“Being a leader has become a mantra.
It is a presumed path to money and power; a medium for achievement, both
individual and institutional; and a mechanism for creating change sometimes—although
hardly always—for the common good.”
~ Barbara Kellerman, The End of
Leadership
Leaders everywhere are in disrepute. Hardly a day goes by without news of
corporate ethical violations, financial fudging and CEO failures. Yet,
compensation packages and bonuses continue unabated, even when disgraced leaders
are sent packing.
Corporate leaders are being pushed
out in record numbers. In 2002, 100 CEOs from the world’s 2,500 largest companies were replaced—almost
four times the number in 1995.
What is happening to our efforts to
develop good leaders?
In spite of the billions spent annually to train high-potential candidates, why
do those promoted to positions of power, with critical responsibilities,
continue to fail?
Harvard Business School Professor
Barbara Kellerman criticizes the leadership-development industry in her new book,
The End of Leadership
(HarperBusiness, April 2012). She asserts:
- Leaders
at every level, across all industries, are failing the people who depend on
them.
- Leadership
programs have done an inadequate job of producing effective and ethical leaders.
- We
don’t really know how to grow good leaders, and we know even less about how to
stop or slow the bad ones.
- Today’s
business environment is rapidly changing in ways leaders are unable or
unwilling to grasp.
- Followers
are disappointed and disillusioned, even though they are more empowered,
emboldened and entitled than ever before.
Leadership’s Devolution
Until only recently, we presumed that leaders should dominate and
followers must do as they’re told. But after several revolutions, labor movements, human-rights
legislation and the spread of democracy, the world has radically changed.
Power, authority and influence are in scarce supply for even the most
charismatic CEOs, and continuing to devolve. Workers in the middle and at the bottom of the
hierarchy have an expanded sense of entitlement, but they’re demanding more and
giving less. Technology has helped level the playing field.
Workers are often indifferent,
disengaged or outright resistant. There are only two reasons they’ll follow a leader:
- They
have to.
- They
want to.
The end of the 20th century marked the
demise of command-and-control leadership, although some bosses stubbornly
insist on trying to make it work. In its place, leaders are advised to become more
participatory—to lead by cooperation and collaboration.
Leadership success
is judged on three criteria:
- Is
the leader ethical?
- Is
he/she effective?
- Does
the business make money and provide jobs?
In the
workplace, however, followers judge their leaders and ask:
- Does
my boss have my best interests in mind (and does he/she even know what they
are)?
- Is
my boss looking out for the company’s best interests?
- Why
should I believe, follow and trust this person?
Like most other animals, humans tend
to look to strong males to provide what’s most important: safety and security. We’re just like baboons, deferring
to males whose strength and capacity to lead have been tested.
There is no leadership without
followership. Good
leadership requires good followers, who may be passive or active (depending on
context). But followers have generally been slow to embrace empowerment and participate
in the leader/follower tango.
The Leadership Trust Gap
In a perfect organizational world, we
would be blessed with transformational servant leaders who are intrinsically
motivated to provide benefits to their followers. But in the real world, bosses are
rarely that accommodating. We nevertheless expect our leaders to make things
better for both the business and our careers.
Corporate leadership is simultaneously
envied and disdained.
We are in awe of strong personalities who take charge and earn big compensation
packages, bonuses and perks. At the same time, we cannot deny that the gap between
the rich and poor has been steadily increasing for decades, and the middle
class has declined.
Furthermore, the financial crisis—the
worst since the Great Depression—has been slow to recover. Many blame executives at our top financial
institutions for eroding trust in leadership. We are left with an impression of
widespread corporate corruption that continues to be amply rewarded, even when CEOs
are dismissed for poor performance.
A 2011 Gallup poll confirmed that
corporate America’s reputation is in tatters, with 62% affirming they want
major corporations to have less influence in the future—a figure that increased
10% in a decade. A
whopping 67% of those polled said they resent big business’ influence.
A survey of Fox News’ right-of-center
viewers found that most overwhelmingly believe (a 6:1 margin) that corporate
leaders have done more to hurt than help the economy.
Income: The Great Divide
Most of us expect our leaders to be
paid more than we receive. We recognize that they work long and hard, are intelligent and
experienced, and shoulder responsibilities and risks most of us wouldn’t want.
But has the economic and lifestyle gap
grown absurdly large?
Between 2002 and 2007, the bottom 99%
of American incomes grew only 1.3% a year, compared to a 10% bump in
compensation for the top 1%.
Let’s look
at a few examples of CEOs’ annual compensation:
- In
2008, Oracle’s Larry Ellison received nearly $193 million
- Countrywide
Financial’s Anthony Mozilo: $102.84 million
- Aflac’s
Daniel Amos: $75 million
- Safeway’s
Steven Burd: $67 million
The median pay for top executives at
200 big companies in 2010 was $10.8 million, a 23% jump from 2009.
