Leadership: Does It Really Matter?— (adapted from Hard Facts by Jeffrey Pfeffer)

Does leadership really matter?  The authors of Hard Facts: Dangerous Half-Truths & Total Nonsense would answer, “It depends.”  In some cases, leaders who are in control of their organizations have been very helpful.  At other times organizations have failed because of too much influence and control by a leader.  The authors place two considerations before us:

·        Are leaders really in control of their organizations?

·        And if they are, should they be?

Of course, history is filled with examples of leaders who have make a big difference in their organizations (and for some, in the world)—some for good, and some for bad.  The authors point out that systematic quantitative research demonstrates that leadership can influence organizational performance.  Leaders cannot only affect financial performance of organizations but also the organization’s culture.  For example, research suggests that “60% to 75% of the employees in any organization report that the worst or most stressful aspect of their job is “their immediate supervisor.”  So good leaders can create; bad leaders can destroy.

But there are times when leaders don’t have that kind of impact.  Mike Ditka, a former National Football League coach once stated, “Coaches get too much credit and too much blame.”  The authors refer to one study of the performance of 167 companies over a 20-year period where the researchers found that company and industry had much larger effects on variation in sales, profits, and profit margins than did changes in leadership.  Researchers in general conclude that the effects of leadership on performance are modest under most conditions, strong under a few conditions, and absent in others.  Many times organizational performance is determined largely by factors that no individual (including the leader) can control.

So what are some of the reasons that leaders may actually only make a small difference in how well companies do?  First, there may be constraints present that they can’t easily change (or can’t change at all).  For example,

·        The existing people in the organization

·        The existing products

·        The existing markets

·        The overall economic conditions

Another reason may be somewhat hard to believe.  Leadership effects are modest because leaders tend to be very similar. 

When you think about it, there are no wildly varying skill sets and competencies among leaders.  There are no big differences in how leaders are selected.  They all tend to be chosen based on similarity in education, outlook and experience.  Thus, many leaders end up thinking similarly and making similar decisions.  For those that do think differently, many of them, the all-star leaders, are more highly sought after and end up taking positions at larger, already more successful organizations.   

And when we promote from within (which is a good thing), those that are promoted tend to have similar attributes.  This self-screening tends to reduce variation in the leadership team such that in large organizations, vice presidents tend to be significantly more homogeneous than first-level managers.  In fact, the “voice crying from the wilderness with a different perspective” is sometimes labeled a troublemaker. 

So, where does this leave us?  It appears that leaders have some chance of making things better, but they can also make things much worse by causing a host of organizational problems.  This suggests that avoiding bad leaders may be a crucial goal, perhaps more important than getting great leaders. 

Help! I’m the Leader!  Now What Do I Do? 

• Project confidence and talk about the future (but recognize the organizational and external realities and remember your limitations).
• Maintain an attitude of wisdom and humility (don’t let the adulation you receive go to your head).
• Learn when and how to get out of the way and let others make contributions (none of us is as smart as all of us).
• Build systems, a culture, and an organizational structure that allow others to succeed.

Certainly a Christian perspective on all of this is very helpful.  Maintaining a close relationship with Jesus Christ will help you keep “the main thing the main thing.”  Having an accountability group (perhaps an Advisory Board) and/or a personal CEO coach can help you rein in the self-enhancing tendencies that are inside each of us.  Realize that all good things come from the LORD and that it is He Who has given you your talents and abilities to do His good will within your organization.  And praying daily for heavenly wisdom so that you can discern when it is time for you to lead, time to follow, or time to get out of the way and let others shine as you and your team meet the daily challenges of your organization. 

Bottom Line: Be the leader who follows the Leader. 

Keith 

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