Let's Unpack Effective Leadership

Article #5: Humility 

 I believe that leaders who have genuine humility are the most impactful. They are more focused on team-oriented goals and less concerned about advancing their own interests. As successes are achieved, they instinctively give credit to others. Further, humble leaders are often more self-aware and willing to share their shortcomings, creating an environment where others feel safe doing the same. Encouraging the discussion of failures rather than placing blame sends a message that failing is tolerable and can provide important learning experiences. 

My father always reminded me to never assume that I was the smartest person in the room, which is some of the best advice he ever offered. Human beings are unique, and each has something unique to contribute. Leaders who recognize that fact can derive the most from the individuals around them and enable higher levels of productivity and satisfaction within the workplace. Sometimes asking the right questions to solicit new ideas can be a better leadership strategy than attempting to provide all the answers, as long as the ask is authentic.

Another important aspect of humility is understanding the difference between skill and luck. While talent and hard work can carry us a long way, we should acknowledge that success can also be a function of fortuitous timing and good luck. The old adage “it’s better to be lucky than good” has a lot of truth to it. However, I also agree with those who say that “we make our own luck”. Diligently remaining consistent to one’s core values won’t guarantee success, but can better position a leader to ultimately benefit from good fortune. Conversely, success often breeds complacency and overconfidence, both of which can jeopardize future results. 

The asset management industry witnessed historic bull markets in global stocks and bonds once the 2007-2008 financial crisis had passed. Annual earnings of many asset management firms, including those that I helped to lead, grew substantially for roughly a decade. While those earnings improvements were partly the result of effective strategies and execution, they also benefitted materially from the strong capital markets which were largely out of the control of our industry’s leaders. This period became an instructive example of both good timing and skill playing important roles in success. It's best not to mistake one for the other.

As leaders, I don’t believe that we are as good as we think in successful times, nor as inept as we believe when setbacks occur. Remaining humble and even-keeled as circumstances change enables us to better lead through the inevitable peaks and valleys that transpire over the course of our careers.