Follow the leaders

Taking leadership culture to all levels of an organisation not only requires a recognition of the difference between the roles of manager and leader, but a firm commitment to a company-wide programme of change. By Keith Rodgers.

If you're looking for evidence of the huge gulf between operational management skills and the leadership qualities required to drive a company forward long-term, Kate Lidbetter has some powerful anecdotes. A founding director of leadership consultancy SKAI Associates, she is frequently brought into blue-chip organisations to help train newly appointed directors. "They are aware that they are now a leader," she says, "but they have no idea what they should be doing. So they tend to revert to type, which is managing. It is like having a completely new job when you land in a leadership chair."

The concept of leadership is popularly personified by high-profile, charismatic figures in the mould of Jack Welch or Richard Branson. The reality, however, is both more mundane and far-reaching. Leadership qualities are not the exclusive domain of those at the top of an organisation or division - they need to cascade down through an organisation, as far as frontline departmental heads on the shopfloor. And contrary to popular myth about leaders being born not made; many of these qualities can be developed when managers are sufficiently determined to grow into new roles.

The difficulty organisations face is that this development programme is time-consuming: it requires a thorough understanding of where management stops and leadership starts, and leads to major cultural shifts within the company.

While the disciplines of managing and leading are synonymous in popular culture, much of the focus in business consultancy and academia is on mapping out the distinctions between the two. One of the clearest explanations of what leadership entails was published in Harvard Business Review in 1990. In What Leaders Really Do, John P Kotter argues that leadership and management are "two distinctive and complementary systems of action". Management, which evolved primarily in response to the emergence of large organisations in the 20th century, is about coping with complexity; leadership is about coping with change.

Kotter points to three core tasks where the two disciplines require different actions and responses - deciding what needs to be done; creating networks of people and relationships to accomplish an agenda; and ensuring those people do the job. In the first instance, managers use planning and budgeting techniques to handle complexity; leaders, by contrast, set a direction, mapping out a vision and developing strategies to achieve them. In terms of people and relationships, managers create organisational structures and fill the relevant roles, making judgements that "are much like architectural decisions". Leaders, however, focus on aligning people, which is "more of a communications challenge than a design problem". Aligning involves talking to more individuals - anyone who can either implement or block the vision - getting people to accept the message and empowering them to act on it. Finally, managers ensure the agenda is accomplished by controlling and problem solving, while leaders achieve their vision by motivating and inspiring.

John Potter, a leadership expert appointed visiting professor to the Centre for Leadership Studies at the University of Exeter in 1998, reinforces this argument, suggesting that: "Leadership is primarily an emotionally-based process, whereas management is to do with a control process, and is largely intellectually based in its nature". He identifies four qualities that mark out leaders. They have to be believable and credible; they need to be able to take on board a variety of viewpoints dispassionately; and, unlike managers, they require strong communication and interpersonal skills, and a high degree of emotional intelligence.

One danger in drawing distinctions between management and leadership is that the latter comes to be seen as a higher-value quality, while management appears mundane and tedious. But the reality is that both are crucial. As Lidbetter says: "If you think of an organisation focusing too much on management - on processes, standards, execution, and so on - in my experience you have an organisation that is not sustainable in the long run. It is constrained, and nobody is inspired about the future. If you think of an organisation that has leadership - someone inspiring, setting the direction, defining strategy - but no management capability, then you have no possibility of follow-through. It is all talk, no action. You can't have one without the other."

For most established companies, management skills are not the main issue: senior and middle-ranking executives are usually seasoned professionals boasting extensive operational skills. Developing leadership qualities, however, is a different matter. While knowledge of processes and execution can be taught, vision and the other 'emotional' qualities required of leaders need to be developed, often through practical experience.

Experts suggest the best way to translate theory into practice is to take a pragmatic approach, focusing on areas where individuals can quickly see for themselves how leadership brings about different results from management.

Gavin Wallbridge, principal consultant at Penna Change Consulting, argues that the development process can initially be spurred by playing on an individual's basic instincts - for many, the idea of being termed a 'leader' is in itself appealing. It also helps show senior managers that those beneath them are looking to them for leadership - they may not have been delivering it, but the expectation is there. By assessing how leadership skills would be applied in everyday scenarios, managers can begin to meet those expectations.

A manager undertaking an employee review, for example, should see it as a critical exercise and work out how a leader would approach it - as an opportunity to inspire people with a sense of passion and energy. "You can get people to act differently by asking what a leader would do, even if the situation is fairly mundane," Wallbridge says. "You can get most managers to realise that leaders act in certain ways at certain times."

In his Harvard Business Review article, Kotter reinforces the fact that many of the attributes associated with leadership are surprisingly straightforward. "Most discussions of vision have a tendency to degenerate into the mystical. But developing good business direction isn't magic - it is a tough, sometimes exhausting process of gathering and analysing information. Nor do visions and strategies have to be brilliantly innovative: effective business visions regularly have an almost mundane quality, usually consisting of ideas that are already well known."

Demystifying attributes in this way becomes more critical as leadership culture is filtered down from senior execs to others in an organisation. While the Bransons and Welchs of the world take credit for driving entire businesses forward, much of the need for leadership is in frontline positions, where departmental managers are required to motivate and inspire their teams on a day-to-day basis. As Potter points out, this kind of leadership is just as big a challenge as that required in the higher echelons of a company. "We are asking people in the frontline to act more like leaders than they ever have done," he says.

Extending leadership culture can, however, lead to problems. Tony Dunk, head of performance programmes at HR specialist CDA Group, points out that after implementing change at the top of the organisation, many companies focus their next development effort on frontline staff. That can leave middle management untrained and out in the cold.

CDA worked with a UK leisure chain which undertook a major change management programme, switching from a dictatorial approach where rules and guidelines for local managers were centrally enforced, to a culture where individuals were better empowered to interpret customer need in their own way. Over a three-year programme, the highest number of casualties came from middle management. "Usually they were part of the new structure, but [some] disappeared when they couldn't manage the change. For example, if they'd go into an [outlet] and see something they didn't like, a manager would say: 'You shouldn't be doing that.' A leader would say: 'Why are you doing that, what advantage does it give us, and would it benefit other people?' In other words, they did not focus on compliance. There are some real differences between management and leadership - it causes a lot of stress and a lot of casualties."

Handling this change management process should create a perfect opportunity for HR, but experts' experiences of how well the function rises to the challenge differs considerably. "We often see ourselves hitting up against HR organisations," says Dunk. "Mostly HR is policing, not leading. Most of our good experiences are where there is good alignment between HR and the line, and the benefits are obvious to both."