Thought Leader: What do we need in a modern leader?

We are only leaders if people choose to follow us, argues professor Veronica Hope-Hailey, Dean of the University of Bristol Business School.

There are three major concerns for CEOs right now. The first is legitimacy. Before the 2008 economic crisis, people were preoccupied with short-term shareholder value and failed to pay attention to sustainability. Some of the cynicism around poor behaviour in business remains.

The second key concern is accountability. Particularly in the private sector, how can we make CEOs and organisations accountable for their actions?

And the third is pluralism. By this, I mean that organisations comprise a variety of views, needs and voices so businesses are becoming a more ‘negotiated order’ – what our organisations are about cannot be dictated by the CEO’s vision. Organisations that do well, such as Unilever and John Lewis, recognise this and work with groups to co-create a shared vision.

So how can today’s leaders address these concerns and take their people with them?

First, the new generation of leaders must create a sense of shared purpose.

People don’t get out of bed to create shareholder value. Today’s leaders need a sense of what the organisation’s higher purpose is that they can communicate to others.

Successful organisations choose leaders who have a sense of their legacy.

It’s our job to nurture the next generation. How our values fit that historical legacy, and being able to articulate what we’re going to bring, is crucial. It’s about seeing a leader’s role as part of a greater whole. We have a part to play but we have to think about how we are creating a sustainable future for the next generation.

Future leaders will require benevolence, integrity, ability and competence.

Previous generations didn’t always feel it was necessary to demonstrate their concern or compassion for others. This is absolutely essential now – it comes through in our behaviours, words and attitudes in the community and in the workforce – and we cannot outsource this to corporate communications.

We will also need to engage with people around us, collaborating and creating group identity.

Leaders need to stop looking at iPads, phones and laptops and engage with people to be seen as legitimate.

Relational leadership is the difference between red cape ‘superman’ leadership and understanding that actually, our organisation’s problems will be solved through working with others. By creating group identity, we can achieve our aims more successfully. Kirit Patel, CEO of Day Lewis Pharmacy, summed this up perfectly when he said: “No one carries a bigger stick than me, and I don’t carry a stick."

Finally, we will need to be trustworthy.

Trustworthy leaders show humility and modesty, understand their role to leave a legacy, and think about tomorrow. Seek feedback on your legitimacy as a leader and listen to what this tells you about your style. Leadership is not a role, it’s a relationship. We are only leaders if people choose to follow us.