What Price Leadership?

Posted by: William W. (Woody) Williams

The tone of conversation around the espresso bar over executive compensation -- we might call it "Bonusgate" -- is pretty vehement these days. Downright vindictive at times and getting more so by the hour especially where tax payer dollars are involved.

We all have a pretty good idea about the value of administration, and its red tape pitfalls. Most of us have an understanding and acceptance of the fact that for-profit and not-for-profit organizations, state, and federal agencies require a ton of strategy, process, procedure, meetings, and paperwork in the course of the business year and someone has to do that stuff. Give the devil his/her due, eh.

But... No one gets a six (or sixty) million dollar bonus for doing paperwork. At the highest level, that kind of work pays well but it isn't what "adds value" to the company, the stockholders, or to the employees in a way that's worth millions. Bonuses like that are outside the realm of administrative paperwork and generally come down to "leadership;" that's where the value is.

There's also a lot to be said, in terms of value, for people who can influence and negotiate at the highest level. Ditto for people with top-of-the-line organization skills. Throw in some proven entrepreneurial attitude and it's a winner. If a top notch leader also has the other attributes and skills just mentioned, the chances of success for their organization increases enormously compared to organizations with less qualified leadership. That's where the money is: Leadership.

Leadership, on its own, is difficult for some to define -- especially those who lack the trait. Really good leadership is rare and there seems to be something of a sliding leadership scale among humans.

A great many, but not all, are capable of (at most) occasional fits of leadership. Very, very few are capable of "great" and continuous leadership. Most of us are between the two extremes. The numbers of people with great (world class) leadership ability who have the other traits mentioned (also in the great / world class category) are very rare, highly valuable, and amount to something less than 1/10th of 1% of the population.

From great to the small, organizations under perform -- sometimes to the point of failure -- without great leadership. It's not the only one but it is a requirement for success in any business. Because they know this, the board of directors is willing to pay the very few who qualify a great sum of money to bring successful leadership, along with those other traits, into their organization. It's the difference between performing well and performing poorly... or between success and failure for the business.

It's those "great sums of money" creating talking points around the espresso bar and headlines in the media. Especially paying out great sums of money for something most people can't even define and don't really understand well. Especially in times where most people are not so happy about their salary and not so sure about job security. Especially when it's our money -- tax dollars.

In the bad times... when things get tough and the balance sheet is bleeding red; at the point where, arguably, leadership is needed most: What is the price of leadership?

When everything is rosy and all that is touched turns to greenbacks, the cost of leadership isn't discussed much. Leaders take their money to the bank without much comment. When ordinary workers are losing their jobs, homes, and more; when every penny is hard fought and hard earned; when our families are at stack, questions about value will be asked. Answers are expected; good ones.

It is trying times that require leadership the most. You know... step up to the plate and hit a home run; show us what you're made of; leaders should be... well... leading. Instead, those we trust to lead are cowering in fear, obfuscating, and making excuses.

If you're a top dog, act like one.

Contract or no contract, board of directors notwithstanding, find the ethical backbone necessary to do the right thing. Refuse the bonus; give it back. Stop the bleeding and start the healing.

Do your job: Lead.

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