LGT: About the Formula

Introduction About the Formula

Our last newsletter article mentioned a future discussion on the leadership formula. Since then, my attention was consumed by the world’s multiple human-made crises, defining interventions and examining the best approach – prevention. I still hold the belief that an ounce of prevention exceeds and is worth more than a pound of cure. Leadership’s grand theory formula is applicable to the world and the workplace. The current pandemic has been avoidable since 2004. The cost is over 6 million deaths, an estimated $11 trillion in direct cost, and $24 trillion in lost output, according to estimates of the International Monetary Fund (IMF). If this is the manner leadership works, it is time for a paradigm shift.  An element of the shift is leadership’s formula. The formula is grounded in leadership’s grand theory, which has the support of empirical and scientific evidence. In the fields of math and physics or other sciences, a formula is a relationship and or set of explicit principles determining or influencing the conduct or procedure within a particular area or activity. In other words, the rules of the activity. In this case, the phenomenon of leadership.

For far too long, what is called leadership is largely supported by the anecdotal and the observation of the eye in a microcosm. We looked at a mind map of the tenets of leadership since 1840, and some intelligent young people studying leadership noticed the problems immediately. It is not clear why those called experts cannot see the same in current-day models. See an extract of that mind map in Figure 1. Leadership: Theory and Practice, a book, does a good job of accentuating some of the strengths and weaknesses of theories. Those that some claim to be the best have issues and are not supported by the latent variables that make the real difference. Current models also have issues. However, industry and academia considerably ignored what was known long before the 100 years that most of us have lived within. In the worst cases, ignoring principle, science, and empirical evidence amounts to loss of lives, livelihoods, and contributes to the multiple human-made crises we observe.

Figure 1

Leadership Mind Map Extract

Note: Some of the concepts as tenets are problematic, lack specificity, and parameters.

Terms surfaced and resurfaced, becoming associated with leadership, such as empathy, psychological safety, resilience, and even love. The output can be useful but lacks a formula of how-to universally. If one studies etymology, the same will see the original use of the word resilience, then associated with immaterial things or a dimension understood easily. Related outcomes from the resurfaced terms when associated with people who attempt application, while lacking the necessary latent variables, are burnout and imposter syndrome. Tina Turner’s song says much about one understanding of love in a context. It was far from the fact. In the Greek language, one can come to know various types of love. The anecdotal presents the long way to get where we need to go, and precious lives of people are lost in the process.

Given the often-enough conflation of leadership with management, it has become a phenomenon with skills found in various fields and possessed by people who are not leaders. Many descriptors are added to the term to specify the context for the leadership. The fact learned without making the necessary separation is, a person may be in a position, in a specific field, and maybe the head of the entity such as a president or authoritarian, and not be a leader who practices leadership. There is also research, much relying on single methods having unaddressed weaknesses and lacking triangulation. Two of the best leadership models in practice lack strong theoretical foundations and other shortcomings as cited in a leadership textbook used in some universities.

Nominal leadership gained a space where anyone who has something to say about leadership can declare themselves an expert or a leader. Understand, the expert is one who has a broad and deep understanding and competence premised on knowledge, skill, and experience obtained by education and practice. The leader is one who practices leadership. The new definition of leadership, which is universal, was discussed in a prior newsletter.

After the effort put into the field of leadership or even a body of knowledge as described by a leadership scholar, since 1840, the world is “becoming unhinged.” The description of the world or the nations of the world came from the Secretary General of the United Nations during the 78th Session of the General Assembly. Thus, what we see in the world and workplace are multiple human-made crises (e.g., increasing mental illness, division in nations, riots, unjust wars, unnecessary loss of life, lack of engagement, a pandemic, and others) amidst those called leaders who have much to do with the conditions.

This newsletter article intends to advance an informative discussion to promote an understanding of leadership compared to nominal leadership by its formula. The recently emerged formula for leadership, to the degree possible, adds to the identification and explanation of the nature and basis of essential qualities for leaders for the practice of leadership. The same makes the phenomenon distinctive from other practices and phenomena (e.g., influence, inspiration, management, headship, presidential authority, and other actions stemming from positions or other practices). When a formula, as with a definition, provides governing principles or specificity for an activity, one can learn far more from them than the basics.

