Leadership in Economic Development: It's About Credibility

Leadership Is a Relationship

Leadership matters, and it matters more in uncertain times than stable times, say Kouzes and Posner. The days when leadership was conferred by rank or characterized by command-and-control are long gone. Instead, they describe leadership as an aspiration — something you have to earn every day, because on a daily basis, people choose whether or not they are going to follow you.

Through surveying more than 75,000 people around the globe, the authors found that honesty eclipses all other leadership attributes, followed by being forward-looking, inspiring, and competent. Honesty is absolutely essential to leadership. If people are going to follow someone willingly, they first want to assure themselves that the person is worthy of their trust.

Credibility Makes a Difference

Despite the evidence that some people can succeed, for a time, in ways that are devious and dishonest, credibility has a significantly positive impact on individual and organizational performance, say Kouzes and Posner. Credible leaders strengthen the people around them, raise self-esteem, and inspire commitment and loyalty.

Credible leaders find unity among the diverse interests, points of view, and beliefs of their constituents — they develop a shared vision. Successful economic developers understand this as a basic practice. They know that going it alone is not an option and see the work we do as a team sport.

Leaders Develop Capacity

Credible leaders know that they have to continuously develop the capacity of their constituents to put shared values into practice. This involves liberating the leader in everyone and distributing leadership across the organization. The authors point to five essential components for empowering others to act: competence, choice, confidence, climate, and communication.

Leaders Sustain Hope

Leaders must keep hope alive. They must strengthen people's belief that the struggle they are called upon to deal with will produce a more promising future. Research shows that hope is essential to achieving the highest levels of performance — it drives people to have a greater number of goals, select more difficult goals, and see challenges from a positive vantage point.

As our communities face ever-pressing challenges, the hard work of community building and renewal has only increased in importance and need. The stakes have been raised for building bridges and establishing credible joint leadership. As Kouzes and Posner remind us: Do what we say we will do.