Leadership
The Leadership Imperative Many entrepreneurs struggle with recognizing the need for leadership as distinct from management, and deciding which definition of leadership is most applicable to them and their situation. BY Michael A. Mobley
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cademicians, government officials and economists assert that entrepreneurship is the primary vehicle for job creation in the United States because they facilitate innovation, change, productivity and growth in the economy. It is also recognized that building viable businesses is a difficult task characterized by failure rates that can be as high as 70 percent. The failure of many entrepreneurial
endeavors can be attributed to a lack of appropriate leadership, which is critical to the successful performance of any business. However, there is no universally accepted definition of leadership, and this gap has facilitated an environment where the purpose and efficacy of leadership is often in the eye of the beholder. Many entrepreneurs struggle with recognizing the need for leadership as distinct from management, and deciding
which definition of leadership is most applicable to them and their situation. Peter Drucker, one of the most renowned and frequently cited theorists on the subject of management, defines leadership as follows: “Leadership is lifting a person’s vision to higher sights, the raising of a person’s performance to a higher standard, the building of a personality beyond its normal limitations”. If one accepts Mr. Drucker’s definition of leadership, then questions
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are raised as to the characteristics, behaviors and actions that make leaders most effective in producing successful outcomes for their organizations. Arguably, the first step in answering the question of what makes leaders most effective is recognizing that while both good leadership and management are requirements for creating and sustaining viable organizations, there are important differences between the two concepts. The distinctions between leadership and management are best captured by former Secretary of State of the United States and retired General Colin Powell: “Leadership is the art of accomplishing more than the science of management says is possible.” In the process of deconstructing this statement, one notes the description of leadership as art and the characterization of management as science. Interpreting General Powell’s definition, management concerns the development, implementation and evaluation of processes and procedures that allow the organization to function smoothly. The science of management refers to the ability to learn and standardize these processes and procedures. Leadership concerns people and how to motivate those people to realize Mr. Drucker’s definition of leadership. There is very little science associated with leading people, as people are individuals with a range of needs and wants. Consequently, leadership can be viewed as more art than science. An analogy that further clarifies the difference between management and leadership is a comparison of classical and jazz music. Classical music is creative, but tends to be performed the same way the vast majority of the time. Conversely, while jazz also has its standard charts, the live performances tend to be improvised, depending upon the musicians and the audience. John Kotter, author of The Leadership Factor, postulates that management is about complexity and leadership is about change. According to Mr. Kotter, management is short-term in its focus and concerns planning and budgeting, organizing and staffing, and control mechanisms. Leadership has a long-term focus and concerns setting a direction by communicating a vision, aligning people through effective communication, and motivating people by appealing to their needs for self-esteem and recognition. How, then does a person progress from being a short-term oriented manager to a long-term oriented leader? In a Harvard Business Review article, Michael Watkins, cofounder of Genesis Advisers, a leadership development firm, suggests what he refers to as “seven seismic shifts” to become an effective leader. First, one
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must become a generalist, rather than a specialist, which means understanding the key functions of an organization and developing mechanisms to evaluate the leaders of those functions. Second is the requirement to become an integrator, rather than an analyst, which means synthesizing the collective knowledge of the organization to solve complex problems. Third, is the need to be a strategist, rather than a tactician, which concerns a focus on the big picture, environmental shifts and the ability to influence key players outside of one’s organization. Fourth, one must move from being a bricklayer to an architect. The implications of such a shift are the ability to analyze and design organizations to function effectively and to more easily make required changes in the organization. Fifth, an effective leader should set the agenda, rather than be a problem solver, by defining the problems and issues that should be the priorities of the organization. Sixth, one must become a diplomat instead of a warrior, influencing the external forces that have an impact on the organization, including the government, investors and lenders, and the media. Finally, the leader must move from a supporting role to one of leadership, by exhibiting the behaviors consistent with effective leadership. An aspect of the behaviors referenced by Mr. Watkins concerns effective leadership as previously defined by Peter Drucker and General Colin Powell, i.e., facilitating superior performance by one’s employees. James Kouzes and Barry Posner, authors of The Leadership Challenge, recommend five leadership practices that characterize effective leaders: challenge the process by searching for opportunities for change, experimenting and taking risks; inspire a shared vision by envisioning the future and enlisting others to share that vision; enabling others to act by fostering collaboration and strengthening others; modeling the way by setting the example and planning small wins for the organization; and encouraging the heart by recognizing individual contributions and celebrating accomplishments. What I have presented are several opinions by respected individuals regarding effective leadership. As I stated earlier, there is no universal agreement about the definition of leadership, let alone what constitutes effective leadership. Therefore, as alluded to by General Colin Powell, consider these leadership concepts as art, rather than science, because leadership, like art, is in the eye of the beholder. That said, I would ask you to take to heart the words of Sam Walton, founder of Walmart: “Outstanding leaders go out of their way to boost the self-esteem of their personnel. If people believe in themselves, it’s amazing what they can accomplish.” (MG)