To date, there is a conflation of leadership with various concepts and skills that are not leadership. People who are not leaders possess similar skills purported to be essential for leaders. However, many people with esteemed skills are not necessarily leaders. A leader with skills can be more useful in various contexts, like any individual possessing skills. However, a great leader could have little to none of the hard skills, as they are called sometimes. Nevertheless, the one who practices according to the definition(s) of leadership, its formula, and derived models is indeed a leader and will never fail as a leader. In the past, few if any of the approaches came with guarantees, but leadership’s grand theory and related model are nothing like those previously declared. This means if there is a continual practice premised on leadership’s grand theory, its definitions, formula, and emerging model(s), the same will never fail as a leader due to the practice of leadership and not nominal leadership.

Conditions in Absence of a Formula

In simple math addend + addend = sum. The formula is infallible or false. If the formula is false it leads to failure. What formula did the world have for leadership until recently? The approach to leadership has not been clear, contributing to what we see in the world and workplaces for the past decades. There are over 101 must-haves, with few necessary to be a great leader. We see low confidence and trust in the polls and multiple crises in the world. According to a joint survey by the Milken Institute and The Harris Poll, 63% of the survey’s participants held the opinion that “their leaders are out of touch with the rest of the country”(Milken Institute, 2020). The Odgers Berndtson Leadership Confidence Index 2020 reveals, “that across the world, only 15% of executives are actually confident in their leaders to deliver” (Berndtson, 2020).

The world is experiencing multiple human-made crises. So, what is the problem? If there is a great model out there, why is it not being used widely? If used, is the world seeing the needed results? How do you explain the direction of the world that is in the hands of those called leaders? In a recent Gallup Report, 59 percent of global employees are quietly quitting, with 18 percent loudly quitting. The same report estimates lack of engagement, costing the world’s economy $8.8 trillion (Gallup, 2023). According to a McKinsey report over 19 million have quit since 2021. United States military recruiting suffered since 2022 and missed recruiting goals in 2023 by approximately 40,000 recruits. Therefore, why should we hold on to the rest, that contributed to the mess, when we all could have the best? Think about this for a moment. Which one could be yielding results in a certain context, but will it work everywhere, given what was stated above? Further, do you know the actual factors responsible for the success that you believe you delivered? Too many make causal claims in research and life, while not knowing the latent variable(s) responsible for a perceived or actual success.

Consider the collapse of the Afghan Government, after nearly 20 years of effort, and training from the best forces in the world, utilizing some of the best equipment and approaches. All in a space that supposedly teaches leadership with a budget to support the same. In addition, the use of approximately $2.3 trillion, of $8 trillion, that related to post 9/11 operations. Do you know what went wrong and what was ignored for approximately two decades? If not, leadership’s grand theory will inform you of the dimension that should have been in place from the start. A former Chairman of the Joint Chiefs of Staff mentioned a condition that remained present with the absence of the critical factor supported by leadership’s grand theory. Many do not understand that such a condition can cause a person, an organization, or a nation to collapse eventually. Some may be fooled into believing that an organization is doing its best, while settling for the status quo, when factually it is less than its potential. Some organizations are said to be too big to fail when we see factors contributing to failure at various levels, and they continue to exist. Often it is the money that keeps it afloat along with the faithful few. The Pareto principle is at work in many organizations. The principle states that for many outcomes, approximately 80% of consequences come from 20% of causes – the vital or faithful few. Thus, it is only a matter of time before the organization degrades internally, and then manifests for world viewing.

