There’s no doubt that authentic leadership is essential to building a reputable brand for businesses large and small. One study by Weber Shandwick found that 81% of global executives consider external CEO engagement to be an essential ingredient for developing company reputation. Another study concluded that employee perception of authentic leadership was the strongest single predictor of job satisfaction, work happiness, and organizational commitment.
When it comes to the marketing benefits of authentic leadership, leaders of digital start-ups are no different than CEOs of global corporations. An authentic leader creates an authentic brand — improving customer loyalty and a company’s bottom line.
What is Authentic Leadership?
In an interview with the Harvard Business Review about his book Authentic Leadership, Bill George defined an authentic leader as the following:
“… someone who is genuine and true to what they believe in. They understand the purpose of leadership, they lead with very consistent values, and with their heart, as well as their head. They have courage, compassion, empathy — qualities like that — and they build long-term connected relationships. And they have the personal self-discipline to deliver extraordinary results from their teams.”
When these leadership qualities align with corporate messaging, it’s possible to create a personal branding effect that extends across the entire company. This can be accomplished by:
- Identifying a core narrative for your brand
- Telling your story within the context of the brand’s story
- Letting your team be ambassadors of that story
These points help you consistently deliver personal brand messaging from top to bottom, increasing customer engagement while standing out from the competition.
Authentic Leadership Increases Customer Engagement
Customers and employees tend to view companies as honest and reliable when their leaders are honest and reliable. Case in point: the outdoor apparel company, Patagonia. Legions of fans and customers consider Patagonia their brand of choice because of the values instilled by its founder, Yvon Chouinard.
Chouinard said that Patagonia has four core values, which are to:
- Make the highest-quality products
- Consider the environmental impact of everything we do
- Engage and support our communities
- Contribute a portion of our sales to philanthropy
Patagonia’s values are a reflection of Chouinard’s, and they are not lip service. When the company earned an additional $10 million in profit from President Trump’s 2018 tax cuts, it donated the full amount to grassroots groups fighting climate change. Chouinard’s authentic example informs Patagonia’s values, which in turn generates goodwill – and profits – from their customers.
Authentic Leadership Increases Employee Engagement
In a world of platforms and products that all look and feel alike, authentic leadership can help a company stand out in a crowded field. Leaders like Richard Branson (Virgin) and John Legere (T-Mobile) don’t just infuse personality into their brands; they ensure all corporate communications are a reflection of their values. In Richard Branson’s book Like a Virgin, he comments on the difference between “we” versus “they”:
“If employees aren’t associating themselves with their company by using we, it is a sign that people up and down the chain of command aren’t communicating — and if that turns out to be the case, you’ll usually find secondary problems throughout the company affecting everything from development to customer service.”
Employees also feel more engaged with the companies they work for if their leaders are authentic, inclusive, and inspiring through their words and actions. They are more inclined to get out of their comfort zones and embrace new challenges, knowing that their leaders will be honest with them and support them.
Authentic Leadership Matters
A leader’s personal brand and reputation can make or break your company’s ability to differentiate itself and increase engagement with both customers and employees. Yet as Bill George notes, this process works best when leaders let their values inform and uplift others around them, be they customers, employees, shareholders, or communities. While these steps can be a challenge, marketers with such a leader will find no shortage of stories that can help them elevate the broader brand.