Entrepreneur Voices on Effective Leadership

On effective leadership

The Staff of Entrepreneur Media, Inc.

Contents

preface

THE EMERGENCE OF LEADERS XV p

chapTer 1

22 QUALITIES THAT MAKE A GREAT LEADER 5

chapTer 2

SEVEN TRAITS OF EXCEPTIONAL LEADERS 17

DEFINING LEADERSHIP

Aleader can be defined as someone who leads people, a project, or a mission from one phase to another—not strictly for their own purpose but for the (perceived) benefit of others. Of course, that’s just one of many definitions, and in this book, we focus on leadership of other people.

Since there are so many aspects of leadership, it has been defined by numerous people over the centuries. After all, there have been leaders of armies, ball clubs, space exploration, politics, protests, unions, and, of course, businesses. With leadership playing such a significant role in our world, it’s no wonder so many people have had something to say (or write) about it. In fact, the late Ralph Stogdill, Professor Emeritus at Ohio State University and known for his research and publications on leadership and organizations, said, “There are almost as many definitions of leadership as there are persons who have attempted to define the concept.”

Here are some pertinent quotes that define just ten of the many facets of strong leadership:

1. On leading from within: “Successful leadership is leading with the heart, not just the head. [Such leaders] possess qualities like empathy, compassion and courage.” —Bill George: Former CEO of Medtronics and Ethics Professor at Harvard Business School

2. On facing challenges: “The ultimate measure of a man is not where he stands in moments of comfort and convenience, but where he stands at times of challenge and controversy.”

3. On gaining knowledge: “Leadership and learning are indispensable to each other.” —John F. Kennedy

4. On getting the most from others: “The task of leadership is not to put greatness into people, but to elicit it, for

the greatness is there already.” —John Buchan, Novelist, Historian and former Governor General of Canada

5. On inspiring others: “If your actions inspire others to dream more, learn more, do more and become more, you are a leader.” —John Quincy Adams

6. On serving others: “People don’t care how much you know until they know how much you care. —John C. Maxwell, leadership expert and founder of EQUI, and international leadership development organization

7. On keeping a low profile: “A leader is best when people barely know he exists, when his work is done, his aim fulfilled, they will say: We did it ourselves.” —Lao Tzu, Chinese philosopher and founder of Taosim

8. On moving forward: “The task of the leader is to get his people from where they are to where they have not been.”

9. On achievement: “Leadership is a process whereby an individual influences a group of individuals to achieve a common goal.” —Peter Northouse, Professor of communications and author of several leadership books

10. On understanding those you are leading: “He who cannot be a good follower cannot be a good leader.” ―Aristotle

Of course, communication and patience are also cornerstones of leadership. And as you will read in this section, there are so many other ways to define a good leader. It should also be noted that

there have always been, and still are, leaders who defy almost everything listed in the upcoming pages. They prey on weakness, fear, and even desperation in people, and preach “better days” ahead if you follow their lead, which is rigid, actually an agenda, and not in the best interest of those who choose to (or are forced to) follow. They can be powerful leaders, but they are not improving the well-being of their followers or employees. Some major companies have had such leaders and seen disastrous results. Unfortunately, as we’ve seen throughout history, such leaders, in business or elsewhere, often attain some of their goals before losing their leadership positions. The point is, while we celebrate the positive potential of leadership in the upcoming pages, it’s worth noting that not all leaders are leading people in a positive direction. Fortunately, most are trying to.

22 Qualities That Make a Great Leader

Not all leaders are alike; in fact, they run the gamut from authoritative to leading by consensus. While they share the same title, they don’t share the same leadership abilities or qualities, many of which are not necessarily “in the manual,” so to speak.

Much of leadership stems from the personality traits, plus the innate and learned behaviors that make up the individual. Generally speaking, these

intangibles are hard to measure, such as confidence, passion, integrity, open-mindedness, and various other qualities that come from within each of us. These qualities put you in touch with yourself and, more significantly, with the people you will be leading. They allow you to have an impact on your followers. After all, if a leader has no impact on those being led, then, no matter how much leadership training they have had, they will not make a great leader.

Below are 22 qualities that make great leaders, gathered from various sources, including CEOs, authors, founders, a former governor, and others. Consider which qualities you possess and those you need to further develop.