Rationale

As mentioned in an earlier newsletter, leadership lacked a central theory that applied to leadership in any context. Understanding the phenomenon of leadership is not isolated to and from the workplace. Observing what occurs in the world is a good reflection of the state of what is called leadership. Leadership had no formula. The same allowed many to make assertions about the practice, which may appear to work in a microcosm while many observed, not realizing the latent variables at play facilitating an apparent success. We now have leadership’s grand theory, the long-sought-after theory by a generation of scholars. Then, without a general theory but enough mid-range and local theories, nominal leadership became what people saw or thought in a microcosm. Much was anecdotal and exacerbated by increasing definitions in academia which contributed to the obfuscation.

What is commonly seen and understood in the world is nominal leadership at best. Otherwise, would not the global outcomes be different? Should leadership be doing better at levels where it is unified? Nevertheless, we have cases that stand out where some of the essences of leadership can be understood (e.g., King Sejong, Abraham Lincoln, Mahatma Gandhi, Mother Teresa, Martin Luther King Jr., and a few others). These leaders are not perfect, as no human is perfect. However, their actions led to positive impacts on the lives and livelihoods of people, irrespective of the political climate, the economic and immeasurable costs.

There are successful CEOs, executives, and other people in positions who attain goals, but it does not necessarily mean there is a practice of leadership. There is often management. However, management has no foundational safeguards to prevent its degradation and harm. Ethics are taught often enough as a means of preventing potential problems, sometimes treated as optional or separate. Understanding all that is said to be ethical is not moral, but all morals are found to be ethical. Have you heard of “the end justifies the means”? It is a teleological philosophy in ethics. The rightness or morality of an action is judged by the desired outcome(s). We have seen some of the best or most skillful fail for not understanding some the discussion contained herein. If a leadership practice did not exist, the practitioner or organization has little idea of what it could have achieved - its real potential or possibility.

Had those in global positions practiced leadership in 2004, we could have avoided the current pandemic. If one looks at the decisions made concerning SARS, they were consistent with management-based decisions. Nations may have saved money rather than investing, while gaining the hearts of people. However, based on the results of related decisions, we are making it through with over 6 million deaths, with an estimated 11 trillion in costs and 24 trillion in lost output, and it is not over yet. If you understand the context after the SARS uncovering, you will also understand the right decisions were not made by those called world leaders. The right decision and intent would also facilitate the right technical solution. According to common management standards and practices, such losses and results would create the demand for a new CEO, president, and or board of directors.

The Formula

The formula, beyond the definitions, defines a relationship and or set of explicit principles determining or influencing the conduct, procedure, or practice of leadership. It captures those explicit principles briefly to be applied in the manner specified. When elements are not explicit, people tend to do what they want, ignoring principles, science, even the law, and over 2,000 years of literature with empirical evidence extending across similar time. See Figure 2 below for the formula.

Figure 2

Leadership Formula

The formula states leadership (L) is the function (f) of moral influence and or inspiration (Mii), wisdom influence and or inspiration (Wii), understanding influence and or inspiration (Uii), knowledge influence and or inspiration (Kii) , and purpose influence and or inspiration (Pii). These elements are applicable to leadership in any context across the globe, understanding the formula is derived from the high-level theory – leadership’s grand theory (LGT). These days many names are added to leadership, but if it is leadership, the same should hold true to the formula. Although there are critical knowledge bases that cannot be missed in the leadership dimension, the knowledge and purpose dimensions are the most varied mainly due to the varied contexts we find what is called leadership. Nevertheless, both are essential with parameters set. Let’s take a brief look at two of the dimensions in this newsletter.  

Moral Influence and or Inspiration

The Mii element of the formula is inseparable. The same underpins and sustains each constant element of the formula while providing the power to meet the needs of humans. Have you ever seen some of the brightest and most innovative in terms of skills fail? Have you ever seen some of the richest being degraded, harmed, and headed towards failure? Upon examination of a global database of leadership failures, you would see some of the most recognized people in their context failed because they did not understand this dimension or element of the formula in life. When one looks at leadership studies, other studies greatly exceed moral studies.

One study of 2,191 global cases of leadership failure randomly selected from 2,523 showed a statistically significant association between unethical leader actions (ULA) and unsustainable leader outcomes (ULO). There was a relatively strong association between ULA and ULO. Scientific methods, empirical and statistical evidence indicated unethical leadership action was associated with the failure of otherwise effective leadership in 98 percent of the analyzed cases. 

