HBR's 10 Must Reads on Leadership (with featured article "What Makes an Effective Executive," by Peter F. Drucker)

1. Leadership is not about being complete, but about embracing incompleteness

It's time to end the myth of the complete leader: the flawless person at the top who's got it all figured out.

Embracing incompleteness. Leaders who recognize their limitations and work to complement their weaknesses are more effective than those striving for perfection. This approach allows leaders to:

• Leverage the strengths of others in the organization
• Foster a culture of collaboration and shared responsibility
• Adapt more easily to complex and rapidly changing environments

By acknowledging their incompleteness, leaders create opportunities for growth, both for themselves and their teams. This mindset shift from individual heroics to collective leadership is crucial in today's interconnected and dynamic business landscape.

2. Effective leaders possess four essential capabilities: sensemaking, relating, visioning, and inventing

Corporations have been becoming less hierarchical and more collaborative for decades, of course, as globalization and the growing importance of knowledge work have required that responsibility and initiative be distributed more widely.

Four key capabilities. Successful leaders develop and balance these essential skills:

1. Sensemaking: Understanding the context
2. Relating: Building relationships
3. Visioning: Creating a compelling future
4. Inventing: Developing new approaches

These capabilities span intellectual, interpersonal, rational, intuitive, conceptual, and creative domains. Leaders rarely excel in all four areas, making it crucial to:

• Identify personal strengths and weaknesses
• Seek complementary skills in team members
• Continuously develop and refine these capabilities

By focusing on these four areas, leaders can navigate complexity, inspire others, and drive organizational success.

3. Sensemaking: Understanding and interpreting the context of the organization

Sensemaking involves figuring out what is going on in a changing environment and deciding how to respond.

Contextual understanding. Sensemaking is the ability to interpret complex environments and communicate that understanding to others. Leaders skilled in sensemaking:

• Gather data from multiple sources
• Involve others in the interpretation process
• Test observations through small experiments
• Remain open to new possibilities and perspectives

Effective sensemaking enables leaders to:

• Create shared understanding within the organization
• Identify emerging trends and opportunities
• Make informed decisions in ambiguous situations
• Adapt strategies to changing circumstances

By developing strong sensemaking skills, leaders can guide their organizations through uncertainty and complexity with greater confidence and clarity.

4. Relating: Building relationships and trust within and across organizations

Relating involves developing trusted relationships within and across organizations.

Building connections. Effective relating is crucial for creating a collaborative and high-trust environment. Leaders who excel in relating:

• Balance inquiry and advocacy in conversations
• Actively listen to understand others' perspectives
• Clearly articulate their own viewpoints
• Cultivate a network of confidants and advisors

Key aspects of relating include:

• Inquiring: Listening with genuine intent to understand
• Advocating: Clearly explaining one's own point of view
• Connecting: Building a diverse network of relationships

By fostering strong relationships, leaders can:

• Enhance team cohesion and collaboration
• Facilitate the exchange of ideas and information
• Navigate conflicts more effectively
• Create a supportive environment for innovation and growth

5. Visioning: Creating a compelling picture of the future

Visioning involves creating compelling images of the future.

Inspiring direction. Visioning is the ability to articulate a clear and motivating picture of the future. Effective visionaries:

• Create excitement around their view of the future
• Invite others to help shape and refine the vision
• Use stories and metaphors to make the vision tangible
• Adapt the vision based on feedback and changing circumstances

Key elements of successful visioning:

• Clarity: Articulating a clear and understandable future state
• Inspiration: Motivating others to work towards the vision
• Flexibility: Adapting the vision as needed
• Inclusivity: Involving others in the visioning process

By developing strong visioning skills, leaders can:

• Align organizational efforts towards common goals
• Inspire and motivate team members
• Guide strategic decision-making
• Foster a sense of purpose and meaning in work

6. Inventing: Developing new ways to achieve the vision

Inventing involves developing new structures, processes, and ways of working to bring the vision to life.

