Don't be an "authentic" leader

Be clear on what you stand for, but flexible in how you express it

By Graham Ward

Published: May 27, 2025 10:42:48 AM IST

Ella faced a dilemma. Newly promoted to CFO at a large German commercial bank, she felt in over her head. Just 11 months earlier, she had joined from an upstart bank in London. Though she had been marked as part of the CFO succession plan, she hadn’t had time to fully embed herself in the system or adjust to the ways of working. She was still being described as a “newbie” in meetings and had only just begun to network properly with senior colleagues.

The previous CFO had left suddenly on permanent medical leave and the department was far from stable. Ella felt insecure in her new C-suite role, up on the 33rd floor of the Frankfurt headquarters, with its plush carpets and concierge service. There was also a fair degree of jealousy and scepticism from long-serving vice-presidents now reporting to her. She was already worried about the upcoming finance all-hands meeting, where she was expected to outline her vision.

On one hand, she wanted to lay out a bold set of transformational ideas that would translate into a winning strategy. On the other, she sensed it might be better to express some of her anxiety and surprise at this unexpected “battlefield” promotion. The latter would be more authentic but might expose her as weak from the outset. The former would demonstrate inauthentic confidence. As she headed home for the weekend, she predicted a couple of sleepless nights ahead.

The problem with authentic leadership

Authentic leadership is an issue that often surfaces in coaching sessions with senior leaders who have been schooled to demonstrate heroic and courageous leadership but also encouraged to be human and vulnerable. These dichotomies come up in a variety of forms: optimism or honesty in a crisis; candour or obfuscation when an employee is underperforming; direct or deferential in communication. Which is it to be?

As usual, the answer is simple yet complex: It’s wise to start from the inside out, with a clear sense of your values. Knowing your strengths and weaknesses doesn’t mean sharing everything. But being honest about what you still need to learn signals both humanity and a willingness to grow.

If, on the other hand, you operate from the outside in, you’re more likely to be swayed by politics and the shifting mood of the organisation. You end up reacting to others rather than acting from your own principles.

Also read: Women can lead effectively while being their true selves: Swati Piramal

It is also important to consider what will create long-term, sustainable value, and use that as a constant lens when leading your team or organisation. Regularly reminding people of the purpose of their work, and why it will make a difference, helps you stay grounded. It also keeps you from getting caught up in short-term thinking or micromanagement.

For example, a team member could ask: “What happens if we don’t hit our quarterly KPIs?” You might be genuinely concerned about this and may well foresee redundancies. To authentically communicate around that, consider your role. Being honest would likely “scare the pigeons” and demoralise the workforce. Lying would make you look as if you lacked integrity and damage your credibility if the situation worsened.

Threading the needle between these two extremes might sound like this: “I’m confident we are making progress, and our overall strategy will begin to pay dividends. There are green shoots of hope, and it is painful for me to consider the alternative. I can’t discount pressure from above that we may have to focus on costs if we can’t hit the numbers, but I am not seeing that now.”

In this way, you are being authentic to your role. You are answering the important question: Does my response increase or decrease trust in this moment?

Let your principles guide you

Leaders should stay true to their values but be flexible in how they express them. You may need to change the way you communicate your thoughts and feelings depending on the context. Still, your colleagues should never have to second-guess your values.

It’s worth remembering what politicians often forget: Leadership is a service to others. That service is delivered through decisions based on what is best for the many in any given moment. Notice that I say the many, not the majority. Leadership is not a popularity contest. Sometimes tough decisions need to be made. In those moments, you need to be genuine and principled.

Back to Ella. Having received a plethora of conflicting advice, she decided that the best approach would be to tell a story. Shying away from the vision and mission, which she felt was premature, she opted to tell a tale about her passion of playing in an orchestra.

When she stood in front of the assembled crowd that Monday morning with the CEO looking on and over 1,500 people in the room and connected from across the world, her hands felt clammy.

She began: “You probably don’t know this, but I play lead violin in an orchestra. Last week we played a concert in front of a few hundred people. As I thought about my talk to you today, I realised the following is true for lead violinists and finance leaders alike. When I stepped out onto the stage, I was nervous: I am nervous now, because there is a weight of expectation. But I know that when I lead the orchestra, they look to me to set the beat. That’s what I intend to do in the coming years as we develop and integrate our new strategy.

“Just as I sometimes make mistakes with the violin, I may not always get it right here, but I will always listen to those that disagree and empower leaders that do better than me and learn from them. Moreover, I will respect the culture you built here and ensure, just like in the orchestra, I play my part in maintaining the excellence to which I know we all aspire.”

Ella’s rousing speech struck the right balance between authenticity and emotional intelligence. Authenticity without empathy can feel self-indulgent, not inspiring. Leaders need to judge when and how to be authentic, based on the emotional needs of their teams.

At the same time, they must respect professional boundaries. Context matters. Some situations call for a shift in tone or style to suit the audience. But that doesn’t mean oversharing or engaging in unprofessional behaviour outside workplace norms.

Authenticity will always be a knotty problem for leaders. The key is to stay anchored in your core values. They guide how you show up and lead – whatever the situation.

[This article is republished courtesy of INSEAD Knowledge, the portal to the latest business insights and views of The Business School of the World. Copyright INSEAD 2024]