When employees aren’t just engaged, but inspired, that’s when organisations see real breakthroughs. Inspired employees are themselves far more productive and, in turn, inspire those around them to strive for greater heights.
Our research shows that while anyone can become an inspiring leader (they’re made, not born), in most companies, there are far too few of them. In employer surveys that we conducted with the Economist Intelligence Unit, we found that less than half of respondents said they agree or strongly agree that their leaders were inspiring or were unlocking motivation in employees. Even fewer felt that their leaders fostered engagement or commitment and modelled the culture and values of the corporation.
To understand what makes a leader inspirational, Bain & Company launched a new research programme, starting with a survey of 2 000 people. What we found surprised us. It turns out that inspiration alone is not enough. Just as leaders who deliver only performance may do so at a cost that the organisation is unwilling to bear, those who focus only on inspiration may find that they motivate the troops but are undermined by mediocre outcomes. Instead, inspiring leaders are those who use their unique combination of strengths to motivate individuals and teams to take on bold missions — and hold them accountable for results. And they unlock higher performance through empowerment, not command and control.
Here are some of our additional findings about how leaders both inspire, and get, great performance.
You only need one truly ‘inspiring’ attribute
We asked survey recipients what inspired them about their colleagues. This gave us a list of 33 traits that help leaders in four areas: Developing inner resources, connecting with others, setting the tone and leading the team:
- Stress tolerance, self-regard and optimism help leaders develop inner resources
- Vitality, humility and empathy help leaders connect
- Openness, unselfishness and responsibility help set the tone
- Vision, focus, servanthood and sponsorship help them lead.
We found that people who inspire are incredibly diverse, which underscores the need to find inspirational leaders that are right for motivating your organisation — there is no universal archetype. A corollary of this finding is that anyone can become an inspirational leader by focusing on his or her strengths.
Although we found that many different attributes help leaders inspire people, we also found that you need only one of them to double your chances of being an inspirational leader. Specifically, ranking in the top 10% in your peer group on just one attribute nearly doubles your chance of being seen as inspirational. However, there is one trait that our respondents indicated matters more than any other: Centeredness. This is a state of mindfulness that enables leaders to remain calm under stress, empathise, listen deeply and remain present.
Your key strength has to match how your organisation creates value
Effective leadership isn’t generic. To achieve great performance, companies need a leadership profile that reflects their unique context, strategy, business model and culture — the company’s unique behavioural signature. To win in the market, every company must emphasise the specific capabilities that make it better than the competition.
We found that the same is true of leaders: They must be spiky, not well-rounded, and those ‘spikes’ must be relevant to the way that the company creates value. For example, an organisation that makes its money out-marketing the competition isn’t likely to be inspired by a leader whose best talent is cost management. Spiky leaders achieve great performance by obsessing about the specific capabilities that underpin their company’s competitive advantage. They make sure those capabilities get an outsized, unfair share of resources and provide the key players the freedom they need to continue to excel.
You have to behave differently if you want your employees to do so
Even with a clear idea of your company’s winning behavioural signature, leaders need to develop new ways of operating. We found that leaders who both inspire people and generate results find ways to constructively disrupt established behaviours to help employees break out of culture-weakening routines.
Inspirational leaders recognise the need to pick their moments carefully to reinforce a performance culture in a way that can also be inspiring. These are real moments of leadership and truth. Two of our favourite, classic examples include:
- When Howard Schultz returned to Starbucks as CEO after a nearly eight-year hiatus, he realised that Starbucks’ unique customer-focused coffee experience was now in the back seat. In the front seat were automation and diversification, both implemented in pursuit of throughput and growth. Schultz took swift action to change the company’s direction; he even shut down 7 100 US stores for three hours on 26 February 2008 to retrain the baristas in the art of making espresso. In this highly symbolic move, he left no doubt about his intentions — and about what he thought it would take to make Starbucks great again.
- When Alan Mulally came to Ford in 2006 to help turn around the business, he took bold actions to change the way the company operated. In one highly visible moment, he applauded Mark Fields (who would eventually become his successor) for admitting to a failure in an executive meeting. That was pretty much unheard of at Ford and it set the tone for the open and honest communications required for a new culture at the company.
While these are only single actions by leaders who are famous for producing both performance and inspiration, they provide a window into what inspirational leadership looks like.
Drawing insight from Eastern philosophy, one of our clients once said, “If you want to change the way of being, you have to change the way of doing.” This struck us as profound in the moment and even more profound over time — and the sentiment matches what we learnt in our research. Leaders can only change by doing things differently. The more often they behave in a new way, the sooner they become a new type of leader, an inspirational leader. We know that individual inspiration is the gateway to employee discretionary energy, and that, in turn, is critical to making the most of your scarcest resource — your human capital.