Given your eyes and ears over the years or considering the empirical evidence, who has not failed or begun to fail with an immoral practice? One of the world’s richest has not escaped the principles, while another that touts riches is feeling and will feel the pain of the principle. The pain will also be felt by those who associate with the same. An immoral practice does not work in the long run. Look at those called leaders, such as Hitler, Rudolf Hess, Milošević, Charles Taylor, and many others who encountered the principles that brought an end to what they practiced. Such practices bring degradation and harm and places lives and livelihoods at risk. Understanding harm and degradation began within the one called a leader.

If there is an element that destroys the construct, does it make sense for it to be an element thereof? Consider a list of otherwise successful people called leaders together accumulated over $1 billion in payouts ordered by the courts, listed as defendants in criminal cases, disbarred from legal practice, and imprisoned just by association with another well-known name who is said to have led a nation. The same has over 91 felony charges, spent over $50 million in legal expenses, recently ordered by the court to pay an additional $83.3 million judgment, faces a $355 million plus interest judgment for fraud, and debarment from serving in certain positions in the businesses for a period in the state. A thing to understand is that even if allegations surface for the wrong reasons, the same does not hold up without related evidence that contributes to unsustainable outcomes.

Enough say leadership is influence, while some say it is inspiration, often to simplify the phenomenon. However, influence and inspiration are each a phenomenon and may operate in different contexts and may have nothing to do with leadership. Therefore, how can one or the other be (solely) leadership? Infants and children influence their parents. Would you then call the repeated influence exerted by the child to be the leadership some spend thousands of dollars to learn? Would you call the inspiration one receives to do something different than observed or studied leadership? Would you call the influence of one called a deceiver the practice of leadership, although many were influenced and found themselves deceived? Leadership is intended for good, in a context to accomplish what one finds difficult or cannot do alone. If the influence is not moral, it begins to degrade the practitioner before those possibly influenced. The same is subject to cession by the law, harm caused, or outright failure. Organizational investments made in leadership are not with the intent of the investment failing.

There is always the question of the standard for morals or whose morals? If one has traveled or studied around the world there is a universal set of morals. The powerful sub-dimensions taught in the Leadership’s Grand Theory Course create the best conditions second to none for a workforce, community, organization, government, nation, or any people. The United Nations made a universal declaration in 1948, but without the practical means to fulfill it at a basic and practical level. Nevertheless, its member nations across the world agreed. 

Top universities are learning for education to provide positive effects for students and society, insight about social learning theory is necessary. The integration of relevant ethics in courses rather than solely a separate ethics course demonstrates understanding. Some of the same universities had students involved in some of the largest bankruptcies and contributed to the last financial crisis. Moral influence and or inspiration takes care of the innate needs of humans, setting them up to be the best they can be. The sub-dimensions of the Mii dimension accomplishes the best in ways like nothing else we have seen in leadership to date. The Mii dimension and its sub-dimensions address the rising mental illness surfacing around the world.

The use of the mental illness hotline increased exponentially, exceeding 1,200 percent in an advanced nation. The dimension and its sub-dimensions provide the best conditions for performance, engagement, positive workplace behaviors, and work against the worst social ills in nations. The 15 sub-dimensions of the Mii element in the formula work together and are extremely practical but not necessarily easy. Development can take place anytime, anywhere, and with anyone. This capacity of the sub-dimensions overcome a critical problem with current training isolated to organizational settings or specific contexts. There is a plan to discuss this further in future writing. 

Wisdom Influence and or Inspiration

The Wii element delivers results in people and processes from another dimension that influences and inspires. In 2022, the concept of wisdom was the theme of the International Leadership Association (ILA) 24th Global Conference in Washington, D.C. The complete theme was “Leadership in Times of Crisis" for the year 2022. The definition of wisdom from over 2,000 years ago is: "having the power of discerning and judging rightly" or insight and the right use of factual knowledge. However, its understanding deteriorates when the concept becomes associated with words like “cunning”.

