LEADERSHIP DIFFERENT VENUES.

• Author: Holliday, Karen Kahler

While change may be the only constant in business today, few executives take comfort in it. Consolidation, reorganization, globalization and deregulation are reinventing our vision of the world and more importantly, our place in it. Stakeholder expectations are ever-rising, competitive advantage is obsolete in a nanosecond and the challenge to exceed expectations is enormous.

As some CEOs and CFOs struggle to cope through transition periods, others aim to lead through them. While the concept of leadership may seem "soft" in a technology-driven, results-oriented business climate, it can and it is making a difference at many companies. Importantly, effective leadership can open lines of communication at times when CEOs and other top managers need them most.

"As information moves up in a corporation, it often gets watered down by the time it gets to the CEO," says Charles M. Farkas, a director of Bain & Co. "If organizational culture prohibits people from saying what is working or not working, it's easy for a CEO to get cut off from what's really going on in the business."

Jack Weber, a consultant and University of Virginia professor, also underscores the importance of leadership during periods of change. "During any transition, people go through various emotional stages, and it's critical for CEOs and CFOs to be visible in their organizations, listening and speaking about change," Weber states. "If you don't address what people are thinking, you run the risk of negative communication in its absence."

Consultants preach it and executives pursue it, yet it's important to note that leadership has no magic formula. While there are principles that can enhance effectiveness, experts say there is no singular style of leadership that works at all organizations. Individual times and circumstances demand different solutions, and, by all accounts, leadership is an evolutionary process.

"One of the weaknesses I see when companies tap individuals for executive positions is a mentality of 'who can do the job as effectively as the last CEO,'" says Farkas. "Too much of the focus is on who can do the old job best rather than who can lead the organization forward."

While styles and circumstances may vary, executives interviewed by Financial Executive agree on one thing: adding value is a critical aspect of leadership development. While opinions may differ, depending on organizational culture and industry-specific perspectives, the leadership challenge is one of preparing organizations for whatever obstacles and opportunities lie ahead.

Wells Fargo:

Teamwork and Self-Motivation

It is sometimes said that challenging circumstances create great leaders. But that hasn't always been the case in banking. In recent years, rigid management philosophies, ego-centered acquisitions and poorly integrated mergers have undermined many of the largest and seemingly most innovative financial institutions. In contrast, San Francisco-based Wells Fargo & Co. seems to have managed change adroitly.

Lauded by Fortune magazine as one of the nation's most admired companies, the "new" Wells Fargo -- the 1998 union of the former Wells and Minneapolis-based Norwest Corp. -- has thrived under the leadership of CEO Richard Kovacevich. Among its honors last year: most admired U.S. commercial bank and second-most admired bank globally, according to Fortune, best bank for valuing customers' time, according to Forbes; and best bank in the U.S., according to SmartMoney.

But accolades like these weren't always a given. Initially, many analysts and others questioned the Norwest/Wells alliance, wondering whether Wells' integration errors of the past would haunt it once again. Indeed, the former Wells' earlier union with California-based First Interstate Bancorp created an exodus of valued customers and employees. But Kovacevich instituted what many describe as an inclusive, commonsense management style -- specifically...