Gospel According to GaaS (9/25): Leadership as Pillar for GaaS

Where two or three are gathered, a leader is needed.

Leadership is at the heart of the Proprietary Investment Company (PIC) business model. While other GaaS pillars, such as Equitable Representation, Strategy-Led Operational Oversight, a Culture of Consequence, and Market-Driven Investment, are essential, none can function effectively without strong leadership. Leadership stands above even capital, which is crucial for transactions.

I’ve encountered countless aspiring entrepreneurs who attribute their unrealised dreams to a lack of capital. For such individuals, I often refrain from engaging because they overlook the most critical aspect of entrepreneurship: leadership. Without it, their ideas struggle to attract capital, and even if capital is secured, there is a heightened risk of losing the investment.

I’ve had the privilege of mentoring numerous individuals on their entrepreneurial journeys. Two stand out in particular. One, a remarkable woman, has earned my respect many times over. She approached me with an idea and persuaded me to support her without accepting equity investment. Instead, we agreed on a stake, and she prioritised my referrals and recommendations. Today, she has built a thriving business and employs an exceptional team. Just last week, as I grappled with meeting numerous holiday obligations, I received a dividend from her company.

From my experience with PICs and similar businesses, three critical assets drive a company’s success:

1. Balance Sheet: This includes the assets the company uses to create value and the funding through liabilities and equity used to acquire these assets.
2. Goodwill (Brand): This refers to the reputation a company has cultivated through its demonstrated capabilities in the marketplace. Goodwill carries immense marketing value, often ensuring top-of-mind recognition within an industry. For instance, when people think of phones, brands like Apple and Samsung come to mind — they are the “verb” of their industry.
3. Leadership: Leadership is the most valuable component of any business. It drives a brand's goodwill by delivering on a company’s capabilities, especially in this age of cyber capital. Moreover, leadership attracts and manages the capital represented by the balance sheet.

Consider Elon Musk as an illustration. Through leadership and foresight, he has attracted substantial capital and built capabilities within his companies that are reshaping industries for the future. While leadership manifests in various forms, its core definition remains the ability to persuade, influence, or compel others to support an idea and commit resources to achieve it. GaaS only becomes relevant when two or more people collaborate toward a shared goal, and such collaboration is sustainable only under effective leadership. Once again, purpose drives this collaboration.

Leadership is a vast topic, and while this article cannot cover it exhaustively, I’ll leave you with the following highlights gleaned from practising GaaS:

1. Leadership Is Both a Gift and a Service: Many view leadership as a divine gift, but I’ve found this narrative flawed. Leadership can be learned and honed throughout one’s lifetime. The best way to learn is to step forward and lead — a daunting but essential step. The learning curve may initially be steep, but it accelerates with experience. If you aspire to lead, the only way forward is to take on leadership roles and responsibilities.
2. Leadership Opportunities Are Everywhere: Don’t wait for grand opportunities. Every role in an organisation or community offers a chance to lead. A cleaner, for instance, might innovate an office-sequencing system that reduces cleaning costs while enhancing workplace hygiene. Leadership, whether effective or lacking, is always evident. Excuses may justify incompetence, but effective leadership speaks for itself.
3. The Right Leaders Don’t Fail: This is why people bet on the right leaders. They possess an acute understanding of their capabilities, the ability to complement weaknesses, and a knack for reading situations and opportunities. Effective leaders achieve their objectives against all odds, even if they lose a battle. As sure as day, they will win the war. This explains why figures like Elon Musk earn “insane” bonuses; they deliver results that align them closely with political leaders in their impact.
4. The Secret Sauce of Leadership: Each leader’s unique source of influence distinguishes them. Whether it’s relationships, political proximity, ownership, or capital, this “secret sauce” gives them an edge over equally capable rivals. At the highest levels, leadership is a winner-takes-all game. Identify and cultivate your unique source of leadership to stand out.
5. Be a Patient Lieutenant: Leadership is often a lonely journey. As you grow, you may outpace your current circumstances and relationships, gravitating toward those who share your ambition. Leadership’s transience makes it vital to learn from others, especially as a lieutenant to a leader. Observe, learn, and refine your approach. A famous image comes to mind: Abiola, Abacha, Al-Mustapha, and a young Bola Ahmed Tinubu standing behind Abiola. Today, that lieutenant is Nigeria’s President. “Be patient; you will be King.”

Leadership is my favourite topic, and I am a lifelong student of its principles. The more I learn, the more I realise how much remains to be uncovered. Leadership is a journey, one I am eager to continue.

Happy reading.