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August, 1996

How Many Leaders Does a Company Need?

IN THE MILITARY, soldiers follow leaders into battle -- not so much because ordered to do so, but more importantly because of the mission their leaders communicate, the example they set and the sense of "duty, honor, country" they instill. Leaders inspire courage in others and, in return, show concern for all who put their trust in them. On the battlefield, the leader goes first. In the mess line, the leader eats last.

Companies, too, need leaders...and today may need them more than ever. In fact, a recent survey of executive search firms throughout the U.S. revealed leadership to be the most sought-after trait this year among senior executives, for the first time in the history of the annual survey.\

This new, or perhaps renewed, focus on leadership reflects a Great Awakening throughout the corporate world that employees are no different from soldiers: both need to believe that the hill must be taken, the battle won and the enemy defeated. Shell-shocked from years of downsizing and strategic repositioning, corporate employees are less and less likely to put their faith in the latest corporate edict simply because it is there. Instead, they seek strong leaders in whom they can put their trust.

Traits of Corporate Leaders

Leadership of course is earned, not conferred. Thus, granting someone the title of President or Manager or First-Line Supervisor does not make them a leader.

In a corporate setting, leaders are those who are able to develop and articulate a vision of the future to which others will subscribe. By being able to describe the destination, they create faith in the path to be taken. They also tend to make bold moves, as opposed to cautious ones, and to act decisively.

While most leaders are politically astute enough to be good team players when required, they are not good followers by nature. They often question established policies and procedures, seeking a better way. On standard personality tests, they show well above-average scores for dominance and risk-taking and are at least moderately extroverted, with sound communications skills. Others regard them as tough but fair, demanding but compassionate. Also, good leaders create enduring allegiances.

Organizations desiring a healthy dose of leadership should recall that proverbial Middle Eastern curse, "May you get what you wish."

Over and over again, one can read in the business pages of the company long ruled by an aging CEO, who brings in a strong Number Two to revitalize operations and someday take over the reins. Over and over again, one reads six months later of Number Two's summary firing by the CEO.

Whether in the corporate boardroom or on the factory floor, leadership can only be as effective as the organization permits it to be. If all decisions flow from the Chairman's office, if all proposals must be reviewed by committee, if established polices and procedures are older than the Ten Commandments, then strong new leadership will encounter nothing but frustration. And to the degree a leader creates a loyal following, the followers will become equally frustrated when -- not if -- the leader departs.

Opportunities for Leadership

In the overall scheme of things, few companies are total examples of either 19th-century repression or 21st-century enlightenment. Most are somewhere in between, tugged simultaneously in the directions of change and the status quo.

As in the tale of the three-legged pig who the farmer said was too good to be eaten all at once, companies may want to expand their supply of leaders a little bit at a time. The seeding of an organization with a few key leaders may be a lot more palatable than a wholesale upheaval of the management ranks.

Accordingly, the company or business unit wanting to expand its leadership supply may want to consider the selective introduction of manager-leaders in those functions where:

Great change is required. (Leaders by definition are change agents and can inspire others to follow a new path or rise to new heights.)

A severe morale or productivity problem exists. (As in medicine, the gravest maladies require the most drastic remedies. Look for new brooms who can sweep away bad habits and attitudes.)

The CEO would like an on-site proxy for an important program. (Leaders manage by example. If the organization is in the midst of significant cultural redirection -- e.g., an important quality or workplace-improvement initiative -- a committed new leader can convince other workers that "this time it's for real.") People are performing at less than their full potential. (Good leaders bring out the best in others and are not threatened by personal initiative and creativity. Let them unlock your employees' potential.)

Too many leaders, of course, can spoil the broth.

Strategically placed leaders, on the other hand, allow a company to manage change -- rather than watch it run rampant. As the organization comes to accept a faster and faster rate of change, and as other managers come to emulate the leadership skills they observe, then leadership can spread naturally and effectively.

Where Does One Find Leaders?

For every leader, there are 100 followers -- or more. And in its 37 years of executive search, Sanford Rose Associates has yet to see leadership leap off the pages of a resume. The better-written ones often contain such verbs as "managed," "directed" and "supervised." How often, though, does one see such verbs as "led" and "motivated"?

Perhaps you may be fortunate enough to stumble across the person who writes: "Several managers in my company were able to part the Red Sea. I, however, convinced others to follow me across it."

Otherwise, you may appreciate the detective work of a savvy headhunter. Once he or she has verified that you truly want and need a leader to fill a critical position opening, the skilled search consultant -- armed with in-depth knowledge of both your company and its competitors -- will do the kind of benchmarking that identifies the "best of the best."

Say, for example, that your company seeks a Chief Technology Officer who can transform the MIS Department from a passive provider of largely meaningless data into a dynamic organization that anticipates management's needs for practical and timely information, speeds internal communication and identifies new customers and markets.

While there are a myriad employed and unemployed MIS vice presidents, directors and managers, many of them unfortunately have passively managed the kind of sleepy department your company may be trying to transform. (Their resumes, however, are bursting with the acronyms of every piece of hardware, software and programming code they have ever used or read about.) What the executive recruiter knows is how to pinpoint the goal-oriented leader who not only has earned a reputation as an information technology pioneer, but is also hungry for the kind of challenge you have to offer.

Albert Einstein once wrote that people too often confuse the perfection of means with the achievement of goals.

Therefore, when you need to implement the company's policies and procedures, hire a manager. But when you need to take the organization to a new plateau, find a leader.


If you work in a large, multi-unit organization, others – including the corporate Human Resources and MIS Departments – might appreciate copies of this issue. These can be ordered from your Sanford Rose Associates search consultant.

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©1999 SRA International, Inc. All rights reserved, including electronic reproduction or alteration. This SRA Update is published for the clients of Sanford Rose Associates.