Genuine Leadership vs Crafty Leadership: Key Differences

More now than ever we need to understand the difference between authentic leadership and crafty leadership. Leadership styles shape the way we guide and influence others. In today’s complex business and political world, understanding the difference between authentic leadership and crafty leadership is crucial. Authentic leadership builds trust through openness and integrity, while crafty leadership often relies on façades and manipulation. By exploring these contrasting approaches, you can gain valuable insights into effective leadership practices and their impact on organizational success.

In this article, you’ll discover the foundations of authentic and crafty leadership styles. You’ll learn about their differing communication strategies and how they shape relationships within teams. We’ll also examine how each approach measures success and affects long-term outcomes. By the end, you’ll have a clearer picture of these leadership styles to help you develop your own authentic leadership skills and build trusting relationships in your professional life.

The Foundation of Leadership Styles

Origins of authentic leadership

Authentic leadership has its roots in ancient Greek philosophy, where the concept of “knowing thyself” was highly valued. The idea of authenticity in leadership emerged in the 1960s, focusing on how organizations could reflect authenticity through their leaders. This concept draws from existential philosophy, emphasizing the importance of making authentic, self-motivated choices, especially during times of social change, like our current social environment.

Evolution of crafty leadership tactics

While authentic leadership emphasizes transparency and integrity, crafty leadership has evolved to focus on strategic manipulation and impression management. In today’s digital age, leaders often develop carefully curated personas on social media platforms, which may not fully align with their private selves. This approach allows leaders to manage their perceived authenticity by presenting specific aspects of themselves to the right audience at the right time.

Psychological underpinnings of each approach

Authentic leadership is grounded in self-awareness, unbiased self-relevant cognitions, and self-determination in behavioral and relational choices. It involves aligning one’s internal sense of self with outwardly displayed behaviors. On the other hand, crafty leadership often relies on creating impressions and managing perceptions, which may lead to discrepancies between a leader’s actions and professed values. This incongruence can cause cognitive dissonance among followers and create uncertainty about organizational norms.

Contrasting Communication Strategies

Transparency vs. strategic information sharing

To build trust, you need to strike a balance between transparency and strategic information sharing. While 86% of leaders believe more transparency leads to greater workforce trust, the relationship is more complex. Transparency can drive trust, but mishandling it can severely undermine it. You should adopt a principle-based approach to transparency, identifying core guidelines for what to share based on relevance, impact on morale, and ethical considerations.

Building genuine connections vs. networking for gain

Relationship building involves establishing authentic connections through meaningful conversations and active listening. It’s an ongoing process requiring consistent effort to maintain and strengthen bonds over time. In contrast, networking focuses on expanding professional contacts, often driven by self-interest and potential career benefits. While networking can be more superficial, relationship building creates long-lasting connections based on shared values and mutual support.

Handling conflicts and challenges

To handle conflicts effectively, you should create an atmosphere of openness and problem-solving. Start by describing the conflict objectively and expressing your emotions professionally. Identify potential points of agreement and generate possible solutions that benefit everyone involved. Remember, authentic leadership involves considering both rational arguments and lived experiences. By acknowledging emotions and sharing ideas in a non-dominating way, you can lead with courage and empathy.

Measuring Success: Authentic vs. Crafty Approaches

Key performance indicators for each style

To measure the success of leadership styles, you need to focus on key performance indicators (KPIs) that reflect the impact on both people and organizational outcomes. For authentic leadership, consider KPIs that emphasize people-centric metrics. These include employee engagement, trust in leadership, and the level of open communication within the organization. Authentic leaders often see improved work engagement and higher motivation among their team members.

In contrast, crafty leadership might prioritize KPIs centered on short-term gains or impression management. However, it’s crucial to recognize that people are the heartbeat of an organization, and even the most advanced technology requires human intervention to function effectively.

Long-term organizational health

Authentic leadership contributes significantly to long-term organizational health. By fostering transparency, fairness, and ethical behavior, authentic leaders create a positive work environment that enhances productivity and employee well-being. This approach leads to stronger institutional integrity and a more consistent curriculum in educational settings.

