Authentic leadership: How principles can drive real impact and attract stakeholder interest

As artificial intelligence takes a bigger role in what we consume, how we communicate and how we make decisions, authenticity is becoming increasingly rare. In particular, where multiple stakeholders value purpose-driven, real impact, authentic leadership is increasingly in the spotlight.

Both in academic research and popular media, camps argue for and against authenticity.

Bill George, former chairman and CEO of Medtronic and a Harvard Business School fellow, wrote that authentic leadership is grounded in your deep personal purpose and uncompromised values, where the True North guides you – your internal compass that guides your moral and professional choices.

A scholarly review article also examined several facets of authenticity, such as authentic functioning and authentic personality and found that they positively influence well-being, work engagement, performance outcomes and career outcomes.

Authentic leadership works when leaders centre their personal values and encourage followers also to experience authenticity or “authentic followership.” This synergy promotes self-actualization at work, increasing employee motivation to perform at a high level.

However, there has been caution about bringing your entire self to work settings. In his book Don’t Be Yourself, Tomas Chamorro-Premuzic, professor at University College London and Columbia University and chief talent scientist at Manpower Group, wrote that we fall into “authenticity traps” that could hurt our leadership.

Following your heart no matter what, for example, could backfire when leaders take a strong stance on an issue while alienating others who think or feel differently.

Scholars also advocate “bounded authenticity,” where authentic leadership must balance unfiltered self-expression with the demands and requirements of leaders’ formal roles.

But what is authentic leadership? Is it as simple as “being yourself”? At the World Economic Forum panel discussion, “Authentic Leadership Revisited: What Drives Real Impact?,” experts Mershad Javan, the head of Europe at GoDigital Media Group, and Michael Riedl, CEO of Team Internet, shared their insights.

Based on their experiences – through hands-on and observation of others’ leadership – Javan and Riedl provided narratives that inform us beyond statistics in research.

“Authenticity is not the absence of a filter; it’s the presence of a spine and that’s the essence to me.” These words from Riedl framed the discussion's perspective on authentic leadership.

Both Riedl and Javan challenged aspects of previous research by arguing that authenticity is not candid self-expression, being nice or reflecting the “inspirational poster on someone’s wall.” It means being clear about deeper values that typically reveal themselves when tested.

“[Authenticity] is about being the same person when things get really, really hard. When there is immense pressure, uncertainty, money is involved and there are tough decisions to make. Do you still behave according to your principles, does your integrity hold or does it all of a sudden become negotiable?” said Javan.

He added an example from his own experience: “It was the sale of our company, Octiive, which is now public. We were fortunate to be in a position where we had multiple offers on the table. But at the end of the day, the reason we chose GoDigital, the company that I represent today, wasn’t just valuation.

“It literally came down to the leaders: they were exactly who they presented themselves to be, without any surprises and there wasn’t much corporate theatre. So that to me is authenticity at its best. When your words and actions truly, truly align.”

Riedl concurred with practices in his own team as an example: “Authenticity is not about expressing yourself. It is about being predictable on the things that matter. My people should be able to say in advance which principles I will adhere to under pressure.

“The test is simple: could your team write down your operating principles without asking you? If yes, you are authentic in the only sense that counts.”

Authentic leaders make consistent decisions, big and small. At Team Internet, the three principles of evidence-based decisions, unequivocal accountability and deliberate urgency are openly shared in the company.

On why accountability anchors the other principles, Riedl shared: “A leader who claims to be evidence-based but blames the team when the evidence-based bet fails has taught everyone that the first principle was decorative. Unequivocal accountability is what keeps the other principles honest.”

Even though both experts agree that the level of detail in communicating with different stakeholders may vary and that nuances exist when communicating across cultures or companies of different sizes, the underlying principle remains the same.

Besides, according to Javan: “Most people have a knack for being able to tell if you’re genuine or if you’re performing, regardless of where you’re at.”

Presenting oneself a little differently depending on the situation or what some stakeholders demand does not mean the leader is inauthentic or fake; it reflects an awareness of the behaviours expected of the leader.

One dimension of authentic leadership is a keen sense of self-awareness and the values that the leader stands for. Yet, according to research by organizational psychologist Tasha Eurich, most individuals are not self-aware.

“These numbers don’t surprise me at all. I think most people think self-awareness means knowing our own strengths, whereas I think real self-awareness is knowing how other people experience you,” Javan responded.

Indeed, Riedl complemented this by emphasizing that “Authenticity is an observed property: it is in the leader’s behaviour. It lives in other people’s ability to predict you, not in your ability to describe yourself.”

These insights align with more recent calls for more research on leaders’ observable behaviours and how authentic leadership is not about bringing your entire self but involves a delicate balancing act.

Authentic leadership goes beyond self-expression; it involves deeper self-reflection when confronted with difficult situations and the values that become salient from those reflections provide real impetus to achieve a greater goal collectively when applied consistently.

Different from performative authenticity or branding, authenticity comes at a real cost. It costs comfort, popularity and values need to be honoured even when it is expensive. When we move from self-expression-based authenticity to values-based authenticity, authenticity drives real impact.