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May 2016 / STRATEGIC FINANCE / 17
So what is leadership
character, and how do we
build it? The dictionary
definition of character is
“the mental and moral
qualities distinctive to an
individual.” Notice that the
definition didn’t talk about
technical skills. It instead
focuses on the ethical
qualities that can provide
guidance and a sense of
direction when things
don’t look so promising.
Whether heading a team, a
department, a company, or,
on a larger scale, a country,
leaders share some key
attributes. The principal
traits of leadership—
integrity, shared vision,
emotional intelligence,
positive outlook, authen-
ticity, confidence, forward
focus, and listening
ability—converge at the
core as character.
Integrity. Integrity is
the single most important
trait for building character.
It’s the tone at the top that
is paramount in an organi-
zation. In the 2016 Edel-
man Trust Barometer
global survey, which
included 33,000 respon-
dents around the world,
only 27% of leaders were
seen as behaving in open
and transparent ways. In
the 2013 report of the same
population, 82% of work-
ers around the world
reported that they didn’t
trust their bosses to tell
the truth. In “An Explor-
atory Study of Employee
Silence: Issues that
Employees Don’t Commu-
nicate Upward and Why,”
a study by the Institute for
Public Relations, 85% of
employees admitted to
withholding from their
bosses concerns about
critical issues. The data is
disturbing. In order to
strengthen trust and
encourage loyalty from
LEADERSHIP
LEADWITHCHARACTER
The qualities of a leader go well beyond technical competence
to eight key tenets of character. BY JYOTI PANDEY
I
N AN ORGANIZATIONAL STRUCTURE, the word
“leadership” is often used very loosely.
A good manager or team lead isn’t
necessarily a born leader, and there is
a fine line between executive presence
and leadership. Executive presence
relates to an individual’s command,
presence, confidence, subject-matter
expertise, and technical competency. An excep-
tional leader, on the other hand, is someone who
inspires others to be their best, has great charac-
ter, and helps build the same in everyone else. A
leader isn’t driven by job title but by company
goals and vision. As Donald H. McGannon, who
was president of both the Westinghouse Broad-
casting Corporation and the National Urban
League, said, “Leadership is action, not position.”
their teams, leaders need
to lead with integrity and
work toward an atmos-
phere of transparency.
Shared vision. Manag-
ing people is an art. If
there’s no buy-in to the
vision, the team won’t be
inspired. The vision should
be such that it helps
strengthen the team. While
pleasing everyone isn’t
possible, an objective that
has been considered care-
fully for the benefit of the
majority is easier to
develop.
Emotional intelligence.
Nothing compares to keen
emotional intelligence. Its
importance can’t be
overemphasized in leading
a team. People face many
biases, regardless of their
gender or race. That mostly
happens due to our social
conditioning. Emotional
intelligence helps us
appreciate the unique abil-
ities and differences that
people have and connect
with them more easily.
That ultimately helps make
organizations more inclu-
sive and diverse. Leaders
need to foster an environ-
ment of cultural sensitivity
and global outlook to make
change happen.
In its research with a
random sample of 3,871
executives selected from a
database of more than
20,000 executives world-
wide, consulting firm
Hay/McBer identified six
distinct leadership styles,
each springing from differ-
ent components of emo-
tional intelligence. Their
findings indicated that
each style seems to have a
direct and unique impact
on the overall business
environment, which in
turn can affect the bottom
line in a positive way.
For example, Pepsi
found that executives with
high emotional intelli-
gence, or EQ, generated
10% more productivity,
had 87% less turnover,
brought $3.75 million more
value to the company, and
increased ROI by 1,000%.
L’Oréal found that sales-
people with a high EQ sold
$2.5 million more than
others. And when Sheraton
decided to incorporate an
EQ initiative, its market
share grew by 24%.
Positive outlook. Dur-
ing tough times, a leader’s
positive outlook helps
rebuild dissipating confi-
dence. You may have seen
this in a professional sport-
ing event. When it seems
that a team may lose, the
coach steps in to help boost
players’ confidence and
encourages the team to
keep up the fight. That pos-
itivity is contagious, and
the coach’s role is instru-
mental in keeping the
energy alive. A consistently
positive, optimistic, and
encouraging culture can
teach people that there’s a
better way to be in the
world.
