Table of Contents

1.0 Introduction ............................................................................................................ 2

2.0 Importance of Leadership in organizations ........................................................ 3
3.0 Failed Organizational Leadership ........................................................................ 5
4.0 Leadership Development ....................................................................................... 6
5.0 Conclusion .............................................................................................................. 9
References ................................................................................................................... 10

1.0 Introduction
Before we identify the importance and criticalness of having effective and
responsible in organizations, we should first recognize the meaning of leadership.
Throughout the history and various, colourful experiences that mankind had
experienced, many definitions and explanations of leadership has been created,
complimenting and improving one after another based on numerous events. However,
most of the definitions are based on three common elements (Nahavandi, 2011, p. 3):
1) Leadership is a group phenomenon, there must be follower(s) for leader to be
authentic and accepted.
2) Leadership is goal directed and action oriented, leaders influence others in
groups and organizations through a certain course of actions and/or toward the
achievement of certain goals.
3) The presence of leadership indicates some forms of hierarchy within a group.
In short, a leader is a person who influences individuals and groups within an
organization, helps them establish goals, and guides them toward achievement of those
goals, thereby allowing them to be effective (Nahavandi, 2011, p. 3).
In the context of an organization, leader is the image and soul of the entire
organization. It shapes the culture of the organization. As we all know, culture meant
everything for the organization, if the organization culture is healthy, it will sustain and
moves the organization forward. However, if the culture is unhealthy, it will corrupt
and put the organization in disaster. Therefore, effective and responsible leader is
essential and vital to any and every organization. This paper will discuss in detail the
importance of it and the consequences of failed leadership in an organization, together
with the necessity of leadership development.

2.0 Importance of Leadership in organizations

As we said earlier, one of the common elements among the definition of
leadership is the element of group phenomenon, in which leader only exists when there
are at least one followers. In other words, leader only exist within organization, depends
on the definition of organization. Usually, organization is defined as an organized body
of people with a particular purpose (Oxford University Press, 2016).
The most fundamental role of a leader in an organization is to define the
organizational goal, formulate plans, motivate and empower subordinates to achieve
the goals through execution of plans, and create an organizational culture (Gupta, 2009).
Basically, the role of a leader in an organization evolves around three
dimensions, namely (Gupta, 2009):
a. Vision
It defines the purpose, or simply What to do? As vision set the picture of
the organization in the future. What the organization want to be in the future,
in accordance to its mission. A clarified, beneficial, and sustainable vision
could mean a lot to the organization, it could:
a. Inspire the members of the organization
b. Drive the organization forward
c. Energize and mobilize the organization
d. Create a high morale organization culture

b. Strategy
Strategy articulates the plans, or How to achieve the vision?, How to
exercise the mission? Strategies demonstrates the job knowledge or the
skills of a leader. It includes restructuring the organization, strategic
leadership, research and development, etc. Failure to construct a suitable
strategy for the organization might cause the organization to be left behind
by the environment that is becoming more volatile, uncertain, complex, and
ambiguous. Brian Tracy (2010) suggests that leaders could always
implement three Rs to ensure the organization is performing at the highest
levels of efficiency and effectiveness:
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1. Restructuring
The process of mobilising people and resources to more efficient
position contributing to the overall organization.
2. Reengineering
Streamlining the process by eliminating unnecessary jobs and
position to make the organization more efficient and effective.
3. Reinventing
Continuously reflect and redesign the goods and services offered
by the organization so that it could fit the needs of the society.
c. People
Who should carry out the strategy to achieve the goal? How to make
people accomplish the strategy and hence the goal, the people dimension
focuses on inspiring, motivating, building relationship and empowering the
followers. Without leadership in this case, people would quickly come into
argument and conflict as people see things in different perspectives and
support different solution (Abdullah Abdul Rahman, 2016).
Other than the three dimensions suggested by Gupta above, Nahavandi (2011)
identified that, in general, we need leaders:

To keep groups orderly and focused. Leaders are needed to pull the
individuals together, organize, and coordinate their efforts.

To accomplish tasks. Leaders are needed to facilitate that

accomplishment, to provide goals and directions and coordinate
activites, and acts as the instument of goal achievement.

To make sense of the world. Leaders help us make sense of the world,
establish social reality, and assign meaning to events and situations that
may be ambiguous.

