‘If your actions inspire others to dream more, learn more, do more and become more, you are a leader.’

John Quincy Adams, sixth president of the USA

This chapter covers:

• the different definitions of leadership
• leadership in context – historical examples that have shaped the world
• the pathways to leadership
• a look at what leaders actually do.

It is clear that the environment shapes the corporate world as much as the corporate world today shapes the world as a whole. By extension, corporate leadership – the topic to be explored in this guide – has also been shaped by numerous influences. Defining leadership, therefore, is a vast and complex task. There are many different schools of thought on leadership – as well as the skills and attributes required for it – to debate, compare and contrast.

The quote at the beginning of the chapter presents a reasonably comprehensive definition of leadership. The quote roots leadership in the attributes of a person. It alludes to a higher purpose and the ability to inspire others. It stresses the need to go above and beyond the call of duty. It expresses the inherent dimensions of the self and our effects on others – elements critical to keep in mind when working on becoming a leader. Finally, it alludes to the constant need for learning and action. The only thing it does not fully embrace is the notion of impact and change that comes with a leader’s title. In order to give the most complete overview the chapter will address where leaders come from, how leaders are made and what leaders do.

Leadership in history

History, politics, science, art and religion – these different dimensions that have shaped the world have also shaped our leaders. Galileo, Lorenzo de Medici, Napoleon, Nelson Mandela – all were great leaders at the time. Even though their leadership was expressed in different areas and capacities, they present common traits and attributes that are summed up by the three pillars of leadership listed in the Introduction: self-awareness, influence and execution.

Figure 1.1 shows the main groups of influences on society and leaders that have existed throughout history. Understanding history can help us to understand the future. Understanding historical models of leadership can pave the way to producing better future leaders.

Economics and the sciences

Economics and the sciences are major forces that help to shape the world. From the emergence of mathematics and physics to the Industrial Revolution or the growth of the Internet, from Adam Smith to Keynes or Porter, leaders in the fields of economics and science are models of the ability to challenge the status quo, innovate or merely to think.

Galileo, the father of modern physics, is a striking example of such leadership. Ruled against in a heresy trial initiated by the Catholic Inquisition, Galileo was forced to deny his theory of heliocentrism, which stated that the sun, not the earth, was at the centre of the universe. He had agreed with Copernicus that the sun was in the centre, with the earth revolving around it. He gave in to his inquisitors and acknowledged, as demanded by them, that a Copernican understanding of the world would be forever seen as heresy.

At the time, Galileo could not understand why they refuted his theory as Pope Urban VIII agreed with him in private. In fact, his theory had previously had both papal support and the blessing of the Inquisition, but, by mentioning the support of the Pope in his manuscript, he had made a potentially fatal political error.

The story of Galileo has it that, on his way out of the Inquisition hearing, he muttered softly ‘Eppur si muove’ (‘And yet it moves’). With these words, his life was irrevocably changed. His manuscript, his life’s work – The Dialogue Concerning the Two Chief World Systems – was banned from publication. He was placed under house arrest for the rest of his life and never published again.

Later, of course, his theory was accepted and, in time, he was honoured as the father of modern science. Mathematics and physics would become synonymous with progress.

Galileo had a vision. His vision cost him his reputation and his freedom, but he became the proud father of modern science. He was undaunted, courageous and challenged the status quo. He was a man with a vision, authentic and true to himself.

Galileo’s leadership can be summed up as having the following attributes:

• self-awareness – intelligence, risk-taking, self-confidence, courage
• understanding others and having influence – value of self-sacrifice
• vision and execution – challenging the status quo, innovating.

It is useful to note that, in hindsight, Galileo perhaps also presented some leadership shortcomings – such as an inability to understand his environment and a propensity to build alliances that ultimately led to his downfall.

History and the military

Military examples are often used to convey the basics of leadership. They are highly representative of the abilities leaders need to engage, empower and motivate others. They also testify to strategic thinking and agility in the decision making process. Napoleon Bonaparte is an emblematic example of this.

