Ethical leadership development in action

Last week’s post discussed the qualities of ethical leaders including integrity, compassion and skilful communication.  The current issue discusses the focus of the ethical leader.  In which specific areas should the ethical leader devote time and energy in a world of ever-growing demands?  There are many tasks an ethical leader can accomplish which may be good, but what should be pursued?  It goes without saying that the ethical leader’s time is valuable.  I was reminded recently by Adam Bryant’s post on LinkedIn that it is imperative to distinguish between action and activity.  The latter may offer a sense of accomplishment and enjoyment but does not necessarily lead to the desired destination.  The former is purposeful, goal-driven and pursues the long-term agenda.  Ethical leaders should focus their time equally on the following: self, company and employees.

Ethical leaders invest in personal development.  Ethical leaders are learners.  They love to learn new concepts benefiting themselves and others.  Tim Sanders describes this type of person as a love cat.  The most important transformation that occurs when one loves to learn is that they are open to change.  Even after 20 years on the job, it is possible to continue learning.  This should seem obvious because the business landscape changes over the years but there are still far too many people who think they know everything there is to know about their industry.  Ethical leaders passionate about knowledge often become great teachers who seek to help others.  Dee Hock, founder and CEO Emeritus at Visa states:

“Here is the very heart and soul of the matter. If you look to lead, invest at least 40% of your time managing yourself -- your ethics, character, principles, purpose, motivation, and conduct. Invest at least 30% managing those with authority over you, and 15% managing your peers. Use the remainder to induce those you ‘work for’ to understand and practice the theory. I use the terms ‘work for’ advisedly, for if you don't understand that you should be working for your mislabeled ‘subordinates,’ you haven't understood anything. Lead yourself, lead your superiors, lead your peers, and free your people to do the same.  All else is trivia.”

Ethical leaders invest in the company.  Ethical leaders find ways to benefit the company.  The result may be new growth opportunities, marketing plans or products, but the driving force is always leadership.  Ethical leaders must make time to lead.  Leadership is not management.  Both are important and the roles may intertwine; however, it is only leadership that blazes a new path and ventures into previously unknown territory.  Most global companies perform management functions exceptionally well, but fewer are led exceptionally well.  As global PC shipments fall, and sales of the new Surface tablet position the product on the brink of irrelevance, Microsoft’s future depends on leadership not management.  It is natural for a company that developed the most popular operating system in the world to continue focusing on business as usual.  Ethical leaders invest in organizations to produce the unusual.

Ethical leaders invest in employees.  The stakeholder concept includes employees, society, government, suppliers, competition and clients.  Business does not grow in a vacuum, and to varying degrees, depends on stakeholders for vitality and sustained growth.  Employees are arguably the most important stakeholder in any organization.  Countless businesses understand the cliché but do not demonstrate how employees are valuable.  The perfunctory holiday party does not cover a multitude of ills during the course of the year.  Ethical leaders invest in employees by rewarding a job well done (a very simple “thank you” note which any ethical leader can afford regardless of financial circumstances).  Ethical leaders understand that the company is like a second family and employees are more than the job titles on business cards.  It’s been shown time and again that financial earnings are not the most important part of the job.  Ethical leaders invest in employees by rewarding workers.  Gratitude is a form of reward and reaffirms that a job was performed well and sends a positive signal to engage in more of the same. 

Time is certainly a valuable and irreplaceable commodity.  It cannot be horded or manufactured, so it is vital that time spent by ethical leaders propels the business closer to the desired destination.  I spent years on activity – managing projects, teams, budgets, vendors – but not enough time on goal-oriented action items.  Keeping busy felt good and I enjoyed various aspects of the work, but my time was not being used effectively.  I learned that establishing a vision, empowering a capable team, delegating tasks and practicing ethical leadership are vital to the long-term success of any company.  Ethical leaders invest in self, company and employees by deliberately focusing on ways to improve each area on a daily basis.