These
examples contribute to our dislike and distrust of those at the helm. These
leaders seem to grow excessively rich as the average American struggles to make
ends meet.
Flawed Followers
Perhaps today’s leaders can get away with
various and sundry peccadilloes because their followers fail to demand
accountability.
“Leading in America has never been
easy,” writes Barbara Kellerman in The
End of Leadership. “But now it is more difficult than ever—not only because we have too
many bad leaders, but because we have too many bad followers.”
Many of us are too timid, disengaged
or alienated to speak up, making it easy for corporate leaders to do what they
want—and what’s best for their bank accounts.
The leadership-development industry
has become huge, with $50 billion a year spent on corporate training. Shouldn’t the curriculum include
elements of followership? Everyone, including the CEO, has to answer to someone,
be it a board, stockholders or a senior team.
Question These Assumptions
Kellerman
asks those in charge of leadership-development programs to question the
assumptions the industry promotes:
- Leadership
can be learned by most—quickly and easily; over months, weeks or weekends.
- Leaders
matter more than anyone else.
- Followers
are secondary.
- Context
is tertiary.
She also suggests
several important mindset shifts based on these assumptions:
- We cannot stop or slow bad leadership
by changing human nature. No amount of preaching or sermonizing—no exhortations to virtuous
conduct, uplifting thoughts or wholesome habits—will obviate the fact that our
nature is constant (even when our behaviors change).
- We cannot stop or slow bad leadership
without stopping and slowing bad followership. Leaders and followers are always interdependent.
- We cannot stop or slow bad leadership
by sticking our heads in the sand. Amnesia, wishful thinking, the lies we tell as individuals
and organizations, and all of the other mind games we play to deny or distort
reality get us nowhere. Avoidance inures us to the costs and casualties of bad
leadership, allowing them to fester.
What Leaders Can Do
Leaders can become
more effective and ethical by following these steps:
- Limit
tenure in positions of power; share power.
- Don’t
believe your own hype; get and stay real.
- Compensate
for your weaknesses by hiring and delegating well.
- Stay
balanced and healthy.
- Remember
the mission.
- Develop
a personal support system (mentor, advisor, coach, best friend).
- Establish
a culture of openness in which diversity and dissent are encouraged.
- Be
creative, reflective and flexible.
- Avoid
groupthink; ask the right kinds of questions.
- Question
assumptions; get reliable and complete information.
- Establish
checks and balances.
What Followers Can Do
If bad leaders are to be stopped or
slowed, followers must play a bigger part.
But many
followers consider the price of intervention to be too high. There are real
benefits for going along, along with real costs and risks for not going along. We often choose to mind
our own business. Nevertheless, incompetent and unethical leaders cannot function
without followers.
Followers
can strengthen their ability to resist bad leaders by observing these
guidelines:
- Empower
yourself.
- Be
loyal to the whole, not to any one person.
- Be
skeptical; leaders are not gods.
- Find
allies; develop your own sources of information.
- Be
a watchdog (especially if the board seems too compliant).
- Take
collective action (even on a modest scale, such as assembling a small group to
talk to the boss).
- Hold
leaders accountable; use checks and balances already in place.
Luckily, more followers are stepping
up to the plate, demonstrating a willingness to share responsibilities, power,
authority and influence. They know that once bad leaders are entrenched, they seldom change or
quit of their own volition. It’s up to us to insist on change—or an early exit.
Are you working in
a company where executive coaches provide leadership development to end bad
leadership? Does your
organization provide executive coaching for leaders who need to inspire
followers? Enlightened leaders tap into their emotional intelligence and social
intelligence skills to create a more fulfilling future.
One of the most
powerful questions you can is “Does our company have bad leaders?” Emotionally
intelligent and socially intelligent organizations provide executive coaching
as part of their peak performance leadership development program.
Working with a
seasoned executive coach and leadership consultant trained in emotional
intelligence and incorporating assessments such as the Bar-On EQ-I, CPI 260 and Denison Culture Survey can help you
become a leader worth following. You can become a leader who models emotional
intelligence and social intelligence, and who inspires people to become fully
engaged with the vision, mission and strategy of your company.
About Dr. Maynard
Brusman
Dr. Maynard Brusman
is a consulting psychologist, executive coach and trusted advisor to senior
leadership teams. He is the president of Working Resources, a leadership consulting and
executive coaching firm. We specialize in helping San Francisco Bay Area
companies and law firms assess, select, coach, and retain emotionally
intelligent leaders. Maynard is a highly
sought-after speaker and workshop leader. He facilitates leadership retreats in
Northern California and Costa Rica. The Society for Advancement of Consulting
(SAC) awarded Dr. Maynard Brusman "Board Approved" designations in
the specialties of Executive Coaching and Leadership Development.
For more
information, please go to http://www.workingresources.com, write to [email protected], or call
415-546-1252.
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