To assess organizational health, consider using tools like the Organizational Health Inventory (OHI), which measures seven dimensions including institutional integrity, resource support, and academic concern.  These metrics can help you gage the overall health of your organization and identify areas for improvement.

Employee satisfaction and retention

Employee satisfaction and retention are crucial indicators of leadership effectiveness. Authentic leadership has been shown to negatively predict employee turnover intention. This style of leadership is positively associated with perceived supervisor support, which in turn reduces the likelihood of employees leaving the organization.

To measure employee satisfaction, focus on metrics such as job satisfaction rates, employee morale, and the level of trust between leaders and team members. Authentic leaders who demonstrate strong ethical values and show concern for their followers’ well-being tend to create higher levels of trust and job satisfaction.

Remember, effective leadership in any field, including healthcare, is critical for strengthening the quality and integration of care. By consistently monitoring these KPIs and focusing on long-term organizational health and employee satisfaction, you can assess the true impact of your leadership style and make necessary adjustments to ensure sustainable success.

Conclusion

Understanding the differences between authentic and crafty leadership styles has a significant impact on organizational success and employee well-being. Authentic leaders build trust through openness and integrity, leading to improved engagement, motivation, and long-term organizational health. On the flip side, crafty leadership, which relies on strategic manipulation, might yield short-term gains but often falls short in creating a positive work environment and fostering genuine relationships.

To wrap up, the key to effective leadership lies in aligning your actions with your values and prioritizing transparency and ethical behavior. This approach not only boosts employee satisfaction and retention but also contributes to sustainable organizational success. Be on the lookout for crafty leaders who might prioritize short-term gains over long-term health. By embracing authentic leadership principles, you can create a more trusting, productive, and fulfilling work environment for everyone involved.

Economic Value vs Political Value: Navigating Leadership in Uncertain Times

In today’s rapidly changing social and economic landscape, the role of leaders in organizations has become increasingly complex. Leaders are tasked with maximizing resources, achieving corporate objectives, and navigating the delicate balance between economic value and political value. But what do these terms really mean, and how do they impact employees and the overall success of a company?

Understanding Economic Value

Economic value refers to the tangible contributions that employees make to help organizations achieve their goals. It encompasses the work individuals do and the results they deliver, which are often rewarded with financial compensation. When leaders prioritize economic value, they focus on assembling teams with the necessary skills and expertise to drive success. The emphasis is on achieving corporate objectives and maximizing resources for the benefit of the organization as a whole.

The Influence of Political Value

On the other hand, political value pertains to how employees are utilized to further a leader’s personal or organizational political agenda. This can involve leveraging relationships, aligning with specific individuals or groups, and making decisions based on personal preferences rather than objective criteria. While economic value is based on merit and performance, political value introduces a subjective element that can impact decision-making processes and potentially undermine the overall success of a company.

The Impact of Leadership Choices

The way leaders prioritize economic and political value can have far-reaching consequences for both individuals and organizations. When leaders focus on economic value, they seek employees who can deliver results and contribute to the achievement of corporate objectives. This approach promotes fairness, meritocracy, and a results-oriented culture where individuals are recognized and rewarded for their contributions.

Conversely, when leaders prioritize political value, decisions may be motivated by personal relationships or hidden agendas. This can lead to a lack of transparency, favoritism, and a culture that values loyalty over competence. In such environments, employees may feel undervalued, and the overall success of the organization may be compromised.

Spotting the Difference: Good Leadership

So how can you identify whether your leader prioritizes economic value or political value? Here are some key indicators:

1. Department or Company Objectives

Good leaders prioritize the working relationship within the context of department or company objectives. They use inclusive language such as “we as a team” or “our objectives are.” This indicates a focus on collective success rather than personal agendas.

2. Open and Consistent Communication

Leaders who value economic contributions are transparent and open in their communication. They share information openly and directly, without withholding critical details. This fosters trust and encourages collaboration among team members.

