Effective Leadership

The famous maxim that whilst “managers do things right, leaders do the right thing” was coined by Peter Drucker. His extensive research into leadership led him to assert that leadership is not about personality or innate talent: the best leaders “were all over the map in terms of their personalities, attitudes, values, strengths and weaknesses.” So what is it that makes leaders effective? In his 2004 article “What makes an effective executive?” HBR (reprint R0406C), he answers that what made all these different and diverse leaders effective was that they all “followed the same eight practices.”

Here’s a summary of what makes an effective leader followed by further considerations (“et alors”).

Effective Leadership

Drucker’s eight practices for effective leadership follow a process of obtaining the relevant knowledge (first two); converting that knowledge into effective action (next four); and finally ensuring everyone involved in that “action” feels responsible and accountable (last two).

Ask what needs to be done

Not necessarily what you want to do, but what must be done for the good of the organisation? This is a continual dynamic with review and reset, focusing on one task at a time.

Ask what is right for the business

Do not “agonise” over what’s best for a particular stakeholder (owners, investors, employees or customers): decisions that are “right for the organisation are ultimately right for all stakeholders.”

Develop action plans

Specify desired results, identify constraints (in particular, ensure the plan is in line with the organisation’s strategy), devise controls and continually review according to new opportunities.

Take responsibility for decisions

Ensure each decision taken specifies who is accountable and by when. Further consider who will be affected and who needs to be informed. Regularly review decisions in order to adapt accordingly.

Take responsibility for communicating

Get input on your action plans from superiors, subordinates and peers letting them know what information you need to succeed. Furnish them with the information they need.

Focus on opportunities, not problems

Results come from opportunities, not problems. Review how changes inside and outside the organisation (technology, innovations, markets) can be positively exploited.

Run productive meetings

Articulate each meeting’s purpose and terminate each meeting once that purpose is accomplished: follow-up with short summaries spelling out assignments and deadlines.

Think and say “We” not “I”

Any given authority will come from the organisation itself so reflect it by referring to “we”. Always consider the organisation’s needs and opportunities before your own.

Et alors?

Succinct, precise and yet all-encompassing, these eight practices really do look like a check-list that can be immediately applied by anyone aspiring to be an effective leader. Drucker further asserts that effectiveness is a discipline and can therefore “be learned.” Some of the practices have developed further e.g. most managers define action plans to be SMART (specific, measurable, achievable, realistic and timely); however Drucker also insists on strategic alignment if the leader is going to be effective in terms of maximising the team’s and therefore ultimately the organisation’s performance. He also alludes to the greater good rather than pursuing individual ambitions and constantly refers to monitoring and adapting to change. This context of “doing the right thing” is what sets these practices apart to really define them as the essential standard for effective leadership.