How do we Measure Leadership?

To be able to officially declare that leadership is taking leaps forward, one must be able to measure the success of leadership. This in itself is a whole world of discussion. Successful leadership means booming companies, but companies can nethertheless do well ‘despite’ leaders rather than ‘due to’ good leadership, meaning the stock index is not a measure of leadership success.

It would seem that qualitative measures must be used – i.e. the accounts of leaders  throughout history as a comparison to modern leaders. But this is also a difficult area, as historic accounts of leaders were written during a different period of culture, and therefore the same characteristics of leaders may be perceived, evaluated and documented differently to today. Indeed, changes in leadership may amount to little more than culture change than an abrupt improvement in the quality of leadership itself.

One could perhaps measure leadership by identifying how many leaders per year were in the public eye, creating positive change. But then factors such as the pervasiveness of media coverage, as well as political interference would upset this analysis. As you can probably tell, the task of measuring leadership is a lot harder than it might first have seemed.

One could look at the change in popular leadership theories over a period of time, but the question is raised as to whether current leadership theories are actually absorbed by managers in any significant way – or rather, their managements styles may be more affected by the past experiences and bosses than any abstract paper by a management academic or leadership author.

A final idea for measuring leadership styles is to ask leaders themselves – are leaders today better than leaders 10, 20, 30 years ago? But this may be affected by their personal biases – all those asked would have been at a much more junior level 30 years ago, and therefore would have looked up at leaders (for better or for worse) through a different lense indeed.

Commenting on Current Leadership Styles Issues

There is presently a big debate in the wider world of management surrounding the legitimacy and credibility of leaders sticking to the old ‘autocratic’ approach of the Fordism era.

Autocratic leaders are commonly known for not consulting their subordinates in the decision making process, and being a general ‘top-down’ leader whom merely tells people what to do, rather than giving any warning, feedback or chance to lobby them on the course of action.

Naturally, in army, hospital and other situations – an autocratic leader is needed in times of high stress and short deadlines, otherwise action could be uncoordinated and ineffective. However in the remaining bulk of commercial organizational situations, you can see that the autocratic style loses merit and would create more resentment in employees than it would save money operationally. In short, overall the autocratic style could damage the organisation, in morale and financially.

Well what other options are there? The following comments may help you understand:

Comment 1 talks about the approaches needed in organizations, whilst comment 2 forms a shocking rebute. This comment doesn’t credit the correct author but this comment brings up several interesting points.

I think the overall arena for debate is quite disjointed – you have leadership authors or several leadership books who put forward their opinion in a detailed and well laid-out manner. But at the same time you have business leaders who give  the odd sound bite or quote to the press and academia which forms more of a contradictory and patchwork quilt of leadership advice.

It seems clear from above that leadership books are the answer, but they tend to be long winded and take a long time to make a simple point. They’re hardly efficient and will use up much of your precious time. Do you really have the free time to spend reading a large library of leadership material? That sounds like quite a big job to me.

 

How Can Teens Invest in Shares?

Investing in shares is allowed in the UK if you are above the age of 16. However, just because you are old enough does not mean you should be investing in shares online. This is definitely an issue you should be discussing with your parents, who may be able to offer guidance on this subject. How to buy shares online is an easy topic if you can be shown how by an experience investor, and that person could be a member of your family!

One particularly obvious elephant in the room is that teens don’t tend to have ample cash ready to invest in shares – but they do sometimes have savings from parents, family and inheritance.

Shares are only suitable as a long term investment, and life can change rapidly while you are young, so put careful thought into whether you will need access to your cash in the next 5 years. If you think there could be a strong possibility (e.g. for University) then it’s probably safer to keep some cash in the bank.

Investing while young is a great piece of financial education, and I’d recommend that everyone get to understand how to invest in shares, and to follow a few companies that they are interested in.

Don’t rush into investing – I know that learning about investing from financial blogs can fill you with an intoxicating empowerment, but remember to sleep on any big financial decision – leave it for a few weeks and after a month, reflect on whether you still think it’s a good idea.

I’m a big fan of investing, and I realize that this article may come across quite negatively, but I feel that any young investor should read this first before encountering ‘how to get rich with stocks’ style articles that may give rise to false expectations about risk and return in the stock market.

Should Teens Be Investing?

A friend asked me the other day about investing:

“Given that students effectively have negative money due to all their student debts, should students even be thinking about investments? Shouldn’t they just pay their student loan off instead?”

This is a challenging  question to answer, and no single answer could possibly apply to everyone, as it will depend on your risk preference and spending preferences.

Personally – I was saving and investing as a teen, even though I had a student loan balance outstanding. In-fact I even opted to get student loans when I had enough cash to pay for my accommodation and living expenses myself!

Why did I do this? Well, the answer comes down to long term expected returns and the cost of capital.

The long term expected returns of shares is 7-8%. The cost of my student loan is capped at the inflation rate, which is roughly 3% long term. This meant that for me, the act of taking out a student loan and investing it was a profitable activity indeed! I could expect 4-5% profit on the £,000′s that I was able to borrow.

Of course, 2011 ushered in a new era for Student Loan costs, and I now believe that the new loans are roughly as expensive as you could expect to receive on the stock market, and therefore you are just as well off by paying your student loan down than you are investing it.

Welcome to Leadership For Teens

A Warm welcome to leadership for teens. A site which brings you thought leadership in the following topics:

1. Leadership & Management

How to lead others at a young age and demonstrate real potential qualities that employers are looking for.

2. Personal Finance

How to manage your money, savings and even investments from a young age! Get into the world of investing when you are young, and your savings pot will accelerate ahead of your friends!

3. Skills & Training

Where to find training for professional, vocations and skilled manual jobs which will give you an edge in the difficult labour market.

Overall Goals

In essence, Leadership for Teens aims to give young people the snippets of advice that I WISH I had heard at the right age. Now that I’m 23 – my finances are in great shape, my career is looking up, and I have several useful skills. My goal on this not-for-profit website is to help as many others climb onto that same pathway to success!

You won’t find this site guiding you onto a particular career or type of training – I honestly believe that we all have a perfect job out there somewhere, and that your teen years and early twenties is a great period in which to seek out which one it is!

I will also be giving tips and advice on investing, saving, and even borrowing – as this is a crucial issue in today’s world, especially given the financing required to attend a UK university.