Leaders influence, inspire and motivate organisations and teams to a place or situation that may have previously appeared impossible to those team members involved. Leaders are futuristic in their perspective and that is why they stand out from managers. Whilst management was invented to control and optimise production lines and other process oriented ways of working during the industrial revolution, leadership has been around for a good deal longer. Management is about process and metrics, using targets and means of measurement as its tools. Leadership is much more intrinsic in its properties; more about vision and emotion it is much more the art of inspiration rather than the science of measurement. Leadership needs flexibility to match the human instincts it inspires, it needs vision to create and make real the desired end state, it needs trust to create the cohesion and judgement to mange and mitigate the risks and prioritise the available resources.

Strategy is about all this, it consists of four key tenets Vision, Risk Mitigation, Talent Management and the prioritisation of resources. The tenets are interdependent and require an overall strategy to hold them together and keep them synchronised. Strategy is not about two years it’s about 5- 10 years. Strategy is about inspiration and vision in a changing environment, it affords an opportunity to select a course and change a course, dependent upon the situational requirement to map out a route that matches the circumstances and yet still delivers the required end state. Strategy is synonymous with great leadership and it informs and inspires those managers and those teams that work for great leaders. Leaders need to understand and use strategy.

According to PricewaterhouseCoopers it costs a year’s wages to recruit a member of staff and train them to the level of their predecessor and yet executives are still too busy to get it. Executives don’t pay enough attention to engagement – US statistics variously state that 66% of employees feel disengaged or that 60% are actively looking for new work and yet retention of talent is still underplayed in many boardrooms.

Let’s not just think about the cost of replacement but how much they cost when they are employed. A disengaged employer is far less effective in their role than an engaged employer, Keith Ayres notes that while a disengaged employee may be giving only 50% effort, we still pay them 100% of their salary. This means that a significant portion of payroll costs are valueless to the organisation as there is no effect. How much of your wage bill is frittered away without contributing to your bottom line? 

If the average salary of an employee in a 500 person organization is £25,000 then the annual cost of disengagement is over £4 million and £17, 200 a day. I think that deserves a CEOs and Board’s attention.

Instead of dwelling on the doom and gloom, consider another cost: opportunity. What would your world look like if instead of just studying your employees through your annual survey, you spent time actually engaging them in conversation about what they care about? What if you involved them in decisions that affect their life at work and the welfare of the company at large? What if you empowered them to do, to connect with each other, recognize one another for great work and truly collaborate? What could those sorts of employees do for your success?

Well this is the sort of opportunity that would be identified with Sampson Hall’s Gordian Model. Boards would be able to exploit this and many other opportunities which would be identified in the process as they drive their organisations to success. http://www.sampsonhall.co.uk/services/our-metrics/the-gordian-model.html

Anyone who watched the television last night will understand how each of us is programmed to ignore the evidence of failure and proceed in a positive way. That’s why we often harm ourselves through smoking, alcohol and unprotected sex even though we are fully aware of the consequences. So in our lives we always assume it will never happen to us and yet when it does in business we rarely see failure as a positive.  In life we are programmed to see a positive outcome otherwise we would not take risks and we would not develop and learn as a race. What we have to do is take the positives out of failure and use them in business as well.

When we plan to succeed there are automatic built in components of overcome failure because nothing worthwhile in life comes easy we are all more robust if we have and maintain a vision of eventual success.  Failure is not our enemy; but it is our friend. As a race we don’t always like adversity because it hurts. However, think of what adversity has delivered to our society in terms of a hunger and drive for success. It is not adversity that kills businesses. What kills businesses is a lack of understanding and education as to how things such as adversity and failure are actually assets, and not liabilities.  Every organisation if it is to exploit its opportunities should look for the positive in each situation. I like the old Chinese saying “I complained because I had no shoes until I saw a man who had no legs” makes real sense. Often it is only our lack of perspective that allows the fear of failure to control our thinking.  If we maintain perspective in terms of our real situation we can learn as much from failure as we can success.

