With the economic turmoil that started a little over two years ago, coupled with the Madoff scheme, it made me wonder why it happened in the first place and how it could have been avoided.   I often wonder how the C level executives and leaders across those enterprises that caused these problems can sleep at night.

Having an accounting background, I cannot understand how the management of the companies who had financial problems did not know that their company was in trouble.   What did they do when it was first brought to their attention?   Didn’t they have the obligation to communicate to their shareholders that there was a problem?  I believe it is every leader’s responsibility to be transparent to their constituents at all times.    It does not take a rocket scientist to know that trouble is looming and that in order to avert a problem corrective action must be put in place to address the issue.

The only conclusion I was able to draw from the whole situation is that the leaders of the troubled companies are not authentic leaders.   Authentic leaders have integrity and lead with compassion for their people.  Like all other leaders they have the vision, insight, influence and followers.  But the difference between a regular and authentic leader is that the authentic leaders care.  They truly care about their constituents.

Sometimes I lament that there is no blueprint for selecting a leader for any position.   If there were a book or blueprint, would it help minimize the extent of the problem? At some point, the economic boom led people to believe that it would continue to be that way.    Greed is what broke the camel’s back.  Things would be better if we had authentic leaders back then to avert such a situation.   The next time you meet a leader in your organization; does it make you wonder what their motives are?  One would certainly hope that the person leading them is an authentic leader, because we need authentic leaders now more than ever.

In your own sphere of influence, whenever you‘re about to promote someone, ask yourself the following questions:

1)      Is the person an authentic leader?

2)      Does he/she have compassion for others?

3)      Will this person bend the truth for his/her own benefit?

4)      Is he/she easily influenced by others?

5)      Is he/she a person of integrity?

The world is changing and competition is all around us.  The need for authentic leaders is more important than ever.  If you’re in position of authority, ask yourself the question: Is doing the right thing your way of doing things?  Are you there to serve or be served?  Hopefully your answers are doing the right thing and to serve your constituents.

Herb Kelleher, the former CEO of Southwest Airlines, is an example of an authentic leader.  A question was once asked him about which one is more important, the shareholders, customers or employees.   He said that the employees come first and if employees are treated right, they treat the outside world right, the outside world uses the company’s product again, and that makes the shareholders happy.  That is the way it works and it’s not a conundrum at all (Kelleher, 1998, 76).    When I meet people who are in positions of authority, I often wonder how many of Herb’s traits they have.

In closing, I’ve met a great leader who wants to raise awareness on authentic leadership.   His name is Mike Henry Sr. and he spearheads a movement to focus on <a href="../">authentic leadership</a> called Lead Change Group.   Visit his site to learn more about authentic leadership.  My hope is that the more we learn about it the better things will be around us.