By Nuala Forsey, head of leadership development, QA
10th January 2014
Everyone will benefit when leaders learn to lead in an engaging way.
According to quarter-on-quarter figures for growth from the Office for National Statistics, we are finally pulling out of the recession. Times are still tough: people will continue to feel the pinch until growth in the economy catches up with the cost of living.
The ‘green shoots’ of recovery are in evidence: UK companies are starting to invest in leadership development again. It is with this backdrop, with everything to gain, that we should consider how best to shape this new phase of growth.
Most businesses have learnt lessons and have changed considerably since the crash of 2008. One aspect of businesses that’s seen a huge change of tide is leadership.
Pre-recession, across many sectors, a style of leadership prevailed that I refer to as ‘Generation Grr’. Big business, larger-than-life leaders were aggressively confident and seemingly impregnable… until they fell from grace. Previously they were considered inspiring, celebrated leaders. We now know this style of leadership often created a cohort of ‘yes-men’ around the leader, engendering a bullying culture down the chain.
In this culture, I have seen valid viewpoints falling on deaf ears. In hindsight, it is obvious why: business was booming, business success was attributed to the leaders, therefore the prevailing aggressive, go-getter leadership style was rewarded.
Generation Grrr came a cropper when the recession bit hard. High profile examples of malpractice combined with a general sense that gung-ho leadership was uncalled meant that a new style emerged. From 2008, a meeker leadership set entered the picture, who I refer to as ‘Generation Zzz’.
They are quieter, more fearful operators. The best of the bunch are more considered and able to listen to multiple viewpoints from within the organisation. However, many Generation Zzz leaders seem incapable or afraid of questioning the status quo. When I talk to their colleagues, I am struck by how Generation Zzz are leaders are only in name: many don’t inspire, even fewer actually seem to lead.
Middle-management leaders who are typically younger or those just beginning to come up through the ranks are also meeker. Generally they seem fearful of losing jobs and are less willing to challenge or push back on instructions from above.
Both Generation Zzz and Generation Grrr have advantages but they also both lack emotional intelligence. Emotional Quotient (EQ) is a measure of emotional responsiveness: the ability to perceive, control and evaluate your own emotions and the emotions of those around you. EQ affects the way people throughout an organisation think and make decisions.
CIPD research reveals that 36 per cent of line managers have not received any training for their leadership role. Nearly half of organisations promote staff to managerial roles based on past performance rather than leadership skills. Once managers are in place, nearly one third cite ‘other priorities’ as standing in the way of supporting the team.
Skills that rely on EQ are closely aligned to the competencies that lead to growth of the core business. Firstly, finding ways to listen to a variety of views in an organisation promotes better understanding and can lead to exciting discoveries, such as paths for growth, or averting a ruinous decision.
Secondly, supporting managers to encourage and listen to feedback from the people they manage, analyse the demands on the business and make better decisions makes complete sense. The Lord Mayor of London in conjunction with the Institute of Business Ethics and the Chartered Institute of Securities and Investments, last year, launched an initiative in the City encouraging financial services institutions to train their managers and leaders in… integrity.
The ability of staff to question priorities or goals is essential, otherwise, employees are summarised as ‘unmotivated’, ‘disenfranchised’ etc. Fred Goodwin is a good, or bad, example of where it has recently failed.
Successfully challenging the status quo is not just about building morale amongst managers. It could be the most powerful tool to business development – or disaster prevention – that an organisation has.
There is significant focus now on employee engagement and the latest research suggests that the relationship between an employee and their line manager is key to this. All good relationships are founded on trust and good communication.
Everyone will benefit when leaders learn to lead in an engaging way.
Source: Director of Finance Online