Forget about being a manager; it's time to become a leader, says Nigel Lynn.
Once upon a time, it was enough for an ambitious finance professional, eager to move swiftly up the career ladder, to learn the skills of management. But somewhere over the past 10 to 15 years, being a good manager stopped being enough. Now if you really want to reach the boardroom or the partnership table, you need to become a good leader.
But isn't this just the same thing dressed up under a different name? At the risk of sounding like a politician, yes and no. Obviously, there are a number of common elements to being a leader and being a manager, such as organisational ability, planning skills and achieving objectives. However, the key extra element that resides in the concept of leadership is perhaps best highlighted in the dictionary definition which, among other things, describes a leader as "someone who guides or inspires others". At its best, leadership can achieve much more then simple management. In a survey of 50 global companies, for example, the research firm ISR found a direct link between effective leadership and commercial performance. In organisations where their superiors received an "average" leadership rating from employees sales improved over the course of a year by just 6 per cent. But in organisations where they were rated "highly", sales rose by more than 10 per cent. Why? Perhaps because, at the noted historian, Correlli Barnett, puts it, leadership is "a psychological force that has nothing to do with morals or good character or even intelligence: nothing to do with ideals or idealism. It is a matter of relative will powers, a basic connection between one animal and the rest of the herd. Leadership is not imposed like authority. It is welcomed and wanted by the led."
So, given how important leadership qualities are, do you have to be born with them like the ability to sing well or paint great pictures, or can they become learned? Some of the world's top business schools have set up leadership departments, which obviously suggests that you can learn how to lead. But the real picture is more ambiguous. According to Professor David Sims of the Cass Business School in London: "We have come to the conclusion that the idea of the "born leader" does not stand up; born to lead what, when and with whom? The idea of leaders being "made" is equally romantic - nobody knows how to "make a leader."
Perhaps the best way to develop leadership skills is to recognise your own inherent abilities and then hone them in the "front line" of the workplace. And the most efficient and effective way of doing this is to watch out for the successes and failures of those around you. So here's my basic checklist of what makes a good leader:
The ability to get your message across in a clear, effective and emotive way can take you a long way. Just look at the example of Ronald Reagan if you want to see how far!
Clarity People like to know what is expected of them and what objectives they and the wider organisation are aiming for.
Decision Good leaders don't vacillate. Be clear about what you think and where you are going.
Adaptability At the same time you need to be flexible enough to react to new opportunities. As John Lennon said "Life is what happens to you while you're busy making plans."
Approachability You have to be approachable and be seen to be part of the team. An open door policy will encourage your team to communicate openly and honestly with you at all times, which will make management and direction a lot easier.
Sensitivity Make sure that you know if your people are not happy. Try to be sensitive to their needs and expectations. Anticipate their moves and act accordingly.
Vision A certain amount of vision and the ability to see the bigger picture is vital for any successful leader. You have to be able to identify the problems of tomorrow today.
Example Expect from others what you expect from yourself. Leaders belong at the front, not at the back.
NQ Magazine Autumn 2007