Decisions That Define Leadership

Leadership is not just about guiding teams or achieving goals; it’s about making tough choices that test your values, ethics, and integrity - the kind that keep you up at night. Let me share a story about Alex - a leader who found himself at a crossroads.

As you read, think about what you’d do if you were in his place.

Situation

A leading public company decided to diversify its revenue streams by launching a new division in an adjacent vertical. Alex, a secondary leader within the organisation, was chosen to spearhead this initiative. Exciting, right?

Now, Alex had the freedom to build his dream team. He took a two-pronged approach:

• Trusted Network: He brought in people he’d worked with before - trusted colleagues from his previous job. They skipped the usual lengthy interviews because Alex already knew what they could do.
• Recruitment Process: For the remaining positions, Alex relied on a structured, formal hiring process, ensuring fairness and thorough evaluation.

For two years, the team worked hard to establish the new division. Unfortunately, despite their efforts, the division failed to generate enough revenue to sustain its operations.

Leadership Dilemma

Management decided to scale back the division and tasked Alex with reducing headcount.

Here’s the kicker: Alex had complete control over who stayed and who didn’t. No explanations required.The responsibility and accountability rested solely on his shoulders.

Alex faced two distinct paths:

• Option 1: Base layoffs on objective performance metrics, ensuring fairness and transparency across the team.
• Option 2: Choose personal convenience, protect his ex-colleagues - the people he had personally brought in, even if their performance didn’t justify it.

Emotional Weight of Leadership

Put yourself in Alex’s shoes. It’s not just about making a decision - it’s about balancing competing priorities. Fairness might tell you to focus on performance and contribution. But loyalty? That tugs at your heart, reminding you of those who’ve supported you along the way.

Alex likely grappled with questions like:

• If I prioritise fairness, will my ex-colleagues feel betrayed?
• If I choose loyalty, will my broader team lose trust in my leadership?
• How can I make a decision that aligns with my values and still serves the team’s best interest?

These aren’t just professional questions - they’re deeply personal ones.

What Do You Think Alex Did?

From the outside, it’s easy to say, “Just do the right thing!” But in real-time, the “right thing” isn’t always so clear.

Alex had options, each with its own risks:

• Lean toward fairness: This might strain relationships with trusted ex-colleagues who could feel abandoned.
• Opt for loyalty: This might protect friendships but risk team morale and damage his credibility as a leader.

Leadership is full of moments like this - where every path comes with trade-offs. So, here’s the big question: What do you think Alex did?

Lessons for Ethical Leadership

This story isn’t just about Alex -it’s about the challenges all leaders face when personal values collide with professional responsibilities. Here’s what we can learn:

1. Start with Fairness: Build transparent, merit-based processes from day one
2. Set Clear Expectations: Regular feedback ensures accountability and provides a solid foundation for tough decision making
3. Balance Relationships and Ethics: Show loyalty where it’s due, but always prioritise fairness to the broader team. Transparency helps bridge this balance.
4. Think Long-Term: Short-term convenience often comes at the cost of credibility.
5. Listen to Everyone: True leadership requires openness to diverse perspectives - not just those of your inner circle.

What Would You Do?

Leadership dilemmas like this aren’t unique to Alex. Stories of ethical challenges are common across industries - from startups to multinational corporations. Think of well-documented cases like Abraham Lincoln and His “Team of Rivals”, where leaders had to choose between loyalty and fairness, and the outcomes often reflect the values they prioritised.

This story isn’t just about Alex - it’s about the decisions every leader faces at some point in their career.

So, what do you think Alex did? And more importantly, what would you have done in his place?