Authenticity. Among
the leadership styles that a
business professional can
choose to employ, an
authentic approach holds
considerable power. As part
of the modern manage-
ment science, authentic
leadership has found high
levels of acceptance since
the publication of Bill
George’s 2003 book,
Authentic Leadership. A key
tenet in George’s model is
that company leaders are
focused on long-term
shareholder value, not just
in beating quarterly esti-
mates. That helps to foster
a nurturing environment
and to build long-lasting
commitment and loyalty.
Confidence. We all have
fears. People often fear
rejection more than they
fear failure. Fear of failure is
in some ways quite a posi-
tive thing. Fear can motivate
people to take strategic steps
to fix what might break. It
helps us look inward. That
said, fear of rejection can
make us lose control of our
vision. Leaders don’t fear
rejection. To become a good
leader, learn to feel confi-
dent in your abilities, and
don’t judge yourself through
someone else’s lens. There
is power in originality and
authenticity.
Forward focus. Influ-
ential leaders are opti-
mistic about the future,
and, though it may sound
counterintuitive to some,
leaders speak in the pres-
ent or future tense. SpaceX
and Tesla founder Elon
Musk is famous for dis-
cussing his company vision
in the future tense. Leaders
rarely wallow in the past.
Language stuck in the past
demonstrates inflexibility
and an inability to refocus
and adjust on a case-by-
case basis.
Listening ability. A
common complaint about
executive leadership is the
failure to listen to others’
voices. Leadership is a
two-way street. In order to
lead effectively, one must
listen, communicate, per-
suade, and collaborate. As
General Motors Chairman
and CEO Mary Barra said,
“Ideas do not have a hier-
archy. Good ideas can come
from anywhere.” We all
have the power to influ-
ence and lead. SF
Jyoti Pandey is the senior
management consultant in global
compliance and strategy solutions
at Integrity Leadership Partners,
LLC, and a member of IMA’s Indi-
anapolis Chapter. You can reach
her at jsaum09@gmail.com.
LEADERSHIP
18 / STRATEGIC FINANCE / May 2016
IMA LEADERSHIP
ACADEMY
The IMA® Leadership
Academy provides leadership
opportunities for all members.
From leadership assessment
to leadership courses offered
in person as well as through
WebEx to participation
opportunities in mentoring, be
it reverse or traditional, the
IMA Leadership Academy can
help you meet your leadership
goals and improve your
leadership skills. For more
information, please visit the
Leadership Academy website
at www.imanet.org/programs_
events/ima_leadership_
academy.
SF
ADVICE

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05_2016_leadership

  • 1. May 2016 / STRATEGIC FINANCE / 17 So what is leadership character, and how do we build it? The dictionary definition of character is “the mental and moral qualities distinctive to an individual.” Notice that the definition didn’t talk about technical skills. It instead focuses on the ethical qualities that can provide guidance and a sense of direction when things don’t look so promising. Whether heading a team, a department, a company, or, on a larger scale, a country, leaders share some key attributes. The principal traits of leadership— integrity, shared vision, emotional intelligence, positive outlook, authen- ticity, confidence, forward focus, and listening ability—converge at the core as character. Integrity. Integrity is the single most important trait for building character. It’s the tone at the top that is paramount in an organi- zation. In the 2016 Edel- man Trust Barometer global survey, which included 33,000 respon- dents around the world, only 27% of leaders were seen as behaving in open and transparent ways. In the 2013 report of the same population, 82% of work- ers around the world reported that they didn’t trust their bosses to tell the truth. In “An Explor- atory Study of Employee Silence: Issues that Employees Don’t Commu- nicate Upward and Why,” a study by the Institute for Public Relations, 85% of employees admitted to withholding from their bosses concerns about critical issues. The data is disturbing. In order to strengthen trust and encourage loyalty from LEADERSHIP LEADWITHCHARACTER The qualities of a leader go well beyond technical competence to eight key tenets of character. BY JYOTI PANDEY I N AN ORGANIZATIONAL STRUCTURE, the word “leadership” is often used very loosely. A good manager or team lead isn’t necessarily a born leader, and there is a fine line between executive presence and leadership. Executive presence relates to an individual’s command, presence, confidence, subject-matter expertise, and technical competency. An excep- tional leader, on the other hand, is someone who inspires others to be their best, has great charac- ter, and helps build the same in everyone else. A leader isn’t driven by job title but by company goals and vision. As Donald H. McGannon, who was president of both the Westinghouse Broad- casting Corporation and the National Urban League, said, “Leadership is action, not position.”
