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16th December 2016

What is Authentic Leadership and why is it important?

In times of uncertainty, such as during organisational change or what the post-Brexit landscape will look like, public confidence and employee morale can be reduced, neither of which is good for business. Research shows us that trust in business leaders is low and this can have an inhibiting effect on both employees and customers. For this reason the awareness and popularity of authentic leadership is increasing. This approach to leadership is proven to regain trust and have a positive impact on bottom line outcomes.


So what actually is authentic leadership?

Traditionally the use of the word ‘authentic’ refers to something which is genuine and not fraudulent or counterfeit. In broad terms, this is what we mean when we talk about authentic leadership. An authentic leader is someone who is self-aware, works in line with their own moral principles and is aware of their weaknesses. They are not afraid to take ownership when they make mistakes and they put the interests of the organisation ahead of their own. Authentic leaders are open and honest which promotes trust. When making decisions, authentic leaders are open to differing opinions and viewpoints, rather than using information that simply confirms their own views. What we are describing is an image of a genuine, transparent leader.


Examples of authentic leaders

Steve Jobs – former CEO of Apple

  • Spoke openly to others about failures, for example dropping out of college.
  • Gained followers’ trust by being good at building self-image, for example encouraging his team at Apple to continue developing better products when the company was in crisis in 1997.

Oprah Winfrey – Actress, Former television show host

  • Spoke about hardships she overcame, for example talking openly about her traumatic childhood.
  • Oprah is not afraid to show her emotions and connect with people, for example on her talk show.


Why is it so important?

Research has shown us that authentic leaders create more trust with their employees. Higher trust has been shown to be associated with bottom line outcomes such as increased employee performance, workplace satisfaction and overall commitment to the job, which means lower staff turnover. This authenticity also impacts on customers. If they feel like the service that is being given is more authentic then they are more likely to buy or invest in a service. Authentic leadership has also been linked with increased creativity, an ever important need for businesses in today’s fast paced, complex and ambiguous world, where constant change and innovation are required to get ahead of the competition.

Here at Impact Consulting Psychologists we have been incorporating authentic leadership into our work, designing bespoke solutions for organisations. If you would like to know more about how we can help you to develop authentic leadership in your organisation please get in touch with us at [email protected] or call us on 01613512290.