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I manage CIPFA Finance Advisory Networks and I am a very experienced accountant,manager, facilitator, trainer and presenter with a very wide experience of local authority and not for profit finance, accounting,management and leadership.

Monday, 3 December 2012

LEADERSHIP CHANGE -OUTSIDER OR INSIDER?





George Entwistle - A good example of an unsuccessful insider -
Could an outsider have done better?
There are now many books published about successful historical figures which try to turn their leadership styles into generalised management approaches. These do not always work well but there can be lessons we can learn from what has happened in the past. An interesting article in this week's Economist turns the spotlight on Abraham Lincoln,perhaps the greatest US president ever. He made a series of very courageous moves by provoking the South into Civil War to break the deadlock over the struggle between North and South. He was a great orator who inspired his supporters and he did things that the normal politicians of the time would not have attempted. In regards being the presidential candidate of the Republicans he defeated two of the most experienced politicians in the US to become his party's candidate. A successful leadership outsider. But do outsiders make good leadership candidates for an organisation or are internal candidates the best?
 
If you bring in an insider he\she usually knows how the organisation works and can best keep it on a steady path. However a steady path may not be what is required and often an internal candidate can be promoted beyond his ability. Internal candidates will need to demonstrate they can either steady the ship or deliver radical change. They can be a blessing and a curse as everyone knows what they are capable and incapable of at the same time. An external candidate can offer a fresh outlook on problems but a lack of knowledge of the organisation's culture can cause much resentment as well and create barriers.
 
Guatam Mukunda of Harvard Business school describes leaders as "filtered" - known quantities, insiders who have been subjected to tests and challenges and "unfiltered" leaders who are unknown enigmas. Filtered leaders tend not to make a radical difference -- unfiltered leaders are more risky - they can make a real difference both positive and negative. People who spring to mind are Winston Churchill and Barrack Obama.
 
Unfiltered leaders bring fresh perspectives but for every successful outsider there are also failures. People who try to bring in new ideas to an organisation which desperately needs them but the organisation is not yet ready. Think of Chelsea and AVB or Brian Clough and Leeds. Hunting for stars from other organisations does not always work as their leadership is not always transferable into a new environment.
 
For an outsider to work, the organisation he is entering must be ready,willing and able to embrace a new direction and must be supportive of that new leader. Similarly the new leader must be ready to move the organisation in a new direction and not upset people but take them with him on the change journey to a happier place. There must be a fit between both these elements for the unfiltered leader to work in this new environment because otherwise the unfiltered leader will fall at the first hurdle. Filtered leaders can rarely deliver such new perspectives because people know"what they look like in their underpants."
 
Would you take a punt on an unfiltered leader or would you stay with the filtered alternative? It just depends on what level of radical change you wish to entertain within your organisation. There is a newer emerging trend which is that of the insider-outsider - a leader who has worked within an organisation then leaves it and then later comes back stronger and wiser after having gained new experiences. Steve Jobs did this with Apple and Tony Hall is going to do it with the BBC.
 
A good example of a filtered leader not really stepping up to the plate was George Entwistle of the BBC. Someone who was well known and steeped in BBC tradition but unaware that he had to radically move the BBC away from its complacency on public service broadcasting, employee relations and journalistic standards. He just didn't have a clue as to where the BBC should be going he was more interested in keeping it where it was, in what he perceived was a good place to be.
 
Filtered or unfiltered -- What might your leadership choice be? Does it depend on the degree of change your organisation needs to embark upon? I believe it probably does - but a new leader and an existing organisation need to embrace each other - or else they will both fail.
 

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