On a recent London visit, the polymath historian Yuval Noah Harari held a large audience gathered at the Royal Geographical Society spellbound. His core tenet, also set out compellingly in his tome “Sapiens: A Brief History of Humankind”, is that our capacity to tell stories and create myths is critical to human development and organisation. Our ability to trust in constructs like capitalism, national identity and the power of technology has been vital to societal and economic development. As a Search and Development consultancy we pay great attention to leadership roles at the top of these constructs, particularly at the top of corporates. In this Overture we argue that business leaders do well to understand the power of myth and story-telling. And those keen to empower diverse boards ignore the importance of narrative and belief at their peril.
Licence to operate
Myth and story-telling seem tangential to the hard business of running a corporation. And we agree that there is no short cut for operational and technical excellence.
But business keeps bumping up against stubborn issues that won’t go away and which, if ignored, can ultimately threaten the licence to operate. Such issues include the public demand for business to embrace greater diversity or populist nationalism demanding the end of economic arrangements that are obviously beneficial to companies – what we’ve come to describe in the UK as Referendum Risk.
“Telling effective stories is not easy. The difficulty lies not in telling the story, but in convincing everyone else to believe in it”
Yuval Noah Harari, Sapiens: A Brief History of Humankind
Shareholders, stakeholders and complexity
Fidelio’s focus in Board and Executive Search is senior roles that are critical for shareholders and stakeholders. And we have developed a working definition of leadership which underpins both Search and Development. The ability to deal with complexity is key for a business leader.
Assuming a seat at the top table – whether the Board or Executive Committee – means taking a broad responsibility for the business. This clearly includes financial performance but also entails accountability to key stakeholders of the organisation. And the interests of shareholders and stakeholders are not always obviously aligned; at times interests collide.
Leadership involves finding or creating a path through what can be a confusing landscape and making this path visible to others. This is where narrative and story-telling come into play. The ability to articulate a compelling strategy which satisfies and enthuses a range of stakeholders is surely the hallmark of a leader.
There is much evidence that employees and citizens are willing to sacrifice their immediate short-term interest for the greater good, if that greater good is communicated with conviction and inspiration. Shareholders and stakeholders can also be persuaded to buy into the vision and the corporate journey. Think of Steve Jobs’ mesmerising presentations to the media and the market.
Gender imbalance
While a charismatic and visionary CEO is an enormous asset to a business, any Chairman worth his or her salt will also be alert to the risks associated with such a dominant personality. Controversially it is also worth noting that, while there are examples of strong female leaders, there are many more examples of charismatic male business leaders who readily spring to mind.
At his lecture at the Royal Geographical Society, Hariri was asked about the continuing gender imbalance in positions of power. He posited a conundrum. Leadership in the 21st century depends upon superior social skills. The Pope does not succeed to the top of the Catholic Church by brute force; nor do business leaders reach the Boardroom this way. Women are generally perceived to have greater social skills than their male counterparts.
So why are women still so woefully underrepresented in the leadership ranks of business or politics, for example?
This was a question that we also sought to address in Fidelio’s recent “A Seat at the Table”, a development programme attended by a select group of senior female executives at Sandhurst. Philosopher Robert Rowland Smith explored three revolutions which had empowered feminism: the French Revolution; the Industrial Revolution and the Sexual Revolution. All three had combined to challenge authority, including male authority. But patriarchal structures have a long history in most cultures and are not likely to tumble overnight, including in the business world.
Effective social skills and communication
Hariri said bluntly he did not know why women who are perceived to have superior social skills don’t command more leadership roles. One controversial theory suggests that women’s superior social skills are themselves a myth. It is argued that women do indeed have a marked ability to connect with their immediate network which is typically up to Dunbar’s magic number of 150. But it is men who are able to engage more effectively with larger numbers. And this, if true, is clearly an advantage for reaching the upper echelons of the organisation.
It is not necessary to agree with this theory. Clearly perceptions are important and business leaders are increasingly aware of the perils of unconscious bias – see “Great Leaders Who Make the Mix Work”, (Harvard Business Review, September 2013).
Nonetheless, it is easy to associate traits that are more commonly found among male directors with leadership, which means women continue to face more of an uphill struggle. So what is to be done?
First, women in senior executive roles or aspiring to senior executive roles do well to think about presence and impact. “A Seat at the Table” devotes considerable space to exploring how to convey authority, how to gain access and how to hold the space. This needs to be authentic but it needs to be done. Technical and operational prowess alone does not secure the seat at the top table.
Secondly, we should think very carefully about the attributes we associate with and expect from business leaders.
Not just talking
Complexity has undoubtedly grown as anti-business sentiment has increased.
At a recent breakfast hosted by Fidelio for the Corporate Affairs Directors of the UK’s leading companies, we looked at the skills required to navigate Referendum Risk. Over the past 5 years, UK corporates have built up an impressive array of senior corporate affairs expertise that excels in engaging with government and regulators.
But the ground swell of popular support for Scottish independence, for leaving the EU and for electing a highly unexpected and controversial leader of the Labour party has wrong-footed business leaders. This ground swell is emotional and heart felt rather than rational and calculated. Carefully crafted technical arguments on the part of business are not making headway.
As one of our guests observed, Boards need to listen.
Good communicators are also good listeners but this is an attribute of leadership that is frequently overlooked. We were recently impressed by a female CFO who is engaged in a major change management programme. She has taken the opportunity to speak directly to the senior female executives in the organisation about the attributes that a business under acute pressure urgently requires. These include empathy, perceptiveness and the ability to listen.
“Diversity: the art of thinking independently together.”
Malcom Forbes (1919 – 1990)
It matters little whether listening skills are a peculiarly female or male attribute. Leaders absolutely need to be effective communicators; shareholders and stakeholders demand a strong narrative. But in such a febrile environment where business rapidly becomes the enemy, those around the top table need to be able to listen, as well as analyse and opine.
Not all Boards and Executive Committees have these skills. They should have. And this will almost certainly bring new profiles and personalities into the Boardroom. This will be a major step towards greater Board diversity and, in our capacity as a challenger Board Search firm, it is a step we are committed to take.
Fidelio High Notes
-
-
- Fidelio’s Board Practice is committed to building the pipeline of Senior Female Executives. Our inaugural “A Seat at the Table” Programme was successfully delivered at Sandhurst in September. “A Seat at the Table” 2016 will follow.
- Fidelio will host a Board Breakfast on the implication of Activism for Board Directors and Board composition in response to client demand.
- Fidelio’s Search Practice sees new role requirements in Corporate Affairs to meet challenges such as Referendum Risk.
- Fidelio’s IR Search team supports clients in structuring and building IR capability; overview of global IR provided at DIRF Conference in Copenhagen.
-
Please contact us with comments or for more information at info@fideliopartners.com