Quantitative Support of Values-based Leadership 1

Running Head: QUANTITATIVE SUPPORT OF VALUES-BASED LEADERSHIP

Values-based Leadership
Unit 3.1 – Point to Ponder Activity
Stacey Crawford
Royal Roads University

May 26, 2005

Faculty Advisor:
Elizabeth Cull
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Quantitative Support of Values-based Leadership

Despite stubborn beliefs that suggest values-based leadership “…doesn’t work”

(O’Toole, 1996, p. 79), and is often readily rejected as ineffective, to the contrary, the

concept of values-based leadership can indeed be supported by quantitative results.

Values-based leadership is broadly defined by James O’Toole as, “based on

fundamental moral principles and universal values” (preface x). However, the majority of

leaders today are recognized as strong, decisive, and tough individuals who are

comfortable with authoritative command, viewing a values-based approach to leadership

as ““soft,” “touchy feely,” feminine,” “democratic”,…(which) is thought to lead to

ineffectiveness, insubordination, and anarchy” (O’Toole, 1996, p. 83).

Although a realist or contingency based leadership style appears to garner short-

term corporate results using pacesetting techniques and aggressive tactics, “if applied

poorly or excessively…the pacesetting approach can leave employees feeling pushed too

hard” (Goleman et al, 2002 p. 72). Perhaps more damaging, this sustained approach

negatively affects morale and leaves people feeling that the leaders are so focused on

their goals that they don’t care about the people they are relying on to achieve those

goals. (Goleman et al, 2002, p. 72).

It is commonly understood that employees who feel good at work will likely try

harder to satisfy their customer, or perform their organizational role, in a manner that

ultimately improves the bottom line. In creating an environment that helps people feel

more optimistic about their role and contribution to the organization, we can credit this

healthy climate to the values-based leader who supports relationships and the emergence

of talents, as well as her ability to bring it all together as a productive whole.

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However, although the perceived idealistic nature of the values-based leader is

appealing from a triple-bottom-line perspective, the reality of today’s corporate

environment demands results from its leader that are generally quantitative, not

qualitative in nature.

There is not a lot of room for subjectivity when it comes to profits, and so, to

demonstrate that values-based leadership can be successfully measured, we look first to

Goleman, Boyatzis, and McKee (2002). As it relates to the values of strong morale and

effective interrelationships, “…there’s actually a logarithm that predicts that relationship:

For every 1 percent improvement in the service climate, there’s a 2 percent increase in

revenue.” (Spencer, L. paper as cited in Goleman et al, 2002, p. 15). Goleman, Boyatzis,

and McKee support this result further through their own research data, concluding that,

“Our data show, that, more often than not, pacesetting poisons the climate–particularly

because of the emotional costs when a leader relies on it too much” (p. 73).

A good leader takes us places we have never been before, and perhaps there is no

better quantitative measure of values-based leadership than individuals that have changed

the principles that govern the lives of entire nations. Utilizing a common vision, and

supported by the moral principles of trust, respect, integrity, and service (O’Toole, 1996,

p. 99), we need look no further than the great servant leaders that include Gandhi, Martin

Luther King, and Nelson Mandela.

A quantitative example of servant leadership that encompasses these

aforementioned moral leadership values in a modern-day corporate environment can be

demonstrated through the tremendous financial success attained by Max De Pree. De

Pree is a well known author who espoused the virtues of values-based leadership, as well
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as served as CEO of Herman Miller, one of the most profitable of the entire Fortune 500

(O’Toole, 1996, p. 114). Perhaps somewhat subjective, no one can deny that Max De

Pree was able to combine the values of trust, dignity, and self-realization while attaining

organizational goals (De Pree, 1989, p. 16).

Perhaps the reason values-based leadership is a threat to some is simply the

inability to learn and clarify the values that govern their own life (Kouzes & Posner,

2002, p. 394). In my opinion, it’s the inability or lack of desire to learn how to interrelate,

how to address opposing values with integrity and respect. Navigating leadership without

a moral point of reference is someone navigating the waters of leadership without a

rudder (Kouzes & Posner, 2002, p. 394).

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References

Anderson, Dean & Ackerman Anderson, Linda (2001). Beyond change management:

Advanced strategies for today’s transformational leaders. San Francisco: Jossey-

Bass/Pfeiffer

De Pree, M. (1989). Leadership is an art. Retrieved May 24, 2005, from Royal Roads

University, MALT LT-516 Website:

http://learn.royalroads.ca/ID/ViewContent.aspx?

intOrganizationID=37059&intItemID=119761&StyleSheet=admin.css

Goleman, D., Boyatzis, R. & McKee, A. (2002). Primal leadership: Realizing the power

of emotional intelligence. Boston: Harvard Business School Publishing.

Kouzes, J. & Posner, B. (2002). The leadership challenge. Third edition. San Francisco:

Jossey-Bass. (First edition 1987).

O’ Toole, J. (1995, 1996) leading change:The argument for values-based leadership.

New York: Ballantine Books.