2009 was tough!

Like people throughout the rest of the world, many South Africans found themselves working longer hours, taking on additional responsibilities and experiencing higher levels of stress. During the year, some one million people found themselves out of employment given the economic crisis. Those in leadership positions were not immune. We have seen over the last year the departure of many chief and senior executives – some because of the economic situation but in many instances for the wrong reasons: abuse of power. Why is it that so many of our people in senior leadership positions fall from grace that ordinary people find it so hard to digest that such people are called leaders. The companies they lead, both private and public, are not small but are rather multi-billion rand institutions that provide the livelihood for thousands of South Africans.

Is there a sense that these so-called leaders are appointed because they have the required competencies and capabilities? Are there other attributes, like having the right connections or belonging to a certain political party or maintaining the network or being at the right place at the right time, or appointed by people who are none the wiser? Not only are we lacking in the area of skills, but also more so at a leadership level, where personal ego and power need to be replaced by service and common good for our country.

Stories that made the news

Here are some of the stories that made headlines last year:

• “Handshake not golden enough” – CEO of Super Group departs with a R12.8-million payout in the last year of employment, after the company nearly collapses with R3-billion in debt.
• “The upside of coming clean” – PPC confesses to taking part in a cement cartel, which includes price fixing, in return for some leniency on a possible fine of up to 10% of turnover. PPC’s latest results could mean a fine of some R680-million.
• “Land Bank cleans up act” – Government has injected a further R3.5-billion into the organisation after investigations revealed that executives were helping themselves to money intended for business purposes.
• “Armscor chief Thomo fired”– The board has asked its chief executive to resign for a host of alleged indiscretions ranging from sexual harassment to poor leadership, including releasing confidential information.
• “Fat cats milk R100-million fund” – the AgriBEE fund meant for the development of deserving farmers was used to bankroll the lavish lifestyles of politically connected fat cats.

Other organisations where the chief and/or senior executives made the headlines in 2009 for the wrong reason include: South African Airways, Bonitas, South African Broadcasting Corporation, Huge Group, Transnet, Simmers and Jack, Nafcoc to name a few.

What makes these senior executives operate the way they do?

Values!

South Africa remains high on the list when it comes to fraud and corruption – the recent Transparency International corruption perception index as well the fifth Global Economic Crime Survey 2009 by PricewaterhouseCoopers confirmed this. And Leon Smith of MIE, which does background checks, said at the 2009 Southern African Fraud Prevention Services: “We are world leaders, World Cup champions – in lying and omitting information.” Martin Welz of Noseweek supported the view by adding, “The rot was at the top of organisations. While much time and effort is spent profiling small-time thieves, often the thief looks like the chairman of the board.”

It seems that the desire to keep up with the Joneses coupled with our culture that favours short-termism, and the challenges of doing an honest day's work, are turning executives into corrupt employees. We are caught up in the world of bling – the biggest house, the affluent area, the fancy branded clothes, flashy expensive cars and a morality that remains questionable.

How do we develop leaders for the future? In the book, Good to Great, Collins mentioned that to operate at the highest possible level, leaders need to channel their ego needs away from themselves and into the larger goal of building a great company. It requires a paradoxical blend of personal humility and professional will. According to Collins, leadership at the highest level can be learnt if the seed exists. If not, never in a million years will they do. These people will never subjugate their egoistic needs in building something larger and more lasting than themselves. They will continue to seek fame, fortune, adulation, power, whatever, and not concern themselves mainly with building, creating and contributing to the development and sustainability of humanity.

The world at work

Many in leadership positions are experiencing another crisis – a personal one that, together with the demands and pressures of business, is causing much trepidation in the areas of values, relationships and competencies. Lack of trust, not leading by example, in-fighting among the leadership team, inconsistency in decision-making, a focus that is too inward, clutching at straws by diving into the detail, again changing the goal post and so forth are some of the words echoed in the working corridors of the business world.

However, working with leaders in both the corporate and public sectors reveals some of the more challenging personal questions. These range from the fear of failure, lack of power/control to dealing with the unknown, anger as a result of the personal effect change is having, or the more pressing question: When will it be my turn?

Other questions include: Are these the people (leadership/executive team) I really like to work with? Do I have the chutzpah to take the business through the downturn? What values am I holding on to and are my actions in line with them? Is this all worth while? Is there more to life than this job? Do I have the energy for this ‘stuff’? These are not the kind of questions one raises in a competitive workspace although they remain difficult questions, which take up valuable time, effort and energy, sometimes to the detriment of performance – key during times of adversity.

For many in leadership positions, this crisis is the first in their career and it shows in their leadership behaviour or the lack thereof. If they turn easily taking comfort in expressions such as restructure, reorganising, changing roles, additional responsibilities, fewer people, more questions, complexity of solutions, or no one right way, they are likely becoming comfortable with the uncomfortableness, and their everyday language and behaviour gravitate to these issues.

Ram Charan et al mentioned in the book, The Leadership Pipeline, that unless one spends sufficient time at each level of the leadership pipeline, learning and displaying the values appropriate at that level and building capabilities, any crisis is bound to reveal one’s shortcomings. Medical research shows that crawling, standing, walking and running are a natural part of human development, and missing out on the formative steps has an impact on individuals later in life. In the same way leadership growth and development is a process, and missing some of the milestones has an impact later in one’s career. For many, their leadership position is not in line with the maturity level of the leader. Recent research by McKinsey shows that most people in leadership positions retreat during crisis to focus on performance, delivery and making the numbers, and even when motivating their people, their positioning has been driven by direction, performance and effort. Hence, both organisations and leaders themselves may need support.

Conclusion

Help, support, or assistance - call it what you will - can no longer be seen as a sign of failure or weakness or not knowing the answer, but rather one of continual learning, exploring differently and experiencing relationships with wider lenses. If, as leaders, you are truly committed to be of service at a leadership level, the authentic self needs far greater exposure. This implies being true to yourself and true to others. One without the other is not good enough.