AUTHENTIC LEADERSHIP AT CLIF BAR ORGANIZATION

Introduction

This case is about the Clif Bar Organization and is presented from the perspective of the third person. It demonstrates authentic leadership which is a concept based in (a) self-awareness, (b) balanced-processing (i.e. seeking alternative; even contradictory viewpoints), (c) transparency and disclosure of relevant information, and (d) morally based ethical actions. Authentic leadership is applying individual leader authenticity, which at the core represents being true to one's self, to the broader scope of leadership experiences that impact a leader's constituencies and organization. The case below will illustrate these points.

The Story

In 2006, Clif Bar was a private company with estimated annual revenues of about $150 million and about 170 employees. Yet, there was a moment when it almost became another product line of a large mega organization and another countless blip across the C-SPAN screen. It was a moment that can be described as authentic leadership that changed the course of the future for the owner, employees, and customers of this unique company.

After two key competitors in the industry were bought by large corporations, an offer was made by a third large corporation to purchase the Clif Bar company in the year 2000. It was an outstanding offer that was sure to make both owners extremely wealthy to the extent that they would never have to work another day in their lives.

On the day of signing the contract, however, Gary Erickson, one of the owners, felt a sense of panic, so he decided to take a walk to consider his 'epiphany'. In that moment, being aware of his innermost thoughts, he realized he did not want to sell the company. He decided he was not going to give in to all the rational reasons that 'experts' gave him for selling the business, the primary one being the fact that key competitive products were recently bought by corporations with large marketing budgets. It was argued that Clif Bar would never be able to compete at that level and would wither away under the force of immense competition. But on this day, Gary listened to is conscience and made a decision that went against these experts, including the co-owner of Clif Bar, who would now have to be bought out. Gary defied the odds and decided to back out of the deal of a lifetime. He went on to buy out the other owner for over $60 million, even though he only had $10,000 in his bank account at that time.

In this case, his leadership paid off. The company has since grown from about $40 million in sales to $150 million, even while competing with mega corporations. Most recently Clif Bar became a leader in business sustainability by offering the nation's first incentive program to pay cash to employees who purchase clean-burning bio-diesel cars, helping employees buy high-mileage hybrids, and offering a variety of rewards to those who leave their cars at home altogether.

Gary Erickson has demonstrated authentic leadership by aligning his actions with his conscience when he chose to back out of the sale at the last minute and follow his 'inner voice'. He trusted his own wisdom over the advice of the other highly experienced business people involved. Not only did he succeed in sustaining the revenue growth of the company over time, but Clif Bar continues to create innovative ways to be a company that values and takes actions towards sustaining the planet.

In retrospect, he could have been wrong about the future earning potential, but he would have still been right about himself. His level of self-awareness regarding his inner morals and values led him to maintain and grow one of the best-known outdoor food brands in the USA. Although authentic leadership in this example was clearly demonstrated by a major decision, that decision took years to carry through, and required a repeated focus on core values during that time. As a result, the company continues to thrive and lead other companies in social responsibility initiatives. Gary Erickson continues to lead the company in a way that is consistent with his core values system that places people and planet before personal profit.

Source: Cornerstones of Management (2011), Laurie Dickie and Carolyn Dickie, 2nd ed. 364, Tilde University Press, Australia.

Based on the case, answer the question.

*QUESTION*

In an age of rational decision-making, how do authentic leaders stay true to themselves when the 'numbers' of evidence presented by respected advisors suggest a different choice? Justify and elaborate your answer with ONE (1) point.

*15 marks*