their needs/interests have become manifold. Figure 8 (right) depicts the respective diverse stakeholders with multiple diverse needs/ interests. The dynamic tensions between these multiple needs/interests for a given stakeholder and across stakeholders have intensified significantly. Not “Either-Or”, but “And” resolutions of these dynamic tensions are required.
According to Figure 8, each and every stakeholder (given in the outer circle of Figure 8) has a range of diverse needs/interests (given in the inner circle of Figure 8) which must be fused dynamically not only for the specific stakeholder concerned, but also simultaneously across all stakeholders. For example, for share-owners compliance (i.e., sound corporate governance); return on investment (i.e., an attractive, recurring dividend pay-out), and sustainability (i.e., assuring the organisation as a future going concern) must be balanced. For organisational members (i.e., employees), however, these very same needs/interests take on another form: compliance in their case pertains to the meeting of an agreed-upon employment contract(s); return on investment to a favourable effort/performance to reward ratio; and sustainability to job security and employability. Need/interests thus are not only in a dynamic tension for a given stakeholder but also across stakeholders.
Jointly the diverse stakeholders, with their multiple needs/interests form an action community with respect to the organisation concerned. This action community is tied together by their common stake in and shared destiny with the organisation, affecting and being affected by the organisation’s intent, actions and reputation. The burning issue is: how does legitimate and credible leadership by whom emerges and is it
sustained amongst stakeholders as action community? If stakeholders are seen as an action community, and by placing them centrally, relationships become the core focal point of the organisation of the future and wealth creation. From this perspective the organisation equates to a complex web (or connectivity) of relationships which need to be formed, nourished, grown and terminated. It is argued in many quarters that the relationship capital (goodwill of an organisation) has become the most important asset of organisations.
By meeting the diverse needs/interests of multiple stakeholders in a balanced, fair and equitable manner, leadership puts goodwill in the bank allowing them to pursue a longer term vision: they are trusted and empowered to take greater calculated risks as they journey into the future in pursuit of greater dreams.
Leadership Underperformance at an individual level – Leadership Burnout and Derailment
“Leadership is a function of knowing yourself, having a vision that is well communicated, building trust among colleagues, and taking effective action to realise your own leadership potential.” – Warren Bennis
Organisations are experiencing an escalating leadership crisis. Various studies have found that more than 50% of the leaders in corporate America are deemed incompetent. When a person who is expected to achieve greatly within an organisation does not fulfil this expectation, it is known as organisational derailment. Various studies are showing a high incidence of organisational derailment. Two-thirds of all leaders have the potential to become derailed at some point in their careers (Development Dimensions International,
92 Management Today | March 2012
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