Leadership As a Corporate Value

Friday, January 9, 2009

Some values are more focused on the internal organization, on organizing on what is important from the company's identity... other values are more concerned about what happens outside, on the business and world that is changing. Leadership is an example of the latter.

An example of this value is the following: "Leadership vocation in all the markets where we operate, with the best teams and always focused on customers and results. (from a financial service provider)

It is not a coincidence that this example is selected. Why for example did we see so little leadership in the financial institutions; banks, brokers, investment companies, governmental organizations, why did they all follow the flow? Why was there no control, why was there so little difference between the companies in the financial market.

The next dilemma is resolving the distinction between (internal) leadership versus customer behavior; should a bank sell products to clients of whom they know they cannot really afford them? Is "helping them," leadership or just following the hype where everything is possible?

Another difficulty with leadership as a value is the question of its meaning: what does leadership embrace?

Another example: "Leadership demands courage, vision and integrity." That is one way of looking at it. But there are many other elements of leadership.

More examples of statements:

  • We identify and develop potential
  • We are never satisfied being average in our market place. We constantly introduce new products and services to our clients unmatched by the market
  • We will be a world-class leader in every aspect of our business and in developing our team leadership skills at every level; ... management performance, design, products; and in financial results.
  • ... in the values of integrity, leadership and commitment.
  • Pioneering the next realms of business; being a world-class leader in every aspect of business from ... to ...
  • visible leadership

Then there are companies that restate the corporate values towards leadership values: in such a case the values for leadership are previously identified and made explicit to use them. For example:

Integrated, open, simple.

These values represent a vision of current business landscape and what is required to lead.

With leadership as a corporate value it is more or less the same as with job-titles: the "retention manager" for example. It is visible and clear for everybody that retention is key, but then the next thing is: what is it and how do we achieve it. Do we need an explicit job for it? With "leadership" it is the same. Why do organization do not explicit the values that they need and use them? One response would be: because leadership as a value is sexy. It looks good.

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