Leadership is trusted influence
One of the biggest challenges facing businesses right now is a crisis of leadership. There is a need to ensure that the company will remain profitable, employees remain engaged and customers satisfied for the company to survive the current economic downturn. The second biggest challenge for businesses is to truly understanding what leadership is and how to ensure that it permeates throughout the company. This is, for many companies, much harder than it appears as this desire can often manifest itself as an increase in command and control management rather than a genuine improvement in leadership. Good talent management is hard to come by.
A true leader is trusted
The best way to distinguish management from leadership is to understand that management is generally concerned with controlling complex processes; and leadership is about managing and facilitating change. This manifests itself in the leader challenging the status quo and acting and thinking in a strategic way. Whilst management tends to be restricted to those in a management role, leadership is demonstrated by individuals regardless of any formal role with the company. By encouraging leadership by all employees is the key to a company’s success. Management and leadership is integral to each other and those that hold management roles need to have a good grasp and execution in both of these disciplines.
Leadership is getting things done through trusted influence. This implies two things, that the leader inspires trusts in his followers and he has the ability to influence others. To inspire trust the leader needs to be credible and have a good reputation. When deploying talent management strategies it is important to remember that employees are loyal to their leaders not to the organisation that employs them. With this in mind it is essential then that the development of leaders in the organisation, regardless of formal role, is planned, controlled and nurtured.
Good leaders are role models and have strong empathic characters that demonstrate high social intelligence. Social intelligence differs from emotional intelligence in so much as it focuses on the impact that an individual has on others. If you have high social intelligence then it is implied that you have high emotional intelligence as well.
How to develop trust
Trust = reputation and credibility; therefore to develop trust the leader must concern himself with having the right reputation and being credible in what they do. Employees need to believe in their manager and be able to consistently predict how their manager is likely to react in any given situation. This provides them with comfort and increases the chances that they will remain loyal to their manager. The basis of trust is character and competence. Questions to consider are:
- How much integrity does the leader have?
- Is the leader egotistical or humble?
- Is the leader’s intention honourable?
- How capable is the leader in his role?
- How does the leader’s track record stack up?
To develop trust the leader must provide the right level of autonomy to their employees. A leader that has an inappropriate command and control style of leadership demonstrates a breathtaking level of distrust in the employee’s abilities. This will encourage the employees to reduce their work performance and be less likely to be loyal to the manager or their company. Leaders in management positions need to be able to tell the truth at all times as this encourages trust in the relationship between the manager and the employee. The most effective leaders acknowledge other people’s contributions and not take a disproportionate level of credit for a job well done. They should be proud of an employee’s achievement and not feel threatened by their success. A leader that selectively shows their vulnerability to their employees, thus demonstrating that they are ‘real’ is more likely to engender trust. People find it hard to relate to individuals who seem strong all the time. The reverse is not true however, those that appear weak the majority of the time tend to engender distrust and contempt by those that should be following.
Credible leaders will be an expert in what they do, demonstrating a track record of competence that enables others to have confidence in their ability. They will treat others with respect and extend trust to others on a regular basis.
Trusted leaders are more likely to be able to influence their employees. With flatter structures and more matrix organisations it is increasingly likely that leaders are expected to manage employees that are not direct management reports. They are not responsible for their pay and cannot hire or fire them – they are, however, accountable for their performance.
With the credit crunch showing no immediate signs of ending, it will be imperative for leaders to work on cementing their credibility and trustworthiness, if they are to engage with their teams and encourage them to buy-in to the organisations plans for survival. Good staff are hard to come by and even harder to keep. In tougher times, a good leader will be fundamental in retaining and motivating the organisations top talent and preparing them for future succession. Equipping them the true qualities of leadership excellence is vital to securing the continuing success of the business in years to come.
Tags: Leadership, Reputation