Servant leader

A reader says: I love what you wrote about stewardship: we should work well together so that we can leave the family business in better shape to our children than what we inherited from our parents. My siblings and I are the second-generation owners of our food business. We get along well, including our spouses. As Christians, every day we try to practise what God tells us in the Bible.

We value servant leadership, which is in our handbook. But after reading your articles on stewardship, we feel that stewardship might be a better term. Servant leadership sounds weak. Are stewardship and servant leadership the same thing? Which is more appropriate for family businesses?

My reply

I am glad that the last two columns on stewardship (May 10 and 17, 2019) resonate with you. Based on the harmonious relationship you describe, I believe your family is on the right track to becoming responsible stewards of your enterprise.

Your focus on servant leadership reminds me of Chevrolet Philippines (Sept. 4 and 11, 2015).
The heads Selene Lee Yu, Sherry Yu-Gue and Albert Arcilla, who are all Christian, ensured that when they started the company, God would be at the center.

They practise what they preach, including paying all the proper taxes. Most of their employees stay on with the company because of the values they espouse.

Chevrolet Philippines practices servant leadership—and also stewardship.

Which value is more appropriate? Many successful family businesses practise both.

Are the two values the same? Not exactly equal, but there are huge overlaps.

As we saw last week, stewardship is defined by Merriam-Webster as “the careful and responsible management of something entrusted to one’s care.”

Defining servant leadership is not as simple.

A servant, according to Merriam-Webster, is “one that performs duties [for another]” while a leader is one who “guides” or “directs.” A leader has “authority” or “influence.”

At first glance, servant and leader seem to be opposites. How can one who serves also have authority?

However, we only have to look at Jesus (and Mahatma Gandhi, Nelson Mandela, Mother Teresa) to know that they coexist.

In 1977, US management guru Robert Greenleaf wrote the essay “The Servant as Leader.”

“Greenleaf espoused the view that the servant leader is servant first,” say researchers John James Cater III, Brent Beal, and Robert Justis in their exploratory study of servant leadership in family businesses.

“The basis of servant leadership is to serve others first and the results will be judged in the growth of the followers.

As opposed to transformational leaders…servant leaders do not seek power, fame, or self-interests. Servant leadership seeks to positively impact the employees and the community above the pursuit of short-term profit.”

After assessing family firms in Baton Rouge, Louisiana, the researchers discovered that servant leaders display personal honesty and integrity, as well as “listening, empathy, conceptualization, foresight, and stewardship.”

Servant leaders, according to Harvard family business expert John Davis, are the most effective ones.
They are not weak at all.

They “typically have strong ideas and principles about how their companies should be run, what their co-owners should invest in, and how their families should behave,” says Davis. “They also have egos, personal needs, and sensitivities.

“At the same time, they want to do their best for their followers. They believe in partnering with others and treating partners fairly. And they behave like servants of the greater good…They are able to make tough decisions to protect the standards and aspirations of the group.”

If you believe in stewardship and servant leadership, include both values in your handbook.