1. Focus . “It’s been said that leadership is making important but unpopular decisions. That’s certainly a partial truth, but I think it underscores the importance of focus. To be a good leader, you cannot major in minor things, and you must be less distracted than your competition. To get the few critical things done, you must develop incredible selective ignorance. Otherwise, the trivial will drown you.” —Tim Ferriss, bestselling author, host of The Tim Ferriss Show, https://tim.blog

2. Confidence . “A leader instills confidence and ‘followership’ by having a clear vision, showing empathy and being a strong coach. As a female leader, to be recognized I feel I have to show up with swagger and assertiveness, yet always try to maintain my Southern upbringing, which underscores kindness and generosity. The two work well together in gaining respect.” —Barri Friedman

partner and president, Ketchum Inc.

3. Transparency. “I’ve never bought into the concept of ‘wearing the mask.’ As a leader, the only way I know how to engender trust and buy-in from my team and with my colleagues is to be 100 percent authentically me—open, sometimes flawed, but always passionate about our work. It has allowed me the freedom to be fully present and consistent. They know what they’re getting at all times. No surprises.” —Keri Potts, senior director of communications, ESPN

4. Integrity . “Our employees are direct reflections of the values we embody as leaders. If we’re playing from a reactive and obsolete playbook of needing to be right instead of doing what’s right, then we limit the full potential of our business and lose

quality talent. If you focus on becoming authentic in all your interactions, that will rub off on your business and your culture, and the rest takes care of itself.” —Gunnar Lovelace, co-CEO and cofounder, Thrive Market

5. Inspiration. “People always say I’m a selfmade man. But there is no such thing. Leaders aren’t self-made; they are driven. I arrived in America with no money or any belongings besides my gym bag, but I can’t say I came with nothing. Others gave me great inspiration and fantastic advice, and I was fueled by my beliefs and an internal drive and passion. That’s why I’m always willing to offer motivation—to friends or strangers on Reddit. I know the power of inspiration, and if someone can stand on my shoulders to achieve greatness, I’m more than willing to help them up.” —Arnold Schwarzenegger, former governor of California

6. Passion. “You must love what you do. In order to be truly successful at something, you must obsess over it and let it consume you. No matter how successful your business might become, you are never satisfied and constantly push to do something bigger,

better, and greater. You lead by example, not because you feel like it’s what you should do, but because it is your way of life.” —Joe Perez, cofounder, Tastemade

7. Innovation . “In any system with finite resources and infinite expansion of population—like your business, or like all of humanity—innovation is essential for not only success but also survival. The innovators are our leaders. You cannot separate the two. Whether it is by thought, technology, or organization, innovation is our only hope to solve our challenges.”

8. Patience. “Patience is really courage that’s meant to test your commitment to your cause. The path to great things is always tough, but the best leaders understand when to abandon the cause and when to stay the course. If your vision is bold enough, there will be hundreds of reasons why it ‘can’t be done’ and plenty of doubters. A lot of things have to come together—external markets, competition, financing, consumer demand, and always a little luck—to pull off something big.” —Dan

9. Stoicism. “It’s inevitable: We’re going to find ourselves in some real shit situations, whether they’re costly mistakes, unexpected failures, or unscrupulous enemies. Stoicism is, at its core, accepting and anticipating this in advance so that you don’t freak out, react emotionally, and aggravate things further. Train our minds, consider the worst-case scenarios, and regulate our unhelpful instinctual responses—that’s how we make sure shit situations don’t turn into fatal resolutions.” —Ryan Holiday, author of The Obstacle Is the Way, and former director of marketing, American Apparel

10. Wonkiness. “Understanding the underlying numbers is the best thing I’ve done for my business. As we have a subscription-based service, the biggest impact on our bottom line was to decrease our churn rate. Being able to nudge that number from 6 percent to 4 percent meant a 50 percent increase in the average customer’s lifetime value. We would not have known to focus on this metric without being able to accurately analyze our data.” —Sol Orwell, director of strategy, Examine.com

11. Authenticity. “It’s true that imitation is one of the greatest forms of flattery, but not

when it comes to leadership—and every great leader in my life, from Mike Tomlin to Olympic ski coach Scott Rawles, led from a place of authenticity. Learn from others, read autobiographies of your favorite leaders, pick up skills along the way . . . but never lose your authentic voice and opinions and, ultimately, how you make decisions.” —Jeremy Bloom, former Olympic athlete, author of Fueled by Failure, and cofounder/CEO, Integrate

12. Open-mindedness. “One of the biggest myths is that good business leaders are great visionaries with dogged determination to stick to their goals no matter what. It’s nonsense. The truth is leaders need to keep an open mind while being flexible and adjust if necessary. When in the startup phase of a company, planning is highly overrated and goals are not static. Your commitment should be to invest, develop, and maintain great relationships.” —Daymond John, CEO, The Shark Group and FUBU; Shark on ABC’s Shark Tank, bestselling author and speaker, daymondjohn.com

