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Chapter 1: What Does It Mean to Be a Leader?

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YOUR LEADERSHIP CHALLENGE After reading this chapter, you should be able to:

• Understand the full meaning of leadership and see the leadership potential in yourself and others. • Recognize and facilitate the six fundamental transformations in today’s organizations and leaders. • Identify the primary reasons for leadership derailment and the new paradigm skills that can help you

avoid it.

• Recognize the traditional functions of management and the fundamental differences between leadership and management.

• Appreciate the crucial importance of providing direction, alignment, relationships, personal qualities, and outcomes.

• Explain how leadership has evolved and how historical approaches apply to the practice of leadership today.

CHAPTER OUTLINE 4 Why We Need Leadership

8 The New Reality for Leaders

14 How Leadership Differs from Management

17 Evolving Theories of Leadership

21 Leadership Can Be Learned

24 Mastering the Art and Science of Leadership

24 Organization of This Book

In the Lead

13 Pope Francis, Roman Catholic Church

23 Google

Leader’s Self-Insight

11 Your Learning Style: Using Multiple Intelligences

17 Your Leadership Potential

22 Are You on a Fast Track to Nowhere?

Leader’s Bookshelf

7 My Life in Leadership: The Journey and Lessons Learned Along the Way

Leadership at Work

27 Leadership Right–Wrong

Leadership Development: Cases for Analysis

29 Sales Engineering Division

29 The Marshall Plan

A braham Lincoln had less leadership experience than any previous president, but when historians rank the ‘‘greatest presidents,’’ Lincoln frequently tops the list. Interest in Lincoln’s leadership swelled with the release of Steven

Spielberg’s historical film Lincoln, which was a huge critical and commercial suc- cess, grossing more than $250 million at the box office and garnering 12 Academy Award nominations. ‘‘Lincoln’s presidency is a big, well-lit classroom for business leaders seeking to build successful, enduring organizations,’’ said Howard Schultz, CEO of Starbucks. In this era of disconnected and often morally bankrupt leaders, it is no wonder the skills, strengths, and character of Lincoln have struck a chord. Lincoln once provoked an opponent to tears by using his expert communication skills to mimic and ridicule his rival. Soon afterward, the man who would later become the 16th president of the United States felt disappointed and ashamed of his own behavior and sought out his opponent to offer an apology. Lincoln took this as a valuable lesson about channeling his emotions, practicing empathy, and using his abilities to promote good. From then on, Lincoln applied his superb leadership and communication skills to serve the higher interests of the American people rather than his own goals and ego. His ability to control his emotions and stay committed

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to a vision even under intense hardship, his commitment to go into the field and establish connections with soldiers and the general public, and his willingness to lis- ten to different points of view and to share credit for successes and take blame for failures all tap into a deep longing within people for genuine leadership.1

The public trust in leaders may be at an all-time low. Referring to the dire eco- nomic situation that followed the ethical and financial problems in the mortgage and finance industries, David Rothkopf wrote in the Washington Post, ‘‘This is not just a global economic crisis. It is a global leadership crisis.’’2

1-1 WHY WE NEED LEADERSHIP Many of us think of leadership in a way similar to what U.S. Supreme Court Justice Potter Stewart said about obscenity in reviewing a 1964 pornography case: we may not be able to define it but ‘‘we know it when we see it.’’3 People can clearly see leadership in Abraham Lincoln, but many are having a hard time seeing it in current political, business, military, and even religious leaders. General David Petraeus, one of the most decorated military leaders of his generation, stepped down as director of the Central Intelligence Agency after the FBI inadvertently discovered he had an extramarital affair with his biographer and began investigating for potential leaks of classified information. The British Broadcasting Corporation (BBC) was tarnished by allegations that managers covered up years of sexual abuse by a well-known reporter.4 Senator Chuck Grassley recently probed the financial records of six well- known televangelists, including Creflo Dollar and Kenneth Copeland, after reports that tax-exempt donations were financing lavish lifestyles for the religious leaders, including mansions, Rolls Royce cars, and private jets.5 Nearly every month brings a new report of a business leader somewhere lying to, misleading, or cheating employees, customers, or the government. No wonder survey after survey shows that confidence in leaders is sinking and suspicion and distrust are rising.6

Yet there are good leaders working in every organization, large and small. In fact, quality leadership is all around us every day, in all facets of our lives—our fam- ilies, schools, communities, social clubs, and volunteer organizations, as well as in the world of business, sports, religion, government, and the military. Without good leadership, our institutions and society would fall apart.

Before we can examine what makes an effective leader, we need to know what leadership means. Scholars and other writers have offered hundreds of definitions of the term leadership, prompting James McGregor Burns to conclude that leadership ‘‘is one of the most observed and least understood phenomena on earth.’’7 Defining leadership has been a complex and elusive problem largely because the nature of leadership itself is complex. Some have even suggested that leadership is nothing more than a romantic myth, perhaps based on the false hope that someone will come along and solve our problems by sheer force of will.8

There is some evidence that people do pin their hopes on leaders in ways that are not always realistic. Think about how some struggling companies recruit well- known, charismatic CEOs and invest tremendous hopes in them, only to find that their problems actually get worse.9 For example, Yahoo hired former Autodesk CEO Carol Bartz in 2009 with high hopes that the star leader could turn the strug- gling company around, only to ask her to leave a couple of years later as Yahoo’s fortunes continued to slide. In mid-2012, Yahoo hired former Google executive Marissa Mayer as the fifth CEO in five years.

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Particularly when times are tough, people often look to a grand, charismatic type of leader to alleviate fear and uncertainty. Think of how Barack Obama sailed to the U.S. presidency in 2008 based largely on his charisma and the ability to make people feel hopeful in a time of uncertainty. In recent years, the romantic or heroic view of leadership has been challenged.10 Much progress has been made in under- standing the essential nature of leadership as a real and powerful influence in organ- izations and societies.

1-1a Defining Leadership Leadership studies are an evolving discipline, and the concept of leadership will con- tinue to develop. For the purpose of this book, we will focus on a single definition that delineates the essential elements of the leadership process: Leadership is an influ- ence relationship among leaders and followers who intend real changes and out- comes that reflect their shared purposes.11

Exhibit 1.1 summarizes the key elements in this definition. Leadership involves influence; it occurs among people; those people intentionally desire significant changes; and the changes reflect purposes shared by leaders and followers. Influence means that the relationship among people is not passive; however, also inherent in this definition is the concept that influence is multidirectional and noncoercive. The basic cultural values in North America make it easiest to think of leadership as something a leader does to a follower.12 However, leadership is reciprocal. In most organizations, superi- ors influence subordinates, but subordinates also influence superiors. The people involved in the relationship want substantive changes—leadership involves creating change, not maintaining the status quo. In addition, the changes sought are not dictated by leaders but reflect purposes that leaders and followers share. Moreover, change is toward an outcome that both the leader and the followers want, a desired future or shared purpose that motivates them toward this more preferable outcome. An important aspect of leadership is influencing others to come together around a common vision. Thus, leadership involves the influence of people to bring about change toward a desirable future.

EXHIBIT 1.1 What Leadership Involves

Leader

Change Shared purpose

Followers Personal

responsibility and integrity

Influence Intention

Leadership an influence relationship among leaders and followers who intend real changes and outcomes that reflect their shared purposes

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Also, leadership is a people activity and is distinct from administrative paper- work or planning activities. Leadership occurs among people; it is not something done to people. Since leadership involves people, there must be followers. An indi- vidual performer who achieves excellence as a scientist, musician, athlete, or wood- carver may be a leader in her field of expertise but is not a leader as defined in this book unless followers are involved. Followers are an important part of the leader- ship process, and all leaders are sometimes followers as well. Good leaders know how to follow, and they set an example for others. The issue of intention or will means that people—leader and followers—are actively involved in the pursuit of change. Each person takes personal responsibility to achieve the desired future.

One stereotype is that leaders are somehow different, that they are above others; however, in reality, the qualities needed for effective leadership are the same as those needed to be an effective follower.13 Effective followers think for themselves and carry out assignments with energy and enthusiasm. They are committed to some- thing outside their own self-interest, and they have the courage to stand up for what they believe. Good followers are not ‘‘yes people’’ who blindly follow a leader. Effective leaders and effective followers may sometimes be the same people, playing different roles at different times. At its best, leadership is shared among leaders and followers, with everyone fully engaged and accepting higher levels of responsibility.

1-1b Everyday Leadership Using this definition of leadership makes clear that leadership can come from any- one. When we stop equating leadership with greatness and public visibility, it becomes easier to see our own opportunities for leadership and recognize the leader- ship of people we interact with every day. Leaders come in all shapes and sizes, and many true leaders are working behind the scenes. Leadership that has big outcomes often starts small.

• Wendy Kopp was a senior at Princeton University when she first came up with the idea of a sort of ‘‘Peace Corps for teachers,’’ a national organization that would recruit recent college graduates to commit to teach for two years at some of America’s toughest public schools. One of her Princeton professors admits he called her ‘‘deranged’’ when she proposed the idea to him. Yet Teach for Amer- ica, the organization Kopp started, became one of the most respected educa- tional initiatives in the United States. As the organization has grown larger, it has come under attack, but most observers agree it has changed education for the better and it continues to harness the idealism of young college graduates as a force for good.14

• Clinical psychologist Barbara Van Dahlen was working primarily with children in the Washington, D.C., area when she became concerned about the effects of the wars in Iraq and Afghanistan on the mental health of U.S. soldiers, veterans, and their families. Van Dahlen founded Give an Hour to provide free services that give help and hope to returning service members. The organization now has a national network of more than 6,100 mental health professionals who volunteer their time. Give an Hour also works with other organizations, such as Bare the Burden, a nonprofit organization that creates an online community for veterans to heal by connecting with others.15

• During his five years working as a car salesman, Robert Chambers was dis- gusted by how some dealers and finance institutions preyed on low-income cus- tomers. After he retired from a varied career, the 62-year-old electrical engineer

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decided to do something about it. He founded More Than Wheels, which helps low-income people buy new, base-model cars at low prices and on good loan terms. With branches in New Hampshire, Vermont, and Maine, More Than Wheels has negotiated price and extended warranty deals with a dozen or so auto dealers and worked with banks to provide low interest rates. More Than Wheels guarantees the loan and then works with clients to help them manage their finances, improve their credit scores, and improve their future.16

There are opportunities for leadership all around us that involve influence and change toward a desired goal or outcome. As further illustrated in the Leader’s Bookshelf, widely known and highly respected leaders often begin their leadership journeys in small ways. The leaders of tomorrow’s organizations will come from anywhere and everywhere, just as they always have. Do you have the capacity and commitment required for taking a leadership role in your school, community, or workplace? You can start now, wherever you are, to practice leadership in your own life. Leadership is an everyday way of acting and thinking that has little to do with a title or formal position in an organization. As we will discuss in the following section, business leaders need to understand this tenet more than ever in the world of the twenty-first century.

LEADER’S BOOKSHELF My Life in Leadership: The Journey and Lessons Learned Along the Way

by Frances Hesselbein

What college dropout transformed one of the world’s largest volunteer organiza- tions, was named Fortune magazine’s ‘‘Best Nonprofit Manager in America,’’ and received America’s highest civilian honor, the Presidential Medal of Freedom? The answer: Frances Hesselbein, who began her amazing leadership journey as a somewhat reluctant volunteer leader of Girl Scout Troup 17 in Johnstown, Penn- sylvania, when she was in her early twen- ties. In her autobiography, My Life in Leadership, Hesselbein, now in her late 90s, shares what she has learned about leadership throughout her long career.

