Damian McKinney of McKinney Rogers describes to CEO the characteristics required of the strong, modern business leader.
Ask the question 'what makes a true leader?' and you’ll get a myriad of equally valid opinions, depending on the leader that springs to mind.
A great recent example of a strong business leader is Stuart Rose, chief executive of Marks & Spencer. Rose turned the company around, creating a sixth successive quarter of growth.
It is a combination of factors that make Rose a great leader, not least from his introduction of dynamic initiatives such as setting the industry benchmark for carbon neutrality through to a demonstration of responsibility for company employees, shown by the half a million pounds given to the 3,000 M&S workers affected by the 2006 Farepak Hamper collapse which cost them their Christmas savings.
Another example is Richard Branson. Branson has long been recognised as a great leader, primarily because he is always seen to be actively engaging with his brands. Although NTL took over Virgin Mobile, the whole operation was rebranded as Virgin Media due to the strength of Branson's association.
INSPIRED LEADERSHIP
It is generally accepted that successful leaders have certain key attributes such as intelligence, personality, enthusiasm, responsibility and dependability. However, it could be considered that the ability to inspire – although rare – is perhaps the most difficult attribute to nurture.
However, this is not new. History recalls many great leaders who exuded vision and inspiration, but what has changed is how true leadership is manifested and communicated. In other words, there are trends emerging that indicate that the changing nature of business is creating a new type of leader.
The current leaders who will shape future businesses are expected to be inspirational and visionary, but also humble and self-effacing – less heroic and more attuned to their surroundings. This means that they need to actively recognise the value of their staff, especially when employees have a wider choice of businesses to work for and are, like the general consumer, more demanding and sophisticated in their expectations. Companies recognise that staff turnover represents a significant cost to business and how the company is led has an enormous impact on staff engagement and retention.
The overarching prerequisite for the modern leader is to inspire trust, and that comes from demonstrating integrity and through the empowerment of staff. Scandals such as Enron mean that businesses have to be visibly accountable for their actions and this behaviour must be communicated from the top of the organisation with clear and plausible action.
Equally, awareness of ethical business behaviour has become commonplace, from engagement in globalisation to a local ‘on your doorstep’ perspective. This has an enormous impact on business and the behaviour of leaders – they are now expected to practice what they preach, both in their public and private lives. Previously, leaders relied on vision and passion to inspire; today, employees need to trust their leaders as individuals.
EMPOWERMENT
Strong leadership also comes from creating an environment where people feel able to fulfil their own potential.
Typically, this sits under the heading of ‘empowerment’, but this idea can often be mistreated by companies who often empower without actually sharing control. Inspired trust in leadership can only come from true empowerment, which doesn't communicate the ‘what’ and the ‘why’, but gives staff total responsibility for defining and delivering the ‘how’.
Accountability for the ‘how’ and its impact on the business as a whole is crucial. Employees not only share responsibility but can also shape their role within the company.
Many leaders are still reluctant to exercise this level of empowerment for fear of losing control, but empowerment in its correct form demonstrates true leadership, as opposed to the outdated dictator-style approach.
Leaders also need to possess the courage to maintain their convictions and not compromise their values. Leadership is not something you can learn from a manual; it is imperative to hold fast to your beliefs and values in order to inspire.
While any discussion of leadership will only skim the surface, it is clear that true leadership is evolving to meet the changing nature of business. Real power comes from having a clear understanding of what is happening across an organisation - and how to meet those challenges in the future.
