Why Do Leaders Fail?

13.4.2010, autor: Clive G. Holt

 

I remember the early days of my career very well. There I was fresh faced from university, dressed in a new suit sitting in the reception area of my first employer. Although a small company, just a dozen or so executives and staff, it was unbeknown to me at the time that this first corporate position would become a firm foot on the ladder towards an international career in organisational training and executive learning and development.

As the days progressed from weeks into months, it was one Monday morning as I was sitting at my desk, when I received a message to report immediately to one of the principal directors of the company. It was with this individual, a Yorkshire man with a reputation for straight talking and a mind that was as precise as an industrial laser that I was to work alongside for the remainder of my stay with that company. Today as I look back on those early days there is one single point of wisdom this Yorkshire man consistently repeated to me as he taught me the skills of my profession -‘There is no substitute for ability.’

In recent times editorial comments in the media have exposed without mercy the public fall and decline of some of the world’s high profile corporate leaders and entrepreneurs. These few ‘headline leaders’ represent only the tip of the failed business world iceberg. There are many more leaders hiding below the surface, that are present in our corporate ranks that, if we look closely at, are showing the signs of leadership failure, but are ignoring the symptoms at their personal and professional cost.

As a consultant specializing in executive learning and development, I have had the privilege to work alongside leaders whose skills and expertise extends across a number of primary industry sectors, and cultural borders. During moments of shared professional debate and thought exchange , discussion have taken place in an attempt to seek out and identify what are the key factors that combine together to form that lethal cocktail that will eventually bring down a once highly respected leader in any organisation.

In the business environment that we all find ourselves working in today we are all acutely aware of the presence of the newcomer to the market place that is adding to our growing list of existing competitors. Political and economic policies, new technological innovation, and market trends adopted by both the buyer and seller add to the diversification of pressure on our business leaders. Notwithstanding these external considerations, executives are facing important challenges inside their own work place. In recent years we have seen a radical shift from the traditional centralized ‘command-and –control’ decision making process to one of organisation devolution where critical decisions are taken by individuals who work on the ‘front line’ of our business, the interface where company and the customer meet. In corporate finance new budgeting practices – ‘Beyond Budgeting’ is growing in operational application, and the excessive desire to produce data and support information has become overwhelming.

So what are the leading symptoms for leadership failure?
 

 

Symptom #1: Unable To Focus On The Key Issues That Matter.

The belief ‘more is better’ and ‘keep your options open’ has become the rallying call for many senior executives. The organisation’s strategic plan so often lists too many objectives that the organisation feels it must embarked upon if it is to remain in business.  Better by far to focus leadership  attention and that of the middle ranking executives and employees to a limited number of ‘strategic themes’ – Delivering a Total Solution, Building Customer Intimacy and Creating Operational Excellence. Themes such as those mentioned are few in number, but draws the organisation to the real issues that  may be of concern to them namely; seeking a reduction in operating costs, add product /service value, the need to build strong client relationships and enhance customer service delivery in the market place.

It was the French philosopher Voltaire who once advised to ‘judge a man by his questions rather than by his answers’.  So often it is the questions we as leaders fail to repeatedly ask our executive team or employees that soon become understood as being acceptable behaviour, agreed work practices and the business culture of the company. By not asking the sales manager why their pile of customers orders have not been processed, or why is there is so much raw material waste on the production line sends a clear message to the sales employee or production team that these issues are not a focused priority in the mind of their senior executives and therefore not a serious concern to the company. Such failure by the executive so often leads to the practice continuing and thus remains a problem that still requires attention. Unfocused leadership at both strategic and tactical levels within the organisation will always have a direct impact on future organisational performance and levels of achievement.
 

Symptom #2:  Fear of Risk.

Leaders who face risk soon become driven by a real sense of failing, rather than seeking a solution to the problem that lies before them. There are two factors that contribute most heavily to this state of mind. Firstly, there is the belief that they cannot sustain previous performance successes. Secondly there is their lack of situation awareness, and a diminishing understanding of the risk and the factors that influence and impact on the issue. Together these two mind sets compound to enhance the leaders personal belief towards failure. To counteract this state of mind avoidance or an aversion to making a definitive decision or to take charge of the situation kicks in resulting in the required action not being managed or even implemented correctly.

Researchers have identified a direct correlation between the longer a leader is successful the higher his or her perceived cost of failure. As a general rule, the risk failure factor diminishes as you gather more knowledge and identify the true core of a given problem. If you feel the risk is large and you are asked to make a decision, then the first question to ask yourself; do I have all the information at hand so I can make an informed decision? If not, search again for the information you require and re-address the risk one more time.  Remember there is always more that can be uncovered which will prove to be useful to you ,and which will enable you to make that confident and informed decision as well as lead the required action effectively.
 

