Leadership: twilight of the gods

Published: 2009-03-09   please add a comment below

Richard Wagner's Ring Cycle ends with Valhalla, the lofty abode of the gods, collapsing in flames into the rising tide of the River Rhine below.  And the stolen gold, whose theft triggered the gods' downfall, sinks beneath the flood back into the hands of its rightful owners, the Rhine Maidens.  It takes 15 hours (and four operas) to tell this story.  And, it's all rather reminiscent of the recent boom and bust of the global financial system.  Pride, dishonesty and rejection of basic good sense.  So, how in our new and darker world of business leadership should we all behave?

Wotan, king of the gods, had corrupted his own position and the gods' legitimacy by failing to respect the laws he'd created.  He'd also stolen the gold to pay the Giants for building his castle.  Being forced into this at the last minute to avoid giving up his daughter - as he'd wilfully promised without any intention of honouring the deal.

There's lots more and many characters, each an archetype and mostly flawed.  But, let's stick with Wotan.  It's fair to say that a sensible leader should mostly do the opposite of what he did.  Particularly in these new and bleaker times.

So, what should be some of our guiding lights going forward?  Let's take three.

• Integrity: doing what is sensible and right.  I'm not referring to being honest; that's obvious.  And most leaders are no more dishonest than the rest of us.  The greater risk is being mislead by ideas that should never be entertained.  The mortgage debacle has been confused by its derivatives overlay.  The key point is this: mortgages shouldn't be written for people, who can't pay or against over-valued property.  To do so lacks both commercial and intellectual integrity.  And, absence of common sense.
• Simplicity: keeping products and services within bounds - so not only their creators but also salespeople and bosses understand them.  Twenty years ago, I asked an investment-banking CEO whether he understood the derivatives his people were creating.  His "I think so" was equivocal.  I doubted it then, and that was early days when things were basic.  So, on top of those mortgages, we layered derivatives beyond the ken (in function and volume) of most people - including many CEOs, legislators and regulators.  Going forward, let's question things until we understand them; and, before saying "OK".
• Humility: ensuring we're aware of our own weaknesses.  This isn't about underselling or wearing a hair shirt.  But listening, including others and seeking their support, being open to negative views and feedback, sharing credit and shouldering blame. Taking others seriously but not ourselves.  Without this, neither integrity nor simplicity are possible.

Look back over recent times, whatever your business, and rate yourself on each of the above.  High, medium or low?  What would your team members say?  Whatever it was in the past, going forward our Leadership Action Planning tool can help you review the critical aspects of leadership - for keeping on course and driving performance in tougher times.

Dr. Timothy Pascoe AM
PhD (Cambridge), MBA (Harvard), BE & BEc (Adelaide)
Creator, V|E|C|T|O|R Leadership^®