Great Expectations, Little Sense

In “The World is Flat,” Thomas Friedman argues how the competitive landscape has dramatically changed due to the globalized, connected World that we live in. Mind boggling really, not the not-so-breakthrough idea stated, but the publicity and fanfare that this book has received around the world. A few weeks ago, The Financial Times picked “The World is Flat” as the business book of the year 2005. Among other contenders were “Freakonomics,” that talks about the dangers of following the majority and “The Search” which discusses the impact of search technologies and habits on companies. Although it is disappointing in itself to see these titles – well written, but devoid of any breakthrough ideas – on such an esteemed list, the recent death of the pioneer guru of management science, Peter Drucker, compounded the angst. By 1950, still early in his career, Drucker had positioned the concept of the decentralized corporation, forecasted that the world is moving from an “economy of goods” to one of “knowledge,” and how the computers will change the business landscape forever. Compared to such insight, it’s not wonder that the ideas presented in the current book of the year seem, well, a bit lame.

So, the bookstores are filled with hundreds, if not thousands, of new business books, most of which promise us personal and business success if their recommendations are followed. We’re wowed by catchy, albeit traditional values such as Credibility, Execution and Leadership. However, these books for the most part fail in three fundamental ways. The first trap they fall into is that of over-simplification. Each business or personal challenge is unique, and the increasing pace of change decreases the likelihood of stumbling upon an old formula that can be conveniently applied. Einstein put it best by stating that “everything should be simplified as much as possible, but no further.”

Second, the case studies presented to us are mostly those of successful, large organizations, which may be irrelevant to the vast majority of readers who are outside the Fortune 50 environment. Add to that the fact that many of these cases happened prior to the internet era that started blossoming in the late 1990s, and except for some general conclusions the pace and nature of the recommendations become even more suspect.

Finally, the authors mostly position the simplified combination of recommendations presented as the primary difference between success and failure. As any entrepreneur, business or family leader surely knows, the formula for great leadership is complex, varies over time and even then doesn’t guarantee success.

When asked about the right formula for great leadership, the most compelling advice I received was that the fundamental challenge stems from the fact that Human are by nature complex and subject to changes in desires and motivation based on their personal, physical and work environment that is in constant flux. So, a great leader must not only have the right set of skills and understand the motivations of the individuals, but also be able to match the two depending on the situation.

So, what is the definition of great leadership and the skills required to get there? Without getting into over-simplification, there are three basic cornerstones of great leadership I will posit, each of which is built on many foundational elements:

• Great Leaders inspire, win over and are remembered passionately by their followers, and even their competitors.
• Great Leaders understand that business success is a team sport and possess the elements required to coordinate a winning team.
• Great Leaders master the balance between the strategic and tactical objectives, results, decisions and implications.

Without adding significant supporting detail, the danger of putting up such daunting statements is of incorrect assumptions. However, the books vying for the top spot for this year fail miserably on providing a guideline for the three questions just listed. If you must read, here are three short articles that can be considered modern classics, in the impact that these skills have on all three cornerstones listed above.

• Level 5 Leadership: The Triumph of Humility and Fierce Resolve (Harvard Business Review). Jim Collins discusses two key elements, humility and perseverance.
• What is Strategy? (Harvard Business Review). Michael Porter distinguishes between Strategy and Operational Excellence.
• What makes a Leader? (Harvard Business Review). Daniel Goleman posits his theory of Emotional Intelligence, which is comprised of five primary factors – self-awareness, self-regulation, empathy, motivation and social skills – and have shown to impact leadership abilities more than the traditional measure of IQ.