Leadership is temporal. During each stage of an
organization's life, a different type of leader is needed. No business is "built
to last" either, regardless of the popularity of a book by Jim Collins by that
same name.
These are just some of the ideas of Dr. Marc van der Erve, a
European-educated writer and lecturer who now resides in South Africa. The holder of a BSC
in Applied Physics and a Ph.D. in Sociology, van der Erve is the author of A New Leadership Ethos: The Ability to
Predict.
Four Types of Leaders
According to Dr. van der Erve, there are four types of
leaders: transformers, builders, growers, and confronters. Each is necessary
during a specific stage in an organization's life. Transformers "re-invent" an
organization by "finding a new platform for growth". Builders develop products
and boost revenues to affect a larger environment. Growers repeat an
organization's earlier successes with greater efficiency while fostering stable
growth. Confronters oppose "established thinking" and entrenched business
practices when a "radically changing environment" requires radical adjustments.
Such business leaders break traditions, "stop a company from looking inward",
and set the stage for a new transformer-type figure.
Marc van der Erve's leadership paradigm, which also
characterizes the world's religious traditions and political powers, describes
the histories of three well-known technology companies: Apple Computer, Digital
Equipment Corporation (DEC), and General Electric (GE). That both Apple and GE
have survived and indeed thrived is a testament to the importance of having the
right leader for a specific environment. The tale of DEC is a cautionary one.
Apple Computer
During his first stint at Apple, Steve Jobs was the
consummate builder. His "platform for growth" rested firmly upon foundational
products such as the Apple I and Macintosh computers. Although Apple achieved
respectable revenues, Jobs was ousted when the business began to struggle. His
successor, John Sculley, was a grower-type leader who optimized Apple's
"operational and marketing processes" to repeat the company's earlier financial
success. When revenues flattened, however, Sculley "failed to set off another
cycle of growth" by botching the development of handheld devices. Sculley's
successor, Michael Spindler, was a confronter who cut costs.
Cost-cutting could only take Apple so far, however, and
Spindler was soon replaced by a transformer-type leader. Gil Amelio did cut
costs even further, but "he also invested in the development of new ideas".
Fittingly, he enlisted the help of Steve Jobs, "a builder who excels in
identifying and nourishing niches". In taking the reigns from Amelio, Jobs
introduced the iMac, the iPod and the iPhone. Apple Computer also began selling
music through the Internet as iTunes.
Apple's example is easy to follow, but the stages of
leadership aren't always discrete – nor are all its endings happy. Some
organizations have enjoyed sweeter outcomes, while others have rotted from
within. DEC and GE show how.
Editor's Note: Click here for Part 2 of this book review.
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