Cannot Rely On Leaders

The fact that the concept of leadership is hyped is gaining currency by the day.

Check out what Andrew Campbell, Jo Whitehead and Syndey Finkelstein has to say in their article titled 'Why Good Leaders Make Bad Decisions' in the February 2009 issue of the Harward Business Review:

[W]e cannot rely on leaders to spot and safeguard against their own errors in judgment.

They point out that decisions are made based on (previous) pattern recognition and emotional tagging. So one makes decision by looking up the emerging pattern from their previous experience and the emotional bonding with the pattern. Of course, each pattern has slightly different context and humans by nature are prone to emotional distortion. The authors therefore suggest a systematic way of identifying the distortions and eliminating biases.

These authors have published a book titled Think Again: Why Good Leaders Make Bad Decisions and How to Keep It from Happening to You. I haven't read the book yet, but if the article is anything to go by, the book should be interesting.

Yes one needs leaders. No one doesn't need the hype. For my views on the hype see The Leadership Hype and How It Affects You

Shane Warne, The Poet

When we talk of cricket, we always visualize the graceful strides of a bowler, the exquisite stroke play of the batsman, quick as a flash stumping by the wicketkeeper and the horizontal-in-the-air dives of the fielders. To the cricket fan, these are instances of poetry in motion.

But there are some that go unnoticed. The captain's role in the game. Oh yes, we praise it, but it is not quite in the same league as the poetry-in-motion stuff that I described above. The current edition of IPL T20 has taught me otherwise.

I refer, of course, to Shane Warne's captaincy. In last night's match between Rajasthan Royals and Kolkata Knight Riders, the man of the match was shared by two batsmen but the true man of the match was Shane Warne. The way he marshalled his men, the bowling changes, the encouragements, the pat on a bowler's back, his own bowling, his choice of men ... I could go on ... were a sight to behold. He is perhaps the only captain who I have seen to be visibly involved in the game. He binds the team. And if someone wishes to learn leadership qualities (more on my views on leadership, here) s/he just needs to sit watching Warne in action.

Shane Warne is the greatest captain Australia never had.

Vikram Pandit Under Fire

With Citibank sinking into quagmire, Vikram Pandit's leadership qualities are being questioned. He is believed to be a technocrat not fit to lead people ... his strong point is analysis not leadership ... doesn't take tough decisions ... and all the usual crap that nasty people reserve for people at the top.

But then can you blame people from pointing fingers at him. The Indian press lauded him when he took over as the CEO. But he has not delivered. No major decision has been taken so far that has inspired the Wall Street. He lost out Wachovia to Well Fargo. And now his job is on line.

But is he really to blame. Let us turn to my favourite management book: Hard Facts, Dangerous Half-Truths And Total Nonsense by Pfeffer and Sutton. In an very interesting titled chapter, 'Are Great Leaders in Control of Their Companies?', the say:

"Even the most powerful executives have little influence over macroeconomic trends, the price of international currency and oil, wars and terrorism, organizational history, and the weather. That is why although stock prices sometimes dramatically in the short term when a CEO is fired or hired, there are seldom long-term effects on market value.

Those who have studied the investment impact contend that the replacement of a corporate boss is often like that of a baseball team manager: after a knee-jerk sense of relief comes a realization that it won't do much good if the new guy has to lead the same bunch of bums whose losing streak got the previous manager axed."

Take your call.

Note: Do you want to read more about my views on leadership. You need to visit my other blog.

If I had to read only one book on management

If I were constrained to read one, and only one, book on management then I would unhesitatingly pick up - no, not The Goal! not even near - Managing For Results by Peter Drucker.

Managing For Results is needle sharp focused. Each sentence can launch a 100 books on management. One you have read Managing For Results every other management book reads like a corollary to the thesis presented by Drucker.

Just to give you the flavour of this book, I have reproduced a few gems that are present in the first chapter itself:
1) Neither results nor resources exist inside the business. Both exist outside.
2) Results are obtained by exploiting opportunities, not by solving problems (because of this sentence alone I have eliminated the word "problem" from my vocabulary)
3) Economic results are earned only by leadership, not by mere competence.

And all that in 1964.