‘‘LEADERSHIP IS A MATTER OF HOW TO BE, NOT HOW TO DO’’ Hesselbein argues that ‘‘it is the quality and character of the leader that deter- mines performance.’’ For her, leader- ship is about serving others. From her beginning as a volunteer Scout leader, she eventually became CEO of the Girl Scouts of the USA, and later was found- ing president of famed management scholar Peter Drucker’s Leader to

Leader Institute (she still serves as CEO of the organization, recently renamed the Frances Hesselbein Leadership Insti- tute). Here are a few of the key lessons Hesselbein has learned along the way:

• Have a Clear Mission That Everyone Can Support. As soon as she became CEO of the national Girl Scouts, Hes- selbein took a close look at the mis- sion of the organization and began asking leaders at all levels, as well as girls themselves, what they really val- ued, wanted, and needed. ‘‘Because we included everyone, it became theirs, not ours,’’ she says. Hesselbein calls the mission, vision, and values ‘‘the soul of the organization,’’ which should be central ‘‘even as we aban- don the vestiges of the past that spell irrelevance in the future.’’

• Be Inclusive. Hesselbein also ditched the hierarchy, sharing information and power with leaders at all levels from the beginning. A concept she called ‘‘circular management,’’ put the leader in the middle of the

organizational chart rather than at the top of a hierarchy. Everyone was a member of a team, and there were no superiors and subordinates. Being inclusive develops leaders at every level and increases the energy and creativity of the entire organization.

• Make Learning a Top Priority. Organizations have to keep changing and adapting when it’s necessary. ‘‘The first item in your budget should be learning, education, and develop- ment of your people,’’ she says.

THE GREAT ADVENTURE Hesselbein tells her story in Learning to Lead as a great adventure that she enjoyed every step of the way. It is a story told in a very personal way, but one that is packed with observations and reflections that are as relevant to today’s leaders as when Hesselbein first began her long leadership journey as a volunteer Girl Scout leader.

Source: Learning to Lead, by Frances Hesselbein, is published by Jossey-Bass.

NEW LEADER ACTION MEMO As a leader, you can recognize opportunities for leadership and act to influence others and bring about changes for a better future.

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1-2 THE NEW REALITY FOR LEADERS Social media. Globalization. Mobile commerce. Geopolitical wars. Renewable tech- nologies and smart machines. Outsourcing. Climate change and resource scarcity. Telecommuting and virtual teams. Cybercrime. Redistribution of economic power. Massive changes in the world mean today’s leaders are facing challenges they couldn’t even imagine just a few years ago.17 In a survey by the Center for Creative Leadership, 84 percent of leaders surveyed say the definition of effective leadership changed significantly within the first few years of the twenty-first century.18 And that was even before social and mobile technologies began reshaping everyday life and work. Social connectedness and mobility are becoming central aspects of every leader’s job.

Some historians and other scholars believe our world is undergoing a transfor- mation more profound and far-reaching than any experienced since the dawn of the modern age and the Industrial Revolution more than 500 years ago. Today’s leaders operate in a world where little is certain, the pace is relentless, and everything is more complex. This transformation requires a transition from a traditional to a new leadership paradigm, as outlined in Exhibit 1.2.19 A paradigm is a shared mindset that represents a fundamental way of thinking about, perceiving, and understanding the world.

Although many leaders are still operating from an old-paradigm mindset, as out- lined in the first column of Exhibit 1.2, they are increasingly ineffective. Successful leaders will respond to the new reality outlined in the second column of the exhibit.

EXHIBIT 1.2 The New Reality for Leaders

Old Paradigm Leader

New Paradigm Leader

Stabilizer Change Manager

Diversity Avoider

Diversity Promoter

Hero Humble

Competitor Collaborator

Controller Facilitator

From To

Paradigm a shared mindset that repre- sents a fundamental way of thinking about, perceiving, and understanding the world

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1-2a From Stabilizer to Change Manager In the past, many leaders assumed that if they could just keep things running on a steady, even keel, the organization would be successful. Yet today’s world is in constant motion, and nothing seems certain anymore. If leaders still had an illusion of stability at the dawn of the twenty-first century, it is surely shattered by now. Consider the following recent events:

• A powerful earthquake in Japan triggered massive tsunami waves that damaged the nuclear reactors at the Fukushima Daiichi power plant and led to the shut- down of numerous companies, creating supply chain disruptions for manufac- turers around the world. In the wake of the disaster, managers at Tokyo Electric Power Company (Tepco) were criticized for failing to act quickly enough to cool the reactors at Fukushima. Trying to protect their investment, they hesitated to use seawater, which they knew could damage the reactors, leading to the second-largest nuclear disaster in history.20

• In 2015, the Volkswagen Group, one of the largest car manufacturers in the world and known as maker of ‘‘the people’s car,’’ was discovered to have used software designed to cheat U.S. emissions tests, affecting 11 million vehicles worldwide. Actual exhaust emissions turned out to be up to 40 times higher than the emission tests revealed. VW’s emissions scandal cast doubt on the repu- tations and emissions validity of other auto manufacturers such as Mercedes and BMW. Germany’s national economy and auto suppliers worldwide will likely be hurt as VW sales decline.21

• Greece was in a deep recession in 2015 due to huge debts to the European Union (EU). Sharp cutbacks in government spending had decimated personal incomes and businesses in the region. Ireland and Spain faced similar debt prob- lems previously, causing talk of a possible breakup of the euro system (the single currency adopted by EU countries), which would deal a severe blow to the global financial system. Leaders of multinational firms have to take steps to pro- tect themselves, as well as consider what they will do in the event that a return to national currencies requires a rethinking of everything from how to expand operations to how to pick suppliers or pay employees.22

Most leaders, whether in business, politics, the military, education, social services, the arts, or the world of sports, recognize that trying to maintain stability in a world of such unexpected and far-reaching change is a losing battle. ‘‘You have to be able to react very quickly,’’ said Ellen Kullman, recently retired CEO of DuPont, referring to the impact of events such as the Japanese tsunami and the EU financial crisis. ‘‘And the world is so connected that the feedback loops are more intense.’’23

Today’s best leaders accept the inevitability of change and crisis and tap into them as potential sources of energy and self-renewal. Adaptability is the watchword of the day.

1-2b From Controller to Facilitator Leaders in powerful positions once believed strict control was needed for the organi- zation to function efficiently and effectively. Rigid organizational hierarchies, struc- tured jobs and work processes, and detailed, inviolate procedures let everyone know that those at the top had power and those at the bottom had none.

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Today, the old assumptions about the distribution of power are no longer valid. An emphasis on control and rigidity serves to squelch motivation, innovation, and morale rather than produce desired results. Effective leaders share power rather than hoard it and find ways to increase an organization’s brainpower by getting everyone in the organization involved and committed. Rather than being a controller, the leader is a facilitator who helps people do and be their best by removing obstacles to performance, getting people what they need, providing learning opportunities, and offering support and feedback.

One reason for this is that the financial basis of today’s economy is becoming information rather than the tangible assets of land, buildings, and machines. This means human capital is becoming more important than financial capital, which increases the power of employees. ‘‘Ideas are now more important than materials,’’ as former Israeli president Shimon Peres once put it.24 When all the organization needed was workers to run machines eight hours a day, traditional command- and-control systems generally worked quite well, but success today depends on the intellectual capacity of all employees. One of the leader’s most challenging jobs is to enable people to embrace and use their power effectively.25

When he took over as CEO of India’s struggling HCL Technologies in 2005, Vineet Nayar took a huge risk that proved to be a highly effective route to true employee empowerment and increasing revenues. His revolutionary move was to organize the company around the principle of ‘‘employees first, customers second.’’ Nayar created an open online forum where people could post questions and leaders would answer. Employees were overjoyed that leaders were willing to acknowledge the problems in the company, and they began proposing solutions. This began the transfer of power and responsibility for solving problems from top executives to employees. In the new HCL, the job of leaders is to serve employees.26 Nayar, who served as CEO until 2013, wrote a book titled Employees First, Customers Second: Turning Conventional Management Upside Down to explain how leaders can tap into the power of this unconventional approach.27

1-2c From Competitor to Collaborator Social media has ‘‘put connectivity on steroids,’’ blurring and sometimes obliterating boundaries within and between organizations.28 In a hyperconnected, networked age, collaboration becomes more important than competition. Successful leaders harness and make the most of ideas, talent, and resources from across boundaries of all kinds. Although some companies still encourage internal competition and aggres- siveness, most successful leaders stress teamwork, compromise, and cooperation. Self-directed teams and other forms of horizontal collaboration spread knowledge and information throughout the organization.

Effective leaders also work collaboratively with suppliers, customers, govern- ments, universities, and other organizations. There is a growing trend within compa- nies to think of themselves as teams that create value jointly rather than as autonomous entities in competition with all others.

Collaboration presents greater leadership challenges than did the old concept of competition. Leaders first have to develop their own collaborative mindset and then create an environment of teamwork and community that fosters collaboration and mutual support. They learn to keep the lines of communication open and use influ- ence rather than wielding their authority to quell harmful politicking, get buy-in on important matters, and move things forward.29

NEW LEADER ACTION MEMO Go to Leader’s Self-Insight 1.1 to learn about your own ‘‘intelligence’’ for dealing with collaboration and with the other new realities facing leaders.

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1-2d From Diversity Avoider to Diversity Promoter Many of today’s organizations were built on assumptions of uniformity, separation, and specialization. People who think alike, act alike, and have similar job skills are grouped into a department, such as accounting or manufacturing, separate from other departments. Homogenous groups find it easy to get along, communicate, and understand one another. The uniform thinking that arises, however, can be a disas- ter in a world becoming more multinational and diverse.

LEADER’S SELF-INSIGHT 1.1

Your Learning Style: Using Multiple Intelligences

Instructions: Multiple-intelligence theory suggests that there are several different ways of learning about things in a topsy-turvy world; hence there are multiple ‘‘intelligences,’’ of which five are interpersonal (learn via interactions with others), intrapersonal (own inner states), logical–mathematical (rationality and logic), verbal–linguistic (words and language), and musical (sounds, tonal patterns, and rhythms). Most peo- ple prefer one or two of the intelligences as a way of learning, yet each person has the potential to develop skills in each of the intelligences.

The following items will help you identify the forms of intelligence that you tend to use or enjoy most, as well as the forms that you use less. Please check each item below as Mostly False or Mostly True for you.

Mostly False

Mostly True

1. I like to work with and solve complex problems. ______ ______

2. I recently wrote something that I am especially proud of. ______ ______

3. I have three or more friends. ______ ______ 4. I like to learn about myself through

personality tests. ______ ______ 5. I frequently listen to music on the

radio or iPod-type player. ______ ______ 6. Math and science were among my

favorite subjects. ______ ______ 7. Language and social studies were

among my favorite subjects. ______ ______ 8. I am frequently involved in social

activities. ______ ______ 9. I have or would like to attend

personal growth seminars. ______ ______ 10. I notice if a melody is out of tune or

off key. ______ ______ 11. I am good at problem solving that

requires logical thinking. ______ ______ 12. My conversations frequently include

things I’ve read or heard about. ______ ______

13. When among strangers, I easily find someone to talk to. ______ ______

14. I spend time alone meditating, reflecting, or thinking. ______ ______

15. After hearing a tune once or twice, I am able to sing it back with some accuracy. ______ ______

Scoring and Interpretation Count the number of items checked Mostly True that repre- sent each of the five intelligences as indicated below.

