What Do Leaders Really Do? Getting Under the Skin of What Makes a Great Leader Tick

What Do Leaders Really Do? Getting under the skin of what makes a great leader tick

Jeff Grout and Liz Fisher

Every now and again a new book comes along which really does add something new to our understanding of what leadership is and what it really means. This is one of those books. The interviews are excellent and we get to understand leadership in new ways from those that are leaders rather than those who just write about them. David C M Carter – Chairman, Merryck & Co. The world’s leading CEO mentoring organization

I found this book very accessible and full of insightful thoughts on leadership and success. Jeff Grout and Liz Fisher have spoken with an interesting array of proven and successful leaders who have provided the authors with a unique understanding of how they have led others to success in their various ﬁ elds of endeavour. Michael Lynagh – Former Australia Rugby Captain

This highly readable book provides a fascinating insight into the inﬂ uences, experiences and approaches of a diverse group of leaders. Its highly practical approach will appeal to those who are allergic to management models and leadership theory. It conﬁ rms that success as a leader comes from being yourself. David Taylor – Author of The Naked Leader

What Do Leaders Really Do? conﬁ rms that there is no single recipe for leadership. The featured leaders have found what has worked for them. Our original HBR article ‘Why should anyone be led by you?’ concluded with the recom- mendation to leaders ‘Be yourself – with skill’. That is much harder than it looks. These successful leaders have worked hard at developing their leadership skills. Professor Gareth Jones – Co-author of Why Should Anyone Be Led By You?

What Do Leaders Really Do? is relevant to anyone who ﬁ nds themselves in a leadership position. Rather than theorize, it examines the practical realities of leadership and offers real insight from an impressive array of leaders. A great book to recharge your batteries as a leader! Sahar Hashemi – Co-founder of Coffee Republic

Accessibility is the difference between a useful book and one that just sits on the shelf unread. This book is very accessible and has the added advantage of an impressive and diverse group of leaders offering a variety of practical approaches that demon- strate the key elements of effective leadership. Dr Chris Brady – Professor of Management Studies and Dean of the Business School at Bournemouth University and author of The 90 Minute Manager This is a book about experiences. Thankfully, it is not telling us to 'do' anything. In other words, it is not a ‘must do/should do’ tract of management speak. It offers insights and philosophies from people who have been in signiﬁ cant leadership positions. I personally found it helpful to check off some of the strengths and weaknesses I have, and simply reﬂ ect on the way others approach similar situations that I face. I spent half the time reading and the other half asking myself challenging questions! Adrian Moorhouse – Chief Executive and Co-founder of Lane 4 Manage- ment Group The Sunday Times 100 Best Small Companies to work for 2007 – ‘Best for Leadership’ award

Through in-depth discussions with key leaders this book captures the personal subtleties and sensitivities of dynamic leadership that business school text books overlook. Professor Richard Scase – Author of Global Re-Mix

This is a book that allows you to share experience of leadership in a much wider sense than purely business. You should keep this ‘experience’ at hand to dip in and out of on a regular basis and you will always ﬁ nd something new and moti- vational. Paul Walker – CEO Sage Group

The strength of this book is that it concentrates on living examples of great (and not so great) leadership. For anyone who really wants to understand what effective, practical leadership looks like this is the book to read. Graham Wallace – Former CEO Cable & Wireless

Oh no, not another book on leadership, I thought! But this one’s different. Jeff Grout and Liz Fisher have talked to some genuinely fascinating people – a book on leadership that won’t be gathering dust on your bookshelf. Des Gunewardena – Chairman & CEO D&D London (formerly Conran Restaurants)

A very readable book about real leaders in real situations. A refreshing antidote to the usual management textbooks. Suzzane Wood – Partner Heidrick & Struggles, The world's premier pro- vider of senior-level executive search and leadership consulting services What Do Leaders Really Do? Getting under the skin of what makes a great leader tick

First published 2007 by Capstone Publishing Ltd. (a Wiley Company) The Atrium, Southern Gate, Chichester, PO19 8SQ, UK. www.wileyeurope.com Email (for orders and customer service enquiries): [email protected] The right of Jeff Grout and Liz Fisher to be identiﬁ ed as the authors of this book has been asserted in accordance with the Copyright, Designs and Patents Act 1988

