Inside the new style of leadership

Being an effective leader in today’s business world requires more than simply holding that title of president or CEO and being the “boss” people have to follow. A new generation of leaders is bringing a new perspective and changing the status quo for traditional practices.

Christopher Palmer is still relatively new to his latest leadership role. He was named as the new president and chief operating officer at the $800 million-asset Pioneer Bank in Roswell, N.M., one year ago (and was named ICBA’s Community Banker of the Year, West, for 2017). One of Palmer’s objectives is to introduce collaborative leadership into what had been more of a “command and control” environment.

“I do think leadership has changed, and it is incumbent upon the leader to create leaders beneath him, not just for people to bide their time and rise through the ranks just [because] they have served their time,” Palmer says.

Leadership is shifting toward practices that inspire, motivate and support everyone within an organization. Likewise, there is a bigger divergence between management and leadership. Most people prefer to work in a leadership organization as opposed to a management organization.

“Today’s worker is not motivated by heavy-handed edicts,” says Sean Kouplen, chairman and CEO of Regent Bank, a $450 million-asset community bank in Tulsa, Okla. “They require input, buy-in and [an] understanding [of] where the organization is headed and how they fit in.”

Certainly, there is no one-size-fits-all formula for successful leadership. Different leadership styles work better in different environments, and some individuals are not always a good fit for every situation. Views of effective leadership styles and skills—along with the character traits that support strong leadership—are evolving.

“I believe there are two sides to an effective leader: the visionary and the captain,” Kouplen says. The visionary must see the future, communicate well, and inspire and motivate the team to greater heights, he says. The captain must be fair, honest, approachable, trustworthy and a great listener. “I don’t believe the leader should be mysterious or unapproachable at all, but rather a trusted friend who always has your back,” he adds. 

One of the drivers behind that leadership evolution is a workforce that is younger and more multicultural, notes Teri Williams, president and chief operating officer at OneUnited Bank, a community financial institution with $660 million in assets and locations in Los Angeles, Miami and Boston.

“Today, I believe effective leadership includes taking a more collaborative, less hierarchical management style that welcomes and respects the views of millennials,” she says.

Nowadays, there is less trust of leadership that is based solely on seniority. “There is a greater recognition—given the technology revolution—that the younger generation has more to contribute than a traditional hierarchical organization may allow, which has resulted in a need for more collaborative leadership,” Williams says. For example, she meets weekly with a group of interns to discuss social media strategy and to get insight from that younger generation of social media users. She also meets with all employees a few times a year and encourages suggestions from everyone. “The message is that everyone is important,” she says.

What makes an effective leader?

Certainly, there are people who seem to be “natural” leaders. However, most leaders recognize that leadership is a work in progress. “The best leaders are self-aware,” says Jennifer B. Kahnweiler, a speaker on introverts, leadership and women, and author of The Introverted Leader: Building on Your Quiet Strength. “They are constantly taking a look at themselves to say, ‘What worked and what didn’t? What can I do better? What’s my personality? How do I stay true to myself but also learn and flex so that I have a whole repertoire of strengths that I can pull from to be effective?’”

A common misperception about leaders is that they have to be extroverts. “You don’t have to be a loud, type-A personality to be a leader,” Kahnweiler says. Between 40 and 60 percent of senior leaders fall into the introvert category, she notes. “They lead with a quiet presence rather than an ‘in-your-face’ personality.”

The charisma looks different for those introverted leaders. In his book, Emotional Intelligence: Why it Can Matter More than IQ, author Daniel Goleman highlights the importance of listening and being present as key leadership qualities. It is important for leaders to be good listeners and to not always be the ones providing all of the answers, Kahnweiler adds.

“Another skill that is really important for leaders today is being able to coach,” she says. “To do that, they need to be able to delegate.” Delegating gives leaders more time to invest in leadership activities that are going to make the most difference. It also helps to develop leadership skills in others within an organization.

“One of the big changes over the last 20 years is that it used to be that, if you had the position, people would line up and simply do things because ‘the boss said so,’” says Kit Welchlin, speaker, author and president of Welchlin Communication Strategies. Good leadership is now more about employee engagement, employee empowerment and creating a good workplace experience, he adds.

Improving leadership skills is an ongoing pursuit

It is important for leaders to avoid getting too comfortable or complacent in a leadership position, especially in today’s rapidly changing business environment. Leaders need to periodically reassess their own leadership abilities, including both strengths and areas for improvement. “A key for yourself, and to bring your bank forward, is to continue to learn and remain relevant,” Kahnweiler says.

There are plenty of educational resources available in terms of classes, books and seminars, as well as networking, mentoring and coaches. Pioneer Bank’s Palmer has focused on improving his leadership skills throughout his career. His office is filled with leadership books and articles from the likes of management consultant Peter Drucker and Steven Covey, author of The 7 Habits of Highly Effective People.

One of the lessons that Palmer took home from attending a leadership class at the Graduate School of Banking in Madison, Wis., was an example of a leader who met with employees once a week. “It was more than a staff meeting,” Palmer says. “It was creating leaders beneath him and giving people opportunities to take charge and work through different things.”

So, when Palmer joined Pioneer Bank as senior vice president and chief financial officer in 2004, one of the first things he did was start his own weekly staff meeting that included all of his direct reports. Part of the meeting is dedicated to typical bank business, while another component is engaging in a broader discussion about leadership. Over the past 13 years, the group has also read and discussed more than 30 different business books, such as How to Win Friends & Influence People, The Happiness Project and a book about former Boeing and Ford CEO Alan Mulally.

Emerging leaders can gain experience by being involved on committees and boards of community, civic and industry organizations. “Experience is certainly the best teacher, but I believe it’s important to invest in leadership training for young bankers,” Kouplen says. Regent Bank supports emerging leaders within its organization with classes, speakers, book discussions and open-door access to its executive team. 

It’s also important to give younger bankers exposure to upper-level managers, adds Kouplen. Regent Bank hosts a monthly Young Guns Luncheon for several of its younger bankers that includes an educational component on different topics. The bank also plans to roll out a mentor program this year, where younger bankers can pair up with executives to learn more about their career paths and experience.

Networking is another underused resource, Kahnweiler notes. There are different ways to make and strengthen connections, both in person and online. Many people are using social media more thoughtfully in terms of leveraging networks to learn best practices. “There is so much to be learned online,” she says. “It’s just [about] focusing and connecting with people who have like-minded interests and who we can learn from.”