This article first appeared in the November, 2003 edition of the Jacksonville Business Journal
Imagine two divisions of the same company that have very different cultures. In one organization the employees are energized, take initiative and enthusiastically lead their business forward. In the other, the employees are unmotivated, unsure and even fearful. They refuse to make any decisions or take action on their own.
Leaders Define the Culture The difference comes directly from the culture created by the leader. Culture translates into the core values and belief systems that define the character of an organization. Belief systems can be categorized into three major groups: principles, policies and politics.
Leadership by Principle The principle-driven leader has a set of core values that translate into the guiding principles of the organization. These core values are vision, values, and empowerment. These leaders believe that their job is to create an energizing picture of the future, set the values that define the desired behavior in achieving this vision, and empower people to take initiative and act as long as they are true to the vision and defined values.
This approach is based on three principal beliefs. First, people can largely be trusted if they understand and are committed to the goal. Second, people will work hard and do the right thing if encouraged and supported. Third, people want and will take responsibility. It's the leader's job to empower them.
In a principle-driven organization people clearly know where they stand; their behavior is predictable; the organization is focused and led by a few core values; strong alignment to those values and team work is evident; people feel empowered and take initiative.
Leadership by Policy The policy-driven leader also has a set of core values that define how the organization works. These values are structure, rules and delegation. Policy-driven leaders believe that their job is to define the organizational structure, establish clear lines of authority and control, set the policies and rules that guide behavior, and delegate authority to people within those defined boundaries. Accountability is high and employees work within the limits of the organization.
This approach is also based on a few principal beliefs. First, most people need rules and guidance. They should not be left on their own. Second, most people can be trusted, but only within established and monitored boundaries. Third, the leader's job is much like that of a parent with a child: be caring but make sure the employees behave and administer discipline as required.
Policy-driven organizations have a strong and well-defined formal organizational structure; clearly designated roles, responsibilities and authority; high accountability for individual performance; and individual rather than team behavior. People will take initiative - but only within the boundaries of their control and authority.
Leadership by Politics Leaders who use politics as their dominant approach are working from core values driven more by personal than organizational agendas. They value the preservation of their personal power; apply control over others to protect their power base; and use fear or intimidation as the control tool. Politically-driven leaders make all key decisions, do not delegate real authority, and are suspicious of the ulterior motives of others.
This approach is also based on a few principal beliefs. First, people cannot be trusted. They all have their own agendas which are likely to be in opposition to yours. Second, the world can be divided into allies and enemies. Allies must continuously demonstrate personal loyalty to maintain trust. Third, the best defense is a good offense. Always know what your enemy is up to and position and protect yourself.
Politically-based organizations are characterized by their unpredictability. Decisions are only made by the leader and may be changed based on current circumstances. Employees remain uncertain and fearful of taking independent action. The leader only trusts a very small "inner circle" based on proven personal loyalty.
Performance Implications Each of these styles has its consequences. Each creates different organizational performance. Principle-based leaders create an organization in which employees take initiative. They are encouraged to "think outside the box."
Policy-based leaders create an organization in which employees perform very well but within the scope of their authority, following the rules. They are empowered as long as they "play within the box."
Politically-driven leaders create an organization in which the employees preserve their security by demonstrating their personal loyalty, bringing all information and situations back to the leader. For them, "there is no box."
Each approach creates different organizational performance. Most leaders ultimately realize that they get the organization they create.or deserve.
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