Beyond popularity, towards effectiveness and inspiration, ETHRWorld
In the realm of business, there’s a persistent myth that leaders need to be universally liked to be effective. However, true leadership isn’t about winning a popularity contest; it’s about making tough decisions for the greater good. Leadership and popularity can be a lethal cocktail, and the allure of being liked can often overshadow the true essence of what it means to lead. True leadership is about setting a vision that inspires and challenges your team. It goes beyond being liked and praised by employees to building your employees, raising the bar, and helping them realise their higher potential.If you aim to be such a leader, you cannot rely on being ‘liked’ as a barometer of your success. A positive relationship is essential, yet good leaders know that they won’t always be liked, and that’s completely fine because their role is to achieve organisational goals. As a leader or a CEO, that should be your bigger focus.
The Illusion of Popularity in Leadership
Many believe leadership resembles running a popularity-driven democracy, where winning approval is paramount. However, this notion can lead to misguided decisions. True leadership is about guiding teams toward goals, even if it means making unpopular choices. Consider the story of a leader faced with restructuring to ensure the company’s long-term viability. Despite knowing it wouldn’t win them any popularity contests, they made the difficult decision to secure the future of the organisation and the jobs of the remaining employees.
Over the years, I have recognized and detailed the kind of leadership behaviour designed to gain popularity or leverage over certain employees at the cost of professionalism, ethics, and, most importantly, organisational goals. It’s important to enumerate these to recognize and stall them for the benefit of all.
Popularity Tactics # 1- Lack of Focus on Building Systems and Processes
Even in many big organisations, some leaders like to keep approvals fluid. Doing so enhances their halo perception amongst the employees and lets them play God. This approach projects an image of omnipotence but ultimately hampers organisational efficiency and growth.
Going against this tactic, one of the key elements of being a good leader is establishing employee-related Standard Operating Procedures (SOPs) by creating grade/level-specific employee entitlement policies. These policies can be further templatised and applied across the organisation.
How does it help?
By defining things like whether a specific grade will get a cubicle or desk, the kind of laptop that is budgeted for each grade, the celebratory allowance on marriage or the birth of a child and more, these well-defined policies make approvals, perks and benefits more transparent and set a good example.
Employee-related policies and Standard Operating Procedures (SOPs) should be spelt out in uncertain terms and strictly applied because they can impact employee performance and affect their social standing within the organisation and with their peers. These policies also remove personal biases and make the leader known for impartiality and fairness which are far stronger qualities for leadership, rather than playing God.
Sometimes leaders are faced with pleas like, “Sir, please help Mohan. He is getting married and doesn’t have enough money to buy the jewellery.” Many err on the side of generosity by giving a one-time allowance as ex-gratia, which is not defined as per standard HR policies but helps the leader become popular or feel powerful.
Yet, even in such cases, I prefer keeping to the defined policy because as a CEO, I am responsible for all my employees and am aware that such actions can be viewed as favouritism. Other employees might not have the same rapport with me or maybe some don’t want to share their difficulties with others, and if I go ahead and sign off an amount beyond that employee’s grade then it will have ripple effects across the organisation which will not be very positive.
In such situations, I believe the best stance is to sign off the amount according to the written policy for the specific grade and make a personal contribution to any fund that the employee’s friends and colleagues are organising.
Establishing clear SOPs ensures consistency, accountability, and scalability. These are simple things that can and should be templatised. It also ensures that the CEO is seen as fair and transparent in his/her approach and that tales of personal biases do not become watercooler conversations.
Popularity Tactic #2- Favouritism Bias, Bypassing the Intent of Laid Down SOPs
A company I worked in earlier required a lot of travel, the company also had defined guidelines or SOPs for who is eligible for air or train travel and hotel stay and up to what limit. However, employees who were on friendly terms with their bosses regularly booked themselves into five stars and planned their trips at the last moment at soaring air fares, some planned their office travels to coincide with family functions. No questions were asked on the purpose of travel, agenda and deliverable outcomes of the trip and the CEO was well-loved because people were getting what they wanted.
