Showing posts with label William Cohan. Show all posts
Showing posts with label William Cohan. Show all posts

Thursday, March 23, 2017

How Organizational Leadership Destroys Itself


In the past several years, there have been numerous organizations that have seen failure because of their leaders and their leadership theory. I am currently reading William Cohan’s book House of Cards that works through the financial crisis of the early 2000’s. Cohan focuses on Bear Stearns as one of the financial institutes that failed during the financial crisis. The noticeable piece about the Bear Stearns failure was as much about the leadership of the financial institute as anything else. What is more amazing is the type of leadership style that contributed to the failure is still at work in many organizations. Because of this faulty leadership style, many organizations have reached an unhealthy state.

There are three pitfalls that leaders and organizations model that can lead to a failure of the institute. The first two are personal decisions that are made by individuals in their attempt to climb up the ladder to lead. The third is an organizational decision about leadership promotion that can lead to possible failure in a department, unit, group, or entire organization.

Me vs. We
When leadership begins on the foundation of “Me/Self” rather than “We/Team”, the opportunity for true success is small. This is not to say success defined in some manner will not happen. However, it will not be a success that leads to the total growth of an organization and its team members.

Individuals that are leaders by position who think only of themselves can cause division and lack of value in their team. The idea of leadership for them is to highlight their achievements and skills while neglecting or taking advantage of the team members. They want the limelight and believe only they deserve it.

As stated before, this can be true, but it does not provide for a healthy organization. A true leader will understand that “Me” is actually “We”. This means the entire team and not only those they favor. The breadth of knowledge, ideas, and skills of an entire team is a valuable asset for a leader. The opportunity to harness this and use it to bring about organizational success that everyone can feel a part is beneficial.




Positional Privilege
Besides the leader that operates with only their self in mind, there is also the leader that leads because of the privileges that surround the position. I have been in organizations that leaders, whether they are true leaders or not, take advantage of their position. This can be a little difficult but let me explain.

I often talk about the need to have a healthy life balance of work, family, and relaxation. However, as a leader you need to know when the appropriate time to take time off and when not to take it off. As a leader, the participation in organizational events, meetings, and conferences is important to your entire team. However, if you decide to take the time off during one of these scheduled occasions, to your staff, it can indicate your lack of support for the event or that you do not care about it. On the other hand, I have a good friend that does extensive traveling returning home late at night but will still be up and available for early morning meetings. Even though traveling is a part of the position, the commitment to the team he leads is more important than the positional privilege of taking time off.


Competency vs. Leadership
A third area of concern is an organization that promotes individuals based solely on competency and length of service into leadership positions. Let me state first, that any true leader does need to have competency in order to lead at any level of an organization. However, that is not the primary requirement for leadership. If an individual knows how a specific program works but does not know how that interfaces with processes or its role in strategic planning, that can cause an issue for an organization. Additionally, the knowledge of a program does not offset the inability to lead, motivate, or grow people that they are set to lead.

I think that any strong, successful leader is continually learning and gaining knowledge. The difference is not to gain control or move up in company but to better serve the company. The competency that a leader strives for is to provide growth for everyone, not just themselves. The individual that seeks knowledge for themselves becomes a “Me” leader and not a “We” leader and is usually wanting to move up into leadership for power and privilege not to serve others.


Your Choice
The world of business, higher education, government, and many other industries look for individuals who will lead them to success. However, that does not mean they leave behind the values of team growth, valuing individuals, and serving others. It now requires those items and many more. The questions now become; how is your organization being led? How are you leading? Do you do it for yourself and the privileges associated with the position? Do you desire to assist others to succeed and in it see the organization grow? That decision is up to each individual and through it success and growth can be experienced. If not, your organization could be the next Bear Stearns.