What makes an effective leader

The cult of the heroic leader remains strong.

-- Loren Gary, editor

Effective leaders are not born with the gift of knowing how to lead. Rather, they gain experience, they absorb knowledge, they see and listen to the world around them - both inside the organization and beyond. Effective leaders are also capable of assuming the leadership qualities needed for specific situations. There are many kinds of effective leaders -- among them are the charismatic leader, the transformational leader, and the pragmatic leader -- but these distinctive qualities can blend together in one person in different ways at different times.

Charismatic leaders seem to shine

A charismatic leader may seem to be born with a gift to inspire. Particularly during a crisis, people turn to this powerful voice for a grand vision and hope for solutions. Such a leader can clarify the situation for his people and instill the confidence they need. People feel safe handing off a problem to this type of leader.

What makes charismatic leaders such champions? They differ from the norm in greater self-confidence, energy, enthusiasm, and unconventional behavior. Charismatic leaders tend to:

Have a clear, fresh, new, and creative vision
Be completely devoted to their vision
Make great sacrifices to achieve their vision, taking personal risks - financial, professional, social
Create a sense of urgency among their followers
Gain the absolute trust of their followers (and also fear)
Use persuasion rather than forceful commands or democratic appeals for consensus to influence their followers

A charismatic leader is most successful during a crisis. For example, Franklin Delano Roosevelt was a charismatic leader who led the United States out of the Great Depression and readied the nation for World War II. On the other hand, Adolf Hitler was also a charismatic leader who gave his defeated nation a new vision of power and might. Thus, charismatic leaders can have great power and influence, but how they use it determines whether their inspiration works for good or not.

However, most organizations are not in a continual state of peril. A lofty vision for achieving a grand mission may not be attainable, and the value of inspiration may dissolve into a need for everyday, step-by-step progress. Thus, charismatic leaders are not always the best type of leader.

"[The charismatic leader is] supposed to have the 'gift of tongues' with which he [can] inspire employees to work harder and gain the confidence of investors, analysts, and the ever skeptical press."

--- Rakesh Khurana, professor

Transformational leaders focus on the people and the task

Unlike charismatic leaders, transformational leaders remold an organization not through the force of their own personality but by appealing to their people, gaining their trust and respect. Transformational leaders achieve results by paying close attention to their group or team as they

articulate a clear and compelling vision
clarify the importance of the vision's outcome
provide a well-defined path to attain the vision
use symbols to realize their vision
act with confidence, optimism, and self-determination
encourage their people to work as a team rather than as individuals to reach the organization's goals
empower people to make good decisions for the benefit of the whole

What makes transformational leaders effective is their ability to make their vision a clear, identifiable goal that can guide their team's actions to meet the goal. They trust their people, provide the resources they need, and encourage them to move forward.

Pragmatic leaders -- from the ideal to the real

The most apparent characteristic of pragmatic leaders is their focus on the organization rather than on people. Pragmatic leaders face the realities of business environment; they listen to and understand the truth, whether good or bad, hopeful or daunting. They are effective because they

have a vision that is recognizable as a variation of the status quo
listen carefully to their people
make realistic decisions for the good of the organization
manage by the numbers
put the right people in the right positions to get the job done
delegate responsibilities to people they can trust

Pragmatic leaders may not be as flamboyant or exciting as other types of leaders, but they get the job done. Pragmatic leaders are most effective when an organization is going through rough times or when the business environment is too turbulent to see far ahead, when a short-term, familiar vision is necessary.

After all, Meriwether Lewis and William Clark were successful in attaining the goal of their Northwest journey. When they reached the Pacific Ocean in April 1805, Lewis wrote that he was "much pleased at having arrived at this long wished for spot."

Effective leaders are future-focused

In general, leaders who are effective now and in the future have learned how to be:

Future-focused: They create a vision, articulate it to their group, and stick with it. They understand how their unit or organization fits into the larger picture, and they organize short-term tasks according to long-term priorities.

Comfortable with ambiguity: They are willing to take calculated risks, can handle a certain level of disruption and conflict, and are willing to change their minds when new information comes to light.

Persistent: They can maintain a positive, focused determination in pursuing a goal or vision, despite the obstacles.

Excellent communicators: They know how to write clearly, listen closely, run meetings, make presentations, negotiate, and speak in public.

Politically astute: They have acquired a solid sense of their organization's power structure, listen carefully to the concerns of its most powerful groups, and know where to turn for the support and resources they need.

Level-headed: They know how to stay calm in the midst of turmoil and confusion.

Self-aware: They know themselves enough to realize how their own patterns of behavior affect others.

Caring: They have a demonstrated ability to empathize with other people's needs, concerns, and professional goals.

Humorous: When the situation warrants it, they know how to inject a little mirth to relive tension within a group.

Tip: Be the change you want to bring about -- model the behaviors you're trying to encourage.

Excerpted from:

Leading People