By Lori Pizzani, Mutual Fund Careers Editor and Columnist
July, 2002
What's Leadership Got to Do With It?
There's no debate. Every organization, whether it's a global mutual fund company or a local mom and pop convenience store, needs both leaders and followers. Leaders are those exceptional individuals that possess the skills necessary to carve out new opportunities, blaze new trails and successfully lead the masses into new arenas.
In a nutshell, leaders are those rather rare individuals who simply know how to "motivate others to get things done that need to be done," notes Emory Mulling, Chairman of The Mulling Companies, an outplacement and leadership development firm in Atlanta, and author of the new book "The Mulling Factor: Get Your Life Back on Track by Taking Control of Your Career."
According to Mulling, "leadership is determined by those that the leader needs to lead." A sales manager, for example, is able to lead other sales people because he or she has the necessary experience and skills, know the quirks of the product or service, and knows the ins and outs of the business or industry.
Moreover, there are many different types of leaders, including military leaders, business leaders and leaders of non-profit organizations. While the environments may differ, the skill sets are very similar, Mulling added.
From a practical standpoint, there are really two different ways to define leadership, notes Kevin Cashman, CEO of LeaderSource, a leadership development and executive coaching consulting firm in Minneapolis. Positional leadership is defined by the role of the leader versus followers within a hierarchical structure.
But there is also "personal leadership" which defines itself through an authentic, self-expression that creates value for co-workers, employees, and even customers, he explains. In essence, we are all personal leaders because "we're all the CEO of our own lives" whether or not our job function includes a formal leadership role, he adds.
Debunking Leadership Myths
Although leadership is a readily accepted concept, the perception of what leadership is can very often differ significantly from person to person and company to company agreed the experts.
"Very few companies truly articulate what they mean by leadership," chides Cashman. "Everyone just assumes that everyone knows what it is." In addition, when asked what specific qualities a leader should possess, most individuals can easily rattle off a laundry list of attributes. The challenge is that reality is quite different. It is impossible to find any one person who actually embodies each and every one of those attributes, suggests Cashman. "We create this mythological view, but the problem is that no human being can be all of these things."
Another misnomer is where corporate executives says that they want "leaders at all levels," Cashman adds. The reality is that only the most senior leaders really are the leaders, and lower level "leaders" are, well, higher level followers.
Another myth regarding leadership is that leaders have to be masculine to be leaders, said Mulling. (Sorry, guys, there have been many exemplary women leaders.) Furthermore, a common myth is that leaders have to be hard or loud, Mulling adds. Neither is true, and good leaders do run the risk of becoming too hard or too loud for their own good (just look at General Patton.) And lastly, "you don't have to be popular to be a leader," says Mulling. Successful leaders aren't necessarily liked, but they are respected, he adds.
Possession is 9/10 of the Law
Is possessing leadership skills important?
You bet it is, say most corporate coaches and leadership development pros. "Leadership is increasingly more important," comments Cashman. "When the world moved more slowly, it wasn't as important. Now, with the increase in information, globalization and economic changes, there has never been a greater need for leadership," Cashman said.
Setting aside the age old debate over which came first, the chicken or the egg, one of life's most pressing questions is: are leaders born or made?
"Yes, and yes," quips Cashman in response. While there is definitely a genetic component to becoming a leader, there are also cultural elements that come into play, he notes.
"The basic skills of leadership are born with someone. But then they hone their leadership through training," comments Mulling. Most real leaders surface and are identified very early on, usually among children in the early school years, he says. However, once a leader, not necessary always a leader, he points out. "Leaders can have catastrophic events occur that derail them," Mulling said.
Sharing Common Traits
While leaders may possess different leadership styles that work best for them, most leaders share some very basic traits, Mulling explains.
First and foremost, they have to possess a desire to be a leader, Mulling tells. Secondly, leaders must be able to motivate others. "You need one central leadership to take a group in a certain direction. The most successful companies are successful when everyone is on the same page," he notes.
In addition, leaders possess a strong sense of ethics, and are quick to set the example for everyone else, Mulling adds.
Mutual Fund Companies Fostering Leadership
Have mutual fund companies seen the benefits of fostering leadership among employees? Yes, many have.
At American Century Investments in Kansas City, learning is a big part of its working environment. The firm offers numerous opportunities to hone skills including a separate Leadership Development Program designed to encourage the development of leaders (defined as "high potential" people.)
The Leadership program was conceived of in 2000 and rolled out one year ago on a department by department basis. By the end of July, 30 individuals from three departments will have been identified as leaders eligible for inclusion in the program, said Helen Miller, senior consultant, leadership development with American Century.
