Real Leaders Don't Boss Read online

  My leadership has been recognized by the U.S. Senate, the U.S. Navy and Army, and many nonprofit and business groups. I have served on five Congressional leadership committees for U.S. Senators and members of the House of Representatives. I have also been privileged to serve on several founding boards of directors and trustees, as well as a number of longstanding boards. Board service enables you to help an organization by utilizing your leadership skills.

  Today, I am the California-based founder and president of Eich Associated, a strategic leadership, branding, marketing, communications, and management coaching firm, as well as an adjunct professor at California Lutheran University, a frequent speaker and blogger on leadership and marketing, and a contributor to various business and professional publications.

  My academic background includes a doctoral degree in organizational behavior and communication from the University of Michigan, a master’s degree in personnel administration from Michigan State University, and a baccalaureate degree in communication from Sacramento State College. I’m also a graduate of Leadership San Francisco and the Stanley K. Lacy’s Opportunity Indianapolis leadership program.

  In the following pages, I will share the thoughts, observations, and experiences that have helped me recognize what makes a great leader. It’s a mold that’s built partly on history, partly on experience, and with a big dose of reality. Thus, Real Leaders Don’t Boss is not another book of quick tips and quips to get employees to do what they are told, a rehash of overused corporate-speak, or essays of worn-out textbook thoughts and ideas from leadership teachers or coaches with little in-the-trenches experience. Instead, this is designed to be an insightful book that delves into the usually overlooked philosophy and fundamentals behind true leadership and how to apply them in life.

  In the following pages, I will examine what it takes and how to achieve real leadership. I will draw on my experiences with organizations including the Harter Packing Company, the California Department of Agriculture, the Boy Scouts, Steelcase, Inc., the U.S. Navy and Marine Corps, the University of Michigan, Indiana University Medical Center, Blue Shield of California, and Stanford University Medical Center. I will also help answer the central question, which is not “Where will we find the world’s future leaders?” but “How can we develop many more leaders who can chart a long-term course, tackle urgent problems, and teach as they go?”

  Joining the U.S. military before I graduated from college was pivotal in helping me learn about the right and wrong ways of leadership. Each of my experiences in the Navy—especially those that involved working with U.S. Marines every day for nearly two years—was a growth opportunity that allowed me to sharpen my leadership skills by observing and interacting with superb leaders. I learned to differentiate between what makes an effective, admirable leader and what does not. Real leadership is definitely not just talking the talk.

  In the corporate sector, I have been fortunate to cross paths with many of the best leaders in the world and to observe them in action, especially how they inspire others to greatness—and how the pseudo-leaders don’t. My experiences in academia have hopefully helped me hone my mentoring skills so that I can contribute to the discussion about creating a new culture of leaders.

  So get ready to improve your work, your life, and the lives of those around you as you learn to understand and embrace the concepts that foster real and true leadership. I welcome your comments at www.eichassociated.com/contactus.aspx?page=5.

  Chapter 1

  The Meaning of Real Leadership

  I used to think that running an organization was equivalent to conducting a symphony orchestra. But I don’t think that’s quite it; it’s more like jazz. There’s more improvisation.

  —Warren Bennis, author of On Becoming a Leader

  Real leaders are rare in today’s fast-moving, financially driven world. In their place are fast-track wannabes and imposters, intent on instant gratification in the form of quick (and unsustainable) bottom-line results. These pseudo-leaders flaunt rigid controls instead of passionate leadership. They seek to drive employees through dominance rather than devotion, and opt for personal glory over the success and interests of others. In part, today’s struggling corporate performance, as well as the trend toward dissatisfaction in the workplace, reflect these shortcomings in leadership.

  Today’s realities, especially with the rocky economic environment and the growing numbers of Millennials (also known as Generation Y, those workers born somewhere between 1980 and 2000) joining the workforce, calls for leadership done right. It demands real leaders who can, and do, make profound differences in the lives of those with whom they interact, who help others achieve greatness in the workplace and in life, and who boost professional and personal bottom lines in the process.

  Even strong companies must learn to become more adept at handling marketplace turbulence faster and more skillfully, or their leaders will risk losing their edge, and the company its strength, over the competition. Real leaders recognize that they must maintain the success that has already been accomplished, and the culture, integrity, and brand that defines it. Only then can they continue to institute change successfully and propel a company forward.

  Leadership Shortcomings

  The leadership gap today is painfully evident. Workers are dissatisfied with their jobs. Middle managers complain of a lack of top-level leadership—one that provides motivation, fosters dedication, promotes recognition, and offers long-term direction. Even corporate leaders recognize the disconnect and its threat to future economic recovery and growth. After all, leaders are needed not only to weather an economic storm, but afterward, to grow and improve battered companies for the future.