Failure is not something to be avoided but something to be encouraged, all creative ventures yield to the maximum when failure is embraced rather than shunned.  Failure is often seen perceived as a weakness and yet we all have weaknesses as we are all flawed as humans that is in our nature! It is the strong man that knows his weaknesses. It is only when the limits of anything are known through it breaking or failing that we are we able to understand its flaws and  develop something new, it is only then that we have a  real need to change. That is as Donald Rumsfeld would say when an “unknown unknown” is possible because an “unknown known” has become a “known known”. Failure brings us knowledge and development and should always be viewed positively as long as it is not repeated too often because that only exposes an inability to learn the lessons of failure. If you keep on doing the same things you will always get the same results. As Albert Einstein said “the definition of insanity is doing the same things over and expecting a different result”.

A key skill for today’s leader is knowing what to remember and what to forget. Sometimes it is good to forget sometimes it is essential to remember this article assesses the importance of forgetting to leadership

Modern Leaders must be able to make clear decisions drawn from myriad bits of information; their decisions need to reflect a big picture understanding. With information becoming so abundant in this modern age, it is very easy to become overloaded and therefore not to comprehend the big picture. Total recall has often been associated with a high level of intelligence and hence achievement but this is not always so. When in a positions of leadership the opposite is more the case. Those with total recall often have difficulty differentiating the information and hence making strategic decisions. They more readily miss-understand the overall point or concept because they get so enmeshed in the detail. Detail is for managers and not leaders as forgetting, it turns out, has enormous value for leaders and big picture thinkers; forgetting and forgiving are both key attributes to good leadership. But timing is essential.

General Sir John Hackett as a commander in the 8th Kings Royal Irish Hussars employed a driver who had failed in battle as his own tank driver so showing compassion and leadership as he knew that the man would give anything not to repeat the experience of such failure and yet Hackett’s humanity and compassion would serve his reputation as a leader as they were quickly evident to the rest of his men! General Hackett had chosen to forget and forgive and General Hackett was an outstanding leader.

The other reason for forgetting detail is to enable strategic clarity. One of the greatest exponents of total recall was Solomon Shereshevsky who could recite entire speeches, word for word, after hearing them once. In minutes, he memorized complex math formulas, passages in foreign languages and tables consisting of 50 numbers or nonsense syllables. The traces of these sequences were so durably etched in his brain that he could reproduce them years later.  However, the issue was forgetting them and when Solomon was asked to make decisions, as chair of a union group; he could not see the big picture and tripped up as he was so entwined in irrelevant details. .   “Human memory is pretty good,” says cognitive neuro-scientist Benjamin J. Levy of Stanford University. “The problem with our memories is not that nothing comes to mind-but that irrelevant stuff comes to mind.”

“The act of forgetting crafts and hones data in the brain as if carving a statue from a block of marble. It enables us to make sense of the world by clearing a path to the thoughts that are truly valuable. It also aids emotional recovery after a traumatic incident. ‘You want to forget embarrassing things,’ says cognitive neuroscientist Zara Bergstrom of the University of Cambridge. ‘Or if you argue with your partner, you want to move on.’ In recent years researchers have amassed evidence for our ability to wilfully forget. They have sketched out a neural circuit underlying this skill analogous to the one that inhibits impulsive actions”.  Wilful forgetfulness aids self confidence and enables forgiveness of others.

Leaders need to learn when to remember and when to forget. Given that the best learning is experiential then the experience of failure must be built upon rather than being dwelt upon. Leaders must learn to accept failure as part of an individual and teams development however, they must also remember failures if they are repeated too often. They must also remember lessons from previous failures in order to prevent themselves from becoming involved in systemic failure. As Albert Einstein said ”the definition of insanity is doing the same things over and expecting a different result”.

Leaders benefit from selective forgetfulness of their own failings and others failings as well as forgetting detail to enable strategic clarity as detail is the domain of managers. For leaders there’s a time to remember and a time to forget!

