11 min read"Leadership is not about being in charge. It’s about taking responsibility for those in your care." What do moments of great leadership teach us about making tough decisions and building trust?
1. Growth Comes From Challenges
Stepping into challenging roles builds leadership skills and prepares you for greater responsibilities. Clifton Wharton's career demonstrates how embracing difficult assignments can foster personal and professional growth.
Wharton began as the president of Michigan State University, where he managed a sprawling, complex institution successfully for eight years. This experience proved foundational. When asked to face an even tougher situation at the State University of New York, with its larger system and more centralized structure, he relied on lessons from Michigan State to implement effective changes.
Later, Wharton took on another demanding challenge at TIAA-CREF, addressing a rigid organizational model and frustrated clients. He overhauled operations, introduced client-friendly systems, and empowered management to improve services. His journey highlights how tackling one big challenge prepares leaders for the next.
Examples
- Reforming Michigan State University and refining management systems
- Restructuring and decentralizing the State University of New York's administration
- Modernizing TIAA-CREF to provide better customer service and flexibility
2. Values and Vision Drive Leadership
Leadership shines when it aligns with personal values and a clear vision, as seen in Nancy Barry’s work in microfinance and Roy Vagelos’s commitment to healthcare.
Barry left the World Bank, skeptical of its aid methods, joining Women’s World Banking to empower women in developing countries through microfinance. She utilized her financial expertise and networks to decentralize operations and grow the institution. Her leadership brought meaningful changes to millions of lives.
Similarly, Vagelos prioritized his company’s mission over profits when tackling river blindness in Africa. Despite high costs, he advanced the development and distribution of Mectizan, a drug that didn’t maximize revenue but cured and prevented a devastating disease.
Examples
- Nancy Barry expanded Women's World Banking with a networks-driven approach
- Roy Vagelos insisted on manufacturing Mectizan to fight river blindness
- Both leaders prioritized solving societal challenges over financial gain
3. Stay Calm Under Pressure
A composed leader makes better decisions, even in high-stakes scenarios requiring quick action. Eugene Kranz’s Apollo 13 mission shows how maintaining calm can steer a team through a crisis.
When an explosion threatened the Apollo 13 spacecraft, Kranz took charge under extreme pressure. With lives hanging in the balance, he methodically assessed the situation and made crucial decisions that guided the spacecraft back to Earth. By sticking to the facts and focusing on solutions, he ensured no errors arose from panic.
On the other hand, John Gutfreund failed to act promptly at Salomon Inc. When illegal trading activities surfaced, his delays in investigating and reporting caused financial damage and stained the company’s reputation. Reacting swiftly might have mitigated the fallout.
Examples
- Eugene Kranz directed Apollo 13’s safe return by making quick, well-informed decisions
- Panic was avoided by prioritizing problem-solving over fear
- John Gutfreund’s inaction at Salomon Inc. amplified the company’s losses and public disgrace
4. Communication Builds Trust
Good leadership hinges on clear communication. Poor communication leads to mistrust and even tragedy, as demonstrated in Wagner Dodge’s firefighting ordeal in 1949.
Dodge led his team to Mann Gulch to combat a forest fire. While experienced with fire behavior, Dodge failed to explain his decisions, such as the rationale behind abandoning equipment or lighting a counterfire for safety. Lacking trust in his unclear choices, the team dispersed, and 14 lost their lives.
Had Dodge adequately shared his strategies, his men might have trusted him and survived. Leaders must not only direct but also connect, fostering understanding and collaboration within teams.
Examples
- Dodge’s silent decisions confused his team during the Mann Gulch fire
- A lack of clarity in leadership can cost lives and trust
- Open communication instills confidence within a team
5. Listening Secures Support
Strong leaders listen and involve teams in decision-making. Joshua Chamberlain demonstrated this when commanding mutineers in the Civil War.
When a group of discontented soldiers joined his regiment, Chamberlain heard them out, empathized, and addressed their concerns. His patience and understanding turned them into loyal fighters. Their cooperation contributed to his unit’s success at Gettysburg, where their defense of Little Round Top proved instrumental.
Listening builds cooperation and trust, allowing even reluctant participants to align with leadership goals. Meeting others halfway often inspires loyalty and commitment.
Examples
- Chamberlain’s attentiveness unified mutineers into effective soldiers
- Addressing grievances helped solve morale problems in a difficult environment
- Cooperation at Little Round Top led to a Union victory at Gettysburg
6. Team Consensus Matters
Effective leaders value consensus, especially when hard decisions are necessary. Arlene Blum demonstrated this by aligning her team of mountaineers during a tough climb.
Blum made safety a priority on Annapurna, consulting everyone before deciding which four members should summit first. The group agreed, ensuring a unified, supportive decision. This approach enhanced trust and morale, even for members who didn’t reach the peak.
Consensus prevents resentment, giving teams ownership of plans and decisions. Shared goals foster harmony and ensure effort toward collective success.
Examples
- Blum consulted her team on decisions during their expedition
- Consensus enabled seamless, safe summit planning
- Uniting around safety boosted morale, even for members who stayed behind
7. Act Now, Avoid Bigger Problems
Timely action is vital in leadership. Delays in addressing issues often worsen the situation. Gutfreund's failure at Salomon Inc. highlights the dangers of procrastination.
Discovery of illegal bond bidding occurred long before Gutfreund reported or disciplined Mozer, the responsible trader. This inaction multiplied public and regulatory backlash, leading to severe reputational and financial harm.
In contrast, responsive strategies like Kranz’s illustrate how decisive action prevents loss, confusion, or disaster.
Examples
- Gutfreund delayed taking action against illegal trading, hurting Salomon Inc.
- Procrastination in leadership costs money, reputation, and opportunities
- Proactive leaders mitigate risks by responding quickly to challenges
8. Collaboration Strengthens Results
A collaborative team outperforms one dominated by commands. The story of Arlene Blum’s climb reveals how seeking input can empower teams while still focusing on primary goals.
Before scaling Annapurna, Blum sought her team’s agreement to send only a select few to the summit. Being part of the decision, even risky ones, allowed the crew to share both challenges and acclaim with pride.
Collaborative methods reinforce that leadership isn't about dictating but earning trust and enthusiasm by working together.
Examples
- Blum united her team through democratic decision-making
- Consensus reduced friction and raised team spirit
- Members learned to trust her leadership while achieving individual goals together
9. Learn From Every Role
Leaders don't emerge overnight. Clifton Wharton’s career shows that every role can teach essential skills for the future.
From overseeing universities to handling a retirement fund restructuring, Wharton's ability to analyze and adapt proved valuable. By maximizing learning in each role, leaders evolve to face even bigger tasks.
Taking lessons from the past prepares leaders to approach new challenges with confidence and broader understanding. Investing in growth at every step pays dividends.
Examples
- Wharton improved with each successive challenge, from Michigan State to TIAA-CREF
- Successes in one leadership position informed solutions in the next
- Building on experience ensures leadership becomes increasingly effective
Takeaways
- Step out of your comfort zone with challenging roles to build resilience and skills.
- Communicate clearly to foster trust and alignment within your team.
- Consult and collaborate with your team before decisions to strengthen unity and morale.
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