Are you playing follow the leader?

Exactly what is leadership and how would you describe the leadership function of your firm?

Leadership should be thought of as being distinct and separate to management. While firm management is all about hiring, firing, planning, problem solving, measuring, monitoring, reporting and being accountable, leadership is all about people i.e. inspiring and supporting the people of an organisation to achieve. Those achievements might be related to innovation, growth, efficiency, culture, profitability, community awareness or any number of strategic goals but ultimately it is people who achieve those things.

Effective leaders help others to achieve by creating and sharing a vision for the future and inspiring others to work together to bring life to that vision.

Think of some of the great leaders of our time – Mahatma Ghandhi, Nelson Mandela, Martin Luther King and Abraham Lincoln. All of these leaders shared messages of change and reinvigoration that people listened to, supported and followed. The leaders’ messages were based on reflection and observation of what was happening in the world around them. They were great thought provokers and communicators who were respected and believed. They encouraged others to take action.

The elements of good leadership therefore seem to include:

• Thinking and thought provocation;
• Honesty and respect;
• Communication and listening;
• Inspiration, believability and a call to action.

Do you have ‘real’ leaders in your firm? Many firms have great managers but not many firms have excellent leaders who create a vision which inspires others to act to implement the vision. Think of your competitors around you who are ‘disrupting’ the industry successfully – chances are they are doing that because they have effective leadership. Think of your competitors who continually grow in size and profitability year upon year – chances are they doing that because they have effective leadership.  Think of your competitors who consistently attract top talent – chances are they are doing that because they have effective leadership.

Leadership is not about being the most liked or the person who keeps the firm quiet and calm. Leadership is:

• Providing clear direction;
• Motivating people;
• Healing rifts, building buy-in or consensus;
• Taking action and driving change;
• Dealing with crises head on; and
• Ensuring the sustainability and agility of the firm.

Leadership may also take on different styles at different stages of a firm’s life cycle and for different purposes. Daniel Goleman suggests that there are six leadership styles:

1. Commanding – demanding immediate compliance;
2. Visionary – mobilising people toward a vision;
3. Affiliative – creating harmony and emotional bonds;
4. Democratic – achieving consensus through participation;
5. Pacesetting – setting high performance expectations; and
6. Coaching – developing people for the future.

Of course, leadership is not only needed at the senior management level in firms but should be encouraged at all levels. Leaders are not just born, they are developed. Do you have a structured and effective leadership program operating in your firm?