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Other Wiley Editorial Ofﬁ ces: Hoboken, San Fransisco, Weinheim, Australia, Singapore and Canada Wiley also publishes its books in a variety of electronic formats. Some content that appears in print may not be available in electronic books. Library of Congress Cataloging-in-Publication Data Grout, Jeff . What Do Leaders Really Do? Getting under the skin of what makes a great leader tick/ Jeff Grout and Liz Fisher. p. cm. Includes index. ISBN 978–1–84–112757–6 (pbk. : alk. paper) PS3602.U733L54 2007 813’.6—dc22 2006041314

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Foreword ix Introduction xi Acknowledgements xiv

Part One 1 1 Characteristics of Leadership 3 The charisma question 10 A substitute for charisma 12 Leadership by osmosis 14 2 Background 17 The inﬂ uence of family life 20 Education 22 Learning leadership 26 Career progression 27 vi WHAT DO LEADERS REALLY DO?

3 Infl uences 31 The infl uence of parents 32 The infl uence of teachers 35 The infl uence of bosses 37 Mentors and mentoring 43

Part Two 45 4 Vision 47 Creating the vision 49 Communicating the vision 54 Long or short term? 59 5 Decision-making and Risk 63 Military mission analysis 68 Risk and the military 70 Risk and business leaders 73 6 Mistakes and Setbacks 79 Learning from experience 85 Analysing failure and success 89 7 Change Management 93 Why do most change initiatives fail? 96 Communicating change 99 Culture change 102 Early days, quick wins 104

Part Three 109 8 Empathetic and Authentic Leadership 111 Empathetic leadership 113 Caring leadership 116 Sensing mood 118 Delivering bad news 121 Authentic leadership 124 The stories people tell 128 Visibility 131 Keep your distance 133 9 Motivation, Inspiration and Morale 135 Celebrating successes 140 CONTENTS vII

Morale 142 Inspirational leadership 144 The role of oration 147 10 Choosing and Building a Team 151 The power of diversity 154 Trust 157 Developing future leaders 159 Preparing for success 160 Teamship rules and professionalism 162 Team spirit 164 11 Communication 167 Too much talk? 168 Authentic communication 171 Honesty and integrity 174 Communicating outside the company 176 Dealing with the media 177 12 Looking After No 1 181 Creating space to think 184 Self-improvement and learning 187 Recommended reading 189 Leadership and lifelong learning 190 Knowing when to quit 192 Final thoughts on leadership 195

Appendix 197 Bibliography and Further Reading 202 Index 204

Foreword by Martin Glenn

Why do we need another book on leadership? If there is one area of management that is not short of advice from all quarters, it is leadership skills. There are hundreds of thousands of leadership titles in circulation at any one time – put ‘leadership books’ into an internet search engine and you will get over a quarter of a million hits. But if there are so many good books available on leadership, why are so many of today’s leaders still not up to the job? The vast majority of leadership books fall into one of two cat- egories, which, in my view, is why so many fail. The ﬁ rst category is what I would call quasi-academic, approaching the subject from too academic a standpoint and trying to force the facts of practical leadership into a unifying theory. The second is the leadership memoir which, with some exceptions, is often little more than congratulatory self-justiﬁ cation. x WHAT DO LEADERS REALLY DO?