The program, which will expand to eventually encompassing the entire organization, plucks out those identified as future leaders from the first line of management all the way up through the director level. Special skills training, classes, and seminars are offered free of charge to eligible employees, with the understanding that becoming part of the program does not guarantee a promotion, Miller notes. Each selected future leader must continue to annually qualify for the program.
The program includes taking employees to a satellite facility so they can hear many well-known corporate leadership speakers (Jack Welsh, and others.) It also includes a mentoring program which pairs leadership candidates with more senior leaders one or two levels higher within the organization and usually from another business division, Miller adds.
The biggest anticipated benefit is in employee retention, notes Kyle Orndorff, Director of corporate human resources at American Century. "Retention hasn't been a significant issue for us, but will become a plus for us as we seek to retain our top leaders and potential talent." Building the leadership development program across different departments also serves to get these future leaders networking. "Silos get created and leaders focus on just what they do. But the networking allows them to share experiences with each other," Orndorff adds.
At AIM Management of Houston, leadership training bubbles up from the bottom, but isn't quite as formal.
When a company manager expresses an interest in becoming a leader, the firm takes a 360-degree look at the individual by soliciting comments from his/her peers, boss, subordinates and others. This independent assessment is then used with employees to help them identify what classes to take, books to read, etc.
Performance Management training also weighs heavily into the equation as employees are given performance reviews, and taught how to perform performance reviews with others. From these performance reviews comes a needs assessment of specific classes individuals can benefit from taking, notes Paula Kornguth, employee development manager at AIM.
AIM also sponsors an internal leadership forum, which arranges for outside corporate leaders to speak to employees. The firm polls its managers to see what topics they are interested in and what speakers they would like to hear from
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Leadership: Bogle Style
This past April John C. Bogle, the founder and former chairman of The Vanguard Group, gave a speech on leadership that we thought was worthy of a mention here. In his speech, Mr. Bogle discussed his humble beginnings, how luck and a mentor aided his career growth, what he saw as his career missteps and what led him to create The Vanguard Group, with its very unique culture. (Never heard the story surrounding Bogle's entree into the mutual fund world? Now you can read all! This speech details his less than meteoric rise to the top.)
Since leaving Vanguard, Bogle has been the president of The Bogle Financial Markets Research Center that was established on January 1, 2000. The Center supports his ongoing work on behalf of investors. Since he stepped down as CEO of The Vanguard Group in 1996, Bogle has been studying, writing, and speaking about issues related to the financial markets and mutual funds.
To read the full text of Bogle's speech "Leadership: Creating a Firm with Character" go to: www.vanguard.com/bogle_site/sp20020410.html
With his permission, we have peppered some insightful leadership-related quotes from. Bogle's April speech throughout this column of Street Talk, so be sure to watch for them. We have dubbed them "Bogle-isms." We are also happy to share here, with our readers, his "seven secrets of effective leadership," as excerpted from his speech.
John Bogle's Seven Secrets of Effective Leadership:
1) Remember virtue, and be as virtuous as you can.
2) Be yourself. People can spot a phony a mile away.
3) Don't forget humility, and acknowledge the role that luck and mentors have played in your success.
4) Character counts. If you want to build an enterprise, build one with character.
5) When a door slams, have faith that a window will open.
6) Human beings are what business is all about. Communicate that idea both in word and deed, endlessly.
7) And never, never forget that the best leaders are servants too.
Bogle-isms:
"Most leaders are intelligent; few lack determination; most trust their people and like to get things done; virtually all work hard; and their strong points usually include some courage and creativity."
Communication is the Key to a Positive Reputation
Survey says....watch what you say! In fact, what you say and how you say it is the number one factor in shaping a worker's professional reputation at the office.
So says a survey of 567 full-time employees developed by OfficeTeam, a staffing firm in Menlo Park, Calif. According to the survey, 49% of respondents cited a person's communication style as having the biggest impact on their workplace reputation. (Second biggest impact was how a person conducts him/her self when the boss is out of the office.)
To effectively communicate with co-workers and executives, OfficeTeam's executive director Liz Hughes recommends these tips:
- Keep your communications short -- whether by e-mail, voice mail, memo or meeting, get to the point quickly.
- Remember your manners -- remember to say "please" and "thank you" and be nice to people.
- Choose the right words -- when e-mailing, innocent words can often appear more intense. Also, be very specific in requesting action, and always double-proof messages for spelling, grammar, and meaning.
- Learn to REALLY listen -- Give a speaker your undivided attention and resist the urge to finish others' sentences.
"I cannot overstate how important communication is to the leadership of any group, of any size, with any task."
