Character-Centered Leadership

Muhammad S.A.W as an Ethical

Role Model for CEOs

By: Rafik I. Beekun
Hafiz Muhammad Arslan
Ayesha Minhas
Eram Shahid
Yumna Minal
Wasimuddin
Introduction
Why character-centered leadership?
Character-centered leadership
Muhammads (S.A.W) character
Muhammads (S.A.W) character-centric style of leadership
Problems with transformational leadership
Muhammad (S.A.W) as a servant leader
Contributions of character-centered leadership to
management development
Implications for management development
Conclusion
CONTENTS
Purpose of the Article
The purpose of this paper is to examine the leadership style of
Muhammad (S.A.W) within a character-centric framework as a useful
alternative to the transactional, self-centered model and the value-
neutral transformational approach that currently permeate business
management. The author differentiates such perspectives from the
character-centered, moral approach to leadership suggested by the
Quran and modeled by Muhammad (p), and proposes that this approach
may be of practical use to CEOs.
Design/methodology/approach
A conceptual, comparative discussion of Muhammads leadership style
based on the primary Islamic sources is shown to have practical
implications for the leadership process in management.
ABSTRACT
Findings
The current malaise in business leadership can be resolved by a new focus
on character and on virtues.
Practical Implications
The character-centered, moral approach of Muhammad provides exemplars
of virtues and behaviors that, if emulated by CEOs, may help pre-empt
potentially self-serving, individualistic and narcissistic tendencies.
Originality/Value
The leadership model of Muhammad has been applied to a number of
arenas before, but this is the first attempt at explicating the Quranic
emphasis on the role-modeling aspects of his character (khuluqin azeem).
When fully expounded, it is likely to offer a more virtue-centric alternative
to transactional and/or transformational approaches to leadership and their
associated relativistic values.
ABSTRACT
The litany of unethical business actions resulting from poor
leadership at global companies such as Enron, Arthur Andersen and
numerous others in current world, the enactment of laws such as
Sarbanes-Oxley Act (2002) in the USA and the UK Bribery Act
(2010), the potential international bribery blacklisting of British
firms (Leigh, 2011) and the renewed global emphasis on anti-
bribery and corruption compliance activities (KPMG, 2011) suggest
that dominant leadership models, such as the transactional and the
transformational approaches to leadership, need to be rethought in
spite of the relative effectiveness of these approaches.
INTRODUCTION
Transactional
Transformational
Character-Centered
FAMOUS LEADERSHIP
APPROACHES
Transactional
Leaders are aware of the link
between the effort and reward
Leadership is responsive and its
basic orientation is dealing with
present issues
Leaders rely on standard forms of
inducement, reward, punishment and
sanction to control followers
Leaders motivate followers by
setting goals and promising rewards
for desired performance
Leadership depends on the leaders
power to reinforce subordinates for
their successful completion of the
bargain.

Transformational
Leaders arouse emotions in their
followers which motivates them to act
beyond the framework of what may be
described as exchange relations
Leadership is proactive and forms new
expectations in followers
Leaders create learning opportunities
for their followers and stimulate
followers to solve problems
Leaders possess good visioning,
rhetorical and management skills, to
develop strong emotional bonds with
followers
Leaders motivate followers to work for
goals that go beyond self-interest.

DIFFERENCE
Character-Centered leadership requires constant development
in both the skills of leading and the character of leadership.

Character-Centered leaders maintain the core of their
character while selecting and using the leadership skills
necessary for each specific situation.
CHARACTER-CENTERED
APPROACH
CHARACTER-CENTERED
LEADERSHIP CHARACTERISTICS



Courage:
Practicing the strength and character it takes to face and act on
meaningful challenges in support of people and purpose.
Compassion:
Caring for other people, their feelings, needs and dreams.
Creativity:
Distilling and developing ideas into innovative products and
services. Keeping an open mind and exploring new territory
constantly.
Clarity:
Refining, improving, analyzing, and covering details clearly,
openly, honestly, and with absolute integrity. Reducing ambiguity
and eliminating hidden agendas.
Centering:
Staying focused and grounded in the face of conflict, stress, and challenge.
THE STRENGTHS AND VALUES OF
CHARACTER CENTERED LEADERSHIP
Character-Centered
Leadership
Allah Tabaraka Wa Taala says:

And you (Muhammad) stand as an exalted standard of
character




Prophet Muhammad (S.A.W) said:

