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Leadership can be like a circus; a four ring circus. I see the essence of leadership as four interlocking rings of activity. The rings are Knowledge, Development, Management and Measurement. They are all in action concurrently just like a circus. Consider these rings and how they are connected, or disconnected, in your organization.
Knowledge
Knowledge is the core of success. An effective leader needs three types of knowledge: the market, the organization and the self.
A leader must have a thorough knowledge of the current and near term future marketplace and how it is likely to affect the organization. A leader asks, “What are we doing that is helping or hindering us?” The leader also has to know him/herself in two ways. Internally, what are my value system, preferred style and goals in life and with this organization? Externally, how do I value people? Are they interchangeable expense elements or truly value generators?
Development
A prime responsibility of every leader is to plan for and develop talent. Leaders need to develop the competences necessary for accomplishing current goals. Additionally, they must build capabilities for dealing with future challenges.
To meet future capability challenges leaders support succession planning systems that reach well down into management ranks. HR administers the system but the leader is accountable.
Management
Leadership is more than calling for employee engagement. Leadership is the bedrock of all operating management.
Management is divided into effectiveness and efficiency. Effectiveness is doing the things that are essential for the growth and success of the enterprise. Effectiveness is evaluated in terms of new product and employee development, market share and revenue growth, among others. Efficiency is managing processes in ways that incur the lowest costs while leaving sufficient muscle for future growth. It is measured in terms of process costs and gross margins.
Measurement
Performance measurement is expressed in both objective and subjective terms. The metrics come in three forms: strategic, operational and leading indicators.
Strategic metrics are organization-wide macro measures of profitability, customer retention and growth of both revenue and human capability. Operational metrics deal with process costs and time cycles, quality and quantities. Leading indicators look at issues that predict future outcomes such as the quality of leadership, management readiness and employee engagement. These metrics are combined into a single report system that shows the interdependencies across the system.
Bottom Line
Leadership is a multi-faceted set of behaviors. Leaders are found at all levels from homemakers to heads of state. Because leadership is situational, for practical purposes it can be better understood and applied as four interconnected concepts. I’ve had good results with clients designing learning programs and operating systems within this framework. Let me hear what you think:
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Dr. Jac
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Dr. Jac Blog 
