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LEADERSHIP IS A PROCESS OF SOCIAL INFLUENCE, WHICH MAXIMISES THE EFFORTS OF OTHERS TOWARDS THE ACHIEVEMENT OF A SHARED GOAL.
Thursday, March 17, 2011
Here are five factors that we think matter in answering the question; ‘Do I admire that company?’
1. What ideas does this company stand for? There are plenty of organisations with interesting technology or hot products. But the most admirable companies don't just sell competitive products and services. They stand for important ideas -- ideas that are meant to shape the competitive landscape in their field, ideas meant to reshape the sense of what's possible for customers, employees, and investors.
2. Does this company work as distinctively as it competes? You can't do something compelling, distinctive or original in the marketplace unless you do something compelling, distinctive or original in the workplace. Strategy is culture, culture is strategy.
3. Has this company created an emotional and psychological contract with its customers? Success today in every field is about so much more than price, performance, features -- pure economic value. It is about passion, emotion, identity: sharing your values. The companies that we admire aren't just efficient and productive, they are memorable to encounter.
4. Is this company a leader in creating leaders up and down its ranks? The organisations we admire don't just lead their industries in terms of innovation or financial performance or market share. They also understand that the only sustainable form of long-term business leadership is the capacity to create grassroots leaders at every level of the organisation.
5. Is this company as consistent as it is creative? Even in a world of constant change and fast-moving markets, the really great companies don’t change their strategies and practices in response to outside forces. They are confident about the ideas in which they believe; the culture they have created, their connections with customers, and are willing to stick to their strategies even as the word around them is in turmoil. As Jim Collins, the great management guru, has argued, "The signature of mediocrity is not an unwillingness to change. The signature of mediocrity is chronic inconsistency."