What are the 5 simple rules which are essential for leadership?

These five "rules" became The Leadership Code and a data-driven guide to efficient and successful leadership: Rule 1: Shape the Future. ... Rule 2: Make Things Happen. ... Rule 3: Engage Today's Talent. ... Rule 4: Build the Next Generation. ... Rule 5: Invest in Yourself.

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Years ago, my partner Dave Ulrich and I set out to "crack the code" of effective leadership—an undertaking that led to our sifting through over 2,000,000 leadership assessments. As we took this challenge, we focused on two simple but elusive questions:

What percent of effective leadership is basically the same? Are there some common rules that any leader anywhere must master? Is there a recognizable Leadership Code? If there are common rules that all leaders must master, what are they?

From the body of interviews we conducted, we concluded that 60 to 70 percent of leadership effectiveness would be revealed in a code—if we could crack it! Synthesizing the data, the interviews, and our own research and experience, a framework emerged that we simply call the Leadership Code. An analogy guided our thinking. How different is a luxury Lexus sedan from a Chrysler minivan? If you are like most people, you likely view the two vehicles as being very different from each other, perhaps even opposites. The Lexus appeals to people interested in comfort and prestige, while the minivan is a perfect vehicle for an active family on a budget. You may love to drive either one and not want to be caught dead in the other, believing them to be very different species. But are they really? Underneath the obvious external characteristics, they share more in common than they differ. First of all, they are both forms of individual (versus mass) transportation. They both get you where you need to go. They each do that by sharing an important set of core elements: drive train, crankshaft, brakes, wipers, blades, and batteries. In fact, when you add it up, the degree to which any two cars share fundamental similarities is much greater than their differences.

Does an effective leader at Wal-Mart in any way resemble an effective leader at Virgin Airlines?

As we listened to leadership experts, we felt that the same logic would apply. Does an effective leader at Wal-Mart in any way resemble an effective leader at Virgin Airlines? Does an effective leader in a bootstrapping non-governmental organization in any way resemble one at the famously bureaucratic United Nations? Does an effective leader in an emerging market resemble one in a mature market? Does an effective leader in organized crime in any way resemble one in organized religion? Does an effective leader in a Swiss pharmaceutical company share any underlying characteristics with an effective leader at Google?

(Looking to improve the way you lead and benefit your people and organization? Check out our proven Art of Leadership program.)

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After countless hours of analysis, we found a pattern of the same five essentials coming up again and again. These five "rules" became The Leadership Code and a data-driven guide to efficient and successful leadership:

Rule 1: Shape the Future.

This rule is embodied in the Strategist dimension of the leader. Strategists answer the question, “Where are we going?” and make sure that those around them understand the direction as well. They figure out where the organization needs to go to succeed; they test these ideas pragmatically against current resources (money, people, organizational capabilities); and they work with others to figure out how to get from the present to the desired future. Strategists have a vision about the future and are able to position their organization to create and respond to that future. The rules for Strategists are about creating, defining, and delivering principles of what can be.

Rule 2: Make Things Happen.

Turn what you know into what you do. The Executor dimension of the leader focuses on the question, “How will we make sure we get to where we are going?” Executors translate strategy into action and put the systems in place for others to do the same. Executors understand how to make change happen, assign accountability, know which key decisions to take and which to delegate, and make sure that teams work well together. They keep promises to multiple stakeholders. The rules for Executors revolve around discipline for getting things done and the technical expertise to get the right things done right.

Rule 3: Engage Today’s Talent.

Leaders who optimize talent answer the question, “Who goes with us on our business journey?” Talent Managers know how to identify, build, and engage talent to get the needed results now. They identify what skills are required, draw talent to their organizations, engage them, communicate extensively, and ensure that employees turn in their best efforts. Talent Managers generate intense personal, professional, and organizational loyalty. The rules for Talent Managers center around resolutions that help people develop themselves for the good of the organization. Leaders who are Human Capital Developers answer the question, “Who stays and sustains the organization for the next generation?” Talent Managers ensure shorter-term results through people, while Human Capital Developers ensure that the organization has the longer-term competencies required for future strategic success; they ensure that the organization will outlive any single individual. Just as good parents invest in helping their children succeed, Human Capital Developers help future leaders be successful. Throughout the organization, they build a workforce plan focused on future talent, understand how to develop that talent, and help employees see their future careers within the company. Human Capital Developers install rules that demonstrate a pledge to building the next generation of talent.

Rule 5: Invest in Yourself.

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At the heart of the Leadership Code—literally and figuratively—is Personal Proficiency. Effective leaders cannot be reduced to what they know or what they do. Who they are as human beings has everything to do with how much they can accomplish with and through other people. Leaders are learners: from success, failure, assignments, books, classes, people, and life itself. Passionate about their beliefs and interests, they expend an enormous personal energy and attention on whatever matters to them. Effective leaders inspire loyalty and goodwill in others because they themselves act with integrity and trust. Decisive and impassioned, they are capable of bold and courageous moves. Confident in their ability to deal with situations as they arise, they can tolerate ambiguity. I would invite you to introspection on these rules—which ones do you think of on a daily, weekly, or monthly basis? Which ones are your strengths? Which ones are your weaknesses? By understanding and applying these rules of efficient leadership, you and especially those you lead will be forever benefitted. To take your leadership to the next level and learn to apply these principles, take a look at our Art of Leadership program. Click here to download our brochure.

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