Leadership: what a load of rubbish!

Published: 2011-09-25   There are 7 comments ... please add yours below

According to a recent Harvard Business Review article, “In an era when discontinuity is the only constant, the ability to lead wisely has nearly vanished.” What nonsense. This sort of populist generalisation about leaders makes me mad. I’ve been around for decades and there’s little new in what’s happening today. And, if I’d lived for centuries, the same would be true. Cycles are part of evolution. So are good and bad decisions. And, the main problem today is not in business but politics and government. The failure to legislate and regulate well – and promptly. If you want to follow my rant further, please continue below.

In the businesses I know and in those I read about, I observe lots of sensible and tough strategic decisions being made by honest and sensible leaders. There’s no guarantee they’ll be right but that’s the real world. And, if we look at today’s problems in global finance (whether the mortgage-driven fall-out in America or government debt in Europe), the responsibility lies not so much with bankers as with politicians and their regulators. They failed to act on what was happening quite openly in the derivatives markets and now the sovereign debt markets. Japan’s “lost decade” of the 1990s followed a similar script.

Yes, bankers go wild – even feral at times. But, banks are only one segment of business. And, as with all businesses, competition drives them to innovate. They are like the makers of fast cars: rewarded for vehicles that are dangerously fast (and aesthetically enticing). It’s up to politicians and police to make sure what’s offered is safe and driven within the rules. The bureaucrats can’t go to sleep (or become captives of those they regulate) particularly as the world embraces ever newer and faster offerings.

The vast majority of business leaders I’ve known (and worked with, including bankers) have been honest, decent people: often money-motivated but also caring about their customers, employees and communities. We all cut corners (I certainly do at times) but I’ve only encountered two or three, who knowingly did something significant that was illegal or grossly antisocial. Interestingly, their failure seemed more the result of hubris (or self-deception) once successful than dishonesty while scrabbling to the top.

Now let me turn to the five actions Professors Nonaka and Takeuchi offer to wise leaders in their HBR article. It’s hard to disagree that a leader should:

• Judge goodness … and practice moral discernment.
• Grasp the essence … sense what lies behind … fathom the meaning of people, things and events.
• Create shared contexts … encourage executives and employees to learn from one another.
• Communicate the essence … use stories, metaphors and other figurative language.
• Exercise political power … get people to synthesise their knowledge and efforts.

Worth noting but all a bit old-hat and sanctimonious (in the article), which I believe wise leaders should avoid. I prefer fresh thinking with its chance of insight … if also the risk of error.

Dr. Timothy Pascoe AM
PhD (Cambridge), MBA (Harvard), BE & BEc (Adelaide)
Creator, V|E|C|T|O|R Leadership^®