Anyone who has found themselves in any form of leadership role – which, I would argue, covers anyone who has raised a child through to the chief executive of a multinational corporation – knows that leadership is a life skill. It is a craft and not a science. How do people develop good craft skills? While some of the basic principles can be taught in the classroom, ultimately you learn through observation, emulation and practice. That is why this book is so necessary. In putting together this book, the authors have asked craftsman’s questions. They have observed and questioned and while they look for commonalities in the leadership approach of this diverse collec- tion of leaders, they are never distracted by the need to ﬁ t all of the observations into neat conclusions. I imagine that all of the leaders who were interviewed for this book found it an extremely useful experience. I know I did. It is inevi- table that, given our busy lives, few of us have ever taken the time to think through and analyse what we do every day. For me as a leader, sitting down and thinking carefully about the things that drive my own approach to leadership was a valuable process. The results of the research in this book should also provide anyone in a position of responsibility with the opportunity to engage in the leadership debate on an entirely different level. It offers great con- densed learnings and the views and experiences of a wonderfully eclectic mix of people from a wide variety of ﬁ elds. Above all, their experiences show clearly that every leader is different and that the best recognize their strengths and weaknesses and adapt their leadership style accordingly. There is no single, magical recipe for successful leadership. The best leaders have a portfolio of styles and skills and the instinct to know when to use them. Good leadership means knowing when the time is right to change gear. Introduction

The world of management has, in the words of Financial Times journalist Richard Donkin, a fi xation on leadership that borders on obsession. But the business world is not alone in its fascination. On any given day the media surrounds us with stories of outstanding, indifferent or poor leadership in sport, politics, education, the military and any other number of situations. Leaders are inevitably praised when things go right and invariably vilifi ed when things go wrong. Everything, it seems, from sporting success to the collapse of a society, can be traced back to good or bad leadership. It is hardly surprising then, that we have developed an obsession with what it takes to be a successful leader. Fortune maga- zine, in identifying America’s most admired companies, made the point that there is no one determining factor that makes a company admirable. But, if forced to search for an answer, most people would xii WHAT DO LEADERS REALLY DO? plump for leadership. As the American fi nancier and businessman Warren Buffet once said, ‘People are voting for the artist and not the painting.’ Management literature is rife with theories about the essential qualities of an effective leader. Equally numerous are the theories of what leadership actually means. These vary from the infuriatingly vague (‘Managers are people who do things right; leaders are people who do the right thing’) to the straightforwardly simplistic (‘Leaders press for change’). It seems that today’s leaders need to meet an ever-growing list of skills and personal characteristics in order to be considered effective. Inevitably this list will include words such as ‘passion’, ‘commitment’, ‘vision’ and that most elusive of all, ‘charisma’. But, as Professor Brian Morgan of the University of Wales Institute School argues, ‘despite the ease with which these characteristics are listed in textbooks, in practice things are not quite this simple. There is no consistent list of descriptors that can help us identify outstanding leaders.’ Leadership may be an elusive concept but surely it cannot be that mysterious. After all, many people do it every day, in every walk of life. This led us to ask, but what do leaders really do? How many of today’s leaders match up to the academic ideal? Does their behaviour as leaders correspond in any way to the various leadership models and theories? Do their everyday actions conform, consciously or unconsciously, to the predetermined standards we set for them? Do any of them take any notice of what a leader ‘should’ be? Our research has been heavily infl uenced by writers who have concentrated on practical observation of leadership, such as John Kotter, and by the work of Rob Goffee and Gareth Jones, authors of Why Should Anyone Be Led By You?, who argue that the best leaders are ‘authentic chameleons’ who adapt their behaviour according to circumstances, but remain true to themselves throughout. This view is born from our discussions with the leaders in this book. Each had different personalities and different strengths and weaknesses but had learned, generally through trial and error, how to get the best out of their people and their organization. INTRODUCTION xiii

The results of our research are a fascinating insight into the minds of a set of leaders from a wide range of fi elds. What struck us the most was how many of these people were instinctive leaders, with little or no formal training and very little reference to any form of leadership thought or literature. They just did what they felt was right. Some even found it diffi cult to accept what they do as leadership, as Sebastian Coe told us: ‘I never, ever think of myself as a leader. I just do what I do.’ Others modestly take the view that their role is unimportant as long as the organization is functioning well. Gail Rebuck of Random House says, rather disarmingly, that she ‘doesn’t do anything’ as a leader. ‘My job is only to think and occasionally act as trouble shooter.’ The rugby player Martin Johnson echoes this view: ‘Being captain is almost like a managing director’s role. If the team is work- ing well you don’t really need to do anything much.’ Effective leaders, in other words, are able to get their organization to a position where it is able to run smoothly with the minimum of intervention from the top. Dame Stella Rimington, who was the fi rst female director-general of MI5, puts this view very clearly:

‘There are actually very few things, if you analyse and put them all into boxes, that a leader does. But from the leader ﬂ ows everything. He or she dictates the culture of the organization and its direction. Leadership also means looking ahead to see where the next chal- lenge is coming from. And that, actually, is all you have to do.’

