The Importance of Vision
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When he launched the USA Today national newspaper 25 ago, Allen Neuharth, the CEO of Gannett Company from 1973-1986, was derided by both Wall Street analysts and the newspaper establishment. Having built a very successful chain of regional newspapers and having been named the newspaper publishing Chief Executive of the Year by the Wall Street Transcript in 1979, why would Neuharth want to take such a bold and seemingly foolish risk? Who would buy “bite-size” news? The answer today is clear -- millions would buy it and continue to buy it, but that was certainly not the case in 1982 when the paper was launched. Neuharth saw a future for his family’s newspaper empire that others could not see. He also saw a time-starved consumer base that was thirsty for news in manageable chunks. Capitalizing on his regional network of newspaper organizations, Neuharth created an elaborate logistical process to produce and deliver a national newspaper to supplement, not replace, regional carriers. What was it about Neuharth that enabled him to see the vast possibilities of a national newspaper? He clearly possessed a vision of what could be and more importantly, the ability to make it a reality.
The ability to visualize and articulate a possible future state for an organization or company has always been a vital component of successful leadership. In fact, when initially describing someone as a “great business leader,” the knee-jerk reaction is often to cite something about his or her strategic ability or vision. We often hear stories of exalted CEOs and their strategic prowess. The downfall of many a failed CEO has also been attributed to his or her lack of vision. And in many cases, with 20-20 hindsight, it is easy to understand and sympathize with a leader’s vision. In the heat of the moment, however, it is not so easy. Neuharth’s vision of a national newspaper seems very plausible today, but that was far from the reality of 1982.
Through our research In Their Time, it became increasingly apparent that vision can be both directly impacted by and conceived through the context of the times. Vision divorced from context can produce very erratic and unpredictable results. The irrationality of the 1920s and again in the Internet-crazed 1990s demonstrated vision that was not grounded in reality. Great business leaders need to walk the fine line between capitalizing on the opportunities that are ripe for the present context and planning for a possible future state. Though context is very important for laying the foundation for success, leaders are not mere pawns. Leaders like Neuharth can and do shape the parameters for success through a vision for a future. And, just as important, they possess the ability to oversee that vision’s implementation.
Read all of Tony Mayo's 21st Century Leadership posts
HARVARD BUSINESS ONLINE RECOMMENDS:
Building Your Company's Vision (HBR OnPoint Article)
Peripheral Vision: Detecting the Weak Signals that Will Make or Break Your Company (Hardcover)
Organizational Vision and Visionary Organizations (CMR Article)
The Future of Management (Hardcover)
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Tony Mayo is a Lecturer in the Organizational Behavior unit and is the Director of the Leadership Initiative at Harvard Business School. He is an author of
Comments
Most observers and commentators argue that true leadership is a rare commodity. Many of these contend that the reason is that true leaders possess rare characteristics that are innate and present in a only small fraction of the population. Some even go so far as to suggest that leadership arises through mutation and that mankind's default psychology is to follow.
The opposing view is that leadership may require innate components but these are not sufficient and leadership attributes are developed mainly through empirical activities.
From your analysis of the Great American Leadership DB could it be argued that many of business leaders you identify are more appropriately classified as competent managers in that their methodology is grounded in practicing systematic control through the formulation of structure and rules?
My prejudiced position is that true leaders tend to be individuals who behave in a radically different manner to successful managers and often unconventionally and in counter intuitive ways.
Comments/observations?
- Posted by Anthony Holmes
October 30, 2007 7:47 AM
In our analysis of 1,000 business leaders in the 20th century, we found that there were in deed many classic managers - individuals who focused on efficiency, standardization, and processes to either sustain a position of dominance within an industry or to maximize the growth potential of a company. Though these individuals focused on more process related tasks, their focus was appropriate for the lifecycle stage of their company and/or industry. Their vision for the business may not have been radical, but it was appropriately aligned with the context of the situation. To me, that alignment is a sign of a great business leader.
- Posted by Tony Mayo
November 1, 2007 4:22 PM
Sir,
Though vision (and mission) have become a "must" in every organization's website and published material, very few in reality convey these in a manner that makes sense to different stakeholders.
There can be differences in interpretation but it appears to me that vision is an individual's aspiration while mission is an organizational construct. For a vision to mean something significant, it must satisfy the following:
1. It must envisage a future state that most others cannot see.
2. It must be sufficiently articulated with passion such that the organization embraces the vision with enthusiasm.
3. It must stretch the organization to perform exceptionally.
As an example, one may consider Samuel Walton's vision in 1990 for his retail chain. When revenues had not even touched US$ 50 billion, he envisaged revenues of US$ 125 billion by the year 2000. Many people laughed at the idea. Competitors scoffed at the audacity. All the critics were silenced when the vision was realized in 1996, four years ahead of schedule.
One may not like the business model or the HR practices or the procurement policies. But one cannot overlook the profoundity of the vision and the passion with which it was executed.
Business success in the twenty-first century would depend to a great extent on the ability of the leader to craft a meaningful vision, and equally, the courage of conviction to execute an appropriate strategy to realize the vision.
Warm regards
- Posted by B V Krishnamurthy
November 2, 2007 2:47 AM
Hello Tony
Thank you for your contribution.
We are currently engaged in a 'futures' study of leadership. In short we examine the assumptions underpinning existing models, emerging themes in the literature, drivers for change, pendulum swings etc. to identify plausible and desirable futures.
Two related trends that we have noted include:
* A pendulum swing back to seeing leadership a subset of management
* The rise of more self-effacing, non transformational leaders focused on thriving in the present rather than creating new futures.
We do not argue that change will not remain a reality, but the assumption that leadership is about change whilst managers worry about the here and now may not be adequate. What forms of leadership will be needed to help staff thrive within the status quo? Will vision matter in the future and if so in what ways?
I have oversimplified our study and deliberately highlighted the more extreme views, which do not necessarily represent our on-balance findings to prompt discussion. If you are will willing I would appreciate your thoughts on these questions.
- Posted by Shaun Killian, Australian Leadership Development Centre
November 28, 2007 5:16 PM
Thank you for your comments. I believe that leadership and management both require vision, risk taking, and the ability to change. The whole notion of context-based leadership is predicated on the fact that great leaders (or managers) are able to anticipate the changing contextual landscape, to influence the contextual landscape in some meaningful way, or to react to changes to ensure the success and viability of their organization. Companies need individuals who can both anticipate (set vision) and implement (direct action towards the vision). We sometimes see this dual ability in the same person, but more likely than not, we see it in a team or group of individuals.
- Posted by Tony Mayo
December 4, 2007 10:14 AM