What makes a good leader? | Issue #20
In this Bulletin, I use the present Conservative leadership contest to ask: "what makes a good leader?", take a look at inflation and recommend a podcast.
Welcome to the latest edition of The Leadership Bulletin.
Leadership is back in the headlines - in this case, the particular question of the Conservative Party leadership and who will be our next Prime Minister.
It’s an interesting time to ask: what do we look for in a leader? That’s where we begin this week’s Bulletin.
IN FOCUS: WHAT MAKES A GOOD LEADER?
Conservative members are currently engaged in selecting a new Prime Minister. But what should they be looking for in a new leader? Below, I share five aspects of leadership that I think are particularly important.
None of these just apply to political leaders - in fact, they’re essential for almost any leader in almost any organisation. So as you read through them, ask yourself: do the leaders you follow demonstrate these five qualities? Do you? And which of them would you like to get better at?
Competence
At its most basic, leaders need to be competent in their roles. This is essential if they are to command the confidence and respect of those around them. I suspect we have all worked for people where we thought “I could do this job better than them” - and I also suspect they were not particularly successful working relationships. So you are looking for someone with the intelligence and the all-round competence to meet the requirements of the job.
Character
With any leader, you want to know that when tough choices come - when faced with an ethical dilemma, or when they’re trading off short-term and longer-term interests - that they have the character to make the right decision. And not just the right decision for themselves, but for their team, their organisation and, in this case, the entire country. You will have often heard the Peter Drucker quotation: “Culture eats strategy for breakfast.” I believe it’s true, and the culture of an organisation comes direct from the character of its leaders.
Empowering
Just as a senior leader of an organisation has heads of divisions to appoint, empower and support to get things done in their organisations, so a Prime Minister must bring together a talented Cabinet to run the government departments. All leaders need to empower others to be their best, to contribute their skills and to help you achieve your vision and mission for the organisation. Leadership is never about trying to do it all yourself, but empowering others to achieve together more than you ever could alone.
Forward looking
A great leader looks to the future. They have a vision of where they want to get to, how that meets their mission as an organisation, and also a strategy of how to get there. Business or organisation goals can be few and simple - a certain number of customers or territories served, a particular profitability ratio, etc - but it’s much harder for countries. In my view, you always want a leader with a sense of how things will be better if they are chosen and succeed in their goals. After all, how else are you to judge who will be the best to lead? And how could you otherwise hold them accountable for it?
Communicator
Finally, you have to be able to communicate. This is arguably more important for a political leader - with regular speeches, statements and questions to be answered in front of millions of electors they are ultimately accountable to - than in most corporate roles. But for any leader, having a vision on a piece of paper, or a culture stated in an internal document, means nothing if it isn’t communicated out to your team and your wider market. You have to always be communicating.
There are, of course, other qualities a leader must embody, but I think these are five of the most important. In future bulletins, I’ll be looking at how you can assess and develop your skills against these criteria and others.
YOU KNOW INFLATION IS BITING WHEN…
… McDonald’s raises the price of a Cheeseburger. McDonald’s have announced their famous 99p cheeseburgers will be going up to £1.19. What’s perhaps more staggering is that the Cheeseburger hasn’t gone up in price in 14 years. It reminds me of the dilemma of (and why I don’t like) fixed price businesses, for example where all items cost £1. In these businesses, you have three options to remain competitive: (1) smaller or lower quality items to preserve your margin; (2) a falling profit margin; and (3) constant productivity gains for which you don’t see any real benefit. To me, it just seems like a crazy business model. After all, no business can outrun rising costs forever, not even McDonald’s.
A PODCAST RECOMMENDATION.
In a change from one of my usual book recommendations, here’s a podcast that’s worth your time: The Diary of a CEO episode with Malcolm Gladwell, hosted by the newest Dragon in the Den, Steven Bartlett. Gladwell is one of the biggest names in long-form journalism, writing for the New Yorker on topics as diverse as how to stop school shootings and why there are so many types of mustard (but so few varieties of ketchup). Among the most interesting comments he makes in this podcast are on the downsides of working from home as an experience of life. Click here to watch, or find it via your podcast supplier of choice.