Leaders driving economic value
To win in the market, every company must emphasise the specific capabilities that make it better than the competition.
We found that the same is true of leaders: They must be spiky, not well-rounded, and those ‘spikes’ must be relevant to the way that the company creates value.
Want To Achieve Greatness? Force Everyone Out Of Their Comfort Zones
Diverse teams are better performing teams, but only when they are inclusive.
Working in a diverse team feels uncomfortable and that’s why we perform better. Discomfort arouses our brain, which leads to better performance.
Diverse teams are smarter teams. They have higher rates of innovation, error detection and creative problem solving. In environments that possess diverse stakeholders, being able to have different perspectives in the room may even enable more alignment with varied customer needs.
Being able to think from different perspectives actually lights up areas of the brain, such as the emotional centres needed for perspective taking that would previously not be activated in similar or non-diverse groups.
In a nutshell, you use more of your brain when you encourage different perspectives by including different views in the room. However, work done at the NeuroLeadership Institute has proven that this only works when diverse teams are inclusive, and this still remains a key challenge in business today.
When we consider the amount of diversity present in the modern workplace and the addition of more diverse thinking as a result of globalisation and the use of virtual work teams, it’s clear that the ability to unlock the power of diversity is just waiting to be unleashed.
Here’s how you can unlock this powerful performance driver.
The Social Brain
Despite the rich sources of diversity present in most workplaces, companies are still often unable to leverage the different perspectives available to them in driving business goals. Recent breakthroughs in neuroscience have enabled us to understand why. The major breakthrough has centred around the basic needs of the social brain.
We have an instinctual need to continually define whether we are within an in-group or an out-group. This is an evolutionary remnant of the brain that enabled us to strive to remain within a herd or group where we had access to social support structures, food and potential mates. If we were part of the out-group it could literally have meant life or death. We are therefore hypersensitive to feelings of exclusion as it affected our survival.
The brain is further hardwired for threat and unconsciously scans our environments for threats five times a second. This means, coupled with our life or death need for group affiliation, we are hypersensitive to finding sameness and a need for in-group inclusion.
When we heard a rustle in a bush it was safer to assume that it may be a lion than a gust of wind. It is this threat detection network that has kept us alive until today. The challenge is that society has developed faster than our brains. In times of uncertainty we often jump to what is more threatening.
Some of the ways that this plays out is when we leave someone out of an email and they begin to wonder why they were left out. The problem is that it’s easy to unconsciously exclude someone if we are not actively including. The trouble occurs when we incorrectly use physical proxies to define in-group and out-group, as this is the most readily available evidence used unconsciously by the brain.
Barriers to Inclusion
A study done between a diverse group and non-diverse group demonstrates how this plays out in the work place. Both groups completed a challenging task and were asked how they felt they did as a team after the exercise.
The effectiveness of the team and how they perceived effectiveness were both measured in the study. It’s no surprise that the diverse team did better in the completion of the problem-solving task, but what is surprising is that they felt they did not do well. In contrast, the non-diverse team did worse, but felt that they had done well.
Working in a diverse team feels uncomfortable and that’s why we perform better. Discomfort arouses our brain, which leads to better performance. It feels easier to work in a team where we feel at ease in sameness, but in that environment we are more prone to groupthink and are less effective.
We can’t assume that when we place diverse teams together we will automatically reap the rewards of higher team performance. As discussed, we’re hardwired for sameness and if we’re not actively including, we may be unconsciously excluding.
If we want diversity to become a silver bullet, we need to actively make efforts to find common ground amongst disparate team members. This in turn will build team cohesion and create a sense of unity, including reminders of a shared purpose and shared goals. Many global businesses put an emphasis on a shared corporate culture that supersedes individual difference.
It’s the same mechanism that is used in science fiction films that bond individuals together against a common alien invasion. It can also be used to describe why we felt such a great sense of accomplishment during the 2010 World Cup as we banded together as a nation.
We must also make sure we uplift all team members by sharing credit widely when available and recognising performance. The last thing we can do to further inclusion is to create clarity for teams. By removing ambiguity, we allow individuals to not jump to conclusions about their membership within groups and calm their minds so they can use their mental capacity to focus on the task at hand.
To Get A Job Or Not Get A Job. What Are We Teaching Our Children?
Remember the days where if you went to school and studied a degree, you got a job and built a career that enabled you to retire comfortably? I don’t, in fact I’m not sure those days ever really existed. If they did, they are long gone.
Today STATS SA tells us only 1 in 3 of the youth in South Africa have a job, even worse still – 34% of graduates aged 15-24 are unemployed1. The bottom line is that there are not enough jobs to cater for every child that finishes school. Our children need to learn entrepreneurship. If we want a brighter future for them, we need to nurture, teach and develop the skills and behaviours required to create jobs of their own.