3. Cross-Departmental Perspectives

Engage with co-workers from different departments and seek their perspectives. Are they experiencing fair treatment and equal opportunities? Do they perceive any favoritism or political maneuvering within your department? Gathering insights from others can shed light on the overall culture and leadership approach.

4. Transfer Opportunities

Consider whether your co-workers actively seek transfer opportunities into your department. If there is an unwritten rule to avoid such moves, it could indicate a lack of economic value placed on your team. Leaders who prioritize economic value attract talent and provide growth opportunities for their employees.

5. Leadership Transitions

Reflect on what might happen if your leader were to be replaced. Would the new leader clean house and assemble a new team due to a perceived lack of economic value? This can be an indication of the priority placed on results and the overall success of the organization.

The Importance of Self-Reflection

In these uncertain times, it is crucial to evaluate the leadership approach within your company or department. Understanding how you are valued can provide insight into your future prospects within the organization. Companies need leaders who prioritize economic value over personal political agendas, especially during times of economic and social uncertainty.

Take the opportunity for self-reflection and consider the following questions:

  1. Does your leadership prioritize corporate goals or personal agendas?
  2. How are employees treated within your organization? Is economic worth valued over political worth?
  3. Are you valued for the contributions you make to the organization’s success or for personal gain?

By examining your leader’s actions, words, and deeds, you can gain a better understanding of your position within the company and make informed decisions about your future.

Navigating the Future

As you navigate the complexities of your professional journey, it is essential to align yourself with leaders who prioritize economic value and foster a culture of meritocracy. By being aware of the leadership approach within your organization, you can make informed decisions about your career path and ensure that your contributions are recognized and valued.

Remember, the success of an organization ultimately depends on the collective efforts of its employees and the leadership that guides them. By prioritizing economic value over political value, leaders can create an environment that fosters growth, innovation, and sustainable success for all.

So, as you reflect on your current situation, ask yourself: Will you be valued for the economic worth you provide or the political worth for personal agendas? Your answer will shape your future and guide you towards the path that aligns with your values and aspirations.

New Risk Management Measurement Requirements: Striking a Balance between Technical and Soft Skills

In today’s rapidly changing corporate landscape, risk managers face new challenges that demand a shift in their skillset. Traditionally, risk managers have focused primarily on technical aspects of the job, relying on quantitative analysis and measurement systems to manage risks. However, recent developments in the business world, such as environmental concerns and social media pressures, have highlighted the need for risk managers to enhance their soft skills alongside their technical expertise.

The Changing Landscape of Risk Management

Historically, risk managers have been trained to use corporate measurement systems to generate reports and results that inform their risk management strategies. These systems are based on quantitative analysis, relying on numbers and data to assess and mitigate risks. While this approach has been effective in many cases, it fails to address emerging risks that are difficult to measure and predict.

For instance, how can risk management systems effectively measure the political risk associated with an organization? How can they account for environmental risks that may impact the company in the coming months? These challenges require a different approach that goes beyond quantitative analysis and incorporates creative and critical thinking processes.

The Limitations of Technical Skills

Traditionally, risk managers have been hired and trained for their technical and quantitative skills. These skills enable them to analyze data, identify patterns, and make informed decisions based on numerical evidence. However, they may lack the soft skills necessary to navigate the complex and dynamic landscape of risk management.

Soft skills, such as creativity, people management, and critical thinking, are increasingly recognized as essential for risk managers. In fact, a recent LinkedIn post highlighted the top ten skills needed going into 2020, and they were all soft skills. This shift in demand raises the question: should risk managers focus solely on technical aspects of the job or should they also invest in enhancing their soft skills?

The Importance of Soft Skills in Risk Management

The evolving corporate landscape demands that risk managers possess a well-rounded skillset that encompasses both technical and soft skills. While technical skills are still crucial for data analysis and quantitative risk assessment, soft skills play a vital role in addressing the new challenges faced by organizations.

Creative thinking allows risk managers to consider alternative solutions and strategies when faced with unforeseen risks. Critical thinking enables them to evaluate the potential impact of environmental and social factors on their organization. People management skills help them collaborate effectively with stakeholders and build strong relationships that facilitate risk management processes.

