of competitiveness and innovation, where managers are need to bring differences.
In the context of the futuristic orientation of leadership, I feel, exploration of great leadership practices will continue either by creating a new theory altogether or by merging two or more theories to suit the situation. The technical skills will be contributory to effective leadership practices.
There is no question that brilliant, strongly mission-driven founders can inspire people to follow them, despite personality flaws. As Guy Kawasaki said in my interview with him (http://frankonlinemarketing.com/guy-kawasaki-steve-jobs-hockey-crappy/), "When Steve said your idea was crap, it really was crap."
Remember too that Jobs got fired because of his personality flaws. Turned out he was so determined and so brilliant in his understanding of consumer behaviour that the company needed to give him a second chance or die. And, as one of the other commenters noted, people will put up with a lot if they get to be part of something truly revolutionary and exciting.
Once the excitement fades, a different type of leadership is essential. Which is why most company founders do end up stepping back eventually, and accepting the need for more professional leadership. (Unfortunately, those leaders also often fail because they lack the inspirational vision of the founders.)
So, understanding leadership means understanding the emotions of leaders and followers. Brain science is making me question much of the literature I've read on leadership. Even in my MBA program where we were being trained to use "scientific" tools for decision-making, logic, numbers, and rationality did not often win out in case studies or role plays.
Are there any "non-consumer" or "B2B companies whose CEOs have reached the same iconic stature? What are their leadership behaviors (if there is a pattern)? Have those behaviors changed over the decades?
I wonder....exactly what ARE our ideas about leadership? And who annoints...or deifies...these business leaders?
I've worked for C level executives who said "it's all a game"...meaing, a game to get all the money they can and get out of Dodge. People were as as disposable as a Bic pen. All that mattered was their compensation. Is that leadership? Of course not.....but that's often their mindset. Founders and entrepreneurs can sometimes be a different breed, but not always.
The question is really about what drives a leader. What's his/her motivation? What does he care about? What will he do when the going gets tough? Hard to know.....but that's what I strive to figure out before I'd conclude that a person in a leadership position is somehow "special".
I noticed that Jobs spent his last 6 months working on his autobiography. When asked why he said " I wanted my kids to know me". That's pretty pathetic. He should have done I Dad. The extreme majority of businesses and organizations absolutely need the servant leadership model. Look at Tony Hsieh of Zappos and Jim Sinegal at Costco. Leaders lead people not things!
Thanks to a focus on "shareholder value," many if not most CEOs are not leaders, but rather managers. Consider the difference between Fred Smith of FedEx and the unknown-to-the-public Postmaster General who heads the Postal Service.
Both lead large organizations. I assume both manage their organizations effectively in terms of planning, budgeting, organizing and controlling, etc.
But Smith has an entrepreneurial vision of growing a business, while the Postmaster General has a bureaucratic vision of managing an enterprise.
Bureaucracy works well as long as things are stable. And most ceos are, in fact, bureaucrats. Business bureaucrats can build sales, manage costs, maintain or increase profits. Business leaders, on the other hand, build new enterprises -- sometimes those new enterprises are built out of an old enterprise.
Consider the history of The Wall Street Journal: Barney Kilgore had a vision of a national business newspaper. And he intuitively understood how to define his market: The businessman in San Francisco is in pretty much the same things as the businessman in New York.
On that premise, he took the Journal from 29,000 circulation to more than 1 million the day he died. Along the way, he figured out how to deliver the same paper to readers in San Diego and New York, in Milwaukee and New Orleans, the same day.
But Kilgore wasn't bombastic: He literally "managed by walking around." Instead of having department heads report to him, he walked down to their offices every morning, along the way talking with employees. All descriptions of him show him to be quiet and humble.
Or consider the history of the St. Petersburg Times (now the Tampa Bay Times). Nelson Poynter had a vision of building "Florida's Best Newspaper" and systematically did so, in the process becoming the first newspaper to print color photos or maps on the front page of every section, every day. And he was the first businessman to successfully win an unfair labor practices charge AGAINST a labor union.
There are many reasons for the economic troubles of the newspaper business. But one has to be the development of large media chains.
The ceo's of these organizations aren't focused on innovation, but rather maximizing profit. And the local publishers have exactly the same objective.
So when the web came along, they responded like Postal Service bureaucrats -- not like the newspaper publishers of the 1920s, 1930s and 1940s almost all of whom were among the first to get licenses for those new-fangled things call radio and television.
1. intelligence of the situation
2.careful decision making
3. relational competences to get real team support
4. charisma and modesty well balanced when the company faces important difficulties.
Service, support, empowerment and continuous learning are important as well on an every-day basis.
Obviously, other leaders have tried different styles based on their own industry, newness of their ideas, type of workforce around them etc. Many of them have been very successful. Not all of them are as publicly known or their impact on society as visible. That does not diminish their achievements or validity of their approach. Celebrity nature of the leaders mentioned in the article does not make them role model for all, in all situations.
"Humility and integrity are the two most important traits of a great leader. Today we need leaders who not only show to their associates the stars in the sky but enable them to reach them as well."
I believe the recent Market Basket saga would be a great case study as we are observing an unprecedented non-union strike of hourly employees who are not asking for additional wages or benefits, but for the return of their recently ousted yet beloved CEO -- Arthur T. Demoulas. Clearly they are passionate to this man, someone they believe is such a great leader, they would put their own job security on the line.
e knowledge and confirming the dismissive views of them by the highly powerful. Leaders definitely need others, but enormous love and respect for a leader who has a flawed vision, misses important external changes, and only focuses on good relationships is also problematic. Beware of universal models!
I might add that Steve Jobs had an extraordinary ability to inspire and persuade that may have offset his rough edges in the area of emotional intelligence and social calibration.
The bottom line is that many schools and companies are just not doing a good job at nurturing creativity. However, his work indicates that creativity can be fostered. Check out ericwstein.com for more info.