  Consider some of the facts and figures that, in part, reflect the shortcomings of leadership today:

  Employee job satisfaction is at an all-time low. It’s not a cyclical phenomenon or simply the result of downside economics. The numbers reflect a longtime downward spiral. Only 45 percent of American workers were satisfied in their jobs in 2009, according to a survey released last year by the Conference Board, a group of New York–based global researchers.1 That’s down from 61 percent of workers who were satisfied with their jobs in 1987, the year the survey began.

  Talent—more specifically, leadership development—is among the major challenges cited by corporate chiefs today. That’s according to “CEO Challenge 2011,” a survey of more than 700 CEOs, presidents, and chairmen of companies around the nation by the Conference Board. “CEOs selected the internally focused actions of improving leadership development/grow talent internally, enhancing the effectiveness of the senior team, providing employee training and development and improving leadership succession as the key strategies to address talent challenges,” the Conference Board said in April 2011, when it released its report.2

  Middle managers aren’t happy with their bosses, either, according to an August 2009 report from McKinsey & Company and reported in its McKinsey Quarterly. Twenty percent of C-suite and senior executives and 30 percent of middle managers are not at all satisfied with their superiors’ performance. That’s indicative of “middle managers’ overall lack of connection to their current companies,” the report said.3

  Discontent and disconnect brew elsewhere among middle managers. That same McKinsey survey shows:

  Twenty-seven percent of middle managers say it’s risky to their careers to speak up about difficult decisions when their point of view differs from that of more senior managers.

  Only 36 percent of middle managers say they are very likely or extremely likely to remain with their current employer two years from now.

  Huge numbers of top-level executives aren’t satisfied with their own performance, especially when it comes to people skills. Only 26 percent of C-suite and senior executives and 17 percent of middle managers are very satisfied with their own overall performance.

  No matter who is taking the surveys or keeping track, leadership is lacking. The resulting divide among wo
rkers and senior corporate officials has taken on crisis proportions, especially in light of poor economic conditions and the needed presence of leadership vision, guidance, and direction for any recovery.

  General Motors, prior to its U.S. government bailout in 2009, was a prime example of leadership failure. The giant automaker was spiraling downward. For decades, its leadership had failed to heed warnings that its labor costs, vehicle quality, and gas-guzzling automobiles would have to change to remain competitive. The company’s leadership was unwilling or unable to do something about the high costs of pensions and wages, nor did it improve vehicle quality and fuel efficiency. The buck stopped at the leadership level, and ultimately GM’s leadership came up short. They did not react to the demands of the vicissitudes of fortune, and the company ended up on the brink of bankruptcy in 2009 until the U.S. government’s controversial $50 billion bailout that stipulated a temporary majority ownership in the company. Whether or not anyone agrees with the bailout, and whatever GM’s future, the company is much stronger today because of new leadership that is, at least, trying to connect with reality.

  What Is Real Leadership?

  A leader is anyone in a decision-making capacity, formal or informal, who advances the strategic goals of the organization, who contributes mightily to institutional performance, and who treats people fairly, honestly, and compassionately. Real leadership goes well beyond that textbook definition, however. Real leaders create the right conditions for others to lead. They do that in part by personifying the Eight Essentials of Effective Leadership:

  1. Real leaders don’t boss. They are calm in their style, yet have zero tolerance for bullies, who, in any capacity, undermine performance and morale.

  2. Real leaders have a central compass. They aspire to do what’s right and be a part of something bigger than themselves.

  3. Real leaders communicate with clarity, honesty, and directness, and know how to listen.

  4. Real leaders have a unique make-up. Their passion translates into a strong corporate culture.

  5. Real leaders value and support everyone they lead, out front as well as behind the scenes.

  6. Real leaders know when to get out of the way.

  7. Real leaders are accessible. They are humble and easily approached.

  8. Real leaders know the difference between character and integrity, and why it takes both to succeed.

  There are many “leaders” today who manifest some of these traits; a few demonstrate all of them. The great differentiator, though, is that real leaders embrace all of these principles all of the time. That’s a truism whether it involves leaders in business, government, the military, or private life. In the following pages, I’ll talk in-depth about each of these attributes, what they mean, and how you, too, can learn to embrace them. Almost all of us have the potential to lead in some capacity; we simply need to learn how to allow that potential to surface.

  President Obama, in a March 2011 speech about the military crisis in Libya, offered an interpretation of leadership in practice: “Leadership is not simply a matter of going it alone and bearing all of the burden ourselves. Real leadership creates the conditions and coalitions for others to step up as well; to work with allies and partners so that they bear their share of the burden and pay their share of the costs; and to see that the principles of justice and human dignity are upheld by all....”4

  Though he was specifically referring to the U.S. and NATO forces’ involvement in Libya, taken out of context and without any partisanship, his ideas build on the general definition of leadership. Real leaders not only take the helm, but they set the stage for others to lead, too.

