Towards a solution for business leadership crises
A CHANGE in leadership is much needed in our society today according to Prof Cecil Arnolds, Research Director of the Nelson Mandela University Business School.
He says, “One only needs to scan news media to spot leadership failures and the devastating impact of these encroachments on the lives of ordinary South Africans.
The VBS scandal, state capture and the Steinhoff story are just some of the recent examples that come to mind.”
Seemingly a silver-lining, is that the pervasiveness of such leadership crises are not exclusive to the South African context. The World Economic Forum’s recent Survey on the Global Agenda reflects that 86 percent of respondents believe the world faces a leadership crisis.
The professor adds, “In this critical moment, it is deeply worrying that some leaders across the private, public and civil spectra of society lack the moral and ethical compasses, skillsets and self-awareness needed to lead their organisations, communities or even countries along a sustainable path into the future.
“As a result of this growing crisis, we need to take cognisance of the causes of unsustainable and irresponsible organisational practices, and recognise the types of leadership that are best suited for organisations hoping to succeed in the increasingly complex South African and global business environment. Essentially, if we are committed to changing and improving the future of leadership in civil society, government and the private sector, there are three changes that need to take place right now.
“Firstly, we need to encourage a shift away from existing traditional leadership styles towards a more conscious form of leadership. Secondly, leaders need to move away authoritarian leadership to give way to participatory leadership practices through stronger forms of organisational conversations. Finally, we need to celebrate our cultural diversity and unlock the positive and empowering features of leadership practices emanating from them.”
Conscious leadership employs inspiration, evocation of greatness, mutual trust and truth-telling, and empowers leaders to have strong levels of trust in themselves and in their followers. Conscious leadership better achieves the objectives of holism, creativity and inspiration that are the transformative ingredients to develop sustainable firms.
Leadership experts, Jim Collins and Fred Kofman respectively suggest that greatness is not a function of circumstance but rather a matter of conscious choice and that consciousness is the greatest source of organisational greatness. By choosing greatness, conscious leaders create sustainability by assuming unconditional responsibility, displaying unwavering integrity, authentically communicating with all stakeholders and being leadership rather than doing it.
Conscious leadership also promotes business sustainability by encouraging long-term thinking focused on the greater good, rather than on shortterm benefits. This type of leadership thinking opens up greater opportunities for the creation of social justice, promotes a respect for the natural environmental and ensures that decisions are made with a strong sense of moral and ethical awareness. Leaders care passionately about the purpose of the business rather than being driven just by profit.
The professor recommends organisational conversations for participatory leadership to expand skillsets of leaders. “As the ‘command and control’ model of organisational leadership becomes redundant, participatory leadership instituted via organisational conversations is often seen as the panacea to drive organisational performance forward in turbulent times.
“One way of instilling stronger forms of participatory leadership is through deepening and increasing the frequency of honest and authentic conversations between leaders and their executives, managers and employees as well as between organisations and their stakeholders. It mobilises employees, managers and executives to take greater responsibility for success and better organisational performance. It also shifts leadership power away from senior leaders and instead distributes it equally within organisations.”
Organisational conversations in support of participatory leadership allow firms to unlock greater levels of creativity and innovation, improve the self-efficacy of employees and build more performance-driven and inclusive organisational cultures.
The concept, ‘talk less – listen more,’ is an intrinsic element.
An effective blend
A study published in 2016 by the Nelson Mandela University Business School found that, despite their significant differences, Western and African business leadership styles can be blended to form a new construct.
“While African leadership approaches have often been criticised for being poorly adaptive to increasingly complex globalised economies, empirical data in this study presents an entirely different picture – one of confident, self-assured African leaders effectively heading businesses that are part of Western multinational corporations operating in emerging markets,” he reveals.
Leaders that blend African and Western leadership styles look at problems and opportunities through facts and logic but also with a strong humanistic approach. They move from individualist leadership styles to leadership which embraces communalism, cooperation and teamwork. In terms of decision-making, they make decisions that are business-oriented, but also rely on the support of colleagues and involve organisational stakeholders.
“The study highlights the need for leaders wishing to succeed in highly competitive African and emerging markets to blend elements of Western pragmatism and African humanism, in order to adopt a leadership style that recognises the importance of fact, logic and the nature of reality, but also promotes the recognition of human-focused and participatory forms of leadership.
“As ongoing leadership crises continue to impact the lives of everyday South Africans, leaders operating in government, the private sector and in civil society at large, need to reassess their current leadership practices, and consider the role that consciousness, conversation and blended cultural approaches can play in the future sustainability of their businesses and organisations,’ he concludes.