Why teams need leaders: The business case

In the early 20th century, the management legacy of the industrial era, focus was on how to get people to work harder and smarter. Work was often manual and workers were plenty. Working conditions were poor and wellbeing of workers was low priority. If they didn't work hard or follow instructions, they were fired and someone else was ready at the gates. People were seen as resources and commodities. 

As the 20th century progressed, a shift in mindset began to develop. Unions and socialist parties began to stand up for workers rights, ensuring rest, fair treatment and fair pay. Notable leaders such as Henry Ford and George Cadbury has set up their businesses focusing on their people. They invested in communities, homes, education and treating people fairly. Although Ford was known as being a bit of a tyrant, he also understood how applying management theory could make production more efficient. On September 25^th 1926, Henry Ford announced the 8-hour, 5-day work week. This was against the conventions as many because other factories had their workers work 6 days a week for extensive hours a day. Ford understood how workers productivity dipped after 8 hours, so sent them home and replaced them with shift workers, ready for another 8 hours. He was very considerate of his workers and believed that they needed time for their family, hence the weekend was invented.  

Most jobs were physical labour, so people were hired for their physical output. No “thinking” required or meaning or purpose. So heavy management was required to get people to do things they didn’t want to do. You managed people, just like a machine. Management theory was looking at how to make workers more efficient.  

Behavioural psychology became popular in this time and as this trickled into the workplace, leaders began to understand that happy, healthy workers were more productive workers. Management still ruled through hierarchy, rules and fear, but working conditions, workers rights, fairness and equality were transitioning into the workplace.

By mid 20th century, in the Western world, the service industry had grown. Problem solving, customer service, creativity and innovation were skills that started emerging in the workplace. People were hired for their brains and interpersonal skills more than their physical abilities. Old techniques weren’t working as you couldn't make people think more by putting a target on them, or putting sanctions on them. Bosses couldn't force you to come up with ideas, or solve problems, instead they had to learn how to manage peoples minds. Fear was found to be closing down their brains and so management adapted again. 

Now, in the 21st century, automation, AI, computers and machines now complete much of the work once done by humans. Human capability needs managers, but managers who can lead as well as plan, organise, delegate and monitor the work.  Humans need need empathy, emotional intelligence, knowledge, the management skills and the leadership strengths to help us grow in the workplace. We need meaningful work, someone to follow, a vision, to feel included and most importantly to establish trust. 

Thus we are now in a world where leadership is the essential trait of management.