Having the best possible management for a company is no longer simply a tool for success as it has also become a critical necessity for the very survival of the company. A company needs to be steered in the right direction constantly both in terms of management and leadership. Conversely, adversities and exigencies need to be avoided at all costs but they will still happen (Gellerman, 1986). When they do, adversities and exigencies can lead to the ruin of the company, in the case of poor management or they can reflect the overall resilience of the company to all stakeholders, in the case of ideal management. It is on this basis that high-performance management must be the critical consideration when appointing the CEO of a leading company. A high-performance manager combines the virtues of transactional and transformational leadership resulting in an ideal all-around leadership and management prowess which is the minimum prerequisite of the success and indeed survival of the modern company.
The current corporate world combines an extremely high level of competitiveness with arguably the highest level of regulation in history. The combination of the two creates a kind of balancing act with very limited margins (Tucker & Russel, 2004). Any element of laxity, lethargy, or reluctance will find the company falling behind its competitors, a fact that will mark a death keel for the company. For example, Yahoo used to be a close competitor to Google and Microsoft, two of the leading global players in the IT industry. When Yahoo lagged behind, it soon fell behind and almost collapsed. Conversely, any aggressive move that breaches the myriads of available laws including but not limited to antitrust, labor relations, health considerations, unhealthy competition, and taxation might attract the attention of formal and informal regulators to the detriment of the company. There are many examples of companies in America that worked for decades to attain success but all the success was brought down by a single wrong decision. A good example is Continental Illinois Bank, among the top ten banks in the USA that suddenly found itself facing imminent bankruptcy (Gellerman, 1986). A careful evaluation of the Continental Illinois Bank will reveal that the banks leadership was only guilty of over-ambition. The Yahoo versus Continental Illinois Bank scenario defines the modern corporate world and why no mediocrity can be allowed in corporate leadership. Being a high-performance manager must be the mere minimum for a CEO.
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The purpose of every modern corporate entity is to make a profit and this requires the ability to meet the strategic goals of the company, using the least possible resources. The attainment of this feat is among the textbook components of the prerequisites of a high-performance manager. If the production process is too expensive, it will push the prices too high in order to break even, thus pushing away customers (Tucker & Russel, 2004). On the other hand, seeking to lower production costs without careful utilization of innovation will result in the compromising of production standards, leading to mediocrity and once again the pushing away of loyal customers. Minimization of production resources is thus a careful balancing act that will require a manager who is both transactional and transformational. The transactional aspect will include making the best out of the available resources. The transformational aspect, on the other hand, will include constantly seeking to improve the available resources and also the ways and means of making the best out of them, through innovation (Tucker & Russel, 2004). Howard Schultz, the former CEO and Executive Chairman of Starbucks is a good example of how transformational leadership can be combined with transactional leadership to increase profits without compromising quality. Schultz was able to grow a retail company based inter alia on the high quality of its products alongside relatively low pricing. The careful balancing act between costs and prices did not prevent Schultz from providing health covers for all Starbucks employees (Goerge, 2015). The exceptional can only be attained through the combination of transactional and transformational leadership such as the one found in a high-performance manager.
Another critical area of leadership that necessitates a high-performance manager is human resource management. Modern corporate management engenders the concept that human talent is the most important resource for the success of almost any organization. Even if the best possible systems and other resources are put in place, a company will either rise or fall based on what kind of human resources it has and how this human resource will be utilized. Once again the component of the combination of transactional and transformational leadership comes into play. Transformational leadership, in this case, entails scouting for and hiring the best possible human talent (Tucker & Russel, 2004). The second aspect of transformational leadership in HRM is seeking to continuously train, coach, and better the human resource talent that has been assembled. Transactional leadership and management then come into play through the application of the human talent as availed so as to best attain the strategic goals of the company. Among the application processes include the formation of efficient and effective teams and the management of these teams to attain the objectives and goals of the company (Tucker & Russel, 2004). To attain this, the manager must be selfless, based on the realization that the needs of the collective are more important than the needs of the individual manager. Among the best available examples of selflessness in leadership is that of Nelson Mandela who would become South Africas President after a stint of 27 years in prison, more often than not under extreme and harsh circumstances (Goerge, 2015). The presidency meant that Mandelas tormentors were now under his mercy. Instead of seeking for revenge, or even justice, Mandela elected to unite South Africa by bringing together friend and foe. Such an element of selflessness in leadership is critical for a successful CEO and can only be found within a high-performance manager.
A good CEO also needs to combine the rational and strategic approaches to planning so as to attain results, resolve exigencies, and attain the goals of the company. Being rational creates an understanding of the present realities while being strategic enables an understanding of the expected future outcomes. The combination of rational and strategic approaches is necessary for the day to day running of the company so as to enable the proper steerage of the company towards the attainment of expected goals. More importantly, the combination of rational and strategic approaches is critical when the company is encumbered by exigencies. It is almost impossible for a strong company to be brought down by a crisis, any crisis. Indeed, most events that can be termed as a crisis end up improving the resilience of the company and improving its reputation in the long run. However, even the most powerful company can be brought down by the mismanagement of a crisis. A rational approach is critical to the acceptance that a company is in a crisis failure to which the crisis will fester (Goerge, 2015). A strategic approach will enable the leadership to resolve the crisis without compromising the overall goals of the company. For example, a cover-up , the cooking of books or bribery can forestall an interim crisis but will probably lead to a worse crisis in the long run thus compromising the overall objectives of a crisis. In good or bad times, the success of a company is heavily dependent on a high-performance manager.
Finally, every company is a social citizen, a fact that makes corporate social responsibility (CSR) an integral part of good management. CSR is both active and passive and also relates to how the company treats its internal and external stakeholders. Traditionally, CSR was only about companies fulfilling a societal obligation but in the modern times, doing the right thing is integral for the reputation of the company without which, long-term success can be compromised. Among the critical elements of modern CSR is absolute and willful adherence to business ethics (Porter & Kramer, 2006). Issues such as human rights, environmental conservation, and human health are critical to business ethics that can trigger a major backlash from formal and informal regulators such as social media when not adhered to. These passive internal CSR activities need to be in order first, before a company ventures into active external CSR such as giving to charity (Porter & Kramer, 2006). Balancing all these aspects of CSR will also need the level of competence found in a high-performance manager.
From the totality of the above, hiring a high-performance manager is critical as a primary requirement for the survival and thriving of the company. Within the high-level kind of management and leadership provided by a high-performance manager, the company will either fail to be competitive enough, thus plummet. Conversely, the company may be too aggressive to overcome competition thus finding it running afoul with formal and informal regulation. If the latter happens, not only will the gains of erstwhile success and good reputation be lost, but also will the company run the risk of getting into a regulatory crisis including sanctions, lawsuits, and bad publicity. The bear minimums of a qualified CEO include being able to utilize as little resources as possible to meet all company objectives without compromising on ethics. At the same time, the CEO needs to combine transactional and transformational leadership in all elements of the company including HRM and crisis management. It is on this basis that a recommendation that the company hires a high-performance manager is made.
References
Gellerman, S. W. (1986). Why 'good' managers make bad ethical choices. Harvard Business Review , 64 (4), 85-90
George, B. (2015). Discover your true north . Hoboken, New Jersey: John Wiley & Sons
Porter, M. E., & Kramer, M. R. (2006). Strategy & society: The link between competitive advantage and corporate social responsibility.
Tucker, B. A., & Russell, R. F. (2004). The influence of the transformational leader. Journal of Leadership & Organizational Studies , 10 (4), 103-111
