Developing Your Leadership Brand

Set your company apart by focusing on the organization, not individuals, and on external matters such as customer and investor expectations

by Marshall Goldsmith

Dave Ulrich and Norm Smallwood are friends and two of the world's acknowledged authorities on leadership development. They have done some fascinating work on taking the concept of "brand" and applying it to leadership. Here are some edited excerpts from a recent conversation we had.

What exactly is leadership brand?
DU: Leadership brand extends thinking about leadership in two ways. First, the focus is less on the individual leader and more on the leadership capability within the organization. Second, effective leadership is defined less by what happens inside an organization and more by how leaders turn external customer and investor expectations into employee abilities and organization capabilities.

The leadership brand sets a company apart from the competition by developing a cadre of exceptional managers with distinct talents geared toward fulfilling customer and investor expectations. When leaders' knowledge, skills, and values bring focus to employee behavior on areas targeting the issues customers care about, ultimately it inspires faith in the consumer that employees and managers will consistently make good on company promises.

NS: Leadership brand is consistent with a firm's brand, or identity in the marketplace. For example, Marriott (MAR) is known as a firm with exceptional service, so its leaders should be competent in identifying and delivering great service. Leaders at all levels reflect the brand when they think and act in ways consistent with the desired product or firm brand and demonstrate an ongoing reputation for both quality and results. Leadership brand is a true extension of an organization brand or identity because it shows up in behaviors and results.

What are some companies that stand apart as leadership brands from others? And why do they stand out?
NS: Wal-Mart (WMT), because the brand is built around its low prices and leaders at the company are known for managing costs efficiently, and getting things done on schedule is a good example.

Apple (AAPL) is another because it is known for its innovation and design and this comes from leaders creating new products and services like iPods, Macs, and the iPhone, for example, that break industry norms. Lexus lives by the credo, "the relentless pursuit of perfection," and leaders apply it by managing quality processes that bring continuous improvement. Nordstrom (JWN) wins in the service game because its leaders are branded with a service mentality. They don't have to ask for permission to serve customers; they do it as a part of who they are. And customers respond with high customer share.

DU: What differentiates branded leaders is the ability to reflect in their leadership style both the attributes and results that customers want to see in the company. Leadership brand should reflect the expectations of customers.

Firms with branded leadership are in a win-win situation. They win with customers because customers have confidence that the leaders will respond to their needs in a consistent and appropriate way. Firms with branded leadership win with employees because when a consistent leadership brand exists, employees know what to expect and the engagement-draining dissonance is eliminated. Employees see in their leaders what customers expect. One leader told us that he treated his best customers as if they were his best employees and his best employees as if they were his best customers. If a company makes a customer brand promise of timely and responsive behavior, the same brand should be reflected in employee relations.