To be romantic ideals. Researchers suggested leadership is needed to

fulfill our desire for mythical or romantic figures who represent us and
symbolize our own and our cultures ideals and accomplishments.

3.0 Failed Organizational Leadership

As we knew, leader is the heart and soul to an organization. If leader is not
exercising his or her leadership effectively and responsibly, he or she might lead the
organization into disaster and the organization might fail to achieve its mission and
vision. This is probably because the original effectiveness and responsibility that the
leader possessed is likely substituted by corrupted mind-set and ideas. Abdullah Abdul
Rahman (2016) stressed that we should be concerned over the incidences of corruption
in the government and the public services because of the serious harmful effects to the
general public, such as:

Corruption reduces the productivity and efficiency of organizations.

Corruption increases the cost of operations, making goods and services costly
for the customers and general public.

Corruption can cause the outputs of organization to be transfered or deviated

to parties which are not the customers or beneficiaries of the organization.

Often, many governments initiatives and programmes that are for the good of
the public failed due to corrupted leaders who only serves their own self-interest
and interests of their faction.

Corruption decreases the public confidence in the credibility of the government.

It is proven by history that corrupted leaders who live in a luxurious lifestyle is

the source for street demonstrations, civil wars, societal unrest and revolution in many
countries, such as the French revolution, the unrest in the Phillippines during Ferdinand
and Imelda Marcos rule, to the recently instability in countries such as Egypt, Libya,
Iran and Syria in the Middle East (Abdullah Abdul Rahman, 2016).
On the other hand, corrupted leaders not only exist in the public sector but also
in private organizations. Many talented leaders could not practice their talent to the
maximum due to their weak or bad character. One famous example is the practice of
Ken Lay, the former CEO of Enron Corporation, who was found guilty in a court case
for fraud and financial malpractices, and caused the collapse of Enron Corporation. As
a result of his actions, the investors lost billions of dollars despite Ken Lay and his
management team were talented and highly qualified professionals. Besides that,
Bernard L. Madoff, the former CEO of Bernard L. Madoff Investment Securities and
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also the former chairman of NASDAQ, was sent to prison for 150 years due to
defrauding investors out of about $50 billion for years, and the practices of securities
fraud, international money laundering, mail fraud, and wire fraud (Abdullah Abdul
Rahman, 2016).
There are indeed, many other examples that history has showed us that,
irresponsible and ineffective leadership has always been the main reason of the collapse
of an organization, irregardless of their highly qualified talent and skills. In other words,
only the combination of ethical and professional leader can drive an organization
forward.

4.0 Leadership Development

Hence, after the importance of leadership is identified and the possibilities of a
talented leader turning into a corrupted leader due to self-serving interests after getting
into position and power, it should be stressed that leadership development and
developing leaders is one of the most important task to be accomplished by current
leaders and education institutions. One of the main reason of leadership development
and developing leaders is to sustain the efforts, results and performances of the current
leaders and extend it to the following generations.
However, this only exists when the current leader is qualified and fits the
requirements set by the society. Unfortunately, if the current leader is not qualified and
does not meet the societys requirements, it is likely that we do not hope such leader to
develop another leader that behaves similarly to him or her, as it will extend his or her
failed leadership to the following generation and continue bringing harm to the
organization and the society. Therefore, in this context, it is more possible for us to
witness a self-developed emergent leader. A leader that is not trained, coached,
mentored, or developed by others, but trains, coaches, mentors, and develops by himself
or herself, probably due to his or her extraordinary intellectual, mental, or spiritual
capital.
Yet, leaders and the society nowadays should not wait for such leader to emerge
because the possibilities of emergent of such leader is very low, especially in an
environment that does not encourage or breed great leaders. Instead, we should create
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an environment and institutions that is suitable for the breed and education for leaders
that is qualified and fits in societys requirements.
In Dave Ulrich, Norm Smallwood, and Kate Sweetmans book entitled The
Leadership Code: Five Rules to Lead By, they proposed and summarised all the
requirements and responsibilities for a person to become a leader into five rules, which
I can say, five golden rules, shown in the diagram below.

