How Power Leaders Achieve the Impossible

Growing a business during a recession is the ultimate test of leadership. Many believe that it’s impossible, but consider that while the Dow Jones Index plunged more than 40% between the fourth quarter of 2008 and the first quarter of 2009, these industries experienced significant growth:

• Movies - 22% increase
• Personal care - 18% increase
• Video games - 14% increase

Growth was not limited to these three industries, however. NetFlix experienced a 26% increase, big screen TVs are predicted to increase by 16% in 2009, and smart phones have doubled their sales in the past year!

History has proven growth occurs during other tough times. Kellogg’s, Proctor & Gamble and Chevrolet all grew their businesses during the Great Depression to become their respective market leaders. In addition, General Electric, Disney, Hewlett-Packard and Microsoft were all recession-era start-ups.

The times “they are a changin” as the song goes. The current recession will form the business climate for the next generation, and executives who harness and convey their power successfully will position their organisation for the near and distant future. Leaders who wish to grow their businesses under the current economic conditions have two requirements: they have to have bold ideas, and they need to act fast. Stakes are higher, and the survivors will get in the game early.  Late adaptors will never catch this bus.

Speed and scope are not the only distinguishing leadership factors, however. An essential leadership component is the use of power versus authority. Distinguishing between Power Leaders and Authority Leaders during a stable economy can be difficult because executives rarely reveal their authentic nature under favourable conditions. But in uncertain times, they cannot hide their true colours.

Authority Leaders rely on their position to preserve the status quo, whereas Power Leaders demonstrate their ability to communicate with their workforce and engage with their markets to grow their business. They convince their employees they’re able to Achieve the Impossible and meet market demand even during the most challenging times.

Power Leaders distinguish themselves from Authority Leaders by strengthening relationships with their people and most importantly, altering their relationship with the current reality. Bottom line, Power Leaders are better able to lead change, create organisational consistency and grow their business.

Power Leaders	Authority Leaders
Focuses on Change	Focuses on Complexity
Changes the Reality	Clings to Reality
Assesses Risks	Avoids Risks
Pragmatist	Perfectionist
Apple Tree Organisational Structure	Christmas Tree Organisational Structure

Conclusion
Organisations attempting to Achieve the Impossible are not doing so as a last ditch effort.  Achieving the Impossible is not for dysfunctional companies who aspire to mediocrity - it’s for strong companies, and Power Leaders realise you don’t have to be sick to get better.

The most important priority for Power Leaders is recognising followers won’t commit to any initiative through authoritarian means. Executives won’t be able to lead change if they apply the same top-down management style that has inhibited and restricted employees for centuries.

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Stephen Long, PhD
The Institute for Level Six Leadership
www.LevelSixLeadership.com

The Institute for Level Six Leadership is a management consulting firm specialising in leadership development committed to strengthening your most important resource, Human Capital, by enhancing individual and organisational performance. L6L provides one-on-one coaching, team coaching and customised organisation learning projects.