Servant leaders, boards and resilience: the management issue of the 2020s

March 2022  |  SPECIAL REPORT: MANAGING RISK

Financier Worldwide Magazine

March 2022 Issue


Unquestionably, Robert Greenleaf would be captivated by examining the leadership style that is generating the most prominence and progress for organisations since the coronavirus (COVID-19) pandemic erupted. It has been over a half century since Greenleaf, who died in 1990, wrote ‘Servant Leadership’ in 1970 and founded the modern movement that promotes leaders who seek to achieve authority – not power and coercive control – by encouraging the wellbeing of those around them.

Indeed, when historians assess the leadership of chief executives and boards of directors during this decade, they may deduce that organisations led by those who promoted an ethical perspective on leadership rather than their own power and coercive control were generally most successful in adapting to the seismic changes the pandemic triggered.

It is way too early to make any definitive conclusion in that regard. Yet, the pandemic has provided many lessons in crisis management and resilience. Generally, those lessons underscore that many of the most successful chief executives demonstrate strong people skills that consider what employees and other stakeholders want. Compassionate and caring leadership and ethical and moral purpose seem increasingly valuable in helping sustain productivity gains and agility among the best-performing companies.

Further, executive recruiters say boards of directors increasingly recognise that senior management, especially the chief executive, must grasp how much their workforce and workforce priorities have changed from when employees were primarily baby boomers. Employee surveys make it plain that mental and physical wellbeing has become a top issue since the coronavirus struck.

Chief executive candidates today must have a point of view on diversity, inclusion and racial equity. On changes in values and lifestyle. On the environment. On changing customer and supplier views. And on how technology and digitalisation shift the way people operate. They must recognise that by 2025, nearly 65 percent of the workforce will comprise millennials and Generation Z.

That profile favours the resilient servant leader. Indeed, a study by executive recruiting firm Russell Reynolds and Hogan Assessments of the common traits of best-in-class chief executives found they possess courage to change, passion and intensity, resilience and drive, high emotional intelligence, humility and excellent communication skills – characteristics of servant leaders.

A survey about what the post-pandemic era will require of global corporate leadership bolsters the view that servant leaders will be in demand for the indefinite future. The survey of 1711 business leaders by CEMS-Global Alliance in Management Education found that they see future leaders having to possess openness, empathy, resilience and the ability to communicate, as well as humane skills such as altruism and mindfulness. At the same time, strategic vision declined in perceived importance, to 68 percent from 73 percent pre-crisis, and technical skills fell to 7 percent from 13 percent.

In addition, when chief executives falter or fail, it is often because they displayed management styles that discounted common traits of servant leaders. For instance, the chief executive of Better.com, who fired 900 employees in December over a Zoom call, took a leave of absence soon after to “reflect on his leadership”, the board of directors told employees in a letter. The chief executive has returned after he reconnected “with the values that make Better great” and worked closely with an executive coach, the board letter explained.

In today’s environment, say leadership authorities, chief executives must be more intentional about how they communicate and connect with employees and instil team camaraderie, especially with the rise of hybrid teams whose members work remotely or in-office.

Leah Clark, a veteran leadership development authority, offers advice about how leaders can move toward intentionality – a servant leadership characteristic. In one-on-one meetings with underlings, be intentional about asking career-related questions, she counsels. She advises leaders to be intentional and modify work schedules or rules of interaction to permit specific breaks. She recommends taking responsibility for actively creating a safe environment for employees to bring their true selves to work. And, instead of simply noticing team results, she suggests leaders talk to teams about their work and what support the leader can provide.

As for most boards, the pandemic has served as an unprecedented pressure test forcing them to be decisive and courageous yet maintain a calming demeanour as they deal with management, shareholders and stakeholders. Directors, too, are displaying a servant leader mindset.

So how must boards manage in an era where servant leadership dominates, especially in what employees, customers and other stakeholders’ favour?

First, plan for permanent changes post-pandemic. Be forward-looking. Assess senior management’s ability to adapt to a new environment and a shifting cultural behaviour. Make no mistake: the pandemic is disrupting operating models, employee and consumer behaviours, supply chains and public expectations.

Second, sharpen the assessment of talent. Identify who among management and promising star talent rose to meet new challenges and inspire confidence because they almost certainly will be leaders in the short and long term.

Third, set and model the tone the organisation should emulate. The soft stuff – gratitude and celebrating wins – matters. Reinforce a compassionate and positive culture that inspires and instils confidence in employees, customers, suppliers and communities.

Fourth, never overstep the line, even when it is ever-changing. Now is the time, though, to ask thoughtful questions and test chief executive and senior management assumptions while also appreciating and encouraging top managers.

Finally, establish clear and transparent communication. Between the chief executive and the board chairman, the chief executive and the entire board, and the chairman and the board.

It may seem surprising that during the pandemic, servant leadership is taking a strong hold on corporations because citizens seem to prefer what leaders of autocratic governments have done about COVID-19 over leaders of democracies. Public trust in governments running the world’s democracies has fallen to new lows over their handling of the pandemic and amid widespread economic pessimism, according to the ‘2022 Edelman Trust Barometer’.

According to Edelman, the biggest losers of public trust over the last year were Germany, Australia, the Netherlands, South Korea, and the US. The trillions of dollars of stimulus these countries spent through the pandemic failed to instil a lasting sense of confidence, the survey indicates. Conversely, trust scores rose in China, where two-thirds of those surveyed were optimistic about their economic future, as well as in Thailand and the United Arab Emirates.

Yet, servant leadership is clearly in vogue in the private sector today, as employees and other stakeholders make it clear they want management and boards to listen to their needs and respond as servant leaders to develop and sustain resilient cultures and organisations.

 

Harlan Loeb is executive vice president at Argyle PR. He can be contacted on +1 (312) 282 5632 or by email: hloeb@argylepr.com.

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