A true leader will inspire leadership aspirations in those who work beneath them. A great leader will challenge their board to be ever better, and to succeed in their leadership role.
However there is a process called ‘Cronyism’, whereby a leader is fearful of those beneath him replacing them. If a protégé suddenly performs better than you could have ever imagined, it could only be a few years before they’re after your job. This fear results in leaders selecting poorer qualities candidates to work for them. In effect they surround themselves with incompetence. In an attempt to protect their career, they actually hamper it because they reduce the quality of senior management, and give those senior managers enough responsibility to do some serious damage to the organization.
A ‘Crony’ in charge of public relations could permanently damage the reputation of a 100 year old brand, a ‘Crony’ in charge of accounting could allow for corruption and fraud to leak into the accounting process, and in turn create a poor relationship with shareholders when they find out about the discrepancies. Cronyism is a very negative process, and is associated with leaders who have been at the top for so long that they feel fearful of the end. Much like a dictator in the Middle East who is prepared to kill his own people to stay in power, a poor leader may be willing to sacrifice much shareholder growth in order to keep their job.
Ironically, this behavior to protect ones job could potentially be the deciding factor in them losing their job. On UK Boards, a vote of no confidence could always be effected, removing a leader from their position, and of course shareholders must reappoint directors each year, which increases the job insecurity of those at the top.
However some leaders do reach out and encourage everyone to live to their potential, and I’d like to think that this is the direction that UK plc is heading in terms of their people policies and leadership training programmes.