Many people would argue that, in the early days of his career, Bonaparte was a true symbol of military genius. His methods were based on the following simple yet effective elements:

• A compelling vision Bonaparte wanted to preserve the advantages of the French Revolution. His aim was to protect the country’s interests. He had established himself as a fighter for political, civil and religious freedom and a caring leader, protecting his country from all internal and external threats.
• A team established on the basis of a meritocracy As a true representative of Revolution principles, Bonaparte chose people based purely on their skills and merit – a truly innovative approach in a period characterised by privilege. He also pushed younger talent, with the average age of those in his team being 35 when, at that time, more commonly those aged 70 would have been employed in the armies of other countries.
• A decentralised operating model All those under Bonaparte were given permission to choose how to deliver on the objectives set so long as they delivered. This is what led to the military success of the battle of Marengo, where General Desaix decided of his own accord to come back to the battlefield.
• The advocacy of feedback Bonaparte’s closest generals were there to pinpoint potential mistakes and keep him honest about his strategy and behaviours.

However, by the time he proclaimed himself Emperor, he seemed to have abandoned his military inheritance and principles of meritocracy, autonomy and feedback. Then, acting as a monarch, he leaned towards ego, complacency and dictatorship.

Bonaparte was an innovative leader who ended by falling tragically. He understood the benefit of empowerment to increase motivation and results, but was not able to sustain this leadership style.

Bonaparte’s leadership can be summed up as having the following attributes:

• self-awareness – free spirit, driven
• understanding others and having influence – empowerment of his team
• vision and execution – innovative thinking, a strategist.

He also had shortcomings. He failed to remain true to himself and forgot that leadership is a never-ending journey and requires an openness to feedback.

Society and politics

Political leaders give us striking examples of the ability to influence, great communication skills and vision building.

Nelson Mandela – the first black president of South Africa – is a symbol of courage and resilience. In his book Mandela’s Way: Fifteen lessons on life, love and courage, Richard Stengel (Virgin, 2010) analyses what made Nelson Mandela such a model of leadership. He talks about Mandela’s incredible physical presence, due to his height and his warm smile. When Walter Sisulu, a famous South African anti-apartheid activist, was looking to establish a youth wing of the ANC, Mandela became the obvious candidate, just by stepping into the room. Stengel also describes how Mandela consciously chose to come to terms with his past and his history. Undoubtedly, his 27 years in prison left profound scars on him and he admitted that, at times, he felt incredibly bitter. However, as a leader, it was important for him to demonstrate that what united South Africans was greater than their divisions. Encouraging reconciliation was the only way to achieve national unity and have a chance of peace and sustainability.

Mandela always made a point of appealing to the heart, but by using knowledge and history. While in prison, he realised that, in order to unite whites and blacks, he had to understand the psyche of the Afrikaners – how they think, how they feel. He even learned how to speak Afrikaans. He also used sport to unite the nation, relying on François Pienaar, the white team captain, to win the 1995 Rugby World Cup.

According to Stengel, Mandela was also ahead of his time when it came to managing his image. He used to say, ‘Clothing makes the man: you have to embody the work you are doing’. Being one of the few black lawyers in South Africa when he was young, he would always make a point of wearing a three-piece suit in court. He wanted to convey an image of reliability and belonging to his profession.

He is also incredibly charming, almost seductive, and will make sure he knows who you are before meeting you. When asked a question with an element of choice he would always ask, ‘Why can’t we have both?’, pushing his interlocutor into new ways of thinking. He prioritised the importance of his overarching goal – reconciliation and democracy – but in a pragmatic way, leaving the rest to tactics. He used to say that the ANC’s move from non-violent to armed practices was simply a tactic to achieve democracy more quickly; the goal remained unchanged.

Finally, and most importantly, he had a tribal style of leadership, inherited from the Xhosa tradition of cattle herding. He noted that you never herd cattle from the front; you always do so from the back, identifying and gently directing the one cow that will steer the rest of the herd. He applied these techniques in meetings by not speaking much, observing and listening to everyone, then summarising everything that had been said and nudging people in the direction he wanted them to go.

He was known to acknowledge his human failings and, particularly, how scary and terrifying it could feel at times. Nonetheless, he always put on a calm front and reached inside himself to overcome any fear.

Mandela has always been a man with a mission, a symbol of resilience and persistence, an inclusive and reflective leader.