The problem with the modern world is the speed of change. When one compares the speed an individual changes and the speed with which an environment can change and compare both with the speed of organisational change you can instantly identify the mismatch. So why is this obvious phenomenon such a challenge for the modern leader? Quite simply it’s because different issues and different problems require different characteristics and styles of leadership and leaders need to be more style savvy. The world now moves so fast with its new technologies that leaders who are autocrats struggle to keep up. Sometimes control needs to be exercised from on high sometimes influence comes from a lot further down the secret is exercising the right level of influence and control at the appropriate level at the appropriate time. Successful leadership is as much about the right environment as it is about the leader’s characteristics and a rapidly changing environment will challenge any leader however proficient.

Let’s just take three types of problem and assess the characteristics a leader may need to possess to be effective in delivering progress or a solution to each problem type. Keith Grint in Problems Problems Problems defines three categories of problem. The first is a Critical problem one that needs a solution now; they are problems that require a rapid solution to prevent further escalation. Here a leader needs to be both decisive and considerate in their actions; decisive to prevent the problem from running out of control instantly and yet considerate to all those involved with a view to a longer term solution. The London Riots are a fine example of a critical problem escalating. A wicked problem is more ambiguous in its boundaries or very complex where time may not be a consideration. Here a leader needs to understand and recognise the root causes of the issue and manage all those parties and agendas involved in the problem. Patience, intellect, emotional intelligence and understanding are key attributes required of a leader as they try to construct a collaborative solution. An example of a wicked problem is teenage pregnancy.  Now the third type of problem is the tame problem where the issue can be quickly and easily resolved although time may not be a consideration. In an efficient organisation these are dealt with relatively simply through process and operating procedures. They are the province of management and only become significant when they are raised at too high a level where they can quickly become disruptive. A leader needs courage and confidence to enable the organisation to deal with tame problems whilst maintaining them at the correct level. Courage to trust and teach followers, confidence to delegate and empower followers. Leaders need to establish organisations that understand of each member’s responsibilities, allocated boundaries and expectations. They therefore instil an ethos of ownership and responsibility that ensures problems are resolved quickly and effectively.

Control is the conundrum that confuses many in leadership roles, who has it, when should it be relinquished or delegated and how is it perceived? A leader is generally in a pre-ordained position of control at the start of a critical problem but has to work hard to maintain that control to engineer and sustain the long term solution. With a wicked problem the work begins in earnest straight away as the potential leader wrestles with the problem in order to generate the required understanding and environment to enable them to become a permissive leader. The third tame problem requires an ethos and culture of understanding and empowerment to exist so that responsibility is easily shouldered at the appropriate level. This requires a hierarchy enabling the delegation of control and trust from the leader downwards to the appropriate level. This is where the true potential of servant leadership shines through as the leader becomes the enabler rather than the controller or owner of the issue or the enforcer of a solution.

The skill sets and attributes required of the various leaders for each of the problems are different. This is why a leader needs the right circumstances and environment to become a lauded leader. A great leader’s skill sets and personal attributes have to match the moment. The old English proverb still rings true “opportunity makes the man”

The modern world where life is fast, communication is fast and technological advantage short lived, amplifies the requirement for flexibility and creates the need for an extended range of attributes from a leader. This can be achieved either by a group of leaders or a chameleon like flexible leader who has the innate qualities to lead and influence for an extended period of time. The current business environment is not the time for autocracy, and it is not the time for ponderous committees- the modern leader must be equipped with a toolbox of varied attributes that are suited to different environs and situations, but like anything in life it is the ability to recognise and understand the issue and produce the right tool to influence and lead at the right time that will make a leader stand out. Leaders need to comprehend the challenge that the modern pace of life imposes on their own leadership longevity and hence their utility as leaders. Leaders need to comprehend every situation in terms of scale and risk and they need to constantly be aware of both in order to apply the right style or model to the situation. Historically continuity and stability has helped leaders to prosper and yet modern life is about change. The one continuum in modern life is change itself – it is just quicker than it has ever been!

