But what makes a good leader? Leadership is elusive. Wikipedia defines it as “a process of social influence in which one person”¨can enlist the aid and support of others in the accomplishment of a common task.”?
It further states that “leadership, although largely talked about, has been described as one of the least understood concepts across all cultures in civilisation.”?
Recognising that executives are responsible for business success, I am interested in what makes certain people chosen to lead a company. Previous research showed that the most common reason for people leaving a company is conflict with their direct supervisor or lack of respect for management (1). Following this, I have been conducting a survey since 2012 to find out what characteristics people admire in leaders they perceive as successful and what skills are expected to become more important in the next ten years (2). I received responses from 15 countries, including 22 managers, CEOs and senior consultants currently working in the gas industry. I also conducted several interviews. I found the following key issues.
Importance of communication
Firstly and most importantly, the results overwhelmingly show that people respect and follow those who show softer skills such as communication, vision and charisma – 82 per cent of the respondents did not list a technical skill in the top five skills admired in leaders they know. This is in contrast to the older stereotype of a strong leader with business acumen and dominant traits. As Ghandi said, “I suppose leadership at one time meant muscles, but today it means getting along with people.”?
Characteristics most admired also include ethics, integrity, good communication, confidence, vision, imagination, positive attitude, patience, balancing work and home life, and the ability to manage both older and younger staff. It should not be a surprise that these skills are required to lead people, as business is people, and it is natural for people to look for inspiration. Martin Luther famously said “I have a dream”? to his followers – he did not say
“I have a ten-point plan.”? Yet when discussing this subject with colleagues or asking an audience at a conference, I have never met anyone who has spent more time actively developing their “leadership skills”? than training for technical or process- focused business management skills.
Ability to quickly adapt
Respondents feel that leaders in the gas industry need to improve their ability to adapt to challenges and improve stakeholder management skills, in particular when dealing with non-government organisations and political parties. Leaders also need to become more relationship-driven and that “profit is important, but people are more important.”? This is crucial to the gas industry in Australia. One manager summarised this well by saying “stubbornness is no longer desirable to most organisations. Instead, empathy, humility and the willingness to adapt mark a great leader.”?
One consultant succinctly suggested, “society’s expectations are changing rapidly and energy industry leaders will be forced to take a wider perspective on issues of social responsibility…leaders must: spend more time gaining learned advice on issues of environment, population and education; be prepared to make concessions to those who are not shareholders; and justify those who have the will to discard established business management and economic practices in favour of an approach which genuinely aims to improve the well-being of the wider community, and genuinely acknowledges the need to transition to a low-carbon future.”?
Diverse background
Respondents view a varied career background as the most valuable factor in developing leadership skills, even above education. This is important for younger professionals, as the older model of a company manager is one where promotion came after having been with the same company for a significant period of time. As Steve Jobs said, “I’m not dismissing the value of higher education; I’m simply saying it comes at the expense of experience.”?
Recent media articles echo the sentiment that better leadership is needed in Australia. See examples on page 62.
Show you care
A strong theme throughout the survey is that it is important for leaders to show they care about the company and its people. This can be as simple as providing clear information, mentoring and succession planning but requires personal demonstration. Good questions are posed for us all to consider – why do you work where you do and what difference are you making? To quote Steve Jobs further on working: “You’ve got to have a problem that you want to solve, a wrong that you want to right.”?
One under-35-year-old said, “She is “¨a good leader because despite being extremely busy, she is dedicated in mentoring the next generation. Her success provides inspiration and direction.”?
So ask yourself: do you really care about the gas industry and what legacy are you leaving behind?