Mandela’s leadership can be summed up as having the following attributes:

• self-awareness – awareness of traditions, leading by example, humility and empathy
• understanding others and having influence – showing empathy and awareness of the importance of trust and image
• vision and execution – mission and vision, adapting communication and tactics to any situation.

Culture and religion

Culture and religious trends play an important role in any environment. They put at the forefront the notions of value and integrity, they call for change and symbolise purpose, legacy and intent.

Lorenzo de Medici, head of the Democratic Republic of Florence during the fifteenth century, is the last example of leadership in this chapter and symbolises the part culture and religion play in this role.

Also known as Lorenzo the Magnificent, he was an enigmatic and complex figure. Perceived as the natural heir of Cosimo de Medici, he was groomed for power at an early age. He grew up in the midst of political manoeuvrings, financial concerns and government as practised by his grandfather. A keen poet and artist, Lorenzo was an interesting mix of visionary and savvy statesman. He had a vision for Florence to maintain its artistic and political pre-eminence and reinforce its economic power in fifteenth-century Europe.

To honour his grandfather’s legacy, he wanted to strengthen Florence as the intellectual and artistic centre of Italy and Europe. He turned his vision into action, through indirect patronage of the arts, literature and poetry. Under his leadership, artists such as da Vinci, Ghirlandaio, Botticelli and Michelangelo flourished, later courted by Milanese and Venetian families and even France. Lorenzo was at the helm of commissioning masterpieces to both depict the pictorial splendour of Florence and build its reputation.

At the political level, he worked at establishing Florence as the peacekeeper between other nation states, specifically the papal states and the emerging power of the Kingdom of Naples. He spent most of his diplomatic life working on this.

However, he later changed course and strategy to secure additional wealth for the Republic and further develop its power. Florence’s economy was based on alum, used to degrease wool and set cotton dyes – both pillars of Florentine industry. A larger reserve of alum was discovered in the boundary between the papal states and Florentine territories and both heads of state were eager to secure this for their own benefit. Despite the mining community rising up against Florence with papal support, Lorenzo decided to suppress the rebellion and made the mine Florentine. This had a disastrous impact on Florence’s diplomatic life.

Lorenzo also overlooked the dependence of the Medici bank on papal contracts and the loss of favours that resulted formed the first blow to the Medici empire. Lorenzo then went into a downward spiral. Next, he faced the conspiracy of his most prominent rival, the Pazzi family. The Pazzi plotted to take over the Republic by assassinating the Medici brothers. The conspiracy partially failed, though led to the death of Lorenzo’s brother Giuliano. In an emotionally charged reaction, Lorenzo brutally and publicly punished the Pazzi family by tossing the head conspirator from the window of the Palazzo Vecchio.

Unwittingly, he once again triggered a papal outburst. For the first time in the history of Florence, Lorenzo faced the threat of excommunication for the whole city, shortly followed by the risk of a military takeover by Ferdinand de Naples orchestrated by the papal state. However, Lorenzo’s strategic genius prevailed. He was proactive and met with Ferdinand to personally surrender and bring peace to the city.

Doubtful accounting practices and rumours of the theft of funds from Florence’s treasuries, paired with the constant condemnations of the Italian Dominican friar Savonarola, who was violently opposed to the ideals of the Renaissance, further weakened and ultimately destroyed Lorenzo’s reputation as the master of the Republic and the master of Florence.

However, history prevailed and the artists he supported are still considered to be geniuses. For this reason, Lorenzo is highly regarded today for his patronage of the arts and humanities.

Lorenzo de Medici was a man of many talents, aware of his cultural inheritance but driven to build his own legacy. However, he was also a man who failed to fully understand his own impact on people.

The Medici leadership can be summed up as having the following attributes:

• self-awareness – awareness of his family history and a willingness to perpetuate it, powerful, emotional
• understanding others and having influence – able to create emotional bonds with artists and read political situations, highly credible in his position
• vision and execution – paired innovative thinking with in-the-moment strategic thinking, player of long-term games who created things of intrinsic value.

Lorenzo’s shortcomings were that he failed to assess or understand the impact of his decisions on the bigger picture and overlooked some important stakeholders.

