Leadership Economy by John C. Maxwell

I liked this article very much I literally copy paste from an email I received.

LEADERSHIP ECONOMY
By John C. Maxwell

In the Communist Manifesto, Karl Marx imagined anentire world based upon his theory of economics. He envisioned a"utopian society" where everyone received equal shares, and livedwithout competition.In Marx's communist system, government would enforce the utopianeconomy. On paper, the theory was great-in practice, as history hasshown, the economic model of communism was a disaster.

In Wealth of the Nations, Adam Smith popularized a different theory oneconomics: free enterprise. He laid the intellectual framework thatexplained the free market which still holds true today.Smith coined the expression "the invisible hand," which he used todemonstrate how self-interest guides the most efficient use of resourcesin a nation's economy. He argued that government efforts to promotesocial good are inferior compared to the unbridled market forces ofcommerce.Smith became the key influencer of Western economic theory. His ideasunderlie the present US economy-an economy based on supply and demand.His system didn't require a "big brother" government to ensure itssuccess. Instead, it was governed by the natural forces of a freemarket.

Supply and demand
I believe our influence operates on similar "supply and demand"principles as the free market economy. Leadership should not have to beforced on a group of people.Someone who leads by coercion or manipulation isn't a healthy leader.Healthy influence is based upon providing a resource that is needed by agroup.When you possess that resource, your influence goes up, just like astock price goes up when a company is providing goods or services thatare in demand.Leader's influence acts like capitalIf leadership, like the marketplace, functions according to the laws ofsupply and demand, then let us ponder what kind of capital we might havethat will increase our influence with others.

1. Intellectual capital
Resources in this category include: knowledge on a particular subject,insight and intuition into a given area, or data on a relevant issue.When someone puts their intellectual capital into a tangible form, itbecomes what attorneys call "intellectual property." If it is rare andrelevant, it will be valuable.How to accumulate intellectual capital(1) Study and know your business(2) Think more than others about your business(3) Think about solutions and share them with others

2. Social capital
Resources that represent social capital are the relationships andrespect a person has built up over the years within their network.Social capital comes from interfacing with others in a healthy way andadding value to them individually as well as professionally- especiallyin times of need.How to accumulate social capital(1) Value people and relationships(2) Look for the key to each person's life(3) Become a networker and connect people together(4) Seize every opportunity to add value to others

3. Experiential capital
Resources in this category include past experience, a good track recordaccompanied by a strong work ethic, integrity, and sound pastdecision-making. Experiential capital is akin to intellectual capital,but not identical. This capital is the intuitive wisdom that comes fromraw experience rather than the hard data or content from a book.How to accumulate experiential capital(1) Find your niche and dig in ... don't hop around;(2) Evaluate your experiences(3) Build on your experiences, don't camp on them

4. Talent capital
Resources that fall within talent capital are the abilities a person hasto pull off a desired goal. When an organization wants to produce a goodor render a service, it has need for specific talents-graphically ,technically, physically, organizationally- and the person with thosetalents carries the weight.While talent is never enough, it is a good place to start.How to accumulate talent capital(1) Discover your top three strengths(2) Stay in your strength zone(3) List ways your talent can add value to the team(4) Stretch your strength areas

5. Creativity capital
Resources that represent creativity capital are creative thinking; theaptitude to merge two current ideas into a new one; the capacity tocommunicate a thought originally and persuasively; and the ability toinvent new products, methods, services, or strategies.How to accumulate creativity capital...(1) Develop a creative think team(2) Continually ask: "Is there a better way to do what we are doing?"(3) Continually ask: "Is someone else doing it in a better way?"6. Passion capitalFinally, this capital is about the "pathos" of a person. Leaders withpassion capital carry weight because of their strong personality andcharisma. They bring to the table excitement, enthusiasm anddetermination; a fire that magnetically draws others to them. Passionenergizes talent, both individually and collectively.How to accumulate passion capital ...(1) Discover your strengths(2) Hang around passionate people(3) Give your passion away

Summary
Leadership revolves around the timeless principles of supply and demand.Your influence as a leader will be proportionate to the "leadership capital" you bring to an organization. Cultivate your leadership capital wisely, and you'll be flooded with opportunities to invest it in aleadership economy hungry for healthy leaders.

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