Real Leaders Don't Boss

by Ritch K. Eich

  Logical Though Often Elusive

  The logic behind my Eight Essentials of Effective Leadership is deceptively simple. Many of us in business have heard it before: treat people right and do what’s right for them, and the business will prosper. The concept seems easy enough. Yet in application, those in leadership roles often fall far short. Most talk about or around the various attributes, but few actually follow through with the understanding, direction, drive, and commitment necessary to be a real leader. True leaders put service above self; empower, don’t control; and serve rather than demand to be served. Though making people a priority may not be a popular business model today, it’s the only one I can enthusiastically endorse. Throughout my career, I have seen firsthand that the best CEOs subscribe to this approach, and the worst do not.

  The Need to Inspire

  Real leaders don’t dodge opportunities to impact change; they take the challenges head on. Adm. Elmo R. Zumwalt, Jr. certainly did just that. He led the Navy at a very tumultuous time in the 1970s as then-President Richard Nixon’s Chief of Naval Operations. In the Vietnam War era, our country and the military were torn by racism, tension, and turmoil. The Navy faced race riots and sit-down strikes on the docks. Yet Zumwalt saw beyond it all. He was a visionary and a reformer with passion, understanding, resolve, and communications mastery. He transformed operations because he empathized with his young troops’ problems—whether they were financial, marital, or caused by long deployments. He was committed to the rights of women and minorities, and knew how to expedite communications and get the job done. And he did it all amid strong opposition from the staid Navy establishment. Nixon appointed Zumwalt over dozens of more senior officers. Many of them had a tough time getting over that. Some never did.

  Another real-life leader, this one in the civilian workforce, is Alan Mulally, CEO of Ford Motor Company in Dearborn, Michigan—the same Ford Motor Company that earlier in the last decade was devastated by safety recalls of its popular Explorer SUV. Mulally was named in Time magazine’s “The World’s Most Influential People” in 2009, was a former Aviation Week “Person of the Year,” and was on the BusinessWeek list of “The Best Leaders.” Scott Monty, social-media head at Ford, describes his boss Mulally as “the real deal,” a leader who inspires by “simply being a human being.”6 Lesser executives would have shunned the incredible challenge to turn Ford Motor Company around, but Mulally took the helm of a company that many corporate experts believed was doing an excellent job of running their business into the ground, inspiring others to believe in its revitalization.

  Paul Levy, former CEO of Boston’s Beth Israel Deaconess Medical Center, also inspired his employees with his actions. In the medical field, he’s a staunch advocate of shared governance—that is, shared decision-making—between physicians and employees. That is not always a popular stance among those in the medical community, especially in the nonprofit sector. Yet amid the economic meltdown of 2009, Levy took cuts to his salary and benefits package, and boldly encouraged hospital employees to do the same in order to save the jobs of the hospital’s lower-wage earners.

  Real-life leaders such as Zumwalt, Mulally, and Levy embrace effective leadership, the nature of which inspires others. Many others in positions of power and control do not. The result, as the McKinsey survey reflects, is that workers are disconnected and disenfranchised from their companies.

  Leadership—formal and informal—exists at all levels of every organization. In the 1990s, as California Lutheran University’s vice president of marketing and communications, I worked with five exceptional leaders. None had big titles, big offices, big salaries, or big staffs. They didn’t seek power, the limelight, or credit. Yet their words and deeds personified the Eight Essentials of Effective Leadership, and they created a culture of leadership around them. They were always there in a pinch, were never too busy to help others, and always went the extra mile to provide superior results:

  Dennis Bryant of Conferences and Events. He was the motor who kept the independent educational establishment functioning, the “Ernie Pyle” of the collegiate troops.

  Della Greenlee of the Foundations office. A gifted writer and story-teller, she was the master at establishing enduring relationships with the foundation world.

  Jose “Joe” Morales of Printing Services. A superb teacher and role model, he could write the book on quality customer service.

  Vanessa Webster-Smith of Auxiliary Services. A staunch champion and mentor to those students who work for her, she was delightful and always ready to help.

  Katie Binz Sims of University Relations. Highly ethical, moral, and selfless, with a tremendous depth of commitment, she had an inspiring effect on everyone and an uncanny ability to attract others from all across the campus to assist in branding the organization.

  All five of these university leaders embodied what Robert Greenleaf meant by the term servant leadership. They displayed empathy, mentored student and colleague alike, honored the faith institution’s past by respecting those who preceded them, and continuously strived for the common good.

