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    Authentic Leadership- Linking Leadership to the Bottom Line


    The connection between leadership authenticity and performance is crystal clear. Long established research by some of the most reputable firms in the world affirms the value of an engaged workforce. Engaged employees are more productive, flexible and more likely to commit extra effort to the organization. So, how do you build an engaged workforce? The answer is simple; demonstrate authentic leadership. Authentic leadership is the passion and capability to transparently engage, motivate and move people toward achieve of shared goals. Authentic leadership is the most efficient and effective way to engage workers. If you want a better bottom line, build your leadership authenticity.

    Despite the fact that the concept of authentic leadership is simple, the practice can be challenging. It is for that reason we created a framework for evaluating and developing personal leadership authenticity. It is made up of three components:
    o       Character
    o       Context
    o       Competence

    Since people lead from their values, it is critical to focus leadership development on who you are before focusing on what you do, in other words your character. Context is the second component. This is where you lead. Leadership happens in real time, in a real setting, with real people. Consequently, being an expert in the environment in which you lead is essential to leadership authenticity. The third component is competence. Competency is the key to leading well. You must be capable and credible as the leader.

    Our experience tells us that most leaders fail because of weakness in one or more of those three areas. With that said, the largest, most dramatic, impact-filled failures occur when character collapses. There are seven leadership failure points related to character, making it essential to measure, consider and develop character that leads to authenticity. The seven leadership failure points are:
    1.       Wrong values
    2.       Issues of fairness
    3.       Aggression and arrogance
    4.       Performance without purpose
    5.       Lack of innovation
    6.       People as assets
    7.       Inconsistent behavior

    I’d like to share a story about Carl. Carl seventy years old and has been at the CEO of his organization for over ten years. During the course of those years, the organization visibly flourished. Growth and profitability steadily improved despite a periodically treacherous economy. The Board was outwardly pleased with Carl’s performance, but a few members quietly wondered if his unconventional leadership style was best for the organization.

    The Board could not point to specific performance issues, but they had a sense that something was amiss. The feeling was fueled by consistent staff turnover. Nothing dramatic occurred, but some wondered if the sudden departure of key members of the small team had something to do with Carl’s methods. As the economy improved, the feeling turned to panic when the entire staff turned over in less than 30 days. Carl explained to the Board that each departure was unrelated. What the Board soon found however was that the sudden turnover and even some of the turnover in past years was in fact directly connected to Carl’s leadership. After conducting several exit interviews, the Board came to learn that even though the organization’s financials were strong, the work environment was one of bullying and intimidation. In fact, the organization succeeded despite the callous treatment the staff endured under Carl’s leadership. Carl told the Board that the departures were because he had high standards, drove hard for success and most people simply could not measure up. The Board appreciated his drive for success but was adamantly opposed to his dictatorial and demeaning leadership approach. It seems Carl yelled at staff members, then apologized profusely followed by promises never to do it again. Of course he did repeat the same behavior so often that the team members became accustomed to the outbursts. It was not until one new staff member pointed out to the rest that the behavior was unacceptable that the whole team began to consider a change. As the economy improved, the disengaged team members began looking for other positions. Within two months, the entire team turned over.

    Carl’s performance masked deeper problems. Even though the numbers reflected positive company growth, the organization was not healthy. Carl’s challenge was his character. It was what led to an inauthentic leadership style that disengaged his team.

    To begin building your authentic leadership, use our checklist to evaluate your character. Each of the seven areas represents a potential authentic leadership failure point. 

    Research has established the value of an engaged workforce. Research also indicates that authentic leaders inspire employee engagement. Authentic leadership is the most efficient and effective way to engage workers, consequently, improving the bottom line.

    In January, we will discuss the next component of leadership authenticity- Context and in February, the final component of leadership authenticity- Competency. Character, Context and Competence, together create the framework for authentic leadership.

    http://www.leadershipadvisors.com/index.php/authentic-leadership-checklist/
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