But is that the right way to build an organisation and groom your employees for future success and how sustainable is this behaviour?
One of the most rewarding aspects of leadership is witnessing the personal and professional growth of your team. This growth is seldom achieved by keeping a firm control on all decision-making or by making yourself popular. As a CEO, I like to create more leaders in my organisation, so that I can free my time to work on achieving organisational goals rather than manage day-to-day work.
In organisations where employees are spread across wide locations and need timely authorizations from head offices located in far-off metros like Mumbai, Chennai, Bengaluru, or Delhi, an approval matrix and formal documentation for memos, approvals, and monetary delegation matrices is a must. It should define the authority of employees based on hierarchy, vintage and grade as it allows the work to be done more efficiently and promptly.
When seeking popularity and power, leaders centralize most approvals and powers at the top which leads to bottlenecks and inefficiencies. Alternatively, encouraging a culture of documentation and delegation not only streamlines operations but also empowers employees to take ownership and make decisions within defined boundaries. It also builds skills in employees and grooms them for growth while reducing personal bias and favouritism.
Of course, this doesn’t mean that leaders aren’t human and don’t have personal equations with certain people who have been on their team longer or whose judgement they trust more. We all inevitably have favourites, but even in those cases the approval matrix and the process have to be followed. As a leader, I might trust the judgment of a certain employee and easily approve his/her request in principle yet the requisite process has to be followed, the memo has to be filled and the rationale has to be given. Not doing that would be unfair to the rest and would set a bad example.
Popularity Tactic #3- High Discretionary Spending on Non-Business Activities
Recently an ex-co-worker narrated a conversation with his CEO with great excitement. He said his CEO had called him to organise a vision mission session, with a cocktail and a dance party for senior leadership. On the call, they easily agreed on a Rs 10 lakhs budget for the event and he was entrusted with the amount without signing any memo or completing any documentation of ROI or benefit.
It all happened on call.
As a friend, I had to burst his bubble. “You are currently at the lowest in professional life,” I told him because this was not the last company he would work for, and if he starts expecting this kind of work culture then when he changes his job or his CEO goes then he will have to re-learn to work with the processes. Going back to a more professional way of working will come as a shock. My friend’s CEO was actually hampering his long-term professional development.
Discretionary spending on non-business generating activities or team building exercises such as offsites, get-togethers, and office parties should not be exempt from proper documentation and impact analysis. ‘What is the objective of the event? Why do you want to do the event? What is the benefit for the company in doing this event? What is the ROI?’ are questions that need to be answered and documented. Proper planning and justification of such expenses ensure they contribute positively to the company’s objectives and don’t become a source of revenue leaks.
Sometimes these expenses don’t seem too big but when transactions become huge, team size becomes big, and geography becomes multiple you can’t keep track of all these expenses unless you have a proper system process. The lack of a structured system creates unnecessary dependence on the leader and the moment he/she goes there is complete chaos.
Popularity Tactic #4: Missing Structured Vertical Reviews & Data Driven KRA
Choosing popularity and the chance of building a faithful coterie by being partial in vertical reviews with leadership heads, is a huge disservice to your organisation, Board and employees.
Driving an organisation to achieve specific goals requires scheduled impartial reviews to check the gaps and move ahead in the desired direction. The easiest way to do it is to break down the yearly goals into quarterly and monthly goals and review them at the end of each month for each vertical head. Doing so also prompts them to review their verticals more efficiently.
Data is the guardrail in such situations. The lack of predefined performance data requirements, adds to the determined muddling of waters by popularity-seeking CEOs who want to retain their importance by favouring one person over the other without giving adequate reasons other than, ‘I said so.’
In data too, most organisations and leaders focus only on sales because that is measurable and visible to everyone. But sales requires the support of other functions. Cross-functional reviews are also essential and they too need to be measurable and data-oriented.
Additionally, performance appraisals and Key Result Areas (KRA) settings are not always adequately mapped to the organisation’s goal map with tangible and measurable results. Again, these processes can be highly influenced by perception, bias, and relationships and lack transparency.
