The traditional view of the leader—unemotional, supremely rational, and essentially mechanistic—is based on the vertically integrated, hierarchical Industrial Age organization. In a less structured, more dynamic global organization, however, the leader can no longer act as supreme puppeteer, simply pulling the strings to make things happen. That is, good leadership, and consequently organization sustainability, will be less about what the leader does and more about who the leader is—and in particular, about two key traits: personal mastery and flexibility (which is discussed in Chapter 13, "Leading Change").
Leaders have always worked to understand others, but in the future, they must devote the same kind of effort to understanding themselves—that is, to personal mastery. Personal mastery essentially means having a heightened self-awareness—a deep understanding of one's own behavior, motivators, and competencies—and having "emotional intelligence" that allows one to monitor and manage—rather than control or suppress—one's emotional state.
Leaders need to balance their emotions. They should not overreact to situations, but they should not be totally cold, either. Positive emotions can have a positive impact to drive others.[1]
As well as demonstrating effective emotional responses in a variety of situations, he or she will demonstrate self-confidence and integrity as a leader, thus inspiring and influencing others to follow his or her vision. For instance, during a media interview, Bob Nardelli, CEO of Home Depot, was confronted about a very negative article written and published by a dissatisfied female customer.[2] In the article, the woman described her bad experience getting help at Home Depot and told how the competition had been much more helpful. Home Depot, which had found its niche in providing great customer service and assistance, had failed this customer. Bob Nardelli, rather than taking offense to what was written in the article, told the interviewer that he apologized to the public for the service breakdown and that Home Depot was doing and would continue to do everything possible to rectify the situation. Most importantly, Bob explained that companies, especially large companies like Home Depot, are going to have hiccups. He explained that Home Depot has used the situation as a learning experience to create new opportunities and to grow. Through his even-tempered, positive approach, Bob inspired and influenced others to take responsibility and to learn from mistakes.
Global leaders must take it upon themselves to be deeply aware of their personal values and match them to the stakeholders of their organizations. In other words, global leaders' personal values must be reflected in the stakeholders of the organization and their communities. The senior executive team of a global food corporation, focused on company strategy and leadership alignment, acknowledged a connection between the alignment of individual values and principles and company performance. With the help of a consulting firm, the team developed a model whereby the values and principles of individuals were factored in as part of their recruitment practice. The team found that individuals who prospered through training and education would find great opportunities to develop careers at the company; however, individuals who went through training and were unable to grasp the company's philosophy, although given time to work at it, most often weren't successful. The team quickly realized that if there was a mismatch between the values and principles of an individual and the organization, it didn't matter how much training or experience the individual was given, the individual would not be successful at the company.
The leader of the future will willingly admit to personal shortcomings and strive to improve by making a significant investment in ongoing personal development. The CEO of a large mid-Atlantic financial organization realized that he had a lack of understanding for different perspectives, cultures, and lifestyles. As a white male and an economist, he had always been surrounded with people like himself. He decided to make an effort to improve this shortcoming. First, he communicated his challenge to others within the company. Next, he diversified his leadership team to include, as the head of HR, an innovative African American woman. She started a mentoring program that partnered people with very different perspectives together. In fact, she (a gay, female artist-type as she describes herself) paired herself with the CEO. Through this relationship, he discovered that his personal shortcomings around understanding cultural diversity and differing viewpoints was having a real impact on the bottom line of the company, especially given that 70 percent of his core corporate administration and support were African American women. From his partner, he learned that people evaluate information and emotions, and make decisions in a manner different from his. He learned to consider others' values, principles, and decision-making criteria. The mentoring partnership helped him integrate and understand the different value sets and principles of those with whom he worked, so that in the long run he turned his "personal shortcoming" into an admired leadership attribute.
He or she will endeavor to deeply understand his or her own strengths and weaknesses, and will not only have a good consulting team to help bridge the information gap,[3] but will involve others who have strengths that the leader does not possess. These leaders will appreciate others being able to do what they are not able to do.[4] There are many reasons that a leader may not be able to complete a specific task or accomplish a certain goal. For instance, perhaps he or she does not have the expertise to solve a problem or does not have the time to focus on it. However, unlike micromanagers, successful leaders will recognize that the outcome will be much greater if they put in place a team of people who have the skills and capabilities needed to handle these challenges more effectively and with deeper focus.