  True and real leadership is a way of life that can and does make the difference in corporate bottom lines (both in good economic times and in bad), in competitive environments, and in the face of external or internal personnel challenges. For proof, look around at those businesses that have remained strong and have even grown during the recent recession. Chances are good that a real and genuine leader who subscribes to the Eight Essentials of Effective Leadership was at the top. Here’s a sampling of contemporary leaders across a broad range of industries, each with his or her own unique style, and each a great example of living leadership:

  Vicki Arndt, principal of the California-based Eagleson Arndt Financial Advisors. Arndt is a leader who inspires by her high degree of integrity, incredible personality and sense of humor, knowledge, and her deep sense of service as manifested in the many ways she shows she cares about people. Arndt has led her local Community Leaders Association and Rotary Club and is actively involved in polio eradication. Her leadership style is open, inclusive, and highly motivating.

  David Robinson, retired basketball star, NBA Hall of Famer, and one of the greatest basketball centers of all time. Robinson excelled as a student at the U.S. Naval Academy and led the Midshipmen to three consecutive NCAA basketball tournaments. He was Sporting News’ College Player of the Year in 1987 and he holds two Olympic gold medals. “The Admiral,” as he is known to many, has done plenty off the court, too, especially for inner-city youth. He and his wife, Valerie, founded and provide multi-million-dollar funding to Carver Academy in inner-city San Antonio to help build tomorrow’s leaders. Located on property that was occupied by a string of crack houses a decade ago, the school provides an education to mostly low-income children from pre-kindergarten to eighth grade. Carver Academy inspires students to exemplify leadership, discipline, initiative, integrity, service, and faith—the characteristics Robinson embodied at the Naval Academy and throughout his NBA career.

  Pat Riley, a New Yorker, a legendary NBA coach, and the current president of the Miami Heat. Riley has long been recognized for excellence in leadership. The author of Showtime: Inside the Lakers Breakthrough Season (Warner Books, 1990), Riley has played with or coached six NBA championship teams. What accounts for Riley’s phenomenal success? Though he was an average player during his league career, he became an inspirational coach and a superlative motivator, and is famous for his ability to magically and passionately guide million-dollar players to success.

  Richard Rush, president of California State University–Channel Islands. As a leader, Rush fosters remarkable optimism among faculty, students, and the community, despite a constant onslaught of budget cuts by the California legislature. Amid tough economic cutbacks, Rush has kept his university nimble while building a firm foundation of academic excellence. He has done so by developing innovative programs that include public-private partnerships. One such partnership is a collaborative nursing degree program with Cottage Hospital in Santa Barbara, California.

  Susan Murata, currently executive vice president of Silver Star Automotive Group in Southern California. In the middle of a recession, amid the coast-to-coast carcasses of lesser-led car dealerships, Murata exhibits tremendous business acumen and commitment to people and the community. She is an attentive listener and skilled strategist who has a knack for cutting through needless bureaucracy. Other organizations turn to her for enlightened leadership. She has held top leadership positions for her local Chamber of Commerce, Business Roundtable, and many service organizations. Among the secrets to her success are the strength of her personality, her work ethic, and her commitment—not only to volunteerism, but to whatever she finds herself involved in.

  Howard S. Holmes was a real leader, both in his community—southeast Michigan—and for his family-owned company, Chelsea Milling Company, which produces the grocery staple Jiffy Mix. In her book, Jiffy, A Family Tradition, Cynthia Furlong Reynolds writes, “Howard and Dudley [his twin brother] steered the company through family tragedy, the Depression, World War II, major ups and downs in the economy and the boom-days of the package-mix industry.”5

  Howard Holmes had none of the bluster, egocentric characteristics, or false bravado of some chief executives. Instead, he had an innate comfort in his abilities and shortcomings that enabled employees and colleagues alike to relate to him. His humanity was one of
the qualities that distinguished him from being a boss. He never made his employees feel they were inferior or less important. Once he even called me to say he would be a few minutes late to one of our informal breakfast get-togethers. I later discovered the reason why: after a problem in the mill, he had rolled up his sleeves alongside his employees and resolved it. Howard often referred to his employees—his second family—as “knuckleheads,” a term they were proud to be called. I don’t think the word boss was even in his extensive vocabulary.

  Nonetheless, times change. His son, Howdy Holmes, faced considerable challenges when he assumed the reins of his family’s company, but to his credit, he made changes incrementally and sensitively, reinforcing the core values of Chelsea Milling’s culture, teaming openness with interdependence. Under Howdy’s leadership as CEO, many suitors have been desirous of purchasing the Jiffy brand, but it is not for sale.

  Howdy had to guide Chelsea Milling into the 21st century. That included building new facilities, developing a stronger and larger management team, and establishing an online presence. He did all that while maintaining a tight connection to his employees with the help of what he had learned from his mentors—irreproachable values and personal attention to employ-ees—to which he added calculated risk-taking, management acumen, and strategic thinking.