According to Rachel Ong, the chief executive of ROHEI, many leaders fail because they don’t finish well. This article discusses the various leadership pitfalls and how healthy relationships can help leaders overcome these obstacles.
- Power Abuse
One of the most common leadership pitfalls people can fall victim to is their desire to please others in positions of power. This can lead to them behaving poorly and treating others differently.
The Greater Good Magazine states that people in positions of power are more prone to acting on their impulses and treating others according to stereotypes instead of their values. This can prevent them from seeing and understanding people as individuals. Leaders who cannot see their subordinates’ reports as individuals have little to no connection with them. Employees are less likely to feel valued and engaged, and they are less likely to care about the company’s more considerable success. Leaders need people who can help them improve their sense of humor.
- Financial Abuse
In 2020, Wells Fargo, once regarded as one of the largest banks in the US, was ordered to pay a $3 billion settlement for fraudulent practices. In 2016, it was revealed that employees were struggling with their product distribution quotas. As a result, executives urged employees to take unlawful measures to meet these quotas.
To meet their quotas, employees opened new checking and savings accounts under the names of their existing clients. They then moved money around the funds to maintain their status. The original account holders would then start asking questions about the fees and the presence of other accounts.
The main reason why the executives of the company were so concerned about the quotas was financial. However, the culture of the company was also a significant issue. Employees were encouraged to commit fraud with the approval of their superiors. On the other hand, those who tried to raise their concerns were fired or even sanctioned.
A study by a scholarly journal revealed that employees committing fraud on the managerial level are more likely to do so if there is a lack of a collaborative culture between the executives and the workers. In the case of Wells Fargo, the executives did not care about the unrealistic quotas the employees had to meet. Instead, they told them that meeting these expectations was the best way to keep their jobs.
- Too Much Confidence
General Motors is a car manufacturer in the US that has been around since the 1900s. During the 1960s, it produced some of the most recognizable cars in the world, such as the Chevrolet Corvette and the Cadillac.
During the 1970s, sales of cars in the US dropped dramatically due to the oil crisis. By the 1980s, cars made by European and Japanese companies had started to reach the market. Despite the increasing number of fuel-efficient vehicles, General Motors still decided to continue making cars that consume high fuel.
After filing for bankruptcy in 2009, General Motors was reorganized and started under a new CEO. During the reorganization, it was revealed that many of the company’s employees believed that their leaders would be satisfied even if the quality of their products was compromised.
The company failed to develop and grow because its executives did not believe that the car models it made would be able to compete with the new foreign competitors. Instead, they focused on maintaining their loyalty to the company’s consumers. This culture led to a divide between the executives and the employees. Despite the various challenges the company has faced, the current CEO is still focused on improving the company’s culture.
The company’s leaders should have been more open about their conversations with the consumers. They would have been able to hear from the middle managers who are more knowledgeable about the issues affecting the company. This would have allowed them to make better decisions and improve customer service. Developing strong relationships is very important for leaders to receive honest feedback. This will allow them to maintain their self-awareness and improve their performance.