Tell Us About Your Favorite Leader

Defining effective leaders is a subjective exercise. However, a recent column in The Wall Street Journal mentions some interesting research on the topic. Alan Murray, deputy managing editor and executive editor of the paper’s online content, discusses “Good to Great,” a book by Jim Collins that explores characteristics of healthy companies. Collins found that organizations with celebrity CEOs weren’t always the most successful businesses. In fact, low-profile traits, such as perseverance and making choices based on the good of the group rather than personal gain, were strong indicators that a leader would build a winning company.

The key to effective leadership boils down to sincerity. A leader’s job isn’t to make everyone happy. In fact, subordinates may disagree with a manager. However, team members remain loyal to the group because they respect their leader’s integrity. (Those who disagree strongly are likely to leave the organization. In the end, the unhappy employee and the team are better off.) That’s why leaders who stay true to their mission develop effective teams and produce results.

In the aftermath of corporate scandals and banking industry excesses, I suspect leaders with inclusive styles that consider the good of the organization and shareholders will be held up as examples. Business groups and the media will be more likely to celebrate leaders based on results and their lasting contributions, rather than on their popularity.

Another major finding in Collins’ book was that leaders and organizations that carefully implemented succession planning strategies performed the best over extended periods of time. Executives in those organizations were willing to share their knowledge with underlings who could move into leadership positions with little disruption to company operations.

Unfortunately, effective succession planning is the exception, not the rule. A 2008 survey by CEO Network found that six in 10 companies did not have a plan for a successor to the top leader. I’ll venture a guess that statistic isn’t much better in 2010 as organization’s poured much of their time and attention over the last two years into surviving the recession.

During this time of need, HR professionals have a golden opportunity to showcase their succession planning skills. In fact, more HR executives are being called upon to serve on executive boards for that reason.

What are some of the most effective leadership traits you have observed? Are you involved in succession planning in your organization? I welcome your comments!

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