Why Leadership Styles of the Past Don’t Work Now—and Won’t in the Future

The concept of leadership is changing, as communication and respect are key. CEOs who refuse to evolve are at risk of losing their jobs

In past generations, leadership more often involved an authoritative, command-and-control approach.

People were led and kept in check by virtue of the inherent authority of a leader’s power and position. This authority ensured that employees stayed motivated for fear of losing their jobs or receiving punishment, and leaders had wider latitude to behave however they wanted.

This leadership approach no longer works, however, as professional culture and the nature of accountability have changed. The workplace has evolved and pressures from inside and outside of an organization put leadership under a microscope. It has become common for CEOs to resign for non-performance-related issues, as they are forced out for not treating employees fairly.

At Ralph Lauren, for example, CEO Stefan Larsson was asked to step down in 2017 after closing stores, cutting jobs, and making aggressive managerial changes, despite creating better-than-expected earnings. Founder Ralph Lauren cited differing views as the reason. Basically, Larsson was putting profits before people and was asked to leave the company as a result.

Ellen Pao of Reddit is another famous example, as she banned five subreddits and fired a popular employee, leading to public outcry and her eventual resignation from the company. And the recent raft of accusations of sexual harassment and hostile work environments made more prominent by the #MeToo Movement—and the subsequent cashiering of numerous leaders—have provided stark examples of how leadership accountability has changed.

Today’s CEOs must work harder to treat their employees with respect while using a more open and communicative leadership style. And what used to work for all kinds of leaders no longer works today. But why is this happening?

A changing workplace culture

We can all surely admit that there has been a change in the workplace culture over the past few years. Those who are in positions of power are no longer untouchable, and employees have far more power than ever before.

For example, one change in workplace culture is outlined in the work of organizational psychologist Robert Sutton and championed by the well-known author, speaker, and Wharton professor Adam Grant. The idea is that the contributions of superstar employees are not worth the trouble if that employee has a toxic attitude. According to Sutton, you’re better off hiring two average employees who get along with everyone rather than one outstanding worker who doesn’t interact positively with colleagues.

The priority of hiring “good” people has made its way into the world of CEOs and other leaders, which is one reason why we’re seeing so many leaders being pushed out the door before they’re ready. They didn’t adapt to the shift, but the company did. This concept isn’t necessarily new; it’s just coming to the forefront at a much faster pace as accountability changes.

Jack Welch’s leadership chart

In 2000, Jack Welch, then the widely lauded CEO of General Electric, described four styles of managers in the business world. These leadership types are based on the individual’s personality and performance.

• Type One is a leader who shares the company’s values and meets all the desired numbers. A type one leader is, ideally, who you want guiding your organization.
• A Type Two leader shares the company’s values but doesn’t make the numbers work.
• Type Three doesn’t share the company’s values and fails to achieve the numbers.
• Type Four makes the numbers but doesn’t share the company’s values.

Organizations have to decide which types of leaders they want to keep around and which they want to go. Types One and Three are obvious, as every (smart) company on the planet would keep a Type One leader and ask a Type Three leader to resign.

Questions really start to arise when dealing with a Type Four leader. On the one hand, this individual meets the company’s financial goals. On the other hand, he or she isn’t the type of person that you’d want around your employees and there is a risk of attracting negative press, causing employee turnover and disengagement, and even spurring lawsuits.

In the past, we’d see more organizations hold onto this kind of leader, simply based on exceptional bottom-line performance. But modern businesses are far more likely to let these people go because developing positive corporate values is becoming increasingly important as companies realize the tangible benefits of doing it.

Recent examples of CEOs being forced to resign because of their behavior, rather than their performance, include Les Moonves of CBS, Steve Wynn of Wynn Resorts, John Schnatter of Papa John’s, and Brian Krzanich of Intel Corporation. All of these individuals either did or said something that wasn’t in line with the company’s culture or public image.

With social media and the cameras always being on, organizations can’t afford to keep people who do negative things around indefinitely. And even when behavior doesn’t attract bad publicity, the impact on employee engagement, wellness, and productivity can severely harm an organization long term, even if the shorter-term numbers look good. More businesses are now separating themselves from inept, toxic, or authoritarian leadership at the first sign of trouble.

The traits of a successful leader

So, what are organizations looking for in a leader? It’s actually fairly simple, as companies are looking for the following traits:

• Leadership—the real variety that motivates people through being led well rather than via the authority inherent in a title
• Impeccable character
• The ability to communicate effectively
• Integrity in all aspects of leadership and life
• Sensitivity to both the needs of employees and how actions will be perceived outside of the organization

Managers and CEOs who are good people; can communicate effectively; are sensitive to the needs of their workers and the nature of their job; promote an inclusive culture, and show strong leadership through their character are in high demand.

Leaders who lead through the old “my way or the highway,” command and control approach, however, are a dying breed.

The constant scrutiny on CEOs, managers, companies, and other high-profile workers isn’t going anywhere. And, in truth, while the modern landscape has created this focus and the accountability that enforces its application, many of the best aspects of the new normal have always been good for business. People who truly know how to lead, carefully measure their actions and words and get things done in a more communicative, collaborative environment tend to do well, in any era and industry.

As a result, hiring people who get results and making sure that they reflect your corporate values is essential.

Karp HR Solutions can help by creating a hiring plan that ensures you have the right people in your organization and implementing an onboarding process that promotes your corporate values. Contact us today for more information on how we can develop your leadership team.