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Bogotá, Colombia - Our special guest for this edition is Fernanda García, Country Manager at Pedersen & Partners, who believes that proper communication between leaders and their subordinates starts with knowledge and understanding of the team members, rather than following paradigms.

"A good leader has the ability to awaken the desire to do something"

The need for leaders who know how to lead processes and direct efforts has become evident within many different companies throughout numerous national and international industries.

Pedersen & Partners is a firm with extensive experience in the identification and selection of business leaders, and we believe that a leader must have the ability to communicate and interact with his team, because the team's success will depend on his or her ability to motivate them.

Holding a management position does not necessarily mean being a business leader. So how does one become a business leader?

Firstly, I think it's important to define what we mean by 'business leader'. I strongly agree with the definition given by Jim Collins in his book 'Good to Great'. After detailed empirical research, he came to the conclusion that a company that lasts over time must have 'level 5' leaders. These are leaders who create greatness through a paradoxical blend of personal humility and professional drive. In my experience, these are leaders who are determined to do whatever it takes to achieve the best long-term results, but who are fully aware that these results can only be achieved by channelling their efforts into motivating the team and leading them to surround themselves with the best professionals – the future successors that will ensure the success of the next generation.

Therefore, a person holding a senior management position within an organization is not necessarily a business leader. Leaders have to be aware that they must want to be leaders and that they will need to train others to continue the legacy. I think there is no single formula, but it always starts with "wanting to be."

Other studies show the skills and behaviours that these people have. A recent INSEAD study of a group of managers identified the following behaviours in order of importance: cross-collaboration in the business units and organizational structure, encouraging employees, listening to employees and taking their ideas into account, providing strategic direction, making decisions in ambiguous situations, and exerting influence, but through effective mechanisms of motivation rather than by authority.

What kind of relationship should exist between a leader and his team in order to ensure the smooth functioning of organizations?

Having discussed the characteristics that distinguish the leaders, I believe that there are two crucial factors within organizations: interpersonal relationships and communication. These can be difficult to achieve and must be worked on constantly. Relationships allow people to grow within an organizational structure. The leader must facilitate these relationships and identify the mechanisms that make them flow, in order to communicate ways to strengthen and promote these relationships within the team.

Proper communication starts with an understanding of who are our team members, getting to know them as unique individuals rather than following previous paradigms and listening to them.

In your experience, what are the keys to forming successful teams? How do you hire the best?

I think it all depends on what “the best talent” means to the specific organization. In my current role, I have found that there is no single definition. Depending on the organization, the best talent could be measured by technical and academic excellence, by the right balance between soft and hard skills or by attitudinal elements – adaptability to the culture and values of the company, and potential to grow. Therefore, I believe that the key to success is creating a team that is consistent with the strategy and culture of the organization. A profile might be "best" for one organization but not for another. When we work with people, there is no single formula. Successful teams will not be successful all the time – there will be good times and bad times, but the important thing is that that each team member is clear about his role.

What criteria should be taken into account when creating decision-making bodies such as boards of directors?

As the highest management body, a board of directors has a key role in any company. The Harvard Business Review states "The board of directors should recognize and respect the boundaries between monitoring the Management and managing the Company" – so when creating a board of directors, we must keep in mind that these individuals need the ability to advise and support the organization's strategy, ensuring that it lasts over time. The directors should be people well-known for their integrity and ethical behaviour, their experience in the sector and their skill in independent decision-making.

What signs indicate that a professional is ready to take over high-profile responsibilities in a company?

High-potential professionals are noticed and stand out from early stages. They are proactive people that go the extra mile in everything, they are intellectually restless and they see complex situations as opportunities to take on challenges. High-potential professionals have the ability to propose different solutions and to support their opinions, sometimes against all odds. They have strong communication skills and great interpersonal relationships. In conclusion, they are professionals who constantly demand new responsibilities, and whom others see as role models.

What is the best strategy to retain talented people?

A few decades ago nobody talked about retaining talent – talented people actually retained themselves because the ideal was to enter in an organization and move up with effort and dedication. Times have changed: we now live in a global business world with no borders, and can no longer expect people to work for 20 years in an organization and eventually become CEOs or presidents. The constant changes nowadays have a significant impact, and companies must learn to manage and make the most of this reality. The important thing is to use these competitive individuals to create communities of talent.

A leader must be motivating by nature. How important is this aspect for the role of a business leader?

I have been fortunate to have excellent mentors during my career, who have been aware of the importance of their role to continue to inspire future generations. Therefore, I believe that a leader has to inspire rather than encourage.

A leader that inspires has the ability to generate passion, motivate curiosity and forge talent. A leader has the ability to awaken the desire to do something and to make it a personal challenge, inspiring the highest levels of creativity whether in the arts, sciences or business.

What is the best way to make changes in leadership positions within organizations without losing sight of their vision?

At this point I return to the concept of the 'level 5' leader. The analysis identified that many of them were not clear on what strategy to follow – they knew they had to make changes and they wanted to turn their companies into the best in the industry, but they did not know how to do it. The study showed that in all cases, these leaders worried most about the people who would be part of their management team; that is, they were more concerned about getting the right people than in defining the road to success.

At a management level, there is always fear of drastic change, but these changes must be made consciously and in accordance with the business's timing and strategy. Change is necessary for the company to endure over time.