Evolving Risk Management Systems

To adapt to the changing requirements of risk management, it is essential for risk managers to evolve and introduce qualitative analysis into their risk management systems. This balanced approach, combining both quantitative and qualitative analysis, can provide a more comprehensive understanding of risks and their potential impact on the organization.

By incorporating measurements for political, social, and environmental risks into their risk management systems, risk managers can effectively address the challenges posed by these emerging factors. This evolution requires a shift in mindset and a willingness to embrace new methodologies that blend science and social science.

Developing Social Capital Skills

One of the first steps towards achieving a balanced risk management program is the development of social capital skills. Social capital refers to the network of relationships, trust, and goodwill that exist within an organization. It plays a crucial role in facilitating communication, collaboration, and the exchange of information.

As risk managers enhance their social capital skills, they gain the ability to engage with stakeholders effectively, build trust, and navigate complex organizational dynamics. This enables them to gather valuable insights and perspectives that can enhance their risk management strategies.

The Benefits of a Balanced Approach

Adopting a balanced approach to risk management, which combines technical and soft skills, offers numerous benefits for organizations. By incorporating qualitative analysis into their risk management systems, risk managers gain a more holistic view of potential risks and their impact.

A balanced approach also enables risk managers to be proactive rather than reactive. They can anticipate emerging risks, adapt to changing circumstances, and implement proactive measures to mitigate potential threats. This proactive mindset is crucial in today’s fast-paced business environment, where risks can arise unexpectedly and have significant consequences.

Integrating Soft Skills into Risk Management Training

To ensure that risk managers possess the necessary soft skills, organizations should include them as part of risk management training programs. By providing training in areas such as critical thinking, creativity, and people management, organizations can equip risk managers with the tools they need to thrive in the evolving risk management landscape.

Additionally, organizations should strive to create a culture that values and encourages the development of soft skills. By fostering an environment that promotes open communication, collaboration, and innovation, organizations can empower risk managers to leverage their soft skills effectively.

Conclusion

In conclusion, risk managers must strike a balance between technical and soft skills to navigate the changing landscape of risk management successfully. While technical skills are essential for quantitative analysis and data-driven decision-making, soft skills play a crucial role in addressing emerging risks that are difficult to quantify.

By developing social capital skills and incorporating qualitative analysis into their risk management systems, risk managers can enhance their ability to identify, assess, and mitigate risks effectively. This balanced approach allows organizations to adapt to changing circumstances, anticipate emerging risks, and proactively safeguard their interests.

As the demand for soft skills continues to increase, organizations must invest in training programs that equip risk managers with the necessary tools and foster a culture that values creativity, critical thinking, and effective communication. By doing so, organizations can enhance their risk management strategies and position themselves for success in an ever-evolving business landscape.

What soft skills would you like to develop?

Risk Manager vs Risk Management Advisor: Understanding the Roles and Differences

‍Risk management plays a crucial role in organizations, helping them navigate uncertainties and potential pitfalls. To effectively manage risk, companies often rely on the expertise of professionals such as risk managers and risk management advisors. While these roles may sound similar, they have distinct differences in terms of responsibilities, approach, and skill sets. In this article, we will explore the nuances between a risk manager and a risk management advisor, shedding light on their roles and shedding light on how they approach their work.

Understanding the Role of a Risk Manager

A risk manager is typically an employee within an organization who is responsible for identifying, assessing, and mitigating risks. They work from within the company, utilizing the tools and resources available to them. The primary objective of a risk manager is to develop and implement strategies to reduce potential risks and protect the organization’s assets. They often work closely with various departments, offering guidance and support in risk-related matters.