Successful CEOs will know how to divest themselves of the day-to-day solutions and problem-solving activities of the company in order to maximize strategic and relationship building efforts, which contribute to the overall forward momentum of the company. They will recognize the difference between what they need to do versus what they should pass along to their teams. A CEO or chairman should be involved in the minutia of a solution only if everybody else has been unsuccessful or if it's a regulatory or personal relationship that requires a CEO-to-CEO conversation. However, this doesn't always work. For instance, the CEO of a large, global insurance company has become a bottleneck at her company, because nearly every problem and decision goes through her. A people pleaser, the CEO retains power through her relationships, which has become a serious hindrance to the success of the company. The CEO involves herself in nearly every problem that comes through the operations area, because of her personal relationships with the individuals and companies involved. This has slowed the progress of the company down to nearly a standstill.
Leaders' commitment to personal mastery is integral to the financial success and sustainability of an organization. Leaders who find a balance between self mastery, relationship building and the bottom line of the company will be more successful and will avoid "bottlenecking" due to people-pleasing and "cooking the books" to improve stock prices, as in the cases of Enron and Worldcom.
Traditionally, leadership development programs have sought to instill particular capabilities in their subjects. This is considered "outside-in" leadership, because it asks the leader to look at his or her own personal profile and motivations first and then adapt accordingly. A new school of thought is emerging, however, which claims that leaders must first understand themselves: their motivations, preferences, and risk tolerances. Leadership development must always begin with the careful recognition of core individual values. Through this "inside-out" approach, leaders will be able to respond to or modify their environment to align with their unique, personal leadership capabilities.
There is not a singular model that describes an effective leader for all companies in all industries at all times. Leaders must understand what is required and evaluate their own capabilities and respond accordingly, either by focusing on their strengths, developing new skills, or teaming with others who have the skills that they lack. The leaders of Electronik Inc., COO Johanna Hambrose and CEO Harold Hambrose, separate responsibilities, because they realize that each person has strengths that the other does not. Johanna is more adept at developing marketing strategies, whereas Harold is more capable at design. As such, they lead different teams. Johanna leads the organization's sales force and business development group, and Harold leads the design team.
According to Manfred Kets de Vries, executives have a notoriously underdeveloped capacity for self-reflection, in part because the myopic, action-oriented environment in which many executives operate does not encourage this kind of self-examination.[7] Despite this inherent difficulty, the changing work environment is making self-awareness all the more important.
In order to influence others, it is vital that the leader first understand his or her strengths and limitations. As in many facets of leadership, understanding oneself is the first step toward developing an effective style for influencing others.
As part of this personal mastery and self-awareness, effective leaders will be proficient at what John O'Neil calls "ego management"—at listening to other viewpoints rather than simply defending their own—and at not having to "win" whenever there is a difference of opinion. They will also cultivate the quality of empathy, which is the ability to read emotions in others and to see oneself through the eyes of others.
Empathy will be important in communicating across cultures; in understanding and motivating knowledge workers who tend to respond to mutual respect and open communication; and in being able to tap into the ideas and abilities of other people and foster collaboration.
This can be a difficult challenge for global leaders, as people around the world express and communicate feelings differently. For instance, a global financial institution hired a Chinese American male, who had been raised in China by his Chinese mother, as SVP of International Banking. According to his coworkers in the United States, he did not show his emotions. In fact, they complained that because he had no affect, they could not read his responses, and so he was very difficult to work with. As a result of these difficulties in communicating, a consulting firm was brought in to help the international team work together. During an interview, the SVP revealed the difference he had found between how people from the two cultures express emotions. When communicating with people from the United States, he looked at their eyes and facial expression to garner their responses. However, in China, it is inappropriate to show such facial expressions—for instance, a wide smile—after a certain age, so he would read the mouth and chin. He would notice if the mouth were inverted or pursed, or the chin puckered. In doing so, he would know if a person was happy, sad, upset, or tense. This was second nature to him, but before it was explained, it was very confusing to his coworkers.