Questions 1, 6, 11: Logical–mathematical intelligence. # Mostly True ¼ ________. Questions 2, 7, 12: Verbal–linguistic intelligence. # Mostly True ¼ ________. Questions 3, 8, 13: Interpersonal intelligence. # Mostly True ¼ ________. Questions 4, 9, 14: Intrapersonal intelligence. # Mostly True ¼ ________. Questions 5, 10, 15: Musical intelligence. # Mostly True ¼ ________.

Educational institutions tend to stress the logical– mathematical and verbal–linguistic forms of learning. How do your intelligences align with the changes taking place in the world? Would you rather rely on using one intelligence in depth or develop multiple intelligences? Any intelligence above for which you received a score of 3 is a major source of learning for you, and a score of zero means you may not use it at all. How do your intelligences fit your career plans and your aspirations for the type of leader you want to be?

Sources: Based on Kirsi Tirri, Petri Nokelainen, and Martin Ubani, ‘‘Concep- tual Definition and Empirical Validation of the Spiritual Sensitivity Scale,’’ Journal of Empirical Theology 19 (2006), pp. 37–62; and David Lazear, ‘‘Seven Ways of Knowing: Teaching for Multiple Intelligences,’’ (Palatine, IL: IRI/Skylight Publishing, 1991).

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Bringing diversity into the organization is the way to attract the best human tal- ent and develop an organizational mindset broad enough to thrive in a multina- tional world. Carlos Ghosn, CEO of Nissan, says one reason his company has been able to cope with change and crises better than some of its competitors is its highly diverse culture and workforce.30 Two business school graduates in their twenties discovered the importance of diversity when they started a specialized advertising firm. They worked hard, and as the firm grew, they hired more people just like themselves—bright, young, intense college graduates who were committed and hard working. The firm grew to about 20 employees over two and a half years, but the expected profits never materialized. The two entrepreneurs could never get a handle on what was wrong, and the firm slid into bankruptcy. Convinced the idea was still valid, they started over, but with a new philosophy. They sought employees with different ages, values, ethnic backgrounds, and work experience. People had differ- ent styles, yet the organization seemed to work better. People played different roles, and the diverse experiences of the group enabled the firm to respond to unique situa- tions and handle a variety of organizational and personal needs. The advertising firm is growing again, and this time it is also making a profit.

1-2e From Hero to Humble Another shift is the move from celebrating the ‘‘leader-as-hero’’ to recognizing the hard-working behind-the-scenes leader who quietly builds a strong, enduring com- pany by supporting and developing others rather than touting his or her own abil- ities and successes.31 Recall from this chapter’s opening example how Abraham Lincoln made an intentional choice early in his political career to use his abilities to serve the interests of the American people rather than to feed his own ego. This chapter’s Consider This box presents 10 commandments based on 1950s western film star Gene Autry’s Cowboy Code that can be regarded as applicable to new- paradigm leaders even today.

Consider This! Should Leaders Live by the Cowboy Code?

1. A cowboy never takes unfair advantage—even of an enemy.

2. A cowboy never goes back on his word or betrays a trust.

3. A cowboy always tells the truth.

4. A cowboy is kind and gentle with children, the elderly, and animals.

5. A cowboy is free from racial or religious prejudice.

6. A cowboy is always helpful and lends a hand when anyone is in trouble.

7. A cowboy is a good worker.

8. A cowboy stays clean in thought, speech, action, and personal habits.

9. A cowboy respects womanhood, parents, and the laws of his nation.

10. A cowboy is a patriot to his country.

Source: Gene Autry’s Cowboy Commandments are reported, with some variations in wording, in multiple sources.

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One reason for the shift from hero to humble is that it is less and less realistic for an individual leader to meet all the challenges a team or organization faces in a com- plex and rapidly changing world. Another is that ambitious, highly self-confident, charismatic leaders have been at the forefront of some of the ethical scandals and business failures of recent years. The hero leader may make more risky and daring decisions, often without considering the greater good, whereas a humble leader will seek advice and take time to think through the possible consequences of his or her actions.32 A recent study from the W.P. Carey School of Business at Arizona State University found that the most effective CEOs, for example, were those who led with humility by empowering and appreciating their employees, being open to feedback, and putting the greater good above their own self-interest.33

Jim Collins, author of Good to Great and Great by Choice, calls this new breed ‘‘Level 5 leaders.’’34 In contrast to the view of great leaders as larger-than-life per- sonalities with strong egos and big ambitions, Level 5 leaders often seem shy and unpretentious and have no need to be in the limelight. They are more concerned with the success of the team or company than with their own success.

These leaders are characterized by an almost complete lack of ego, coupled with a fierce resolve to do what is best for the organization. They accept full responsibil- ity for mistakes, poor results, or failures, but they typically give credit for successes to other people. One corporate example is Sir Terry Leahy, who recently retired after more than a decade leading Britain’s Tesco. That is a long and successful tenure for a leader whom most people know little about. Leahy didn’t court personal publicity, much to the chagrin of journalists, and he put his energies into promoting Tesco and its employees rather than himself.35 Although most research regarding the new type of leader has been on corporate CEOs like Sir Terry Leahy, it is important to remember that new-paradigm or Level 5 leaders are in all positions in all types of organizations. Perhaps not surprisingly, Pope Francis is an excellent example of a humble leader. He chose to be named after St. Francis of Assisi to illus- trate that humility and service come first. But the popular pope also illustrates many other qualities of the new-paradigm leader.

IN THE LEAD Pope Francis, Roman Catholic Church He was chosen as Time magazine’s 2013 ‘‘Person of the Year,’’ is a leader in Google searches, has tripled attendance at papal events with his humility, empathy, and commitment to the disenfranchised, and created a huge stir when he visited the United States for the first time in September 2015. The leader considered ‘‘everyone’s pope’’ has become a celebrity among managers, leadership coaches, entrepreneurs, and CEOs, too.

In a short period of time, Francis has brought about tremendous change and revival in a huge, global organization that has suffered devastating scandals in recent years and, not so long ago, seemed on the verge of becoming irrelevant. He did it by using not only his personal charisma and character but also leadership skills that anyone can apply. For example, Francis doesn’t fear change and is willing to take risks. He has reached out to atheists and agnostics, proclaimed a year of jubilee for women who have had abortions but have since chosen to reflect on the Church’s teachings on the subject, and declared that God has redeemed all of us, not just Catholics. Francis has also demonstrated the importance

Humility is not

weakness.

Humility has its

effect across levels

of an organization

in an empowered

uplifting way. You

can’t browbeat

people into

performance. Angelo Kinicki, Management Professor, Author, and Consultant

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Once a relatively obscure Jesuit cardinal, Pope Francis has become one of the most recognized—and some believe most effective—leaders in the world. Within two years, he has brought significant positive changes, including economic reforms at the Vatican and evolving discussions about social issues. He shows that, rather than playing it safe or being blinded by fear of failure, leaders can bring fresh perspectives to problems and apply their skills to achieve a higher purpose.

1-3 HOW LEADERSHIP DIFFERS FROM MANAGEMENT Management can be defined as the attainment of organizational goals in an effective and efficient manner through planning, organizing, staffing, directing, and control- ling organizational resources. So, what is it that distinguishes the process of leader- ship from that of management? Managers and leaders are not inherently different types of people. There are managers at all hierarchical levels who are also good leaders, and many people can develop the qualities needed for effective leadership and management. Both are essential in organizations and must be integrated effec- tively to lead to high performance.37 That is, leadership cannot replace manage- ment; the two have to go hand-in-hand.

Exhibit 1.3 compares management to leadership in five areas crucial to organi- zational performance—providing direction, aligning followers, building relation- ships, developing personal qualities, and creating leader outcomes.38

1-3a Providing Direction Both leadership and management are concerned with providing direction for the organization, but there are differences. Management focuses on establishing detailed plans and schedules for achieving specific results, then allocating resources to accomplish the plan. Leadership calls for creating a compelling vision of the future, setting the context within which to view challenges and opportunities, and developing farsighted strategies for producing the changes needed to achieve the vision. Whereas management calls for keeping an eye on the bottom line and short-term results, leadership means keeping an eye on the horizon and the long- term future.

A vision is a picture of an ambitious, desirable future for the organization or team. It can be as lofty as Motorola’s aim to ‘‘become the premier company in the

of empowering rather than controlling subordinates. He transformed the Synod of Bishops into a decision-making group rather than a ceremonial one. He created a global Council of Cardinal Advisers made up of members who reflect diverse views. He is always willing to listen to advice from anyone and uses social media. He has washed the feet of prisoners, women, and Muslims, rather than performing the traditional ritual only on priests, as a way to show the value of every person and what each person can contribute. He makes personal telephone calls to unsuspecting people, such as the 14-year-old brother of a gas station attendant killed in an armed robbery and a Vatican critic who was ill in the hospital.

Francis is willing to listen, to collaborate, and to take advice, but he also isn’t afraid to move forward with his own ideas when he believes this serves the greater good and is in the best interest of the organization.36

NEW LEADER ACTION MEMO As a leader, you can respond to the reality of change and crisis, the need for empowerment, collaboration, and diversity, and the importance of a higher purpose. You can channel your ambition toward achieving larger organizational goals rather than feeding your own ego.

Management the attainment of organiza- tional goals in an effective and efficient manner through planning, organiz- ing, staffing, directing, and controlling organizational resources

NEW LEADER ACTION MEMO You can evaluate your own leadership potential by completing the quiz in Leader’s Self-Insight 1.2.

Vision a picture of an ambitious, desirable future for the organization or team

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world’’ or as down-to-earth as the Swedish company IKEA’s simple vision ‘‘to pro- vide affordable furniture for people with limited budgets.’’

1-3b Aligning Followers Management entails organizing a structure to accomplish the plan; staffing the structure with employees; and developing policies, procedures, and systems to direct employees and monitor implementation of the plan. Leadership is concerned instead with communicating the vision and developing a shared culture and set of core val- ues that can lead to the desired future state. Whereas the vision describes the desti- nation, the culture and values help define the journey toward it so that everyone is lined up in the same direction.

Leadership provides learning opportunities so people can expand their minds and abilities and assume responsibility for their own actions. Think about classes you have taken at your college or university. In some classes, the professor tells students exactly what to do and how to do it, and many students expect this kind of direction and control. Have you ever had a class where the instructor instead inspired and encouraged you and your classmates to find innovative ways to meet

EXHIBIT 1.3 Comparing Management and Leadership

Direction:

Alignment:

Relationships:

Personal

Qualities:

Outcomes:

Management Leadership

• Plan and budget • Minimize risk for sure results • Focus on bottom line

• Organize and staff • Direct and control • Create structure and order

• Invest in goods • Use position power • Focus people on specific goals

• Emotional distance • Expert mind • Talking • Conformity • Insight into organization

• Maintain stability; create a culture of efficiency

• Create vision and strategy • Maximize opportunity • Keep eye on horizon

• Create shared culture and values • Provide learning opportunities • Encourage networks and flexibility

• Invest in people • Use personal influence • Inspire with purpose and trust

• Emotional connections (Heart) • Open mind (Mindfulness) • Listening (Communication) • Nonconformity (Courage) • Insight into self (Character)

• Create change and a culture of agility and integrity

Sources: Based on John P. Kotter, A Force for Change: How Leadership Differs from Management (New York: The Free Press, 1990) and ideas in Kevin Cashman, ‘‘Lead with Energy,’’ Leadership Excellence (December 2010), p. 7; Henry Mintzberg, Managing (San Francisco: Berrett-Koehler, 2009); and Mike Maddock, ‘‘The One Talent That Makes Good Leaders Great,’’ Forbes (September 26, 2012), www.forbes.com/sites/mikemaddock/2012/09/26/the-one-talent-that-makes-good-leaders-great/ (accessed March 7, 2013).

