The greatest leaders aim to be servants


(This article appears in the print edition of the Atlanta Journal-Constitution, dated February 19, 2012. Click here to download the article, or click here if you subscribe to the electronic edition.)

Toward the end of the 1950s, Robert Greenleafa management thinker working at AT&Twas drawn to the book ‘The Journey to the East’ written by Herman Hesse. This book led Greenleaf to develop one of the most profound management concepts called “servant leadership.”

“The servant-leader is servant first,” wrote Greenleaf in his 1970 essay titled ‘The Servant as Leader.’ “It begins with the natural feeling that one wants to serve, to serve first. Then conscious choice brings one to aspire to lead,” he wrote.

Greenleaf was influenced by the story of selfless leadership in Herman Hesse’s book.

Hesse, a Nobel Laureate, had written his book in the 1930s when the world was going through several wars and dictatorial rules. In the fictional story, the lead character is a servant whose real identity of a leader does not get revealed until the end. Hesse used the story of selfless leadership as a plausible criticism of his country, Germany, and Adolf Hitler. The German politicians understood the political connotations and expelled him out of the country. He later sought asylum in Switzerland.

As the title of the book suggests, Hesse was influenced by Eastern philosophy and its view of leadership.

The ancient Indian philosophical text ‘the Bhagavad Gita’ calls out selflessness as the ultimate leadership quality. True leadership is leading without selfish attachments, it says.

Tao-te-Ching, the ancient Chinese philosophical text, says, “The greatest leader is the one whose existence is hardly known. When such leaders complete their tasks, their people take pride in the accomplishment as their own.”

Selfless leadership as defined by the Bhagavad Gita and Tao-te-Ching was not a popular topic during Hesse’s time that was menaced by autocratic leaders.

Robert Greenleaf was drawn to the topic of selfless leadership at a time when many management thinkers like Peter Drucker had started questioning the prevailing principles and practices of management. Back then, leadership was a fairly unexplored topic in management studies. It was not until in the 1980s when scholars such as Warren Bennis started giving prominence to the study of leadership.

In his writings and lectures, Greenleaf argued that servant leadership must be institutionalized before organizations could rise to greatness. In another essay titled ‘The Institution as Servant,’ he asserted that societal progress is dependent on servant leadership to flourish in all types of institutions. “If a better society is to be built to provide greater opportunity for its people,” he wrote, “organizations must raise the capacity to serve and the performance as servant.”

Leading management thinkers have embraced servant leadership.

“The very top people of truly great organizations are servant-leaders,” writes Stephen R. Covey in ‘The 8th Habit.’

In ‘Good to Great,’ Jim Collins describes servant leadership as “Level 5 Leadership”–greatness that comes with personal humility and professional will.

A handful of organizations have made strides in institutionalizing servant leadership as a practice, while pursuing their core business objectives.

Management experts have recognized Southwest Airlines as a company that has institutionalized servant leadership. Southwest has implemented what it calls the Golden Rule–“to treat people the way that you want to be treated.”

Synovus Financial Corporation of Columbus, Georgia, is another company that has been recognized by many scholars as a company that has used servant leadership as a code of conduct. Synovus uses the philosophy of “act of kindness,” which originally led to its establishment in 1880.

For many organizations, servant leadership remains an illusive topic. They mistake “customer service” as service required to be servant leaders, but such service is only a byproduct of profit-making. True service is the work done to make a difference in people’s lives whether they are customers or any stakeholder.

One of the main obstacles of servant leadership is the traditional organizational structure, according to Dr. Keith Kent of Greenleaf Center for Servant Leadership. He says many organizations are not designed to unleash the energy and intelligence of its people, which is required of servant-leaders.

As the world becomes more connected, informed, and democratized, people need leadership that can inspire them toward meaningful and larger-than-life goals. This is where servant leadership comes in.


Why management innovation is important for economic growth?


(This article appears in the print edition of the Atlanta Journal-Constitution, dated January 8, 2012. Click here to download the article, or click here if you subscribe to the electronic edition.)

Management must nix archaic models

Economic policies and government interventions can no longer sustain or grow the economy, argue leading management experts who see the practice of management—the discipline of managing human capabilities and productivity—as the bottleneck for the new economy everyone is yearning for.

Julian Birkinshaw, a professor of management at the London Business School, argues that the current economic crisis is also a failure of management. In his book Reinventing Management, Birkinshaw blames ill-designed and badly executed management models for the struggling economy.
Gary Hamel, a leading management thinker, explains the limitations of management in his book The Future of Management. When the corporate world institutionalized management more than a century ago, it was based on two main ideas: Principles of scientific management introduced in 1911 by American engineer Frederick W. Taylor and concepts of bureaucracy and division of labor introduced in the late nineteenth century by German sociologist Max Weber. Taylor’s scientific methods were designed for factories and industrial outputs. Weber was influenced by the socialist ideologies of his time. Hamel points out that their ideas are not quite applicable in the Information Age.
Business schools have been criticized for not reforming their curriculum that is based mostly on century-old principles. Many critics say too much emphasis on the topics of profit-making has led to no or little consideration for the topics of trust and social values. Business educators agree to this criticism. 
Nitin Nohria, the dean of the Harvard Business School (HBS), says in a 2008 article he wrote for the Harvard Business Review—“Managers have lost legitimacy over the past decade in the face of a widespread institutional breakdown of trust…”
In 2008, HBS established the MBA Oath (
mbaoath.org)—a pledge of integrity taken by graduating business students. This oath is similar to the oaths of integrity taken by doctors and attorneys before starting their respective professions. Many leading business schools like MIT’s Sloan School of Management and the University of Chicago’s Booth School of Business have embraced the MBA Oath.
A handful of business leaders have also acknowledged the need for what experts call “management innovation”—re-engineering the practice of management to align with a world that is now more connected, informed, and democratized. They are experimenting different management models.
Hindustan Computer Limited (HCL) of India has come up with the philosophy of “
employees first, customers second,” which is also the title of the book by its CEO Vineet Nair. The company philosophy has been credited for transforming HCL into a $2 billion business. You cannot serve customers and grow your business unless you focus on your own people, says Nair.
Google allows its employees to spend 
20 percent of their paid time in projects of their personal choice. Many successful products like AdSense and Orkut have resulted from this program.
In 2002, SAS CEO Jim Goodnight 
surveyed his employees whether they were okay with taking the company public. Eighty seven percent of the employees said “no.” Goodnight listened, placing faith on his organization that has produced a steady increase of revenue year-after-year.
Management experts refer to companies like HCL, Google, and SAS as “management innovators.”
One of the new models of management is to use collective wisdom over hierarchical decision-making, writes Julian Birkinshaw in his book. He cautions the shortfall of traditional business “alignments” like management by objectives, key performance indicators, and strategic planning. He argues that alignments emphasize short term gains but obscure long term visions.
Gary Hamel asserts that most organizations “exploit no more than a fraction of their employees’ imagination” and recommends turning ordinary employees into extraordinary innovators by tapping into their creativity. Hamel envisions the future of management as a discipline of managing human creativity and passion.
Passion can be instilled in organizations by creating meaning and purpose that transcend financial goals, insist Raj Sisodia, David Wolfe, and Jag Sheth (Emory University) in their book 
Firms of Endearment. They studied long term performance of companies that are “delivering emotional, experiential, and social values and not just profits.” These companies, which they called “firms of endearment,” returned an average of 1026 percent for their investors over a ten-year period ending in 2006 compared to 122 percent for the S&P as a whole.
Many of us believe that technological innovation can recover the economy. While this is true, we must also pay attention to its enabler—the practice of management. This is why management innovation is important for economic growth.