How Should a Leader Behave?

Source: The CPA Journal

The authors of this article conducted research on leadership styles in CPA firms and the qualities that make an effective leader. Current leadership theory -- which operates under the assumption that leaders are developed rather than born -- focuses on the behaviors of leaders rather than on the traits they possess.

Leadership behaviors generally fall into these three categories:

• Transformational, which focuses on rallying followers around a shared vision and motivating them to elevate the organization's interests above their own,
• Transactional, which rewards or disciplines followers based on their performance, and
• Servant, which is based on a desire to serve and encourages "collaboration, trust, foresight, listening, and the ethical use of power."

The study found a significant disconnect between the way leaders view themselves and the way their subordinates see them. Around two-thirds of respondents described their leadership style as either transformational or servant -- both of which are follower-focused styles. Yet 62 percent described their immediate supervisor's leadership style as transactional. This is noteworthy because a clear majority of respondents said they would be most responsive to a transformational leadership style.

To be effective, leaders need to break away from a transactional mindset and adopt transformational and servant behaviors. This is particularly important for managers -- nearly half of whom describe their leadership style as transactional -- as they make the transition to partner.

The authors emphasize that leadership "is not a single static style but rather a dynamic process." Effective leaders use a combination of transformational, transactional, and servant behaviors tailored to particular situations or people.

For the complete article, click here and select the article "Desired Qualities of Leaders Within Today's Accounting Firm" in the March 2010 issue.

From The CPA Journal, A Publication of the New York State Society of CPAs, March 2010.