Leadership authenticity increases organisational effectiveness. Lencioni (2002) states that it is not finance, not strategy, not technology, but teamwork that remains the ultimate competitive advantage, both because it is so powerful and so rare. This therefore is the difference between a smart and a healthy organisation. He continues that insufficient attention to results is often due to:
- Absence of Trust which leads to
- Fear of Conflict, and therefore
- Lack of Commitment, resulting in
- Avoidance of Accountability
The pyramid of strength in an effective leadership team is therefore as follows:
- A solid foundation of trust at the bottom of the pyramid, which leads to
- A freedom to have healthy disagreements, resulting in
- Commitment to a course of action and
- A willingness to be accountable, which leads to (and often exceeds)
- Achieving expected results
It is for this reason that leadership authenticity increases organisational effectiveness. Whilst developing individual and collective Leadership Authenticity is not necessarily an end in itself, it is what is required to build the solid foundation of trust, required in any effective leadership team and organisation. Literature review highlights the following aspects of authentic leadership:
Authentic leaders are effective leaders who:
- know who they are (internal identity), and what they believe in;
- display transparency and consistency between their values, ethical reasoning and actions;
- focus on developing positive emotional statessuch as confidence, optimism, hope, and resilience within themselves; are widely known and respected for their integrity (Avolio et al, 2005).
Furthermore, as an authentic leader’s ethical behaviour is infused into organisational norms and relationships:
- The trust between the leader and followers increases.
- This is an important component in predicting various attitudinal, behavioural and performance outcomes, such as job satisfaction, organisational involvement and commitment. The relational transparency will further lead to operational and organisational transparency (Hannah, 2005)
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 Lencioni, P. (2002): ‘The Five dysfunctions of a Team’, San Francisco: Jossey-Bass
 Avolio, Bruce J et al. (2005). ‘Preface’, in W.L. Gardner et al (Eds), Monographs in leadership and Management Volume 3: Authentic leadership theory and practice: Origins, effects and development, Amsterdam: Elsevier, xxi – xxix.
 Hannah, T. et al (2005), ‘Moral Component of Authentic Leadership’, ‘W.L. Gardner et al, Monographs in leadership and Management Volume 3: Authentic leadership theory and practice: Origins, effects and development, Amsterdam: Elsevier