Some new and legendary leaders who have achieved the best of both worlds -- institutional and popular authority -- include Alan Mulally, president and CEO at Ford (F), Jack Welch, formerly of GE (GE), W. James McNerney, currently leading Boeing (BA), Warren Buffett of Berkshire Hathaway (BRK-A), the Google (GOOG) triumvirate of Sergey Brin, Larry Page, and CEO Eric Schmidt, Indra K. Nooyi at PepsiCo (PEP), Susan Lyne of Martha Stewart Living Omnimedia (MSO), and Southwest Airlines (LUV) founder Herbert D. Kelleher, to name a few.
If Stew Leonard ever decides to take his Connecticut-based family company public, look for him to make the list. Also look for some continued strong leadership from Ambac (ABK) in the near future.
The reason less popular leaders are less popular is simple: Invoking institutional authority and keeping unsuspecting and/or disempowered subordinates in the dark, as so many frustrated leaders with only institutional authority do, is a crude copout, a poor imitation of leadership, and an abuse of power.
Abuses of power drive daggers into the heart of any hope you have of achieving popular authority. You can’t feel respected while treating others disrespectfully. Consistently acting in the best interests of your direct reports and the mothership will build trust, respect, loyalty and a reputation as a stand-up leader.
If you want to know who the people in your department (or any department) respect and admire, follow the ruts in the carpet or the worn varnish on the floor. That heavy traffic leads to the go-to person for problem-solving, help and advice.
How does your carpet look? You’ll know you’re a leader in fact when the cow paths in the carpet lead straight to your door.
Some men and women in leadership positions have highly developed relational skills that lend them natural authority; some are so people-phobic they have difficulty transforming their unnatural authority into popular authority.
Call it nature, call it nurture, or call the whole thing off: Training, development, and executive coaching can atone for a multitude of leadership sins - as long as you go forth and sin no more.
Until you prove through consistent thoughts, words, and (most importantly) deeds that you have the best interests of your direct reports and the organization at heart, you'll remain a leader with only institutional authority - and the respect you seek will continue to elude you.
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