  Health Hazards

  Beyond bottom lines, poor or non-existent leadership can be hazardous to employees’ health. A Swedish study involving researchers from Stockholm University and Karolinska Institute, as well as University College London and the Finnish Institute of Occupational Health, found that a bad boss can create unnecessary and debilitating stress among employees. The group followed the heart health of more than 3,100 male employees, aged 19 to 70, in Stockholm, Sweden, between 1992 and 2003. Workers who rated their bosses least competent had a 25-percent-higher risk of serious heart disease, whereas those who rated their bosses as most effective had the lowest risk. “This study is the first to provide evidence of a prospective, dose-response relationship between concrete managerial behaviors and objectively assessed heart disease among employees,” Anna Nyberg, coauthor of the study, said when the study was released in 2009. “Enhancing managers’ skills—regarding providing employees with information, support, power in relation to responsibilities, clarity in expectations, and feedback—could have important stress-reducing effects on employees and enhance the health at workplaces,” added Nyberg. Study participants were asked to rate the leadership styles of their senior managers in terms of how clearly they set out goals for employees and to assess how good a manager was in terms of communicating and providing feedback. Study results showed that those who created the most stress had a lack of empathy and an inability to delegate, as well as a refusal to listen to staff.7

  Leadership Learned

  Great leaders can be born into a culture of leaders—the Kennedys, for example—but birthright is no guarantee that someone will become the real deal. Real leaders are made; they learn through trial and error, and are nurtured and developed through time. Too often we hear things such as “he (or she) is a natural-born leader.” A person may, indeed, have the make-up, temperament, patience, and vision to lead, but without the right attitude, experience, approach, and training, that individual’s “knack” for leadership doesn’t translate into real leadership.

  Whether leaders are made or born is “an old question that has dogged academicians and practitioners alike for centuries,” says Michael Bradbury, former Ventura County district attorney and prosecutor, teacher, and leader. Bradbury also said:

  The answer is they are born and also made. We have all heard the stories of natural leaders who, after an undistinguished career, emerge a hero in combat environments by leading their men out of danger or to take an objective. They instill confidence and courage in others who then find the strength to continue to fight and help others. Winston Churchill, I believe, fell into this category. He was pilloried at times for his perceived lack of leadership but as prime minister rallied the people and saved England during World War II. He was then promptly thrown out of office. But, I believe that more leaders are made than born. There are leadership academies everywhere. Most prep schools advertise that they d
evelop future leaders. Our colleges and universities pick up this mantra and it dominates their marketing material. And, of course, the military promises, in its multimillion-dollar recruitment efforts, to build tomorrow’s leaders.8

  Most real leaders aren’t born with some innate ability transforming them into magnets that attract others to follow them. They may have expectations placed on them to rise above their present situation or environment; they may even have an inborn strong desire to serve others and to accomplish something unique. In most cases, however, leadership skills are developed and honed in the battlefield of life, where leaders discover their drive, passion, and wisdom. Through trial and error, winning and losing, a leader’s self-confidence grows, aplomb develops, and risk-taking becomes a more accepted path. Observation of other leaders in action and service to others often becomes very important.

  Honing those leadership skills can happen outside the workplace, too. One of the many leadership “laboratories” helpful to me was my college fraternity, Sigma Phi Epsilon. Serving my fraternity brothers in different roles afforded numerous types of leadership training. I learned quickly how to deal with adversity and constructive criticism, as well as how to improve, grow, and handle increased responsibility. Perhaps most important, the significance of serving others was reinforced time and again, as was the value of a close-knit and open-minded community.

  Being chosen by my peers to be captain of a varsity sports team was also an important learning experience for me. As captains are normally chosen to help inspire and energize a team, I saw this opportunity as a test of my leadership skills. I realized I had to not only step up my performance as an athlete but also to set an example by the way I practiced, helped younger players, and reinforced the coaches’ goals for the season. My coaches instilled in me the belief that effective captains helped develop and teach the less experienced among us just as business leaders strengthen their employees’ skills. Whether you are a captain of a sports team, an academic decathlon, a debate team, or a work team, you learn to be a better leader by practical experience.

  Round-the-Clock Leadership

  Amway co-founder and NBA Orlando Magic owner Rich DeVos, whom I got to know while I was senior vice president of a large Midwestern hospital, knew what he was talking about when he wrote in his book Ten Powerful Phrases for Positive People (Center Street, 2008), “Leadership is what you do at home.” Again, it’s about living the ideals in your private, professional, and social life; passing them on; and motivating those around you.

  “If your actions inspire others to dream more, learn more, do more and become more, you are a leader.”

  —John Quincy Adams9

  Howard Holmes, mentioned previously, did just that. Before his death in 2001, Holmes, as CEO of Chelsea Milling, was a trailblazer in the packaged-foods industry. Along the way, he always had time to listen and share his knowledge with others. Today, a plaque hangs on the wall of the mill that reads: “Howard Sumner Holmes’ devotion to the noblest principles of living and his unfailing generosity with his time were qualities for which he will long be remembered with great affection.” Holmes’ real-life leadership rubbed off on his son, Howdy, who succeeded his father as president and CEO of Chelsea Milling in the mid-1990s. With his father’s same inspiring approach, Howdy was able to make the necessary adjustments to shepherd the 105-year-old company through today’s turbulent business times and strongly position it for the future.