These leaders recognize, though, that with success comes the danger of complacency. As Ron Dennis, the chairman and CEO of McLaren says, ‘the biggest barrier to continued success, is continued success’. A good leader is constantly pushing their organization and their people to be the best that they can be. Charles Dunstone, CEO of the Carphone Warehouse told us that he saw his main role as leader of the company as ‘to be unreasonable’:

‘Big organizations tend to become more and more reasonable as they grow. The IT project may run £2 million over budget and may xiv WHAT DO LEADERS REALLY DO?

be eight weeks late on delivery, but the view is that everyone will be paid so it’s not the end of the world. That’s not good enough. I’m not a tyrant but I try to push the business to do better than it thinks it can and never to take the easy option. I love the quote that Roger Bannister gave when he ran the four-minute mile when he was asked how he had managed to do it. He said that it was about the ability to take more out of yourself than you have got to give. That’s what you try to do as the leader of a business.’

Above all, the leaders we spoke to all have a common characteristic: an unbridled passion for what they do. ‘I know what I want. I want to make a difference in sport,’ Sue Campbell, the chair of UK Sport told us. ‘I want to make a difference in a world that I understand, and which has made a difference for me.’

ACKNOWLEDGEMENTS

We could not have written this book without the help of many people. Particular thanks go to Gareth Jones, Fellow of the Centre for Management Development at London Business School and co- author of Why Should Anyone Be Led by You?, and Professor Graham Jones, co-founder of the business consultancy Lane 4, who both provided invaluable guidance during our research, and Professor Brian Morgan, director of the Creative Leadership and Enterprise Centre at the University of Wales Institute, Cardiff. We would also like to thank the 17 leaders who provided their time and support in sharing their experiences of leadership for the book:

• Sue Campbell CBE was appointed Reform Chair of UK Sport in September 2003 and conﬁ rmed as chair of the high-performance sports agency for a four-year term in March 2005. A former member of the England women’s netball team and manager of the England women’s basketball team, she was chief executive of the National Coaching Foundation between 1985 and 1995 and chief executive of The Youth Sport Trust between 1995 and 2005. Sue was elected chair of the Youth Sport Trust in 2005. INTRODUCTION xv

• Sebastian Coe (Baron Coe) is chairman of the London Organising Committee of the Olympic Games and the Paralympic Games. During his career as an athlete he set 12 world records and won 11 gold medals at major championships, including two Olympic golds. On his retirement from athletics, he was elected a Con- servative MP and was Private Secretary to William Hague. He was appointed chairman of the London 2012 Olympic Games and Paralympic Games Bid Committee in 2004. • Nasser Hussain was captain of the England cricket team for 45 test matches between 1999 and 2003. • Martin Johnson CBE led the England rugby team to its historic World Cup win in 2003. While he was captain of the Leicester Tigers, the team won back-to-back Heineken Cup victories and won the league six times. He was named captain of England in 1998 and has captained the British Lions on two separate tours. • Sir Clive Woodward OBE coached the England rugby team to its World Cup win in Australia in 2003. During his rugby career he played for Leicester Tigers, gained 21 caps for England and toured twice with the British Lions, while also forging a successful career at Rank Xerox and later launching his own leasing business. He was appointed coach to the England team in 1997 and was head coach for the British Lions tour to New Zealand in 2005. In 2006 he was appointed Director of Elite Performance at the British Olympic Association. • Charles Dunstone founded, with David Ross, the mobile phone retailer Carphone Warehouse in 1989 and is chief executive of the multinational company. • Ron Dennis CBE is chairman and chief executive of the McLaren Group and principal of the Vodafone McLaren Mercedes For- mula One team. Dennis was chief mechanic to Sir Jack Brabham before launching his own racing team in the 1970s. The company’s merger with Team McLaren marked the beginning of a highly successful racing career, including seven constructors’ and nine drivers’ world championships. • Greg Dyke was director-general of the BBC between 2000 and 2004, when he resigned in the wake of the Hutton Inquiry. He xvi WHAT DO LEADERS REALLY DO?