Symptom #3:  Communication.

It is surprising the speed and immediacy breaking news is reported around the world by TV and radio networks, yet in an organisation whether large or small there are continual claims that we have a communication breakdown originating from our leaders. The lack of leadership focus and the fear of risk typically results in poor or even a breakdown in communication both vertically and horizontally within the organization structure.

Imagine how difficult it is for employees to perform their own duties and meet their organisation and client responsibilities if their leader is them self unsure of their own purpose, and the action they are required to take. It is not surprising that communication becomes vague and lacks clear content, focus and direction.

It is not uncommon that for some leaders whose communication is faltering, to adopt the psychic, crystal ball approach to corporate communications, believing that their immediate and close followers automatically sense their goals without ever being told.

Resulting from ambiguous communication by the leader, a sense of doubt or mistrust, together with a belief the leader is lacking effort or commitment begins to grow in the minds of superiors and staff. It is only when you are clear and focused on the direction you are following that communication pays off.
 

Symptom #4:  Ethical Priorities and Values.

In the modern business world the core values of the organisation and the agreed ethical governance together define by which rules the organisation operates, conducts business and meets its obligations to the wider community.  Ethics has become more and more set in the minds of organisation stakeholders, customers, the wider market place as well as employees.  Investors examine closely the corporate ethics of the organisation before injecting their funds. Customers decide whether to purchase goods and services on the wider corporate ethical position and policies of the company, and future employees when selecting their next career move discriminate between those companies who have positive ethical values and those who are perceived to adopt an unprofessional approach to business.

The highest accolade any leader can receive is when their integrity and competency has been acknowledged by their peers and staff, and when these qualities have remained intact throughout difficult and challenging business situations.  Once a breach of personal and professional ethics and competency has been made the freefall to failure soon follows behind.

So often I have observed leaders who have secured client contracts at whatever the cost, disregarding all rules of professional business conduct. Others consider and treat their team and other employees as ‘fish bait’, to use them as a means to achieve a greater end. Manipulation is confused with leadership. These leaders lose the bond that is essential for performance led teamwork to prevail, which over time will result in their own performance suffering as cooperation and support is slowly withdrawn to an essential and basic level of delivery by their colleagues and business partners.
 

Symptom #5:  Personal Limitations.

Our performance as a leader is heavily reliant on our personal physical and emotional wellbeing.  Misalignment and breakdown of these essential human needs impact on our mental approach towards work and eventually our level of performance and output. Psychologists talk about our ‘emotional balance ‘and the time that is needed to rest the mind and body so to avoid the risk of stress developing, which if unchecked ,will slowly build up leading to a radical adjustment of our rational thinking and patterns of behaviour.
Our need to perform well, to be mentally alert and emotionally and intellectually charged can only be attained when an inner balance is maintained.
 

Symptom #6:  Losing Sight of the Mission.

I once worked for a company General Manager who was highly respected within the organisation. One day he informed me that he was asked if he would like to take up a new senior position as Regional Director. I was delighted that such an opportunity was being offered to him; however I was surprised when he told me he would not take the post.  When I asked the reason behind his decision he told me that as General Manager he can say no and argue against the company on certain policy rulings and directives if they would bring about a loss of revenue performance to the business enterprise he was in charge of. As Regional Director he would have to ‘politically’ agree and drive through such directives even though through experience he knew they would be incorrect to do so.
In some instances our job roles expand and functions change, or we take promotion and with that comes additional leadership pressures and responsibilities. These changes that we find ourselves in also tell us if we still receive the pleasure we once had in the job. It is therefore important not to lose sight of our personal mission and clearly have in our mind the reasons why leadership is important to us, and the pleasures we derive from it.
 

Conclusion

The words, ‘there is no substitute for ability’ ring true today as they did back in my first job. The ability to gather knowledge, master new skills, become emotionally aware and develop new competencies that we can effectively apply to our professional life is just one part of our continued development. It is equally important to possess the ability that will enable us to know and recognise the warning signals that can bring about our leadership demise. These signals are placed before us to protect us.  To heed the warnings will enable us to avoid disaster. To disregard them by not taking an honest look at ourselves and not taking the required action is simply foolish.

Clive G Holt is an international learning and development consultant offering leadership training, learning and development and mentoring for corporate and none-profit making organisations.

 

Zdroj: Clive G. Holt, Expertis