many people in businesS Seek positions of power to amass authority and control.
Power and authority are given to the position, not the person. With positional power comes great responsibility—responsibility to deliver on that which is expected from the leader. For those of us in leadership positions, if we don’t deliver, we are usually removed from the position, and then we lose the power, authority and control we sought.
True leaders understand that they are caretakers, not power mongers.
Power is the ability to get things done, quickly. In business, the more you get done, the more power and authority you are given.
I believe power is to be given away. True leadership is giving authority to others to make things happen.
For those leaders truly committed to producing the results expected of them, the most effective way to get there is to give power, and authority, away. By doing so, the leader is supplying the energy needed for others to deliver results. The more power a leader gives away, the more people will be working on and delivering desired results, which in turn makes the leader more powerful.
As an Executive Coach, I work with senior executives to create a culture of what I call, Reciprocating Authority.
Reciprocating Authority is a virtuous circle where leaders give authority to their team with the objective of increasing ownership and velocity on that which they are responsible for. This reciprocity requires the leader to be the first to demonstrate belief in and trust and respect of their team. In doing so, the leader creates the pathway for a virtuous circle to continue where the team develops belief in and trust and respect for their leader and their colleagues.
Who leads this way? Humble Achievers who are open, enthusiastic and whose commitment and energy transforms those around them. They are compelled to lead by Reciprocating Authority. They have the humility to put others and the responsibility of the position ahead of their own interests.
The practice of Reciprocating Authority is organized around three core principles:
The purpose of a business is to profitably serve humans.
The purpose of profit is to perpetuate the purpose of the business.
The purpose of leadership is to bring energy to those we lead and the purpose of the business.
In business school, I learned that the purpose of business is to maximize profit for the shareholders. I believe this is misguided.
I believe the purpose of a business is to profitably serve humans.
Every company should have a raison d’etre, a purpose for its existence. I also believe the operating model should be to serve—its employees, customers, suppliers and shareholders—in that order.
Think I’m crazy?
We need to look no further than the remarkable success of one company in the very difficult airline industry to validate this model. The airline industry is particularly challenging; it requires very large capital expenditures for planes, has gate fees, large variable expense, jet fuel, which is volatile and unpredictable, and requires a large labor pool. Their product is highly perishable. When a plane flies with an empty seat, the potential revenue from that seat is lost. And, if that’s not enough, it’s highly affected by weather, which they can’t control.
Despite all those headwinds, Southwest Airlines is the #1 shareholder returning stock on the S&P500 for the past 30 years. Its founder and CEO, Herb Kelleher’s philosophy was simple and powerful, “Your employees come first. And if you treat your employees right, guess what? Your customers come back, and that makes your shareholders happy. Start with employees, and the rest follows from that." Herb didn’t have maximizing shareholder value as his number one priority, and the result is his shareholders were handsomely rewarded.
The purpose of profit is to perpetuate the purpose of the business.
By generating a profit, leaders are able to expand the company’s products and services to serve more humans and to reward those that helped the business grow, its employees and shareholders.
The purpose of leadership is to inspire those we lead and to energize the purpose of the business.
Zig Ziglar, motivational speaker, said it best, “Help enough people get what they want, and you can get everything you want.” Leaders shouldn’t serve others as a tactic but rather based upon the principles of life: As you sow, so shall you reap.
I’ll say it again—the purpose of power is to give it away.
Give authority away and watch as accountability, quality, velocity and profitability accelerate beyond the predictable.
What would be possible in your life if you were to give away power?