Leadership is about how you do it rather than what you achieve says, Susan Rice, CEO of Lloyds TSB Scotland.
Rice, who spoke on leadership last night at the Said Business School in Oxford, believes that the key to her success at Lloyds TSB is about responding to stakeholders, customers, staff, communities, government and still managing to balance the books.
Rice says: Leadership isnt always a virtue in itself. It isnt always synchronous with success. Indeed, leadership isnt a fixed state. It comes in different forms. It may need to change for different circumstances, and thats especially so at this point in our history.
Past research into leadership has highlighted two forms of leadership, transactional and transformational. Rice believes that successful leaders should be a mixture of both, with transactional leaders being skilled at clarifying objects and getting quick results and transformational leaders focusing on long-term vision.
Rice also highlighted the importance of employees in todays companies. Rice adds: It is believed that 80% of a companys assets today reside in the knowledge of its employees, when maybe two decades ago 80% resided in its plant and equipment, only 20% with its employees.
Indeed today, intangible assets, innovation, organisational culture, strategic capabilities, account for 85% of the market capitalisation of US firms.
Rice concluded the speech by reiterating the importance of how leadership works. Rice says: Dont get me wrong, my results matter greatly to me. But I want to keep getting them over and over again, not just once. Thats why I believe the real measure of leadership is not just the results, its how we get them.