The grey
area of leadership
There are many aspects of the
leadership process that are open for interpretation. This grey area contributes
to the complexity of the challenges that leaders – and those who govern them –
face. I would like to share with you where I stand with regard to a few of
these issues.
Successful
leaders are hard to find
There are examples of individuals
who have been thrust, wholly unprepared, into positions of leadership and
actually perform well
–
I think of President Harry Truman, among others. I would submit, however, that
relying on luck is a risky proposition. History shows that bad or inexperienced
leaders can produce disastrous results. While there are possibly innate and
genetic parts of leadership (perhaps broad intelligence and natural energy),
other parts are deeply embedded in the internal values of an individual; for
example, work ethic, integrity, knowledge and good judgment. Many leaders have
worked their entire lives to get where they are, and while perhaps some
achieved their stature through accident or politics, that is not true for most.
Anyone on a sports team, in government or in virtually any other endeavor knows
when he or she encounters the rare combination of emotional skill, integrity
and knowledge that makes a leader.
Successful
leaders are working to build something
Most leaders I know are working
to build something of which they can be proud. They usually work hard, not
because they must
but
because they want to do so; they set high standards because as long as leaders
are going to do something, they are going to do the best they can. They believe
in things larger than themselves, and the highest obligation is to the team or
the organization. Leaders demand loyalty, not to themselves but to the cause
for which they stand.
Nonetheless,
compensation does matter
While I agree that money should
not be the primary motivation for leaders, it is not realistic to say that
compensation should not count at any level. People have responsibilities to
themselves and to their families. They also have a deep sense of “compensation
justice,” which means they often are upset when they feel they are not fairly
compensated against peers both within and outside the company. There are
markets for talent, just like products, and a company must pay a reasonable
price to compete.
Big
business needs entrepreneurs, too
The popular perception is that
entrepreneurs – those who believe in free enterprise – exist only in small
companies and that entrepreneurs in small companies should be free to pursue
happiness or monetary gain as appropriate. Free enterprise, entrepreneurship
and the pursuit of happiness also exist in most large enterprises. And you, our
shareholders, should insist on it. Without the capacity to innovate, respond to
new and rapidly changing markets, and anticipate enormous challenges, large
companies would cease to exist. The people who achieve these objectives want to
be compensated fairly, just as they would be if they had built a successful
start-up.
Performance
isn’t always easy to judge
Managers responsible for
businesses must necessarily evaluate individuals along a spectrum of factors.
Did these individuals act with integrity? Did they hire and train good people?
Did they build the systems and products that will strengthen the company, not
just in the current year but in future years? Did they develop real management
teams? In essence, are they building something with sustainable, long-term
value? Making these determinations requires courage and judgment.
One of the reasons I am so proud
of our company is because of our great people, our great leaders. These past
five years have been a period of turmoil, crisis and stress for our industry
and sometimes for our company. What our people have accomplished during these
difficult circumstances has been extraordinary – a testament to the critical
importance of strong leaders. |
/1 