Figure 1 The Leadership Code

Source: (Shen, 2009)
http://bookoutlines.pbworks.com/w/page/14422719/The%20Leadership%20Code
Rule 1: Shape the Future
This rule is embodied in the strategist dimension of the leader. Strategists
answer the question, Where are we going? and make sure that those around them
understand the direction as well. They not only envision, but can create a future. As
practical futurists, they figure out where the organization needs to go to succeed, they
test these ideas pragmatically against current resources, and they work with others to
figure out how to get from the present to the desired future. Strategists have a point of
view about the future and are able to position their organization to create and respond
to that future. The rules for strategists are about creating, defining, and delivering
principles of what can be (Ulrich, Smallwood, & Sweetman, 2009, p. 14).

Rule 2: Make Things Happen

Turn what you know into what you do. The executor dimension of the leader
focuses on the question How will we make sure we get to where we are going?
Executors translates strategy into action. Executors understand how to make change
happen, to assign accountability, to know which key decisions to take and which to
delegate, and to make sure that teams work well together. They keep promises to
multiple stakeholders. Executors make things happen, and put the system in place for
others to do the same. The rules for executors revolve around disciplines for getting
things done (Ulrich, Smallwood, & Sweetman, 2009, p. 15).
Rule 3: Engage Todays Talent
Leaders who optimize talent today answer the question, Who goes with us on
our organization journey? Talent managers know how to identify, build, and engage
talent to get results now. Talent managers identify what skills are required, draw talent
to their organizations, develop people, engage them, and ensure that employees, turn in
that best efforts. Talent managers generate intense personal, professional, and
organizational loyalty. The rules for talent managers centre around resolutions that help
people develop themselves for the good of the organization (Ulrich, Smallwood, &
Sweetman, 2009, p. 15).
Rule 4: Build the Next Generation
Leaders who are human capital developers answer the question, Who stays and
sustains the organization for the next generation? Talent managers ensure shorter-term
results through people, while human capital developers ensure that the organization has
the longer-term competencies required for future strategic success. Just as good parents
invest in helping their children succeed, human capital developers help future leaders
to be successful. Human capital developers install rules that demonstrate a pledge to
building the next generation of talent (Ulrich, Smallwood, & Sweetman, 2009, p. 16).
Rule 5: Invest in Yourself
At the heart of the leadership is personal proficiency. Effective leaders cannot
be reduced to what they know and do. Who they are as human beings has everything to
do with how much they can accomplish with and through other people. Leaders are
learners: from success, failure, assignments, books, classes, people, and life itself.
Leaders who demonstrate personal proficiency follow rules about developing and
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increasing personal insight so that they model the change they want to see in others
(Ulrich, Smallwood, & Sweetman, 2009, pp. 17-18).

5.0 Conclusion
In conclusion, due to the importance of effective and responsible leaders in any
and every organization and the serious consequences of a failed leader to an
organization and the society, it is vital to develop leaders that are qualified and meets
the requirements of the organization and the society. One great model we can use to
develop leaders is to follow the rules recommended by Ulrich, Smallwood, and
Sweetman written in their book The Leadership Code: Five Rules to Lead By, namely:
1. Shape the Future
2. Make Things Happen
3. Engage Todays Talent
4. Build the Next Generation
5. Invest in Yourself
I believe, by developing a leader that acquire the five characteristics above, such
leadership will be sustainable, responsible, and effective, because it meets the
requirements of the organization and society.

References
Abdullah Abdul Rahman. (2016). Developing leaders and Leadership Development.
Gupta, A. (2009, February 2). Role of an Organizational Leader. Retrieved March 14,
2016, from Practical Management: http://www.practicalmanagement.com/Leadership-Development/Role-of-an-OrganizationalLeader.html
Nahavandi, A. (2011). The Art and Science of Leadership (6 ed.). Essex: Prentice
Hall.
Oxford University Press. (2016). organization: definition of organization in Oxford
dictionary (American English) (US). Retrieved from Oxford Dictionaries Dictionary, Thesaurus, & Grammar:
http://www.oxforddictionaries.com/us/definition/american_english/organizatio
n
Shen, J. (2009, March 30). The Book Outlines Wiki / The Leadership Code. Retrieved
from The Book Outlines Wiki / FrontPage:
http://bookoutlines.pbworks.com/w/page/14422719/The%20Leadership%20C
ode
Tracy, B. (2010). How the Best Leaders Lead: Proven Secrets to Getting the Most Out
of Yourself and Others. New York: AMACOM.
Ulrich, D., Smallwood, N., & Sweetman, K. (2009). Leadership Code: Five Rules to
Lead By. Boston: Harvard Business Review Press .

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