Since its launch, in 2010, the basic philosophy of Harvard Business Review's (HBR) ranking to select "The Best Performing CEO in the World" has remained unchanged: that business leaders should be judged by the results they produce over their entire tenure, and that the evaluation should be based on objective data, not public opinion. That approach achieves a truer-and more dependable-picture of performance. Just as ballplayers' lifetime batting averages don't rise or fall dramatically on the basis of their last few at-bats, HBR ranking does not shift significantly with last quarter's numbers-or even last year's. In fact, this year's top three CEOs were all among the top five in 2015, and Lars Rebien Sørensen of Novo Nordisk, world's largest insulin maker, has earned the top spot for the second year in a row.
In a roundtable discussion, Sørensen was asked if it is difficult to manage young workers, especially the Millennials. He replied, "Attitudes among young people have changed. Rather than sticking at something for a long time, they go from job to job-like bees going from flower to flower and getting pollen." He recalled his father told him, "Develop a liking for an industry, build a reputation within it, and build something for the long term." That's not in fashion today, he observed. People want to move from opportunity to opportunity, start a business, and then sell it. Long-term brand building is a diminishing art.
Effective leaders serve as shepherds who show their people the way by communicating a vision, but they do not get bogged down in the tactical aspects, leaving that to their trusted team members. Some CEOs say that managing a company is similar to flying a plane. If you're flying a small aircraft, you are in complete control of a simple plane with no automated systems, so one person can easily handle it. But flying larger, more complex aircraft requires teamwork. In a business jet, the pilot manages but does not directly control many complex, automated systems. Something similar is at work as companies grow: on commercial aircraft, the CEO/pilot has to trust the crew to manage the systems and develop leaders, who can take over, much as a pilot mentors a co-pilot.
CEOs who micromanage everything unavoidably limit their company's potential because it's just not possible for one person to do everything. Conversely, those, who bring great people on board and give them the autonomy to do their jobs, expand their company's total capabilities and growth potential. People perform better when they are allowed to take ownership. The ideal philosophy is to help people set goals, then get out of the way and allow them to be entrepreneurial in how they reach those goals. You manage the way you like to be managed, and remember the ways you were successful as an employee earlier in your career. Some employees are dyslexic, so they never do well when someone says, "Here are the instructions," or, "This is how you do it." When they are forced to do things a certain way, they usually fail; their brain simply does not work that way. However, when a manager says, "Here's what we're trying to accomplish," and then leaves them alone, they always perform at a very high level. They are empowered to think on their own, be creative, and develop unique solutions. Some CEOs begin managing people the same way, and it not only produces great results, but also make people happier and more satisfied with their jobs.
The other major leadership principle some CEOs live by is making themselves self-irrelevant. If I do my job well, I could disappear, and the business wouldn't know the difference; it would keep running flawlessly. This means hiring the smartest and most ambitious people possible, helping them to develop their own talents, and giving them the room to grow and succeed on their own. This also means letting go of responsibilities myself, and continually handing them off to anyone and everyone who wants more ownership, autonomy, and growth.
Freedom encourages creativity and builds loyalty. This free environment is only successful when there is a strong foundation in place - and all are able to look to their system for answers. This allows team to breathe and not be afraid of making a mistake. It allows them to seek excellence and work together to achieve the same goal. You need to have compassion and empathy, be willing to work hard, and not be afraid of making tough decisions. The type of leaders you hire can change the creativity of your organisation as a whole, new research finds.
The key to gaining a workforce filled with creative employees is having confident leaders, found a study recently published in the Washington-based journal, Organizational Behaviour and Human Decision Processes. When leaders feel confident that they can produce creative outcomes, their employees also become more creative, says a researcher of University of Texas at San Antonio. Typically, creative leaders have the proper experience to fuel their ideas. As a result, they're more confident. However, the researchers say they were surprised at how contagious a leader's creativity and confidence can be: "Leaders can imbue their subordinates with confidence and creativity just by setting an example themselves".
The opposite is also found to be true. The researchers discovered that when managers aren't confident or creative, their employees also feel less confident in their own abilities to be creative. To instil the most creativity in their direct employees, bosses also need to have positive relationships with their employees, focusing on trust, loyalty and mutual professional respect. When a confident, creative leader also has good relationships with her or his employees, it has even a stronger impact on creativity. "Creativity flourishes in supportive environments where leaders and subordinates have good interpersonal relationships," according to researchers.
Someone may be asked about the best way of leadership to manage the people in business. There is no one "right" way to lead a business. Today's leaders have a lot of wisdom to manage the modern workforce, because each one approaches leadership in his or her own unique way. Manage each person in a way that brings out their individual best, encourages creativity, and maintains a professional work environment for all. If you are passionate about something and work hard, good things will happen.
Leadership is a very complex phenomenon. It is not about whether leaders are born or made - it is about how they use their skills once they get into that position.
[The article is based on: "The Best-Performing CEOs in the World" from the HBR November 2016 Issue and "Want a Creative Workforce? It Starts with Leadership" from the Business News Daily.]
Azahar Ali FCA, Fellow Member of Institute of Chartered Accountants of Bangladesh, is the Country Financial Controller of Concern Worldwide, Bangladesh.
Bangladesh.cfc@concern.net Â
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