All of the examples above put leadership in a wide political, social and cultural context. What we can also see is that for these leaders to be successful, they each displayed self-awareness, an understanding of their environment and the ability to deliver on their vision.

The pathways to leadership

Leadership is, above all, driven by context and situation. It may emerge from very different sets of circumstances. It might be a birthright and so the issue of legacy would be at the forefront of such a leader’s thinking. It could be rooted in an act of creation, the leadership journey having started with an idea that turned into an empire and so innovation would lie at the heart of such a leader’s thinking. Finally, it might be the result of a lifelong journey of climbing up the ranks, constantly challenging the status quo and pushing for transformation.

From just these three alternative pathways it can be seen how very different types of leaders would result.

Leadership does not appear out of thin air. It is never exercised in a vacuum. The very essence of leadership is contextual, event-driven and people-driven. Therefore, exploring for what purpose and in what circumstances someone can become a leader is critical to defining leadership.

Although there are multiple paths people can take to become leaders, they fall into three main categories:

• creation and innovation
• elevation and transformation
• inheritance and legacy.

These mirror the natural lifecycle of any organisation.

Creation and innovation

This category includes visionary or entrepreneurial leaders. Their rise usually relates to the act of creating an organisation as a result of bringing something new to the world or enhancing something that already exists.

These leaders are usually motivated by a vision or the importance of embedding creativity and innovation in their workforce. They also often allude to leadership being a balancing act between authority and delegation.

After the creation and innovation stage, such leaders stress the importance of letting go of control and reflecting on the timing of their start-ups becoming corporations. Then, the need for better processes and governance becomes important.

Steve Jobs, Mark Zuckerberg, Henry Ford and Charles Merrill are good examples of leaders who have taken this route to leadership.

Elevation and transformation

This pathway involves relatively mature, organised companies producing leaders.

These leaders, having been grown from within, are very interested in sustainability and balancing consistency and change.

The questions that concern them include, ‘How do I maintain the established corporate culture while driving change? What is the best path to both protect and enhanced value creation? What is the best strategy to achieve this evolution or revolution?’ Also, the search for excellence is usually highly present in these leaders’ minds. It is paired with a more fundamental question of, ‘How do I balance an increased need for discipline with the imperative to constantly foster innovative skills?’

Individuals such as Jack Welch, the retired former chairman of General Electric, and Peter Voser, Chief Executive Officer of Royal Dutch Shell – both products of their respective organisations – come to mind as examples of this type of leader.

Inheritance and legacy

This is the ultimate ‘mapped route’ to leadership as, regardless of your entry point or current position in an organisation, you know that you will be given the highest roles or functions.

In such cases, ideas surrounding legacy, risk-taking, legitimacy or choice are the defining concerns of those on this type of leadership journey.

Alexandre de Rothschild and James Murdoch are striking examples of those who have taken this path to leadership.

Figure 1.2 summarises visually the three main categories of pathways to corporate leadership discussed above. Next, how these different pathways shape leadership styles is explored via two case studies.

These case studies help to shed different lights on leadership, taking into account how it was acquired. However, just as with the examples from history that we looked at, at the beginning of this chapter, these leaders’ successes can be seen to lie in them having demonstrated significant levels of self-awareness, understanding of their environments and the ability to deliver their clear visions.

What leaders do

Most leadership literature makes a clear distinction between leaders and managers. Leaders should solely invest their time in setting the vision or direction for the organisation. They should put their efforts into aligning resources to facilitate delivery of that vision and try to be active role models to inspire and motivate their workforces. Finally, they should have the ability to handle a crisis and have at heart legacy and passing on to those who will follow.

Leadership experts have highlighted that leaders think in terms of actions, are not passive, want to shape goals and not react to them, and have the ability to alter people’s moods, expectations and perceptions about a particular situation.

