So What Leaders Inspire You?

Few recalling the dreadful bushfires in New South Wales in 2019 could fail to be inspired by the authentic and respectful leadership of the then Commissioner of the NSW Rural Fire Service, Shane Fitzsimmons. Unlike many at the time he was clear, caring, authoritative and selfless in his approach. We say authentic – which means being real and credible, and that sort of leadership is an inspiration to me and many others, as well as being a great foundation for what is required when you’re in a crisis.

But when the COVID pandemic attacked societies it was difficult not to see how leadership and culture impacted on how countries responded. The USA and New Zealand provided notably contrasting examples and great case studies in what authentic leadership is and is not.

Leadership is about the exercise of power. There is a great deal of discretion in how that power is deployed. The purpose of a leader’s power is to provide direction and motivation to the application of the resources of the organisation in best achieving the strategic outcomes that benefit the stakeholders. 

Those leaders who are more engaged with the idea of future strategies for stakeholders, customers and staff will be those ready to adapt for the crises, the disruption and the opportunities technology and renewables bring.

In politics we can look at Sir Winston Churchill in WW2 and Jacinda Ardern during COVID-19 as role models. They achieved their goals with the support and energy of all their people, and their countries benefitted accordingly.

One of the most obvious differences to Shane Fitzsimmons is with those leaders who define success solely in terms of immediate objectives, productivity, margins and personal achievement. This isn’t wrong in itself but it can sacrifice longer term performance and hide underlying challenges, saving them up for the future. These are the leaders who can be caught out in a crisis with no system, no ready team, only demonstrations of personal heroism available. And we all know that most heroes are, unfortunately, dead.

The worst kinds of leaders to deal with are those who are primarily focused on themselves. They are often charismatic, demonstrate great certainty and consist of two primary types:

• Those who are highly ambitious and are prepared to sacrifice all for their beliefs, their advancement and personal achievement. These leaders are very often promoted for their energy and promises and will achieve much but leave many challenges in their wake as they rise and fall. Examples of these in politics would be Margaret Thatcher and Kevin Rudd.
• And then there is Donald Trump and his ilk. Most people have a strong desire to believe in positive futures for themselves especially when life seems very difficult. You can look back in history, or across the globe even now and see leaders who are in it for themselves but very adept at persuading the disillusioned to follow them.

Putin, Kim Jong-Un and Bashar al-Assad of Syria would be examples but none in recent times has been as successful as Trump in creating a cult of personality and holding people in its thrall, firing those who won’t deliver the required loyalty. Their success is measured in personal rather than organisational achievement.

Such leadership can appear very successful in the short term, but is ultimately disastrous for the organisation and few will call them out for fear of damaging their own futures. When seen in the glorious technicolour of the aftermath of the last US election, some said, ‘Oh that could never happen to us’. Trump rode roughshod over norms, ethics and laws, and then endeavoured to dismantle an election result while many of his fellow Republicans looked on as if helpless. 

He satisfied many stakeholders whose self-interest was advanced by his activities. Other stakeholders voted him out arguments continue as to whether his leadership advanced the cause of his party and the USA. That depends who you believe and whether you prefer facts or opinion.

What happens when leadership fails? History is full of stories of failures in leadership in countries and organisations. In countries, some leaders meant well and still failed, others looked after themselves. Some leaders are blatantly obvious with their intent but clever with messaging and many will follow and be caught out when it is too late. However besides clever persuasion, fear and reward are employed. This is also true in corporates, though usually on a very different scale.

Adolf Hitler was very persuasive and very clever at setting groups against each other. He was not a great strategist in the end and the economics of his grand vision could not cope with the scale of the USA and USSR as enemies. He, too operated successfully in a world of opinion conquering truth. Thankfully it did not last.

Jim Callaghan was a fairly capable and amiable UK Labour Prime Minister in the mid-70s. You could not criticise him personally, but like the leader of Eastman Kodak (see below), and several leaders before him, he failed to see that the UK economy could not survive in thrall to strong Trade Unions. The result was the election of Margaret Thatcher who turned the country around, but through her own ‘cult’ of Thatcherism led the country into other challenges.

Great examples of corporate leadership failure include:

• Kay Whitmore, CEO of Eastman Kodak. You may not know it but Kodak first developed the digital camera in 1975 yet Whitmore ignored it and focused on film. Then in trying to pick up the pieces he famously fell asleep in a meeting with Bill Gates to discuss integrating the company’s products with Windows. Kodak still survives but completely lost it’s global role in image making.
• Gerald Ratner, CEO of the Ratner Group, a very successful jewellery retailer, only made one mistake but it is now known for having created the ‘Ratner Effect’. In a magazine interview, he arrogantly described a sherry decanter set sold in his shops as “total crap”. The retail and share market impacts were disastrous and Ratner was fired from his own firm.

So, what do we learn from this? Organisations succeed with authentic leaders who lay the foundations of trust and culture for sustained performance. This makes the organisation more adaptive, well-prepared for future changes and less susceptible to CEO whim. This is more important now than ever.

As individuals, learning how to lead means learning how to achieve personally, manage teams and manage upwards. Critically, though, understanding those around you, their needs, their capabilities and their challenges will best enable you to perform well, take opportunities and enjoy a fulfilling life.

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