13. Decisiveness. “In high school and college, to pick up extra cash, I would often referee recreational basketball games. The mentor

who taught me how to officiate gave his refs one important piece of advice that translates well into the professional world: ‘Make the call fast, make the call loud, and don’t look back.’ In marginal situations, a decisively made wrong call will often lead to better long-term results and a stronger team than a wishy-washy decision that turns out to be right.” —Scott Hoffman, owner, Folio Literary Management

14. Personableness. “We all provide something unique to this world, and we can all smell when someone isn’t being real. The more you focus on genuine connections with people and look for ways to help them— rather than just focus on what they can do for you—the more likable and personable you become. This isn’t required to be a great leader, but it is to be a respected leader, which can make all the difference in your business.” —Lewis Howes, former NFL player and New York Times bestselling author of The School of Greatness

15. Empowerment. “Many of my leadership philosophies were learned as an athlete. My most successful teams didn’t always have

the most talent but did have teammates with the right combination of skills, strengths, and a common trust in each other. To build an overachieving team, you need to delegate responsibility and authority. Giving away responsibilities isn’t always easy. It can be harder to do than completing the task yourself, but with the right project selection and support, delegating can pay off in dividends. It is how you truly find people’s capabilities and get the most out of them.”

16. Positivity. “In order to achieve greatness, you must create a culture of optimism. There will be many ups and downs, but the prevalence of positivity will keep the company going. But be warned: this requires fearlessness. You have to truly believe in making the impossible possible.”

17. Generosity. “My main goal has always been to offer the best of myself. We all grow—as a collective whole—when I’m able to build up others and help them grow as individuals.”

18. Persistence. “A great leader once told me, ‘persistence beats resistance.’ And after working at Facebook, Intel, and Microsoft and starting my own company, I’ve learned two major lessons: all great things take time, and you must persist no matter what. That’s what it takes to be a leader: willingness to go beyond where others will stop.” —Noah

19. Insightfulness . “It takes insight every day to be able to separate that which is really important from all the incoming fire. It’s like wisdom—it can be improved with time, if you’re paying attention, but it has to exist in your character. It’s inherent. When your insight is right, you look like a genius. And when your insight is wrong, you look like an idiot.” —Raj

20. Communication . “If people aren’t aware of your expectations and they fall short, it’s really your fault for not expressing it to them. The people I work with are in constant communication, probably to a fault. But communication is a balancing act. You might have a specific want or need,

but it’s super important to treat work as a collaboration. We always want people to tell us their thoughts and ideas—that’s why we have all these very talented people working with us.”

21. Accountability. “It’s a lot easier to assign blame than to hold yourself accountable. But if you want to know how to do it right, learn from financial expert Larry Robbins. He wrote a genuinely humble letter to his investors about his bad judgment that caused their investments to falter. He then opened a new fund without management and performance fees—unheard of in the hedge fund world. This is character. This is accountability. It’s not only taking responsibility; it’s taking the next step to make it right.”

City area

22. Restlessness . “It takes real leadership to find the strengths within each person on your team and then be willing to look outside to plug the gaps. It’s best to believe that your team alone does not have all the answers—because if you believe that, it

Chapter 1 / 22 Qualities That Make a Great Leader

As you can see, leaders from diverse backgrounds share qualities and strengths that have led them to success. There is universality when it comes to leadership that is bound by the human element. It’s about how to treat people, interact, inspire, and bring out the best in others . . . which will also bring out the best in you, as a leader, if you possess the right qualities.

usually means you’re not asking all the right questions.”

—Nick Woolery, VP of brand marketing, Stance Socks

turn ordinary responsibility into extraordinary leadership

Whether you were born with a talent for leading or aspire to take your leadership skills to the next level, the success of your business depends on you. With insights from over 20 contributors, entrepreneurs, and thought leaders, Entrepreneur Voices on Effective Leadership will help you:

 Define the leadership style that fits you best

 P romote growth by inspiring employees

 Take initiative and lead effectively in any position

 Earn trust from team members with empathy

 Develop leaders from within your staff

 Avoid mistakes that could ruin your reputation

 Reinvent yourself and your culture after a crisis

Plus, gain insider tips from exclusive interviews with Kodak’s former CMO Jeffrey Hayzlett, former NFL linebacker Matt Mayberry, and social entrepreneurship advocate and author Jason Haber.

For more than 30 years, Entrepreneur Media, Inc. has set the course for success for millions of entrepreneurs and small business owners. We’ll teach you the secrets of the winners and give you exactly what you need to lay the groundwork for success.

ISBN-13: 978-1-59918-617-7

ISBN-10: 1-59918-617-9

$19.

Cover design by Andrew Welyczko