Recognising and Measuring Leadership

A leader is best When people barely know that he exists Not so good when people obey and acclaim him Worst when they despise him. Fail to honour people, They fail to honour you. But of a good leader, who talks little When his work is done, his aim fulfilled They will say we did it ourselves Lao Tzu - 6th CBc

Being a boss is not the same as being a leader. Bosses inherit subordinates. Leaders earn followers. The positive news is that people want to be led. They look for someone who inspires them and who believes in who they are and what they do. Leadership is the critical factor in the success of any organisation. Between every stimulus and response is a space. In that space lies our freedom to choose. Leadership is a choice. A key question facing organisations today though is how do you measure and assess leadership potential and skills? How do you know if a person is a leader? More specifically, can this leader/manager deliver the goals of the organisation. If employees and customers are happy, those are signs that the companys leadership is communicating the vision and the values correctly and is rewarding them appropriately. Leadership capital is not recorded on the balance sheet. Neither is it calculated in any other financial performance measurement. The most critical assets of todays organisations are in the minds and imaginations of its people. The organisation of the future will be led by a team of senior executives knowledgeable about both individual processes and overall corporate goals. Now, in the 21st century, the challenge facing companies is how to create these strong executive teams and ensure that they operate to the maximum benefit of the organisation. According to John Kotter, organisations need to develop their capacity to exercise leadership. Successful organisations dont wait for leadership to come along. They actively seek out people with leadership potential and expose them to career experiences designed to develop potential. He believes that with careful selection, nurturing and encouragement, dozens of people can play important leadership roles in a business organisation. Before looking at how to measure leadership, what are the behavioural traits demanded of a leader? Although there are many variations on this theme depending on the school of thought or particular guru supported, there seems to be consensus on the following 8 principles:

1. Be Visible A leader is someone who stands out from the crowd. He is someone different from the rest. A leader is someone who stays in touch with the real issues by walking the job and talking to people. A leader is accessible and real, offering support direction to others when they are uncertain or fearful. 2. Encourage and Support According to the psychologist William James, the deepest human need is the need to be appreciated. Leaders say thank you to their people. Leaders listen. Leaders understand the ultimate power of relationships and they trust in trust. They make people feel they count by valuing their contribution and suggestions, thus growing their self esteem and personal motivation.

3. Create a Dream Leaders think about the future. They develop a long-term time perspective and as Stephen Covey (Author of Seven Habits of Highly Effective People) says, they begin with the end in mind. Leaders are clear about the end result they are striving towards and they work back from this goal setting in place the stepping stones for it's achievement. They are solution oriented and take risks to achieve the dream. They are unwaivering in their focus and determination and create an image of the future goal which inspires those around them. 4. Self Awareness According to Daniel Goleman, Expert in Emotional Intelligence, self - awareness is essential to being a successful leader. A leader needs to learn more about his strengths and vulnerabilities. In order to support and encourage others, a leader must be secure and well grounded. This then enables him to be a coach and mentor to those around him and to manage his own and others moods. 5. Integrity Leaders have integrity in their dealings with themselves and others at all times. Promises are kept and a leader does what he says he will do. Leaders respect those they deal with and is honest in how they communicate to all those around them. There are no hidden agendas and people know where they stand when dealing with the leader 6. Lead by Example Leaders are role models for their people. Their actions and behaviours inspire those around them and are always consistent with what they say. Leaders embody the story that they tell. They build a shared understanding of the world they live in, identify what needs to done and set in place the first steps themselves for others to see. 7. Develops People and Teams Leaders encourage others to learn and to work together as a team. They regularly meet with the team as a whole to review progress and agree the way forward. Leaders believe that the only thing achieved in life without effort is failure. Mistakes are seen as learning opportunities, so all effort is viewed in this way. 8. Communicate the message According to Colin Powell, great leaders are almost always great simplifiers, who can cut through argument, debate and doubt to offer a solution everybody can understand. Their decisions are crisp and clear, not tentative and ambiguous. They are also flexible in their approach to suit the individual and the situation. However, while defining leadership behaviour may incorporate these areas, measuring and developing leaders in todays organisations seems to get harder and harder. How can organisations measure an individuals strengths and potential to ensure his/her alignment with the strategic objectives? Increasingly, organisations are investing in the assessment of the current and potential management teams strengths and weaknesses in an effort to streamline the leadership and competitiveness of the organisation. How does the process work? Broadly the framework includes the following elements : Measuring Leadership / Management Auditing The first phase includes the establishment of the competencies which will be used to evaluate the leadership qualities of the management team. Personal structured interviews with each of the management team take place to assess the executives functional or technical expertise, track record, commercial acumen and future potential. This positions individuals relative to the market and the organisations strategy. Organisational psychologists then evaluate the underlying intellect, leadership and interpersonal skills against senior management benchmarks. This gives a comprehensive assessment of personal qualities and leadership potential.

Finally, individual evaluations are combined to provide a strategic overview of the management group as a whole. This shows where the critical mass of skills and capabilities lie across functions, businesses and countries. This leadership analysis can then be compared with that of the competition as well as the blueprint for the organisation; ultimately generating a route map for the way forward in terms of personal skills development as well as new skills required. One organisation which used this approach to measuring and improving its leadership talent was a global natural resources company with headquarters in Australia. It is involved in the discovery and development of metals which include ore, iron, coal and copper. The company has 35,000 employees working in more than 30 countries. It began to experience difficulties in the 1990s and in 1999 a new chief executive was recruited with the mission to turn the business around. He conducted a major review of the company which led him to believe changes in leadership were needed at the senior and middle management levels. Critical to the process was the introduction of a new mission and set of values which then needed to be lived by each of those in leadership roles throughout the organisation. The review lasted 6 months and broadly followed the format described earlier. It gave the CEO a clear snapshot of the strengths and weaknesses of his management team. It highlighted the need for training and development in some instances as well as the need for external recruiting and the phasing out of some leaders in the business. The company plans to continue to use this system of management auditing to assess improvements in the capability of its executive team, and to monitor the actions taken by those in leadership positions towards achieving the corporate strategy going forward. This approach to measuring leadership potential is being adopted by an increasing number of organisations who have a genuine commitment to excellence in terms of managing, developing, motivating and retaining their key people. By using an approach which aims to measure, to some degree at least, the strengths and capabilities of a team of people, specific and quantifiable results emerge. Leaders are in no doubt as to where their particular capabilities lie, how these compare to the behaviours and competencies needed for the particular business, and ultimately what he/she needs to do to grow in their areas of development. Organisations need to decide on the leadership style and behaviours which will equal success in their particular field. Leaders need to suit the complexity of the businesses they run as well as being able to adapt to constant flux and change. Bill Gates, for example, is able to assimilate huge amounts of complex and often contradictory data and change direction. Mr Gates was a relatively late convert to the internet, but his personal belief and mission transformed Microsoft to meet the challenge. The most appropriate leadership style will be dependent on the nature of the business as well as its mission and vision. Successful organisations are those who firstly identify where they are, then measure their current range of skills sets and finally identify the profile and traits of the most suitable leaders to achieve the dream. Leadership today then is about transformation, inspiration and having the will to succeed. Success stems from the selection, measurement and development of the right people to make the dream happen in the organisation.