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goals? The difference reflects a rational management versus a leadership approach.

1-3c Building Relationships In terms of relationships, management focuses on getting the most results out of people so that production goals are achieved and goods and services are provided to customers in a timely manner. Leadership, on the other hand, focuses on investing more in people so they are energized and inspired to accomplish goals.

Whereas the management relationship is based on position and formal author- ity, leadership is a relationship based on personal influence and trust. For example, in an authority relationship, both people accept that a manager can tell a subordi- nate to be at work at 7:30 A.M. or her pay will be docked. Leadership, on the other hand, relies on influence, which is less likely to use coercion. The role of leadership is to attract and energize people, motivating them through purpose and challenge rather than rewards or punishments.39 The differing source of power is one of the key distinctions between management and leadership. Take away a manager’s for- mal position, and will people choose to follow her? That is the mark of a leader.

1-3d Developing Personal Leadership Qualities Leadership is more than a set of skills; it relies on a number of subtle personal qual- ities that are hard to see but are very powerful. These include things like enthusiasm, integrity, courage, and humility. First of all, good leadership springs from a genuine caring for the work and a genuine concern for other people. The process of manage- ment generally encourages emotional distance, but leadership means being emotion- ally connected to others. Where there is leadership, people become part of a community and feel that they are contributing to something worthwhile. Whereas management means providing answers and solving problems, leadership requires the courage to admit mistakes and doubts, to listen, and to trust and learn from others.

Developing leadership qualities takes work. For leadership to happen, leaders may have to undergo a journey of self-discovery and personal understanding.40

Leadership experts agree that a top characteristic of effective leaders is that they know who they are and what they stand for. In addition, leaders have the courage to act on their beliefs.

True leaders tend to have open minds that welcome new ideas rather than closed minds that criticize new ideas. Leaders listen and discern what people want and need more than they talk to give advice and orders. Leaders are willing to be nonconform- ists, to disagree and say no when it serves the larger good, and to accept nonconform- ity from others rather than try to squeeze everyone into the same mindset.

1-3e Creating Outcomes The differences between management and leadership create two differing outcomes, as illustrated at the bottom of Exhibit 1.3. Management maintains a degree of stability, predictability, and order through a culture of efficiency. Leadership, on the other hand, creates change, often radical change, within a culture of agility and integrity that helps the organization thrive over the long haul by promoting openness and honesty, positive relationships, and long-term innovation. Leadership facilitates the courage needed to make difficult and unconventional decisions that may some- times hurt short-term results.

NEW LEADER ACTION MEMO As a leader, you can awaken your leadership qualities of enthusiasm, integrity, courage, and moral commitment. You can make emotional connections with followers to increase your leadership effectiveness.

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1-4 EVOLVING THEORIES OF LEADERSHIP To understand leadership as it is viewed and practiced today, it is important to rec- ognize that the concept of leadership has changed over time. Leadership typically reflects the larger society, and theories have evolved as norms, attitudes, and under- standings in the larger world have changed.41

LEADER’S SELF-INSIGHT 1.2

Your Leadership Potential

Instructions: Questions 1–6 below are about you right now. Questions 7–14 are about how you would like to be if you were the head of a major department at a corporation. Answer Mostly False or Mostly True to indicate whether the item describes you accurately or whether you would strive to perform each activity as a department head.

Now Mostly False

Mostly True

1. When I have a number of tasks or homework assignments to do, I set priorities and organize the work to meet the deadlines. ______ ______

2. When I am involved in a serious disagreement, I hang in there and talk it out until it is completely resolved. ______ ______

3. I would rather sit in front of my computer than spend a lot of time with people. ______ ______

4. I reach out to include other people in activities or when there are discussions. ______ ______

5. I know my long-term vision for career, family, and other activities. ______ ______

6. When solving problems, I prefer analyzing things myself to working through them with a group of people. ______ ______

Head of Major Department Mostly False

Mostly True

7. I would help subordinates clarify goals and how to reach them. ______ ______

8. I would give people a sense of long- term mission and higher purpose. ______ ______

9. I would make sure jobs get out on time. ______ ______

10. I would scout for new product or service opportunities. ______ ______

11. I would give credit to people who do their jobs well. ______ ______

12. I would promote unconventional beliefs and values. ______ ______

13. I would establish procedures to help the department operate smoothly. ______ ______

14. I would verbalize the higher values that I and the organization stand for. ______ ______

Scoring and Interpretation Count the number of Mostly True answers to even-numbered questions: ____. Count the number of Mostly True answers to odd-numbered questions: ____. Compare the two scores.

The even-numbered items represent behaviors and activities typical of leadership. Leaders are personally involved in shaping ideas, values, vision, and change. They often use an intuitive approach to develop fresh ideas and seek new directions for the department or organization. The odd-numbered items are considered more traditional man- agement activities. Managers respond to organizational problems in an impersonal way, make rational decisions, and work for stability and efficiency.

If you answered yes to more even-numbered than odd- numbered items, you may have potential leadership qual- ities. If you answered yes to more odd-numbered items, you may have management qualities. Management qualities are an important foundation for new leaders because the orga- nization first has to operate efficiently. Then leadership qual- ities can enhance performance. Both sets of qualities can be developed or improved with awareness and experience.

Sources: Based on John P. Kotter, Leading Change (Boston, MA: Harvard Business School Press, 1996), p. 26; Joseph C. Rost, Leadership for the Twenty-first Century (Westport, CT: Praeger, 1993), p. 149; and Brian Dumaine, ‘‘The New Non-Manager Managers,’’ Fortune (February 22, 1993), pp. 80–84.

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1-4a Historical Overview of Major Approaches The various leadership theories can be categorized into six basic approaches, each of which is briefly described in this section. Many of these ideas are still applicable to leadership studies today and are discussed in various chapters of this text.

Great Man Theories This is the granddaddy of leadership concepts. The earliest studies of leadership adopted the belief that leaders (who were always thought of as male) were born with certain heroic leadership traits and natural abilities of power and influence. In organizations, social movements, religions, governments, and the military, leadership was conceptualized as a single ‘‘Great Man’’ who put everything together and influenced others to follow along based on the strength of inherited traits, qualities, and abilities.

Trait Theories Studies of these larger-than-life leaders spurred research into the vari- ous traits that defined a leader. Beginning in the 1920s, researchers looked to see if leaders had particular traits or characteristics, such as intelligence or energy, that distinguished them from nonleaders and contributed to success. It was thought that if traits could be identified, leaders could be predicted, or perhaps even trained. Although research failed to produce a list of traits that would always guarantee leadership success, the interest in leadership characteristics has continued to the present day.

Behavior Theories The failure to identify a universal set of leadership traits led researchers in the early 1950s to begin looking at what a leader does rather than who he or she is. One line of research focused on what leaders actually do on the job, such as various management activities, roles, and responsibilities. These studies were soon expanded to try to determine how effective leaders differ in their behavior from ineffective ones. Researchers looked at how a leader behaved toward followers and how this correlated with leadership effectiveness or ineffectiveness. Chapter 2 discusses trait and behavior theories.

Contingency Theories Researchers next began to consider the contextual and situa- tional variables that influence what leadership behaviors will be effective. The idea behind contingency theories is that leaders can analyze their situations and tailor their behavior to improve leadership effectiveness. Major situational variables are the characteristics of followers, characteristics of the work environment and fol- lower tasks, and the external environment. Contingency theories, sometimes called situational theories, emphasize that leadership cannot be understood in a vacuum separate from various elements of the group or organizational situation. Chapter 3 covers contingency theories.

Influence Theories These theories examine influence processes between leaders and followers. One primary topic of study is charismatic leadership (Chapter 12), which refers to leadership influence based not on position or formal authority but, rather, on the qualities and charismatic personality of the leader. Related areas of study are leadership vision (Chapter 13) and organizational culture (Chapter 14). Leaders influence people to change by providing an inspiring vision of the future and shap- ing the culture and values needed to attain it. Several chapters of this text relate to the topic of influence because it is essential to understanding leadership.

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Relational Theories Since the late 1970s, many ideas of leadership have focused on the relational aspect, that is, how leaders and followers interact and influence one another. Rather than being seen as something a leader does to a follower, leadership is viewed as a relational process that meaningfully engages all participants and ena- bles each person to contribute to achieving the vision. Interpersonal relationships are seen as the most important facet of leadership effectiveness.42 Two significant relational theories are transformational leadership (Chapter 12) and servant leader- ship (Chapter 6).

Other important relational topics covered in various chapters of the text include the personal qualities that leaders need to build effective relationships, such as emo- tional intelligence, a leader’s mind, integrity and high moral standards, and personal courage. In addition, leaders build relationships through motivation and empower- ment, leadership communication, team leadership, and embracing diversity.

1-4b A Model of Leadership Evolution Exhibit 1.4 provides a framework for examining the evolution of leadership from the early Great Man theories to today’s relational theories. Each cell in the model summarizes an era of leadership thinking that was dominant in its time but may be less appropriate for today’s world.43

Leadership Era 1 This era may be conceptualized as pre-industrial and pre- bureaucratic. Most organizations were small and were run by a single individual who many times hired workers because they were friends or relatives, not necessarily

EXHIBIT 1.4 Leadership Evolution

Scope

Organization

Individual

Stable

Environment

Turbulent

Era 2

Rational Management

• Behavior theories • Contingency theories

Organization: • Vertical hierarchy, bureaucracy • Functional management

Era 4

Agile Leadership

• Relational theories • Level 5 leadership

Organization: • High-performance culture • Shared vision, alignment • Facilitate change and adaptation

Era 3

Team or Lateral Leadership

• Influence theories

Organization: • Horizontal organization • Cross-functional teams

Era 1

Great Person Leadership

• Great Man theories • Trait theories

Organization: • Pre-bureaucratic organization • Administrative principles

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because of their skills or qualifications. The size and simplicity of organizations and the stable nature of the environment made it easy for a single person to understand the big picture, coordinate and control all activities, and keep things on track. This is the era of Great Man leadership and the emphasis on personal traits of leaders. A leader was conceptualized as a single hero who saw the big picture and how every- thing fit into a whole.

Leadership Era 2 In Era 2, we see the emergence of hierarchy and bureaucracy. Although the world remains stable, organizations have begun to grow so large that they require rules and standard procedures to ensure that activities are performed efficiently and effectively. Hierarchies of authority provide a sensible mechanism for supervision and control of workers, and decisions once based on rules of thumb or tradition are replaced with precise procedures. This era sees the rise of the ‘‘rational manager’’ who directs and controls others using an impersonal approach. Employ- ees aren’t expected to think for themselves; they are expected to do as they’re told, follow rules and procedures, and accomplish specific tasks. The focus is on details rather than the big picture.

The rational manager was well-suited to a stable environment. The behavior and contingency theories worked here because leaders could analyze their situation, develop careful plans, and control what happened. But rational management is no longer sufficient for leadership in today’s world.

Leadership Era 3 This era represented a tremendous shock to managers in North America and Europe. Suddenly, the world was no longer stable, and the prized tech- niques of rational management were no longer successful. Beginning with the OPEC oil embargo of 1972 to 1973 and continuing with the severe global competition of the 1980s and early 1990s, many managers saw that environmental conditions had become chaotic. The Japanese began to dominate world commerce with their ideas of team leadership and superb quality. This became an era of great confusion for leaders. They tried team-based approaches, downsizing, reengineering, quality pro- grams, and empowerment as ways to improve performance and get more motiva- tion and commitment from employees.

