Bill George is a senior fellow at Harvard Business School and author of Life's Blueprint: How Successful Leaders Create Itself.
The book, published in 2012, was an international bestseller and was named by Amazon as one of the 20 most influential management books of all time.
In this article, Mr. George shares his thoughts on what it means to be an authentic leader - for businesses and for society at large - in the 21st century. (He has since retired from HBS.)
This article is appropriate reading for aspiring leaders or anyone interested in expanding their leadership skillset.
Entelechy: What does it mean to be an authentic leader in the 21st century?
Bill George: Authenticity has two components.
First, and most important, is a sense of purpose. One must really understand what he or she wants to accomplish and why, beyond financial gain or self-promotion.
The second component is transparency - being open about who one really is - to oneself and others.
For example, some leaders are immensely talented but they are too narcissistic to see their weaknesses and ask for input from others – or even recognize them. That’s not being authentic.
Donald Trump holds his cards close to his vest as well. I strongly suspect that he is not truly open to new ideas – not because he lacks them, but because he doesn’t want others to know how smart he is.
Ent: Why are authentic leaders important for business and society in the 21st century?
George: In recent years, there has been a lot of criticism of companies for being too profit-driven - at the expense of employees or customers.
But that can be misleading - since many great companies like Nike, Apple, Google and Amazon.com became successful precisely because they focused on doing something that was good for society.
For example, a company like Google collapsed if it doesn’t focus on the customer.
In fact, if a company is not authentic in this way and its leaders are not open to feedback from an independent board, customers or employees – it will not survive.
That’s why authentic leadership is so important for society as well. Authentic leaders are our future – whether they work in the public or private sector, for profit or non-profit organizations.
Ent: What is an authentic leader?
George: Thoughtful leaders, and those who aspire to become that kind of leader, will think deeply about what they are doing and why. They will ask themselves, “What is really behind this effort? … Why am I doing this? What am I trying to accomplish?”
Leaders must not only be good at business but also be good people.
In some ways, a leader’s greatest value might be as a social good – like Mother Teresa.
In essence, authentic leaders - going beyond their business or societal role – are responsible for helping to develop a better world.
And they will work hard to see that happens.
Ent: Why is the ethical way of doing business important?
George: Vital organizations depend on trust and integrity among employees and between an organization and its customers.
As a leader, you must do what’s right for your employees, for your customers and for society as a whole.
If push comes to shove, you must choose between what’s right or wrong - regardless of whether it might hurt your company’s profitability in the short term.
That’s why authentic leaders are so important. They must never fail to do what is right no matter how costly it might be – especially if others can’t do it.
For example, when the nation went to war in Iraq and Afghanistan, many soldiers were put at risk – but people like George W. Bush were willing to make the call.
And when CEO Jack Welch of GE decided to retire, he could have taken a cushy job for several million dollars a year. But he chose not to since that would create a disconnect with his employees and shareholders who paid him substantially less than CEOs of rival companies.
Ent: What can a leader do to be an authentic leader?
George: As a leader, you must be willing to listen to others – and not just pay lip service.
You must accept your own limitations and act accordingly.
You should also recognize that what is right for one person may not be right for another – then make the assessment as to whether it is right or wrong.
Finally, as a leader, you must work hard at building a team of colleagues with whom you have both deep mutual respect and who are open to feedback from people outside the team.
When these qualities are combined with authentic leadership, organizations can flourish and develop as never before.
Ent: What do you think is the future of authentic leadership?
George: It is the responsibility of every leader to be an ethical leader - and to take the desired actions to achieve that goal.
For example, CEOs who don't create a sense of purpose in their employees or shareholders are not creating value but destroying it.
In fact, if I were to pick one mediocre CEO who could destroy his organization and still retain his job while making a lot of money – I would choose a guy like that over a wonderful CEO who was failing because he lacked this sense of purpose.
That’s because the mediocre CEO can always find other jobs at higher levels than anyone currently working for him.
But another CEO who is ethical might come from outside the organization or from another company. In other words, it’s not his fault that he doesn’t get rewarded for being ethical - it is the fault of others.
Similarly, a bad CEO could destroy an organization by engaging in unethical practices such as insider trading – but if he does this over a long enough period of time to damage the organization – it is hard to ever fix it.
That’s why authentic leaders are more important than ever.
Ent: What do you think the future holds for authentic leadership?
George: It is my belief that we are entering an age when companies will have limited resources.
Therefore, if they are to survive, they will have to work with their employees, customers and the government to accomplish something good – with the idea that all involved will benefit.
For example, a company like Whole Foods Market is led by CEO John Mackey who truly cares about his employees and gives them a real stake in the company’s value.
His strategy is working very well for him - as well as for his shareholders and his employees who benefit from being part of an organization that is growing and being competitive.
So I think authentic leaders are more important than ever.
Conclusion:
Given how much information is out there and how many leaders there are, it's essential to be able to find the one whose values align with your values. If a leader can’t do that, then he/she is failing miserably at being an authentic leader.
The key question for any business owner is “How do I select authentic leaders who truly have my interests in mind?" The answer may lie in a more comprehensive evaluation of the candidate’s values. A combination of questions like George Patail's would be useful in better identifying the ethical leader needed for success.
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