A leader enables followers to follow and but followers make leaders. Both Churchill and Hitler were adored by their followers and loathed by each other’s followers. There is no single set of attributes which make one individual a greater leader than another, just great leadership opportunities to match a leader’s characteristics to a particular situation or environment. Both Hitler and Churchill served a tough apprenticeship of failure until the right opportunities arose. Both were extremely successful for just a relatively short period of time. How many leaders are truly successful for an extended period of time? What apprenticeship did they serve and how did they lead? Questions that are worthy of pondering as the answers are key to the argument that leaders in today’s world need to be far more flexible and adaptable than their predecessors. They cannot just be selected they have to be developed so that they have the full range of qualities and attributes to meet their particular environment. Leadership is as much about learning as it is about knowing and a leader has to be flexible to provide the appropriate response.

Europe’s dead, the world is going into a double dip recession, businesses are going into receivership, and banks aren’t lending money; how come this nation’s businesses function at all. If you believed all you read in the newspapers or hear on the radio or TV you would be feeling pretty depressed as you enter a brave new year. How would those negative feelings assist you in challenging business times, how would they boost your confidence, how would they inspire those you lead to greater feats and happiness?

The natural inclination to focus on the negative underpinned by a natural instinct designed to assist self preservation also comes with a severe negative influence that is extremely unhealthy as the world of capitalism mutates into something new and unknown. Positivity is the only way forward but positivity requires perspective,

Key attributes that are needed in organisations to allow businesses to survive and develop in this new economic climate are vision, flexibility, courage, determination, teamwork and a positive disposition. None of them are new, few of them are developed and sustained deliberately in times of plenty and yet they are the ones most needed when times become more difficult.  What is missing in the short term approach to business is perspective. Its missing when things are healthy as it is not required but the evidence of its absence is stark when things get tougher. Perspective is vital within business leadership. Perspective is a view or prospect; it is also a particular way of regarding something. However for me the best description in a business context is an understanding of the relative importance of things.

The most important consideration in today’s business perspective is that the world has changed and it will not return to the heady days of 2008 prior to the banking crisis. But disaster is not as imminent as the media would have us believe.  Business is changing form as pace, risk, economics and environment impact upon it. It is only those business that have true perspective and apply themselves in a positive way using vision, flexibility, courage, determination that will endure whilst those without perspective who hanker after days gone by will soon become a part of history as they are the ones that lack the necessary qualities.

We have entered the age of empowered individuals. Leaders use potent new technologies and harness social media to organize themselves and focus interest on their agendas and activities. Most are ordinary people with access to new information tools that can virally create large global audiences for their messages.

The more traditional hierarchical institutions of modern developed societies, whether they are governments or companies, are not prepared or ready for this new social power or leadership as the riots in London and the recent occupy campaigns in cities around the World exemplify.

This power has resulted in the emergence of a new dynamic form of leadership and new styles of leader – they are individuals who do not hold formal positions of authority, they operate and influence at every level within society virtually – top, middle and bottom. They are interested in political, social and organisational change. They challenge the status quo of the traditional institutions and the established concepts and practices of leadership. The speed of action of such groups implies revolution although given the pace of modern life it may just reflect more rapid evolution.

The world is changing and potential leaders now have phenomenal access through modern technology to potential followers; but are we really seeing the emergence of a new ‘grassroots leadership style’ or just a virtual reaction to current geo-political and economic issues and imbalances on global organisational and social stages?