started his broadcasting career in London Weekend Television before moving to TV-am, where he was instrumental in reviving the show’s ratings. He was appointed director of programmes at TVS before returning to LWT before its acquisition by Granada. • Martin Glenn was appointed CEO of the Birds Eye Iglo Group in November 2006. A marketing specialist, he joined Walkers Snack Foods in 1992, becoming president in 1998, before becoming President of PepsiCo UK, one of the UK’s leading soft drinks and snack food manufacturers, in 2003. • Heather Rabbatts CBE worked as a barrister before moving into local government. She was chief executive of the London Bor- ough of Merton before rising to prominence as chief executive of the London Borough of Lambeth authority between 1995 and 2000. On leaving Lambeth she founded and was chief executive of iMPower, a public sector consultancy, and was later managing director of 4Learning, Channel 4’s education programmes and business. Rabbatts was appointed executive deputy chair of Mill- wall FC in May 2006 and executive chair of Millwall Holdings plc in October 2006. She is a former governor of the BBC, and current non executive director of the Bank of England and of the UK Film Council. • Gail Rebuck CBE is chair and chief executive of Random House, one of the UK’s leading trade publishing companies with over 40 imprints and publisher of many of the world’s best known authors. She was founder director of Century Publishing, which merged with Hutchinson in 1985 before being acquired by Random House Inc. in 1989 and Bertelsmann in 1998. She was a member of the government’s Creative Industries Task Force and is currently a Trustee of the Work Foundation, a member of the Council of the Royal College of Art and a non executive director of BSkyB. • Kevin Roberts is worldwide chief executive of Saatchi & Saatchi. Born in Lancaster, he began his career as brand director to Mary Quant in the 1960s, before moving on to Gillette, Procter & Gamble and Pepsi Cola. He was chief operating ofﬁ cer at Lion Nathan Breweries in New Zealand before joining Saatchi & Saatchi in 1997. He is CEO in residence at The Judge Business INTRODUCTION xvii

School at Cambridge University and chairman of the USA rugby board. • Dame Stella Rimington was director-general of MI5 between 1992 and 1996. She was the fi rst head of the service to be named publicly on her appointment and during her tenure she oversaw a new policy of openness at the service. She joined MI5 in India in 1967 and during her career worked in counter-espionage, counter-subversion and counter-terrorism. She was appointed to one of two deputy director-general positions in 1990. • Major General Patrick Cordingley commanded the 7th Armoured Brigade Group (the Desert Rats) during the fi rst Gulf War in 1991. He was awarded the Distinguished Service Order for his courage and leadership. • Field Marshal Peter Inge (Lord Inge) was chief of the general staff between 1992 and 1994. He became chief of defence staff in 1994 until his retirement in 1997. During his army career he was Commanding Offi cer of the 1st Battalion of the Green Howards, serving in Northern Ireland and Germany. He was Director Gen- eral, Logistics Policy at the Ministry of Defence and Commander of NATO’s Northern Army Group. He became a privy councillor in 2004 and was a member of the Butler Committee. • Colonel Bob Stewart DSO commanded the 1st Battalion of the Cheshire Regiment and was the fi rst British Commander under UN command in Bosnia between 1992 and 1993. He was awarded the Distinguished Service Order and later became Chief of Policy at Supreme Headquarters Allied Powers Europe. • Commander Nigel ‘Sharkey’ Ward DSC AFC commanded the 801 Naval Air Squadron (based in HMS Invincible) during the Falklands War in 1982 and was senior Sea Harrier adviser to the Command on the tactics, direction and progress of the air war. He fl ew over 60 war missions, shot down three enemy aircraft and was later awarded the Distinguished Service Cross for gallantry.

PART ONE