The Four Capabilities of Leadership

American Economist John Kenneth Galbraith has been quoted as saying “all of the great leaders have had one characteristic in common: it was the willingness to confront unequivocally the major anxiety of their people in their time. This, and not much else, is the essence of leadership.” This interesting quote is the foundation of a May 2009 interview with Professor Deborah Ancona from the MIT Sloan School of Management. In this interview, Professor Ancona discusses her viewpoints on the “The Four Capabilities of Leadership.” She identifies these capabilities as sense-making, relating, visioning, and inventing.

1.      Sense-making: “Making sense of the world”

Today’s business leaders should abandon older leadership models which tend to stifle creativity and inhibit business growth. Many of these models are far too insular and don’t allow leaders to be forward thinking or flexible in this business dealings. Instead leaders should;

• Create change maps and models that outline targeted goals
• Working collaboratively with individuals at all levels of the organization
• Maintaining flexibility in all aspects of their work and management activities

2.      Relating: “Leaders should communicate constantly”

By doing so, a leader is visible to his or her employees and can be a reassuring presence. Being visible is a key trait of good managers and executives, it shows workers and customers that the organization’s leadership is committed to, and actively overseeing its current projects. By having open lines of communication, a leader can clearly identify issues of company wide concern, and can present the organization’s plans for the future. By taking the time to make people aware of emerging situations, a leader can help his or her organization avoid productivity collapse.

• Maintaining open communication
• Making themselves visible in the office environment
• Reassuring others on a regular basis
• Reinforcing a sense of urgency so that workers do not become complacent in their duties

3.      Visioning: “An effective leader creates a compelling vision”

Managers need to be very articulate in order to illustrate a clear picture of what the future has in store. Leaders must ensure that their visions are based on the values that they hold as well as the values of the organization as a whole. Problems and successes should always be addressed with a “we mentality” in order to facilitate a sense of teamwork and cohesion. Visioning during uncertain times is an essential core competency for leaders. Leaders should regularly demonstrate;

• Values
• Urgency
• Hope
• Community
• Confidence 

4.      Inventing: “An effective leader invents the future”

This very bold statement illustrates that a leader needs to be creative, especially in uncertain times. A good leader should therefore;

• Give employees permission to break with convention
• Embrace new development structures
• Illustrate clear priorities
• Develop ambidextrous organizations

By inventing new ways of doing things, a leader can help to move an organization forward by enabling others to be more innovative and creative.