Authentic Leadership

Authentic leadership is a leadership style that emphasizes genuine, transparent and ethical leadership, where leaders are true to their values, beliefs and character.

It developed partly as a reaction to the major corporate scandals of the early 2000s and grew out of a desire to rebuild trust in business leaders.

Now, in times of constant change in all our working lives, the need for authentic leadership is greater than ever, particularly in fostering trust, engagement and ethical behavior within organizations.

In this article, we explore the thinking behind authentic leadership, how to become an authentic leader, and the benefits and potential problems of being one.

Authentic Leadership Frameworks and Models

Bill George is a pioneer in the field of authentic leadership. He describes authentic leaders as genuine individuals who remain true to their principles, values and beliefs, whatever challenges their work and personal life might present.

In his 2003 book "Authentic Leadership: Rediscovering the Secrets to Creating Lasting Value," he wrote "When you follow your internal compass, your leadership will be authentic, and people will naturally want to associate with you." [1]

George identified five dimensions of authentic leadership. These have formed the bedrock of thinking on the subject ever since:

• Purpose. Authentic leaders care about their work and have a deep sense of what they’re there to achieve.
• Values. They have a strong moral code and expect high ethical standards in themselves and others.
• Heart. They demonstrate genuine care for others and treat everyone with dignity and respect.
• Relationships. They build connected relationships with their employees and colleagues, inspiring confidence and loyalty.
• Self-discipline. Authentic leaders have goals and the self-discipline to achieve them.

Fred Luthans, who has also researched and written extensively on the subject since the early 2000s, focuses on the ways in which individuals can develop “psychological capital.” This is a group of four healthy psychological states that enhance well-being and performance: hope, efficacy, resilience, and optimism. [2]

Leaders can use this psychological capital to build authenticity, and to develop succession pipelines for new managers and leaders. Research has shown that it’s also possible to measure the development of authentic leadership, and its positive effects. [3]

How to Be an Authentic Leader

Authentic leaders get people to trust them for who they are. According to Rob Goffee and Gareth Jones, experts in authentic leadership, leaders need to demonstrate their integrity and build trust within their teams.

To do this, follow these three guidelines:

1. Acquire Self-Knowledge

An authentic leader understands their strengths, weaknesses, values, and emotions. Indeed, self-awareness and self-regulation, key aspects of emotional intelligence, are among the 12 key capabilities identified in the Mindtools "Building Better Managers" report.

They are essential for any leader, and significantly influence business outcomes and employee retention.

• Reflect on who you are. Consider your managerial capabilities and the experiences that have shaped you. Feedback from close colleagues, friends, and family can also provide fresh insight.
• Be open to new experiences. Step out of your comfort zone, and take some calculated risks. This will encourage your team members to do the same.
• Admit your flaws and weaknesses. It demonstrates self-awareness and shows your team that you’re not above accountability. Developing social sensitivity can help you decide which information you need to communicate to whom, and how to do so empathically.
• Maintain healthy boundaries. As a manager, you need to communicate carefully between senior leaders and your people on the ground. You have to strike a balance between being formal or closed off and being too relaxed and open.

2. Communicate Transparently

Be open in sharing thoughts and information about the organization with your team members, promoting honesty and integrity. The three pillars of transparent communication are:

• Participation. Managers and leaders should ask for the opinions and feedback of their people before making decisions.
• Accountability. Leaders shouldn’t shy away from delivering bad news, should admit to their mistakes, and tell people more than one side of the story if there are more than one.
• Substantiality. Information provided to teams or individuals should be timely, relevant, accurate, and delivered clearly.

3. Lead by Example

Simply put, practice what you preach. When you’re seen to stand by your word and avoid asking team members to do something you wouldn’t do, you’ll earn their respect.

Sometimes, a team member needs reassurance or guidance in a certain direction. Tune into their situation and listen with empathy, so you can offer insight that will help them to move forward.

The Benefits of Authentic Leadership

Being truly authentic isn't easy, but when you get the balance between formality and openness right, you can inspire your team to trust you.

When people work alongside a genuinely authentic leader, they often fully engage with the cause. This spirit of teamwork and loyalty can spread throughout an organization, resulting in high morale and extraordinary results.

Because authentic leaders prioritize openness and feedback, they are more likely to involve their team in decision making. This approach leads to more well-rounded and informed decisions, because it considers diverse perspectives.

Authentic leaders also make decisions that align with their values, ensuring ethical and responsible outcomes. This in turn builds trust and credibility.

And by demonstrating self-awareness and emotional intelligence, authentic leaders can manage stress, setbacks, and conflict with poise. This sets an example for their team, encouraging emotional resilience in the workplace.

Leaders who are open about their challenges and vulnerabilities can foster a more compassionate environment, supporting employee wellbeing and reducing burnout.

Challenges and Criticisms of Authentic Leadership Theory

Authentic leadership may seem too good to be true. It emphasizes self-expression to an extent that can conflict with organizational needs. Leaders who adhere rigidly to personal values that can also be perceived as inflexible.

The ideas may also appear as idealistic, difficult to implement consistently, and open to subjective interpretations of authenticity. [4]

Authentic leadership may not be a good fit across cultures, where the expression of authenticity doesn’t align with societal norms, particularly in cultures where formality is a key part of business life and etiquette. [5]

The Practical Application of Authentic Leadership

Paul Polman’s tenure as CEO of Unilever (2009–2019) exemplifies authentic leadership. He committed the group to sustainability and purpose-driven business. His bold decision to prioritize societal goals over short-term profits reflected his personal values of integrity and responsibility, key traits of an authentic leader.

His "Unilever Sustainable Living Plan" aimed to halve the company’s environmental footprint while increasing social impact and doubling revenue.

Polman rejected quarterly earnings reports, challenging the traditional corporate focus on short-term financial gains. He encouraged transparency, collaboration, and stakeholder engagement, fostering a culture of trust within the organization.

By aligning business success with positive global impact, Polman demonstrated consistency between his personal beliefs and leadership style. [6]

Keeping on Top of Authentic Leadership

To maintain your commitment to authentic leadership, check regularly that you do the following:

• Stay consistent. Make sure you continue to align your actions with your words and values, reinforcing trust and transparency.
• Seek feedback. Encourage ongoing, open dialogue to understand your team’s concerns and possible areas for improvement.
• Be open to vulnerability. Admit mistakes and share challenges, showing you are human and willing to learn alongside your team.
• Foster growth. Provide opportunities for your team to grow and develop, supporting their personal and professional journeys.
• Adapt to change. Stay flexible and transparent during times of change, keeping communication clear while adjusting to new situations.
• Lead by example. Model the behavior you expect from your team, maintaining integrity in all situations.
• Maintain accountability. Hold yourself and others accountable, continuing to ensure fairness and responsibility in decision making.

Let’s Act

Begin developing authentic leadership by reflecting on your core values, and how you enact them in your work and with your team. Think in turn about the times when you were:

• happiest
• most proud
• most fulfilled

For each category, consider:

• why you felt that way
• who was involved
• what other factors contributed to how you felt

This will help you to understand what you value most in life and at work – the foundation of authenticity.