April 6, 2020 | by David March.
As the second part in our two-part series, I’d like to take the time to examine the flip side of the coin: new-school bosses. Many educational institutions have conducted research on leadership, and transformational leadership is one of the hottest topics of the last forty years. Like any style of leadership, it has its place and time, but I believe that time is now.
New-School Bosses
New-school leaders are an interesting bunch. They find a way to motivate and lead without fear or scarcity tactics, authoritarian rule, or the tried-and-true “carrot and stick” method. But even as we have progressed past the industrial assembly line in most workplaces, many of us continue to work under transactional or authoritarian leadership. This alternative style of leadership still feels new and there is push-back from those protecting the status-quo.
Transformational leadership, as epitomized in the “new-school boss,” relies on inspiration, mobilization, and morale, according to an article published by St. Thomas University. New-school bosses tend rely on inspiration and empathy to engage their followers, as well as motivation, coaching, and continual development. As quiet leaders, they lead by example rather than through transactions or directives. They also tend to be leaders who focus on changing or improving methods or operations that no longer work.
As new-school bosses largely depend on charisma to engage their employees, this can lead to individuals being promoted to managerial roles who lack any kind of substance to back up their charm. On the other hand, this type of leader sometimes has too much charisma and may use it for nefarious means (e.g. Jim Jones or Adolf Hitler).
When are new school bosses Ineffective and Effective?
Other times, ineffective new-school bosses can have a great vision, but not have the ability to communicate it to employees. A leader may not be able to explain their vision in a compelling way at the beginning, failing to gain their employees’ buy-in, or they may not have the means to continue effective communication throughout the change process. This type of problem can be exacerbated if the new-school boss’ culture is extremely different from the existing culture of the organization or employees.
New school bosses are most effective when all the rules and standard operating procedures are in place, that way there is a framework for the change they will enact. In contrast, the old-school boss’ strength was in creating rules and order and ensuring employees’ compliance in maintaining the system. When rules exist, new-school bosses can use their talents for organization and teamwork to involve the employees in the change and its adoption.
Transformational leaders are more team-oriented and expect employees to work together. Instead of everyone working independently and separately, they are willing to use the latest technology to bring people together to collaborate and synchronize.
Perhaps the most obvious difference between old-school and new-school bosses is that new-school leaders show respect and trust in their people first, which in turn causes them to reciprocate. In this way, these bosses build rapport and gain influence as they continually engage with employees. Having this established, positive relationship provides them every opportunity to train and motivate their followers. An effective new-school boss is excellent at communicating their vision and gaining buy-in.
Pros of New-School Leadership
- Empowers employees to perform better and act independently
- Motivates employees to think creatively & innovatively
- Builds strong coalitions and establishes mutual trust – making change easier for all employees
- Can bring outdated organizations to the future & fix broken structures and systems
- Can also help small companies grow, change, and adapt to new obstacles
Cons of New-School Leadership
- Ineffective in the initial launch stage
- There must be an existing structure to fix – not good at creating systems out of nothing
- Overemphasizes the “Great Leader”
- Relies too much on ideologies
- Too static for modern corporate life – there are more interactions in a corporation than just Leader & Follower
- Focus is not on performance feedback or recognition – employees can end up feeling like they don’t know where they stand or like their personal accomplishments don’t matter
Employee Engagement
New-school bosses invest in their employees with coaching, training, and development programs. In fact, employee engagement is a primary business outcome for these leaders, which can get faster and better results when it comes to the more common business outcomes like revenue and profit.
When new-school bosses are leading effectively, they are providing the motivation, connection, and feedback that employees need to feel engaged. By trusting their employees and giving them autonomy to complete their tasks, employees feel more empowered. As this empowerment increases, so does productivity.
As discussed before, new-school leaders are excellent at gaining employee buy-in to the vision. This is important because, when employees are engaged at such a fundamental level, they feel like they’re part of the solution. They continue to innovate and contribute to change in the company, thus perpetuating the transformational change that the leader is trying to create.
The application of coaching and mentorship in the leader-follower dynamic adds to employee engagement, as well. When employees see that they are being invested in by their leaders, they know they have a future at the company and are more likely to stay. Coaching and mentoring throughout an employee’s tenure also help instill a culture of growth-mindset – employees will continue to seek positive changes and continue learning and growing.
Why is employee engagement your most important metric?
According to Gallup’s 2016 Meta-Analysis Report, companies in the top-quartile of employee engagement are 21% more profitable than in the bottom quartile. Those in the top 1% have overall success that is four times that of the companies in the bottom 1%. To quote Gallup on the issue: “The relationship between engagement and performance at the business/work unit level is substantial and highly generalizable across organizations.”
Talk about a desirable business outcome!
But increased revenue isn’t the only reason to treat employee engagement as a key metric.
When you regularly measure and analyze employee engagement, you’re actually working toward much bigger goals. By identifying problems and mis-steps before they have a chance to become full-blown issues, you set the stage for an authentic culture built around collaboration and trust.
In creating this supportive culture for your employees, they want to work for you more – and harder. They become more effective employees because they know they have a future at the company, they are empowered to act autonomously, and they are encouraged to innovate and be creative.
I could go on and on about the importance of employee engagement, and I will continue to discuss it in the rest of this four-part article series. However, my focus will shift to how old-school bosses and aspiring new-school bosses can begin to make this transformation in their own companies. It’s all well and good to learn about the importance of employee engagement – but how can you make it happen for yourself?
To take the next step, schedule a call with me at https://calendly.com/coachdavemarch
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