What Good Leaders Look Like

Good morning everyone

We know the numbers.

In the US, women constitute 44% of the workforce in S&P 500 companies but occupy only 6% of the CEO roles. At the beginning of 2019, The Conversation reported that in South Africa “no female CEOs (are) running any of the country’s 40 largest listed companies. In addition, women make up only a fifth of the directors who serve on the boards of companies listed on the JSE.”

If one dropped drop ‘good’ from the title of today’s letter, in other words, if we simply reflected on “what leaders look like”, the answer would be simple. Tall male, with a wider than average face.

On a sober Sunday morning, we can all agree that gender, height, or face-width do not competence make.

However, research shows that we consistently make a series of unconscious calibrations that fit socially endorsed stereotypes, that very often don’t reflect actual leadership efficacy. And, when that comes down to less obvious dimensions like perceptions of confidence, the margin of error becomes even greater.

In a world in crisis, appointing good leaders is more important than ever. That is where we’re going today.

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/ Strategy

Thomas Chamorro-Premuzic’s Why Do So Many Incompetent Men Become Leaders (and how to fix it) is a brilliant read.

Packed with pithy subtitles like “why narcissists are more likely to become leaders” and “why men are more likely to be narcissists (sorry, guys, it’s just science)”, it grabbed my attention.

However, it’s not a series of cheap laughs. Backed by extensive research Chamorro-Premuzic sets about explaining why commonly held (but incorrect) perceptions of good leadership, results in many incompetent leaders being appointed.

He says, “traits like overconfidence and self-absorption should be seen as red flags. But instead, they prompt us to say, “Ah, there’s a charismatic fellow! He’s probably leadership material.”

He argues that with a more deliberate, more evidence-based approach to leadership recruitment women (and more competent men) would inevitably occupy more executive roles than is currently the case.

He centers his book around this premise.

The evidence-based view of a good leader is someone who:

• Builds winning teams.
• Is known for helping their team succeed.
• Sees their own success as being because of their teams’ abilities.
• Creates unity around a shared purpose.
• Is both competent and demonstrates integrity.

Ironically, many of the signals that we look for in recruiting leaders do not mean that they build good teams. Indeed, even worse it means that we miss out on a whole array of leadership potential because they don’t meet the stereotypical picture.

He argues “we must put in place bigger obstacles for the disproportionate glut of incompetent men who are so adept at becoming leaders, to everyone’s peril.”

What does this mean practically?

As a starting point, when appointing a new leader, check. Is there clear evidence that they have built strong teams around them? Are they known as people of integrity?

We all use interviews. Be cautious about falling for the person who makes declarative statements. We are attracted to bold declarations. Yet, the boldness may be a clue to narcissism and belies the complexity of most modern organisations.

Chamorro-Premuzic argues that narcissism both results in more leadership appointments and it is devastating for organisations. It works because narcissists believe unequivocally that they can do it and so project the confidence that attracts us. It is disastrous because they don’t develop the people around them that are the heartbeat of any great business.

Be open to the quieter candidate. Allow yourself to be open to the person who sees the complexity. They may not be the right candidate. However, the evidence suggests that we MISS many great candidates because we look for the wrong signals. And even worse because we privilege those signals, we end up appointing incompetent leaders.

Critically, know your business and its people well. Although the essence of leadership talent is universal, context and fit are important criteria in influencing a leader’s ultimate efficacy.

/ Self

Leadership requires three types of capital – intellectual, social and psychological.

Social capital fascinates me, as often the shorthand for this is the gregarious, extroverted well-connected person. Undoubtedly that person can add enormously to a business. However, who are the other people in your business who are quietly connecting across offering solutions and insight?

Being alive to those people, enables you to identify leadership talent and key nodes of influence in the business.

Prof Rita McGrath, of Columbia Business School, argues that being connected to those people is essential in enabling you to ‘see around corners’.

Psychological capital has three dimensions – bright, dark and inside.

Bright side traits such as extraversion, curiosity and emotional stability account for up to 40% of the variation in leaders’ performance. However, you don’t need all of them. Having a few bright lights can make a difference.

Dark side traits cluster into distancing traits, seductive and ingratiating traits. Each of these, unmanaged, can overshadow positives, destroying the people who drive the business.

Chamorro-Premuzic gives the example of “leisurely passive-aggressiveness – pretending to have a relaxed, polite attitude while actually resisting coorperation or even engaging in backstabbing” as a potentially destructive distancing trait.

Inside refers to your moral compass and values.

All these dimensions have a genetic and nurture component but can also be improved with conscious intent. For example, a spiritual practice will help you refine your moral compass. As a leader, creating a safe way for others to give you feedback, can help you manage your dark side.

/ Soul

Vannie Kaap is an innovative Cape Town fashion brand. At least that’s what they are superficially. Their t-shirts and hoodies proudly display colloquial Cape Town irreverence. Who couldn’t love a mask emblazoned with “Tsek Corona”? For those of who aren’t South African, the closest approximation is giving Corona the middle-finger.

However, they are far more than jesters.

This week, they posted a commemoration of Ashley Kriel who was killed by apartheid police forces at the age of 20. These are the closing lines of their post:

“I don’t think I can dala what I must.
Ashley Kriel died so that you can have the freedom to at least try.”

Dala is a Xhosa word, that can be translated as ‘create’.

A useful question in appointing a South African leader may be “Who was Ashley Kriel?”

Take care out there. If you’re doing interviews this week. Good luck!

Please forward this letter to anyone you know who is responsible for appointing people to leadership positions.

Best wishes

Karl

PS: Not all my reading makes it into this letter, some of it turns up on my LinkedIn and Instagram accounts. Find me there.

(This letter was first published on July 12 2020)