This new technological advantage neuters traditional power and law enforcement and quickly turns virtual agendas into reality and action on an unprecedented scale. What we are seeing is the emergence of a new type of social leadership, irrespective of position or power or authority – relational rather than hierarchical. The concept of a fluid collective responsibility with time relevant ‘liquid leadership’  that builds, fades and morphs – where leadership comes to the fore at the top, centre, or edges of an organisation be it virtual or real. Leadership based more upon time relevant expertise, knowledge, and relational connection. It is a transient relationship where power is virtual and yet influence is real – a matter of permissive leadership with influence presiding over old fashioned traditional enforced authority, control and autocracy. Speed is of the essence and speed creates a phenomenal advantage for these new free running leaders. Accordingly, social power or the ‘power with’ rather than ‘power over’ provides the collaborative advantage even on the global stage. Witness the Arab Spring. This new leadership can be momentary and omnipotent, as powerful and transient as it is weak and ineffective. Predictable-maybe sometimes, yet surprise brings potency and it’s this new leadership’s unpredictability in terms of uptake or influence that can make it difficult to control.  A popular cause and the means of unfettered communication are at the heart of this new leadership. Alliances fostered in an information age where national agendas are undone by social perceptions.

This  new leadership has a precedent; it is  similar in shape to the old terrorism of Al Qaida and Osama bin Laden. Where a religious and social agenda created a fanaticism that spawned martyrs by the thousand. Where social agendas pampered to by a sensationalist press created a myth of omnipotence. Perhaps the new anti-establishmentarianism will be seen as  the new terrorism when viewed from an old fashioned state government perspective

This new leadership comes and goes dependent upon the social situation and leaders come and go dependent upon the relevance of their expertise and the access they have to social media and the scale of their audience. This new form is so dynamic it resembles a ‘liquid leadership’ of a group coalesced by only a  social strategy or  popular agenda.

These new groups herded together by social conscience or injustice often present a preferred response  to those transgressors they oppose. Their preference is for action, to engage, not ignore; work with each other, not against to resolve issues  by whatever means whether the establishment likes it or not.

Business needs to understand this new dimension of leadership, if it does not it will miss out on an opportunity. It needs to harness the social and economic power this new form of leadership affords  For to understand and develop a new business leadership culture based upon influence and empowerment will bring with it a quantum change to the  long established way leadership is currently practised using some of the somewhat antiquated autocratic leadership theory.

Well we are in the doldrums economically; however we are not going to remain there as the human requirement to drive forward to seek better times begins to take effect. Quite simply when you are the bottom of a well you have two choices drown or start climbing and I believe that we are now beginning our ascent. So as we emerge into a brave new world that will be very different from all that has gone before how are we preparing for it?

Most businesses are anchored in the world of current balance sheets, reducing overheads and expenses, laying off staff and acquiring investment. All of which can have a severe negative impact on a business and its ethos,   few have had the sense to take stock of their position strategically and seize the moment. A former Prime minister who lived through harder times once said:

“A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty”. – Winston Churchill

So how do we seize the current moment for sure the economic recovery will be slow and for sure the competition will be tough and getting tougher and better. So how do you stand out as an organisation that gives added value?

People buy from people, people do business with people so the answer is there: Develop your people in preparation for the new world, develop your people to take your organisation forward, develop your people to show that you care and are prepared to invest in their futures as well as your own. Customers not bosses are the ones who ultimately pay wages unless you are fortunate enough to have found a generous benefactor.

I am constantly amazed at the lack of preparedness of UK companies to train their staff to gain competitive advantage. UK companies normally train to conform to legislation. A bout 80% of training is paid for by government subsidies and the popular belief is that government funds training. Unfortunately most of this training is below NVQ level 3.  Companies don’t train when they are busy- because there isn’t the time and don’t train when they are slack – because there isn’t the money. Yet if an organisation wants to recover or better its market position in the face of improving competition now is the time to train. Now is the time to give staff the tool set and the culture to provide an organisation with the competitive advantage. Particularly in a future world that is quickly looking very different from the one that took us to the current recession. We have to do something positive to seize the opportunity.

As that same Prime Minister said:

“For myself I am an optimist- it does not seem to be much use being anything else” Winston Churchill

The Rugby World Cup brings us a fine example of how not to lead and how a team can be successful despite its leader. Leadership has to exist at every level within a team if that team is going to perform consistently well. Leadership will influence and inspire team members to ever greater deeds. But leadership is about ownership and responsibility as well as empathy and understanding

Imanol Harinordoquy summed it up when he said the French team ignored coach Marc Lievremont at the World Cup because he was “lost”. After Lievremont called some of his squad ” spoiled brats” because they went against his instructions not to celebrate their Welsh victory.