  • 2. their teams, leaders need to lead with integrity and work toward an atmos- phere of transparency. Shared vision. Manag- ing people is an art. If there’s no buy-in to the vision, the team won’t be inspired. The vision should be such that it helps strengthen the team. While pleasing everyone isn’t possible, an objective that has been considered care- fully for the benefit of the majority is easier to develop. Emotional intelligence. Nothing compares to keen emotional intelligence. Its importance can’t be overemphasized in leading a team. People face many biases, regardless of their gender or race. That mostly happens due to our social conditioning. Emotional intelligence helps us appreciate the unique abil- ities and differences that people have and connect with them more easily. That ultimately helps make organizations more inclu- sive and diverse. Leaders need to foster an environ- ment of cultural sensitivity and global outlook to make change happen. In its research with a random sample of 3,871 executives selected from a database of more than 20,000 executives world- wide, consulting firm Hay/McBer identified six distinct leadership styles, each springing from differ- ent components of emo- tional intelligence. Their findings indicated that each style seems to have a direct and unique impact on the overall business environment, which in turn can affect the bottom line in a positive way. For example, Pepsi found that executives with high emotional intelli- gence, or EQ, generated 10% more productivity, had 87% less turnover, brought $3.75 million more value to the company, and increased ROI by 1,000%. L’Oréal found that sales- people with a high EQ sold $2.5 million more than others. And when Sheraton decided to incorporate an EQ initiative, its market share grew by 24%. Positive outlook. Dur- ing tough times, a leader’s positive outlook helps rebuild dissipating confi- dence. You may have seen this in a professional sport- ing event. When it seems that a team may lose, the coach steps in to help boost players’ confidence and encourages the team to keep up the fight. That pos- itivity is contagious, and the coach’s role is instru- mental in keeping the energy alive. A consistently positive, optimistic, and encouraging culture can teach people that there’s a better way to be in the world. Authenticity. Among the leadership styles that a business professional can choose to employ, an authentic approach holds considerable power. As part of the modern manage- ment science, authentic leadership has found high levels of acceptance since the publication of Bill George’s 2003 book, Authentic Leadership. A key tenet in George’s model is that company leaders are focused on long-term shareholder value, not just in beating quarterly esti- mates. That helps to foster a nurturing environment and to build long-lasting commitment and loyalty. Confidence. We all have fears. People often fear rejection more than they fear failure. Fear of failure is in some ways quite a posi- tive thing. Fear can motivate people to take strategic steps to fix what might break. It helps us look inward. That said, fear of rejection can make us lose control of our vision. Leaders don’t fear rejection. To become a good leader, learn to feel confi- dent in your abilities, and don’t judge yourself through someone else’s lens. There is power in originality and authenticity. Forward focus. Influ- ential leaders are opti- mistic about the future, and, though it may sound counterintuitive to some, leaders speak in the pres- ent or future tense. SpaceX and Tesla founder Elon Musk is famous for dis- cussing his company vision in the future tense. Leaders rarely wallow in the past. Language stuck in the past demonstrates inflexibility and an inability to refocus and adjust on a case-by- case basis. Listening ability. A common complaint about executive leadership is the failure to listen to others’ voices. Leadership is a two-way street. In order to lead effectively, one must listen, communicate, per- suade, and collaborate. As General Motors Chairman and CEO Mary Barra said, “Ideas do not have a hier- archy. Good ideas can come from anywhere.” We all have the power to influ- ence and lead. SF Jyoti Pandey is the senior management consultant in global compliance and strategy solutions at Integrity Leadership Partners, LLC, and a member of IMA’s Indi- anapolis Chapter. You can reach her at jsaum09@gmail.com. LEADERSHIP 18 / STRATEGIC FINANCE / May 2016 IMA LEADERSHIP ACADEMY The IMA® Leadership Academy provides leadership opportunities for all members. From leadership assessment to leadership courses offered in person as well as through WebEx to participation opportunities in mentoring, be it reverse or traditional, the IMA Leadership Academy can help you meet your leadership goals and improve your leadership skills. For more information, please visit the Leadership Academy website at www.imanet.org/programs_ events/ima_leadership_ academy. SF ADVICE