There are differing schools of thought when it comes to leadership, and countless sayings. As a leader, you can lead by example, serve, command, inspire—the list goes on and on. In reality, leadership is usually best understood through examples rather than verbs.
We are very fortunate at Ethisphere. Companies invite us into their boardrooms and behind the curtain of their operations. We have seen countless examples where leadership not only drives performance, but creates jobs, enhances communities, and improves the quality of life around the world. In this, our second and what will be an annual, issue dedicated to the CEO, I am pleased to share just a few examples.
We saw firsthand how Ford CEO Alan Mulally led not only Ford, but perhaps the entire auto industry, during a precarious time. His secret? Creating a culture of openness and transparency. We learned firsthand of the transparency around “red/yellow/green” and we also learned that he invited employees of all rank and position to his weekly business process reviews with his executive team.
We learned firsthand that when now CEO Dennis Muilenburg arrives at one of Boeing’s facilities around the world, he travels with his bicycle. Boeing’s business spans 150 companies and many different cultures and mores. Authenticity and accessibility translate in every language. Any employee who wants to ride with Dennis may do so. Thousands have.
We learned that when Parsons CEO, Charles Harrington, was told that an employee in the Middle East inadvertently entertained a lower-level government employee connected to a project bid they had won, he directed that they back out of the deal—which had a financial impact. Parsons builds infrastructure projects around the world. After passing on the Mideast deal, they still ended the year with record backlogs. Are these CEOs role models? I think so.
We continue to see the other side of this also. A recent survey conducted by Notre Dame* found that nearly half of Wall Street executives said they believe their rivals have engaged in illegal or unethical behavior, an increase from 39 percent in 2012. Plus, 34 percent of those earning $500,000 or more annually said they have witnessed such wrongdoing. Are some of these executives “role models”—albeit negative ones—in an industry that has paid more than $100 billion in fines and sanctions over the last several years? I believe so.
Maybe in addition to the title Chief Executive Officer, it’s time to add something more: Chief Role Model. The Guest Editor of this issue, Richard Davis, Chairman & CEO of U.S. Bank, writes eloquently about the importance of being a banker. Bankers help build businesses, homes, communities, and more. And while that comes with responsibility, risk, and accountability, it’s something to be proud of.
Other executive contributors to this issue from Control Risks to Honeywell, Hasbro, Holland America Line, Jones Lang LaSalle and Kellogg share examples that add definition and color to what leadership means today.
We at Ethisphere have a clear position about this: role models build culture. And the right culture is the ultimate sustainable performance advantage.
We hope you enjoyed the issue.
Tim
* Source: The Street, The Bull and The Crisis: A Survey of the US & UK Financial Services Industry”. Presented by The University of Notre Dame. May 2015
This article was featured in the Q3 2015 issue of Ethisphere Magazine. To subscribe and learn more about Ethisphere Magazine click here.