Harvard Business School scholar John Kotter extended and deepened these insights, stating that leaders push for change and are there to help organisations embrace or at least cope with change. Leaders, he says, do three main things:

• Set direction This includes the development of strategies that will support the direction chosen and, ultimately, enable delivery of the vision. This requires a lot of observation, the leader needing to stay attuned to the environment, looking for trends, patterns and pain points. Leaders, therefore, decide what should happen, partially explain why it should happen and clearly articulate how to get there. They are not interested in the mundane details, only the broad, high-level picture. The direction might be rooted in innovation, but it doesn’t have to be. It must, though, be grounded and serve the interests of the stakeholders and, above all, it has to be realistic in order to effectively harness resources and energy.
• Align people This means getting people’s buy-in. Leaders must first establish their legitimacy, then invest time in communicating a clear and powerful vision. This comes about by first building credibility and demonstrating that they can be trusted. It comes through diverse experiences, giving assignments that stretch them, mentoring and emulating role models. Only then can they communicate at all levels, inside and outside the organisation as well as across functional boundaries. Ultimately, leaders are looking to create an impact and a tipping point for their vision to come to life. To achieve success, leaders develop a deep understanding of stakeholders and spend time assessing not only how to leverage anyone who can help convey their message or embrace their vision but also, more importantly, seek to manage or influence those who can block change and progress. Finally, leaders align people by empowering them. Once the vision has become clear and compelling, they draw on the power of collective vision while mitigating the risk of divergence and stalling.
• Motivate and inspire people This is a critical part of any leader’s role. To have people deliver, leaders need to be in tune with their motivations and their needs. They also need to spend time not only connecting with people but also influencing them to move forward, praising and recognising behaviours, results and progress made. Thus, leaders need to energise people, be able to call on their emotions and their need for recognition, to have an impact and achieve. They spend time involving others and asking for feedback and ideas. In modern organisations, where multiple leaders can have multiple visions, leaders also need to spend time developing and maintaining networks. This allows the coordination of visions to create even greater value.

The above actions need to be complemented by the following:

• Be good in a crisis It is usually in times of crisis that leadership strength is most clearly revealed. Consider the actions of John F. Kennedy during the Cuban Missile crisis in 1962 or those of George Bush at the time of 9/11 in the USA. Everything depends on how well and how fast leaders react, reach out to necessary stakeholders and assess risks and consequences. Leaders need to be confident in their own ability to handle anything that may be thrown at them. To adapt the words of Kipling, if you can keep your head when all about you are losing theirs and blaming it on you, you’ll be a leader.
• Leave a legacy The greatest leader will always keep in mind how important it is to create a culture of leadership – not only as a guarantee of sustainability in an ever-changing environment – but also to serve as a mentor and potential role model. Some of a leader’s time must be dedicated to identifying young talented people, nurturing and stretching them. Leaders must accept that they will be challenged by them and engage with these challenges because it is the only way to stay current. Legacy is the last duty of leaders. As the former CEO and Chairman of Solvay once said, ‘In the tenure of one’s career, one’s motivation changes. First you work mostly for the money and recognition, then you work to achieve power and finally you want to leave a trace in history.’ Jack Welch is a resounding example of the desire to leave a legacy.

Summary

People become leaders in many different ways and their leadership styles can be shaped by a variety of different influences. What leaders do has been analysed in depth over time. Looking at examples of great leaders from the past can also provide useful insights into what you should be focusing on when developing your leadership skills.

Contrary to the myth of people being natural born leaders, the skill set required can be developed by working on the following three key attributes:

• build your self-awareness to get a sense of who you are
• understand the environment and influence others to get a sense of what they need and want
• develop a vision and relentlessly work to execute it.

Here’s a reminder of some of the key points from this chapter:

• leadership is deeply influenced by the environment, so proactively taking the measure of your environment is vital in any leadership journey
• the different pathways to leadership shape different types of leaders
• leaders have well-defined roles and responsibilities, the best definition for leadership being that it is a mix of attributes (embedded in the very core of an individual) and actions (which are tangible and identifiable)
• you can develop your leadership skills or explore your leadership potential by looking inside yourself, around you and making a point of setting things in motion
• leadership is an exciting and challenging journey that requires you to invest time in analysing and questioning yourself and the world around you, dedication – as it is never ending – and resilience – as it requires you to be able to evolve and step out of your comfort zone.

¹ See http://news.stanford.edu/news/2005/june15/jobs-061505.html