What the world can learn from New Zealand Prime Minister Jacinda Ardern’s resignation

by PRUTHA CHAKRABORTY

“True leaders understand that leadership is not about them but about those they serve. It is not about exalting themselves but about lifting others up. That is why, when great leaders step down, they do not feel a loss of power, but a sense of fulfilment,” said British-born American author and leadership expert Simon Sinek.

In an unexpected announcement on January 19, New Zealand Prime Minister Jacinda Ardern said she is resigning from office. The 42-year-old politician said she has “no more in the tank” to lead the country. This was unexpected because she had a great run during the Covid-19 pandemic, having contained the spread of the virus much before other developed nations.

As tributes pour in for the outgoing prime minister, it is pertinent for the world to think — when should you step down from a leadership role and how to make this exit as gracious as possible?

Focus on the future

But first, let us take a look at other high-profile exits that shook the world.

Professor Shameem S, associate professor, Great Lakes Institute of Management — a private business school that grooms future leaders — says: “There have been several examples of leaders stepping down before their planned retirement in both the corporate and political sectors. In some cases, leaders quit due to ethical or legal issues that harmed the reputation of their organisations or countries.”

Some of these include Mark Hurd of HP, John Stumpf of Wells Fargo, Richard Nixon of the US, and Dilma Rousseff of Brazil.

“In other cases, leaders stepped down for reasons such as poor performance, an inability to achieve key objectives, or personal reasons, such as Jeff Immelt of General Electric, Theresa May of the UK, Angela Merkel of Germany, and Jacob Zuma of South Africa,” she adds.

But Ardern’s example is different, merely because she no longer wants to make sacrifices that her role entails, and impact her personally. “Witnessing Ardern’s openness about prioritising her own sanity before her responsibilities towards her country was indeed a breath of fresh air,” says Dr Paras, a life leadership coach. “No longer are leaders pushing their limits to the point where they no longer have anything else to give.”

Dr Paras hopes that others follow her suit. “Instead of being stuck in a role that’s limiting, leaders will now prioritise resigning to propel personal growth and the growth of the organisation they are associated with.”

But it is not as easy as it sounds. Most leaders continue to hang on; Bimal Rath, a distinguished HR leader who is the founder of Think Tank Services, tells us why.

“One key reason is the power and perks of a senior leadership role; these are difficult to give up,” Bimal explains. “Sometimes there is also insecurity or a lack of capability and willingness to re-invent oneself to doing something different. A senior leader once told me — ‘my job is to quickly find or groom someone to take on my role, so I can get on to doing bigger and better, but different’. It is not very often that one sees this sentiment in practice.”

The more self-aware leader knows their capabilities, interest and aspirations. And so, it becomes easier to let go at an appropriate time. Unfortunately, when one is in a powerful position, “the clarity on some of these aspects can get clouded”.

Causes and solutions

Prof Shameem highlights the imposter syndrome as a phenomenon that can affect even the most accomplished individuals in leadership roles. But what does that mean, we ask.

“This is characterised by self-doubt and feeling like a fraud despite great success,” she explains. “Leaders may step down due to this fear that their achievements were a result of luck or timing rather than their abilities.”

What are the other causes that can nudge leaders to step down?

Dr Paras informs: “The top five reasons that contribute to executives feeling drained include feelings of isolation (lack of effective leadership networking), multitasking (it leads to reduced mental capacity, which affects productivity, memory, and cognitive abilities), continuous partial attention (instead of focusing on the present, the nagging reminder of what to do next often leads to tight deadlines, rushed workflow, and chronic stress), allostatic load (no fixed hours) and power stress (leaders are constantly burdened with the success of the organisation).”

What is the solution to this?

Dr Paras says “don’t succumb to the hustle culture”.

“We live in a world that rewards busyness. In situations like these, understanding and identifying the signs of burnout is crucial. Be it physical or emotional signs, addressing each one of them is quintessential to making the right decisions that contribute to the overall growth of the leader and the company they are working with. A slow and indecisive leader is a liability to the company and their own reputation.”

Bimal says that leaders must believe that the “future generation of leaders coming after them have as much, if not more, capability and willingness to continue the graph”.

“In a business, the stage at business is in should decide when the next leader steps in. Triggers could be a different scale of business, new opportunities, geographical or portfolio expansion etc. Each of these should encourage a dialogue of whether someone else is more suited. No one leader is the best for all situations and stages of any organisation.”

The key is for a leader to exit their role gracefully and with dignity.