Author: The Hon. Andrew Robb AO
Event: FLWC Pilot and Global Business Wisdom Summit
Location: Hangzhou China

It’s a great privilege to be asked to make a contribution at this weekend’s conference on leadership.

I have been fortunate to observe many leaders during my career – leaders in the bureaucracy, in the private company sector and in politics. For myself, I have led organisations since I was 28 years of age.

From my observations, and my own experiences, I have formed views about what constitutes good leadership, and what you have to do to continue to improve your leadership skills.

Of course, leadership is required at all levels of our community from the head of government, from the Chief Executive of companies and community organisations to our local communities where there is local government, with schools and hospitals, community sporting groups and even parents’ associations involved with their children’s schools. So, what is leadership? People often have difficulty describing clearly the essence of leadership.

In my view, leadership is the ability to inspire belief among others to follow a particular vision, a particular direction, a particular behaviour. It is not about authority, or control but reaching a shared belief.

In times of uncertainty, or crisis, this leadership ability is even more important.

There are several characteristics of effective leaders.

Effective leaders reduce uncertainty. They help people understand where they are going and why it matters.

Effective leaders have credibility. Charisma helps, but it is not an essential part of leadership. Integrity, consistency, strength and competence create the necessary credibility of effective leaders.

Effective leaders are calm, especially in a crisis, and they take ownership of responsibility. They make decisions when information is incomplete, and they carry the responsibility.

And, some leaders, but not all, can take people very much into the unknown, and can convince people to tolerate difficulty in the belief that something bigger and better will be the outcome.

Effective leaders establish or change the culture of an organisation. When a flower doesn’t bloom you fix the environment in which it grows, not the flower.

Culture comes from the top; it comes from the leader.

So, are there different types of leaders? Of course, individuals can vary significantly in how they inspire belief in others. But I believe that there are broadly two types of leaders.

The most common effective leadership is one which manages an organisation in a way which provides steady incremental improvement.

It is my experience that the average person prefers the status quo. I suspect that this steady incremental growth is a healthy and stable existence, and leadership which delivers it is well received.

But, while a steady state can exist for considerable lengths of time, inevitably circumstances change, often unexpectedly, and sometimes dramatically.

In these circumstances you need individuals who possess the second type of leadership abilities – namely, the ability to manage major change, the ability to take people from a situation where they are comfortable, to a situation rich with uncertainty. A person with great vision, a person able to remain calm in a time of great change, or even a crisis, a decisive person, a resilient person, a person who has empathy for those who need their leadership, a person with the ability to provide a narrative which is compelling and plausible, a person who can build unity for change.

So, what particular qualities do good leaders possess?

I remember some years ago when I was a Member of the Australian Parliament, we were in the middle of an extremely difficult political issue, and there was great tension in the Cabinet debates as we sought to deal with this highly politically charged issue.

I happened to be walking back with our Prime Minister, the Hon John Howard, into his office for a short break from the tension in the Cabinet debate; a debate of great consequence for Australia.

As we passed the cleaner in Prime Minister Howard’s office he stopped for a moment and addressed the cleaner by his Christian name and asked how his sick child was going, and if there was anything he could do to help.

Witnessing the brief but meaningful conversation you would never have known that the Prime Minister was in the middle of dealing with a political crisis – he was calm, genuinely concerned and very respectful.

The Prime Minister demonstrated in that brief but very focussed exchange why he eventually was the second longest Prime Minister in Australia’s history – he was calm in a crisis, he showed great integrity and empathy, he treated his office cleaner with respect, he was a very decent man who imposed that culture on his government by such actions.

Prime Minister Howard has been one of Australia’s greatest leaders.

Leaders need to understand more about human nature than other people.

Leaders need to understand that the typical person prefers the stability of the status quo, but will accept change if circumstances demand it, and they have confidence in their leader to take them into the unknown.

Most people instinctively want to improve their circumstances over time – they want hope to improve their life and that of their families.

People respond always to incentives and disincentives. These are very powerful characteristics to encourage change.

Against this background, leaders at any level of our community find themselves almost daily seeking to reconcile the competing views and interests of those that they lead. It is critical that effective leaders seek to put themselves metaphorically into the shoes of as many of these different interests and views as possible. Only in this way will they come up with the balanced policies and messages necessary to retain the confidence and support of those they lead.

As leaders, what can you do to develop the effectiveness of your leadership?

Develop a strong understanding of those you lead – find out the similarities and respect the differences.

Never forget your long term supporters – that is, never forget those who were there for you when others weren’t.

Be persistent, have belief in yourself and don’t be afraid to walk alone.

Focus on the step-in front of you, and not the whole stair case.

Leaders don’t have to dominate every situation. Often a meaningful silence is always better than meaningless words.

I once heard a speech by a prominent and highly successful Admiral in the Navy speaking to a room full of university graduates.

He opened and subsequently closed his speech with one proposition, namely: “when you get up, make your bed”.

The statement resulted in silence – it sounded like such a trite statement, yet it was very profound.

The Navy Admiral was conveying the significance of immediately creating a sense of achievement, a sense of self discipline. One small positive action can change the direction of your whole day.

Finally, and most importantly, back your strengths – appreciate and accept what strengths you have, what things you are best at. By all means, take some steps to neutralize your weaknesses, but focus overwhelming on leveraging what you are best at – that way, through life, you will find achievement, happiness and respect from your peers.

And remember, you are so much stronger than you think – grow through what you go through, learn the powerful lessons of failure.