Leadership as an Organizational Capability

It was to be expected: The blogosphere is atwitter with speculation about whether Apple will continue to thrive--or even survive--with Steve Jobs’ departure as CEO.

I have to say if there’s one business I’m not worried about, it’s Apple.

I think Jobs’ departure prompts a much more important question for a leader: If I left my role (or went on a long vacation, for that matter), is the team equipped to drive the business forward without me?

When an organization does it (and just 35 percent do), succession planning typically focuses on (1) executive and high-stakes positions and (2) the formal leadership structure.

That’s well and good--we mustn’t discount the importance of getting the right folks at the top.

But it isn’t enough. Relying on the skill, personality or charisma of a single leader or executive team is both risky and short-sighted. Leaders are lured away. They mess up, they retire, they die.

A company’s best shot at stable, sustainable leadership comes from cultivating informal leadership across the organization--a critical mass of people consistently demonstrating leadership behaviors regardless of role or rank.  It’s the truly great companies that think of leadership not as a solitary act but a collective practice...not as a select group of people but an organizational capability.

The beauty in all this: Whether you’re CEO or a manager in the field, you can develop this capability on your team regardless of whether your company has a succession planning program. Here’s how:

Inform. Don’t shield people from the goods, bads and uglies of the business--instead, trust them as insiders. Educate them on market pressures, bring them in on budgetary issues, share performance data. If your team doesn’t understand what makes your business or department tick, they’ll never be equipped to make smart, strategic decisions that align with the interests of the organization.

Develop. Supplement technical training with leadership training. If leadership is about seeking out opportunity, taking initiative, articulating vision, and engaging others, then help employees grow these abilities. Present them opportunities to put their leadership skills into action on projects or committees. Establish goals and expectations around key leadership practices.  Model, teach, provide feedback, and recognize desired behaviors.

Empower. Unless there’s a compelling reason to not do so, delegate as much decision-making to team members as possible. Build from low-risk, routine decisions to increasingly more substantive ones, as the employee develops competence and confidence.  Provide guidance where needed while establishing clear accountability. Ensure employees experience the consequences of their decisions or actions--whether it’s having to mop up a mess or being lauded at the team picnic.

Great companies not only have great leaders at the helm, they recognize the power of great leadership in every corner of the organization.