This is the era of the team leader and the change leader. Influence was impor- tant because of the need to change organizational structures and cultures. This era sees the emergence of knowledge work, an emphasis on horizontal collaboration, and a shift to influence theories. Rather than conceiving of leadership as one person always being firmly ‘‘in charge,’’ leadership is often shared among team leaders and members, shifting to the person with the most knowledge or expertise in the matter at hand.44

Leadership Era 4 Enter the digital, mobile, social-media age. It seems that every- thing is changing, and changing fast. Era 4 represents agile leadership, which means giving up control in the traditional sense to ensure organizational flexibility and responsiveness to a changing world. Leaders influence others through relation- ships and networks and through shared vision and values rather than through hierarchical power and control. Agile leaders are constantly experimenting, learning, and changing, in both their personal and professional lives, and they encourage the development and growth of other people and the organization. Era 4 requires the full scope of leadership that goes far beyond rational management or even team leadership.

NEW LEADER ACTION MEMO As a leader, you can use the leadership skills that fit the correct era for your organization. You can use influence and relational aspects as appropriate for your organization.

Agile leadership giving up control in the traditional sense and encouraging the growth and development of others to ensure organizational flexibility and responsiveness

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Implications The flow from Great Man leadership to rational management to team leadership to agile leadership illustrates trends in the larger world. The implication is that leadership reflects the era or context of the organization and society. Most of today’s organizations and leaders are still struggling with the transition from a sta- ble to a chaotic environment and the new skills and qualities needed in this circum- stance. Thus, Era 3 issues of diversity, team leadership, empowerment, and horizontal relationships are increasingly relevant. In addition, many leaders are rap- idly shifting into Era 4 leadership by focusing on change management and facilitat- ing a vision and values to encourage high performance, agility, and continuous adaptation in a fast-shifting world. Agile leaders align themselves with new social technologies that can create networks of leaders throughout the organization. Era 3 and Era 4 leadership is what much of this book is about.

1-5 LEADERSHIP CAN BE LEARNED Many leaders are caught in the transition between the practices and principles that defined the industrial era and the new reality of the twenty-first century. Attempts to achieve collaboration, empowerment, and diversity in organizations may fail because the beliefs and thought processes of leaders as well as employees are stuck in an old paradigm that values control, stability, and homogeneity. It is difficult for many leaders to let go of methods and practices that have made them and their organizations successful in the past. Yet leaders can make the leap to a new para- digm by intentionally practicing and applying new paradigm principles.

1-5a Leader Fatal Flaws One of the most important aspects of shifting to the new paradigm of leadership is intentionally using soft, interpersonal skills to build a culture of performance, trust, and collaboration. A few clues about the importance of acquiring new leadership skills are brought to light by studies that look at what causes managers to ‘‘derail’’ in their careers. Derailment refers to a phenomenon in organizations in which a manager with an impressive track record reaches a certain level but goes off track and can’t advance because of a mismatch between job needs and the manager’s personal skills and qualities.45 Studies conducted in numerous organizations in different countries indicate that managers fail more frequently because they are deficient with soft, human skills rather than a lack of hard work or technical skills.46

Derailed managers are successful people who excelled in a functional area and were expected to go far, but they reached a plateau, were fired, or were forced to retire early.

Researchers at the Center for Creative Leadership in Greensboro, North Caro- lina, have been looking at what causes manager derailment for two decades.47 They conclude that there are five top flaws that cause managers to derail, as shown in Exhibit 1.5. Note that many of these flaws relate to the lack of human skills. Unsuc- cessful managers fail to meet business objectives because they spend too much time promoting themselves rather than working. They are overly ambitious and selfish and may not follow through on promises. They are often insensitive and critical, not trustworthy, do not learn from feedback and mistakes, can’t build and develop the right teams, and are unable to see the big picture when promoted into a general management position. Additional studies confirm that the biggest leader mistakes are people mistakes rather than technical ones.48

NEW LEADER ACTION MEMO Leader’s Self-Insight 1.3 gives you a chance to test your people skills and see if there are areas you need to work on.

Derailment a phenomenon in which a manager with an impressive track record reaches a certain level but goes off track and can’t advance because of a mismatch between job needs and personal skills and qualities

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LEADER’S SELF-INSIGHT 1.3

Are You on a Fast Track to Nowhere?

Instructions: Many people on the fast track toward positions of leadership find themselves suddenly derailed and don’t know why. Many times, a lack of people skills is to blame. To help you determine whether you need to work on your people skills, take the following quiz, answering each item as Mostly False or Mostly True. Think about a job or volunteer position you have now or have held in the past as you answer the following items.

People Skills Mostly False

Mostly True

1. Other people describe me as very good with people. ______ ______

2. I often smile and laugh with teammates or classmates. ______ ______

3. I often reach out to engage people, even strangers. ______ ______

4. I often express appreciation to other people. ______ ______

Dealing with Authority Mostly False

Mostly True

1. I quickly speak out in meetings when leaders ask for comments or ideas. ______ ______

2. If I see a leader making a decision that seems harmful, I speak up. ______ ______

3. I experience no tension when interacting with senior managers, either inside or outside the organization. ______ ______

4. I have an easy time asserting myself toward people in authority. ______ ______

Networking Mostly False

Mostly True

1. I spend part of each week networking with colleagues in other departments. ______ ______

2. I have joined multiple organizations for the purpose of making professional contacts. ______ ______

3. I often use lunches to meet and network with new people. ______ ______

4. I actively maintain contact with peers from previous organizations. ______ ______

Scoring and Interpretation Tally the number of ‘‘Mostly Trues’’ checked for each set of questions.

People Skills: ______ Dealing with Authority: ______ Networking: ______

If you scored 4 in an area, you’re right on track. Con- tinue to act in the same way.

If your score is 2 – 3, you can fine-tune your skills in that area. Review the questions where you said Mostly False and work to add those abilities to your leadership skill set.

A score of 0 – 1 indicates that you may end up danger- ously close to derailment. You should take the time to do an in-depth self-assessment and find ways to expand your inter- personal skills.

EXHIBIT 1.5 Five Fatal Flaws That Cause Derailment

5. Too Narrow Manage- ment Experience

Inability to work effectively or collaborate outside their current function; failing to see big picture when moved into general management position over several functions.

4. Difficulty Building and Leading a Team

Poor management of direct reports; inability to get work done through others; not identifying and hiring the right people.

3. Difficulty Changing

Not learning from feedback and mistakes to change old behaviors; defensive, unable to handle pressure, unable to change management style to meet new demands.

1. Performance Problems

Failing to meet business objectives because of too much time promoting themselves and playing politics, a failure to fulfill promises, or a lack of attention to priorities.

2. Problems with Relationships

Being insensitive, manipulative, critical, and not trustworthy in relationships with peers, direct reports, customers, and others.

Source: Based on Yi Zhang, Jean Brittain Leslie, and Kelly M. Hannum, ‘‘Trouble Ahead: Derailment Is Alive and Well,’’ Thunderbird International Business Review 55, no. 1 (January–February 2013), pp. 95–102.

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1-5b Leader Good Behaviors The best leaders, at all levels, are those who are genuinely interested in other people and find ways to bring out the best in them.49 Successful organizations, such as Google, pay attention to developing leaders in the soft skills needed to effectively lead technical people in a changing environment.

The skills on Google’s list of desirable behaviors can help leaders avoid the fatal flaws that derail careers. In addition, today’s successful leaders intentionally value change over stability, empowerment over control, collaboration over competition, diversity over uniformity, and integrity over self-interest, as discussed earlier. The industry of executive coaching emerged partly to help people through the transition to a new paradigm of leadership. Executive coaches encourage leaders to confront their own flaws and hang-ups that inhibit effective leadership, and then help them develop stronger emotional and interpersonal skills.

IN THE LEAD Google In 2015, Google was named the best company to work for by Fortune magazine for the sixth year in a row. Being a great place to work didn’t happen by accident. Google’s human resources department, called People Operations—or POPS for short—monitors employees’ happiness and well-being to an incredible degree, using data to track everything and learn where improvements are needed.

One thing it discovered is that good leaders make a tremendous difference. Google looked at what successful leaders—those who have lower attrition rates and get better performance from their teams—do that makes them different from less successful ones. Analyzing performance reviews and feedback surveys, Google executives used the findings to help make bad leaders better. Even in a company that depends on technical expertise, Google found that soft, human skills are essential. Technical expertise ranked dead last among eight desirable leader qualities, as shown in ‘‘Google’s Eight Rules for Good Leader Behavior.’’

Google discovered that employees want leaders who listen to them, build positive and productive relationships, and show an interest in their lives and careers. Google incorporates these eight desirable leader behaviors into leadership performance and evaluation systems as well as into feedback and training programs. When the company targeted unsuccessful leaders and coached them to develop soft skills and display these eight behaviors, the managerial ranks improved, with collective feedback scores going up every year since 2009.50

Google’s Eight Rules for Good Leader Behavior 1. Be a good coach. 2. Empower your team and don’t micromanage. 3. Express interest in team members’ success and personal well-being. 4. Don’t be a sissy. Be productive and results-oriented. 5. Be a good communicator and listen to your team. 6. Help your employees with career development. 7. Have a clear vision and strategy for the team. 8. Have key technical skills so you can help advise the team.51

NEW LEADER ACTION MEMO As a leader, you can cultivate your people skills to avoid executive derailment. You can treat others with kindness, interest, and respect and avoid overmanaging by selecting good followers and delegating effectively.

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1-6 MASTERING THE ART AND SCIENCE OF LEADERSHIP There’s an age-old question: Are leaders born or made? In one survey, 19 percent of top executives said leaders are born, 52 percent said they are made, and 29 percent said they are both born and made.52 It may be true that some inborn qualities and personality characteristics can provide a foundation for being a good leader, but most people can learn to be good leaders no matter their innate characteristics. Interestingly, in the above-mentioned survey, both those who thought leaders are born and those who thought they are made mention learning from experience as a key to becoming a good leader.

Leadership can be learned, but it is important to remember that leadership is both an art and a science. It is an art because many leadership skills and qualities cannot be learned from a textbook. Leadership takes practice and hands-on experience, as well as intense personal exploration and development. However, leadership is also a science because a growing body of knowledge and objective facts describes the leader- ship process and how to use leadership skills to attain organizational goals. This is where a textbook or a course on leadership can help you to be a better leader.

Knowing about leadership research helps people analyze situations from a vari- ety of perspectives and learn how to be more effective. By exploring leadership in both business and society, students gain an understanding of the importance of lead- ership to an organization’s success, as well as the difficulties and challenges involved in being a leader. Studying leadership can also lead to the discovery of abilities you never knew you had. When students in a leadership seminar at Wharton were asked to pick one leader to represent the class, one woman was surprised when she out- polled all other students. Her leadership was drawn out not in the practice of leader- ship in student government, volunteer activities, or athletics but in a classroom setting.53 Studying leadership gives you skills you can apply to the practice of lead- ership in your everyday life. Exhibit 1.6 gives some tips for how you can begin hon- ing your leadership skills.

Many people have never tried to be leaders because they have no understanding of what leaders actually do. The chapters in this book are designed to help you gain a firm knowledge of what leadership means and some of the skills and qualities that make a good leader. You can build competence in both the art and the science of leadership by completing the Self-Insight exercises throughout the book, by working on the activities and cases at the end of each chapter, and by applying the concepts you learn in class, in your relationships with others, in student groups, at work, and in voluntary organizations. Although this book and your instructors can guide you in your development, only you can apply the concepts and principles of leadership in your daily life. Learning to be a leader starts now, with you. Are you up to the challenge?

1-7 ORGANIZATION OF THIS BOOK The plan for this book reflects the shift to a new paradigm summarized in Exhibit 1.2 and the discussion of management versus leadership summarized in Exhibit 1.3. The framework in Exhibit 1.7 illustrates the organization of the book.

