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The Magazine

Issue 4

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Spencer Green
Chairman, GDS International

Sales and the 'Talent Magnet'

A lot is written about being a ‘Talent Magnet’, either as a company, or as President. It’s all good practice – listen, mentor, reward, provide clear goals and career maps. Good practice for the employer, but what about the employee?
24 May 2011

Leaders wanted – managers need not apply

goodpractice.net | www.goodpractice.net

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Over the past few years there has a huge move towards leadership training courses, but has this been at the neglect of management skills? The principal of a leading business school in the UK told me recently that simply changing the title of a course from management to leadership lifts uptake by a factor of five. Leadership is in vogue, and management is somehow regarded as a lesser skill. Certainly when I talk to CEOs and HR directors, I am often told that what they are looking for is ‘leadership’. There is very little mention of management skills.

In the Harvard Business Review, John Kotter has argued that leadership is different from management, but if either is missing, success in today’s business environment will be elusive; according to Warren Bennis and Bert Nanus, “leadership is one of the most observed and least understood phenomena on earth”. Consequently, there are many different and overlapping definitions of both leadership and management. In terms of leadership, I think the following definition from Joseph C Rost’s Leadership for the 21st Century is worth quoting: “Leadership is an influence relationship among leaders and followers who intend real changes that reflect their shared purpose.” Management, on the other hand, is described in R L Daft’s Leadership Theory and Practice as: “The attainment of organisational goals in an effective and efficient manner through planning, organising, staffing, directing and controlling organisational resources.” In short, leadership is about influencing people and creating vision, whilst management is about control and creating predictable results.

The short answer to my initial question is that both sets of skills are necessary. It is highly unlikely that you will reach the top of the organisation without having the relevant management skills. You can be a brilliant technical manager, but if you do not have the leadership characteristics to inspire people to follow you, you will not succeed. In most large organisations you will need to manage and deliver the strategy.

Entrepreneurs like Richard Branson can be brilliant leaders, but he has had the sense to appoint top-class managers to deal with the operational level so that he doesn’t have to. Instead, he sets the strategy and vision, and leads the company in the right direction. Many leaders claim that they do not want to get involved with the detail. However, unless they appreciate and know the management processes, they will not be an effective leader.

There is a long-running debate about whether leadership can be taught. Millions of pounds are spent each year on leadership courses and training, but I am sceptical about whether leadership can come from a course alone. Certainly it can help bring out leadership qualities, but there are so many other contextual and situational factors involved that experience is, perhaps, more important. Having to cope with situations and challenges can really hone leadership qualities that are already under the surface. It is no longer sufficient to put on your CV that you have spent two weeks bonding with colleagues on an outward-bound course. You have to demonstrate practical examples of actually being a leader. To paraphrase Viscount Leverhulme’s maxim about advertising: “I know half the money I spend on leadership training is wasted; the trouble is I don’t know which half.”

One must also consider that organisations change in terms of structure and culture. The right type of leader at one stage in the development of the company might not be right at another stage. People often mistake technical expertise for management ability. Someone can have brilliant technical ability but lack the management and leadership abilities to take their enterprise forward. So many start-up companies fail not because their offering is flawed, but because they do not put the right managers and leaders in place to drive the business forward. If you are no longer the right leader for the organisation, it can make sense to bring in someone who is.

People imagine leaders need to be like Sir Alan Sugar or Donald Trump – brash, bold and, some would say, charismatic. However, many leaders are quiet, thoughtful and, dare I say, cerebral? They are good at leading their team and earning respect, and can energise their people to achieve common goals. The best leaders know and understand their strengths and weaknesses, but, more importantly, they understand the ‘why?’ question. Why is what they do important? What purpose does it provide in their life? You can only be a leader if you have followers, and whilst there are various types of power that can create followers in today’s Western economies, leaders need to provide some purpose for those that are willing to follow them. If you want to get to the top, you need to think about how you can provide this for your organisation. The first step is understanding yourself. This allows you to create a compelling vision for the people with whom you work.

Interestingly, management needs a different perspective: it needs a much more personal focus on individuals and their skills, experiences and needs. This focus will help you, as a manager, to get the best from each individual.

What advice would I give to someone applying for a top position? Leadership and management are both required to get to the top. One without the other is unbalanced, and will leave you vulnerable and exposed when the going gets tough. You should aim to develop both sides of your career, seizing all opportunities to acquire technical/operational management skills and enhance your leadership experience. As you move up the ladder, the need for broader leadership skills and the balance between leadership and management changes. However, remember the situational aspect, because what worked yesterday may not work again tomorrow. Who said it was easy?


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