Making a KRA less about well-written English and more tangible takes some time but once that effort is put in, employees know exactly what is expected from them. It makes their performance appraisal more transparent because rather than spending time understanding what performance merited terms like ‘exceptional, exceeds expectation, meets expectation, below expectation or poor’ they now know that if their target is 100, how much should they do to get an ‘exceptional’ performance appraisal. They will not be in the dark whether 150 is exceptional or 140 is exceptional, nor will it be easy for anyone else in the system to manipulate them.
Using data for regular reviews, defining KRA and performance appraisal helps maintain focus on performance and alignment with organisational goals, reducing the influence of personal biases and relationships.
As a leader, you will definitely meet resistance when you initiate such processes because people are not used to working in such a way. But doing it will ensure that everyone in the organisation knows what is to be done and the need for micro-management on your part is removed because I believe that the day you start the micro-managing team, is your last day as a leader.
Popularity Tactic #5- Accommodating Underperforming Resources
Resources and employees who are no longer contributing to the rupee value being spent on them often continue to be accommodated due to their proximity to or favouritism by the leadership. This practice not only affects morale but also hampers the organisation’s financial health. Making tough decisions about resource allocation based on performance and contribution is crucial for maintaining a high-performing team.
In a previous company, I noticed some old, loyal employees were stuck in a time warp. They were not interested nor desirous of making any positive contribution. As a new leader, you usually don’t make changes the minute you walk in through the door and I was told by well-meaning employees that I shouldn’t make any attempt to dislodge them since they have the ear of the founders. The easy way, in such a situation, would be to play along but I decided to have a direct conversation with the founders and the Board and understand if they have any obligation towards those employees.
As a leader, you need to take a conscious call and not unsee things that are not good for the organisation. If the promoters want to keep them on then they should also know that such employees are an added expense and to not include them in the productivity count.
The fact is that accommodating such employees without consciously understanding their effect on the organisation can have a spillover impact on other employees who are motivated. Imagine them working hard at their job, spending long evenings at their desk seeing another employee who walks in by 11 am and leaves by 5 pm getting the same salary and perks as them.
How long do you think they will remain motivated?
The Real Responsibilities of Leadership
Courage and Integrity: Leaders must have the courage to make tough decisions and the integrity to stick to them. This could mean publicly admitting mistakes and taking corrective action, even if it damages their reputation.
Building Trust: Trust is the foundation of effective leadership. Leaders earn trust through consistent actions and transparency. Consider a leader who openly communicates with their team about the company’s challenges, building trust and fostering a supportive environment.
Everyday Leadership: Leadership isn’t about grand gestures; it’s about daily commitment to improvement and making a positive impact. This could be as simple as a leader mentoring a junior employee, empowering them to grow and succeed.
Leading by Example: True leaders lead by example, embodying the values they advocate. A leader who can walk the talk is always more respected than one who merely dictates.
Strategic Thinking: True leaders think beyond the immediate tasks at hand and consider the broader implications of their decisions. By prioritizing the long-term interests of the organisation over short-term gains, they demonstrate strategic thinking and foresight.
Conclusion
Leadership is about lifting a person’s vision to higher sights. This means being a source of inspiration, fostering a culture of excellence, and leading by example. It’s about making the tough calls and standing by them, even in the face of adversity. Most of all, leadership is about being steadfast in your principles and unwavering in your commitment to the team’s growth and success.
Leadership is not a popularity contest. Popularity often requires compromise, and while compromise is sometimes necessary, excessive concession can dilute vision and stifle growth. Leaders who prioritize being liked over making difficult but necessary decisions often find themselves in a position where their leadership is questioned.
Effective leadership strikes a balance between inspiration and operational efficiency. It’s about being a visionary while also being grounded in reality. As leaders, our goal should be to create a lasting impact, not just to be liked. And while this path may be challenging, it is the one that leads to true and enduring success.
The author, Alok Aggarwal, is Chief Executive Officer at Muthoot Homefin India.
DISCLAIMER: The views expressed are solely of the author and ETHRWorld does not necessarily subscribe to it. ETHRWorld will not be responsible for any damage caused to any person or organisation directly or indirectly.
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