I was not sent except to perfect moral characters
AL-QURAN (68:4)
AL-HADITH
Khuluq: Character, natural disposition or innate temper.
Fitrah: Nature with which a person is born.
Ouswa-e-Hasana: An excellent example to follow
Hikmah: wisdom
IMPORTANT ARABIC TERMS
Verily the character of the Prophet of God was the
Quran
Ayesha (R.A)
Prophet Muhammad (S.A.W) modeled core virtues:
Truthfulness and integrity:
There are three signs of a hypocrite: when he speaks
he lies; when he makes a promise,he breaks it; and he is
trusted, he betrays his trust. (Muhammad (S.A.W)
Trustworthiness:
Amana- mans role of trustee on earth.
MUHAMMADS (S.A.W)
CHARACTER
Justice
Described by two words in Quran:
(1) Adal which means equity, and balance
(2) Qist means highest level of justice

Be just! For justice is nearest to piety.(Quran)
Benevolence (Ihsan)
Lo! Allah enjoins justice and kindness(16:90)
Humility
MUHAMMADS (S.A.W)
CHARACTER

Kindness:
If you show kindness to your servant while employing
him in some task, this will weigh heavily in your favor on
the day of judgment (Muhammad S.A.W)
Patience: Sabr
When we complained to Gods messenger (S.A.W) of
hunger and raised our clothes to show we were each
carrying a stone over the belly, Gods messenger raised
his clothes and showed that he had two stones on his
belly
MUHAMMADS (S.A.W)
CHARACTER
Servant leader develop people, focus on the needs of others rather then his
own needs, also provide vision, gain, credibility and trust from their
followers
MUHAMMAD (S.A.W) AS A
SERVANT LEADER
Service Before Self
Muhammad (S.A.W) stated that a leader of the nation is
their servant. A servant leader is not interested in obtaining
power, status or wealth. Neither wealth nor status attracted the
Prophet (S.A.W). Prophet (S.A.W) as said:
I am Gods servant, I eat like a servant and sit like a servant.

KEY ATTRIBUTES OF SERVANT
LEADER AS THEY RELATE TO
MUHAMMAD (S.A.W)
Listening as a means of affirmation
Muhammad (S.A.W) did not seek to impose himself on
others rather then first listening to the queries from his
followers, and then respond appropriately.
Creating trust
The servant leader is honest with others, focusing on their
needs and earning their trust. Muhammad (S.A.W)was known
as al-ameen, the trustworthy.
Focus on what is feasible to accomplish
The servant leader neither seeks to accomplish everything,
nor does he take the most difficult route to do it.
Following are the skills of intelligent leader:
1. Wise leaders remain focussed on their
higher purpose.
2. Wise leaders courageously tackle the most
tough and critical problems facing them.
3. Wise leaders seek advice from competent
and/or experienced people.
4. Wise leaders welcome feedback and
criticism graciously, and act upon them.



CONTRIBUTIONS OF CHARACTER
CENTERED LEADERSHIP TO
MANAGEMENT DEVELOPMENT
5. Wise leaders know when to bend the rules.
6. Wise leaders are grateful.
7. Wise leaders create shared experiences to
construct a new paradigm.
Three Approaches for Management Development
1. Modeling
2. Reflective Equilibrium
3. Ho-ren-so (Report, Contact and Consult)
IMPLICATIONS FOR
MANAGEMENT DEVELOPMENT
Doing what is right always comes down to the individual. It
begins with the most basic leadership skills, supported by the
organizational framework. It ends with no less than creating
a new corporate culture.
The CEO is responsible for setting the values and vision of
the organization.
People at organization are almost always tend to follow the
higher leadership.
WHY SO MUCH FOCUS ON
LEADERSHIP?
Character Becomes Contagious.
As people accept the leaders moral actions, it becomes the in thing for everyone to make
positive behavioral changes. Each one that changes infects another with the desire to change.
Growing behavioral change gradually makes it difficult for anyone to resist.
Employees Follow the Leader.
The moral actions of any leader have a direct effect on that leaders people. When a restaurant
manager does his job to the utmost of his ability, his actions encourage the wait staff to serve
customers to the best of their ability. Almost unconsciously, people tend to follow leadership.
Trust and Confidence Grow.
Employees and customers begin to have confidence in your business. They begin to consider
it trustworthy a business that wont let them down. J.C. Penney said this about his empire of
stores:
Your Business Gains a Competitive Edge.
The public wants businesses and leaders to exercise character. People often choose or reject
businesses based on values and actions. When buying a used car, they want to know they are
dealing with principled salespeople, not the stereotypical shyster. Your business gains a
competitive edge over others when your leadership builds and models character.

THE IMPACTS OF CHARACTER-
CENTERED LEADERSHIP
Whats in it for us?
1. Is there anything superhuman, impractical or undoable?
2. Can CEOs follow these things in daily work life?

What will you:
1. Start doing?
2. Stop doing?
3. Continue doing?
IMPORTANT QUESTIONS