A Primer on Leadership

by CRP Partner Gene Baldwin
as published in Franchise Times

There have been millions of words written on the art of leadership. Many notable persons, including Rudy Giuliani and Ken Blanchard have recently written books on the subject. Because leadership is more art than science, opinions and perspectives on the subject of leadership are widely diverse. However, nearly everyone will agree that effective leadership is a key factor in the success of any organization. Let’s look at the basic attributes of good leadership. In its simplest form, leadership consists of only two elements:

• The leader’s clear vision for the organization.
• The ability the leader to get others to follow him in pursuit of that vision.

The leader’s vision for the organization is composed of its mission statement (reason to be) as well as specific goals for the organization. All successful companies have capitalized on some key competitive advantages that result from the leader’s vision for the organization. As market conditions change, many leaders modify or change their vision. New competitors may enter the market or consumer tastes may change over time. It is perfectly logical for a company’s vision to change as conditions in the market change. At the point when the company’s vision changes there is much risk. The most significant risk is that the changes implemented by the company may not resonate with the customer. Long time and loyal customers may become confused by the new offerings or service systems and change their buying patterns. If immediate corrective action is not taken in those instances, the entire company may be at risk. An example of this was the retail clothing chain, Gadzooks. When Gadzooks abruptly abandoned its boy’s clothing line in favor of exclusively carrying trendy girl’s fashions, the results were disastrous. Earnings and cash flow dramatically deteriorated to the point that Gadzooks was ultimately liquidated.

The second part of leadership is the ability of the leader to get others to follow his vision. Most successful leaders base their ability to instill confidence, cooperation, and focus throughout an organization on a few basic tenets; honesty, open communication and training.

• Honesty must be a cardinal tenet of the organization from top to bottom. The leader must be honest in his personal behavior as well as honest in dealings with others in the organization. Immoral and unethical behaviors on the part of the leader can seriously undermine the effectiveness of the entire organization.
• Open communication must be fostered by the successful leader. Many organizations are lead by individuals who are very poor communicators and lead only by fear and intimidation. In today’s world that approach will not work for the long term. A much better approach is for the leader to welcome open and honest debate and discussion when critical issues are involved. We have already said that one of the most vulnerable times for an organization is when there is a change in the company’s vision. The leader must be very sensitive to feedback on the new direction and be willing to accept comments, suggestions and criticism of the leader’s decision. Ultimately, the leader must weigh all competing factors and set the clear direction for the company. If the new direction is not yielding the desired results, it is critical for the leader to have the inner strength and confidence to admit the mistake and take the proper corrective action. Some leaders are unable to do this. They become unwavering in their decisions and unable to admit mistakes. Many times the single-mindedness that made the leader successful comes back to haunt them as they seem to be blind to the failure of their decisions and, in the process, severely damage the company’s prospects.
• Training is the final key element in garnering support of associates to follow the leader’s vision. Goals for the organization are much easier to achieve when the leader “shows the way” and does not “dictate the way”. An effective leader is a good teacher and coach. One famous instructor maintained that you could not impart to others what you do not possess in yourself. For example it is not enough to demand good customer service without the leader demonstrating the key elements of effective customer service and providing training resources to support proper execution.

Leadership is art and not science. The vision of the organization must be the bedrock of its culture. That vision should be very carefully modified as market conditions warrant. Members of the organization must be committed to the vision as communicated by an honest leader, have the freedom to express their opinions, and finally, the leader must provide the training resources to allow the company to achieve its goals.

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