Creative problem-solving. Inventing is about turning vision into reality through innovative approaches. Leaders skilled in inventing:

• Challenge existing processes and structures
• Encourage creative solutions to problems
• Experiment with new ways of organizing work
• Foster a culture of continuous improvement

Key aspects of inventing include:

• Innovation: Developing novel solutions to challenges
• Implementation: Turning ideas into actionable plans
• Iteration: Continuously refining and improving approaches
• Empowerment: Encouraging others to contribute ideas and solutions

By honing their inventing skills, leaders can:

• Overcome obstacles to achieving the vision
• Adapt to changing market conditions
• Create competitive advantages through innovation
• Build a more agile and responsive organization

7. Distributed leadership: Empowering leadership throughout the organization

Leadership exists throughout the organizational hierarchy—wherever expertise, vision, new ideas, and commitment are found.

Shared responsibility. Distributed leadership recognizes that leadership is not confined to formal positions but exists throughout the organization. This approach:

• Empowers employees at all levels to take initiative
• Leverages diverse expertise and perspectives
• Enhances organizational agility and responsiveness
• Fosters a culture of ownership and accountability

Key benefits of distributed leadership:

• Increased innovation and problem-solving capacity
• Improved employee engagement and satisfaction
• Enhanced organizational resilience
• More effective decision-making at all levels

By embracing distributed leadership, organizations can tap into their collective intelligence, adapt more quickly to challenges, and create a more dynamic and empowering work environment.

8. Balancing capabilities: Recognizing strengths and compensating for weaknesses

Incomplete leaders differ from incompetent leaders in that they understand what they're good at and what they're not and have good judgment about how they can work with others to build on their strengths and offset their limitations.

Complementary skills. Effective leaders recognize their strengths and weaknesses, seeking to balance their capabilities through collaboration. This approach involves:

• Honest self-assessment of skills and limitations
• Identifying team members with complementary strengths
• Delegating tasks to those best suited for them
• Continuously developing personal and team capabilities

Benefits of balancing capabilities:

• More comprehensive problem-solving
• Improved team dynamics and collaboration
• Enhanced organizational performance
• Continuous learning and growth for all team members

By embracing this balanced approach, leaders create more resilient and adaptable organizations capable of addressing complex challenges.

9. Transformational growth: Leaders can evolve their action logic over time

Leaders who do undertake a voyage of personal understanding and development can transform not only their own capabilities but also those of their companies.

Continuous development. Leaders can evolve their action logic—the way they interpret their surroundings and react to challenges—over time. This growth process involves:

• Self-reflection and increased self-awareness
• Exposure to new perspectives and experiences
• Deliberate practice of new leadership behaviors
• Seeking feedback and learning from mistakes

Stages of leadership development:

1. Opportunist: Focused on personal gain
2. Diplomat: Seeking harmony and avoiding conflict
3. Expert: Relying on expertise and logic
4. Achiever: Focused on delivering results
5. Individualist: Questioning assumptions and seeking unique solutions
6. Strategist: Creating shared visions and systemic change
7. Alchemist: Generating social transformations

By consciously working on their personal development, leaders can enhance their effectiveness and create more significant positive impacts on their organizations and society.

10. Organizational impact: Leadership styles affect team and company performance

The levels of corporate and individual performance vary according to action logic.

Leadership influence. Different leadership styles and action logics have profound effects on team dynamics and organizational performance. Key insights include:

• Lower-level action logics (Opportunist, Diplomat, Expert) are associated with below-average corporate performance
• Achiever-level leaders are significantly more effective at implementing organizational strategies
• Higher-level action logics (Individualist, Strategist, Alchemist) show a consistent capacity to innovate and transform organizations

Impact of leadership styles:

• Team culture and dynamics
• Decision-making processes
• Ability to adapt to change
• Long-term organizational success

By understanding the impact of different leadership styles, organizations can:

• Develop more effective leadership development programs
• Make informed decisions about leadership roles and succession planning
• Create environments that foster the growth of higher-level leadership capabilities
• Enhance overall organizational performance and adaptability

Last updated: August 8, 2024