Part 1 introduces leadership, its importance, and the transition to a new leader- ship paradigm. Part 2 explores basic research perspectives that evolved during a more stable time when rational management approaches were effective. These basic

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perspectives, including the Great Man and trait theories, behavior theories, and con- tingency theories, are relevant to dealing with specific tasks and individuals and are based on a premise that leaders can predict and control various aspects of the envi- ronment to keep the organization running smoothly.

Parts 3, 4, and 5 focus on leadership perspectives that reflect the paradigm shift to the turbulent, unpredictable nature of the environment and the need for fresh leader approaches. Part 3 discusses the personal side of leadership and looks at some of the qualities and forces that are required to be effective in the new reality. These chapters emphasize the importance of self-awareness and self-understanding, the development of one’s own leadership mind and heart, moral leadership and courage, and appreciating the role of followership. Part 4 is about building effective relationships, including motivating and empowering others, communicating as a leader, leading teams, embracing the diversity of today’s world, and using power and influence.

Part 5 brings together all of these ideas to examine the leader as builder of a social architecture that can help an organization create a brighter future. These chapters deal with creating vision and strategic direction, aligning culture and values to achieve the vision, and leading change.

Taken together, the sections and chapters paint a complete portrait of the lead- ership experience as it has evolved to the present day and emphasize the new para- digm skills and qualities that are relevant from today and into the future. This book blends systematic research evidence with real-world experiences and impact.

EXHIBIT 1.6 Learning to Be a Leader

Emulate successful leaders

Find a mentor to provide feedback

Complete a leadership course to improve skills

Work to develop personal traits of

empathy and patience

Practice acts of leadership in your

everyday life

Source: Based on ‘‘Guidelines for the Apprentice Leader,’’ in Robert J. Allio, ‘‘Masterclass: Leaders and Leadership—Many Theories, But What Advice Is Reliable?’’ Strategy & Leadership 41, no. 1 (2013), pp. 4–14.

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LEADERSHIP ESSENTIALS

• This chapter introduced the concept of leadership and explained how individu- als can grow as leaders. Leadership is defined as an influence relationship among leaders and followers who intend real changes and outcomes that reflect their shared purposes. Thus leadership involves people in a relationship, influ- ence, change, a shared purpose, and taking personal responsibility to make things happen. Most of us are aware of famous leaders, but most leadership that changes the world starts small and may begin with personal frustrations about events that prompt people to initiate change and inspire others to follow them. Your leadership may be expressed in the classroom, at work, or in your neighborhood, religious community, or volunteer organizations.

• Concepts of leadership have evolved over time. Major research approaches include Great Man theories, trait theories, behavior theories, contingency theo- ries, influence theories, and relational theories. Elements of all these approaches are still applicable to the study of leadership.

• The biggest challenge facing leaders today is the changing world that wants a new paradigm of leadership. The new reality involves the shift from stability to change, from control to empowerment, from competition to collaboration, and from uni- formity to diversity. In addition, the concept of leader as hero is giving way to that

EXHIBIT 1.7 Framework for the Book

Part 3: The Personal Side of Leadership

Part 1: Introduction to Leadership

Chapter 1 What Does It Mean to Be a Leader?

Part 2: Research Perspectives on Leadership

Chapter 2 Traits, Behaviors, and Relationships Chapter 3 Contingency Approaches to Leadership

Part 5: The Leader as Social Architect

Chapter 13 Creating Vision and Strategic Direction Chapter 14 Shaping Culture and Values Chapter 15 Leading Change

Chapter 4 The Leader as an Individual Chapter 5 Leadership Mind and Emotion Chapter 6 Courage and Moral Leadership Chapter 7 Followership

Part 4: The Leader as Relationship Builder

Chapter 8 Motivation and Empowerment Chapter 9 Leadership Communication Chapter 10 Leading Teams Chapter 11 Developing Leadership Diversity Chapter 12 Leadership Power and Influence

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of the humble leader who develops others and shares credit for accomplishments. These dramatic changes suggest that a philosophy based on control and personal ambition will probably fail in the new era. The challenge for leaders is to evolve to a new mindset that relies on human skills, integrity, and teamwork.

• The ‘‘soft’’ skills of leadership complement the ‘‘hard’’ skills of management, and both are needed to effectively guide organizations. Although leadership is often equated with good management, leadership and management are differ- ent processes. Management strives to maintain stability and improve effi- ciency. Leadership, on the other hand, is about creating a vision for the future, designing social architecture that shapes culture and values, inspiring and motivating followers, developing personal qualities, and creating change within a culture of integrity. Leadership can be integrated with management to achieve the greatest possible outcomes. Organizations need to be both man- aged and led, particularly in today’s turbulent environment. Many managers already have the qualities needed to be effective leaders, but they may not have gone through the process needed to bring these qualities to life. Leader- ship is an intentional act. It is important to remember that most people are not born with natural leadership skills and qualities, but leadership can be learned and developed.

DISCUSSION QUESTIONS 1. Look through recent magazines and newspapers and identify one leader who seems to illus-

trate the ‘‘leader-as-hero’’ mindset and one who seems more typical of the humble Level 5 leader described in the text. Describe their differing characteristics. Which was easier to find?

2. What do you consider your own strengths and weaknesses for leadership? Discuss your answer with another student.

3. Of the elements in the leadership definition as illustrated in Exhibit 1.1, which is the easi- est for you? Which is hardest? Explain.

4. How might the paradigm shift from competition to collaboration make the job of a leader more difficult? Could it also make the leader’s job easier? Discuss.

5. Describe the best leader you have known. How did this leader acquire his or her capability?

6. Why do you think there are so few people who succeed at both management and leader- ship? Is it reasonable to believe someone can be good at both? Discuss.

7. Discuss some recent events and societal changes that might have contributed to a shift ‘‘from hero to humble.’’ Do you agree or disagree that humility is important for good leadership?

8. ‘‘Leadership is more concerned with people than is management.’’ Do you agree? Discuss.

9. What personal capacities should a person develop to be a good leader versus those devel- oped to be a good manager?

10. Why is leadership considered both an art and a science?

LEADERSHIP AT WORK

Leadership Right–Wrong Leader Wrong: Think of a specific situation in which you were working with someone who was in a leadership position over you and that person was doing something that was wrong

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for you. This person might have been a coach, teacher, team leader, employer, immediate boss, family member, or anyone who had a leadership position over you. ‘‘Wrong for you’’ means that person’s behavior reduced your effectiveness, made you or your coworkers less productive, and was demotivating to you or your colleagues. Write a few words below that describe what the leader was doing that was wrong for you.

Think of a second situation in which someone in a leadership position did something wrong for you. Write a few words below that describe what the leader was doing that was wrong for you.

Leader Right: Think of a specific situation in which you were working with someone who was in a leadership position over you and that person was doing something that was right for you. This person might have been a coach, teacher, team leader, employer, immedi- ate boss, family member, or anyone who had a leadership position over you. ‘‘Right for you’’ means that person’s behavior made you or your coworkers more productive, highly moti- vated you or others, and removed barriers to make you more successful. Write a few words below that describe what the leader was doing that was right for you.

Think of a second situation in which someone in a leadership position did something right for you. Write a few words below that describe what the leader was doing that was right for you.

The previous answers are data points that can help you understand the impact of leader behaviors. Analyze your four incidents—what are the underlying qualities of leadership that enable you to be an effective performer? Discuss your answers with another student. What leadership themes are present in the eight combined incidents? What do these responses tell you about the qualities you want and don’t want in your leaders?

In Class: An interesting way to use this exercise in class is to have students write (five words maximum) their leader ‘‘rights’’ on one board and their leader ‘‘wrongs’’ on another board. The instructor can ask small groups to identify underlying themes in the collective set of leader data points on the boards to specify what makes an effective leader. After students establish four or five key themes, they can be challenged to identify the one key theme that distinguishes leaders who are effective from those who are not.

Source: Based on Melvin R. McKnight, ‘‘Organizational Behavior as a Phenomenological, Free-Will Centered Science,’’ Working Paper, College of Business Administration, Northern Arizona University, 1997.

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LEADERSHIP DEVELOPMENT: CASES FOR ANALYSIS

Sales Engineering Division When DGL International, a manufacturer of refinery equipment, brought in John Terrill to man- age its Sales Engineering division, company executives informed him of the urgent situation. Sales Engineering, with 20 engineers, was the highest-paid, best-educated, and least-productive division in the company. The instructions to Terrill: Turn it around. Terrill called a meeting of the engineers. He showed great concern for their personal welfare and asked point blank: ‘‘What’s the problem? Why can’t we produce? Why does this division have such turnover?’’

Without hesitation, employees launched a hail of complaints. ‘‘I was hired as an engi- neer, not a pencil pusher.’’ ‘‘We spend over half of our time writing asinine reports in tripli- cate for top management, and no one reads the reports.’’ ‘‘We have to account for every penny, which doesn’t give us time to work with customers or new developments.’’

After a two-hour discussion, Terrill began to envision a future in which engineers were free to work with customers and join self-directed teams for product improvement. Terrill concluded he had to get top management off the engineers’ backs. He promised the engineers, ‘‘My job is to stay out of your way so you can do your work, and I’ll try to keep top manage- ment off your backs, too.’’ He called for the day’s reports and issued an order effective imme- diately that the originals be turned in daily to his office rather than mailed to headquarters. For three weeks, technical reports piled up on his desk. By month’s end, the stack was nearly three feet high. During that time no one called for the reports. When other managers entered his office and saw the stack, they usually asked, ‘‘What’s all this?’’ Terrill answered, ‘‘Techni- cal reports.’’ No one asked to read them.

Finally, at month’s end, a secretary from finance called and asked for the monthly travel and expense report. Terrill responded, ‘‘Meet me in the president’s office tomorrow morning.’’

The next morning the engineers cheered as Terrill walked through the department push- ing a cart loaded with the enormous stack of reports. They knew the showdown had come.

Terrill entered the president’s office and placed the stack of reports on his desk. The pres- ident and the other senior executives looked bewildered.

‘‘This,’’ Terrill announced, ‘‘is the reason for the lack of productivity in the Sales Engi- neering division. These are the reports your people require every month. The fact that they sat on my desk all month shows that no one reads this material. I suggest that the engineers’ time could be used in a more productive manner, and that one brief monthly report from my office will satisfy the needs of the other departments.’’

QUESTIONS

1. Does John Terrill’s leadership style fit the definition of leadership in Exhibit 1.1? Is it part of a leader’s job to manage upward? Explain.

2. With respect to Exhibit 1.4, in what leadership era is Terrill? In what era is headquarters? Explain.

3. What approach would you have taken in this situation? What do you think the response of the senior executives will be to Terrill’s action?

The Marshall Plan Marshall Gordon was recognized by associates and competitors as a man on a mission. One of four members of the design team for a large chair manufacturing corporation, Marshall’s obses- sion with the creation of comfortable seating dated to a childhood back injury and a lifetime of pain. He recognized, more than most in the industry, the importance of designing chairs that offered some relief to those suffering from debilitating back, hip, and neck pain as well as help- ing people of all ages to avoid problems with proper posture. In his early days with the com- pany the staff jokingly called his approach the Marshall Plan, after America’s 1947 initiative

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(named for Secretary of State George Marshall) to rebuild European economies after the war. Like someone fighting to save the world, Marshall Gordon brought passion and a creative in- tensity to design meetings as if each drawing, each design tweak would change civilization as we knew it.