Open communication regarding body language, empathy, motivational style, and so on is crucial across cultures if we are to understand each other and work together. Certain gestures, such as maintaining eye contact and not showing facial expressions, appreciated in one culture, may be a sign of disrespect in another. As such, to foster collaboration and engender cultural empathy, global leaders must put cultural biases aside and directly communicate with each other in order to learn how to relate to different people in different ways.
It is important to talk openly when going through a conflict. We should talk about emotion, because that will build a solid team. I believe it's the only way you really get to the core of having a solid team that is working together with great trust in one another. There must be some vulnerability and we must get to know the whole person, not just how bright [the person is] or how well [he or she] thinks through things. We need to know what [he or she] feels and how it impacts us. Also, we need to know ourselves well and allow people to be open with us.[8]
This focus on the emotional side is a far cry from the traditional leadership ideal and so strikes some executives as "not real." However, there are solid business reasons for the leader to develop self-awareness. With strong self-awareness, the leader
I am a lot less hot-headed, now, than I used to be. You learn to see it coming. You learn to not do damage.[9]
Ultimately, self-awareness will be central to effective leadership because it can have a powerful impact on the perceptions of those in the organization and their willingness to follow the leader—and help build the sense of trust needed to hold distributed, networked organizations together. Effective leaders must understand the impact they have on others, and then they can more effectively manage their emotional responses and reactions.
The global leaders of the future must continually practice personal mastery; that is, they need a high degree of self-awareness to monitor their own behavior and leverage their personal strengths, as well as to fill gaps in competencies. In building a holistic leadership team, a leader, such as CEO of Home Depot Bob Nardelli, whose background and expertise is engineering, should not hire just like-minded people to be on his leadership team. In some industries—especially those that have engineering at their core, such as utilities and telecommunications—leaders have typically surrounded themselves with people who have the same competencies that they do. For this reason, the leadership teams and thus the company become mired in too much analysis and detail. They do not focus on the market or research design, and as a result there are shortcomings in the distribution and/or execution of the product or service.
At a utilities company, the HR team investigated why it seemed that everyone in the company was analytical and driven by data. After inventorying the cultural profile of the entire company, including the HR team itself, the team found a highly disproportionate number of people with the same cultural profile. Nearly everyone tested out as an ISTJ (introverted, sensing, thinking, judger). This meant that the company had a huge gap in its competencies and would likely not do well at growth or extending its opportunity base.
Leaders must be trustworthy and driven by core personal and often spiritual values, possessing in high degree a good balance of emotional, intellectual, and business intelligence. During an interview, Michael Eskew, chairman and CEO of UPS, was asked about his work ethic as compared to a person who works at a 24/7 pace. He revealed that while he has a strong work ethic, work-life balance is a crucial, core, personal value to him. Thus, he finds ways to balance his work time with other areas of focus, such as himself and his family.[10]
The ability of leaders to create a shared vision and inspire others to achieve that vision will be greatly enhanced if their personal values and goals are congruent with what they are being asked to do to lead the business. When these two aspects are working together, the leader will be energetic, passionate, inspirational, and enthusiastic. The following diagram illustrates the importance of congruency between the leader's goals, values, and motivations and the vision and environment of the organization. (See Figure 10.1.)
Figure 10.1. Personal and organizational congruency exercise.
The circle at the top of the diamond represents the business context within which the leader operates. It is important for the leader to understand what the business context is or is becoming so that the environment within which he or she is required to lead is clear from a business perspective.
What is the business context within which you are currently working?
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What is it becoming?
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What is the environment within which you are required to lead?
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The circle at the bottom left of the diamond represents the leader's personal goals and life journey—what he or she wants from life, how he or she attains balance, how he or she defines success, and what he or she wants to accomplish.
What are your personal goals?
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What is your life journey?
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What do you want from life?
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How do you define success?
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What do you want to accomplish?
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The last circle represents the motivation of the individual: his or her passion, motivators, desires, triggers, what causes him or her to behave in certain ways in order to have an impact on whatever it is he or she want to change.