  Howdy Holmes demonstrated his considerable sense of leadership skill long before rejoining the family business. A racecar driver by training, he was named “Rookie of the Year” at the Indianapolis 500 in 1979. Off the track, he proved to be an inspiring leader for young fans, too. I once watched him work his magic with a group of Cub Scouts in Ann Arbor, Michigan.

  It was an evening I shall never forget. Within a few minutes, Howdy Holmes had captivated the group, and they began sliding on their haunches across the gym floor to get closer to him. As he spoke about physical fitness, clean living, pursuing dreams, and the importance of not making mistakes that could forever destroy aspirations, I knew right then that this young man would become a truly inspiring leader. Howdy spoke with the children—not at them—and was well-organized, humorous, and clearly passionate about his message.

  Leadership Today

  Today’s workplace is a far cry from the insular corporate environment of workplaces of the past. The marketplace is global, wired, and constantly changing. These facts cannot be excuses for poor leadership. These are simply the realities that necessitate different approaches and shifts in leadership. Though the values of true leadership are timeless, the application must change as business does. Let’s look more closely at the old and the new approaches to leadership:10

  Yesterday

  Today

  Simply manage those around you.

  Teach and lead by example.

  Lead by fear, intimidation, and threats.

  Lead by teaching, empowering, and mentoring.

  “My way or the highway.”

  Define the parameters and then allow workers to innovate.

  Relatively predictable external environment that complemented simplistic, more stratified work environment.

  Team approach to solving problems.

  Local, regional, or national market.

  Global external environment; very fast to market.

  Stable markets with well-defined niches.

  Marketplace more volatile, more ambiguous, more competitive, and more risk is associated with decisions made.

  Leaders recruited from outside the organization.

  Companies develop many of their leaders from within with the help of leadership pipelines that train, educate, and develop candidates from practically every level within the company.

  Autocratic leaders, with CEO usually making the decision himself or with one or two others in decision-making capacity.

  Real leaders more humble, use executive teams in decision-making.

  Leaders and boards of directors primarily white males.

  Boardrooms more diverse; women lead major companies, though many argue the glass ceiling remains.

  “That doesn’t, however, mean the qualities that always have distinguished true leaders don’t still hold true,” says attorney Bradbury. “Those qualities include honesty, leading by example, demonstrating character in all that one does, not asking someone to do what you would not, being kind and understanding, and being decisive and fair,” adds Bradbury, who also excels at grooming talented young attorneys for careers in judicial and legislative branches of government, and who is the first district attorney to be elected twice as president of the California District Attorneys Association. He continues:

  Leaders today must understand that they can no longer simply rely on “gut feelings” and doing it the way it was always done. The new leaders must be inquisitive and genuinely interested in change and learning. For example, they should become familiar with the new and rapidly expanding social media. A leader should learn from his/her employees and seek out opportunities to do so.... Older leaders must return to [leadership] “school” and learn to meld the new thinking, global and otherwise, with the tried-and-true characteristics of great leaders.11

  Unfortunately, not all the developments and changes in today’s workplace are for the better. The trend toward excess in top-level management compensation and benefits has created significant challenges in the sphere of leadership, especially when considering changing demographics and attitudes in the workplace.

  The younger workforce—including growing numbers of Millennials—is far less enamored of traditional organizations, according to author Ron Alsop.12 These workers tend to be more independent and less likely to remain in the same job for as long as their counterparts of the past. That creates major challenges for today’s managers. Again, these are not insurmountable challenges, and they come with big rewards. But it takes new stimuli and incentives to retain these technologically savvy, brigh
t, and environmentally conscious young minds, including more interesting assignments, frequent performance feedback, and company-supported affinity groups.

  Adding to the challenge, as the gulf in salaries and benefits between the top and bottom ranks of many organizations exceeds acceptable bounds, workers are much less likely to feel compelled to work harder, have a sense of loyalty, or feel responsible to help solve a company’s pressing challenges. These undervalued employees instead point to the C-suite with its bloated salaries, perks, and bonuses, and say, “Let them solve it!” Factor in today’s rocky economic environment that has forced many companies to eliminate some of their workforce in order to survive, and the fact that the traditional expectation that those remaining will pick up the slack doesn’t necessarily hold true anymore.

  The General Motors bailout and takeover is a prime example of the chasm between boardrooms, line employees, and market realities. Another example is the insurance giant American International Group (AIG), which the federal government bailed out to the tune of $85 billion and a majority ownership in 2008. In the case of both companies, the leadership enjoyed exorbitant salaries and lavish perks as the markets crumbled around them. (As of July 2011, AIG continued to struggle as it appears GM continued to rebuild.)

  The challenges of the 21st century aren’t insurmountable. They are simply new and different, and require real, enlightened leadership to step up and take the helm. Some companies and leaders already are doing just that, according to the Hay Group’s sixth annual Best Companies for Leadership Study and Top 20 released in January 2011. The 2010 survey involved more than 1,825 organizations worldwide. Among the approaches top companies have adopted to improve their efficiency and competitive positioning are diversifying their workforces and moving away from hierarchical—top-down—leadership, the study reports.13