Global Economic Crisis: It’s a Leadership Crisis

In 340 B.C. Aristotle began describing a series of principles that have been embraced in both western and eastern cultures. A thorough understanding of these ideas enables a leader to think and act with greater clarity and effectiveness causing people to voluntarily follow the leader’s direction and example. Basics never change and they are same across all the business & co.s. A leader can never achieve greatness and success on the outside unless he or she has developed fundamental qualities on the inside and he has followers who also understand and follow his way. Behavior decisions and choices are all a reflection of our inner world and the way you chosse to live & survive here. Unfortunately managers can unintentionally get caught in the competitive "win at any cost” mentality or the greedy "more for me” line of thinking. This can derail the careers of most intelligent people. We read all about it every day, manager who abused their trust of the community, customers, regulators or employees. It happens in the sales, research, or in operations from the executive suites to the front lines. Successful business thrives on sound character, values, and principles more than laws, regulations and fines.

There are basically three kinds of leaders in organizations today: unsuccessful ones, those who are occasionally successful, and those who consistently maintain the commitment of followers on a long term basis. No need to waste time on the first two categories. The third type requires an understanding of the finer qualities of leadership, character, intellect, and values. Character based leadership cannot be achieved by arrogant or power-hungry managers who choose to intimidate others. Sometimes those in authority feel driven to be overly aggressive, take short cuts, and do what is expedient versus doing what is right. They failed to realize the long-term impact of these practices and depend too much on no. & statistics (which are mainly used to mislead management & people both. Ex. failed big banks did in US & EU) without understanding the sustainability of the plan.

I have long felt that decision makers now give too much emphasis to numbers because of wrong type of education (courses for degrees and certificates). I dont want to name but you know the trend for getting some management related certificates because co.s give weightage to it. These are acquired by usually bogus candidates to pad up their week CVs. Management education is veering more and more towards becoming quantitative-oriented. This is emanating from a belief that whatever one can measure (& plot in xls for reports & presentations) one can manage. The irony is that human nature ( and so market) is highly complex and the complexity of the human personality and its interaction with others is only glimpsed at through a habit of observation and learning and this has been proved by many business leaders of past & present. One can only vitiate the understanding of human nature by trying to reduce it singularly to something which can be measured or captured in various metrics.

A true leader makes plans to benefit everyone and not just for his salary & commission. They don't rely on no.s alone to take decisions and plan strategies. Sensex is not the only driving force behind them. Wall street is not the only road to walk. They don't make plans that can not be converted to reality (profit). Knowledge base and understanding is must for anyone who is taking decisions that can make or break any organization. Second hand knowledge increases dependability on others ( usually a coterie with third hand ie GK type unusable knowledge) and risk of failures in an environment of aggressive marketing. Most leaders would never plunder their company, misguide the management & board members, rip off investors, cook the books, or ride on the safety of others by taking short cuts. They dont indulge in activities or initiatives that don't ultimately dont add value to clients bottom line.

Leaders who earn the respect and commitment of their followers demonstrate qualities and characteristics that run deeper than leadership skills, techniques, and knowledge alone. Effective leaders lead by example and exhibit their true character consistently. This in turn causes people to voluntarily support an organization’s mission and purpose. They know that leadership is a privilege. It means you have to consistently do the right thing for the right reasons. Good leadership is an inner choice. It is character based. Good leaders will give your organization a competitive edge; bogus leadership, on the other hand, will cost you in critical times when you need the support of followers the most.

"People ask the difference between a leader and a boss. . . . The leader works in the open, and the boss in covert. The leader leads, and the boss drives." - Theodore Roosevelt

10 people most responsible for the recession http://www.webinfoathome.com/articles/read.php?article_id=145

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