Learn the skills to become a 21st century leader

May 22, 2006

A common complaint among executives throughout the world is the changing work ethic and lack of commitment by employees. With the lack of leadership evident today, it is amazing that any work ethic or commitment by employees exists. All too often, managers fail to lead, or they try to intimidate their employees, which stifles motivation to work.

For example, studies have shown that employees usually rebel against an authoritarian leadership style. If they are forced to endure it, then employees probably only perform at a maximum 20 percent capacity.

People want to be led, yet they want leaders with human values and respect for people’s unique talents and contributions. Employees want leaders who will create an environment that nurtures excellence, risk taking and creativity.

Managers frequently intimidate, manipulate and lie to the masses. How many times have we heard management proclaim, “Our greatest asset is our employees?” In 1995, a national survey found that 73 percent claim that employees were their company’s greatest asset. That same survey found that 98 percent of executives agreed that improving employee performance would significantly increase company productivity. Yet when asked to rank business priorities, those same executives relegated investing in people to fifth place on a six-item list.

Success depends on people, and to achieve success, people depend on leaders. What we need in all walks of life and all endeavors is leadership.

In his book “Leading People,” Robert H. Rosen identifies eight principles of successful leaders: vision, trust, participation, learning, diversity, creativity, integrity and community. When integrated together, they form wisdom in action.

Vision

Leaders need to develop the vision for the enterprise and need to articulate that vision to the entire organization. That creates a common purpose with everyone working toward a common goal. Communication needs to be face to face, not transmitted through videos, publications or large meetings. For front-line employees, their leaders are their supervisors — not the CEO or the executive team.

In 1993, a survey by Wyatt Co. investigated 531 U.S. organizations undergoing major change. Wyatt asked the CEOs, “If you could go back and change one thing, what would it be?” The most frequent answer was, “The way I communicated with my employees.”

Trust

Without trust, vision becomes an empty slogan. Asking employees to take risk, be entrepreneurial and give up the known for the unknown requires a strong foundation of trust. Mangers and employees view change differently. Senior mangers consistently misjudge the effect of that misunderstanding and do not understand the effort required to make change occur. Nordstrom, a U.S. department store, issues its workers just one instruction: “Use your good judgment in all situations.” For employees to trust their leaders, their leaders must walk the talk. To talk about change without the leader showing visible change in behavior is like shoveling sand against the tide.

Participation

The leader’s challenge is to unleash the intellectual capacity of the organization, and to get everyone involved in contributing to both the development and implementation of the organizational vision. The goal is to get everyone within a company to contribute to and shape the vision so that all employees feel a sense of ownership in the work. Each employee becomes responsible for the company’s success or failure.

Learning

Studies show that companies that train workers that are allowed to make decisions and have a stake in the business are more profitable than those that do not. Paying attention to what many analysts term the soft side of business (developing skills) in management leadership and interpersonal areas of communication is key to a successful change in management strategy. Become a superior learning organization and apply that knowledge to create customer value.

Diversity

Effective leaders have a deep appreciation for peoples’ differences. The definition goes beyond age, gender and ethnicity, and includes differences in lifestyle, religious beliefs, working habits and personalities. The best leaders are not threatened by individuality. They know that people are simply less willing to abandon their identities to the organization. People who retain their cultural heritage and things that are important to them become far more committed employees.

Different people require different forms of leadership. One leadership size-fits-all is not applicable. What’s most important in diversity is having a culture of respect. The leader understands that people are created equal, and people who feel equal and respected are likely to deliver superior performance.

Creativity

In our fast paced world, creativity is essential. If you cannot create or sell products or services, your future is bleak. The market is over for bureaucrats. Leaders who create a climate for creativity are encouraged and rewarded. The leader focuses on the strengths of his people, and helps them manage their weaknesses.

The greatest contribution a leader can make to an employee is to help him or her to discover his or her talents, and explain how those talents relate to the job at hand. Create the environment for people to experiment, take risks and fulfill their creative potential. The secret is to discover what people do well, and then ask them to do more.

Integrity

Today’s leader is a person of authenticity, honesty and integrity who stands for something. Companies with ethical reputations attract the best employees. Those companies also attract and retain loyal customers.

Consumers like doing business with honest and honorable people. Most leaders, I believe, want to be ethical. But in business, there is a constant challenge involving conflicts and compromises. Doing the right thing is not always easy. The leader must show his or her employees the way. Leaders never sacrifice long term benefit for some immediate short-term gain by compromising ethics.

Community

A leader does not just measure his or her success in terms of the enterprise’s profitability or a person’s individual earnings. Instead, success is measured by what leaders do for others. Success also is measured by the contribution to society.

Leaders, by caring beyond themselves, find a deeper sense of self-fulfillment and gratification by contributing to their community and the world at large. The leader is aware that we are dependent on our environment, and the leader is committed to preserving his or her surroundings. Being a leader means having an awareness of the environment, and educating employees and customers about environmental responsibility. Leaders and their companies receive incalculable returns by engaging with their communities.

Roy Chitwood is an author and consultant on sales and customer service. He is the president of Max Sacks International based in Seattle. For more information, telephone: (800) 488-4629. Web site: www. maxsacks.com.