LEADERSHIP: GOING BACK TO GO FORWARD

LEADERSHIP: GOING BACK TO GO FORWARD

LEADERSHIP: GOING BACK TO GO FORWARD

Australia's Prime Minister, Treasurer and hapless Government have locked themselves in a citadel of denial. They're defending a resources super-profits tax, that's been ill-conceived and badly introduced. The local media are full of it as are key overseas financial reports. In Australia, not only mining people but also ex Labor Ministers, retired public servants, industry analysts and "friends" of Labor are trying to make the Government see sense. The tax, as proposed, is a national risk. Other countries are welcoming it as reducing Australia's competitiveness in both attracting investment and exporting minerals. This same week, I've had a client CEO attempt a similar denial. Here are some thoughts on getting free.

The CEO runs a venture capital company. She's denying the urging of both her largest shareholder and senior staff that the firm is over-stretched with too many investments at a time when funding is scarce, investee-company growth is challenged and IPOs near impossible.

I feel some sympathy; I've been there myself. I'd initiated a restructure of an organisation I was running. Parts of the change were good, but not the underlying logic of the biggest part. I was convinced of my plan and persisted for a couple of months. Ultimately, I recognised that I was beating a dead horse. Regardless of right or wrong, I'd lost the hearts and minds of my people. And now, the harder I pushed, the greater their resistance.

I decided to admit my error and recommended we remove the offending elements. I did this with considerable concern for my personal position. However, with almost no delay, people swung in behind the revised plan and were more generous to me than I deserved.

Above, I referred to a "citadel of denial". In earlier centuries, when a besieged city was about to fall, the local lord and his closest colleagues would retire to the central citadel to make a final stand. However, once the enemy breached the outer walls and stormed the town, the game was basically over. They could starve or burn the last of the defenders into submission.

Denial is at best a citadel and, to use another architectural metaphor, at worst a pretentious folly. The only thing a leader must have is followers. Your task, therefore, is to work out what you need to do so people will give your project the backing, energy and enthusiasm it needs. If you fail to do so, eventually their resistance will beat your denial whether you're a Prime Minister or CEO. Wise up, admit you got it wrong, and start again.

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