Real Leaders Don't Boss (6 page)

Honing those leadership skills can happen outside the workplace, too. One of the many leadership “laboratories” helpful to me was my college fraternity, Sigma Phi Epsilon. Serving my fraternity brothers in different roles afforded numerous types of leadership training. I learned quickly how to deal with adversity and constructive criticism, as well as how to improve, grow, and handle increased responsibility. Perhaps most important, the significance of serving others was reinforced time and again, as was the value of a close-knit and open-minded community.

Being chosen by my peers to be captain of a varsity sports team was also an important learning experience for me. As captains are normally chosen to help inspire and energize a team, I saw this opportunity as a test of my leadership skills. I realized I had to not only step up my performance as an athlete but also to set an example by the way I practiced, helped younger players, and reinforced the coaches' goals for the season. My coaches instilled in me the belief that effective captains helped develop and teach the less experienced among us just as business leaders strengthen their employees' skills. Whether you are a captain of a sports team, an academic decathlon, a debate team, or a work team, you learn to be a better leader by practical experience.

Amway co-founder and NBA Orlando Magic owner Rich DeVos, whom I got to know while I was senior vice president of a large Midwestern hospital, knew what he was talking about when he wrote in his book
Ten Powerful Phrases for Positive People
(Center Street, 2008), “Leadership is what you do at home.” Again, it's about living the ideals in your private, professional, and social life; passing them on; and motivating those around you.

Howard Holmes, mentioned previously, did just that. Before his death in 2001, Holmes, as CEO of Chelsea Milling, was a trailblazer in the packaged-foods industry. Along the way, he always had time to listen and share his knowledge with others. Today, a plaque hangs on the wall of the mill that reads:
“Howard Sumner Holmes' devotion to the noblest principles of living and his unfailing generosity with his time were qualities for which he will long be remembered with great affection.” Holmes' real-life leadership rubbed off on his son, Howdy, who succeeded his father as president and CEO of Chelsea Milling in the mid-1990s. With his father's same inspiring approach, Howdy was able to make the necessary adjustments to shepherd the 105-year-old company through today's turbulent business times and strongly position it for the future.

Howdy Holmes demonstrated his considerable sense of leadership skill long before rejoining the family business. A racecar driver by training, he was named “Rookie of the Year” at the Indianapolis 500 in 1979. Off the track, he proved to be an inspiring leader for young fans, too. I once watched him work his magic with a group of Cub Scouts in Ann Arbor, Michigan.

It was an evening I shall never forget. Within a few minutes, Howdy Holmes had captivated the group, and they began sliding on their haunches across the gym floor to get closer to him. As he spoke about physical fitness, clean living, pursuing dreams, and the importance of not making mistakes that could forever destroy aspirations, I knew right then that this young man would become a truly inspiring leader. Howdy spoke with the children—not at them—and was well-organized, humorous, and clearly passionate about his message.

Today's workplace is a far cry from the insular corporate environment of workplaces of the past. The marketplace is global, wired, and constantly changing. These facts cannot be excuses for poor leadership. These are simply the realities that necessitate different approaches and shifts in leadership. Though the values of true leadership are timeless, the application must change as business does. Let's look more closely at the old and the new approaches to leadership:
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“That doesn't, however, mean the qualities that always have distinguished true leaders don't still hold true,” says attorney Bradbury. “Those qualities include honesty, leading by example, demonstrating character in all that one does, not asking someone to do what you would not, being kind and understanding, and being decisive and fair,” adds Bradbury, who also excels at grooming talented young attorneys for careers in judicial and legislative branches of government, and who is the first district attorney to be elected twice as president of the California District Attorneys Association. He continues:

Leaders today must understand that they can no longer simply rely on “gut feelings” and doing it the way it was always done. The new leaders must be inquisitive and genuinely interested in change and learning. For example, they should become familiar with the new and rapidly expanding social media. A leader should learn from his/her employees and seek out opportunities to do so.... Older leaders must return to [leadership] “school” and learn to meld the new thinking, global and otherwise, with the tried-and-true characteristics of great leaders.
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Unfortunately, not all the developments and changes in today's workplace are for the better. The trend toward excess in top-level management compensation and benefits has created significant challenges in the sphere of leadership, especially when considering changing demographics and attitudes in the workplace.