Single and with no apparent family or friendship ties, Marshall was married to his work. He seemed to thrive on 70-hour work weeks, although as a salaried manager, he received no overtime pay. Even his ‘‘down time’’ at meals or on weekends was spent sketching, studying the latest in ergonomics, or reconnoitering each design adjustment by competitors.

‘‘When you visit a furniture store, you fully expect to see Marshall, skulking about in trench coat and hat, checking to see what the competition is offering,’’ says fellow team mem- ber John Craddock. ‘‘We all laugh about it. The guy brings—actually brings—chairs to meet- ings and tears them apart to show us some miniscule discovery.’’

This obsession with chairs, pain and gravity, and one-upping the competition has made Marshall a valuable employee and earned him a reputation in the industry for creative design. Not since Peter Opsvik’s Gravity Balans ergonomic chair of the 1970s has anyone made such an impact on the industry. The effect of Marshall’s work on company profits is undeniable. The fact that competitors are chomping at the bit to lure him away is also undeniable.

But the Marshall Plan comes at a price. Over the 15 years he has worked with the com- pany, five as leader of the design group, there has been a constant turnover within the design group as frustrated workers leave the company to ‘‘get away from Marshall.’’

‘‘Anything you could learn from this brilliant and dedicated man is destroyed by his cold, calculating attitude,’’ Craddock complains. ‘‘I came to this company excited about the chance to work with him. But any knowledge he possesses is carefully guarded. His design ideas are perfect, while ours are picked apart. We all swear he has listening devices scattered around everywhere, because if the rest of the team huddles in some corner of the world to discuss a design idea, voila! He walks into the next meeting with our idea. Once when he was a few minutes late to a meeting, we thought we had beaten him and quickly presented our idea. Just then, he walks in, and announces, ‘Ideas must be in the air. I have something very similar,’ and throws his completed design on screen. Guess who won.’’

Marshall presents a continuing challenge to company management, having both incredible positive and negative influence on the culture. While his contributions to design and profits far exceed those of other employees, his negative effect on the culture and his team’s creativity and morale results in the loss of talented people and a climate of suspicion and discontent. His threat, ‘‘I can take my talents elsewhere,’’ hangs over top management like a sledge hammer.

Now, Craddock and Leslie Warren, other talented members of the design team, have approached management with their own ultimatum: Do something about Marshall or we resign.

QUESTIONS

1. If you were a top leader, how would you respond to the ultimatum? Be specific. Explain why.

2. What is Marshall missing with respect to his leadership abilities? How do you explain his poor leadership behavior?

3. If you were Marshall’s manager, how might you increase Marshall’s awareness of the negative impact he is having on his team? How would you guide him toward better team leadership, sharing his knowledge with others, and mentoring his team members?

REFERENCES 1. Nancy F. Koehn, ‘‘Lincoln’s School of Management,’’ The New York

Times (January 26, 2013); Catherine L. Moreton, ‘‘10 Qualities That Make Abraham Lincoln a Great Leader,’’ HR and Employment Law White Papers, Business and Legal Resources (June 25, 2008), https://hr.blr.com/whitepapers/Staffing-Training/Leadership/10-Qualities- that-Made-Abraham-Lincoln-a-Great-Lea (accessed March 4, 2013);

Hitendra Wadhwa, ‘‘Lessons in Leadership: How Lincoln Became America’s Greatest President,’’ Inc.com (February 12, 2012), http://www. inc.com/hitendra-wadhwa/lessons-in-leadership-how-abraham-lincoln- became-americas-greatest-president.html (accessed March 4, 2013); and Richard Brookhiser, ‘‘What Would Lincoln Do’’ Modern-Day Leaders Could Learn a Lot from Our 16th President (February 14, 2014),

30 PART 1 INTRODUCTION TO LEADERSHIP

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http://online.wsj.com/news/articles/SB10001424052702303 704304579382882084406374?mod=WSJ_hppMIDDLENexttoWhats- NewsSecond (accessed October 5, 2015). The Howard Schultz quote is from Koehn.

2. David Rothkopf, ‘‘Somebody Take Control. (Anybody. Really. Please.): Where Are All the Leaders?’’ The Washington Post (March 29, 2009), p. B1.

3. Thanks to Doug Moran, ‘‘Great Leadership,’’ Leadership Excellence (September 2011), p. 18, for this analogy.

4. John F. Burns and Stephen Castle, ‘‘BBC’s Leaders Faulted as Lax in Handling Sex Abuse Crisis,’’ The New York Times (December 19, 2012), http://www.nytimes.com/2012/12/20/world/europe/pollard-report-bbc- jimmy-savile-sexual-abuse-inquiry.html?pagewanted=all&_r=0 (accessed March 4, 2013).

5. ‘‘Sen. Grassley Probes Televangelists’ Finances,’’ USA TODAY (November 7, 2007), http://usatoday30.usatoday.com/news/washington/2007-11-07- televangelist-probe_N.htm (accessed March 4, 2013).

6. See various surveys and studies reported in Paul Harris, ‘‘Leadership Role Models Earn Trust and Profits,’’ TþD 64, no. 3 (2010), pp. 47–50.

7. Gary Cohen, ‘‘Defining Leadership,’’ Leadership Excellence (August 2009), pp. 16–17; Warren Bennis and Burt Nanus, Leaders: The Strat- egies for Taking Charge (New York: Harper & Row, 1985), p. 4; and James MacGregor Burns, Leadership (New York: Harper & Row, 1978), p. 2.

8. J. Meindl, S. Ehrlich, and J. Dukerich, ‘‘The Romance of Leadership,’’ Administrative Science Quarterly 30 (1985), pp. 78–102; and Mitchell C. Bligh, Jeffrey C. Kohles, and Rajnandini Pillai, ‘‘Romancing Leader- ship: Past, Present, Future,’’ The Leadership Quarterly 22 (2011), pp. 1058–1077.

9. Rakesh Khurana, ‘‘The Curse of the Superstar CEO,’’ Harvard Busi- ness Review (September 2002), pp. 60–66.

10. Khurana, ‘‘The Curse of the Superstar CEO’’; Mitch McCrimmon, ‘‘The Ideal Leader,’’ Ivey Business Journal (January–February 2011); Joseph A. Raelin, ‘‘The Myth of Charismatic Leaders,’’ Training and Development (March 2003), p. 46; and Betsy Morris, ‘‘The New Rules,’’ Fortune (July 24, 2006), pp. 70–87.

11. Joseph C. Rost, Leadership for the Twenty-First Century (Westport, CT: Praeger, 1993), p. 102; and Joseph C. Rost and Richard A. Barker, ‘‘Leadership Education in Colleges: Toward a 21st Century Para- digm,’’ The Journal of Leadership Studies 7, no. 1 (2000), pp. 3–12.

12. Peter B. Smith and Mark F. Peterson, Leadership, Organizations, and Culture: An Event Management Model (London: Sage Publications, 1988), p. 14.

13. Robert E. Kelley, ‘‘In Praise of Followers,’’ Harvard Business Review (November–December 1988), pp. 142–148.

14. Bill George, ‘‘Truly Authentic Leadership’’ (Special Report: America’s Best Leaders), U.S. News & World Report (October 30, 2006), pp. 52–53; Victoria Strauss, ‘‘It’s Time for Teach for America to Fold: Former TFAer,’’ (The Answer Sheet blog), The Washington Post (February 28, 2013), http://www.washingtonpost.com/blogs/answer-sheet/wp/2013/02/28/its- time-for-teach-for-america-to-fold-former-tfaer/ (accessed March 5, 2013); and ‘‘Is Teach for America Working?’’ (Room for Debate Opinion Page), The New York Times (August 30, 2012), http://www.nytimes. com/roomfordebate/2012/08/30/is-teach-for-america-working/ (accessed March 5, 2013).

15. ‘‘Barbara Van Dahlen’’ segment in ‘‘The World’s 100 Most Influential People 2012,’’ Time http://www.time.com/time/specials/packages/article/ 0,28804,2111975_2111976,00.html (accessed March 4, 2013); and Barbara Van Dahlen, ‘‘Recognizing Options for Healing This Veterans Day,’’ Huffington Post (November 13, 2012), http://www.huffingtonpost. com/barbara-van-dahlen-phd/veterans-health-care_b_2092411.html (accessed March 4, 2013).

16. Scott R. Schmedel, ‘‘Making a Difference,’’ The Wall Street Journal (August 21, 2006), pp. R5, R12; and ‘‘More Than Wheels: About,’’ http://www.morethanwheels.org/about (accessed March 5, 2012).

17. These changes and challenges are based in part on Thomas W. Mal- night and Tracey S. Keys, ‘‘The Great Power Shift: 10 Trends Business Leaders Need to Watch in 2013,’’ as reported in ‘‘The World in 2013: Global Trends for 2013; A Top Ten for Business Leaders,’’ Cassandra blog, The Economist (November 26, 2012), http://www.economist. com/blogs/theworldin2013/2012/11/global-trends-2013 (accessed March 5, 2013). The complete Global Trends 2013 report is available for purchase at http://www.globaltrends.com/reports/gt-2013

18. Center for Creative Leadership survey reported in Andre Martin, ‘‘What Is Effective Leadership Today? A New Study Finds Collabora- tion Prized over Heroics,’’ Chief Executive (July–August 2006), p. 24.

19. This discussion is based on Dominic Barton, Andrew Grant, and Michelle Horn, ‘‘Leading in the 21st Century,’’ McKinsey Quarterly, no. 3 (2012), pp. 30–47; Olivia Parr Rud, ‘‘Book Highlight—Adaptability: A Key to Business Intelligence Success,’’ Global Business and Organiza- tional Excellence (January–February 2010), pp. 76–85; Ken Shelton, ‘‘Reinventing Leadership,’’ Leadership Excellence (July 2012), p. 9; Fahri Karakas, ‘‘The Twenty-First Century Leader: Social Artist, Spiritual Visionary, and Cultural Innovator,’’ Global Business and Organizational Excellence (March/April 2007), pp. 44–50; Daniel C. Kielson, ‘‘Leader- ship: Creating a New Reality,’’ The Journal of Leadership Studies 3, no. 4 (1996), pp. 104–116; and Mark A. Abramson, ‘‘Leadership for the Future: New Behaviors, New Roles, and New Attitudes,’’ The Public Manager (Spring 1997).

20. Norihiko Shirouzu, Phred Dvorak, Yuka Hayashi, and Andrew Morse, ‘‘Bid to ‘Protect Assets’ Slowed Reactor Fight,’’ The Wall Street Journal (March 19, 2011), http://online.wsj.com/article/SB1000142405274870 4608504576207912642629904.html (accessed August 6, 20120); and Peter Valdes-Dapena, ‘‘Japan Earthquake Impact Hits U.S. Auto Plants,’’ CNNMoney (March 30, 2011), http://money.cnn.com/2011/ 03/28/autos/japan_earthquake_autos_outlook/index.htm# (accessed June 13, 2012).

21. William Boston and Sarah Sloat, ‘‘Volkswagen Emissions Scandal Relates to 11 Million Cars,’’ The Wall Street Journal (September 22, 2015), http://www.wsj.com/articles/volkswagen-emissions-scandal-relates- to-11-million-cars-1442916906 (accessed October 5, 2015), and Jack Ewing, ‘‘Diesel Scandal at VW Spreads to Core Market,’’ The New York Times (September 23, 2015), p. A1.

22. Vanessa Fuhrmans, and Dana Cimilluca, ‘‘Business Braces for Europe’s Worst—Multinationals Scramble to Protect Cash, Revise Contracts, Tighten Payment Terms,’’ The Wall Street Journal (June 1, 2012), p. B1.