Responsibilities of a Risk Manager

The responsibilities of a risk manager can vary depending on the organization’s size, industry, and specific needs. However, some common responsibilities include:

  1. Risk Assessment: Conducting comprehensive risk assessments to identify potential threats and vulnerabilities within the organization.
  2. Risk Mitigation: Developing strategies and policies to minimize or eliminate risks, ensuring the organization operates within acceptable risk tolerance levels.
  3. Insurance Management: Collaborating with insurance providers to secure appropriate coverage and negotiate favorable terms.
  4. Compliance: Ensuring the organization adheres to relevant laws, regulations, and industry standards, minimizing legal and regulatory risks.
  5. Crisis Management: Developing contingency plans and response protocols to effectively manage crises and minimize damage.
  6. Training and Education: Providing training and educational resources to employees to enhance risk awareness and promote a risk-conscious culture.

Skills and Qualifications of a Risk Manager

To excel as a risk manager, certain skills and qualifications are essential. These may include:

  • Strong analytical and problem-solving skills to identify and assess risks accurately.
  • Excellent communication and interpersonal skills to collaborate with stakeholders across the organization.
  • In-depth knowledge of risk management principles, frameworks, and best practices.
  • Familiarity with relevant laws, regulations, and industry standards.
  • Experience with risk management software and tools.
  • Relevant certifications such as Certified Risk Manager (CRM) or Chartered Enterprise Risk Analyst (CERA).

The Role of a Risk Management Advisor

On the other hand, a risk management advisor is an external consultant or contractor who provides expert advice and guidance on risk management practices. They are hired on a project basis or for specific tasks, offering an objective perspective and specialized knowledge. Unlike a risk manager, a risk management advisor does not have direct access to the organization’s resources and tools. Instead, they rely on their expertise and experience to provide valuable insights and recommendations.

Responsibilities of a Risk Management Advisor

The responsibilities of a risk management advisor may include:

  1. Risk Assessment and Analysis: Conducting thorough assessments of the organization’s risk profile and identifying potential areas of concern.
  2. Strategy Development: Assisting in the development of risk management strategies and policies tailored to the organization’s goals and objectives.
  3. Regulatory Compliance: Advising on compliance requirements and helping organizations meet regulatory obligations.
  4. Training and Education: Providing training and educational sessions to enhance risk management capabilities within the organization.
  5. Benchmarking and Best Practices: Conducting benchmarking exercises to compare the organization’s risk management practices with industry best practices.
  6. Risk Monitoring and Reporting: Establishing systems to monitor and report on risk-related metrics, enabling informed decision-making.

Skills and Qualifications of a Risk Management Advisor

To be an effective risk management advisor, certain skills and qualifications are crucial. These may include:

  • Extensive knowledge of risk management principles, frameworks, and methodologies.
  • Strong analytical and problem-solving skills to assess complex risk scenarios.
  • Excellent communication and presentation skills to effectively convey recommendations and insights to stakeholders.
  • Industry-specific expertise to understand the unique risks and challenges faced by the organization.
  • Proven track record of successfully advising organizations on risk management strategies.
  • Relevant certifications such as Certified Risk Management Professional (CRMP) or Certified Risk Management Consultant (CRMC).

Differences Between a Risk Manager and a Risk Management Advisor

While both roles focus on managing risks, there are notable differences between a risk manager and a risk management advisor. These differences lie in their approach, level of involvement, and access to resources within the organization.

Approach:

  • A risk manager typically takes a hands-on approach, working from within the organization and utilizing available resources to manage risks.
  • A risk management advisor, being an external consultant, takes a more advisory role, providing objective insights and recommendations based on their expertise and external perspective.

Involvement:

  • A risk manager is deeply involved in the day-to-day operations of the organization, collaborating with various departments to implement risk management strategies.
  • A risk management advisor is usually engaged for specific projects or tasks, providing guidance and recommendations without direct involvement in the organization’s operations.

Resource Access:

  • A risk manager has access to internal resources such as data, systems, and personnel, allowing them to gather information and implement risk management strategies effectively.
  • A risk management advisor relies on the organization’s cooperation to obtain the necessary information and may not have direct access to internal resources.

Maximizing the Benefits of Each Role

Both risk managers and risk management advisors play crucial roles in helping organizations effectively manage risks. To maximize the benefits of each role, it is important to understand their unique contributions and leverage their expertise accordingly.

