Today I spoke with Narelle Kennedy, CEO of the Australian Business Foundation.
Narelle has impact via her connections to many businesses, government policymakers and to leading edge researchers - both nationally and internationally
Our conversation began with what Responsible Leadership means to Narelle. Narelle's quick response was...
"What is the opposite of Responsible Leadership? Is it ir-responsible leadership?"
Narelle questioned the meaning of “responsible leadership” as a separate category of leadership focused on ethics, values and corporate responsibility. Rather, Narelle explained, leadership is a broader, more robust idea.
Corporate Social Responsibility (CSR) forms part of the puzzle, as does sustainability, ethics, values and many other elements.
But ‘responsible leadership’ is much broader, it includes an appreciation of facts and mixing those facts with judgement, creativity and insight. Leadership involves both left brain and right brain activities.
Responsible Leadership should be seen in the context of all leadership, fully integrated as a part of being professional.
Leaders are not responsible for people, but they are accountable for the things people who report to them do.
An effective and good leader is accountable for outcomes. That is part of their responsibility. But leadership is not restricted to the top of organisations. Leadership occurs at all levels and in all functions of an organisation.
Paternalistic concepts of leadership, where the boss looks after and is responsible for subordinates, are out-moded. Leadership is more a two-way street.
The key concept is 'Empowerment'.
Perhaps instead of “Responsible Leadership’ we should be talking about “Empowering Leadership.” This is the first key concept.
Empowerment is not freedom to do anything you want. But it is a more dynamic concept than a single, authoritative, strong leader.
It mixes judgement with information, facts, intuition and both sides of the brain.
Empowerment helps those you are responsible for improve their lives, so they can improve the lives of those they care about.
The 2nd key concept for leadership is Context.
Look at what context you work within. If you are a large enterprise, your context is different to a small business.
In every context, leadership manifests itself differently.
There are some leadership fundamentals in any business, like making sure your financial, accounting and governance systems are in place.
But in a small family business, leadership will involve addressing the issues of family dynamics and succession planning difficulties.
If you are a large corporate, then leadership can be tested by your ability to understand the maverick elements of your business, where the next wave of business offerings might be generated.
If you are a charity or not-for-profit business with a social or environmental purpose, then leading your industry in social innovation might be the priority.
The 3rd key issue for leadership is the is Time Horizon.
Leaders at any level of business are focussed on their key business offerings that contribute most oto their successful and profitable business performance today.
But responsible business leaders must always look forward to what new business offerings they will need to create for tomorrow and beyond.
Very few leaders invest enough in the long term viability of the businesses/communities/constituencies they represent.
Responsible Leaders look beyond today’s success to what will make their businesses viable in the future. They look beyond their own tenure to a time when they will no longer lead their organisations.
Responsible Leaders have foresight, built on the knowledge of hindsight, as well as on the uncertainties and wildcards.
They have antennae out to detect options for the future and engage with those who can help provide solutions.
Many people confuse management and leadership. One of the core differences is leaders have the ability to look forward beyond the horizon.
The leader as futurist is often dismissed as irrelevant and impractical for achieving tangible immediate bottom line results. But leaders who avoid ‘futures’ thinking are flirting with danger, as they can be blindsided by unforseen threats and miss unimagined opportunities.
If you look at the Global Financial Crisis (GFC) as an example - many business owners and leaders did not pick it!
Now, people are looking at how to avoid being caught by surprise again.
From an individual perspective through to the largest enterprise it means investing a little in the future - to look at solutions for any unexpected future needs.
James Moody's book The 6th Wave is a classic example of how this can work - looking at the opportunities to be had as trends of resource management and efficiency become mainstream.
Businesses involved in monitoring, managing and considering our environment will be much more in demand into the future - such as smart energy, infrastructure and associated technologies.
Technology and communications are able to transform capabilities in business that we would never have considered in the past. They can transform the capabilities of businesses which leads to greater productivity, not only for individual businesses but for Australia as a whole.
As Cambridge Professor Alan Hughes’ analysis of Australia’s Productivity Growth in a recent study for the Australian Business Foundation shows, it is the high tech users, not the high tech producers, that are reaping the benefits of enhanced productivity. View the download here:
Australian Productivity Growth
So how does Narelle as a leader of businesses across so many levels see the attributes of business leaders in the area of responsible leadership?
Narelle summarises...
Responsible leaders...
1) Have an enquiring mind.
They generally never accept the first right answer. They are intellectually curious. They probe beyond the obvious and they consult, they are open to different perspectives and ideas and they can tolerate dissenting opinions.
But while being a consultative leader, they back their own judgments and are decisive at the end of the day. They have confidence and assurance to listen to critics and diverse opinions and incorporate this knowledge into the final decision.
2) Translate complex ideas so that they make sense.
The ability to translate the complex to be easily understood and acted on is a key feature of effective leaders.
In this way you make it easy for everyone to follow your decisions and thoughts.
Knowledge should be accessible and understandable for all staff and stakeholders.
3) Buck stops with you!
Effective leaders have no fear of being the decision maker, with informed appraisal of the facts and sound judgement of the alternatives. Leaders take responsibility for results.
Narelle volunteered Catherine Livingstone, Chair of Telstra and former Chair of the Australian Business Foundation as someone epitomising these leadership attributes and has proved to be a great mentor for Narelle.
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