“He was lost, I will not miss him,” said number eight Harinordoquy. ”It was our adventure. It was meant to be the nice experience of 30 men. We had to free ourselves from his supervision. He cast the stone at us too often. When something goes wrong, we’re all in the same boat. There are no good or bad guys.”

Great teamwork requires leadership to be inclusive rather than autocratic, developing a feeling of us rather than me and them. To do that trust has to be earned on both sides. Trust is earned more easily during testing, difficult and fallow times than it is when things are easy. Just look at the UK’s national cohesion delivered by Hitler through the Second World War. Trust is hard earned but can be lost very quickly if empathy and understanding are missing.

The human phenomenon that is the catalyst of trust is effective communication.  Effective communication is open honest and not in any way ambiguous. And communication is about the effect on the receiver rather than the intended message of the sender. So again Empathy and understanding of the receiver’s position is key to effective communication.

Teams are made up of individuals who are entrusted by the team to carry out the roles and duties they are responsible for. So individual responsibility for performance is vital to performance, yet there is also a corporate responsibility held by the team. This is particularly so in professional sport where fan bases and even nations are watching expectantly. Professional sportsmen are no different from businessmen in terms of responsibility. It is here where modern society has a good deal to answer for in terms of allowing the derogation of responsibility. Responsibility is about accepting blame and accepting feedback and using both to foster improvement; all too often responsibility is offloaded like a hospital pass to the nearest source of external influence attributable to the action or behaviour. Externalising protects the weak but also prevents individuals from the identification and self realisation of the key areas requiring development. Sportsmen need to shoulder both individual and corporate responsibility.

Sports teams must be held accountable for all their results, not just the good ones. Sir Clive Woodward is a fine example of someone who built a team around him to deliver success and in that delivery every individual knew their role and owned their individual and the corporate result good or bad. An outstanding team is results oriented and every individual owns their contribution to that performance and owns the whole performance; leaders just as much as any other direct contributor. For that to happen leaders need not blame and carry out retribution but instead they need to honestly identify failure and weakness and coach and develop to influence improvement.

Leadership is all about ownership and responsibility wherever that leadership may be exercised. Self leadership through to corporate leadership entail responsibility and ownership.

As large organisations drive to centralise their logistics and bureaucratic processes they are pushing against an increasingly evident ecologically focused drive to reduce environmental footprints as the public becomes more aware of the issue.

Not only is the general public becoming greener in it’s conscience but decisions in personal procurement are starting to be influenced by this phenomenon. So what is the value of local?

Community and a sense of it is becoming more valued particularly in the more rural areas and also in townships. Empty shops, the demise of a post office, school, local shop, and youth club all directly affect an individual’s life. How good does a retail street look with lots of “To Let” signs on the windows of empty shops? Communities revolve around areas where the locals collect. Communities come to the fore in times of hardship and do not prosper in times of plenty or large urban communities. A lack of a sense of community instils the sort of values that led to the wanton destruction witnessed during August this summer in the London Riots. Local is about community!

Environmental issues are affected in terms of a farming economy, a local wholesaler to a local retailer, if the complete production and retail process is controlled in a purely capitalist way. Locals go out of business, money is removed from the area and jobs are lost. Local facilities that drive local economies are vital to maintaining smaller communities.

Purely in terms of carbon footprint local involves less fuel, less machinery and therefore less carbon, less carbon means less carbon tax and less pollution. Local production is generally far less industrial and returns income to the local community. It helps our precious environment and maintains communities. Local prevents large retail organisations from killing the farming industry as they control prices in their focus on profit.

Next time you venture to a retail outlet just think of the damage you are doing to yourself and your community as you purchase a product that can be but has not been resourced from your local area.