  • Organizations can benefit from having an experienced risk manager as a permanent employee, ensuring a dedicated focus on risk management and fostering a risk-aware culture.
  • Engaging a risk management advisor can provide fresh perspectives, industry insights, and specialized knowledge for specific projects or areas of concern.

By combining the strengths of both roles, organizations can enhance their risk management capabilities and navigate uncertainties more effectively.

Conclusion

In conclusion, while the roles of a risk manager and a risk management advisor may seem similar at first glance, they have distinct differences in terms of responsibilities, approach, and resource access. A risk manager, as an employee, works from within the organization, utilizing internal resources to manage risks effectively. A risk management advisor, on the other hand, provides external expertise and recommendations on a project basis. By understanding the nuances between these roles, organizations can leverage the expertise of both risk managers and risk management advisors to enhance their risk management practices and protect their assets.

Are Risk Ambassadors the Solution to Justification Busting?

‍In today’s corporate landscape, the prevalence of justification as a means to evade responsibility has become a concerning norm. As organizations grapple with this issue, the concept of risk ambassadors has emerged as a potential solution. Risk ambassadors are individuals within a business unit who act as representatives and promoters of proper risk management activities. While they are not risk managers themselves, they serve as liaisons between the risk management department and their respective departments, ensuring clear communication and a comprehensive understanding of the risks involved.

The Role of a Risk Management Ambassador

According to the dictionary, an ambassador is “a person who acts as a representative or promoter of a specific activity.” In the context of risk management, a risk management ambassador is someone who carries out their regular duties within a business unit while also advocating for effective risk management practices. These individuals serve as a direct line of communication between their department and the risk management department, facilitating the exchange of information and insights.

The primary benefit of having a risk management ambassador is the enhanced clarity on what is happening within a specific department. By actively engaging with the risk management department, they gain a comprehensive understanding of the risks associated with their department’s activities. This knowledge allows them to generate an overall risk management perception, potentially reducing the occurrence of negative events and promoting proactive risk mitigation strategies.

The Importance of Diplomacy and Trust

While the concept of a risk ambassador holds significant potential, there are potential drawbacks that must be considered. One major concern is the risk of being viewed as a snitch or creating mistrust within the department towards the risk management team. To overcome these challenges, a risk management ambassador must embody the qualities of an ambassadorship: diplomacy, tact, and trustworthiness.

Building trust and credibility within a department they are not directly part of or paid by is no easy feat. However, with the changing dynamics brought about by the COVID-19 pandemic, the concept of a risk ambassador becomes even more relevant. As organizations transition back to in-person work, establishing a risk ambassador program could be a valuable addition to the risk management department, fostering effective communication and risk awareness in the new office face-to-face norm.

Real-World Examples and Future Possibilities

While the concept of risk ambassadors is not widely implemented, there are instances where it has been successfully utilized. For example, a large financial institution implemented a risk ambassador program before the COVID-19 pandemic. Unfortunately, the current state of remote work makes it challenging to assess the program’s effectiveness in this context. However, exploring the potential of risk ambassadors in a post-COVID-19 world is a promising avenue for the risk management department.

The question arises: can risk ambassadors be the answer to justification busting? By actively promoting risk management practices and facilitating clear communication, risk ambassadors can play a crucial role in mitigating the prevalence of justification within organizations. Their presence can help foster a culture of accountability and responsibility, encouraging employees to take ownership of their actions and decisions.

Conclusion

In conclusion, the concept of risk ambassadors offers a unique approach to addressing the issue of justification within organizations. By leveraging individuals within business units as representatives and promoters of risk management activities, organizations can gain greater clarity on risks, reduce negative events, and improve overall communication. However, it is crucial to approach the implementation of risk ambassadors with diplomacy and trust-building in mind, ensuring that they are viewed as valuable assets rather than informants. As we navigate the changing dynamics of the post-COVID-19 workplace, exploring the potential of risk ambassadors becomes even more critical in fostering a culture of accountability and responsible decision-making.