Better Living Through Technology
A full 82% of employers believe that technology will change but facilitate their relationships with employees. The survey of 200 employers, conducted by human resources firm Buck Consultants, found that all believed their highest priority was the development and enhancement of communications technology, and that 84% expected changes in employee performance and attitude as a result of more extensive use of technology.
The survey also found that 60% of respondents offer online benefit information to employees, while 40% sponsor online training and 38% use online workgroups.
But the dark side is that some respondents said that the expected greater efficiency resulting from improved response time from employees could create greater employee stress on the job.
"If leadership has to do with the passion to undertake such a mission, and the ability to persuade other human beings to go along with you, the journey ought to be exciting and the destination worthwhile."
Are You an Executive Trolling for a New Job While Still Employed?
If so, you are far from alone! In fact, among 150 executives polled by Accountemps, the temporary staffing firm, 69% confided that they were "very comfortable" or "somewhat comfortable" searching for a new job while still working.
According to Max Messmer, chairman of Accountemps, while many are reluctant to resign from their current gig before they've found a new job, it can backfire if a superior learns of their intentions. Messmer counsels job seekers to whenever possible schedule interviews or other search-related activities for non-business hours, and NEVER use their present company's supplies or equipment for their job search activities.
Summer Hiring Outlook is...Cautiously Optimistic
Here's the overall regional job outlook for July through September 2002 from staffing firm Manpower:
Northeast:
Expect a higher degree of hiring activity not evident since mid-2001. Of particular note are jobs in manufacturing, finance, insurance and real estate sectors, all of which showed the greatest growth last quarter.
Midwest:
Anticipate an increased demand for workers, tempered by the lingering effect of the recession.
South:
The southern region has shown the most improvement from the outlook three months ago, but barely surpasses other regions in job potential.
West:
Expect to see somewhat of a renewal of confidence in job generation. The finance, insurance and real estate industries are predicting healthy increases in employment potential this summer.
"The going was tough, and my vision so crystal-clear about what I wanted Vanguard to be-what funds we should have, how they should be managed, how to drive our costs to rock-bottom-levels-that I may well have been closer to benevolent (I hope!) despot than servant-leader."
Considering Grad School? Here's What's Hot...and What's Not
According to GradSchools.com, the online site for grad school info, trends are a'changing. Here's which graduate programs are red hot and which are getting an icy reception among students in 2002:
HOT
1) Creative Writing
2) International Relations
3) Sports Administration
4) Kinesiology (Exercise and Sports Science)
5) Educational Counseling
COLD
1) Information Systems
2) Information Technology
3) Mechanical Engineering
4) Forensics
5) Human Resources
How Do Companies Recognize Their Top People?
According to the new book "High Performers -- How the Best Companies Find and Keep Them," by Dr. Leon Martel, senior fellow at The Conference Board, while promotions, bonuses and stock options are still the favored way to recognize top employees, other innovative perks are doled out. Here are some:
-- MBNC provides limousines on employees' wedding days and adds $500 and a week of paid vacation to newlyweds.
-- Harley Davidson CEO Jeffrey Bluestein personally signs employee birthday cards, adding short notes to each.
-- CDW celebrates employees' birthdays by flashing their names of a huge electric sign on a major highway.
-- Veteran (15-year) Microsoft employees were invited to a luxurious dinner at Chairman Bill Gates' home.
"In one of my early talks to our tiny 28-person original staff, for example, I said, 'I want every one of us to treat everyone else here with fairness. If you don't understand what that means, stop by my office.' I constantly stressed the values that I wanted Vanguard to exemplify, above all the need to recognize that both our clients and our staff be treated as 'honest-to-God, down-to-earth human beings, with their own hopes, fears, ambitions, and financial goals.'"
Fortune 1000 Cos. Weigh in on Top Security Threats
What do corporate security professionals see as the biggest threat to their firm's security? Not surprisingly, surveyed professionals now say that terrorism and its effects, as well as disaster recovery, are greater concerns this year. But workplace violence continues to hog the top rank in the annual survey conducted by Pinkerton Consulting & Investigations, the security company of New York.
Believe it or not, according to Pinkerton workplace violence results in three deaths daily and thousands of injuries each year, and collectively cost employees over $36 billion each year. Here are the ten highest ranking security threats:
Top Security Threats/Management Issues
1. Workplace Violence
2. Business Interruption/Disaster Recovery
3. Terrorism (Global and Domestic)
4. Internet/Intranet Security
5. Employee Selection/Screening Concerns
6. Fraud/White-Collar Crime
7. Unethical Business Conduct
8. General Employee Threat
9. Property Crime (external theft/vandalism)
10. Drugs/Alcohol in the Workplace
"Talking the talk without walking the walk will not get any leader very far."