23. Quoted in Barton et al., ‘‘Leading in the 21st Century.’’ 24. Quoted in Barton et al., ‘‘Leading in the 21st Century.’’ 25. Charles Handy, The Age of Paradox (Boston: Harvard Business School

Press, 1994), pp. 146–147; and Geoff Colvin, ‘‘Leader Machines,’’ For- tune (October 1, 2007), pp. 98–106.

26. J. P. Donlon, ‘‘What, Put Your Customers Second? Are You Kidding?’’ (CEO Chronicles), Chief Executive (November–December 2010), pp. 14–16; ‘‘HCL Technologies CEO, Vineet Nayar, Gets ‘Leader in the Digital Age’ Award at CeBIT 2011,’’ Entertainment Close-Up (March 11, 2011); and Stephen Denning, ‘‘Masterclass: The Reinvention of Management,’’ Strategy & Leadership 39, no. 2 (2011), pp. 9–17.

27. Vineet Nayar, Employees First, Customers Second: Turning Conven- tional Management Upside Down (Boston: Harvard Business Review Press, 2010).

28. Herminia Ibarra and Morten T. Hansen, ‘‘Are You a Collaborative Leader?’’ Harvard Business Review (July–August 2011), pp. 69–74.

29. Ibarra and Hansen, ‘‘Are You a Collaborative Leader?’’; and Sally Hel- gesen, ‘‘Leading in 24/7: What Is Required?’’ Leader to Leader (Summer 2012), pp. 38–43.

30. Barton et al., ‘‘Leading in the 21st Century.’’ 31. See James Collins, Good to Great: Why Some Companies Make the

Leap . . . and Others Don’t (New York: HarperCollins, 2001); Charles A. O’Reilly III and Jeffrey Pfeffer, Hidden Value: How Great Compa- nies Achieve Extraordinary Results with Ordinary People (Boston:

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Harvard Business School Press, 2000); Rakesh Khurana, Searching for a Corporate Savior: The Irrational Quest for Charismatic CEOs (Princeton, NJ: Princeton University Press, 2002); Joseph Badaracco, Leading Quietly (Boston: Harvard Business School Press, 2002); Jason Jennings, Think Big, Act Small: How America’s Best Performing Com- panies Keep the Startup Spirit Alive (New York: Portfolio/Penguin, 2005); Ryan Underwood, ‘‘The CEO Next Door,’’ Fast Company (September 2005), pp. 64–66; and Linda Tischler, ‘‘The CEO’s New Clothes,’’ Fast Company (September 2005), pp. 27–28.

32. David Brooks, ‘‘The Humble Hound,’’ The New York Times (April 10, 2010), p. A27; Charalambos A. Vlachoutsicos, ‘‘How to Cultivate Engaged Employees,’’ Harvard Business Review (September 2011), pp. 123–126; and Rob Nielsen, Jennifer A. Marrone, and Holly S. Slay, ‘‘A New Look at Humility: Exploring the Humility Concept and Its Role in Socialized Charismatic Leadership,’’ Journal of Leadership and Organizational Science 17, no. 1 (2010), pp. 33–43.

33. Amy Y. Ou, Anne S. Tsui, Angelo J. Kinicki, David A. Waldman, Zhixing Xiao, and Lynda Jiwen Song, ‘‘Humble Chief Executive Offi- cers’ Connections to Top Management Team Integration and Middle Managers’ Responses,’’ Administrative Science Quarterly 59, no. 1 (March 2014): 34–72; and Laurie Merrill, ‘‘Study Finds Humble Bosses Are Best,’’ USA Today (July 30, 2014), http://www.usatoday. com/story/money/business/2014/07/30/asu-study-humble-bosses-b- est/13352105/ (accessed October 5, 2015).

34. Jim Collins, ‘‘Level 5 Leadership: The Triumph of Humility and Fierce Resolve,’’ Harvard Business Review (January 2001), pp. 67–76; Col- lins, ‘‘Good to Great,’’ Fast Company (October 2001), pp. 90–104; Edward Prewitt, ‘‘The Utility of Humility,’’ CIO (December 1, 2002), pp. 104–110; A. J. Vogl, ‘‘Onward and Upward’’ (an interview with Jim Collins), Across the Board (September–October 2001), pp. 29–34; and Stefan Stern, ‘‘A New Leadership Blueprint,’’ Management Today (October 1, 2010), http://www.managementtoday.co.uk/features/ 1032244/a-new-blueprint-leaders/ (accessed March 13, 2013).

35. As described in Stefan Stern, ‘‘A New Leadership Blueprint,’’ Manage- ment Today (October 1, 2010), p. 38.

36. Noah Rayman, ‘‘5 Leadership Lessons You Can Learn from Pope Francis,’’ Time (March 10, 2015), http://time.com/3737887/pope-francis-leadership- lessons/ (accessed October 6, 2015); William Vanderbloemen, ‘‘5 Leader- ship Lessons from Pope Francis,’’ Fast Company (September 25, 2015), http://www.fastcompany.com/3051514/know-it-all/5-lessons-every-leader- can-learn-from-pope-francis (accessed October 6, 2015); Minda Zetlin, ‘‘Why Pope Francis Is So Effective: 8 Lessons for Every Leader,’’ Inc. (August 1, 2014), http://www.inc.com/minda-zetlin/why-pope-francis-is- so-effective-8-lessons-for-every-leader.html (accessed October 6, 2015); Ben Brumfield, ‘‘Pope Francis Surprised by Warmth of Americans and Devoutness of the Faithful,’’ CNN (September 28, 2015), http://www.cnn. com/2015/09/28/us/pope-trip-wrap-vatican/ (accessed October 6, 2015); and Susan Cramm, ‘‘Leadership Gone Viral,’’ Strategyþ Business (January 17, 2014), http://www.strategy-business.com/blog/Leadership-Gone- Viral?gko=96623 (accessed October 6, 2015).

37. Gary Yukl and Richard Lepsinger, ‘‘Why Integrating the Leading and Managing Roles Is Essential for Organizational Effectiveness,’’ Organi- zational Dynamics 34, no. 4 (2005), pp. 361–375; Henry Mintzberg, Managing (San Francisco: Berrett-Koehler, 2009); Andrew Saunders, ‘‘Rebuilding Management’s Good Name,’’ Management Today (May 2011), pp. 44–46; John Kotter, ‘‘Change Leadership: How Can You Accelerate Results?’’ Leadership Excellence (January 2013), pp. 6–7; and Alan Murray, ‘‘What Is the Difference Between Management and Leadership?’’ The Wall Street Journal (2009), http://guides.wsj.com/ management/developing-a-leadership-style/what-is-the-difference-between- management-and-leadership/ (accessed June 28, 2009).

38. This section is based on John P. Kotter, A Force for Change: How Leadership Differs from Management (New York: The Free Press, 1990), pp. 3–18; John P. Kotter, ‘‘What Leaders Really Do,’’ Harvard Business Review (December 2001), pp. 85–96; and ideas in Kevin

Cashman, ‘‘Lead with Energy: Apply the Resilience Principle,’’ Leader- ship Excellence (December 2010), p. 7; Henry Mintzberg, Managing (San Francisco: Berrett-Koehler, 2009); and Mike Maddock, ‘‘The One Talent That Makes Good Leaders Great,’’ Forbes (September 26, 2012), http://www.forbes.com/sites/mikemaddock/2012/09/26/the-one- talent-that-makes-good-leaders-great/ (accessed March 7, 2013).

39. Warren Bennis, Why Leaders Can’t Lead (San Francisco: Jossey Bass, 1989).

40. Abraham Zaleznik, ‘‘Managers and Leaders: Are They Different?’’ Harvard Business Review (March–April 1992), pp. 126–135; David Rooke and William R. Torbert, ‘‘7 Transformations of Leadership,’’ Harvard Business Review (April 2005), pp. 67–76; and Rooke and Torbert, Action Inquiry: The Secret of Timely and Transforming Lead- ership (San Francisco: Berrett-Koehler, 2004).

41. Jim Boneau and Gregg Thompson, ‘‘Leadership 4.0: It’s a Brave New Approach,’’ Leadership Excellence (January 2013), p. 6.

42. Based on Susan R. Komives, Nance Lucas, and Timothy R. McMahon, Exploring Leadership: For College Students Who Want to Make a Dif- ference (San Francisco: Jossey-Bass Publishers, 1998); and Shann R. Ferch and Matthew M. Mitchell, ‘‘Intentional Forgiveness in Rela- tional Leadership: A Technique for Enhancing Effective Leadership,’’ The Journal of Leadership Studies 7, no. 4 (2001), pp. 70–83.

43. This discussion draws ideas from Boneau and Thompson, ‘‘Leadership 4.0: It’s a Brave New Approach.’’

44. Craig L. Pearce, ‘‘The Future of Leadership: Combining Vertical and Shared Leadership to Transform Knowledge Work,’’ Academy of Man- agement Executive 18, no. 1 (2004), pp. 47–57.

45. Yi Zhang, Jean Brittain Leslie, and Kelly M. Hannum, ‘‘Trouble Ahead: Derailment Is Alive and Well,’’ Thunderbird International Business Review 55, no. 1 (January–February 2013), pp. 95–102.

46. See studies reported in Joyce Hogan, Robert Hogan, and Robert B. Kaiser, ‘‘Management Derailment: Personality Assessment and Mitiga- tion,’’ Hogan Assessment Systems, http://www.hoganassessments.com/ _hoganweb/documents/Management_Derailment.pdf.

47. Yi Zhang et al., ‘‘Trouble Ahead: Derailment Is Alive and Well’’; and Morgan W. McCall Jr. and Michael M. Lombardo, ‘‘Off the Track: Why and How Successful Executives Get Derailed’’ (Technical Report No. 21), (Greensboro, NC: Center for Creative Leadership, January 1983).

48. Hogan et al., ‘‘Management Derailment: Personality Assessment and Mitigation’’; George Kohlrieser, ‘‘People Mistakes: These 10 Are Very Dangerous,’’ Leadership Excellence (October 2012), p. 16; Clinton O. Longenecker and Laurence S. Fink, ‘‘Fixing Management’s Fatal Flaws,’’ Industrial Management (July–August 2012), pp. 12–17; E. Van Velsor and J. B. Leslie, ‘‘Why Executives Derail: Perspectives Across Time and Cultures,’’ Academy of Management Executive 9, no. 4 (1995), pp. 62–72; and Morgan W. McCall Jr. and Michael M. Lombardo, ‘‘Off the Track: Why and How Successful Executives Get Derailed’’ (Technical Report No. 21), (Greensboro, NC: Center for Creative Leadership, January 1983).

49. Ram Charan and Geoffrey Colvin, ‘‘Why CEOs Fail,’’ Fortune (June 21, 1999), pp. 68–78.

50. This example is based on Farhad Manjoo, ‘‘The Happiness Machine: How Google Became Such a Great Place to Work,’’ Slate Magazine, http://www.slate.com/articles/technology/technology/2013/01/google_ people_operations_the_secrets_of_the_world_s_most_scientific_human. html (accessed March 8, 2013); and David A. Garvin, ‘‘How Google Sold Its Engineers on Management,’’ Harvard Business Review (December 2013), pp. 74–82.

51. List of Google’s Rules from Adam Bryant, ‘‘Google’s Quest to Build a Better Boss,’’ The New York Times (March 12, 2011).

52. Survey by the Center for Creative Leadership, reported in Phaedra Broth- erton, ‘‘Leadership: Nature or Nurture?’’ TþD (February 2013), p. 25.

53. Russell Palmer, ‘‘Can Leadership Be Learned?’’ Business Today (Fall 1989), pp. 100–102.

32 PART 1 INTRODUCTION TO LEADERSHIP

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