With no intention of knocking the school system it would seem for the most part it discourages entrepreneurial thinking on a fundamental level; it prepares students to become good employees. Tuck your shirt in, sit still, stand in line, do your homework, focus on the task, check this box, you get the picture. Three decades ago this may have worked but it won’t work when we are trying to teach our children to survive the forth industrial revolution and prepare for jobs that don’t yet exist!
It may sound like a cliché, but kids are our future. As a parent I believe one of the most important duties we have is to give our children the best possible start. We need to prepare them on how to live, survive and thrive in a world that is rapidly changing, mostly unpredictable and often unforgiving. This starts by identifying the skills and nurturing the behaviours that will give them the best chance for success.
Teaching entrepreneurship prepares our children for the future
Entrepreneurship encompasses so much more than starting and running a business. It’s a shift in mindset, a different way of thinking. Entrepreneurship views problems as opportunities and fuels creativity in the pursuit of solutions. All these skills can be applied to life.
Successful entrepreneurs are resourceful, self-confident and tenacious. They are great communicators and marketers, good at identifying and understanding risk. They have learnt from failure and made mistakes. Entrepreneurs are financially literate, understand cash flow and how to manage money. Again, these are skills that every child and student can benefit from.
To make it in the workplace of the future you will need to be self-confident, innovative, creative, motivated and curious.
Employers will need to hire staff that have the creative ability to innovate and ensure the longevity of their organisations. Those people that show entrepreneurial flair will be in demand in a world that is ever and more rapidly changing.
Exposing our children to entrepreneurship, teaching them the fundamental skills and behaviours required to start a business, and letting them know it is a career choice should be a requirement in all schools and endorsed and supported by all parents.
- Youth unemployment still high in Q1: 2018 http://www.statssa.gov.za/?p=11129
How To, In Practice, Distinguish Between Executive, Non-Executive And Independent Directors And Their Functions
Learn more about the differences in executive and non-executive directors.
Definition of a director in terms of the Companies Act
Section 1 of the Companies Act 71 of 2008 (Companies Act) defines a Director as “a member of the board of a company, as contemplated in section 66, or an alternate director of a company and includes any person occupying the position of director or alternate director, by whatever name designated”.
Powers of directors
Section 66 of the Companies Act determines that the business and affairs of the company must be managed by or under the direction of its board and that the board has the authority to exercise all of the power and perform any of the functions of the company, except to the extent that the Companies Act or the Company’s Memorandum of Incorporation provides otherwise.
The board of directors, for the first time in our current Companies Act has been assigned the legal duty and responsibility and play a very important role in managing the affairs of the company and making vital decisions on behalf of the company.
Number of directors required on a board
In the case of a private company, or a personal liability company, the board must consist of at least one director and the case of a public company, or non-profit company, the board must consist of at least three directors. A JSE listed company requires at least four directors. The company’s Memorandum of Incorporation may however specify a higher number, substituting the minimum number of directors required.
How to distinguish between executive, non-executive and independent directors and their functions
A clear distinction is noticeable between the different types of directors in practice, even though the Act does not distinguish between executive, non-executive and independent directors.
The below table gives a clear understanding of the differences between executive and non-executive directors:
Member of the board of directors with directors’ duties.
|Part of the executive team, as an employee of the company and generally under a service contract with the company.||Not an employee of the company.|
|Involved in the day-to-day management of the company.||Not involved in the day-to-day management of the company.|
|In addition to a salary, does not receive directors’ fees.||May receive Directors’ fees, but does not receive a salary.|
|Shareholders are not involved in approving their salary packages.||Shareholders must approve their fees by way of special resolution, in advance.|
|Employee entitlements apply, such as annual and sick leave.||No entitlements apply.|
|Has an intimate knowledge of the workings of the company.||They contribute to the development of management strategies and monitor the activities of the executive directors.|
|They carry an added responsibility. Entrusted with ensuring that the information laid before the board by management is an accurate reflection of their understanding of the affairs of the company.||Plays an important role in providing objective judgement, independent of management on issues the company are facing.
Independent, non-executive director
An independent, non-executive director does not have a relationship, directly or indirectly with the company other than his or her directorship. They should be free of any relationship that could materially interfere with the independence process of his or her judgement and they do not represent the shareholders of the company.
An independent, non-executive director should be evaluated on an annual basis to determine if they are still considered independent.
The role of these directors
All directors should apply objective judgment and an independent state of mind, regardless of the classification as an executive, non-executive or independent non-executive director.
Executive directors may be appointed as non-executive directors on other boards if this does not influence their current position and is in accordance with company policy.
Before a director accepts the appointment, they should be familiar with their duties and responsibilities and be provided with the necessary training and advice.
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