Rethinking leadership

The newly emerging topic of "Rethinking Leadership" needs to be properly understood for paving the way for its implementation. This piece looks at some of the important aspects listed below:
1. Concept; changing scenario: HR and leadership; seven principles of public life for rethinking leadership; traits of leaders; World Bank Global Leadership Initiative; rethinking leadership in HR: Deloitte Research Model; rethinking leadership and value of global brands; way forward; these are briefly reviewed now.
Concept Thinking is a powerful tool. All religions encourage it. In Quran, God has motivated all the human beings to keep thinking. IBM adopted "Thinking" as a motto for implementations. Their brand in Global 100 Brands for 2009 is number 5 (US $68). It is generally believed that thinking has four constituents. These include capacity to abstract, tolerance for ambiguity, intelligence and judgement. Currently, the new concept introduced is "Re-thinking". Why has "Re" been pre-fixed? This question needs support and clarity.
Before 1993, the term "Engineering" was in big currency. However, Michael Hammer of MIT, USA, introduced a new concept namely, "Re-engineering". The number of copies of the book entitled "Re-engineering the Corporation" sold throughout the world were 1.7 million. In 1996, he released "Re-engineering Handbook". Till now the struggle to implement the spirit of re-engineering is a hot agenda with tremendous benefits. Time Magazine, in one of its issues published in late 1990s, released the name of 25 individuals who made an enriched contribution to the socio-economic development of the US. For management segment, the name of Michael Hammer was included.
In the above backdrop, the term "Re-Thinking" has assumed great significance. Consequently, Rethinking Leadership is in big currency today. It is interesting to clarify the above concept. For proper comprehension, the constituents of rethinking leadership are listed below:
-- It follows strategic approach.
-- Its application extends to every level of organisation.
-- The approach to be followed is "Strategic Way".
-- Two dimensions include creating and executing "an actionable strategy".
Therefore, rethinking leadership should be understood to follow the above constituents. Changing scenario: HR and leadership: Traditionally, HR leadership was driven by three phases namely, move in (recruitment), move around, (training, working, promotion, transfer etc) and move out (retirement, dismissal, death etc). Today's challenging environment has motivated leaders to rethink and redefine their role on innovative lines. There are two constituents in this respect.
The first relates to general aspects, which focus on developing vision, cultivating an enriched culture and development and faithful compliance to ethical code. The second constituent deals with specific roles namely, emphasis on human capital management, maintaining an institutionalised arrangement for business intelligence, concentrating on business decisions and giving autonomy to employees.
No wonder, HR rethinking leadership is producing productive results. Some of these include beefing up of the bottom line, increasing productivity, ensuring positive and steady growth, producing solid and forward looking leadership and resulting in market penetration. Therefore, Rethinking Leadership be accepted as a challenge for translation into profitable opportunity.
Seven principles of public life for rethinking leadership: The first report of the committee on "Standards in Public Life" was released in UK in 1995. Seven principles of public life were released. The thematic message is briefly summed up now. Selflessness is the first principle, which guides one to concentrate on public interest and not on self-interest. The second is to follow integrity, which requires selection of personnel for all posts on merit. Objectivity requires that no financial or other obligation be accepted on fair decision making. Accountability be operationalised across the board.
Openness be followed as an inflexible rule in decision-making. Honesty be reflected in real term by declaring any private interest. One must lead from the front. If we want people to pay income tax, all the top political leaders and legislators must pay due amount of income tax so that their speeches and sermons have practical impact.
All concessions, exemptions and rebates under the Income Tax Ordinance, 2001 and especially under the Second Schedule of the above ordinance be withdrawn and Pakistan, through "Rethinking Leadership" can get rid of reliance on loans and borrowing (internal and external) if the golden principle of fiscal finance is followed namely, all persons with taxable income of Rs 300,000 and above, as the threshold prescribed by the Parliament of Pakistan, must be included in income tax net.
As against around 2.5 million persons filing income tax returns, the potential will be over 10 million. This will eliminate the federal revenue budget deficit and will enable availability of funds for financing ADP of Pakistan. Economic sovereignty will be restored. Image deficit will be eliminated and Pakistan would be seen with great respect and honour globally in the comity of nations.
Traits of leaders: Till 1940s, trait theory was strongly advocated. However, due to changing environment on global basis, the leadership spectrum got widened and now a comprehensive approach is needed to treat various facets of leadership. However, checklists are available in leadership handbooks and also on the internet. By and large, these include physical fitness, social interaction, personality development and personal organisation.
All those, who wish to play rethinking leadership role, ought to bejewel themselves with accredited traits of sound and solid leadership. World Bank global leadership initiative: The above initiative resulted into three-point framework for implementation. The first included vision.
This emphasised ability to engage with stakeholders to articulate a collective vision for the future. The second emphasised on effectiveness. This identified technical and managerial skills, which are necessary to realise the above vision. The last one focused on integrity, which requires rethinking leadership to inspire others by example and commitment to the greater cause.
Rethinking leadership in HR: Deloitte research model: Deloitte research model focused on a chain with five links. These include the following: (1) Attract the best, (2) Deploy intelligently, (3) develop the talent, (4) establish and encourage connectivity, (5) retain the personnel of the organisation.
The above five links, if appropriately implemented, can extend an enriched contribution to an organisation with the support of rethinking leadership.
Rethinking leadership and value of global brands: An attempt was made by us to draw example from the 2009 Global Brands to rethinking leadership. For a long time, Coca-Cola ranked as number 1 in brand value in 100 global brands in the past (brand value US dollar around 60bn). The results released in 2009 showed that Google ranked number 1 with brand value of US $114bn.
The two brothers reflected rethinking leadership in the overall performance of Google: Moreover, IBM ranked number 2 with brand value of US $86bn as the rethinking leadership diversified its business. Moreover, Apple under the transformational leadership of job Steve has turned the corner. He was declared as the best chief executive of the decade by Fortune Magazine in 2010.
Its market value in December 2009 on Wall Street was US $130 per share. Now, it is over US 250 per share. The rethinking leadership has been instrumental in redefined role of Apple with expanding market through innovative products offered to the users keeping into consideration the needs of users. Market driven approach was used to reinvigorate the environment in Apple. Its brand value for 2009 is US $83 billion.
Another outstanding example is that of Bill Gates who, by introducing windows and other IT products, revolutionised business through operations of Microsoft. In 2009, brand value of Microsoft was US $76bn. The foregoing examples strengthen the belief that we need rethinking leadership for a brighter future, growing prosperity across the board and social stability.
Way forward: Rethinking leadership motivates enterprises to innovate new products, synergizes people, energises the whole system, streamline, procedures, establishes clarity in goals, vision, mission, objectives and quality policy for the organisation. Indeed, rich dividends will follow. Let us all get committed to nurturing, cultivating, developing and enabling rethinking leadership to grow and flourish to achieve bigger goals for enterprises and benefit the society as a whole.
(The writer is Professor Emeritus and Founder Principal, Hailey College of Banking & Finance, University of the Punjab, Allama Iqbal Campus, Lahore)
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