Ask yourself these questions:
What are you passionate about?
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What makes you want to impact changes?
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How do you accomplish change?
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Where the three circles are congruent, the situation will exist that psychologists call "flow"; in other words, the organization's goals, the individual's personal goals, and the individual's motivation set are all in synch. In such a situation, high performance, high productivity, and personal satisfaction are all likely to result.
When the three circles are largely or completely separate, it is equally likely that the individual will underperform as a leader in the given business context and will probably be unhappy at the same time. In this instance, the individual would be well advised to seek an alternative business context within which to lead.
The other relevant point to note about this construct is that in moving from one business context to another, any individual needs to reassess the "fit" with personal goals and motivation. Leading successfully in context A does not necessarily guarantee similar success in context B, which is why, in our view, it is not possible to have an "always true" list of what defines the perfect leader in any context.
Global leaders who continually strive to achieve personal mastery are essential to business growth and survival. Many leadership traits can be taught, coached, developed, and internalized, and corporations are constantly searching for new ways to develop them, whether through challenging job assignments, classroom learning, or personal coaching and mentoring. However, the most valuable leadership quality is self-awareness, so that the strengths, weaknesses, and preferences of the organization and its leaders can be understood and counterbalanced. Combining that knowledge with the business strategy creates the best environment for delivering business results.
Developing leaders in the organization requires identifying the individuals with competencies that make them influential and who are capable of navigating through a network of relationships. Thus, self-assessment is needed at both the personal and corporate levels. Executives need to determine their strengths and weaknesses, likes and dislikes, risk tolerances, and developmental needs. They must do the same for the human capital of the whole organization. Comparing the results with the attributes needed to realize the company vision will reveal the gaps between where the leadership is and where it needs to be.
Shifting values to suit the business of the future can be accomplished if future leaders are aware of the current mismatch and their own strengths and weaknesses. In practice, few current and future leaders are properly prepared in terms of balance, alertness, self-knowledge, resilience, respect for others, and collaboration, not domination. Shifting values requires work that must begin with a consistently applied set of initiatives with wholehearted participation by the leaders. There are no easy methods or shortcuts.
Value changes are embedded in deep personal change. Many leaders need to increase their emotional maturity: their ability to make creative connections and to empathize deeply with others. They also need to manage ego and pride, and to have an insatiable appetite for new learning.
Many current and future leaders are unprepared for these changing values. Often, little attention is paid to mismatches among cultures, generations, and professions. Yet, awareness of cultural differences, etiquette, relationship management, self-awareness, and awareness of others are skills that a global leader must have in order to manage networked alliances.[11]
Present leaders must either change, share, or even relinquish their leadership role. For those near retirement, this may not be an issue. For middle-aged leaders who lack the new skills, this may be difficult. They will have to understand what they need to learn and be shown how they can practice it, and the organization's performance measurement and reward system will need to be changed to promote the desired personal mastery competencies.
1. Pharmaceuticals, United Kingdom, 30.
2. PBS CEO Exchange Series. Hosted by Jeff Greenfield, October 2002.
3. Research and development, United States, 47.
4. Technology, United States, 34,
5. J. Heskett & J. Kotter. Corporate Culture and Performance. Free Press: ISBN 0029184673., April 1992.
6. E. S. Harter & M. Sashkin. "The Relationship Between Leadership and Organizational Sustainability." This report is based on the doctoral dissertation research of Eric Harter, conducted at Case Western Reserve University.
7. Kets De Vries. M. F. R. Leaders, Fools, and Impostors: Essays on the Psychology of Management. Jossey-Bass: San Francisco, 1993.
8. Products and services, United States, 42.
9. Pharmaceutical, United States, 41.
10. PBS CEO Exchange Series. Hosted by Jeff Greenfield, October 2002.
11. Technology, United States, 32.
12. Information and quotes from interview with Constantine Papadakis conducted by Cathy Greenberg. February 2002.
13. Taken from Drexel University: A University with a Difference: The Unique Vision of Anthony J. Drexel, 2001. Newcomem Publication Number 1565.