The younger workforce—including growing numbers of Millennials—is far less enamored of traditional organizations, according to author Ron Alsop.
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These workers tend to be more independent and less likely to remain in the same job for as long as their counterparts of the past. That creates major challenges for today's managers. Again, these are not insurmountable challenges, and they come with big rewards. But it
takes new stimuli and incentives to retain these technologically savvy, bright, and environmentally conscious young minds, including more interesting assignments, frequent performance feedback, and company-supported affinity groups.

Adding to the challenge, as the gulf in salaries and benefits between the top and bottom ranks of many organizations exceeds acceptable bounds, workers are much less likely to feel compelled to work harder, have a sense of loyalty, or feel responsible to help solve a company's pressing challenges. These undervalued employees instead point to the C-suite with its bloated salaries, perks, and bonuses, and say, “Let them solve it!” Factor in today's rocky economic environment that has forced many companies to eliminate some of their workforce in order to survive, and the fact that the traditional expectation that those remaining will pick up the slack doesn't necessarily hold true anymore.

The General Motors bailout and takeover is a prime example of the chasm between boardrooms, line employees, and market realities. Another example is the insurance giant American International Group (AIG), which the federal government bailed out to the tune of $85 billion and a majority ownership in 2008. In the case of both companies, the leadership enjoyed exorbitant salaries and lavish perks as the markets crumbled around them. (As of July 2011, AIG continued to struggle as it appears GM continued to rebuild.)

The challenges of the 21st century aren't insurmountable. They are simply new and different, and require real, enlightened leadership to step up and take the helm. Some companies and leaders already are doing just that, according to the Hay Group's sixth annual
Best Companies for Leadership Study
and
Top 20
released in January 2011. The 2010 survey involved more than 1,825 organizations worldwide. Among the approaches top companies have adopted to improve their efficiency and
competitive positioning are diversifying their workforces and moving away from hierarchical—top-down—leadership, the study reports.
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Keeping a company and its staff afloat in tough economic times requires special leadership. To maintain the forward momentum is an even greater challenge, even for real leaders.

Harold S. Edwards, president and CEO of California-based Limoneira Company, a major global producer of citrus, is one of those leaders focused on maintaining his company's strategic and community edge despite today's bumpy economy, and he's quick to admit it is not easy:

Strategically plotting Limoneira's course through an extremely treacherous economic downturn has tested me. Keeping the board focused on strategic and governance issues and the management team focused on managerial issues during the recent unprecedented downturn in the U.S. economy has been the most challenging situation for me since assuming the helm at Limoneira. Plotting our strategic course while managing significant real estate exposure has been a true test for me.

Being able to display the courage and confidence in specific ventures while making the difficult decisions to exit others (sometimes at a loss) while moving the hearts and minds of Limoneira's board, its managers, and its shareholders forward toward greater shareholder value has been the challenge. Diversification has allowed us to weather the storm. Limoneira is in position to create significant value as the local and regional economies heal. Keeping everyone on the board and within management rowing in the same direction
and focused on solving problems (as opposed to only identifying them) has allowed us to sail through this difficult phase intact. Keeping Limoneira's hearts and minds together has been a true challenge for me and one of my greatest professional tests to date.
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Through all of these challenges, Edwards has remained a leader who demonstrates a tremendous confidence, positive image, and a real gift for building consensus among different groups involved in his operation. These, as well as the other qualities he mentioned, have helped his company weather the storm.

All types of leaders are tested by the economic realities of today. Some survive—and even thrive—while others do not. As Edwards's words attest, it can be rough even for companies with strong leadership. It is easy to succeed—or at least wear the trappings of success in terms of profits—when everyone is buying and marketplaces are thriving. It is far more difficult when markets are stagnant, but that is when real leaders rise to the occasion, rally their troops and their communities, and make a difference.