Wisdom can influence and inspire beyond the outcome of judging rightly and having insight. Wisdom is crucial during times of crisis; however, one does not need to wait for a crisis to materialize, for wisdom to fulfill its promise. Judging rightly premised on insight could avoid a crisis. The world is amidst multiple human-made crises. If wisdom were in practice, the pandemic would not have occurred after the SARS outbreak over a decade earlier. Therefore, over six million people would still be alive. Monetary resources in the trillions of dollars would be available for other uses. There is a saying that wisdom is found on the lips of one who possesses understanding.

Throughout the conference, there were discussions about wisdom with those in attendance. Some discussions stood out with the contents overlooked for hundreds of years and directly associated with the current state of what is called leadership. See Figure 3.

Figure 3

Gems Shared

Insight into the human conscience surfaced at the ILA Global Conference 2022. Except for one, the development of the conscience is explicitly overlooked by every leadership development program today. One of the largest entities in the world with the largest budget to help develop the inner dimension of humans, completely misses the fact. The organization needs to do so since it recruits people from around the nation and does not sufficiently know who they are bringing into the organization. Test scores and background checks give some insight. However, not understanding the role of the conscience as it relates to another focused-on sub-dimension of cognition is an accident waiting to happen. The same relates to 98 percent of the failures in leadership in a global study. We are not talking about the failure of a project or failure to attain an objective.

Over 93 percent of models and programs do not explicitly address a concept that results from a well-developed conscience. From the level of government to some of the most skilled and professional organizations, this dimension of a human is not clearly understood, if even recognized. Most organizations focus on the cognition and visible output of the human – the conduct or actions. We saw a top technology company lose its intellectual property through talent the company thought it knew. We saw on several occasions information that can cause exceptionally grave damage to a nation released after the processes of background checks, testing, and oaths taken. Aristotle during his life, wrote about the types of people who should be in government. Today, some people can see, and some learn, what was long-asserted the hard way. Aristotle’s assertion holds for anyone representing or responsible for people.

Once there is an understanding of the near-universal moral dimension and interacting with the Wii dimension, one can see how the same will exceed many concepts on the long list of must-haves. The same will be able to feel the power to rightly influence and or rightly inspire for the best results in and from people. The right influence or inspiration of wisdom is needed in the world.

Psychologists studied wisdom, an ancient concept, for about thirty years but came up with unclear findings. One battle encountered by some scientists who study the construct is measurement and definition. Some relate wisdom with age and intelligence. According to Albert Einstein, when the number of factors coming into play in a phenomenological complex is too large, [the] scientific method in most cases fails. That would be the case with wisdom since it would apply to every element of factual knowledge, particularly the knowledge related to humans.

Wisdom has been around for thousands of years and can be learned by those not so old, but for maximum effectiveness, there is a need for understanding. The world has become more complex and uncertain. As mentioned earlier, knowledge is taught through academic systems, particularly in universities. However, some of the top students depart and contribute to some of the worst conditions in the world. Examine the great beginning, flight, and plight of Arthur Andersen LLP on the world stage. One of the largest accounting and auditing organizations globally descended from its flight after its involvement with high-profile bankruptcies. The world clearly needs more than knowledge.

Conclusion

The formula is grounded in leadership’s grand theory, which has the support of empirical and scientific evidence. In the fields of math and physics or other sciences, a formula is a relationship and or set of explicit principles determining or influencing the conduct or procedure within a particular area or activity. In other words, the rules of the activity. In this case, the phenomenon of leadership. The dimensions discussed today, together or alone greatly exceed any of the must haves. Not even 50 percent of the  sub-dimensions of the Mii dimension improve the best two mid-range leadership theories according to the research. All sub-dimensions take leadership to a place of effectiveness not widely seen to this day. Our next newsletter article will discuss at least two more of the dimensions or elements of the leadership formula. Make sure to subscribe to receive notification of the next newsletter article when published.